McDonald’s Malaysia Partners with Kota Kinabalu Industrial Park (KKIP) to Establish Food Hub

Four acres of land in KKIP will be used to develop manufacturing facilities and warehouses, to facilitate supplies for McDonald’s restaurants in East Malaysia

KOTA KINABALU, 18 AUGUST 2023 – McDonald’s Malaysia and Kota Kinabalu Industrial Park (KKIP) signed a Memorandum of Understanding (MOU) today, signifying a collaboration that will see the acquisition of four acres of land owned by KKIP, for the construction of a comprehensive food hub that caters to the operations of the quick service restaurant in East Malaysia.

The food hub will involve the participation of three key suppliers of McDonald’s Malaysia, that will establish manufacturing facilities, warehouses, and delivery centres. These prominent suppliers include Bimbo QSR, for bun and bread supplies; Tyson Foods, for food supplies such as vegetables, as well as protein products like nuggets and meat slices in the near future; and HAVI Logistics as the main distribution company, providing facilities for supply delivery to all McDonald’s restaurants across Sabah and Sarawak.

“This food hub is the first of its kind in Malaysia, established specifically to meet demands of our restaurants in Sabah and Sarawak. It is built on the concept of a ‘Food Town’ where our suppliers operate synergistically under one roof. Besides streamlining supply management in East Malaysia, the hub will also be able to lower supply costs, as well as save time for supplies to be received from Peninsular Malaysia. These comprehensive facilities set up at KKIP will fortify the delivery services of our suppliers, in line with McDonald’s expansion plans in East Malaysia,” said Dato’ Azmir Jaafar, Managing Director and Local Operating Partner, McDonald’s Malaysia.

The MOU signing ceremony was signed by Dato’ Azmir Jaafar, Managing Director and Local Operating Partner, McDonald’s Malaysia, YB Phoong Jin Zhe, Minister of Industrial Development and Entrepreneurship of Sabah, as well as Chairman of Kota Kinabalu Industrial Park (KKIP); Natasha Galavotti, Vice President of Global Transformation, Bimbo QSR; Victor Sim, Vice President of Malaysia Business Unit, Tyson Foods; and Dominic Alexander Lopez, Malaysia Deputy General Manager, HAVI Logistics. The signing ceremony was witnessed by the Chief Minister of Sabah, YAB Datuk Seri Panglima Haji Hajiji bin Haji Noor.

 “KKIP greatly welcomes the collaboration with McDonald’s Malaysia and its suppliers, as the establishment of the food hub heralds a positive step for Sabah’s socioeconomic growth. KKIP is always ready to support both local and international companies that are interested to invest in the state, offering a wide spectrum of necessary resources such as raw materials, infrastructures, and many more, in line with the aspirations of the Sabah State Government which seeks to elevate Sabah to an industrial state by 2030,” said YB Phoong Jin Zhe, Minister of Industrial Development and Entrepreneurship of Sabah, as well as Chairman of Kota Kinabalu Industrial Park (KKIP).

At the same ceremony, McDonald’s Malaysia also presented its zakat contribution by making a presenting RM100,000 to the Majlis Ugama Islam Sabah (MUIS), directed towards helping the asnaf communities in Sabah.

“The presentation of zakat contribution has become a steadfast commitment for us at McDonald’s. Our zakat initiatives also resonate with the company’s fundamental principles, focusing on the welfare and wellbeing of our community. We aspire to expand our business within the state, which is expected to further benefit the local communities,” Dato’ Azmir elaborated.

Currently, there are 353 McDonald’s restaurants across Malaysia, including 16 restaurants in Sabah. Among these is the McDonald’s Drive-Thru Jalan Sulaman 2 restaurant, which celebrated its official opening during today’s event. Specifically for the state of Sabah, McDonald’s plans to introduce 36 new restaurants by the year 2030.