A joint seed investment of over USD2 million from IIB and DHL have made it possible to launch DHL’s GCOE to improve the logistics ecosystem in Iskandar Malaysia
DHL have recently commenced operations of its latest Global Centre of Excellence (GCOE) in Iskandar Malaysia, the first in such public-private partnership in the country. This is the second GCOE in the world, the first being in Panama.
The GCOE consolidates supply chain consultancy services and logistics design for many of Iskandar Malaysia’s focal industries including Automotive, Energy, Engineering and Manufacturing, Life Sciences and Healthcare and Technology.
Jimmy Puah Wee Tse, International Trade, Investment and Utilities Committee Chairman, who officiated the opening on behalf of Menteri Besar Dato’ Osman Sapian, said that the GCOE enhances the logistics eco-system in Iskandar Malaysia where speed, connectivity and logistics solutions are the backbone of today’s business.
“The Johor state government will continue to support and encourage more public and private corporations to amplify this initiative to make Johor and Iskandar Malaysia attractive investment destinations,” he said.
“There is no denying that Iskandar Malaysia has been the engine driving Johor’s economy since its inception in 2006. To date it has garnered over RM250 billion worth of investments and kudos to those who have made Iskandar Malaysia the darling of Malaysia,” Puah said.
“But we will not rest on our laurels and will continue to take Johor to greater heights.
“Today’s initiative by IIB and DHL, is another chapter, a vital component in achieving this ambition,” he added.
Puah said that GCOE is complementary to the existing logistics ecosystem in Iskandar Malaysia where connectivity and logistics solutions are crucial in doing business.
“I think Johor is made for the logistics industry; where else in Malaysia do you have two coastlines, three ports, excellent road and rail infrastructure and an international airport and construction of the double-tracking railway system will commence next year, further enhancing our reputation as a logistics centre when that is completed,” he added.
Puah further added that the State will do whatever it takes to assist businesses to achieve their goals by providing the right ecosystem for investments in Iskandar Malaysia.
In thanking DHL for locating their GCOE in Iskandar Malaysia; it will motivate more investments into the corridor, said Puah adding, our Menteri Besar has set a target for him to bring in RM8 billion worth of investments into Iskandar Malaysia.
“To put that into perspective, the FDI for Johor in 2017 was RM5.1 billion, the second highest in Malaysia, so if we can achieve the RM8 billion target, I’ll be a very happy man,” said Puah.
According to a joint IIB and DHL statement, Malaysia’s exports have been consistently hitting new heights throughout 2018, according to MATRADE (Malaysia External Trade Development Corporation) statistics, so the opening of this GCOE comes at a pivotal juncture in the country’s economic development as one of Southeast Asia’s industrial powerhouses.
The statement added that the Iskandar Malaysia economic zone occupies more than 2,200 square kilometres, or more than 10% of the Johor State in which it is located, with the goal of generating more than RM120 billion in GDP for Malaysia by 2025.
“With rapid growth in flagship sectors like technology and manufacturing, and alongside heightened interests from major trading partners like China, Korea and Japan, Iskandar Malaysia must be ready with its own in-house, high-quality logistics services that can connect it to the rest of Asia and ultimately, the world,” said Datuk Ir. Khairil Anwar Ahmad, President and Chief Executive Officer of Iskandar Investment Berhad (IIB).
GCOE has been established by DHL in partnership with Iskandar Innovations Sdn Bhd, a wholly-owned subsidiary of IIB with joint seed investment exceeding USD2 million.
Philip Chu, Managing Director, Global Center of Excellence Iskandar Malaysia said, “We envisage Iskandar Malaysia as a gateway between Asia and the rest of the world; one which will rely on resilient and adaptive logistics connectivity to reach its full potential.”
“The GCOE acts as the integrated platform connecting authorities, ecosystem partners and chambers of commerce through a joint value proposition to support potential investors,” he added.