The Inter IKEA Group secures the continuous improvement, development, expansion and long life of the IKEA Concept. IKEA home furnishing products are not new to Malaysian consumer, as IKEA has been operating its franchised retail stores since 1995. Due to retail expansion in ASEAN, IKEA was looking for suitable location to establish its Regional Distribution and Supply Chain Centre which carry approximately 10,000 article ranges to better serve IKEA Retail stores in ASEAN and rest of Asian countries.
A detail study was undertaken to find out most suitable country with good transport network, shipping lines, railway, road connectivity (infrastructures facilities) and ease of doing business with sound economic policies and political stability. The study showed that Malaysia is the centre of gravity with good connectivity to ASEAN, rest of Asia and also ease of doing business.
IKEA evaluated several locations within Malaysia to place its Regional Distribution and Supply Chain Centre and finally located a suitable plot of land in the island of Pulau Indah. IKEA secured 63.25 acres of land to place its 100,000 m2 (footprint) warehouse with automated facilities. This facility is expected to have throughputs of around 2 million cubic meters of merchandise per year or approximately 70,000 twenty foot equivalent units.
As first step to enter into Malaysia, IKEA approached MIDA to assist in securing relevant permits and approvals from various government agencies. MIDA team was very efficient, effective and business friendly to help IKEA in securing necessary approvals from relevant authorities less than two months.
MIDA also supported IKEA in obtaining the Economy Planning Unit approval to buy land in Malaysia and connecting and facilitating with Royal Malaysian Customs for IKEA’s imports and exports of goods in and out of Malaysia together with obtaining private bonded warehouse.