IJM to invest RM460m in new logistics hub in City of Elmina, eyes boost in recurring income

• The business will provide IJM Corp with recurring income once operations commence in the first quarter of 2027, said its chief executive officer Datuk Lee Chun Fai.

SHAH ALAM (Feb 12): IJM Corp Bhd (KL:IJM), through its joint-venture (JV) company Exio Logistics Sdn Bhd, will invest RM460 million in a new logistics hub in Sungai Buloh to support Malaysia’s supply chain and e-commerce.

The business will provide IJM Corp with recurring income once operations commence in the first quarter of 2027, said its chief executive officer Datuk Lee Chun Fai. The recurring income will help IJM Corp balance the cyclical nature of its main businesses in construction and property development, he noted.

“Regardless of the economic environment, or the government’s fiscal position, this business will continue to operate,” said Lee. “Our goal is to generate at least a third of our income from recurring sources.”

Lee was speaking to The Edge on the sidelines of the groundbreaking ceremony for Exio’s logistics hub in the City of Elmina. Exio Logistics is a JV between IJM’s wholly owned subsidiary IJM RE Sdn Bhd and FMM Elmina Sdn Bhd.

Spanning 22 acres, the hub will be fully leased to Storio Sdn Bhd, which will operate the facility as its master tenant.

Storio is owned by the shareholders of FMM Elmina: Tan Sri Teo Chiang Hong of Bandar Utama City Corp Sdn Bhd, Datuk Michael Tang of Mettiz Capital Sdn Bhd, and Choong Kar Weng of Minlon Sdn Bhd.

The facility, comprising two logistics hubs with a combined 500,000 square feet of floor space, features an advanced automated storage and retrieval system that could handle 117,000 pallet positions, with a throughput capacity of 240 pallets per hour.

The investment in the logistics hub is in line with IJM’s long-term strategy to diversify into high-growth sectors and capitalise on the increasing demand for modern, technology-driven logistics services, said Lee.

IJM plans to expand further in the logistics sector, but with varied models to avoid internal competition, he said. “For instance, this facility in Elmina is automated, while our other investment in Shah Alam focuses on a conventional cold room warehouse.”

In addition to Exio Logistics, IJM has also invested in Global Vision Logistics Sdn Bhd, developing the six-million-square-foot Shah Alam International Logistics Hub.

Smooth trade flows

Transport Minister Anthony Loke Siew Fook, who officiated the event, highlighted that facilities like Exio’s hub will be instrumental in streamlining trade flows and alleviating supply chain bottlenecks.

The logistics hub boasts connectivity to Port Klang, Kuala Lumpur International Airport, and major transport networks. Exio’s hub will strengthen Malaysia’s role as a logistics gateway in the region, while supporting the expansion of trade routes with Asean partners, he said.

“With the recent Malaysia-Singapore Johor Special Economic Zone (SEZ) announcement, we are seeing increased opportunities for cross-border logistics and investment,” Loke said. “Exio’s logistics hub is an example of how the private sector plays a crucial role in advancing national logistics capabilities.”

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