Media Release: MITI Minister’s Visit to Penang, 21 April 2011
21 Apr 2011 01:17 PM

Penang, 21 April 2011 – Dato’ Sri Mustapa Mohamed, Minister of International Trade and Industry led a MITI delegation to Penang to obtain feedback and updates on investment activities in the state.  

Earlier during the visit, the Minister graced the groundbreaking ceremony of Aviatron (M) Sdn Bhd, a wholly-owned subsidiary of Singapore Aerospace Manufacturing Pte Ltd (SAM). The establishment of Aviatron marks another milestone in SAM’s expansion in Malaysia. “Our phase 1 RM200 million investment is a reflection of our confidence in Malaysia, specifically its sound investment climate, political stability and pro-business government policies,” said Mr Jeffrey Goh, President & CEO of SAM.

The new facility has a built-up area of more than 150,000 square feet dedicated for the manufacturing of critical aerospace structural parts for four aircraft types, namely Boeing 787, Airbus A350, Bombardier C-Series and Mitsubishi Regional Jet. “This investment is timely as the government is currently developing niche and high-technology aerospace industry.  It will raise the profile of Malaysia’s aviation industry further,” said YB Dato’ Sri Mustapa Mohamed.

“We are confident that SAM’s substantial investment in the country will act as a catalyst to other global aerospace-related companies to invest in Malaysia” added Dato’ Sri Mustapa Mohamed.

According to the National Aerospace Blueprint, aero-manufacturing is one of the identified growth areas for Malaysia’s aerospace industry. SAM’s proposed activity of manufacturing structural components for commercial aircrafts is thus in line with the aim of strengthening Malaysia’s position in the global supply chain especially for aerostructure parts and avionics. 

The establishment of SAM’s expansion project in Malaysia will not only bring new aerostructure work packages from major airlines to Malaysia, but also technology integration through more aerostructure assembling activities in Malaysia and provides more opportunities for local companies to supply to SAM.

Later in the day, the Minister visited Agilent Technologies Microwave Product (M) Sdn Bhd, the world's leading designer, developer, manufacturer and provider of electronic and optical test, measurement and monitoring instruments, systems and solutions. The company occupies a 42-acre manufacturing site in Bayan Lepas, with a workforce of about 3,000 employees. 

“It is important that investments that flow into Malaysia are able to provide quality employment to the local people and generate economic spin-offs for other businesses, especially SME. I am happy to note that Agilent is already in this direction and contributing to the economic development of the local community” the Minister added.     

Industrial electronics comprise several sub-sectors involving test and measurement, wireless communication and automation markets. The overall global market size for these sub-sectors is estimated to be RM1,070 billion, with projected annual growth of 3 to 5 percent over the next 10 years. The National Key Economic Areas (NKEA) has identified this sub-sector as one of the Entry Point Projects (EPP) and is expected to increase Malaysia’s GNI to RM1.36 billion by 2020.

Malaysia’s export for E&E products in 2010 was RM249.8 billion, an increase of 9.6% from RM227.8 billion from 2009. For January to February 2011, exports of E&E products totalled  RM37.5 billion.

Representatives from the Malaysian American Electronics Industry Association (MAEI) assured MITI early this year that E&E players will be increasing their investments in Malaysia. They reported that “positive” factors are attracting “big and small global players” to Malaysia. In addition, those that have set up base over the past two to three decades are expanding and extending their businesses. We are beginning to see the results.

The Ministry of International Trade and Industry

Kuala Lumpur, Malaysia

21 April 2011