Alibaba tipped to launch regional distribution hub in Malaysia

In a bid to cater to the fast flourishing e-commerce business in the region,  Chinese e-commerce giant Alibaba, is rumoured to be setting up a regional distribution hub in Malaysia. This is according to sources close to Reuters.

The distribution hub which would be located KLIA Aeropolis is expected to generate more than US$1.58 billion worth of domestic and foreign investments. A+M has reached out to Alibaba and MAHB for a statement.

According to the Reuters article, Jack Ma, founder of Alibaba and Najib Razak, PM of Malaysia, are expected to announce the plans next week and KLIA already has an “existing facility” for the Alibaba. Now, the group wants to expand in the future to establish a stronger distribution service.

This news comes at a time when MAHB has sets its eyes on e-commerce facilities at Kuala Lumpur International Airport (KLIA).

Earlier last week, Badlisham Ghazali,managing director, MAHB said with e-commerce thriving in different parts of the world, consumers are largely inclined to shop online. Ghazali further added that MAHB will be inviting more e-commerce players to set up base in Malaysia to enable KLIA to achieve “strong growth.”

Senior general manager of commercial services at MAHB, Mohammad Nazli Abdul Aziz also added that, “Airports are often the first and last destination for visitors and Malaysians coming in and leaving the country.  As the gatekeeper of these key entry and exit points, Malaysia Airports is well positioned to champion all-things Malaysia.”

E-commerce in Malaysia has been on a rampant growth phase. In a 2015 report by Adobe, Malaysia is seeing consistent and steady growth in digital ad spending, with the segment seeing a 20% growth since 2014.