Taiwan’s warehousing infrastructure developer, Ally Logistic Property, Co Ltd (ALP) is set to invest US$1 billion in Malaysia to develop smart warehousing solutions to boost the nation’s logistics industry.
ALP said in a statement that its plans in Malaysia are already underway with the development of the US$180 million 27-acre logistics park called OMega, in Bukit Raja, Selangor.
According to Charlie Chang, co-founder & CEO of ALP, Malaysia’s supply chain industry represents vast opportunities that are yet untapped and large-scale investments and a sharing economy business model will see the industry experience greater growth.
“The Malaysian market offers tremendous potential, and we are confident that our investment here will attract more regional players and other high-value investments to drive Malaysia’s aspirations towards becoming a regional e-commerce hub.
“ALP’s OMega introduces collaborative operating models to unveil new economic opportunities and spur growth for the industry while empowering local brands in their digital transformation journey to reach new markets and unlock wealth,” Chang said.
Chang added that Malaysia continues to remain an attractive market for e-commerce with its gross merchandise value (GMV) projected to rise to US$30 billion by 2025. E-commerce income grew 23.3% year-on-year to RM267.6 million in the Q2 2021, driven mainly by the manufacturing and services sectors.
OMega is a multi-storey, technology integrated warehousing platform equipped with hyper-automation and designed to help Malaysian and multinational brands and retailers achieve improvements in efficiency and greater accuracy in decision-making. ALP Bukit Raja OMega will generate an estimated 500 job opportunities.
ALP plans to introduce a ‘shared warehouse’ structure to offer flexibility to support its clients’ business expansion. The automation solution supports the transformation of labour-intensive supply chains via data application and helps companies tackle the complexity of warehouse management to optimise business processes, gain time and improve cost-efficiency, the company said.
Accelerating Logistics 4.0 Implementation
The economic spill-over from the OMega facility will see the creation of new growth drivers for the nation while supporting Malaysia’s Logistics 4.0 goals, said Keren Liu, managing director of ALP Malaysia, noting that the smart warehousing model will provide greater momentum for businesses to be part of the global supply chain.
“ALP’s investment will help to create more job opportunities in Malaysia. With automation at the core of ALP’s offerings, we aim to enrich Malaysia’s warehousing infrastructure and advance convergence with global supply chains; this in turn will support Malaysia’s Logistics 4.0 ambition and strengthen its position as the preferred warehousing gateway in Asia.”
OMega also aims to become a hub for distribution along the west coast of Malaysia with its immediate accessibility via the North Klang Valley Expressway (NKVE), the New North Klang Straits Bypass (NNKSB) and the West Coast Expressway (WCE).
Its proximity to the central business district of Kuala Lumpur and Port Klang makes it an ideal destination for manufacturing and warehousing, especially for local and multinational brands.
The facility will feature 1.2 million square feet in leasable area with additional 100,000 pallets in the co-sharing automated storage and retrieval system (AS/RS) zone with a total of 150 loading docks.
ALP Bukit Raja OMega construction is expected to be completed in 1Q24. It will be part of ALP’s planned regional chain of warehousing facility networks located across Malaysia. The network of warehouses is expected to generate estimated 3000 job opportunities.
Since its inception in 2014 as one of the first smart warehousing infrastructure developers to offer automation and robotic solutions in Taiwan, ALP has grown to become one of the leading players in the industry and is now managing more than 500,000 square meters of warehouses and over US$800 million assets.
In 2019, ALP began its Southeast Asia market expansion with the first subsidiary office set up in Malaysia which will be followed by neighbouring countries including Vietnam, Thailand, Philippines, and Indonesia.