Swedish furniture retailer Ikea is to open a regional distribution and supply chain centre for Asean in Malaysia.
According to Malaysian media, the facility will cost about RM908 million (US$212 million), and serve the existing 12 stores in the Ikea Asean network – and seven more planned for construction by 2026.
The 100,000 sqm warehouse will be one of Ikea’s largest worldwide and reflects the company’s growing focus on the fast-growing Asian market.
Ikea currently has stores in Thailand, Malaysia, Singapore and Indonesia. More are planned for the Philippines and Vietnam, although launch dates have yet to be announced.
It is unclear whether Ikea stores in Hong Kong and India will also source products from the new facility.
Malaysia’s international trade and industry minister Datuk Seri Mustapa Mohamed said the project adds momentum towards making Malaysia a regional distribution hub and the preferred logistics gateway to Asia, as outlined in the National Logistics and Trade Facilitation Masterplan and National E-Commerce Strategic Roadmap.