Speech by Chief Minister of Penang
At The Ground Breaking Ceremony by Federal Oats Mills Sdn Bhd
St. Giles Wembley, George Town, Penang
29 August 2017
Ladies and gentlemen
Good morning. I am pleased to be present today at the ground-breaking ceremony of Federal Oats Mills Sdn Bhd new plant at halal food manufacturing hub located within the Penang Science Park - North. This re-investment in Penang by one of Malaysia’s most prominent and established companies, established in 1965, marks the continued growth of investments into Penang.
Penang Investment and Food Manufacturing Growth
Penang has recorded strong investment in manufacturing sector over last 9 years. For the 9-year period between 2008-2016, Penang recorded an investment of RM 59 billion, a 73% increase compared to the previous 9 years period between 1999 to 2007 of RM 34 billion. More interestingly, our domestic investment has increased by 178% where we recorded RM19.5 billion domestic investment in the period of 2008-2016 compared to RM7.0 billion in the corresponding period of 1999-2007.
The food and halal industry has showed continued growth in Penang. Today, Penang International Halal Hub (PIHH) is now Malaysia’s second leading Halal hub after Selangor. The Harvard Business Review, in 2016, estimates food demand to increase between 59% to 98% by 2050. Specifically, for oatmeal, global market size for the product is expected to reach USD2.5 billion by 2022 according to Zion Market Research. The Halal industry will be expected to reach USD 3.5 trillion.
RM120 million Re-investments by Federal Oats Mills Sdn Bhd
I wish to congratulate Federal Oats Mills Sdn Bhd which will be investing RM120 million into their new plant in Penang Science Park – North under the Penang International Halal Hub Food Zone. The new oats mill facility will be built on 6.7 acres of land, and the expansion will cater to the growing business demand of Federal Oats products under the popular brand of Captain Oats. In line with the global trend towards smart manufacturing in the new digital horizon of the Fourth Industrial Revolution, this facility will be a state-of-the-art design with fully automated production and packing systems.
The company celebrated its 50th Anniversary milestone in 2015, which shows how much the company has grown and expanded over the years. Currently located at Mak Mandin Industrial Park, Federal Oats Mills is the only oat milling plant in South East Asia. Phase 1 of this expansion project will be completed in 2019, just in time for the company’s 55th anniversary, while the entire expansion is estimated to be completed in 2025, which will mark its 60th anniversary. But, it is still very young at heart, as I was informed that the office will incorporate a modern work environment, open concept area for the millennials, and also an outdoor rooftop garden area for social activities and relaxation.
Under the leadership of Mr. Chew Soo Eng, Managing Director; Mr. Michael Chew, Executive Director; and Ms. Tan Kim Choo, General Manager, the company has and will continue to achieve greater heights. It is truly a ‘Powered in Penang’ brand as well – and the company is currently exporting to more than 35 countries, spanning S.E. Asia, South Asia, Middle East, Africa and Greater China. The company has also put the trust of management of the company into Ms. Tan, who is in the group of growing female leaders in both the public and private sectors in Penang.
This ground-breaking ceremony today further strengthens Penang as an established destination of choice for global investors. I wish to once again congratulate Federal Oats Mills on this ground-breaking ceremony and look forward to the completion of your facility. The State Government through agencies such as InvestPenang and Penang Development Corporation will continue to facilitate, promote and further support the growth and development of the industry.