GEORGE TOWN – JHM Consolidation Bhd (JHM) and QES Group Bhd, (QES) based in Kedah and Selangor, will expand their manufacturing operations to Batu Kawan, Penang in 2023 with a RM190 million investment.
Their expansion is expected to create 1,100 job opportunities over five years. This comes ahead of Penang’s 50th anniversary of industrialisation next year.
Penang Chief Minister Chow Kon Yeow, in his congratulatory message, said this is a testament to Penang’s robust manufacturing sector.
“With the strong presence of MNCs, large local companies and auxiliary industries in close proximity to one another, companies that set foot in Penang are able to enjoy far-reaching benefits in terms of operational advantage and increasing penetration into the global supply chain at a cost-effective manner.
“Penang is the most important manufacturing base for electrical and electronic (E&E) products in Malaysia, and is among the most vibrant hubs globally, with an estimated 5% of global semiconductor exports – and that is a very significant number.
“Just like how when it comes to property development, address is important, for industrial property, Batu Kawan is the address you want to have with the name of your company,” Chow said during the investment announcement at Penang Development Corporation today.
Despite the global economic setback brought on by Covid-19, Chow said that Penang’s exports passed the RM300 billion mark to reach a record high of RM310 billion. Some 82% of that figure was contributed by E&E as well as professional, scientific and controlling instruments including medical devices.
Exports did not slow down in 2021 as they rose 13% year-on-year, totalling RM256 billion from January to September. Penang alone contributed 42% of the country’s total exports at RM75 billion.
In 2020, Penang received RM14 billion in approved manufacturing investments, contributing 89% of the total investments and representing 50% of Malaysia’s collective investments in the manufacturing field.
There is an increasing trend of local companies moving up the value chain with higher value-added offerings and high-level technology adoption.
QES Group group managing director Chew Ne Weng said many MNCs who are their customers are congregating in Batu Kawan and, naturally, the company wants to be in proximity with them.
As a company that specialises in manufacturing, distribution and provision of engineering services for inspection, test, measuring, analytical and automated handling equipment, QES believes that working closely with their clients will help them build better products.
It is investing RM20 million into Batu Kawan Industrial Park.
Meanwhile, JHM Consolidation group CEO Datuk Tan King Seng said that moving to Batu Kawan will enable the company to provide full electronics and mechanical manufacturing services solutions and deal directly with the automotive original equipment manufacturers.
The group is investing RM170 million in a 350,000 sq ft plant set to complete at the end of 2022.
It is expected to generate 300 jobs in its first phase and another 300 in its second. By the end of three years, it is expected to hire a total of 1,000 employees.
The press conference was also attended by Trade, Industry and Entrepreneur Development exco Datuk Abdul Halim Hussain, the chief minister’s special investment adviser Datuk Seri Lee Kah Choon, PDC CEO Datuk Mohd Bazid Abd Kahar, Invest Penang CEO Datuk Loo Lee Lian and Malaysian Investment Development Authority director Muhammad Ghaddaffi Sardar Mohamed. – The Vibes, December 4, 2021
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