Loke calls for more incentives to attract global distribution hubs

Malaysian Transport Minister Anthony Loke has urged the Finance Ministry to provide more incentives to attract international companies to set up global distribution centres within the country. Loke highlighted that such investments would bolster Malaysia's logistics sector, generate employment opportunities, and lead to broader economic advantages.

Addressing the inauguration of Daiso's Global Distribution Centre in Port Klang, Loke emphasized the importance of additional incentives to entice more global brands to utilize Malaysia as a distribution hub. The Prime Minister, who doubles as Finance Minister, was present at the event. Loke pointed out that Daiso's nearly 550,000 sq ft facility, the company's largest logistics hub thus far, is anticipated to process over 4,600 outbound containers annually, serving 27 countries and regions across Asia, the Middle East, Australia, and the Americas.

He explained that substantial investments like these result not only in the construction of warehouses and distribution centres, but also in numerous indirect benefits, such as job creation and the enhancement of Malaysia's entire logistics ecosystem. Loke emphasized that the incorporation of advanced warehouse automation and supply chain management systems would aid in cultivating skilled Malaysian professionals, including logistics engineers, systems specialists, and supply chain experts.

He further noted that Daiso's decision to locate the center near Port Klang demonstrated confidence in the efficiency of Malaysia's maritime infrastructure, recalling that Prime Minister Anwar Ibrahim had previously questioned the efficiency of Malaysian ports. Loke stated that he had reassured the Prime Minister that Malaysian ports were, in fact, efficient, citing Daiso Industries president and CEO Seiji Yano's testimony.

Loke expressed confidence that the center would reach full capacity within a few years, potentially paving the way for future expansion. He assured investors that the government would persist in enhancing port efficiency, broadening road and rail connections, and digitalizing trade documentation to maintain Malaysia's logistics network competitiveness.