DHL Supply Chain, the world leader in contract logistics solutions, has unveiled a significant investment plan of €350 million in Southeast Asia over the next five years. The investment is aimed at expanding the company’s warehousing capacity, bolstering its workforce, and advancing its sustainability efforts.
Malaysia, a key player in the global shift of supply chains, will receive a substantial portion of this investment, totaling €131 million. As a member of ASEAN and a participant in numerous free trade agreements, Malaysia is becoming increasingly attractive for businesses seeking diversified sourcing options.
Andries Retief, CEO of DHL Supply Chain Southeast Asia, said, “There is a global reshuffle of supply chains, and Malaysia will benefit from it, especially in the manufacturing sector. This is why we are investing €131 million into Malaysia, to ensure that we have the capacity and talent to support our customers’ growth here.”
The investment will see the introduction of new facilities in Malaysia, including two in Penang and one each in the Central and Southern regions. These additions will provide an additional 113,000 square meters of warehouse space, supplementing the existing 217,300 square meters. Among the advancements, the upcoming Penang Logistics Hub 5 (PLH5) in Bayan Lepas, Penang, will feature state-of-the-art automation, including automated pallet storage and retrieval systems (ASRS) and GTP (goods to person) robotics technology.
In addition to expanding warehouse capabilities, DHL Supply Chain plans to enhance its transportation services by investing significantly in its fleet, systems, and workforce. The company will also establish its first Connected Control Tower in Kuala Lumpur, offering standardized and centralized transport services with end-to-end visibility.
DHL Supply Chain’s commitment to Malaysia extends to workforce development, with plans to create 450 jobs in 2024. These roles will primarily focus on digitalization and automation in warehouse operations, reflecting the company’s dedication to upskilling its employees. DHL Supply Chain is also championing inclusivity by collaborating with the Malaysian government to provide employment opportunities for the hearing-impaired and speech-disabled community. The company offers an internal Sign Language Certification Program to enhance communication among its employees.
Furthermore, DHL Supply Chain is leading the way in sustainability by striving for carbon-neutral facilities for all new builds. Presently, all its facilities in Malaysia have achieved carbon neutrality. The company has also implemented Smart LED lighting and solar panels across 100,000 square meters of its Integrated Logistics Centre (ILC) warehouse in Malaysia as part of its commitment to green supply chain management.
For more information about DHL Supply Chain’s initiatives and investments, please visit here.