ALOR SETAR, Jan 20 — A memorandum of agreement (MoA) has been inked between KT Express Logistics Sdn Bhd and Invest Kedah Bhd to develop an e-commerce and logistics hub in Bukit Kayu Hitam, involving an estimated investment value of RM1 billion.

KT Express Logistics chief executive officer Datuk Affendi Mohamed Zain said the e-commerce and logistics hub would handle import and export activities of goods by road through the Malaysia-Thailand border and would be developed in phases over a period of five years.

"The project that will be developed in Bukit Kayu Hitam will involve three phases that will begin in April. We have set a maximum period of five years to develop this hub.

"For a start, we expect two to five containers to deliver goods at this hub where each container is estimated to be able to carry between 2,000 and 8,000 boxes of goods depending on the size of the box,” he told reporters after the pre-launch of the Bukit Kayu Hitam E-Commerce Centre and the signing of the MoA here today.

Industrial and Investment, Science, Technology and Innovation, and Higher Education Committee chairman Datuk Ku Abdul Rahman Ku Ismail and Invest Kedah chief executive officer Muhamad Mahazi Ibrahim signed the MoA on behalf of Invest Kedah, which is a Kedah government-linked company.

KT Express Logistics was represented by Affendi and chief operating officer Mohd Shamsuri Abdul Aziz.

Kedah Mentri Besar Datuk Seri Muhammad Sanusi Md Nor was present to witness the signing ceremony.

Affendi said the company chose Bukit Kayu Hitam as the location to develop the hub because of its great potential for the logistics sector, apart from the increase in e-commerce purchasing activities in the country.

"The hub by road can also save purchase costs compared to using the air route, and it can also help the growth of small traders who have smaller quantities to export and send local goods directly to customers by road,” he said.

Muhammad Sanusi said the understanding between Invest Kedah and KT Express Logistics was a positive sign for investment and economic development in Kedah this year.

"The estimated investment (RM1 billion) is a relatively large amount and this will make Bukit Kayu Hitam an international logistics centre, in line with the Kedah Development Plan 2035.

"I hope its implementation can be expedited as soon as possible for the benefit of all parties,” he said. — Bernama