THE Penang Development Corporation (PDC) today signed a Memorandum of Understanding (MoU) with a Chinese logistics company, called Cainiao Smart Logistics Network Limited, for the development of a distribution park in Batu Maung.
Chief Minister Chow Kon Yeow, who witnessed the signing ceremony, said when the distribution park materialises, it would encompass a regional e-commerce and logistics hub next to the Penang International Airport.
“I understand the plan for the hub is to serve the e-commerce small and medium-sized enterprises (SMEs) for business-to-consumer (B2C) and business-to-business (B2B) merchandises, as well as to cater to the demand for warehousing and distribution by air cargo operators.
“This MoU will enable both parties (PDC and Cainiao) to conduct viability and feasibility studies on the development of the park, including the proposed components.
“The outcomes of the studies are expected to be obtained between six months and a year,” Chow said in his speech during the MoU signing ceremony at PDC in Bayan Lepas today.
An affiliate of Alibaba Group Holding Limited, Cainiao has earmarked about 30 acres of land close to the Batu Maung Air Cargo Complex for the planned project.
“It is about 3.1km from the Sultan Abdul Halim Muadzam Shah Bridge (Penang Second Bridge),” he added.
He added that the plan for a distribution park in Penang was undeniably timely and relevant, considering the state’s prime location and demand for industries and export-oriented businesses.
“This was proven when despite being hit by the Covid-19 pandemic, Penang recorded its all-time highest manufacturing investment of RM76.2. billion in 2021.
“This led the state to lead the entire nation’s exports with a 33.9% share at RM42 billion in December 2021, as well as the nation’s total trade with RM64.3 billion,” Chow said.
He then congratulated PDC and Cainiao on this new partnership to help create additional opportunities for the e-commerce and logistics hubs to serve e-commerce SMEs, while also meeting the current and future needs of the Penang economy.
Meanwhile, PDC chief executive officer Aziz Bakar expressed hopes that through this partnership with a gigantic logistics company like Cainiao, PDC will be able to accelerate its success, particularly in logistics.
Among those present during the ceremony were Deputy Chief Minister I Datuk Ahmad Zakiyuddin Abdul Rahman, Deputy Chief Minister II Prof Dr P. Ramasamy, state Entrepreneurial Development, Trade and Industry Committee chairman Datuk Abdul Halim Hussain, State Financial Officer Datuk Dr Mohamad Farazi Johari and Cainiao Aeropolis eWTP Hub Malaysia chief executive officer Tim Fan.
Story by Kevin Vimal
Pix by Ahmad Adil Muhamad
Video by Alissala Thian