Principal Hub - MIDA | Malaysian Investment Development Authority
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Principal Hub

Meet Asia’s Global & Regional Hubs

Hub structures of today are gradually morphing towards a more integrated model where the need for transparency is evident in order for companies to have greater visibility over their entire supply chain networks so as to operate with increased efficiency.

Many companies that have established themselves in Malaysia have since scaled the value chain, moving from initially only supporting their regional operations to developing higher value business activities such as strategic services, from research, design and development, supply chain management and business planning right to the consolidation of their shared services functions.

This is in line with the Twelfth Malaysia Plan (12MP) which aims to realise the nation’s aspiration to become a knowledge-based economy by enticing more companies to provide higher value-added services and converge here, making Malaysia as their Global Services Hub by 2025.

Variety of Hubs






Supply Chain










Centre of Excellence

Anchoring Growth in Malaysia via Principal Hubs

Since its inception in May 2015, the Principal Hub (PH) incentive has led to the approval of 46 PH projects by MIDA. These companies have pledged a total business expenditure of RM68.8 billion, generating 10,866 jobs across sectors including electrical and electronics (E&E), transportation, chemicals, and food technology.


The Principal Hub 3.0 Scheme expired on 31 December 2022 and is currently being reviewed by MOF. The revised scheme will be announced soon under Budget 2024.

Approved Investments for Principal Hubs (2022)


Approved Projects

RM1.8 bil

Committed Business Spending


Job Opportunities

For more statistics, please click here.

Evolving Strategies of Malaysian MNCs and Distribution Hubs

Evidently seen in the last couple of years, is the divergence of hub structures which are being more and more infused by digital technology. New forces of change are bringing about new leaner hub structure models focused on the most strategic and innovative business functions connecting global professionals. From solely focusing on process expertise, hubs will now emphasise digital expertise and interactive solutions.

Our Investors' Highlights

Malaysia’s geographic location is the centre of gravity for IKEA’s retail growth in the SEA region, IN and AU. With the advantage of 2 deep sea ports and supportive government authorities, Malaysia created pre-conditions for the success of our wholesale business, including the Regional Distribution Centre operations. We arrived at the decision of Malaysia after a year of evaluation, which started in 2017. Our evaluation also showed that existing and planned infrastructure development with availability of talents are further success factors for our Wholesale establishment in Malaysia. Regional Distribution Centre Port Klang is 92,000m2 in size equipped with the latest fully automated high bay storage, electric mono-loop system and other high-tech solutions. The building is sustainably designed to meet LEED Gold standards with initiatives like full LED light illumination, rainwater harvesting and EV chargers.

- Lee Bee Chin, CFO/Managing Director
IKEA Supply (Malaysia) Sdn Bhd

Get Started

MIDA provides comprehensive support to your business as you consider the competitive and comparative advantages Malaysia has to offer for your investment. Explore our dedicated resources, wide range of facilities or consultation services to assist you in expanding your operations here.
Company can submit application and track the application status online via MIDA InvestMalaysia portal at