Malaysia’s First Fully Automated Distribution Centre Breaks Ground in the City of Elmina, Marking a New Era for Logistics and Industrial Development
Malaysia’s logistics and industrial property landscape has reached a defining milestone with the groundbreaking of the nation’s first fully automated distribution centre (MDC), developed through a strategic collaboration between Sime Darby Property Bhd and Mydin Mohamed Holdings Bhd (Mydin). Located in the rapidly growing City of Elmina in Selangor, this RM450 million next-generation facility will introduce cutting-edge automation technologies that promise to transform retail distribution standards nationwide.
The development spans nearly 19 acres, reflecting the scale and ambition of Mydin’s long-term logistics modernisation strategy. As businesses across Malaysia accelerate digitalisation, the centre signals a new era in supply chain efficiency, food security, and high-tech industrial ecosystems—benefiting not only Selangor but also the greater Klang Valley and the broader Malaysian economy.
A Strategic Leap for Malaysia’s National Supply Chain Security
Officiating the groundbreaking, Selangor Menteri Besar Datuk Seri Amirudin Shari highlighted the centre’s strategic significance, describing it as a “vital addition to Malaysia’s national supply chain security.” As global food distribution chains face increasing pressure, the facility’s advanced technologies will help reduce food wastage, lower logistics costs and accelerate the delivery of essential goods to Malaysian households.
Through automation, robotics, real-time data analytics and high-precision storage systems, the MDC will uplift Malaysia’s logistics resilience—allowing retail supply chains to operate more efficiently, sustainably and competitively.
Amirudin emphasised:
“The MDC is more than just a building. It represents an injection of innovation and growth into Selangor’s economic landscape.”
Automation to Reduce Workforce Burden and Increase Throughput
The extensive use of Automated Storage and Retrieval Systems (ASRS) will be at the core of the centre’s efficiency. Mydin’s current Shah Alam distribution hub, with nearly 350 employees, handles about 1,800 pallets per day. In contrast, the new MDC—run by just 132 employees thanks to automation—will be capable of processing 10,200 pallets daily.
This represents:
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A 466% increase in daily handling capacity
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A major reduction in manual labour requirements
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Improved accuracy, speed and operational consistency
The results allow workers to transition into more skilled, higher-value roles in the logistics and technology sectors—aligning with Selangor’s push for high-income job creation.
A Built-to-Suit-to-Lease Partnership with Long-Term Impact
Sime Darby Property’s Group Managing Director, Datuk Seri Azmir Merican, described the MDC as part of an “ecosystem builder” approach rather than a traditional developer-tenant arrangement. The facility will be developed under the company’s built-to-suit-to-lease model, catering specifically to Mydin’s long-term operational and expansion needs.
Designed for optimal efficiency, the MDC is expected to deliver:
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240% increase in throughput capacity
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36% improvement in pallet storage efficiency
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Over 50% reduction in manual labour dependency
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Significant cost and energy savings
Azmir emphasised that the project goes beyond infrastructure:
“It is about people, talent and economic growth. This centre integrates cutting-edge automation with an industrial ecosystem designed to support future-ready enterprises.”
Elmina’s Rise as a High-Tech Logistics and Industrial Hub
Located along the Guthrie Corridor, the City of Elmina offers exceptional connectivity to five major highways, linking it seamlessly to the Klang Valley, Port Klang, and northern Peninsular Malaysia. This strategic positioning enhances its viability as a logistics gateway for the country and ASEAN.
The MDC serves as a major catalyst in transforming Elmina into a premier industrial ecosystem—one capable of attracting multinational corporations, high-value manufacturing and digital commerce distribution networks.
This evolution mirrors global city trends, where integrated logistics hubs are becoming increasingly critical to urban supply chains, e-commerce growth and industrial diversification.
Alignment with Selangor’s Industrial Vision and Economic Transformation
The MDC aligns with Selangor’s long-term industrial blueprints, including the First Selangor Plan (RS-1) and Second Selangor Plan (RS-2). Both policies emphasise:
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Digitalisation of industrial processes
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High-tech automation
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Investment-friendly regulatory ecosystems
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Upskilling and talent development
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Productivity-driven economic expansion
Amirudin noted that projects like the MDC support the creation of high-skilled jobs in automation, warehousing technology, robotics maintenance and data-driven operations. They also stimulate opportunities for local SMEs through supplier networks, logistics partnerships and ancillary services.
A Boost for Greater KL’s Industrial and Property Market
The significance of this development extends beyond logistics. For the broader KL property and industrial real estate market, the MDC reinforces several key trends:
1. Rising demand for high-tech industrial spaces
As more companies digitalise supply chains, demand for automated, built-to-spec facilities is accelerating.
2. Strengthening Selangor’s position as Malaysia’s industrial capital
With advanced hubs like Elmina, Selangor continues to dominate the national industrial property landscape.
3. Growth of logistics-focused investment clusters
Nearby residential and commercial developments benefit from increased employment, business activity and regional growth.
4. Higher property value prospects in Elmina and Guthrie Corridor
Large-scale industrial ecosystems often drive long-term appreciation and stimulate surrounding mixed-use developments.
Elmina’s transformation from a well-planned township into a multi-sector industrial and logistics powerhouse enhances its attractiveness within Greater KL.
Completion Scheduled for Q3 2027: A Catalyst for Regional Growth
The MDC is slated for completion in Q3 2027, positioning the City of Elmina as an advanced logistics nucleus capable of driving regional economic expansion. Beyond operational efficiencies, the centre is expected to:
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Strengthen Malaysia’s supply chain resilience
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Support national food security
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Reduce distribution costs
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Enhance retail competitiveness
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Create high-skilled job opportunities
In Amirudin’s words:
“This groundbreaking is not just about moving soil—it is about planting the seeds of a competitive, technology-driven and prosperous future for Selangor.”
Conclusion: A Landmark for Malaysia’s Logistics Future
The partnership between Sime Darby Property and Mydin marks a landmark moment in Malaysia’s industrial evolution. As automation reshapes global supply chains, the MDC positions Selangor—and Greater Kuala Lumpur—at the forefront of Southeast Asia’s logistics transformation.
For investors tracking high-growth industrial corridors, the rise of Elmina presents compelling opportunities across logistics, warehousing and KL property sectors. Explore more insights and high-potential developments at klproperty.cc, your trusted guide to Malaysia’s evolving real estate landscape.
