GEORGE TOWN, October 24 – DHL Supply Chain, a global leader in contract logistics solutions, has unveiled a substantial investment of EUR350 million in Southeast Asia over the next five years. The investment aims to boost warehousing capacity, workforce development, and sustainability efforts. Notably, EUR131 million of this investment is earmarked for Malaysia, reflecting the country’s growing importance in global supply chains. Andries Retief, CEO of DHL Supply Chain Southeast Asia, emphasized Malaysia’s strategic position in the changing landscape of global supply chains. As a member of ASEAN with numerous free trade agreements, Malaysia attracts businesses looking to diversify their sourcing options.
To support customer growth, DHL is allocating EUR131 million to ensure they have the capacity and talent required in Malaysia. DHL Supply Chain will introduce new facilities in Malaysia, including two in Penang and one each in the Central and Southern regions. These additions will contribute 113,000 square meters of warehousing space to their existing 217,300 square meters. Part of this investment will be directed toward advanced automation at the upcoming Penang Logistics Hub 5 (PLH5) in Bayan Lepas, Penang.
Warehouse Management Systems (WMS) enhancements and digitalization initiatives will continue, with state-of-the-art automated pallet storage and retrieval systems (ASRS) and GTP (goods to person) robotics technology being featured in the new warehouses, particularly for small parts picking. Moreover, DHL Supply Chain intends to expand its transportation capabilities in Malaysia with substantial investments in its fleet, systems, and workforce. The company will establish its first Connected Control Tower in Kuala Lumpur, providing standardized and centralized transport services with end-to-end visibility.
In alignment with the commitment to workforce development in Malaysia, DHL Supply Chain will create 450 jobs by 2024, with a focus on digitalization and automation in its warehouses. Malaysian employees will have opportunities to learn and upskill through the company’s global network, aligning with Malaysia’s vision of a knowledge-based economy. DHL Supply Chain Malaysia has also been granted a license to employ foreign labor, providing flexibility to address labor challenges in the sector. Additionally, DHL Supply Chain champions inclusivity in its hiring, partnering with the Malaysian government to offer employment opportunities to the hearing-impaired and speech-disabled community.
An internal Sign Language Certification Program is available for employees, fostering improved communication within the workforce. Sustainability is at the core of DHL Supply Chain’s operations, and the company is committed to achieving carbon-neutral facilities for all new builds. Currently, all of its facilities in Malaysia have achieved carbon neutrality, emphasizing the company’s leadership in promoting sustainability in the supply chain sector. Recent sustainability initiatives include the integration of Smart LED lighting and solar panels across 100,000 square meters of DHL Supply Chain’s Integrated Logistics Centre (ILC) warehouse in Malaysia.
