Daiso Invests RM1.2 Billion, Strengthening Malaysia’s Aspirations to Become a Global Logistics Hub – PM Anwar

PORT KLANG: Daiso Malaysia Group Sdn Bhd’s (Daiso) RM1.2 billion investment through the opening of its new Global Distribution Centre (GDC) in Pulau Indah here is expected to strengthen Malaysia’s position as a regional logistics hub.

Prime Minister Datuk Seri Anwar Ibrahim said Malaysia’s selection as the location for Daiso’s largest global distribution centre in the world demonstrated the company’s confidence in the country’s economic stability, infrastructure maturity and long-term potential.

“When a company like Daiso chooses Pulau Indah as the location for its largest global distribution centre in the world, it is a clear recognition of Malaysia’s economic stability, infrastructure maturity and long-term potential,” he said.

He said the government did not assess investments solely based on the amount of capital brought into the country but also placed importance on better-paying job opportunities, the development of local capabilities and the participation of Malaysian suppliers in global supply chains.

“We also look at whether the investment can create jobs offering better incomes, develop local capabilities and support sustainable development,” he said when speaking at the inauguration ceremony of the distribution centre on Thursday.

Commenting on the country’s logistics sector, Anwar said Port Klang handled a record 15.1 million twenty-foot equivalent units (TEUs) last year, placing it among the world’s 10 busiest container ports.

However, he said Malaysia needed to focus on increasing the value added to trade rather than merely the volume of cargo passing through the country’s ports.

“The next step is for us to capture more value from the trade flows passing through our ports, rather than focusing solely on cargo volume,” he said.

According to Anwar, the distribution centre would enable goods to be sorted, stored and repackaged according to the requirements of international markets in Pulau Indah, thereby generating economic activity and creating high-skilled jobs.

To support Malaysia’s ambition of becoming a world-class logistics hub, the government is also strengthening transport infrastructure through the development of Westports 2, plans for a mega port on Carey Island, the East Coast Rail Link (ECRL) project and the rail freight transport network.

He also said the involvement of local companies, including PKT Logistics Group and domestic transport operators, in the centre’s operations could encourage technology transfer and create high-value jobs for young people.

In the long term, he hoped more Malaysian-made products could be marketed through Daiso’s worldwide network.

The 133,000-square-metre distribution centre is the largest facility ever built by Daiso worldwide.

It is equipped with an Automated Storage and Retrieval System (ASRS), developed in collaboration with Japan’s Murata Machinery Ltd, with the capacity to manage more than 76,000 stock-keeping units (SKUs).

The centre was also completed ahead of schedule and under the allocated budget.

The facility will serve as Daiso’s main logistics hub, connecting production operations in Japan, China and global suppliers for distribution to 27 countries across Asia and West Asia.

The ceremony also witnessed the exchange of a Memorandum of Understanding (MoU) between Daiso Malaysia Group Sdn Bhd and PKT Logistics (M) Sdn Bhd to strengthen warehousing management and regional cargo delivery.

Also present were Transport Minister Anthony Loke Siew Fook, Daiso Industries Co. Ltd President and Chief Executive Officer Seiji Yano, and Daiso Malaysia Group Sdn Bhd Chairman Tan Sri Mohd Khairul Adib Abd Rahman.

Astro AWANI