The Signing of Sales and Purchase Agreement between Penang Development Corporation and Aemulus Corporation Sdn Bhd

Speech by Chief Minister of Penang

At The Signing of Sales and Purchase Agreement between Penang Development Corporation and Aemulus Corporation Sdn Bhd

23 January 2017

I am pleased to be able to be present today to witness the Signing of the Sales and Purchase Agreement between Penang Development Corporation and Aemulus Corporation Sdn Bhd, which will mark another milestone in the growth and progress of this successful ‘Powered in Penang’ local semiconductor/ electrical and electronic company.

Penang’s investment and semiconductor industry growth

For the 8 year period of 2008-2015, Penang recorded an investment of RM55 billion, a 90% increase compared to the previous 8 year period of 2000 to 2007 of RM29 billion. Penang, although is the second smallest state in Malaysia, contributes 7% to Malaysia’s GDP.

The electrical and electronic industry (E&E) remains as among the most significant contributors to Penang’s economy. Although Malaysia’s export shows a muted growth of 0.5% year-on-year in 2016, Malaysian E&E exports grew by 7.8% in the month of November 2016, year-on-year. This sector also contributes 36.7% of the total Malaysia’s exports in January – November 2016, an increase of 1 percentage point, year-on-year, against the Malaysian export in the corresponding period in 2015.

Aemulus Berhad – Homegrown company success

Aemulus Corporation core expertise is in the design and development of Automated Test Equipment (ATE). ATE are used by semiconductor manufacturers and outsourced semiconductor assembly and test (OSAT) companies for testing semiconductors. The company also makes ATE for checking ICs used in LED automotive lighting, infotainment of luxurious cars, and wearable wellness devices. Currently, the ATE will be exported to Singapore, China, the United States, South Korea, the Philippines, Thailand, and Germany.

This 1.62 acres Aemulus facility which is located at FIZ 1 Bayan Lepas Industrial Park will benefit the E&E ecosystem and contribute positively to the economy of Penang. I understand that Aemulus will invest RM25 million with the targeted 150 of total headcount in the next three years for this project, with a 50,000 square feet corporate office and design center to be completed by December 2018 and a 6,000 square feet Leap-O-Pad Program. These expansion plans by Aemulus are in line with the State Government’s vision to propel Penang into advance manufacturing and to partake in the Industry 4.0, which in turn will move Penang up the value chain and provide higher paying jobs.

The Leap-O-Pad Program will also supplement the State Government’s efforts to spur the growth of startups in Penang. We have already invested RM23 million into @CAT accelerator and incubator programme at Wisma Yeap Chor Ee.

Closing

Aemulus has experienced impressive growth for a relatively young company. The company’s revenue grew from RM11 million in 2012 to RM32.6 million in 2015, a Cumulative Annual Growth Rate (CAGR) of 31.2% while its net profit grew from RM1 million in 2012 to RM9 million in 2015, a CAGR of 73%.

I wish to thank investPenang and Penang Development Corporation for their dedication and effort in attracting investments and in facilitating the needs of the industry in Penang. Once again, I wish to congratulate Aemulus for another historic mark in the growth of the company, and I look forward to the company fully utilising the RM25 million facility when it is completed.

Thank you.