DHL Supply Chain commits EUR350 million in Southeast Asia, including Malaysia, to help strengthen customers’ supply chain resiliency

• More than a third of these investments will be directed to Malaysia

• Adds 113,000 square meters of warehouse space, spread across four new facilities, to support customer growth in Malaysia

• 450 jobs will be created in Malaysia by 2024

PENANG, MALAYSIA – Media OutReach – October 17, 2023 – DHL Supply Chain, the global market leader in contract logistics solutions, announces an investment of €350 million in Southeast Asia over the next five years to increase its capacity warehousing, its workforce and its sustainable development initiatives.

“There is a global reshuffling of supply chains and Malaysia will benefit from this, particularly in the manufacturing sector. A member of ASEAN, the country is party to numerous free trade agreements, making it an attractive option for those looking to diversify their sourcing options. This is why we are investing €131 million in Malaysia, to ensure we have the capacity and talent to support our customers’ growth here,” said Andries Retief, CEO of DHL Supply Chain South Asia. -East.

DHL Supply Chain: SEA’s supply chain partner of choice, increasing capacity and future-proofing its warehouses

In addition to an already strong presence in Malaysia, DHL Supply Chain will introduce new facilities across the region – two in Penang and one in each of the Central and Southern regions. These new builds will add 113,000 square meters of warehouse space to its existing portfolio of 217,300 square meters.

Part of the multi-million investment will be dedicated to implementing advanced automation at the upcoming Penang Logistics Hub 5 (PLH5) in Bayan Lepas, Penang. Additionally, DHL Supply Chain will continue to invest in its warehouse management systems (WMS) and digitalization initiatives, such as state-of-the-art automated pallet storage and retrieval systems (ASRS) and GTP (goods) robotic technology. to person). will be present in the new warehouses to manage the preparation of small parts.

DHL Supply Chain aims to expand its transportation capabilities in Malaysia with significant investments in its fleet, systems and personnel. It will also have its first connected control tower in Kuala Lumpur, offering standardized and centralized transportation services with end-to-end visibility.

Investing in talent for a future-ready supply chain

Underlining its commitment to workforce development in Malaysia, DHL Supply Chain will create 450 jobs in 2024, primarily focused on the digitalization and automation of its warehouses. DHL Supply Chain offers its Malaysian employees the opportunity to learn and develop from their peers through its global network.

“Developing a knowledge-based economy is key to Malaysia’s growth plan, and we support this vision by investing in our people. Our local employees have the opportunity to share and gain knowledge with a global network, giving them visibility beyond what we do here. Our many digitalization initiatives allow them to upskill and hone the skills needed to support our operations.

Labor shortage is also a challenge in the sector, and we are proud to be the only multinational logistics company authorized to bring in foreign labor to supplement the workforce local if necessary,” added Mario Lorenz, DHL Country General Manager Supply Chain Malaysia.

DHL Supply Chain advocates inclusiveness in its recruitment by partnering with the Malaysian government to provide employment opportunities to the hearing and speech impaired community. An internal sign language certification program is available for DHL Supply Chain Malaysia employees to improve communication with colleagues.

Promoting green supply chain management

DHL Supply Chain is committed to having carbon neutral facilities for all new construction. Today, all of its facilities in Malaysia have achieved carbon neutrality, demonstrating its leadership towards sustainability in the supply chain sector.

Other sustainability initiatives include the recent integration of smart LED lighting and solar panels across 100,000 square meters of DHL Supply Chain’s Integrated Logistics Center (ILC) warehouse in Malaysia.

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