UPDATE

Malaysia’s Business Landscape Continues to Thrive

“Through the face-to-face engagement today, I am delighted to share that the companies that we met during the Dialogue Session have expressed their commitment to expand and diversify their operations in the near future.

6 October 2016, Selangor – “We are stepping up our efforts to engage with companies on the ground to gain insights on their operational issues amid the challenging economic climate. We seek to better facilitate these companies in meeting current challenges,” said Dato' Sri Mustapa Mohamed at a media conference held in conjunction with the Turun Padang Programme to the state of Selangor.

“Through the face-to-face engagement today, I am delighted to share that the companies that we met during the Dialogue Session have expressed their commitment to expand and diversify their operations in the near future. This is welcome news in the context of foreign direct investments, and in creating additional employment opportunities,” added Dato' Sri Mustapa.

Prior to the media conference, YB Minister led a Dialogue Session with companies that are operating in Selangor. Among them are Nippon Electric Glass (NEG), Nitto Denko, Pharmaniaga, Shin-Etsu and Panasonic Manufacturing Malaysia.

YB Minister elaborated that in the first eight months of 2016, Malaysia recorded a total of RM35.86 billion of approved investments in the manufacturing sector, which will create 39,872 job opportunities. Selangor continued to be among the top recipients of these investments. The state was ranked second; behind Johor with total approved investments of RM3.82 billion. These investments are mainly in the food manufacturing, fabricated metal products, chemical & chemical products, machinery & equipment and petroleum products. Out of the 159 manufacturing projects approved from January – August 2016, about 58% were new while the balance was expansion and diversification projects. For Selangor, more than 8,046 job opportunitieswill be created from new investments approved between January – August this year. Main industry players in Selangor include NXP Semiconductors, Nippon Electric Glass (NEG), Western Digital, Sony EMCS, Hanwha Q-Cells, Hartalega, Perodua Global, Perusahaan Otomobil Nasional and KL-Kepong Oleomas.

The logistics industry forms the backbone of the supply chain and is recognised as the key to stimulate trade, facilitate businesses and spur economic growth. In the Eleventh Malaysia Plan (11MP), the focus is to develop integrated logistics and enhance trade facilitation mechanisms. The Government has also launched the Logistics and Trade Facilitation Masterplan (2015-2020) last year. It is projected to generate 146,000 new jobs, mostly in high skilled categories by 2020. With this, Malaysia is set to be the Preferred Logistics Gateway to Asia. Today, Malaysia already is the host to renowned integrated logistics companies such as DHL Express, Nippon Express, Schenker Logistics, Steinweig and Fedex Trade Networks Transport & Brokerage. Not lagging behind are our local players such as Kontena Nasional, Syarikat Logistik Petikemas, Century Total Logistics, PKT Logistics and SnT Global Logistics.

Earlier in the day, the Minister had a meeting with the management of Port Klang Free Zone (PKFZ) and Syarikat Logistik Petikemas, and visited Century Total Logistics. Both Syarikat Logistik Petikemas and Century Total Logistics are embarking on expansion and diversification of their current operations.

“The very fact that these companies continue to expand their footprints in the country by building more warehouses and acquiring additional assets is a positive indication that the business in this country continues to thrive. These improved facilities and capabilities will act as enablers towards ensuring effective and efficient service delivery, thereby enhancing the overall supply chain process. This will ultimately contribute towards elevating the operational efficiencies of their clientele and end customers,” said YB Minister.

Century Total Logistics, a fully owned subsidiary of Century Logistics Holdings Berhad located in Port Klang, provides oil logistics, procurement logistics and integrated logistics to a portfolio of renowned companies such as F&N, Mondelez, Haier, Philips, Hisense and Midea. This company, with 711 employees whereby 93% are Malaysians, is expanding by building an additional warehouse with a total built up of 23,225 m2 for its integrated logistics activity in Tanjung Pelepas. The company is also diversifying its operation by constructing a multi-story warehouse with a total built up of 45,000 m2 in Mukim Kapar that will be a Distribution Centre and E-fulfillment Logistics Centre. These expansion and diversification projects will involve additional investments of more than RM200 million and 149 job opportunities for Malaysians. The company was granted Investment Tax Allowance in June 2015.

Syarikat Logistik Petikemas, a 100% Malaysian integrated logistics company, presently operates through eight (8) warehouses located in Selangor, Pahang and Johor. The company currently has a staff strength of 600 people, all Malaysians. Last year, MIDA has approved the company’s expansion projects for its integrated logistics services in Pasir Gudang and PKFZ, and specialised warehousing services in PKFZ and Westports. These involved an additional RM158.2 million investments and 207 job opportunities over a period of 5 years, as well as the purchase of an additional 266 commercial vehicles to better service its increasing number of customers. The company was granted Investment Tax Allowance in June 2015. With this expansion, Syarikat Logistik Petikemas is now the first Malaysian company that adopts automated bagging system technology to store resin polymer for its customers in the petrochemical and polymer industries. With the potential to attract renowned industry players such as Dow Chemicals, Gulf Polymer, Damco and Cargil, the company is set to become a resin polymer storage hub.

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For more information, please contact:

En. Ahmad Tajudin Omar

Director, Domestic Investment Division, MIDA

Tel.: 03-2267 3627 | Email: [email protected]

Posted on : 06 October 2016
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Last Updated : Monday 21st May 2018