Bursa Malaysia (KLSE) Stock Investment Portal

JOINT PRESS RELEASE
PDZ & SANICHI DEVELOPS MEGA e-COMMERCE LOGISTICS HUB
17th July 2020
Today, PDZ Holdings Berhad [“PDZ” (Stock Code: 6254) ] and Sanichi Technology Berhad [ “Sanichi”
(Stock Code: 0133) ], has concluded a Collaboration Agreement, which will eventuate into the
formation of a Special Purpose Vehicle (SPV) between them and potentially with other yet to be
identified stakeholders, to jointly design, develop and manage a regional e-Commerce Logistics Hub
in Desaru, Kota Tinggi, Johor.
Due to the rampant market rumours and speculation surrounding this discussion, both PDZ and
Sanichi have decided to jointly release this Joint Press Release.
The massive 234 acres targeted location site for the e-Commerce Logistics Hub, is intended to
facilitate bulk-breaking, packaging and distribution throughout the South East Asian (SEA) region.
There is a specific requirement for a central location within the region to handle the massive growth
in e-Commerce and drop shipping. Any such location has to have reasonable easy access to flight
and freight for regional distribution, as well as existing network spokes throughout the region to
facilitate bulk breaking and packaging silos.
In this collaboration, PDZ will provide its technical expertise in logistics management, to design and
implement an automated digital platform, alongside world class information and communication
technology (ICT) infrastructure to facilitate the operation of the e-Commerce Logistics Hub with
sustainability and digitisation in mind, using the latest trends in Artificial Intelligence (AI), 5G
connectivity capability and automation. The hub will be designed and constructed on the back of
green-energy with environmentally-friendly support infrastructure.
In addition, PDZ who already has its shipping routes and foreign presence in regional ports, will
engage the respective foreign authorities to identify locations in Singapore, Vietnam, Myanmar and
Thailand (amongst others) to function as logistic spokes to the e-Commerce Logistic Hub in Johor.
Meanwhile, Sanichi, which is a precision engineering company and a property developer, will be
responsible for securing the site and permits with the relevant government agencies, coupled with
design, develop and construction of the entire 234 acres site.
The e-Commerce Logistic Hub alone will account for a portion of the massive 234 acres site together
with technology parks, serviced offices, commercial and residential developments, specific product
storage facilities and bonded warehouses.
In the current environment and for the foreseeable future, there is a trend for a rise in
entrepreneurship through drop shipping and e-Commerce related supply chains with last mile
deliveries, bulk breaking, packaging services, regional storage hubs and specialised storage services
are required to ensure the prompt delivery of product which has been purchased on line.
To this end, an e-Commerce Logistics Hub in Johor, with easy access to Singapore and freight access
to immediate South East Asian key ports where storage silo spokes can be established surrounded
by international airports, makes this economically viable.
PDZ and Sanichi will finalise the complete list of stakeholders, within 90 days from the execution of
this agreement to form an SPV to execute this mega project.