YB Dato’ Seri Mohamed Azmin Ali, Senior Minister, Minister of International Trade and Industry (MITI) led the Trade and Investment Mission (TIM) to the State of Qatar, the Republic of Austria and the Republic of Turkey from 4-14 July 2021. The TIM involved bilateral meetings with the Senior Minister’s counterparts, a roundtable meeting with captains of industry and one-on-one meetings with potential investors. MIDA’s participation in the TIM was led by Mr. Arham Abdul Rahman, Chief Executive Officer (CEO) of MIDA.
COMMITTED INVESTMENTS FOR 2021 AND 2022
The TIM successfully secured a total of RM17.56 billion in committed investment for 2021 and 2022 by the following companies:
Austria-based AT&S, one of the leading global producers for printed circuit board (PCB) and integrated circuit (IC) substrates, has chosen Malaysia for its first production facility to produce IC substrates in the region and committed to investing RM8.5 billion in the Kulim High Technology Park, Kedah. The new facility is expected to create 5,000 – 7,000 high-tech and high impact job opportunities. The construction of the facility is scheduled to begin in the second half of 2021 with commercial operations targeted to come on stream in 2024. The Senior Minister witnessed two important events during this visit, namely the hand over of the offer letter from the Malaysian Government to AT&S for their investment in Malaysia as well as the MoU signing between MIDA CEO Mr. Arham Abdul Rahman and AT&S CEO Andreas Gerstenmayer to mark a mutual relationship in developing a long-lasting R&D and educational collaborations between AT&S and suitable Malaysian Universities, Education, Training and Research Institutions.
Semperit AG Holding is a manufacturer of industrial rubber and plastic products based in Vienna, Austria. Semperit has invested more than RM450 million in their new production site in Kamunting Perak, producing medical and examination gloves. The company is planning for a RM100 million expansion project in Malaysia.
The Senior Minister also engaged with two existing companies that are currently in operation in Malaysia, namely Stellantis N.V. (formally known as PSA Group) and Osram Licht AG (OSRAM) in the automotive and wafer fabrication industry, respectively. Constructive discussions took place during the exchange with these companies in order for them to further reinforce their presence in Malaysia. Further expansion by these companies would be welcomed additions to the vibrant automotive and semiconductor industries in the country.
OTHER NOTABLE EVENTS DURING THE TIM
A roundtable discussion with the Austrian Federal Economic Chambers (WKO) was held to update the Austrian Business community. The WKO was established in 1848 and represents more than 540,000 member companies. A total of 13 Austrian companies attended the roundtable meeting.
They have indicated their interest to explore business and investment opportunities in Malaysia. Dato’ Seri Azmin concurred that there was an urgent need to intensify strategic engagements of business-to-business cooperation particularly in industries such as smart manufacturing, artificial intelligence, aerospace industry, medical devices, and renewable energy.
The MoU signing session between MIDA and ADVANTAGE AUSTRIA in Vienna underscores both parties’ commitment to further establish a mutually beneficial and cooperative relationship, especially in generating investment opportunities and undertaking joint promotional activities. Advantage Austria is a commercial service provider and trade promotion organisation in the areas of foreign trade, with about 100 offices in over 70 countries, providing a broad range of business development services for both Austrian companies and their international business partners. The MOU was signed by Mr Arham Abdul Rahman CEO of MIDA and Mr. Micheal Otter CEO of Advantage Austria. Malaysia certainly welcomes more investments from Austria particularly in the new growth areas with emerging technologies, high-technology, capital intensive, high value added, knowledge-based, skills intensive and export-oriented which provide high-income jobs.
In Turkey, Heads of Agreement (HOA) signing ceremony was held between Sapura Technics Sdn. Bhd. and Turkish Airlines Technic Inc. Both companies signed a Heads of Agreement (HOA) to finalise a joint venture (JV) to undertake Maintenance, Repair and Overhaul (MRO) activities in Senai Airport, Johor, Malaysia. Turkish Airlines Technic is one of the top 10 Commercial Aviation MRO companies in the world, while Sapura Technics is a Malaysian homegrown company involved in the MRO activities for Airframe, Components and Engineering Services. This JV provides an opportunity for the Malaysian company to grow by leveraging their expertise as well as their certification. At the same time, the JV will serve and provide end-to-end offerings covering design, manufacturing, and MRO domains particularly on the interior products. These initiatives will provide cost effective products and support, lower cost of maintenance and better response time from suppliers. It is also in line with the government’s efforts to promote local content development for Malaysian and regional carriers.
In addition, Turkish Airlines also expressed their interest in exploring opportunities in Air Cargo services by making Malaysia as their hub in the ASEAN region.
ON THE RIGHT TRACK TO ATTRACT QUALITY INVESTMENTS
MIDA continues to welcome high-quality foreign direct investments from around the world, including the State of Qatar, the Republic of Austria and the Republic of Turkey. These investments assume an important role in the development of Malaysia due to their multiplier impact on the economy and will continue to do so in the post-pandemic era. Through policy reviews and targeted approaches, the Government will ensure that Malaysia remains the preferred investment location with a favourable environment for quality investments in Asia.
Source: MIDA e-Newsletter July 2021