Jack Ma to launch Alibaba's regional distribution hub in Malaysia: sources

[KUALA LUMPUR] Chinese e-commerce giant Alibaba Group Holding Limited plans to set up a regional distribution hub in Malaysia to cater to its fast-growing business in the region, two sources aware of the discussions said.

The hub would be sited within KLIA Aeropolis, a 24,700-acre development led by airport operator Malaysia Airports Holdings Bhd (MAHB) that is expected to generate more than RM7 billion (S$2.22 billion) worth of domestic and foreign investments.

Alibaba executive chairman Jack Ma and Malaysian Prime Minister Najib Razak are expected to announce the plans at an event in Kuala Lumpur next week, the sources said.

The hub will be set up with the help of Malaysian state-linked agencies. It was not clear whether Alibaba would invest any funds in the project

"Kuala Lumpur International Airport (KLIA) has existing facility for Alibaba Group to pilot their distribution services here, and if (Alibaba) decide to expand in the future, there is the option to build more on other (undeveloped) sites in KLIA Aeropolis," one source said.

Sources said the distribution hub would be part of Malaysia's Digital Free Trade Zone (DFTZ), also slated to be launched during Mr Ma's visit next week.

"KLIA Aeropolis includes many components and the DFTZ is likely a new component to be added into the development," one source said.

Plans to establish the DFTZ were announced in the national budget last October.

REUTERS

 

Calvin comments:

According to this News Media "The hub will be set up with the help of Malaysian state-linked agencies"

Who are these state-linked agencies?

The answer is crystal clear

POS which is 53% owned by DRB-HICOM

See Statistics from POS Annual Report

8. Pos Malaysia Group KL Airport Services Sdn Bhd (“KLAS”) Provision of logistics services by Pos Malaysia Group

1) DRB-HICOM* - KLAS is a 100%-owned subsidiary of HICOM Holdings Berhad (“HICOM Holdings”), effectively a wholly-owned subsidiary of DRB-HICOM

2)  Provision of transportation and logistic services by KLAS 2,313,588.37 Supply of labour for loading and unloading works by KLAS 316.00

So DRB/POS already got concession lands in KL1A. How large is the Land Size?

Again refer to POS AR (These Assets were Injected into POS. And in return DRB now own 53.5% of POS - making POS the subsidiary company of DRB.)

Pos Malaysia International Hub (PMIH) Concession 36,950 sq meter. 

So POS/DRB have 36,950 sq meter lands in KL1A. How many sq ft?

So convert to Sq ft by multiply with 10.763

36,950 x 10.763 =  397,692 sq ft

And now convert to acre by dividing with 43,560 

397,692 divides by 43,560 =  9.12 acres.

Yes! POS/DRB already got 9.12 Acres of Lands ijn KL1A

Now we see the jigsaw puzzle fitting in perfectly.

Pm Najib proposed Year 2017 as Digital Ecommerce Year. He further encouraged the use of internet by boosting its usage. Then he goes to China & roped in JackMa to be the Advisor of ECommerce for Malaysia.

Meanwhile, POS has indicated more Jv with Alibaba to capture the sun rising industry of ECommerce. And then Injecting DRB's Logistics into POS and there by increading DRB stake in POS to 53.5%.

Now JackMa is in Malaysia to launch ECommerce Free Trade Zone.

And of all the places?

No surprise!!

KLIA which DRB/POS already got an entrenched presence. 

See

Pos Malaysia Group KL Airport Services Sdn Bhd (“KLAS”) Provision of logistics services by Pos Malaysia.

1) DRB-HICOM* - KLAS is a 100%-owned subsidiary of HICOM Holdings Berhad (“HICOM Holdings”), effectively a wholly-owned subsidiary of DRB-HICOM

Provision of transportation and logistic services by KLAS

Supply of labour for loading and unloading works by KLAS

DRB got lorries & trucks for transporting goods

DRB also  2 Cargo Planes for sending goods overseas

DRB produce Modenas Bikes which can reach all the nooks & corners of West & East Malaysia. See how Postmen deliver your post/parcels  by bikes. 

As of now few analysts are media or newspapers report this fact.

We will know for sure in coming days.

You might question

What has POS jv with Alibaba got to do with DRB?

Of course there is! POS is now the subsidiary company of DRB. If POS shares are suspended for impending announcement - so will be DRB-HICOM. DRB Hicom will benefit immensely from its 53.5% Investment in POS.

This is now the time & year for POS & DRB to perform

 

HIP HIP HOORAY!

Calvin Tan Research

Jurong, Singapore