KUALA LUMPUR: The proposed regional e-commerce logistics hub in Kota Tinggi, Johor by PDZ Holdings Bhd and Sanichi Technology Bhd will generate over RM30 billion in gross development value (GDV).
The development will be similar to Alibaba Group's logistics centre in China with the initial investment expected to be more than RM1.5 billion.
Sanichi group managing director Datuk Sri Dr. Pang Chow Huat told the New Straits Times that the hub was to cater to higher logistics demand for the movement of medical supplies and devices.
The logistics hub - comprising an e-commerce centre, a distribution centre, warehouses and a transit centre - is designated to handle activities related to transportation, separation, coordination and distribution of products for local and international transit.
"There is strong demand for medical supplies and devices to diagnose, prevent and treat Covid-19, such as diagnostic tests, ventilators, and personal protective equipment (PPE), including surgical masks, face shields, respirators, and gloves," Pang said.
"Health care providers have timely access to high-quality diagnostic and therapeutic medical devices to respond effectively to the Covid-19 pandemic. We are building the hub in Johor in response to the urgency to move medical supplies and devices globally, and other goods required by households," he added.
Pang expects the local e-commerce business to expand this year as more people are shopping online to curb the spread of Covid-19.
Malaysia and Singapore represent the largest e-commerce markets in Southeast Asia.
An estimated 40 per cent of all e-commerce transactions in Malaysia are cross-border orders from American and Chinese webshops.
Malaysia's e-commerce market is worth US$4.3 billion, and prior to Covid-19, it was expected to double to US$8.1 billion by 2024 with a compounded annual growth rate of 14 per cent.
The logistics hub will be developed across 234 acres of land in Desaru, Kota Tinggi.
Pang confirmed that PDZ and Sanichi would jointly apply for approval from the relevant government agencies in Johor to start construction soon.
"Not many know that Sanichi is also a property developer. We are developing Marina Point in Melaka which is almost finishing. Our next development will be the logistics hub," he said.
The precision plastic injection moulding parts manufacturer ventured into the property sector in 2014.
The company's maiden development project is Marina Point in Klebang, Melaka.