Risen Energy’s RM42.2b project offers local businesses chance to become part of global value chain, says Azmin
24 Jun 2021
Global solar company Risen Energy Co Ltd’s RM42.2 billion investment in Malaysia announced today demonstrates strong confidence in the country’s administration and political stability, said International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali.
“Risen Energy’s project in Malaysia will also benefit local businesses, particularly SMEs (small and medium enterprises), and provide opportunities for them to become part of the global value chain. The multiplier effects will ensure positive social results and add value to the economy as a whole,” he said in a statement.
Prime Minister Tan Sri Muhyiddin Yassin earlier today announced that the government had approved a manufacturer’s licence and incentives under the National Economic Recovery Plan (PENJANA) for the design, development and manufacturing of solar cells and solar modules in Malaysia for Risen Energy with a total investment of RM42.2 billion.
Muhyiddin said this after a virtual meeting with Risen Energy chairman and president Xie Jian, which was also attended by Azmin and Malaysian Investment Development Authority (MIDA) chief executive officer (CEO) Arham Abdul Rahman.
This is Risen Energy’s first investment in Southeast Asia, and involves the opening of a production base in the Kulim Hi-Tech Park, Kedah to produce high-efficiency photovoltaic modules to meet growing global demand.
‘The facility’s construction at the Kulim Hi-Tech Park will be completed by the end of this year, while commercial activities are expected to begin in 1Q22 (the first quarter of 2022). This new facility will contribute an annual production capacity of 3GW for the first five years,” said Azmin.
Azmin cited Muhyiddin as saying that Risen Energy’s project will further solidify Malaysia’s role in the global photovoltaic industry and is in line with our National Investment Aspirations framework, which contains the elements of high value-added, high-technology, knowledge and capital intensive-, skills-intensive and high-income jobs.
To tap on the enhanced employment opportunities created, Azmin said MIDA had started working with the company for specific talent development programmes to ensure a sustainable local talent pool to meet the demands of the global solar player.
“Malaysian companies are encouraged to participate and work closely with MIDA through the vendor development and supplier programmes designed to support Risen Energy’s local sourcing of relevant products or auxiliary services.
“Internship programmes are also in the pipeline with local higher learning institutions to prepare industry-ready talent. Upon operation, this facility will create synergies and improve the company’s photovoltaic production capacity, while increasing profitable points and enhancing anti-risk ability, which is critical for Risen Energy to foresee its sustainable, stable and rapid development in the future,” added Azmin.
Risen Energy was founded in 1986 and is one of the pioneering solar companies in the world, with a revenue of around US$2 billion (about RM8.32 billion) in 2020, and has exported solar products to more than 100 countries.
Source: The Edge Markets