Signing Ceremony – Tenancy Agreement between Jabil Sdn Bhd (Jabil Global Business Centre) and Penang Development Corporation (PDC) at GBS@Mayang
Remarks by YAB Lim Guan Eng, Chief Minister of Penang
Chief Minister’s Office, Level 28, Komtar, Penang
11 January 2017
Good afternoon. I am pleased to be present today at the signing ceremony of the tenancy agreement at Mayang Mall between Jabil Sdn Bhd (Jabil Global Business Centre (GBC)) and Penang Development Corporation (PDC). Continuing the momentum of robust investment and sustained economic growth in Penang, we are pleased to welcome the Global Business Centre of Jabil, the world’s third largest electronic manufacturing services provider, to GBS@Mayang, PDC’s new premier office landmark.
Penang’s Dynamic Investment and Economic Performance
Penang continues to achieve sustained economic growth. We achieved GDP growth of 5.6% in 2016, outperforming the national GDP of 4.2%. In 2017, Penang is expected to exceed 6% GDP growth. In 2016, Penang also recorded the second largest investments for Global Establishments for Services or ‘Principal Hub’ with an investment value of RM4.1 billion, after Kuala Lumpur. More recently, MIDA announced Penang as the second top recipient of approved manufacturing investment in first nine months of 2017 valued at RM9.9 billion. Penang’s RM9.9 billion investment record was significant in two ways:
1. The third quarter results is already ahead of the RM 4.3 billion manufacturing investment recorded for the whole of 2016.
2. Penang attracted the largest FDI in Malaysia with a record of RM8 billion in the first nine months of 2017.
Jabil Global Business Centre – Among the Largest GBS in Penang
We are proud to announce that Jabil will be expanding and consolidating their Global Business Centre to GBS@Mayang in May 2018, occupying 2 floors covering over 72,700 square feet, making Jabil the single largest major tenant at GBS@Mayang. Jabil GBC currently employs 850 employees making it among the largest GBS in Penang (by headcount number), from 200 during the GBC’s beginning in 2009. I am also pleased to note that Jabil GBC is planning to grow its headcount to 1,000 employees in high value jobs within the next 2-3 years.
Jabil's investment in Penang will create more high-income jobs in high tech professional fields that will promote Penang and Malaysia’s development through exposure to new technologies and human capital development. As the State has emphasized, “while data is king, talent is everything”. Investment is driven to Penang because of our investment in human capital by the state government and also MNCs like Jabil providing further knowledge and skillsets to upgrade our talent.
The investments by US MNCs such as Jabil will definitely strengthen US FDI presence in Penang where currently US investors are the largest FDI contributors into Penang with about 25% of total manufacturing FDI. From 2008-June 2017, US MIDA approved manufacturing FDI in Penang was valued at RM14.2 billion. In MIDA’s statement on Malaysia’s investment performance for first nine months of 2017, MIDA also highlighted that 70.4% of foreign investments in the manufacturing sector involved expansion or diversification by renowned existing investors. Jabil’s expansion today exemplifies this trend highlighted by MIDA. Jabil Penang was incorporated in 1995, now occupies close to one million sq. ft. combined of several facilities in Bayan Lepas, and today they added another 72,700 sq ft at GBS@Mayang today.
Jabil GBC in Penang provides a holistic range of services including IT, finance and supply chain management. The capabilities in Jabil GBC will be enhanced with the Robotic Process Automation (RPA), Intelligent Digital Supply Chain, development of Internet of Things (IOT) technologies and automation for Jabil’s plants and talent enhancement program in data analysis – the Data Scientist Program.
As a business-friendly and progressive state, Penang responded to the needs of investors for premium MSC-designated office space. Last year, on April 7th, I announced the launch of GBS@Mayang – a transformation of the former Mayang Mall into a premier GBS business centre in line with MDeC’s MSC Malaysia Cybercentre standards. I wish to congratulate PDC and investPenang in ensuring the successful upgrading of GBS@Mayang.
We are excited with Jabil’s expansion in GBS@Mayang, and I am also excited that several more marquee names are already/will be operating in this building – providing high value knowledge-based jobs in Penang. The high occupancy rates of many premier office towers in Penang of between 86%-100% as reported by Knight Frank 2016 Real Estate Highlights also reflects on the robust GBS and business activities taking place in the state.
Penang as an entrepreneurial state continues to be a destination of choice for investments – in the twin growth sectors of manufacturing and services. We will continue to work hard to promote good governance and build up human talent. I wish to once again welcome Jabil to GBS@Mayang and look forward for the continued growth of the company in Penang.