Speech by Chief Minister of Penang
At The Ground Breaking Ceremony by Hotayi Electronics (M) Sdn Bhd Plot 304a, Batu Kawan Industrial Park, Penang
16 June 2017
RM 1 BILLION INVESTMENT BY TAIWANESE ELECTRONICS COMPANY, HOTAYI, IN BATU KAWAN
Good morning. I am pleased to be present today at the ground breaking ceremony of Hotayi (M) Sdn Bhd at Batu Kawan Industrial Park. This Foreign Direct Investment (FDI) by an established integrated manufacturing organization marks the continued growth of investments into Penang.
Penang to benefit from E&E Sector Growth
The World Semiconductor Trade Statistics (WSTS) has projected that the global semiconductor sales will increase by 11.5% to reach USD377.8 billion this year, and the Asia Pacific region will experience the highest growth of 12.4%. Worldwide sales of semiconductors from the first quarter of 2017 were US $92.6 billion, up 18.1 percent compared to the first quarter of 2016.
Penang which contributes 8% of back-end semiconductor output globally is set to benefit from the steady growth of the industry, catalyzed by Industry 4.0 revolution. In 2016, E&E contributed 40% out of Penang’s RM4.3 billion investments.
RM1 billion Re-investments by Hotayi
Established in 1992, with 25 years of excellence, the Hotayi Penang facility has grown and is well-known in the global E&E business landscape. As an Electronics manufacturing services (EMS) company expanding to Vertical Integration (VI) Manufacturing, which provides total solution to customer, Hotayi demonstrated its confidence in Penang by making this RM1 billion re-investment in the Batu Kawan Industrial Park.
Following strong global growth in the semi-conductor industry, with companies growing by at least and some as much as 80%, Hotayi Electronics (M) Sdn Bhd will be making a total re-investment of RM1 billion. Phase 1 will involve the construction of a 250,000 sq ft facility, which is targeted to begin operation in Q1 2018. This development is expected to increase Hotayi’s total employment to 1,450 jobs including new high-income jobs in the field of mechanical and technical engineering, from the current headcount of 450.
The new facility in Batu Kawan will also adopt Industry 4.0 and smart manufacturing concept. At the same time this facility will incorporate eco-friendly qualities, with its environmental and energy-conserving elements, which is in line with our vision for a Cleaner and Greener Penang.
As a responsible and caring employer, from a 100% foreign-owned company in 1992, the company employees now own 30% of the company’s shares. This re-investment will also further improve the eco-system in Batu Kawan Industrial Park and will benefit the local SMEs, especially those in the SME Village and SME clusters.
Hotayi also shares the vision of the State Government to nurture talents especially in the field of STEM (Science, Technology, Engineering & Mathematics). Hotayi Electronics has been very supportive towards the State’s projects to spur interest among Penang’s young generation for STEM, donating RM25,000 towards the Tech Dome Penang Project. The State government is committed to making Penang a center of excellence (COE) for science and technology through the RM 20 million Penang Science Café, RM 28 million Penang Tech Dome, RM23 million Penang @CAT, the RM 6 million STEM Karpal Singh Learning Centre and the new RM 3 million Penang Digital Library – first 24-hour digital library.
The Penang state government has allocated RM6 million to the Malaysian Meister Program (MMP), previously named German Dual Vocational Training (GDVT), to train our skilled talents in Penang based on the German Training Standards – as a new benchmark for high-quality training in Malaysia and the world. This will increase our talent pool in the vocational and technical field – where the state government sponsors the tuition fee while the participating employers pay these students at least at the minimum wage of RM1,000 – a scenario where students get paid to study and get equipped with better skills.
Penang is an established location of choice for global investors. I wish to once again congratulate Hotayi 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.