Mercedes-Benz AG Chooses Malaysia as Their Regional Parts Logistics Centre for APAC

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Display of Mercedes-Benz vehicles at the Cycle & Carriage Johor Bahru showroom (image for illustrations)

Mercedes-Benz AG, one of the world’s largest manufacturers of luxury passenger cars has decided to make Malaysia their Regional Parts Logistics Centre for APAC to manage and distribute an assortment of replacement spare parts and accessories, serving 22 countries.

The company’s new facility in Malaysia will feature a storage capacity of one (1) million square feet and equipped with advanced storage and materials-handling systems to better serve its regional supply chain network.

This move was discussed during the Trade and Investment Mission (TIM) to Germany, led by Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI), on 14th October 2021.

Dato’ Seri Mohamed Azmin Ali remarked, “Mercedes-Benz AG’s decision in choosing Malaysia as their regional parts logistics centre for APAC not only signals the company’s continual pursuit for growth but also is an embodiment of the company’s confidence in Malaysia’s conducive ecosystem and our strength to support their long- term growth. It also acknowledges the capability of our local talent of highly skilled engineers, technicians and as the key global supply chain and distribution hub in the region. In line with the Twelfth Malaysia Plan (12MP), the Government will continue to enhance our ease of doing business, logistics and ports networks as well as promote strategic collaboration and industry linkages to increase Malaysia’s competitiveness in the region.”

Mercedes-Benz joins the increasing trend of the establishment of global and regional distribution hubs in Malaysia by companies in industries such as automotive, life sciences and medical devices, electrical and electronics (E&E) as well as machinery and equipment (M&E). These companies seek to tap on Malaysia’s strategic location, talent availability as well as our efficient and reliable logistics network and infrastructures such as ports, airports and financial institutions, allowing them to improve operational efficiency as well as optimise quality and speed for their products and services for their customers.

Arham Abdul Rahman, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA) welcomed Mercedes-Benz AG’s decision to make Malaysia their Regional Parts Logistics Centre for APAC, saying, “The Government acknowledges the positive spill-overs of quality investments to the development of Malaysia’s business ecosystem. As such, MIDA has been consistent in its efforts to scout and attract quality investments from around the world. This latest investment by Mercedes-Benz AG will assume a critical role to further strengthen the linkages within our local industry, create high-value jobs for Malaysians and enhance our country’s positioning as a global supply chain and distribution hub.