KUALA LUMPUR - Alibaba Group Holding signed four MOUs with Malaysia on Wednesday (March 22), that includes the establishment of a logistics hub with warehousing facilities in the Malaysian capital.
The agreements would enable Malaysia to have direct link to e-commerce trade in China.
Alibaba Group said the logistics hub - which will be part of a digital free trade zone set to be developed close to the Kuala Lumpur International Airport - will serve as the Chinese e-commerce company's regional distribution hub.
The logistics hub "will function as a centralised customs clearance, warehousing and fulfillment facility for Malaysia and the region, to deliver faster clearance for imports and exports", Alibaba said in a statement.
Malaysian Prime Minister Najib Razak launched the free trade zone along with Jack Ma, founder and executive chairman of Alibaba.
"We have set out plans to progress Malaysia's economy and place it firmly at the centre of the global marketplace. To do this we need to harness the assets that we have and provide the support for individuals and businesses to be competitive in the new digital marketplace," Najib said.
The other memorandums of understanding signed are for the establishment of a one-stop online cross-border trading services platform, cooperation in e-payment and financing, and development of e-talent training that will fit into Malaysia's roadmap of transformation into a digital economy.