CSSB to develop IKEA’s 3rd-largest global distribution centre in Pulau Indah

A significant portion of Pulau Indah Industrial Park to be developed into the new IKEA Regional Distribution Centre


IKEA’s new regional distribution and supply chain centre will be set up at Pulau Indah Industrial Park, Selangor, following an agreement between Central Spectrum (M) Sdn Bhd (CSSB), a member of Menteri Besar Inc (MBI), and IKEA Supply (M) Sdn Bhd last week.

Both parties agreed to develop a significant portion of Pulau Indah Industrial Park to be the new IKEA Regional Distribution Centre with a total development value of RM908 million.

The signing of the agreement in Basel, Switzerland, was witnessed by Selangor Mentri Besar Datuk Seri Mohamed Azmin Ali, and attended by investors and business associates, as well as state government agencies including Invest Selangor Bhd.

“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 third-largest Regional Distribution Centre of IKEA group globally,” Invest Selangor, the state government’s investment promotion agency, said in a statement.

“Providing excellent connectivity was one of the key factors for IKEA’s decision. With Westport literally next door and Malaysia’s Kuala Lumpur Internat ional Airport merely 45 minutes away, IKEA’s new distribution centre will reach out and supply markets such as Singapore, Thailand, Indonesia, Vietnam, Philippines and India,” it added.

The centre is expected to create nearly 500 job opportunities for the local community and attract probably the most recognised furniture brand globally to expand in Selangor.

Moreover, Invest Selangor stated that 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.