Mydin to cut foreign worker dependency with high-automation RM447mil distribution centre

KUALA LUMPUR: Mydin Mohamed Holdings Bhd expects to reduce its dependency on foreign workers with the development of its new automated national distribution centre (MDC) in Elmina, Selangor.

Managing director Datuk Ameer Ali Mydin said the new facility, which will operate with 70 per cent automation, requires only 132 employees compared to its current Shah Alam distribution centre, which employs 350 workers.

“Our current distribution centre in Shah Alam, operated by primarily foreign workers, handles a capacity of 1,800 pallets per day (90 pallets per hour), with an inbound of 900 and an outbound of 900.

“With the new MDC, we expect to significantly reduce our dependency on foreign workers, as the facility will be operated entirely by 132 employees, largely due to the implementation of the Automated Storage and Retrieval System (ASRS),” he said in his speech at Mydin’s Elmina MDC Groundbreaking Ceremony here today.

He said that the ASRS will enable manpower to be redirected to higher-value functions while improving operational efficiency.

Ameer Ali added that the facility will be able to handle 10,200 pallets per day, a substantial increase from 1,800 pallets at the existing centre.

The RM447 million MDC, spanning 7.6 hectares and developed in collaboration with Sime Darby Property Bhd, is scheduled for completion by the third quarter of 2027.

“This MDC will serve as the national distribution centre for Mydin branches nationwide, supporting our expansion to more than 110 outlets by its completion,” he said.

Meanwhile, Sime Darby Property group managing director Datuk Seri Azmir Merican said the project represents a major step in strengthening Malaysia’s supply chain and logistics capabilities, in line with the nation’s push for automation and digitalisation.

He said the new facility will deliver significant productivity gains, including a 240 per cent increase in throughput capacity, a 36 per cent rise in pallet storage efficiency, and more than a 50 per cent reduction in manual labour dependency.