Tiong Nam earmarks RM200 million to expand warehousing space, truck fleet - MIDA | Malaysian Investment Development Authority
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Tiong Nam earmarks RM200 million to expand warehousing space, truck fleet

Tiong Nam earmarks RM200 million to expand warehousing space, truck fleet

26 Sep 2020

Tiong Nam Logistics Holdings Bhd has allocated RM200 million in capital expenditure (capex) to expand its logistics and warehousing services division.

The integrated logistics services provider said 90 per cent of the capex would be used to build a 190,000 sq ft warehouse in Senoko, Singapore, as well as another two warehouses in Pasir Gudang and Kempas in Johor that are currently in the planning stages.

“The three warehouses are expected to be completed in the financial year ending March 31, 2022 (FY22),” it said in a statement today.

Meanwhile, the remaining 10 per cent of the capex will be used for two smaller warehouses and related supporting buildings to be situated in Johor, as well as for new trucks for the logistics business, which are expected to be incurred in FY22.

“The new warehouses will increase the group’s total warehousing capacity by more than 10 per cent to exceed 6 million sq ft from 5.6 million sq ft as at March 2020,” the company said.

Tiong Nam said since the Movement Control Order’s (MCO) implementation in March 2020, the company had seen a surge in demand for its warehousing space, which helped mitigate lower logistics deliveries due to the movement restrictions and business inactivity.

It also following the relaxation under the Conditional MCO and Recovery MCO that started in April 2020 and June 2020, respectively, it had gradually resumed its logistics deliveries, complemented by stable demand for warehousing.

Managing director Ong Yoong Nyock said the expanded facilities in key logistic hubs in Southeast Asia allowed the company to support the increasing needs of its customers, as well as continue broadening its client base.

“This falls in line with our efforts to strengthen our market position and capabilities in Malaysia and the region, towards becoming a preferred total logistics provider that supports the growth requirements of domestic and global businesses,” he said.

Source: Bernama