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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 (2015-2020)

38

Approved Projects

RM47.8 bil

Total Approved Investments

from 2015-2020

3,282

High Value 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

Over the past few years we went through a thorough evaluation process to find the best possible Headquarters location. Our focus was predominantly on customer proximity, talent pool, supply chain and especially government support. Since we set foot in Malaysia, we have been enjoying tremendous support from the Malaysian Government and hence couldn't have chosen a better location. The better acquisition process for our 50 acres of land was accomplished in merely less than four weeks. In today's world, where time and agility has become critical, in our 30-year experience, such business support is simply unheard of.

- Uli Behringer, CEO
Music Tribe

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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