KUALA LUMPUR: Sime Darby Property Bhd and Mydin Mohamed Holdings Bhd (Mydin) today marked a major milestone in Malaysia’s logistics sector with the groundbreaking of the country’s first fully automated distribution centre at the City of Elmina, Selangor.
The RM450 million facility, spanning nearly 19 acres, is expected to transform Mydin’s supply chain capabilities and set a new benchmark for automation in retail distribution.
Selangor Menteri Besar Datuk Seri Amirudin Shari, who officiated the event, highlighted the project’s strategic importance, describing it as a “vital addition to our national supply chain security” and a key step in cementing Selangor’s role as Malaysia’s logistics gateway to Asean. He noted that the centre would reduce food wastage, lower logistics costs and ensure essential goods reach the rakyat faster, supporting the state’s efforts to manage the cost of living.
“The Mydin Distribution Centre (MDC) is more than just a large building, it represents a strategic injection of growth and innovation into Selangor’s economic landscape,” said Amirudin.
“With automation and digitalisation through advanced robotics, aut
omated storage and retrieval systems and real-time data analytics, our homegrown Malaysian corporations are well-positioned to achieve global-level productivity and standards,” he added.
Meanwhile, Mydin managing director Datuk Wira Dr Ameer Ali Mydin said that currently their Shah Alam distribution centre, managed by almost 350 employees, handles 1,800 pallets per day.
With the MDC, managed by just 132 employees, largely due to the Automated Storage and Retrieval System (ASRS), they expect a daily capacity of 10,200 pallets and this will improve efficiency while allowing their workforce to focus on higher-value tasks, he added.
He acknowledged the support of the Selangor government, noting that collaboration with authorities was instrumental in streamlining approvals and facilitating digitalised processes.
“As co-chair of the Special Task Force to Facilitate Business, we aim to make it easier to do business by reducing bureaucracy and promoting efficiency,” he said.
From Sime Darby Property’s perspective, the MDC represents a long-term strategic partnership rather than a conventional developer-tenant relationship.
Group managing director and CEO Datuk Seri Azmir Merican said the facility reflects the company’s role as “an ecosystem builder that supports operational and expansion needs of major enterprises.”
He added that the City of Elmina location provides unparalleled connectivity, with access to five major highways that form a logistics hub for the Klang Valley and beyond.
The facility, developed under Sime Darby Property’s built-to-suit-to-lease model, is designed to deliver a 240% increase in throughput, a 36% boost in pallet storage efficiency, and a more than 50% reduction in manual labour dependency, resulting in significant cost and energy savings.
“The partnership is not just about infrastructure; it is about people, talent, and economic growth,” Azmir said, adding that by leveraging cutting-edge automation and integrating into a high-specification industrial ecosystem, Mydin will continue to serve its customers efficiently while contributing to Malaysia’s broader industrial transformation.
The project aligns with the state’s industrial development blueprints, First Selangor Plan and Second Selangor Plan, which emphasise high-tech industrial ecosystems, digitalisation, and investment-friendly policies.
Amirudin noted that such initiatives support high-skilled job creation in automation management, logistics technology, and data-driven warehouse operations, while stimulating opportunities for local SMEs.
Construction of the MDC is slated for completion in the third quarter of 2027, positioning the City of Elmina as a premier industrial ecosystem and a key engine for regional growth. Beyond its operational benefits, the project is expected to strengthen Malaysia’s national supply chain resilience, enhance food security, and drive broader economic development across Selangor and the Klang Valley.
“This groundbreaking is not merely about moving soil. We are planting the seeds of a highly competitive, technology-driven and prosperous future for all rakyat Selangor,” said Amiruddin.
