The logistics hub “will function as a centralised Customs clearance, warehousing and fulfilment facility for Malaysia and the region, to deliver faster clearance for imports and exports”,Alibaba said in a statement.
It will be part of a digital free trade zone set to be developed close to the Kuala Lumpur International Airport.
Prime Minister Najib Razak launched the free trade zone along with Jack Ma, founder and executive chairman of Alibaba, today.
Reuters had reported on Saturday, citing sources, that Alibaba planned to set up a regional distribution hub in Malaysia to cater to its fast-growing business in the region.