Kasumigaseki Capital Launches Logistics Operations in Malaysia

Introduction

In a significant move towards expanding its international presence, Kasumigaseki Capital Corporation has announced the establishment of a new subsidiary in Malaysia: Kasumigaseki Capital (Malaysia) SDN.BHD. Located in Kuala Lumpur, this new entity marks the company's foray into the Malaysian logistics sector, pumping in knowledge from its extensive experience in refrigerated warehouses and automated storage systems. This venture is set to align with the growing logistics demands in ASEAN countries, serving as a strategic initiative for Kasumigaseki.

Background of Entry into Malaysia

Malaysia is witnessing a steady rise in both population and economic scale, establishing itself as a central logistics hub in Southeast Asia. Its geographical advantages position the country as a crucial link within the region, which is becoming increasingly important as a logistics center. Beyond its strategic advantages, the Malaysian government is actively improving logistics infrastructure, which is expected to boost international logistics demand. Moreover, the rising income levels due to economic growth and the escalating demand for halal products in emerging markets, such as Asia, the Middle East, and Africa, promise a bright future for the logistics industry in Malaysia.

To meet the escalating needs in the cold storage sector, driven by regulatory changes associated with the 2030 refrigerant phase-out, the increasing consumption of frozen foods, and the upcoming logistical challenges—such as the truck driver shortage expected in 2024—Kasumigaseki has launched its logistics division in June 2020. The firm is innovating to improve labor conditions in cold storage environments while pushing for the development of automated refrigerated warehouses.

Overview of the Project

As part of its first project in Malaysia, Kasumigaseki has signed a land purchase agreement with a leading developer completely owned by a listed company on the Malaysian Stock Exchange (Main Market). This agreement is a foundational step for the development of a refrigerated automated warehouse, geared towards fulfilling the anticipated demand for cold storage facilities in the Malaysian logistics market.

Project Site Map

Image is a conceptual render and may differ from the actual project.

Introduction to Kasumigaseki Capital (Malaysia)

Kasumigaseki Capital (Malaysia) SDN.BHD. is poised to leverage the extensive expertise gained from domestic operations in Japan. By implementing advanced cold storage solutions, the subsidiary aims to capture opportunities within the burgeoning Malaysian logistics market while remaining focused on future expansions across other ASEAN countries.

Future Outlook

While the immediate impact of this initiative on Kasumigaseki's financial performance for the fiscal year ending August 2026 is expected to be minimal, it is believed that this strategic move will contribute positively to the company's long-term growth and enhance its corporate value. As Kasumigaseki Capital expands its logistics services, the firm is dedicated to adapting to the evolving market conditions and meeting stakeholder expectations in both Japan and Malaysia.