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

• More than a third of this investment will flow into Malaysia
• Adds 113,000 square meters of warehouse space, spread over four new facilities, to support customers' growth in Malaysia
• 450 jobs to be created in Malaysia by 2024

PENANG, MALAYSIA - Media OutReach - 17 October 2023 - DHL Supply Chain, the global market leader for contract logistics solutions, announces an investment of EUR350 million in Southeast Asia over the next five years to expand its warehousing capacity, workforce and sustainability initiatives.

"There is a global reshuffle of supply chains and Malaysia will benefit from it, especially 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 EUR131 million into Malaysia, to ensure that we have the capacity and talent to support our customers' growth here," said Andries Retief, CEO, DHL Supply Chain Southeast Asia.

DHL Supply Chain: SEA's supply chain partner of choice expanding capacity and future proofing warehouses

To an already strong presence in Malaysia, DHL Supply Chain will introduce new facilities across the region – two in Penang and one each in 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 euro investments will be directed to the implementation of advanced automation at the upcoming Penang Logistics Hub 5 (PLH5) in Bayan Lepas, Penang. In addition, DHL Supply Chain will continue to make investments into its Warehouse Management Systems (WMS) and digitalization initiatives, such as state-of-the-art automated pallet storage and retrieval systems (ASRS) and GTP (goods to person) robotics technology will be featured in the new warehouse facilities to handle small parts picking.

DHL Supply Chain aims to expand its transportation capabilities in Malaysia with significant investment in its fleet, systems and people. It will also have its first Connected Control Tower in Kuala Lumpur, offering standardized and centralized transport services with end-to-end visibility.

Investing in talent for a future-ready supply chain

Emphasizing its commitment to workforce development in Malaysia, DHL Supply Chain will create 450 jobs in 2024, primarily centered on digitalization and automation in its warehouses. DHL Supply Chain offers its Malaysian employees the opportunities to learn and upskill from their peers via its global network.

"The development of a knowledge-based economy critical to Malaysia's growth plan, and we support the vision by investing in our people. Our local employees have the opportunity to share and gain knowledge with a global network, giving them exposure beyond what we do here. Our many digitalization initiatives allow them to upgrade themselves to honing the relevant skills needed to support our operations.

The labor crunch is also a challenge in the sector, and we are proud to be the only multi-national logistics company with the license to bring in foreign labor to complement the local workforce where necessary," added Mario Lorenz, Country Managing Director, DHL Supply Chain Malaysia.

DHL Supply Chain champions inclusivity in its hiring as it partners with the Malaysian government to provide employment opportunities for the hearing-impaired and speech-disabled community. An internal Sign Language Certification Program is available for DHL Supply Chain Malaysia's employees to enhance communication with their colleagues.

Championing a green supply chain management

DHL Supply Chain is committed to having carbon-neutral facilities for all new builds. Today, all of its facilities in Malaysia have achieved carbon neutrality, showcasing its leadership in championing 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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