SCGJWD Logistics Public Company Limited (SJWD) is determined to pursue the strategic plan to expand the cold storage warehouse business in the ASEAN region in bid to interconnect logistics and supply chain services, first through the expansion of investment in Malaysia by collaborating with SWIFT, the current partner in Malaysia. The partners are now set to establish a joint venture company with the strategy to aggressively expand cold storage warehouse services with the aim to become the leading cold storage warehouse service provider in Malaysia.

Mr. Bunn Kasemsup, Co-Chief Executive Officer of SCGJWD Logistics Public Company Limited (SJWD), the largest integrated logistics and supply chain service provider in the ASEAN, revealed that the Company is initiating a strategic plan to aggressively expand the cold storage warehouse business in the region to interconnect logistics and supply chain services in ASEAN. Currently, the Company has business bases in Thailand, Cambodia, Indonesia, Vietnam, and the Philippines, while getting ready to move forward aggressively to expand the cold storage warehouse business in Malaysia – a country with high growth potential.

Following SJWD’s 20.48percent investment in 2024 in Swift Haulage Berhad (SWIFT), an integrated logistics business service provider listed on the Stock Exchange of Malaysia, the Company is currently collaborating with SWIFT to establish a joint venture company in Malaysia under the name “Swift Cold Chain Sendirian Berhad” with a registered capital of 14.4 million Malaysian ringgit (approximately 110 million baht), of which SJWD will hold 49 percent of the shares through investment by JWD Asia Holding Private Limited (JWDAH), a subsidiary of SJWD, while SWIFT will hold 51 percent of the shares in this new company. The establishment of this joint venture is expected to be completed within January 2025, after which the two parent companies will together invest in the cold storage warehouse business in Malaysia to target local entrepreneurs as well as entrepreneurs in Thailand who want to export their products or to conduct businesses in Malaysia. The businesses may encompass food industries, pharmaceutical and medical supply industries, electronic device industries, etc. Significantly, the establishment of this joint venture will enhance SJWD’s potential to better interconnect the transportation of diverse products from China through Thailand, Malaysia and Singapore.

Mr. Charvanin Bunditkitsada, Co-Chief Executive Officer of SJWD, said that currently, there is a plan to invest in three cold storage warehouse projects in Malaysia with a combined floor area of over 30,000 square meters with the first project set to be developed immediately after the joint venture process is finalized under the name “GVL Cold Chain” project covering a floor area of approximately 11,000 square meters, capable of storing approximately 10,000 pallets of goods. This first project is located in Shah Alam International Logistics Hub in central Malaysia, approximately 30 kilometers from Kuala Lumpur and approximately 16 kilometers from Port Klang. The investment budget is estimated at more than 287 million baht and the operation is expected to commence in January 2026 with a projected 90 percent occupancy rate within 2-3 years.

The second project is in the planning process with the aim to invest in the construction of a cold storage warehouse with a floor area of approximately 10,000 square meters with a capacity of approximately 10,000 pallets of goods. This project will be located in Johor Bahru in the south of peninsula Malaysia bordering Singapore. Construction is expected to start in the first half of 2025. The third project is in the investment planning stage and is anticipated to have a floor area of approximately 10,000 square meters.

“With this plan to expand investment in cold storage warehouses in Malaysia, the Company will become a leading service provider for this type of operation in Malaysia. SJWD will utilize its experience and expertise in cold storage warehousing in Thailand, together with SWIFT, to expand the business in the bid to become a leading operator in the industry in Malaysia,” Mr. Charvanin said.

Mr Loo Yong Hui, Group CEO of Swift Haulage Berhad (SWIFT), said that the Company is pleased to become a strategic partnership of SJWD, a leading integrated logistics and supply chain service provider in the ASEAN region. This joint venture marks an important step for SWIFT to enter into the cold storage industry, a high-potential and fast-growing business. By combining SJWD’s expertise with SWIFT’s asset expansion strategy, the joint venture will be able to efficiently meet the increasing demand for cold storage services in Malaysia and Singapore. The Company’s partnership with SJWD not only drives business growth overall, but also demonstrates the Company’s commitment to innovation, including the adoption of advanced automatic cold storage technology to instantaneously enter this highly specialized industry and strengthen SWIFT’s position. Moreover, the joint venture will help to increase the service capability of SJWD to retain its position as ASEAN’s largest logistics and supply chain service provider in terms of integrated cargo transportation, innovation and sustainable solutions for the region.

The Company sees this joint venture as an opportunity to enhance the efficiency of its assets in Tebrau and Shah Alam, both of which are prime locations for distribution of cold storage products both domestically and internationally. The Tebrau project will cater to the high demand from the Singaporean market, leveraging its cost advantage, while the Shah Alam project will efficiently cater to the demand from the surrounding urban areas. The Company has put in place the strategy utilised its assets along with the capabilities of SJWD to achieve its goal of setting a new standard for cold storage business in Malaysia and Singapore, Mr. Loo Yong Hui added.