GEORGE TOWN: The Federal Government has given RM28.5mil to QAV Technologies Sdn Bhd and AMD Export Sdn Bhd in the form of grants to assist them in establishing themselves as world-class companies.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the funding was to help the companies purchase equipment and to expand their operations.

Speaking at a briefing after visiting QAV and AMD plants in Bayan Lepas, he said QAV received RM18.5mil, with AMD getting the remainder.

QAV Technologies provides testing and certification services to light-emitting diodes (LED) and solid state lighting (SSL) producers while AMD is a global leader in manufacturing micro-processors.

Mustapa said local SSL and LED companies had contributed significantly to the growth of the electrical and electronics sector.

“As of December 2014, 10 local LED companies have achieved significant increase in combined sales, amounting to RM88.7mil. Twenty-six products have been certified internationally, with market access to 13 countries,” he said.

Earlier at Kulim Hi-Tech Park (KHTP), Kedah Mentri Besar Datuk Seri Mukhriz Mahathir said the first phase of the proposed international airport in Kulim would start off with providing cargo services.

“The cargo traffic in and out of Penang has been declining at 10.5% annually. Thus if we plan the first phase as a cargo airport, we can pick up the slack and meet an immediate demand.

“This way, we also don’t disturb the Penang International Airport, which is focused on serving passengers,” he said at a joint press conference with Mustapa.

Mukhriz said the decline in cargo traffic at Penang International Airport was due to the fact that it had only one runway, which was dedicated to serving passenger aircraft.

“The response from the multinational corporations in KHTP to our proposal has been very positive,” he added.

The proposed international airport in Kulim is expected to cost RM1.6bil.

The plan for the proposed airport is now being studied by the Economic Planning Unit.

Meanwhile, Mustapa said a new waste treatment facility built by Globecycle Manufacturing Sdn Bhd close to KHTP would start operations in mid-2015.

He added that Globecycle had received a RM7mil grant from the Federal Government for the project.