Speech by Chief Minister of Penang
At The Official Opening of Solid State Lighting (SSL) Headquarter and R&D Center Building OSRAM Opto Semiconductor (M) Sdn Bhd
8 June 2017
Osram PEN 33, Bayan Lepas Industrial Park, Penang
Good morning. I am pleased to be present today at the Official Opening of OSRAM Opto Semiconductor (M) Sdn Bhd (Osram) Solid State Lighting (SSL) Headquarter and R&D Center Building. We are proud that in Osram’s quest in lighting the world, Osram has chosen Penang as a home outside Germany for the past 45 years. Osram, a major driver of innovation in the semiconductor opto sector, has continued expansion of their business in Penang, which is a strong rate of confidence in Penang.
Penang’s Growing Investments – FDI in E&E Sector
Osram’s expansion shows stable and steady flow of investments into Penang. In 2016, FDI from Germany worth RM404 million was recorded for Penang, and was the third largest among the foreign investments received. 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. Out of the RM59 billion approved investment recorded from 2008-2016, RM39.7 billion or 67% were foreign direct investments (FDI) from a diversified number of countries including from Germany.
Penang is also actively partaking in the Industry 4.0 initiatives, which revolves around big data, cloud computing, automation and data exchange and analysis. In line with globally best practices, the Penang government has allocated RM4 million to the German Dual Vocational Training (GDVT), to increase our talent pool in Penang based on the German Training Standards – as a new benchmark for high-quality training in Malaysia and the world.
The World Semiconductor Trade Statistics (WSTS) has announced that worldwide sales of semiconductors reached USD30.9 billion for the month of March 2017, an increase of 18.1% compared to the March 2016 total of USD26.2 billion and 1.6% more than the February 2017 total of $30.4 billion. In terms of LED market growth, Radiant Insights forecasts that LED demand will grow by a CAGR (Compound Annual Growth Rate) of 29% per year through 2020 to reach USD63.1 billion by 2020 which Osram will play a significant role.
Meanwhile, Malaysia’s E&E export in Jan-March of 2017 increased 21.3% year-on-year, to reach RM224.7 billion. In 2016, E&E contributed 40% out of Penang’s RM4.3 billion investments. And, we expect the investments to grow based in Bank Negara’s statement that private investment grew at a robust pace of 12.9% in Q1 2017 following continued capital spending in the services and manufacturing sectors.
On our part, the State government will also continue to work with the various stakeholders to increase our skilled human capital and interest among the young in science and technology though various initiatives such as the Penang @CAT, Penang Tech Dome, Penang Digital Library, Penang Science Café and the Penang Science Fair.
OSRAM’s first global Solid State Lighting HQ and R+D Center
Osram first set shop in Penang in 1972, under Siemens and is one of what is popularly known as ‘the 8 Samurais’. Like many of its contemporaries, it has grown leaps and bounds since then. Today, as one of the largest and best equipped OSRAM Opto Semiconductors production facilities in the world, with an overall floor space of 55,000 sq m, the Penang operations features cutting- edge technologies with matching capabilities, support by no less than 6,100 strong staff. OSRAM is indeed one of the largest single employers in this State.
I am thus particularly happy to be officiating this morning, the launch of another of Osram’s expansion project, the Solid State Lighting (SSL) Headquarters and R+D Center or codenamed PEN 33.
This center, covering a floor space of over 6,500 sq m will host OSRAM’s first global SSL Headquarter where global corporate activities in lighting and also advance research and development on LEDs (light emitting diodes) will be carried out. The company’s fame as a producer in world class LEDs with pioneering technologies in sectors such as mobile devices, infrared diodes, automotive lighting and semiconductor lasers will continue to enhance this SSL HQ and R+D Center.
I am proud that OSRAM has chosen Penang to establish this center of excellence and even prouder that the talents of Malaysia particularly those in Penang, are ready to match and make this project another feather in the cap for OSRAM.
In line with the aspiration of the State to increase more and better career opportunities for the Rakyat, this re-investment by OSRAM is expected to create another 300 high value jobs. This is only for direct jobs without taking into account knowledge transfer. More jobs will be created via downstream opportunities created for local supply chain support and vendors. This project is also made possible by the State’s Private- Public- Partnership initiative, where the Penang Development Corporation (PDC) injected RM15.5 mil in developing this building to lease to OSRAM.
In addition to the business sector, the German community has also established strong ties in Penang, and Penang has become an important centre for German presence in Malaysia. Several important German celebrations, including the annual Oktoberfest held by the German community have added more flavours and life into Penang. Penang, as an international intelligent city, will continue to enhance its liveability to make Penang a great place to work, live and play
Penang will continue to increase our convergence of public-private-people partnership to attract new investments and facilitate re-investments. This expansion by Osram is another boost to the ‘Powered in Penang’ brand. I congratulate Osram to this new facility and we look forward to Osram’s greater next 45 and more years of growth in Penang.