GRAND OPENING CEREMONY OF HOTAYI ELECTRONIC (M) SDN. BHD.
SPEECH BY CHIEF MINISTER OF PENANG
AT THE GRAND OPENING CEREMONY OF HOTAYI ELECTRONIC (M) SDN. BHD.
15 June 2019
Hotayi Batu Kawan
Good morning.
It gives me a great pleasure to be present today to witness the official opening ceremony of Hotayi Electronic (M) Sdn Bhd, here in Batu Kawan.
Hotayi started its first manufacturing plant at Bukit Tengah Penang in 1994 with just a small team of 50. I am pleased to see Hotayi has grown tremendously since then and the company has recognised Penang as an ideal location to embrace its next growth phase.
With a RM600m investment on its Phase 1 expansion of 350 thousand square feet electronics production facility at Batu Kawan here, Hotayi’s total workforce has increased to 850, from 350 previously. Hotayi may embark on phase 2 expansion in the next 1-2 years, which could bring its total estimated investment value in Batu Kawan to RM1 billion.
Like many companies with operations in Penang, Hotayi choose to reinvest and deepen its roots in the state. This has once again proved that the optimal combinations of robust supply chain, strong talent pool, well-established infrastructure, and the state’s support services to investors makes Penang a natural destination for investments.
In this regard, I am proud to highlight that based on MIDA’s latest figures, Penang has attracted RM8.8 billion of total approved manufacturing investment in January to March 2019, up 768% year-on-year and the first quarter 2019 investment already surpassed 2018’s full year total amount of RM5.8b. Notably, despite being the second smallest state in the country with only 1.8 million population, Penang leads other state in foreign direct investment (FDI), contributing 42% of Malaysia’s total manufacturing FDI in first quarter of 2019.
This stellar investment performance would also not have been possible if not for the hard work of the various federal ministries. I would like to thank MITI, especially MIDA who leads the investment promotion and works closely with investPenang in attracting high value investments to the State. I will also like to thank Ministry of Finance for granting & extending tax incentives to the high-tech new & re investment projects. The Finance Minister had personally met many of the industry captains to understand industry challenges and how MOF can assist to bring investment into Malaysia. The State government looks forward to continually work hand-in-hand with the federal government, in order to bring in more quality investments, jobs and prosperity to Penang.
Ladies and gentleman,
Despite of this great achievement, the State simply cannot afford to stay stagnant and complacent, particularly we are now in the highly uncertain period due to the latest development on the US-China trade war. On the global front, the worldwide semiconductor monthly sales recorded year-on-year contraction since early this year, widening from negative 6% in Jan to negative 15% in April, according to Semiconductor Industry Association, SIA. However, Malaysia’s E&E export performed significantly better with the month of April recorded year-on-year sales growth of 3.9%, suggested that trade diversion due to the trade war is happening.
Although the relatively robust performance, the State is cautiously optimistic in the very near-term, given that the trade and technology disputes between the US and China intensified lately. The State Government is monitoring the situation and working closely with both MNCs and local companies to identify the potential opportunities arising from the trade war, and at the same time, face the challenges ahead. Penang State will continue to focus on bringing in high quality investment that could create high value jobs and suit our industry profile. Simultaneously, the State Government is proactively taking initiatives to mitigate the negative impact arising from US-China trade war on SMEs and the overall local economy.
Last but not the least, I must also give credits to Hotayi, which designs its building that comprise of three elements - smart, green and nature – which I deem it set a good example for other companies. I was told that Hotayi has brought the latest technologies, such as car plate and facial recognitions, rainwater harvesting, and building management system into its facilities design. Hotayi’s principle and business profile welly spell out my Penang2030 vision of a “Family-Friendly Green and Smart State to Inspire the Nation”. It also in line with one of the themes in the Penang2030 vision that advocates “Upgrade the economy to raise household incomes” through the advanced readiness of manufacturing industries for the digital age and the green economy.
With that, I once again would like to congratulate Hotayi in this significant milestone of your company.
Thank you.