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Meet Asia’s Global & Regional Hubs
Hub structures of today are gradually morphing towards a more integrated model where the need for transparency is evident in order for companies to have greater visibility over their entire supply chain networks so as to operate with increased efficiency.
Many companies that have established themselves in Malaysia have since scaled the value chain, moving from initially only supporting their regional operations to developing higher value business activities such as strategic services, from research, design and development, supply chain management and business planning right to the consolidation of their shared services functions.
This is in line with the Twelfth Malaysia Plan (12MP) which aims to realise the nation’s aspiration to become a knowledge-based economy by enticing more companies to provide higher value-added services and converge here, making Malaysia as their Global Services Hub by 2025.
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To maintain Malaysia’s competitiveness as a preferred location in the region for MNCs to set up their Global Services Hub, the Malaysian Government through Budget 2024 introduced the Global Services Hub (GS-Hub) Scheme which is an extension of the Principal Hub Incentive Scheme that was introduced way back in May 2015.
A GS-Hub is a control tower that uses Malaysia as a base for conducting its regional or global businesses by exploring expansion opportunities into new high value–added services such as manage, control, and support its key functions including management of risks, decision making and strategic business activities from Malaysia to support their network in the region.
Today more and more conventional hubs are adopting digital solutions and advanced technologies by converging into ‘Digital Tech Hubs, Smart Innovative Hubs or ‘Centres of Excellences for Digital Solutions’ in Malaysia.
Hubs that apply digital advances such as RPA and AI, which make new types of automated activities possible, thus eliminating a large portion of the work that these business units perform by simplifying fast work processes, utilising robust tools and technology, adopting flexibility and collaboration, which will allow the new generation of talent to be able to work anywhere.
The combination of new digital Industry 4.0–style platforms, robotics, intelligent machines, and advanced analytics is allowing MNCs to harness the explosion of data and to fundamentally alter how and where work gets done.
Malaysia’s value proposition in the heart of Southeast Asia puts the country in a viable position to play the role of host for MNCs to house their digital headquarters in this part of the region.
Malaysia’s geographic location is the centre of gravity for IKEA’s retail growth in the SEA region, IN and AU. With the advantage of 2 deep sea ports and supportive government authorities, Malaysia created pre-conditions for the success of our wholesale business, including the Regional Distribution Centre operations. We arrived at the decision of Malaysia after a year of evaluation, which started in 2017. Our evaluation also showed that existing and planned infrastructure development with availability of talents are further success factors for our Wholesale establishment in Malaysia. Regional Distribution Centre Port Klang is 92,000m2 in size equipped with the latest fully automated high bay storage, electric mono-loop system and other high-tech solutions. The building is sustainably designed to meet LEED Gold standards with initiatives like full LED light illumination, rainwater harvesting and EV chargers.
