Chow: Three local supply chain companies reinvest RM520m in Penang
05 Nov 2021
Three Penang-based large local companies (LLC) are reinvesting RM520 million through expansion projects in the Batu Kawan Industrial Park, Penang Chief Minister Chow Kon Yeow announced today.
He said the three companies, in the equipment manufacturing supply chain, are collectively taking up 35 acres of land in Batu Kawan Industrial Park for their respective expansion projects,
“All three projects are slated to commence in the first quarter of next year and are expected to create up to 1,300 new job opportunities for locals,” he said in a press conference announcing the investments at Penang Development Corporation (PDC) this morning.
Chow said the LLCs and small-medium enterprises (SMEs) have been critical in promoting the growth of the manufacturing and electronics (M&E) sector in the state.
“Penang now has a comprehensive supply chain in the M&E and automation domains, which is led by local companies with a diverse range of core competencies such as Greatech, Pentamaster and UWC,” he said.
The three LLCs that are expanding in the Batu Kawan Industrial Park are Greatech Technology Berhad, Pentamaster Corporation Berhad and UWC Berhad.
According to Greatech board chairman Ooi Hooi Kiang, their new RM150 million facility will cover an area of 265,000 sq ft and will house high-value designing and assembly activities for new products.
“We target to complete the construction by the third quarter of 2022 and the new facility will create 500 new jobs, of which, 300 will be engineers and the remaining 200 will be assembly workers and machinists,” she said.
She said once the new facility is fully completed, the company will hire up to 1,300 new employees in total.
As for Pentamaster, its executive chairman Chuah Choon Bin said the new facility will be the company’s third plant in Penang.
“With a RM120 million investment, this 500,000 sq ft facility will create 300 job opportunities for engineers and bring our total built-up area of all our facilities to 750,000 sq ft,” he said.
Meanwhile, UWC executive director and group chief executive officer Datuk Ng Chai Eng said UWC will be investing RM200 million into the expansion project over the next three years.
“This expansion will create 300 engineering positions and 200 technician positions for local talents,” he said.
Chow said the reinvestments by the three LLCs underlined the continued confidence of both domestic and international investors in Penang.
“Penang not only has a solid reputation as a preferred location for MNCs, but it is also known as an entrepreneurial state that provides a conducive environment for homegrown companies to scale and thrive,” he said.
He said the LLCs in Penang have seen tremendous growth over the past five years.
He said Penang’s domestic direct investment climbed to a decade high of RM3.6 billion in 2020, which is 25 per cent of the state’s total direct investment.
“In the first half of 2021, local companies contributed RM700 million of direct investments, equivalent to 54 per cent of the total direct investments in Penang,” he said.
Source: Malay Mail