State is keen on bringing more investments into the country by being an investment hub for Asean

By ALIFAH ZAINUDDIN / Pic By ISMAIL CHE RUS

SELANGOR is expecting five more European companies to invest in the state apart from the Swedish furniture retailer IKEA’s multimillion dollar distribution hub in Pulau Indah recently.

Invest Selangor Bhd CEO Datuk Hasan Azhari Idris said the company had recently engaged with companies from Sweden, the Netherlands and Switzerland, which are committed to expanding their operations in Selangor.

“We had a meeting with a few companies in Europe last week. One from Sweden, two
from Switzerland and three from the Netherlands. But at the moment, we can only announce IKEA because the agreement has been signed,” Hasan Azhari told reporters on the sidelines of the Selangor International Business Summit 2017 in Setia Alam yesterday.

He declined to disclose the details of the remaining five companies, and only hinted that the companies were involved in the manufacturing and logistics sectors.

The world’s largest furniture retailer IKEA announced last month that it would invest RM908 million in the country to establish its regional distribution and supply chain centre to serve the Asean region.

Located in Pulau Indah, the furniture distribution hub will be the third-largest after IKEA Chicago in the US and IKEA Dusseldorf in Germany. The centre is expected to manage an inventory of 9,500 stock-keeping units valued at RM6.6 billion annually.

The Malaysian Investment Development Authority confirmed in a statement that the upcoming centre will serve 12 retail stores within Asean and this is set to increase to 20 by 2026.

Meanwhile, Hasan Azhari said the state investment agency is targeting RM6.5 billion worth of investments in the manufacturing sector alone this year.

Invest Selangor secured RM7.8 billion in investments in the segment last year, surpassing its RM6 billion target. However, it was slightly lower compared to the RM7.9 billion recorded in 2015.

“Based on the meetings we’ve had with various companies and investors overseas, we are optimistic that this year’s target will be achieved.

“Our programmes abroad have also attracted many international companies who are now familiar with Selangor. We expect greater investment numbers in the years ahead,” Hasan Azhari said.

As Malaysia’s largest economy by state, Selangor is keen on bringing more investments into the country by being an investment hub for the Asean market.

The state boasts two international airports, with Port Klang being among the top 15 ports in the world, giving it an unique edge over other nations in the region.

“Selangor is ideal for companies looking to penetrate the regional market as it provides a lot of opportunities for businesses and investors, as well as those offering their products and services to the Asean market,” said Selangor state senior executive councillor Datuk Teng Chang Khim.

The state of Selangor will play host to the Selangor International Business Summit 2017, scheduled from Sept 7-17 at the Setia City Convention Centre in Shah Alam.

The 10-day event comprises three components, namely the Selangor Smart City and Future Commerce Convention, Selangor Asean Business Conference and Selangor International Expo.