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Signing of Landmark Agreement Between Central Spectrum (M) Sdn Bhd and Ikea Supply (Malaysia) Sdn Bhd
Published:  Aug 30, 2017 11:35 AM
Updated: 3:41 AM

Central Spectrum (M) Sdn Bhd (CSSB) a member of Menteri Besar Incorporation (MBI) and IKEA Supply (Malaysia) Sdn Bhd today signed an agreement to develop a significant portion of Pulau Indah Industrial Park, Selangor facilitated by Invest Selangor, the state government’s investment promotion agency. The new IKEA Regional Distribution Center with a total development value of close to RM 1 Billion will create nearly 500 job opportunities for the local community and attract probably the most recognised furniture brand globally to expand in Selangor.

The signing of the agreement was witnessed by the Right Honourable Dato’ Menteri Besar (Chief Minister of Selangor) Y.A.B Dato’ Seri Mohamed Azmin Ali and attended by investors and business associates as well as state government agencies such as Invest Selangor in Basel, Switzerland.

With the professional facilitation and coordination of Invest Selangor, IKEA and CSSB were able to accelerate the agreement and are now looking into the furniture brand’s further expansion within Selangor. Before considering Pulau Indah, IKEA had certainly identified a few other locations for their planned investment, which included Johor and Penang. The process took almost a year before they decided to locate their Asia Pacific Region distribution center in Pulau Indah due to its strategic location, the park’s facilities and amenities as well as strong Selangor State Government support.

Looking back at IKEA’s history, Malaysia and in particular Selangor has always been a key market. The first IKEA Malaysia store opened in 1Utama Shopping Centre, before it moved to its own facility at Mutiara Damansara in 2003. At that time, IKEA Malaysia at Mutiara Damansara was the largest IKEA Store in Asia. In line with this history and further expansion opportunities, CSSB has also offered additional areas for potential weekend stores, while the state government is mulling a plan to involve IKEA as a strategic partner for Selangor’s affordable home programme. The extensive opportunities and collaborations would further enhance the positive relations between IKEA and Selangor as well as strengthening the presence of the brand in the state.

The new IKEA Regional Distribution Centre, which will adopt the structure and technology of IKEA’s biggest Regional Distribution Centre in Germany, will also be the 3rd largest Regional Distribution Centre of IKEA group globally. Since this will involve substantial applications of ICT systems and technology integration, the centre also symbolises Selangor’s recent move to adopt Industry 4.0 to transform the state’s economy.

Providing excellent connectivity was one of the key factors for IKEA’s decision. With Westport literally next door and Malaysia’s Kuala Lumpur International Airport (KLIA) merely 45 minutes away, IKEA’s new distribution centre will reach out and supply markets such as Singapore, Thailand, Indonesia, Vietnam, Philippines and India. Having Selangor’s aspiration of being the Gateway to ASEAN and positioning the state as a global trading hub in mind, IKEA’s project can be seen as a milestone achievement for the state government and Invest Selangor.

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