Cold Chain Logistics

Growing demand for Sabah’s renowned seafood products and the increase in e-commerce services have called for greater cold chain logistic solutions to service the Asia-Pacific market. Cold chain logistics suppliers can also take advantage of Malaysia’s well-recognised Halal certification by setting up a packaging base in one of Sabah’s industrial parks.


  • The completion of the 5,324-kilometre Pan Borneo Highway will connect Sabah to the Malaysian state of Sarawak, Indonesia’s Kalimantan region, and country of Brunei, in addition to enhancing linkages between local districts. This will improve the movement of goods between locations enabling logistics providers to service increased demand for cold chain solutions for climate-sensitive goods.
  • Sabah offers investors five main industrial parks with built-in industrial areas able to support cold storage warehouses. These industrial parks offer readily available infrastructure, utilities, and accessible logistics. Among these parks includes the Kota Kinabalu Industrial Park (KKIP) which is strategically located next to the Sapangar Bay Container Port.
  • The national and Sabah state governments support and encourage logistic companies to diversify their business into cold chain logistics. The Malaysian Investment Development Authority (MIDA) provides incentives and tax breaks to investors.[1]

Investment Opportunities

  • Sabah is positioned to become the hub for cold-chain logistics in the region with its strategic location within the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA) region and its proximity to Indonesia’s new capital city in Kalimantan. Sabah’s strategic location opens access to a market of approximately 24 million people across the island of Borneo, spanning the Malaysian state of Sarawak, Indonesian state of Kalimantan, and the country of Brunei.
  • Currently the Asia-Pacific region accounts for over 56 percent of the global population which brings focus to the region’s consumption of food, healthcare products, and services.[2][3] The health and pharmaceutical sectors are responding to the Asia-Pacific’s growing population and increasing demand for medical support and cold chain shipping in the region.
  • The COVID-19 pandemic has created growth opportunities within the industry, propelling demand for cold chain outsourcing, refrigerated transportation and warehousing. The recent global vaccine roll-out emphasised the need for temperature-controlled shipments, and the significance of cold chain logistics continues to evolve as the healthcare industry grows.

Recent Investment Activity

  • Hypercold is involved in the provision of cold chain related logistics, warehouse storage and transportation of goods with it’s warehouse located at Kota Kinabalu Industrial Park, Sabah. Hypercold has the largest cold chain warehouse in Sabah comprising of 3,000 pallets space, with its main clients involved in the largest fast food restaurant chains and leading ice cream brands in Malaysia. In June 2021, Tasco Yuen Gold Cold Chain Sdn Bhd (“TYGC”) and Swift Logistics Integrated Logistics Sdn Bhd (“SILC”) have acquired 100% equity interest in Hypercold with equal shareholding. TYGC is a 70% owned subsidiary of TASCO Bhdand SILC is 100% owned by Swift Haulage Bhd. Both Tasco and Swift are listed in main market of Bursa Malaysia.
  • In July 2021, AirAsia Group announced its plans to open a 6,000 sq. ft (557.42 sq. m) warehouse in Kota Kinabalu which will act as a three-in-one agri-centre utilised by AirAsia Farm as a cold chain facility, office space, and a dedicated training area for small and medium enterprises in Sabah. With this farming warehouse, fresh products can be shipped from Sabah to Kuala Lumpur within 24 hours to preserve freshness.[5]
  • In October 2021, FGV Holdings invested an initial USD$1.98 million towards cold chain transportation services under its logistics arm FGV Transport Services, aiming to cater to growing market demand for effective logistics management. Acquiring ten 7.5-tonner refrigerated trucks with another 7 to follow, FGV Transport will leverage growing e-commerce opportunities to offer cold logistics solutions for industry players, consumers, manufacturers, and farmers.[6]

Ice Factories and Refrigeration Facilities in Sabah (2019)

Source: Sabah Department of Fisheries