KUALA LUMPUR (Aug 29): The Malaysian Investment Development Authority (MIDA) will cooperate with Danish-based shipping and logistics company AP Moller-Maersk to position Malaysia as a regional logistics hub in Asean.
A memorandum of understanding (MOU) was inked between MIDA and Maersk for the purpose, with the pair set to drive high-quality investments into Malaysia and create better synergies and value-added services for customers contributing to the growth and development of the supply chain sector in the Malaysian economy.
During the MOU’s signing ceremony on Monday (Aug 29), MIDA deputy chief executive officer of investment promotion and facilitation Sivasuriyamoorthy Sundara Raja noted that by leveraging upon Maersk’s capabilities in integrated logistics, Malaysia can be transformed into a regional logistics hub in Asean — further boosting infrastructure development and free trade.
“The MOU with Maersk will bring in more targeted global investments into Malaysia through strategic and value-added engagement approaches to multinational companies,” he added.
Additionally, Sivasuriyamoorthy said that the two sides will also build a mutually beneficial eco-system in focus markets to maximise foreign direct investment (FDI) opportunities in Malaysia.
He added that MIDA and Maersk will work to attract high-tech and high-impact investments in sectors — including automotive, electrical and electronics (E&E), machinery and equipment, medical devices, aerospace, renewable energy, and consumer technology.
Maersk managing director of Thailand, Malaysia and Singapore Rupesh Jain noted that one of the company’s key focuses has been creating value for its customers in the geographies it operates in, and noted that this MOU is a strong testament to this.
“We expect that through our cooperation with MIDA, we can help position Malaysia as an attractive investment destination for potential investors. The country’s geostrategic position has made it a natural hub.
“By further enhancing Maersk’s logistics strength, we will contribute towards the growth and development of the Malaysian supply chain,” he added.
Rupesh added that Maersk is constantly growing its logistics footprint globally to support its customers’ reconfiguration of their respective supply chains to make them more agile, resilient and sustainable after their weaknesses were highlighted during the Covid-19 pandemic.
“With the ambition to provide truly integrated logistics to our customers, this collaboration with MIDA allows us to leverage our strengths and combine with Malaysia’s geographical advantage to mount solutions in the region,” he said.
MIDA noted that Maersk commenced its Malaysian operations in 1975 and now employs more than 300 staff with representation in 12 locations throughout Malaysia and warehouse facilities in seven locations with a capacity of up to 68,000 sq m, with more locations and capacity expected to be added in the near future.
Source: The Edge Markets website, https://www.theedgemarkets.com/article/mida-teams-maersk-position-malaysia-aseans-regional-logistics-hub, 1 September 2022
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