THE SIGNING CEREMON OF SPA BETWEEN JLL MALAYSIA SDN BHD AND PENANG DEVELOPMENT CORPORATION (PDC)
Speech by Chief Minister of Penang
At The Signing Ceremony – SPA between JLL Malaysia Sdn Bhd and Penang Development Corporation (PDC)
26 February 2018
Level 28, Komtar, Penang
Good morning.
I am pleased to be present today at the signing ceremony of SPA between JLL Malaysia Sdn Bhd and Penang Development Corporation (PDC). Continuing the momentum of robust investment and sustained economic growth in Penang, we are pleased to welcome JLL Malaysia Sdn Bhd. Its parent company is Japan Lifeline, a Japan-headquartered leading manufacturer of medical devices specialized in the cardiovascular field.
Penang - A Preferred Hub for Investment
Penang is the second top recipient of approved manufacturing investment in the first nine months of 2017 valued at RM9.9 billion, which is way ahead of RM4.3 billion recorded for the whole of 2016. In the corresponding period, Penang also attracted the largest FDI among states in Malaysia, valued at RM8 billion. From 2008-June 2017, Japanese investors are the third largest manufacturing FDI contributor to Penang with investment value of RM5.33 billion after USA and EU. This also signifies that Japan is Penang’s largest Asian region FDI contributor. Japanese investment into Penang also has a long history where two of Penang’s ‘8 Samurai’ pioneer investors originating from Japan. Both companies Hitachi, which now operates as Renases, and Clarion, are still operating here in Penang.
Penang continues to lead in the investment of E&E sector, and our diversification into fast growing sectors such as medical devices have continued to strengthen Penang’s value proposition to investors. Penang is home to 1/3 of medical devices companies in Malaysia and Penang also accounted for 1/3 of the total value of medical devices export from Malaysia (RM17.8 billion in 2016).
Japan Lifeline in Penang
We are proud to announce that JLL Malaysia Sdn Bhd will be making a total investment of about RM70 million in North Penang Science Park. This is the first time Japan Lifeline is building their factory outside Japan. This will create 50 high income jobs in the specialized medical device manufacturing at its initial stage. Construction is expected to be completed by Q4 2019, and we expect to see JLL starting their operations by early 2020.
JLL will be manufacturing and exporting medical devices for cardiovascular diseases. Exports will be mainly to the Japanese market. I understand that the company also has targets for future expansion and plans to expand its exports to the global market. In 2017, the Association of Malaysian Medical Industries estimated an export growth of 12% valued at RM17.74 billion, and we expect Japan Lifeline to contribute positively to Malaysia’s medical device export growth. Being in the medical device industry, which is more resilient even in the challenging economic landscape, we foresee a more diversified and stronger base for Penang’s economy. Furthermore, with the presence of medical devices companies like JLL, Penang is also proud to be part of the global medical devices manufacturing, delivering high quality products to patients worldwide.
JLL’s presence in Penang is also a testament that Penang continues to gain the confidence of foreign investors, especially those from Japan. I also understand from JLL that Texchem Resources Berhad, a Japanese-led conglomerate listed in Bursa Malaysia, has facilitated their smooth investment in Penang. On behalf of the State, I wish to extend my appreciation to Texchem Resources for their support. This also reflects the confidence of existing investors in the future of Penang.
Closing Remark
Penang as an entrepreneurial state continues to be a destination of choice for investments. I wish to once again welcome JLL and look forward for the continued growth of the company in Penang. 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.
Thank you.