Mydin Moves Toward Smarter Retail: RM447 Million Automated Distribution Centre Set to Reduce Foreign Worker Dependency

Mydin Moves Toward Smarter Retail: RM447 Million Automated Distribution Centre Set to Reduce Foreign Worker Dependency

Business

Mydin Mohamed Holdings Bhd is stepping boldly into the future with the launch of its upcoming automated national distribution centre (MDC) in Elmina, Selangor — a move expected to significantly reduce its reliance on foreign workers while boosting speed, accuracy, and operational strength.

Managing director Datuk Ameer Ali Mydin shared that the state-of-the-art facility will run with 70 per cent automation, requiring only 132 employees, a sharp contrast to the 350 workers currently needed at its Shah Alam distribution centre.

He explained that the existing Shah Alam centre, which relies heavily on foreign labour, processes 1,800 pallets per day. The new MDC, equipped with the cutting-edge Automated Storage and Retrieval System (ASRS), will handle an impressive 10,200 pallets daily — more than five times the current output.

“With ASRS, we’re not just reducing dependency on foreign workers,” Ameer Ali said during the Elmina MDC Groundbreaking Ceremony. “We’re also shifting manpower toward higher-value roles and elevating overall efficiency.”

The RM447 million investment covers 7.6 hectares and is being developed in partnership with Sime Darby Property Bhd. Construction is expected to be completed by the third quarter of 2027, paving the way for the MDC to support Mydin’s expansion to over 110 outlets nationwide.

Sime Darby Property group managing director Datuk Seri Azmir Merican highlighted that the project aligns with Malaysia’s broader mission to strengthen logistics, digitalisation, and supply chain resilience. He noted that the new centre will improve productivity with a 240 per cent increase in throughput, a 36 per cent rise in pallet storage efficiency, and over 50 per cent reduction in manual labour needs.

At its core, this development is more than a business upgrade — it’s a signal that Malaysian companies are ready to innovate, evolve, and invest in systems that empower people, create long-term opportunities, and keep the nation moving forward.

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