Selangor Journal
Westports in Port Klang. — Picture by WESTPORTS

Remarkable efficiency reason Daiso chose Port Klang for new global warehouse

By Selangor Journal Team

SHAH ALAM, Oct 6 — Japanese variety store Daiso was prompted by Port Klang’s remarkable facilities to select it as the prime location for its new global distribution centre (GDC).

In a statement, Daiso Malaysia Group Sdn Bhd said this was among several critical factors as to why the multinational franchise had chosen Malaysia and in particular the country’s largest port, as its preferred destination.

“Over time, Malaysia has consistently emerged as a strategic hub for both inbound and outbound logistics, owing to its world-class infrastructure and the remarkable accessibility and efficiency of Port Klang.

“It has long been favoured as a gateway for regional trade, thanks to its strategic positioning, enabling seamless connections to global markets, and making it the ideal cornerstone for the new GDC project,” it said.

The statement follows a signing ceremony yesterday between Daiso Malaysia Group and Kajima – Suncon Joint Venture to develop the facility in Pulau Indah, home to West Port.

According to Daiso Malaysia Group chairman Tan Sri Mohd Khairul Adib Abd Rahman, the new GDC is designed to be a one-stop centre which will enhance the overall efficiency of its supply chain.

By centralising product supply within Malaysia, Daiso aims to control and manage lead times effectively, ensuring timely product deliveries to customers.

“Spanning 130,000 square metres, the facility is set to handle a diverse range of products, including kitchen tools, cleaning supplies, personal care items, stationery, and more, totalling an estimated 35,000 stock-keeping units,” he said.

The construction of the new hub is scheduled to commence in May 2024 and is expected to be completed within two years at a RM1 billion investment.

Khairul Adib believes the GDC will result in significant national economic growth, with a considerable increase in container traffic projected for the local port, which will lead to enhanced port operations, improved efficiency, and increased capacity.

He expects this to create a surge in demand for labour across various sectors, from dockworkers and truck drivers to logistics managers and administrative staff.

“Beyond employment opportunities and economic growth, the GDC will foster a sense of stability within the local community, creating a positive cycle of economic growth by a ripple effect,” Khairul Adib said.

The new GDC will integrate an automated storage and retrieval system technology into its operations in collaboration with Murata Electronics (Malaysia) Sdn Bhd.

“This strategic decision signifies the dedication to a logistics revolution aimed at enhancing operational efficiency, precision, and speed, aligning perfectly with Daiso’s commitment to excellence in its operations,” he said.

Speaking at yesterday’s signing ceremony, Menteri Besar Dato’ Seri Amirudin Shari said Daiso’s decision to invest in Selangor reflects the state government’s commitment to attracting high-value investment to ensure economic growth and quality job opportunities.

“This project aligns with our vision to elevate Selangor’s position as Southeast Asia’s hub for trade and logistics.

“It reflects our commitment to attracting high-value investments that drive economic growth and create quality employment opportunities for the people of Selangor,” he said.

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