IKEA keeps expanding in Asia

IKEA has decided to establish its regional distribution and supply chain centre for ASEAN in Malaysia. The centre will be among the top 10 largest regional distribution centres of IKEA Group globally, Malaysian Investment Development Authority (MIDA), said.

According to Malaysian media, the facility will cost about RM908 million (US$212 million), and will serve the existing 12 IKEA stores in ASEAN – and seven more planned for construction by 2026. IKEA currently has stores in Thailand, Malaysia, Singapore and Indonesia. More are planned for the Philippines and Vietnam, although launch dates have yet to be announced.

Malaysia’s international trade and industry minister Datuk Seri Mustapa Mohamed said the project adds momentum towards making Malaysia a regional distribution hub and the preferred logistics gateway to Asia, as outlined in the National Logistics and Trade Facilitation Masterplan and National E-Commerce Strategic Roadmap.
The government has been actively encouraging large local conglomerates and multi-national corporations to set up their regional establishment here through various business models. This includes the Principal Hub scheme, that allows companies to centralise their global activities such as procurement and distribution.

Will be Malaysia the next  distribution hub in the region?

Source: Retail News Asia