Mydin’s new RM447 million distribution centre will use 70% automation, cutting foreign worker dependency and boosting daily capacity to 10,200 pallets
KUALA LUMPUR: Mydin Mohamed Holdings Bhd aims to reduce its reliance on foreign workers through a new highly automated national distribution centre.
Managing director Datuk Ameer Ali Mydin said the RM447 million facility in Elmina, Selangor, will operate with 70% automation.
It will require only 132 employees, compared to 350 workers at its current Shah Alam distribution centre.
“Our current distribution centre in Shah Alam, operated by primarily foreign workers, handles a capacity of 1,800 pallets per day,” he said.
Ameer Ali stated the new centre will be operated entirely by 132 employees due to the Automated Storage and Retrieval System (ASRS).
The ASRS will allow manpower to be redirected to higher-value functions while improving efficiency.
The new centre will handle 10,200 pallets daily, a substantial increase from the current 1,800.
Spanning 7.6 hectares, the facility is being developed with Sime Darby Property Bhd.
It is scheduled for completion by the third quarter of 2027.
“This MDC will serve as the national distribution centre for Mydin branches nationwide,” Ameer Ali added.
It will support the retailer’s expansion to over 110 outlets by the time it opens.
Sime Darby Property group managing director Datuk Seri Azmir Merican said the project strengthens Malaysia’s supply chain.
He said it aligns with the national push for automation and digitalisation.
The facility will deliver a 240% increase in throughput capacity.
It will also achieve a 36% rise in pallet storage efficiency.
Furthermore, it will reduce manual labour dependency by more than 50%. – Bernama
