Business

Hexagon optimistic about growth in Malaysia

Sunny forecast in electronics sector, with automation, mobility solutions as key drivers

Updated 3 years ago · Published on 28 Oct 2022 7:00AM

Hexagon optimistic about growth in Malaysia
Lim Boon Choon, Hexagon president for Korea, Asean, Pacific, and India regions says there is plenty of room for automation growth in industries like agriculture, where technologies are shaping urban and production ecosystems to become increasingly connected. – ANNE EDWARDS/The Vibes pic, October 28, 2022

by Anne Edwards

KUALA LUMPUR – Hexagon’s Manufacturing Intelligence division remains optimistic about its growth in Malaysia, having crossed its 15th year of local business operations.

Hexagon’s business in Malaysia recorded revenue growth of almost 50% between 2020 and 2021 despite the pandemic and global supply chain constraints.

Its Malaysia office, which started in 2007, now contributes to 20% of Hexagon’s manufacturing intelligence market share in Southeast Asia and has tripled in its employee size from when it started.

“Malaysia is one of our rapidly growing markets in the region, and we are confident about increasing our prospects here, on the back of the Malaysian government’s policies and tenacity in driving the growth of IR4.0,” said Lim Boon Choon, Hexagon president for Korea, Asean, Pacific, and India regions.

The company recently opened up an office in Penang to manage growing demand from customers in the northern region.

“We see potential, especially in the electronics, semiconductors, medical technology, e-mobility and clean energy manufacturing sectors,” he said.

In 2021, Malaysia accounted for 13% of the global back-end semiconductor output, while electrical and electronics (E&E) accounted for 40% of Malaysian exports. 

Six out of 12 of the world’s largest semiconductor companies and seven out of 11 of the world’s solar photovoltaics companies have operations in Malaysia. 

There are also more than 200 medical device industry manufacturers, of which 30 multinationals have made Malaysia their manufacturing base.

“We want to enable our expanding spectrum of customers to effectively automate their business and operations. 

Productivity is paramount, and the advanced technologies and automation we offer give higher precision and pave the way for faster speed to market, with better quality and reduced wastage,” said Lim, who also expressed that the company remains focused on empowering their customers to run their factories more sustainably.

Hexagon technologies are currently used by some of Malaysia’s biggest brands, including Proton, Perodua, Honda Malaysia, UMW Toyota Motor, Spirit AeroSystems, and UMW Aerospace. 

Hexagon technology helps make 95% of cars, 90% of aircraft, and 85% of smartphones in the world.

“We see growing momentum in the electric vehicle (EV) space, and the rapid rise of additive manufacturing technologies makes it possible for batteries and EV components to be manufactured faster, made lighter, and more affordable.

“Specifically, Malaysia could differentiate itself by focusing on its unique role in the value chain, leveraging its position as one of the leading E&E manufacturers and in producing high-value E&E parts for electric vehicles,” Lim explained.

Lim Boon Choon says Hexagon is seeing growing momentum in the electric vehicle (EV) space, and the rapid rise of additive manufacturing technologies makes it possible for batteries and EV components to be manufactured faster, made lighter, and more affordable. – The Vibes file pic, October 28, 2022
Lim Boon Choon says Hexagon is seeing growing momentum in the electric vehicle (EV) space, and the rapid rise of additive manufacturing technologies makes it possible for batteries and EV components to be manufactured faster, made lighter, and more affordable. – The Vibes file pic, October 28, 2022

According to independent research by Hexagon, Big Tech and unicorn start-ups from Silicon Valley, the United Kingdom and China are disrupting the EV market with advanced digitalisation and automation capabilities, enabling time-to-market reductions from several years to as little as three months.

The automotive industry has been rapidly increasing investment in smart manufacturing and Industry 4.0 strategies in order to speed up the electrification of vehicles. 

“There is also a lot of room for automation growth in industries like agriculture, where technologies are shaping urban and production ecosystems to become increasingly connected,” said Lim. 

He explained how automation technologies could help companies better manage the shortage of manpower and other disruptions.

Lim said that companies on the cusp of the fourth Industrial Revolution journey can “start small, scale fast”.

Research shows that smart factory initiatives have given companies 12% labour productivity gains in the past three years. 

We recognise that one of the biggest challenges the industry is facing is experienced workers,” said Lim. 

In response to this, Hexagon has also been collaborating with the Selangor Human Resource Development Centre, the Fit4Work Programme with InvestKL and the MIDA-Perodua Lighthouse Programme for Perodua’s vendors to prepare them for IR4.0 or smart manufacturing deployments.

Most recently, Hexagon signed a memorandum of understanding with Universiti Teknologi Mara’s Mechanical Engineering Faculty to promote collaboration and research cooperation.

“By collaborating with government agencies, industry and academia, there is accelerated knowledge and skill transfer, giving the ecosystem an uplift on advanced industrial technologies as we prepare our talent pool to tackle the opportunities and challenges of industry 4.0,” explained Lim.

Hexagon offers solutions that range from software for design and engineering, computer-aided engineering, computer-aided manufacturing, asset and quality management, statistical process control and data management. 

It also produces a wide range of high-precision measurement equipment, including coordinate measuring machines, multi-sensors and 3D scanners. – The Vibes, October 28, 2022

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