Kim Teck Cheong acquires land in Kota Kinabalu to develop distribution and warehouse hub

• Kim Teck Cheong Consolidated said the development of the land into a distribution and warehouse hub will improve operational efficiency, supply chain control, and reduce reliance on third-party logistics

KUALA LUMPUR (June 11): East Malaysia-based consumer goods distributor Kim Teck Cheong Consolidated Bhd (KL:KTC) said it is acquiring 15.15 acres of land in Kota Kinabalu to develop a regional distribution and warehouse hub.

The group is acquiring the land for RM39.59 million from Sabah state-owned company KKIP Sdn Bhd, said KTC in a filing with Bursa Malaysia on Wednesday

The purchase will be funded through internally generated funds (31%) and bank borrowings (69%), the group said.

KTC said the development of the land into a distribution and warehouse hub will improve operational efficiency, supply chain control, and reduce reliance on third-party logistics. It is also expected to enhance delivery timelines and support expansion into new markets across the region.

“Barring any unforeseen circumstances, the board is of the view that the proposed transaction will contribute positively to the group’s future earnings and long-term value,” KTC added.

The hub will be located within the Kota Kinabalu Industrial Park (KKIP), a state-backed fully integrated industrial park launched in 1993 and developed under the purview of the Sabah State Ministry of Industrial Development and Entrepreneurship via KKIP Sdn Bhd.

KTC said the land acquisition is part of the group's broader plan to establish one of the largest fast-moving consumer goods distribution centres in the region, targeting improved logistics coverage for Sabah, Sarawak, Brunei, and Indonesia. The hub’s development is expected to be completed within 48 months.

Shares of KTC closed unchanged at 15 sen on Wednesday, valuing the group at RM99.08 million. Year to date, the stock has fallen 25%.

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