DHL Supply Chain is investing €5.2 million (US$5.68 million) in its first warehouse in Southern Malaysia to meet soaring logistics demand from various sectors such as automotive, technology, cloud business and data centres.

The South Region Hub will add 10,000 square metres of warehouse space to the company’s existing portfolio of 236,000 square metres in Malaysia. The construction of the facility will be undertaken by local developer Eastern Group, and is expected to be ready by Q1 2025.

Located in the free trade zone of Senai Airport City, the facility is only 10 minutes away from the North-South Expressway and Senai International Airport, enabling faster delivery times.

"With the launch of the South Region Hub as our 24th facility in Malaysia, we are looking to elevate the standards of logistics in the Southern region and beyond,” says Mario Lorenz, managing director, DHL Supply Chain Malaysia. “This investment reflects our confidence in Johor's potential as an epicentre for regional distribution.”

In line with DHL Supply Chain's global sustainability commitment, the South Region Hub will be a carbon-neutral operation with facilities such as solar panels, smart LED lighting, and rainwater harvesting solutions.

The company plans to invest €350 million in Southeast Asia over the next four years, with €131 million allocated for Malaysia. The investment will cover warehousing capacity, workforce and sustainability initiatives in the country.

DHL Supply Chain is set to open three more facilities across Malaysia – two in Penang and one in the Central region.