GRAND OPENING CEREMONY OF SUSTIO SDN BHD

SPEECH BY YAB TUAN CHOW KON YEOW

THE CHIEF MINISTER OF PENANG

GRAND OPENING CEREMONY OF SUSTIO SDN BHD

Sustio Sdn Bhd, Batu Kawan Industrial Park

9 MAY 2022

 

 

YB. Dato’ Haji Abdul Halim bin Haji Hussain

Penang State EXCO for Trade, Industry and Entrepreneurial Development

His Excellency Mr. Lee Chi Beom

Ambassador of the Republic of Korea in Malaysia

Ms. Lim Bee Vian

Deputy Chief Executive Officer (DCEO), Investment Development, of the Malaysian Investment Development Authority (MIDA)

YBhg. Dato’ Seri Lee Kah Choon

Special Investment Advisor to the Chief Minister of Penang

YBhg. Dato’ Loo Lee Lian

Chief Executive Officer of InvestPenang

YBrs. Tuan Haji Baderul Amin bin Abdul Hamid

City Secretary of MBSP

Mr. Chun Se Ho

Chairman of SIMMTECH

Mr. Chun Jeffery

Southeast Asia Managing Director of SIMMTECH

Members of the press,

Distinguished guests,

Ladies and gentlemen,

Good morning.

To begin, I would like to congratulate Simmtech on the opening of its Malaysia-based subsidiary, Sustio Sdn Bhd, in Batu Kawan Industrial Park, Penang. Being the group’s 8th factory along with its operation in Korea, China and Japan, Penang is proud to house Simmtech’s first manufacturing facility in Southeast Asia. My heartiest congratulation to Simmtech’s team and all involved for the hard work and dedication in bringing this to fruition.

I still remember the announcement of Simmtech’s entrance in July last year, located at an 18-acre site here. Today, I am glad to witness Sustio’s grand opening ceremony whereby the site construction was completed within 9 months and ready to run mass production. This has greatly demonstrated the commendable work by all involved in the construction progress.

Penang is pleased to see an emergence of players along the semiconductor supply chain, enabling the State to reap a myriad of benefits from the increased robustness of its well-developed industrial ecosystem.

Being the first major Korean investor from the semiconductor industry in Penang and a critical supplier for memory module PCB and substrate, the presence of Sustio is poised to bring greater opportunities for supply chain resiliency.

I understand that Sustio has already employed more than 700 workforce and is expected to reach its full employment of more than 1,000 employees by next year. This has undeniably created an avenue for the local talent to be exposed to the cutting-edge technology in Sustio and to be trained by this top-notch player in PCB and substrate industry.

The site in Penang will also increase the total capacity of Simmtech’s substrate and PCB by 20%, a timely ramping up to address the heightened industry demand.

Ladies & gentlemen,

Dubbed as the Silicon Valley of the East, Penang’s robust industrial ecosystem and conducive business environment are well attested by sustained interests from companies to invest into the State.

Penang is the most important manufacturing base for electrical and electronic (E&E) products within Malaysia, and is among the most vibrant hubs globally, accounted for over 5% of global semiconductor sales.

The State's stellar performance in 2021 was demonstrated when it received an all-time high of RM76.2 billion in total approved manufacturing investments, a record that significantly outperformed Penang's past performances. Foreign direct investments (FDI) accounted for 98 percent of total investment inflows, making Penang the country's top manufacturing FDI recipient, capturing 41% of the country’s total FDI during the period.

In terms of trade performance, Penang’s exports climbed 14% year-on-year in 2021, reaching its all-time high of RM354 billion and making it the nation's highest contributor in exports. Notably, Penang’s exports are dominated by the electrical and electronic (E&E) products.

Ladies & gentlemen,

Celebrating the 50th anniversary of Penang’s industrialisation this year, Penang has witnessed the establishment of global industry leaders over the past decades.

I would like to take this opportunity to express the State Government’s appreciation to the Federal Government, particularly the Ministry of International Trade and Industry (MITI) and the Malaysian Investment Development Authority (MIDA) for their continued support of Penang's efforts to maintain our position as a preferred investment destination. To all the investors, thank you for placing sustained confidence in Penang.

The State, via InvestPenang and other relevant state agencies, is committed in ensuring a versatile talent pool, supportive infrastructure and resilient industry clusters. These are among the imperatives for effective supply chain management and sustained competitiveness, all of which are believed to add value on Sustio’s operation in Penang.

I look forward to a long-lasting business relationship with Sustio. Once again, my hearty congratulations to Sustio on the new facility and I wish you great success!

Thank you.