Sime Darby Property group managing director Datuk Seri Azmir Merican.
KUALA LUMPUR: Sime Darby Property Bhd
(SimeProp) is set to continue diversifying its revenue streams, while creating long-term income for itself through partnerships with other industries.
Group managing director and chief executive officer Datuk Seri Azmir Merican said following its partnership with Mydin Mohamed Holdings Bhd for a fully automated distribution centre, the group is already talking to other parties in various industries for a similar collaboration.
He said this is a strategy for the group that will open up opportunities to work with other industries as well.
The collaboration with Mydin will entail them building the distribution centre in the City of Elmina. The development is not SimeProp’s first rodeo, as it has also built a data centre for Google Inc in the same location prior to this.
The RM450mil development will span across 19 acres, and be backed by a long-term lease of 15 years.
“We will build it and lease it out to Mydin. We believe this model will work across other industries as well.
“Construction will start immediately, and we expect it to be ready by the end of 2027,” he said to reporters on the sidelines of the groundbreaking ceremony here yesterday.
According to Azmir Merican, the centre will be developed under the group’s built-to-suit model, as it continues aiming to build similar centres mainly at its industrial parks for the purpose of leasing.
Mydin managing director Datuk Ameer Ali Mydin said the new centre will serve as the national distribution centre for the company.
“Right now we have 71 branches nationwide and we plan to open 20 new branches every year.
“So by the completion of this centre, we would have more than 110 branches,” he said.
According to Ameer Ali, its current distribution centre in Shah Alam is operated by about 350 employees which are primarily foreign workers.
He said at the moment, they handle a pallet capacity of 1,800 pallets per day – 90 pallets inbound and 90 outbound.
“This facility has been the backbone of our operations, ensuring that our branches across the country are well-stocked and able to serve our customers efficiently.
“Now with the new centre, we expect to significantly reduce our dependency on foreign workers, with the facility being handled entirely by 132 employees,” he said.
Ameer Ali this will be possible because the centre will feature an advanced Automated Storage and Retrieval System that is expected to deliver a 240% increase in throughput capacity, a 36% boost in pallet storage, and a more than 50% reduction in low labour requirements.
He added the centre will be expected to handle a pallet capacity of 10,200 pallets per day – 510 pallets hourly.
“It will operate with 70% automation and 30% manual processes to ensure continuity in case of any disruptions. Local skilled employees will remain on-site to ensure smooth operations, as tasks previously handled by foreign workers will now be managed by our automation,” he noted.
Meanwhile, Selangor Mentri Besar Datuk Seri Amirudin Shari, who was also present at the groundbreaking ceremony of the distribution centre, said Selangor must remain the economic engine of Malaysia as the state has consistently contributed over 25% to the national gross domestic product (GDP).
“In fact, we achieved a record high GDP of RM432.1bil in 2024, which is 6% higher than the previous year’s RM406.1bil.
“This makes Selangor the only state in the country to cross the RM400bil-mark threshold for two years in a row,” he said.
He added the state will expect to hit RM479bil in GDP this year.
