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The parent company of Shopee, the Singapore-based e-commerce behemoth Sea, has declared its intention to grow in Malaysia, which is anticipated to generate over 2,000 employment in that nation.
Tengku Zafrul Aziz, Malaysia's Minister of International Trade and Industry, made this declaration on Sunday while paying an official visit to Sea's headquarters in Singapore (January 29).
The establishment of cloud computing services, data hosting and processing, as well as a new logistics e-commerce warehouse are just a few of the Malaysian expansion ideas that Sea revealed with the minister during his visit.
The Kulai town of Johor will house the three-story green building housing the cloud computing project, which will have 24 data hall suites, mechanical and electrical rooms, office space, storage, and parking facilities. The first quarter of 2024 has been specified as the anticipated completion date for this project.
Additionally, Shopee will increase its presence in Malaysia by building a two-story mega warehouse in Bukit Raja, Klang. This warehouse will be a 130,000 square metre integrated high-tech logistics park with cloud infrastructure.
According to Tengku Zafrul Aziz, "their planned foreign direct investment in high-tech warehousing and cloud computing is set to produce more than 2,000 new employment for our people, which will also assist us upskill our human capital while increasing national productivity and competitiveness over time."
The company's investment in Malaysia, he continued, will also benefit small and medium-sized businesses, corporations, and local communities.
Sea's main goal is to have positive cash flow.
The decision by Sea to increase its investment footprint in Malaysia shows how confident the company is in the business environment there. The company's aspirations to expand in Malaysia, according to Sea's co-founder and group COO, Gang Ye, are a significant milestone for both the firm and the local digital ecosystem.
The business is reportedly dealing with some difficulties. The creator of Sea, Forrest Li, stated in an internal message last September that the company's main goal for the following 12 to 18 months is to establish positive cashflow as quickly as feasible.
He had mentioned how Sea has been having difficulties during a time of rising interest rates, quickening inflation, and erratic market conditions. In his opinion, this is not a "passing storm," and he predicts that it will likely continue for a while.
According to reports, as of December of last year, Sea had let go more than 7,000 workers, or around 10% of its global staff. It recently conducted its third round of layoffs inside 2022, which took place in November.
Shopee also fired regional employees from its ShopeeFood and ShopeePay departments earlier that year. Then, in September 2022, Shopee cut personnel at its gaming division Garena and its research and development division Sea Labs as well.
Separately, Shopee recently made news for retracting numerous employment offers with a Singaporean base. The e-commerce company claimed that a number of Shopee positions were no longer open as a result of changes to employment plans.
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