Official Launch of xFusion’s Global Supply Centre in Penang
SPEECH BY THE CHIEF MINISTER OF PENANG YAB TUAN CHOW KON YEOW
Official Launch of xFusion’s Global Supply Centre in Penang
1 September 2023
NationGate Solution (M) Sdn Bhd, Perai, Penang
Good morning to all of you.
I am pleased to be here for the official launch of xFusion International Pte Ltd’s Global Supply Centre in Penang, with NationGate Holdings Berhad as the strategic partner. I wish to congratulate xFusion and NationGate together with others who are involved, for turning this great plan into reality today.
Being a leading global provider of computing power infrastructure and services, xFusion has established a significant global presence with 11 research institutes, 9 regional offices and 5 major supply centres, working with over 7,000 partners. To date, xFusion’s clients span across 130 countries and regions, including 211 Fortune Global 500 companies and covering telecommunications, finance, internet, governments and other industries.
Ladies & Gentlemen,
This new Global Supply Centre in Penang is enabled by xFusion and its strategic partner, NationGate, a Penang-based electronics manufacturing services provider. Established in 2010, NationGate has a long history of serving the companies in Penang across a wide range of industries. The company focuses on the assembly and testing of electronic components and products such as completed printed circuit boards, semi-finished sub-assemblies and fully assembled electronic products as well as semiconductor devices.
It is indeed heartening to witness such collaborative efforts come to fruition. This speaks volumes of Penang’s conducive environment which is capable of nurturing the growth of our homegrown companies, hence accelerating their integration into the global supply chain.
I am hopeful for this new Global Supply Centre to strengthen xFusion worldwide supply network, while ensuring continuous and consistent delivery of products and services globally. With an investment value of RM1.7 billion for the next 3 years, this state-of-the-art centre is poised to have an expected production capacity of over 150,000 units of servers annually.
Ladies and gentlemen,
As the economic powerhouse of Malaysia, Penang is one of the country’s key contributors in investment inflows and external trade.
In 2022, the State demonstrated our stellar performance by securing RM13.7 billion in total approved manufacturing investments, of which 71 percent was contributed by foreign direct investments (FDI). Having said that, we are seeing positive growth in the domestic direct investments (DDI), with 121 percent year-on-year hike, reaching RM4 billion in the said year. In January to March 2023, Penang is the second highest contributor among all states, with RM3.3 billion recorded in approved manufacturing investments.
On the trade front, Penang topped the nation’s list in 2022 with an all-time high export of RM463 billion and generated a commendable trade surplus of RM170 billion. Notably, exports of the Electrical and Electronics (E&E) products represented the largest chunk of the state’s exports, constituting a substantial 74 percent share in the said year.
The state’s performance that continues to punch above its weight is testament of our resilient industrial ecosystem, anchoring our position as the Silicon Valley of the East. We are pleased to have active participation from both foreign and local companies, which paved the way for sustainable industry development.
Ladies and gentlemen,
The convergence of technologies will lead the digitalisation journey of the industry in the coming decades. Home to a thriving ecosystem of E&E players, Penang is often lauded for our expertise along the value chain. This allows for greater flexibility and responsiveness in the supply chain, enabling companies to quickly adapt to changing market conditions and customer needs.
Holding on to that, Penang is committed to further bolster the industrial clusters, while promote the growth of emerging sectors. On this note, we are pleased to be the choice location for xFusion. I am confident that this collaboration between xFusion and NationGate will translate into immense potential which will only strengthen Penang’s digital infrastructure and connectivity.
Being a land filled with opportunities and connections, Penang welcomes all industry leaders to leverage on what the state has to offer. The state government, via InvestPenang and other relevant state machineries, strives to provide unwavering support to investors, facilitating the implementation of their next generation technologies and growth strategies.
Before I end, I would like to take this opportunity to express my appreciation to the Malaysian Investment Development Authority (MIDA) and InvestPenang for their longstanding efforts in sustaining Penang’s position as a preferred location for investors.
Once again, my heartfelt congratulations to xFusion and NationGate for this new Global Supply Centre. I wish both companies continuous growth and success.
My best wishes to all.
Thank you.