In today’s generation, many of us do our shopping online, there are thousands of websites selling almost anything you could ever ask for shipping from all over the world, and Alibaba Group Holding Limited is one of the Chinese e-commerce companies in China.
Alibaba Group plans to set up a regional distribution hub right here in Malaysia to cater to its fast-growing business in the region. The hub would be sited within KLIA Aeropolis, a 24,700-acre development led by airport operator Malaysia Airports Holdings Bhd (MAHB). With the development of the hub, it is expected to generate more than RM7 billion worth of domestic and foreign investments.
“Kuala Lumpur International Airport (KLIA) has an existing facility for the Alibaba Group to pilot their distribution services here, and if (Alibaba) decides to expand in the future, there is the option to build more on other (undeveloped) sites in KLIA Aeropolis,” one source said.
Alibaba executive chairman Jack Ma and Malaysian Prime Minister Najib Razak are expected to announce the plans at an event in Kuala Lumpur soon and did not respond immediately to requests for comment.
With Jack Ma’s plans, he would help steer Malaysia’s e-economy development with the implementation of online payment and banking as Alibaba owns Chinese online shopping business Taobao.
“Many people see Malaysia as an emerging hub next to Singapore. Malaysia may not be able to take all of Singapore’s business but it is a good choice (logistically),” one source said.
This would mark Alibaba’s first investment in Malaysia, the company invested US$1 billion last year in controlling Singapore-based-e-commerce platform Lazada, Southeast Asia’s largest online shopping platform. The distribution hub would be part of Malaysia’s Digital Free Trade Zone (DFTZ), also slated to be launched during Ma’s visit next week.