Selangor aims to become hub for trade and logistics in Southeast Asia - MIDA | Malaysian Investment Development Authority
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Selangor aims to become hub for trade and logistics in Southeast Asia

Selangor aims to become hub for trade and logistics in Southeast Asia

06 Oct 2023

Selangor has set an ambitious goal to establish itself as the hub for trade and logistics in Southeast Asia, driven by its strong economy, diverse workforce, and high per capita purchasing power.

Selangor Menteri Besar Datuk Seri Amirudin Shari said that Selangor’s robust economy, diverse workforce and high per capita purchasing power make it an ideal choice for global businesses seeking growth opportunities in the region.

“Selangor now contributes more than one quarter of Malaysia’s entire gross domestic product at 25.5% in 2022 (which reinforces its position as a key driver of the nation’s economic growth). Due to this increase, the Malaysian Investment Development Authority announced that more than 50,000 jobs, including more than 10,000 high-income employment opportunities, has been created in the manufacturing (sector) alone,” he said i during the partnership announcement of the development of Daiso Global Distribution Centre (GDC) in Malaysia valued at RM1 billion yesterday.

Daiso Malaysia Group Sdn Bhd has partnered with the Kajima-Suncon joint venture, represented by Kajima (Malaysia) Sdn Bhd and Sunway Construction Sdn Bhd, for the development of a New GDC in Port Klang, which will be its biggest warehouse in the world.

“This partnership aligns with our vision to elevate Selangor’s position as Southeast Asia’s hub for trade and logistics. It reflects our commitment to attracting high-value investments that drive economic growth and create quality employment opportunities for the people of Selangor,” said Amirudin.

The GDC will serve as a global distribution hub for Daiso, facilitating the inbound logistics of Daiso products from countries such as Japan and China, for the outbound distribution to 22 countries across Asia and the Middle East. It stated that the move will enhance the availability of Daiso products in these regions.

The construction of the GDC is scheduled to commence in May 2024, with an expected completion date in May 2026. The GDC will be integrating Automated Storage and Retrieval System technology into its operations, in collaboration with Murata Electronics (Malaysia) Sdn Bhd.

Spanning 130,000 square metres, the New GDC is set to handle a range of products, including kitchen tools, cleaning supplies, personal care items, stationery, and more, totaling 35,000 Stock Keeping Units.

Daiso stated that the decision to select Malaysia as the prime location for the New GDC, particularly in Port Klang, stems from several factors.

“Over time, Malaysia has emerged as a hub for both inbound and outbound logistics, owing to its world-class infrastructure and the accessibility and efficiency of Port Klang. It has been favored as a gateway for regional trade, thanks to its positioning, enabling connections to global markets, making it ideal for the New GDC project,” it said in a statement.

It added that the establishment of the New GDC will also result in the increase in container traffic at the local port.

“This growth in economic activity will create a demand for labour across various sectors, from dockworkers and truck drivers to logistics managers and administrative staff. Beyond employment opportunities and economic growth, the New GDC will foster a sense of stability within the local community, creating a positive cycle of economic growth by a ripple effect,” it added.

Source: The Sun Daily