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Principal Hub

Meet Asia’s Global & Regional Hubs

Asia’s emergence as a global economic powerhouse has shifted the focus of major MNCs to this region.

Many of these MNCs have chosen Malaysia as their base to centralise supply chain functions such as procurement and distribution to shared services functions through the setting up of establishments such as Operational Headquarters (OHQ), International Procurement Centres (IPC), Regional Distribution Centres (RDC), Global Operation Hubs (GOH) and Treasury Management Centres (TMC).

Since 2006, MIDA has approved a total of 311 global/ regional establishment projects involving total investment of RM423 billion and creation of 31,060 job opportunities in Malaysia.

Variety of Hubs

Headquarter

Headquarter

Engineering

Engineering

Supply-Chain

Supply Chain

R&D

R&D

distribution

Distribution

Procurement

Procurement

Treasury

Treasury

Center-Of-Excellence

Centre of Excellence

Anchoring Growth in Malaysia via Principal Hubs

In 2015, the Government introduced the concept of the Principal Hub (PH) whereby Malaysia is made the centralised operating base for MNCs, serving as a nerve centre to conduct their regional and global businesses. The PH scheme emphasises on strategic business activities such as risk management and decision making. From just supporting their regional operations, companies today have further evolved by scaling up the value chain and exploiting higher value business activities to undertake higher-end services such as strategic business planning, treasury and finance management and R&D from Malaysia.

Approved Investments for Principal Hubs (2021)

5

Approved Projects

RM19.5 bil

Committed Business Spending

3,554

Job Opportunities

For more statistics, please click here.

Moving Forward: Paradigm Shift in Creating Tech Hubs

Today, many MNCs operating in Malaysia have significantly ventured into higher value-added services with a majority of these companies adopting real-time interconnected technologies to manage their regional and global supply chains. It is envisioned that more companies will adopt IoT technologies such as Big Data Analytics, Cloud Computing and Artificial Intelligence to keep up with the ever-changing global business landscape.

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 investmalaysia.mida.gov.my
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