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Digital free trade zone deal paves way for KL to be Alibaba's regional distribution hub

Published Wed, Mar 22, 2017 · 09:50 PM

Kuala Lumpur

MALAYSIA appears set to be the future regional distribution hub for China's e-commerce giant Alibaba Group following a planned collaboration to establish a Digital Free Trade Zone (DFTZ) whose main component will be an e-fulfilment hub at the KLIA Aeropolis in Sepang.

Alibaba's logistics affiliate Cainiao and online retail unit Lazada will work with Malaysia Airports Holdings Bhd to develop the e-hub on an initial 20 acres (eight hectares) at Aeropolis centred on the key clusters of air cargo and logistics, aerospace and aviation. Another 19 acres would be set aside for future expansion.

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