GEORGE TOWN – The Malaysian Industrial Development Authority (Mida) has hinted at “good numbers” in terms of foreign direct investments (FDI) for the first quarter of this year in view of pent-up global demand for electrical and electronic (E&E) components.
The figures will be formally released within the next one to two days, Mida chief executive officer Datuk Arham Abdul Rahman said, adding that the E&E sector will power the bulk of investments in the manufacturing sector.
However, he cautioned that investment figures cannot be consistently rosy as they are cyclical in nature and many external factors drive FDIs globally.
Wait, in the next one to two days, we will release the numbers,” Arham told a press conference while attending a ceremony for the expansion of TF AMD Microelectronics Sdn Bhd’s plant here yesterday.
The event was officiated by Penang Chief Minister Chow Kon Yeow.
Also present were AMD chief financial officer Datuk Devinder Kumar, who is also executive vice-president and treasurer, as well as Neoh Soon Ee, the managing director and corporate vice-president of TF AMD in Penang.
Chow said that attaining FDI is a complicated process, as there are other factors that need to be considered, such as supply chains, logistics, land, skilled labour and geo-politics.
He noted that Penang accounted for 41% of the country’s FDI last year with an all-time high record of RM76 billion.
The state is fortunate that it is able to attract strong FDIs over the past 50 years and hopes to do so for the next 50 with the assistance of InvestPenang and Mida, he added.
E&E products account for 70% of Penang’s total exports. The state is considered a key pillar in the country’s economy, having recorded a RM132 billion trade surplus last year.
TF AMD to invest RM2 billion
Meanwhile, Ipoh-born Devinder, who is now based in California, USA, said that the international demand for semiconductors is expected to last for a while.
With producers expanding their production capacity here, the gap in the acute global shortage of chips has been reduced. This also comes with the reopening of global economies.
Devinder said that Penang has become an important entity in the global supply of chips. He added that he expects more attention would be given to its industrial zones by investors.
TF AMD was formed through a joint venture when China-based TongFu Microelectronics Co bought 85% of AMD’s stakes in Penang and Suzhou in China in 2016.
Also present at the event yesterday were TongFu Microelectronics chairman Shi Ming Da and Northern Corridor Implementation Authority chief executive Mohamad Haris Kader Sultan.
TF AMD will invest up to RM 2 billion in the next five years for its new plant at the Batu Kawan Free Industrial Zone and create up to 3,000 high value jobs in the process, here.
It will also expand on a supporting ecosystem of small and medium industries that can work to meet the needs of the original equipment manufacturers.
The company also has a presence in Cyberjaya and is considered one of the eight tech companies of American origin to be among the pioneers in Penang’s electronics sector. – The Vibes, June 15, 2022
