The KLIA Aeropolis, the air logistics hub which is incorporated into the Digital Free Trade Zone (DFTZ), is expected to receive an additional investment of RM700 million once it is fully operational.

Malaysia Airports Holdings Bhd (MAHB) Managing Director Datuk Mohd Badlisham Ghazali said with the establishment of the hub, air cargo volume would increase starting the third quarter of 2020.

"More investments will come in from local and international customers using KLIA Aeropolis to transport their goods, hence making Malaysia their logistics hub," he told a press conference here today.

Badlisham added that with the KLIA Aeropolis, MAHB has targeted to move over 3.5 million tonnes of goods by 2020 instead of only 150,000 some years ago.

The first phase of KLIA Aeropolis, the first electronic world trade platform (eWTP) outside China, spanning over 60 acres (24.3 hectares) will developed by Cainiao Smart Logistics Network (Hong Kong Ltd) at the cost of over RM200 million.

MAHB, through its wholly-owned subsidiary, MA eLogistics Sdn Bhd, will be owning 30 per cent of the stake, while Cainiao the remaining equity through a joint-venture company, Cainiao KLIA Aeropolis Sdn Bhd.

Some parts of the KLIA Aeropolis will be using the facility of the Low-Cost Carrier Terminal (LCCT), hence turning it into a regional e-hub for Alibaba.

The KLIA Aeropolis, which will be built on a 404.7-hectre site surrounding KLIA, was launched last year and is expected to attract about RM7 billion in foreign and domestic investments.

Meanwhile, Malaysia Digital Economy Corporation Chief Executive Officer (CEO) Datuk Yasmin Mahmood said that with the DFTZ, small and medium enterprises (SMEs) could now be internationalised and be part of the global market chain.

"With the products to be sold 24/7 worldwide, it will not only boost their income but also encourage others to go online as well," she said.

The initial target for phase one of the DFTZ was first set at 1,500 SMEs but the number exceeded the target and rose to 1,972, reflecting tremendous interest from SMEs to go global.

On the other hand, POS Malaysia Bhd Group, which is among the contributors of the DFTZ, said that they had been collaborating with Lazada a few months ago to operate an eFulfillment hub.

"Currently, we are providing warehouse services to them (Lazada) and now, we are expanding to the Machine to Machine services," its CEO, Datuk Mohd Shukrie Salleh said.

POS Malaysia has invested about RM60 million to upgrade and renovate the Kuala Lumpur Air Cargo Terminal 1 building which was part of LCCT.

The investment will include upgrade in facilities such as information and communication technology, infrastructure, close-circuit television and security services, and operational equipment.

-- BERNAMA