Alibaba to set up regional logistics hub in Malaysia

Alibaba Group Holding Ltd said on Wednesday it would set up a logistics hub in Malaysia, the latest in a string of Chinese investments including in infrastructure and real estate projects, underscoring the close ties between the two countries.

The hub will be part of a digital free trade zone that was launched by Malaysian Prime Minister Najib Razak and Alibaba's founder and executive chairman Jack Ma in Kuala Lumpur on Wednesday.

The hub, expected to be launched end-2019, "will function as a centralized customs clearance, warehousing and fulfilment facility for Malaysia and the region, to deliver faster clearance for imports and exports," Alibaba said in a statement.

Alibaba did not disclose the size of its investment in the hub.

Alibaba said the logistics facility was part of an "e-hub" it was setting up at the free trade zone, part of Ma's Electronic World Trade Platform (eWTP) initiative that aims to remove barriers to trade for smaller firms and emerging nations.

The "e-hub" in Malaysia will be the first such facility outside China, and will also include collaboration between Alibaba affiliates and other Malaysian businesses.