Malaysia moves closer to becoming Asean's logistics hub, says Tengku Zafrul

KLANG: The groundbreaking of the Supply Chain City Malaysia (SCC MY) project brings Malaysia a step closer to becoming Asean's premier logistics and trade hub, says Tengku Datuk Seri Zafrul Aziz.
Built by Singapore-based YCH Group in partnership with Sime Darby Property, the RM500mil project will feature a modern smart logistics facility in Bandar Bukit Raja.
The Investment, Trade & Industry Minister said SCC MY will include state-of-the-art automation and AI-driven logistics systems, rarely seen in the country.
"Combined with planned sustainability solutions, this project will accelerate industrial transformation through advanced supply chain solutions and logistics innovation."
"This facility will elevate Malaysia's logistics industry to a new level of global competitiveness," he said at the project's groundbreaking ceremony on Thursday (May 29).
He added that the project will train local talent for these automated systems by integrating Singapore's Learn ecosystem in collaboration with Singapore's Supply Chain and Logistics Academy (Scala).
"This will ensure our local hired talents are equipped with higher-end skills while future-proofing our supply chain ecosystem," he said.
Tengku Zafrul also said SCC MY is the first project under the New Industrial Master Plan 2030 and demonstrates increasing regional cooperation in Asean.
"This project embodies the spirit of innovation, collaboration, and resilience that defines our nation and the region."
"It is a testament to our commitment to fostering sustainable growth and regional integration."
"The Government, through MITI and other relevant agencies, stands ready to support this endeavour and ensure its success," he added.
YCH Group executive chairman Robert Yap said SCC MY would set new standards of logistics excellence in the country.
"We are dedicated to training local talent, empowering them with essential skills to support Malaysia's journey to become a preferred destination for global businesses," he said.
Yap revealed that the project would integrate sustainable solutions into its operations, like renewable energy, using solar panels across the entire rooftop of the facility.
He added that YCH would also invest in local startups and help integrate them into SCC MY's planned logistic ecosystem.
Sime Darby Property group managing director and CEO Datuk Seri Azmir Merican said the project will strengthen and bring much-needed innovation to local supply chain infrastructure.
"YCH brings a strong regional portfolio that will strengthen Bandar Bukit Raja as a strategic point in the regional supply chain network."
"This project is a timely example of much-needed cross-border collaboration, aligning with the region's shared focus on economic integration, sustainable and inclusive growth."
"Through our collaboration, we hope to strengthen trade linkages, support innovation, and contribute meaningfully to broader regional priorities," he said.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

New Straits Times

2 hours ago

• New Straits Times

Leaping ahead to lead with conviction

Malaysia's remarkable 11-spot jump in the IMD World Competitiveness Ranking (WCR) —from 34th position in 2024 to 23rd in 2025—is more than just a statistical victory. It is a powerful testament to the effective implementation of the MADANI Government's economic reforms, including fiscal, industrial and social. For context, the WCR assesses the ability of economies to foster an environment that supports business competitiveness, productivity and economic growth, across four main categories: economic performance, government efficiency, business efficiency and infrastructure. Malaysia's marked improvement in three out of four areas, especially the leap to fourth among 69 economies in economic performance, is no small feat. MITI is especially pleased that our industrial reforms implemented under the New Industrial Masterplan 2030 have contributed to the jump in the rankings in terms of sub-factors such as domestic economy (+20); international trade (+11); international investment (+2); employment (+8); institutional framework (+11); business legislation (+4); productivity and efficiency (+19) and the labour market (+11). While there is still much room for improvement, this dramatic increase in the rankings is a strong validation that Malaysia's economy is on the right track and we are steadily regaining our competitive edge on the global stage. This surge in competitiveness is not accidental. It is the result of intentional, coordinated, and at times, politically difficult reforms. It reflects a responsible governance approach under Datuk Seri Anwar Ibrahim's Madani Economy framework, and the deft execution by the relevant economic ministries and agencies including MITI, which has led the implementation of Malaysia's revamped trade, investment, and industrial strategies. MITI's agency, the MPC, has led the coordination work on improving the WCR sub-factors across various ministries and agencies. At the heart of this leap is a more aggressive posture on bureaucratic reform and investment facilitation. MITI's leadership of the National Competitiveness Council (JKDSN) together with the Finance Ministry has driven whole-of-government efforts to streamline investment approvals, reduce regulatory burdens, ease investors' journey and modernise economic policy frameworks. Moreover, the establishment of the Special Taskforce on Agency Reform (STAR) led by Chief Secretary to the Government (KSN) — part of the wider Public Service Reform Agenda (2024-2030) and involving over 1,000 reform initiatives at federal and state levels — has helped dismantle bottlenecks that previously discouraged investors. The improvement in the international trade sub-factor—rising 11 spots to 6th globally—is also clear evidence of targeted policy outcomes under MITI's purview. This includes enhanced investment strategies by the Malaysian Investment Development Authority (MIDA), and improved trade promotion by the Malaysia External Trade Development Corporation (MATRADE). Our efforts in advancing regional agreements and accelerating participation in digital economy frameworks have also contributed to improvement in the rankings. Concurrently, in a world marked by rising protectionism, geopolitical realignments and economic fragmentation, Malaysia's steady hand in policy continuity is increasingly appreciated by global investors. This competitiveness boost is also a strong endorsement of the NIMP 2030 along with its supporting policies such as the National Semiconductor Strategy and Green Investment Strategy – all of which prioritise high-value industries such as semiconductors, green technology, and digital economy as future growth pillars. Their implementation has already created stronger linkages between industrial policy and talent development, innovation incentives and sustainability goals. Rankings, of course, are not policy goals in themselves—but they do matter. They serve as confidence benchmarks to global markets, foreign investors, and multilateral institutions. A leap of 11 positions makes Malaysia more attractive as a business destination, especially for multinationals seeking resilient and progressive emerging markets in Asia. It also reflects how our institutions – empowered with the political will, mandate and right leadership – are perfectly capable of executing coherent reform agendas for the nation. The Road Ahead: Maintain the Momentum This milestone is cause for celebration, but not for complacency. If anything, the real work begins now. While economic performance and trade efficiency have improved, there remain areas where Malaysia still lags—particularly in innovation capability, workforce productivity, digital transformation, management practices and workforce attitudes. There may be a need to complement structural reforms with human capital upgrades and culture shifts. Global digital and green transitions will require Malaysia to not only adopt new technologies but also to nurture a new generation of skilled, future-ready workers. Here, too, MITI's role will be pivotal. The Ministry will continue working closely with education and human resource agencies to ensure that industrial strategies are matched by robust talent development and pipelines. Initiatives like Academy in Industry programme by MPC, K-Youth under Khazanah Nasional, and upskilling programmes under HRD Corp, must be scaled and better integrated into the national competitiveness agenda. To sustain and further elevate Malaysia's position, it is worthwhile to draw inspiration from international best practices. For instance, Denmark's emphasis on workforce adaptability and lifelong learning ensures that its economy remains resilient and responsive to technological shifts. Meanwhile, South Korea's aggressive investments in R&D and innovation ecosystems have positioned it as a global leader in advanced manufacturing and semiconductors. Malaysia should consider incorporating these elements—such as agile regulatory sandboxes, performancebased innovation grants, and a national work-integrated and lifelong learning agenda—as part of its next phase of competitiveness reforms. More importantly, Malaysia must shift from a primarily input-driven model to one rooted in productivity and innovation-led growth. This means significantly boosting investments in R&D, creating stronger linkages between academia and industry, and nurturing a vibrant startup ecosystem. Malaysia should also emulate countries that rank highly in competitiveness, such as Switzerland, South Korea and Sweden, who lead in patents, intellectual property, and cutting-edge innovation globally. We can try to achieve this in strategic sectors such as advanced electronics, AI, clean energy, and biotech. Incentivising privatesector innovation, reforming procurement to favour innovative solutions, and enhancing funding mechanisms for techpreneurs will be crucial steps forward. Innovation must be made the 'engine' of our long-term economic resilience and prosperity. It is imperative that we maintain this trajectory. The Government has set a goal for Malaysia to be among the Top 12 most competitive economies by 2033. This is ambitious, but now, demonstrably achievable. It must be stressed that improved economic competitiveness means increased chances of attracting high impact investments which will create more job opportunities with higher wages. This latest ranking shows that Malaysia is not just playing catch-up, but also clearly positioning itself to lead especially in today's complex geoeconomic landscape. Our message to the world has been clear and consistent: Malaysia is serious about economic reforms, open for business and ready for the challenges ahead. Ultimately, Malaysia's improved competitiveness is a function of political will and determined leadership. It shows what can be achieved when a government dares to reform and focus on making tough but necessary decisions for Malaysia's future prosperity.

The Star

3 hours ago

• The Star

Hygiene woes swamp Gelang Patah

Pandak at the state assembly sitting raising his constituents' concerns about safety and cleanliness. LACK of cleanliness and the presence of foreign workers in shoplots in Gelang Patah can tarnish the area's image, says a Johor assemblyman. Speaking at the state assembly sitting, Datuk Pandak Ahmad (BN-Kota Iskandar) said quick action was needed to ensure the area remained clean, safe and comfortable for residents. 'Many of the three-storey shophouses near an industrial park in Tanjung Pelepas, Gelang Patah, have been turned into foreign workers' accommodation. 'The area could be labelled as a 'little Bangladesh town' due to the presence of these foreigners. 'Some of these foreigners are even operating sundry shops without valid licences,' Pandak said in his speech during the debate session of the state assembly meeting at Bangunan Sultan Ismail in Kota Iskandar. He expressed hope that the Labour Department, Iskandar Puteri City Council and related agencies would address these issues because rubbish strewn in the back alleys of the shoplots had become a common sight. Separately, Tan Eng Meng (BN-Pekan Nanas) in his speech thanked the state government for not sidelining Pontian in development plans. He was glad that serious attention had been given to districts such as Pontian, where his state constituency is located, rather than just focusing on economic developments only in areas such as Iskandar Malaysia and Pengerang. 'One of the significant developments in Pontian is the Tropicana Industrial Park in Pekan Nanas, involving a major investment of RM2bil by Alton Industry Ltd Group. 'This development will create new job opportunities for locals and strengthen the industrial sector that forms the backbone of the district's economic development. 'In fact, the presence of this new facility, which functions as a research and development hub, marks a major leap for Pekan Nanas,' said Tan. Alton is a US-based global supplier of consumer and commercial tools, appliances and floor care. Tan pointed out that the project had opened up vast opportunities for local talents to develop their potential in the high-tech field, which was becoming increasingly vital.

Borneo Post

3 hours ago

• Borneo Post

Leaping ahead to continue leading with conviction

Incentivising private sector innovation, reforming procurement to favour innovative solutions, and enhancing funding mechanisms for techpreneurs will be crucial steps forward for Malaysia, says Tengku Zafrul. MALAYSIA'S remarkable 11-spot jump in the IMD World Competitiveness Ranking (WCR) – from 34th position in 2024 to 23rd in 2025 – is more than just a statistical victory. It is a powerful testament to the effective implementation of the Madani Government's economic reforms – including fiscal, industrial and social. For context, the WCR assesses the ability of economies to foster an environment that supports business competitiveness, productivity and economic growth, across four main categories: economic performance, government efficiency, business efficiency, and infrastructure. Malaysia's marked improvement in three out of four areas, especially the leap to fourth among 69 economies in economic performance, is no small feat. The Ministry of Investment, Trade and Industry (MITI) is especially pleased that our industrial reforms implemented under the New Industrial Masterplan 2030 have contributed to the jump in the rankings in terms of sub-factors such as domestic economy (+20); international trade (+11); international investment (+2); employment (+8); institutional framework (+11); business legislation (+4); productivity and efficiency (+19), and the labour market (+11). While there is still much room for improvement, this dramatic increase in the rankings is a strong validation that Malaysia's economy is on the right track and we are steadily regaining our competitive edge on the global stage. Reform engine: MITI's coordinating role This surge in competitiveness is not accidental. It is the result of intentional, coordinated, and at times, politically difficult reforms. It reflects a responsible governance approach under Prime Minister Datuk Seri Anwar Ibrahim's Madani Economy Framework, and the deft execution by the relevant economic ministries and agencies including MITI, which has led the implementation of Malaysia's revamped trade, investment, and industrial strategies. MITI's agency, the Malaysia Productivity Corporation (MPC), has led the coordination work on improving the WCR sub-factors across various ministries and agencies. At the heart of this leap is a more aggressive posture on bureaucratic reform and investment facilitation. MITI's leadership of the National Competitiveness Council (JKDSN), together with the Ministry of Finance, has driven whole-of-government efforts to streamline investment approvals, reduce regulatory burdens, ease investors' journey and modernise economic policy frameworks. Moreover, the establishment of the Special Taskforce on Agency Reform (STAR) led by Chief Secretary to the Government (KSN) – part of the wider Public Service Reform Agenda (2024-2030) and involving over 1,000 reform initiatives at federal and state levels – has helped dismantle bottlenecks that previously discouraged investors. The improvement in the international trade sub-factor – rising 11 spots to 6th globally – is also clear evidence of targeted policy outcomes under MITI's purview. This includes enhanced investment strategies by the Malaysian Investment Development Authority (MIDA), and improved trade promotion by the Malaysia External Trade Development Corporation (Matrade). Our efforts in advancing regional agreements and accelerating participation in digital economy frameworks have also contributed to improvement in the rankings. Concurrently, in a world marked by rising protectionism, geopolitical realignments, and economic fragmentation, Malaysia's steady hand in policy continuity is increasingly appreciated by global investors. This competitiveness boost is also a strong endorsement of the New Industrial Master Plan (NIMP) 2030 along with its supporting policies such as the National Semiconductor Strategy and Green Investment Strategy – all of which prioritise high-value industries such as semiconductors, green technology, and digital economy as future growth pillars. Their implementation has already created stronger linkages between industrial policy and talent development, innovation incentives and sustainability goals. Rankings, of course, are not policy goals in themselves, but they do matter. They serve as confidence benchmarks to global markets, foreign investors, and multilateral institutions. A leap of 11 positions makes Malaysia more attractive as a business destination, especially for multinationals seeking resilient and progressive emerging markets in Asia. It also reflects how our institutions – empowered with the political will, mandate and right leadership – are perfectly capable of executing coherent reform agendas for the nation. The road ahead: Maintain the momentum This milestone is cause for celebration, but not for complacency. If anything, the real work begins now. While economic performance and trade efficiency have improved, there remain areas where Malaysia still lags – particularly in innovation capability, workforce productivity, digital transformation, management practices and workforce attitudes. There may be a need to complement structural reforms with human capital upgrades and culture shifts. Global digital and green transitions will require Malaysia to not only adopt new technologies but also to nurture a new generation of skilled, future-ready workers. Here, too, MITI's role will be pivotal. The ministry will continue working closely with education and human resource agencies to ensure that industrial strategies are matched by robust talent development and pipelines. Initiatives like 'Academy in Industry' programme by MPC, K-Youth under Khazanah Nasional, and upskilling programmes under HRD Corp, must be scaled and better integrated into the national competitiveness agenda. To sustain and further elevate Malaysia's position, it is worthwhile to draw inspiration from international best practices. For instance, Denmark's emphasis on workforce adaptability and lifelong learning ensures that its economy remains resilient and responsive to technological shifts. Meanwhile, South Korea's aggressive investments in research and development (R&D) and innovation ecosystems have positioned it as a global leader in advanced manufacturing and semiconductors. Malaysia should consider incorporating these elements such as agile regulatory sandboxes, performance based innovation grants, and a national work-integrated and lifelong learning agenda, as part of its next phase of competitiveness reforms. More importantly, Malaysia must shift from a primarily input-driven model to one rooted in productivity and innovation-led growth. This means significantly boosting investments in R&D, creating stronger linkages between academia and industry, and nurturing a vibrant startup ecosystem. Malaysia should also emulate countries that rank highly in competitiveness, such as Switzerland, South Korea, and Sweden, who lead in patents, intellectual property, and cutting-edge innovation globally. We can try to achieve this in strategic sectors such as advanced electronics, artificial intelligence (AI), clean energy, and biotechnology. Incentivising private sector innovation, reforming procurement to favour innovative solutions, and enhancing funding mechanisms for techpreneurs will be crucial steps forward. Innovation must be made the 'engine' of our long-term economic resilience and prosperity. It is imperative that we maintain this trajectory. The government has set a goal for Malaysia to be among the 'Top 12 Most Competitive Economies' by 2033. This is ambitious, but now, demonstrably achievable. It must be stressed that improved economic competitiveness means increased chances of attracting high impact investments which will create more job opportunities with higher wages. This latest ranking shows that Malaysia is not just playing catch-up, but also clearly positioning itself to lead especially in today's complex geo-economic landscape. Our message to the world has been clear and consistent: Malaysia is serious about economic reforms, open for business and ready for the challenges ahead. Ultimately, Malaysia's improved competitiveness is a function of political will and determined leadership. It shows what can be achieved when a government dares to reform and focus on making tough but necessary decisions for Malaysia's future prosperity. * Tengku Zafrul is Malaysia's Investment, Trade and Industry Minister. IMD World Competitiveness Ranking Miti Tengku Zafrul