Speech by Chief Minister of Penang
Investment by Scandinavian IBS (Sweden) at Penang Science Park
14 February 2017
Ladies and Gentlemen
Good morning. I am pleased to announce a new investment from Scandinavian IBS (SIBS), a Sweden based Industrialized Building System (IBS) company in Penang Science Park. This is another reflection of the consistent inflow of foreign investments into Penang, a strong signal of confidence in Penang as a location of choice for investors.
Penang investment flows
Despite the challenging economic landscape, Penang is still recording stable inflows of foreign direct investments (FDIs) and domestic investments. Penang has consistently recorded a higher record of FDIs into the state compared to domestic investments. In the period of 2008-2015, Penang’s FDI stood at RM36.7 billion which is twice the amount of domestic investments recorded at RM18.3 billion. This total amount of RM 55 billion is 90% higher than the RM 29 billion recorded in the similar 8 year period from 2008 – 2015. In terms of FDI from Sweden, the total Swedish investment in Penang for the period of 2008 to Sept 2016 is worth over RM29 million.
Industrialized Building System (IBS) Market
The Industrialised Building System (IBS) is successfully adopted in countries like Sweden, Finland, Japan, Germany and Singapore where off-site technologies had eventually modernised and improved the industry. IBS is the way forward for housing and construction industry and it is also a focus of the Malaysian Industrial Development Board (MIDA) and the Construction Industry Development Board (CIDB).
Sweden is one of the countries in the world that leads in the IBS technology. This investment by SIBS is in line with Malaysian Industrial Development Authority’s (MIDA) target to attract 100 IBS companies into Malaysia by 2020. These industrial building modules are of high standards, built with the latest technology and are suitable for various climates. Many large construction companies have acknowledged the benefits of lower costs and higher efficiency by using IBS, and in recent years more.
Scandinavian IBS Investment – Modern IBS Manufacturing and R&D Facility
Scandinavian IBS (SIBS) is a Sweden based company involved in the manufacturing of Industrialized Building System (IBS), primarily pre-casted apartment modules. The investment by Scandinavian IBS from Sweden stands at RM100 million for a facility to manufacture Industrialized Building System (pre-casted apartment units), which is the production of steel frame modular multi-dwelling family houses for the Swedish and European market. The company’s 150,000 sq. ft. facility is located at a 7.2 acres of land in Penang Science Park. It is expected that this facility in Penang will produce an estimated 500,000 sq. ft. of apartment modules per year. This is one of the largest Swedish investments in Penang.
SIBS joins the list of other notable Swedish investors in Penang such as Nolek, Nolata, Monitor ERP and soon-to-be launched Ikea.
I am pleased to note that SIBS’ investment does not only includes a modern and advanced manufacturing facility with robotics and automated machinery, but also a state-of-the art Research and Development (R&D) facility, which will be focused on Production Process and Building Material. The production facility is also environmental friendly with no production chimneys, clean production process and has low energy consumption.
This investment is expected to create about 180 new jobs in Penang, with spill over benefits to local small medium enterprises (SMEs).
The facility is expected to begin construction in the first quarter of this year and to start operating end of this year. The company’s products will cater to the export market, which contributes to Malaysia’s external trade earnings.
Penang welcomes SIBS
The State Government welcomes Scandinavian IBS to Penang which will provide high manufacturing jobs, with spill over effects to SMEs in the building industry. This investment is a clear testament of the continuous confidence of investors in Penang. We hope, with SIBS and other Swedish companies such as IKEA, Nolek, Nolato and Monitor ERP in Penang, we will see more businesses from Sweden. I would also like to take the opportunity to thank InvestPenang, Penang Development Corporation (PDC), MIDA and other agencies for their continuous effort to make Penang a destination of choice for investors.