NEW YORK – A US-based global supplier of consumer and commercial tools, appliances and floor care has confirmed a move to expand its manufacturing as well as research and development (R&D) base into Malaysia with an investment commitment of RM500 million.
The announcement on Alton Industry Ltd Group’s new facility, scheduled for completion in 2024, occurred during a meeting between Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz and Alton CEO David Lu in New York today.
The company, which has its headquarters in Chicago, will build its new state-of-the-art plant in Johor Baru.
The success comes on the heels of another company, whose identity Zafrul declined to reveal, confirming a plan to build a semiconductor plant in Penang.
Also today, US furniture giant Top-Line Furniture Corporation expressed its intention to increase in sourcing value over the next few years to RM230 million per year.
Zafrul hailed Alton’s decision, saying that it reflects their confidence in the country’s attractiveness as an investment destination.
The investment will serve as a global R&D centre for the company’s new technology platforms.
He said that it perfectly aligns with Malaysia’s recently launched New Industrial Master Plan 2030 (NIMP 2030) to create an investment-friendly environment and rapidly embrace technology to elevate the Malaysian manufacturing sector’s tech ecosystem.
“It firmly establishes Malaysia as a global technology and innovation hub, driven by new innovations and deeper collaboration between Alton and Malaysian SME industry players.,” Zafrul said at a press conference here.
Zafrul is in New York to attend the United Nations’ General Assembly this week. Prime Minister Datuk Seri Anwar Ibrahim is scheduled to deliver his address to the assembly at the UN headquarters here on Friday.
“We warmly welcome Alton’s investment and its potential for higher-paying, quality employment opportunities, particularly for Malaysians,” Zafrul said.
Meanwhile, Malaysian Investment Development Authority (Mida) CEO Datuk Arham Abdul Rahman also praised the move to secure investments from both technology giants.
“We are excited with Alton’s commitment to Malaysia, recognising that their enduring presence in our nation will serve as a catalyst for fostering mutually beneficial collaborations with domestic industry players, particularly in the area of high-value, high-growth activities.
“As Alton established its roots in Malaysia, we anticipate it evolving into a pivotal industry partner for our country, contributing significantly to our economic growth and development,” he said.
Alton does business in over 75 different countries, with offices in China, Japan, Hong Kong, Europe and the USA.
During the meeting, the company laid out a vision of over RM2 billion in investment in the next seven years in additional expansion and growth.
Boosting furniture exports to US
Earlier, Zafrul held a meeting with Max Liaw, deputy CEO of Top-Line Furniture.
Top-Line currently possesses a significant network of distribution centres throughout North America including supplying to five of the largest furniture companies in the Mid-West region.
The company has been sourcing home furniture from Malaysia since 2000 with a total import of approximately RM840 million.
Top-Line has now expressed its intention to increase its sourcing value over the next few years to RM230 million per year.
“Top-Line and other major US furniture importers’ decision to choose Malaysia as one of its preferred sourcing countries reflects Malaysia’s capabilities as a reliable producer of high-quality furniture,” Zafrul said.
Last year, Malaysia exported RM13.86 billion of furniture globally, he added.
“The United States stands as our top export destination, valued at RM7.24 billion or constituting 52.2% of our total furniture product exports in 2022, followed by Singapore, Japan, Australia, and the United Kingdom.”
Malaysia was the sixth largest source of imported furniture in the US in 2022, accounting for 2.78% of total US furniture and bedding import value.
“Government support coupled with strong collaboration with companies such as Top-Line will ensure that our furniture manufacturers are able to accelerate their business growth and ensure their long-term sustainability,” he said.
He added that the Malaysian External Trade Development Corporation (Matrade) will keep supporting both buyers and Malaysian exporters to build lasting and sustainable business relationships towards strengthening exports and minimising disruption to the global supply chain. – The Vibes, September 20, 2023
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