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The supply chain center will manage an inventory worth 6.6
billion ringgit annually, catering to IKEA's growth in the ASEAN
region, the Malaysian Investment Development Authority (MIDA)
said in a statement on Tuesday.
The new 100,000 square meter warehouse will supply to 12
existing retail stores in the region. IKEA plans to grow its
number of stores in ASEAN to 20 by 2026.
IKEA did not immediately respond to a request for comment.
Malaysia is a significant market for IKEA, with retail stores in
the country being among IKEA's most visited globally.
"The establishment (of the warehouse) also adds momentum toward
making Malaysia a regional distribution hub and preferred
logistics gateway to Asia as outlined in the National Logistics
and Trade Facilitation Masterplan and National E-Commerce
Strategic Roadmap," Minister of International Trade and Industry
Mustapa Mohamed said.
Malaysia has been encouraging large local conglomerates and
multi-national companies to use the country as a gateway to the
region through various initiatives, including the principal hub
scheme that allows companies to centralize their global
activities such as procurement and distribution.
The web of companies that make up IKEA has recently focused
ownership of retail operations, which also include shopping
centers and food retail, on IKEA Group. Supply chain management
and design has transferred to brand owner and franchiser Inter
IKEA.
(Reporting by Liz Lee; Editing by Himani Sarkar)
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