PETALING JAYA: DHL Supply Chain plans to invest €350 million (RM1.8 billion) in Southeast Asia with more than a third of the investment or €131 million (RM654.46 million) to be invested in Malaysia over the next five years.
Of the €350 million, DHL Supply Chain will allocate €104 million (RM 521 million) in Singapore, €80 million (RM401 million) in the Philippines, and €35 million (RM175 million) in Indonesia to expand its warehousing capacity, workforce and sustainability initiatives.
DHL Supply Chain Southeast Asia CEO Andries Retief said there is a global reshuffle of supply chains and Malaysia will benefit from it, especially in the manufacturing sector.
“As a member of Asean, the country is part of numerous free trade agreements, making it an attractive option for those looking to diversify their sourcing options.
“This is why we are investing €131 million to ensure that we have the capacity and talent to support our customers’ growth here,” he said during a media briefing today.
Meanwhile, DHL Supply Chain will also introduce two new facilities in Penang with one each in the central and southern regions.
These new facilities will add 113,000 square meters (sq m) of warehouse space to its existing portfolio of 217,300 sq m.
Part of the multi-million-euro investments will be directed to the implementation of advanced automation at the upcoming Penang Logistics Hub 5 (PLH5) in Bayan Lepas, Penang.
Meanwhile, DHL Supply Chain CEO Oscar de Bok said there is an incredible opportunity for businesses in Southeast Asia to strengthen supply chain resiliency as companies are looking at diversifying supply chains.
“Southeast Asia, with its efficient work environment and effective trade agreements such as the China-Asean Free Trade Agreement, stands to benefit the most,” he said.
He said Malaysia is a very interesting market and Penang specifically has good market potential due to its geographical and strong foreign direct investment perspectives.
The company will also continue to invest in its warehouse management systems and digitalisation initiatives such as automated pallet storage and retrieval systems, and GTP (goods-to-person) robotics technology, which will be featured in its new warehouse facilities.
In addition, the logistics solutions provider aims to expand its transportation capabilities in Malaysia with significant investment in its fleet, systems and people, with its first connected control tower in Kuala Lumpur.
With this expansion plan, it aims to create 450 jobs in 2024.