Smart Logistics Complex (SLC) Incentive: A Game-Changer for Malaysia’s Logistics Industry

The global logistics sector is the backbone of trade and commerce, ensuring the seamless movement of goods across borders. As demand for rapid and efficient delivery surges – driven by the expansion of e-commerce, customer expectations, and environmental concerns, the industry is undergoing a profound transformation.

To stay ahead, businesses are turning to smart warehouses that leverage cutting-edge technology to automate operations and optimise inventory management. These innovations not only boost efficiency and cost reductions but also enable companies to keep pace with shifting consumer demands. Recognising the critical role of smart logistics in economic growth and national competitiveness, the Malaysian Government has introduced the Smart Logistics Complex (SLC) incentive under the 2025 National Budget.

The introduction of the SLC incentive marks a major milestone in Malaysia’s efforts to establish itself as a leading regional logistics hub. By integrating advanced technologies and sustainable practices, SLCs are set to transform the logistics landscape, stimulate economic growth, and generate high-value job opportunities. As the nation’s principal investment promotion agency in driving this initiative, MIDA remains committed to support investors and facilitating the development of world-class logistics infrastructure in Malaysia. This initiative, in line with the Twelfth Malaysia Plan (12MP), National Investment Aspirations (NIA), New Industrial Master Plan (NIMP) 2030 and National E-Commerce Strategic Roadmap (NESR) 2.0; strives to attract high-value investments by prioritising digitalisation and innovation as well as strengthening logistics infrastructure to support e-commerce growth.

In support of the Government’s Industry4WRD initiative, with the aspiration to transform Malaysia’s manufacturing sector and related services into a high-technology, high-value-added economy, qualifying smart warehouse facilities under the SLC incentive must adopt at least three (3) Industry 4.0 technology elements. These include:

• Big data analytics
• Cloud computing
• Augmented Reality
• Artificial intelligence
• Cybersecurity
• Internet-of-Things (IoT)
• Autonomous robotics
• Additive manufacturing
• System integration and simulation
• Advanced materials

Furthermore, to align with Malaysia’s aspiration to become a sustainable and carbon-neutral nation by 2050, smart warehouse complexes must integrate at least one (1) green technology which includes utilising renewable energy sources such as solar, biomass, biogas, mini hydro, installing rainwater harvesting systems, and adopting Green Building initiatives to support sustainability efforts.

Beyond improving logistics efficiency, the SLC incentive will also stimulate local economic growth. To achieve this, companies must comply with specific requirements, including:

• Creating high-value job opportunities for Malaysians
• Providing internship and training programs for local talent
• Engaging local contractors for construction and development
• Utilising Malaysian seaports and airports for logistics operations
• Forming partnerships with local logistics firm

These measures will strengthen Malaysia’s trade competitiveness while fostering a resilient and future-ready logistics ecosystem. As a result, Malaysia is poised to become a preferred gateway for regional and global trade, generating higher revenue from transport, warehousing and supply chain management services.

Eligible companies are encouraged to submit their applications to MIDA until 31^st December 2027. For more information, visit www.mida.gov.my or contact the Oil and Gas, Maritime and Logistics Services Division, MIDA at https://www.mida.gov.my/staffdirectory/oil-and-gas-maritime-and-logistics-services-division/.