SPEECH BY YAB TUAN CHOW KON YEOW

THE CHIEF MINISTER OF PENANG

LEM INTERNATIONAL INAUGURATION CEREMONY

23 JUNE 2022

 

Her Excellency Madam Andrea Reichlin

Ambassador Extraordinary and Plenipotentiary of Switzerland to Malaysia

YBhg Dato’ Seri Lee Kah Choon

Special Investment Adviser to the Chief Minister of Penang

YBhg Dato’ Loo Lee Lian

Chief Executive Officer of InvestPenang

Mr. Andreas Huerlimann

Chairman of the Board of Directors, LEM Group

Mr. Frank Rehfeld

Chief Executive Officer of LEM Group

Ms. Rebecca Cullinan

Senior Vice-President of LEM Group

Distinguished guests,

Members of the press,

Ladies and gentlemen,

Good morning.

 

 

It is an honour for me to be here this morning at the inauguration ceremony of LEM International, a Swiss electrical measurement company. I would like to congratulate the Company, and everyone involved for reaching this important milestone today. On a more personal note, I would also like to welcome Her Excellency Madam Reichlin for her presence and support in yet another Swiss milestone in Penang.

LEM, which is strategically located in Penang Science Park North, has invested around RM70 million in plant construction and initial equipment. The new production plant in Penang focuses on the production and testing of integrated current sensors, serving the needs of automation, automotive and renewable energy industries. This project is expected to generate 500 jobs over the next 5 to 8 years.

A well-developed ecosystem and supply chain resiliency are among the key drivers that made Penang a viable location for the electrical and electronics (E&E) players. Being a leading company in electrical measurement that serves emerging and high-growth industries, I am confident that LEM will reap numerous benefits from its operation in Penang while complementing the state's presence on the global technology map.

Ladies & gentlemen,

As the economic powerhouse of Malaysia, Penang is one of the country’s key contributors in investment inflows and external trade.

In terms of investment performance, the state has garnered a record high of RM76.2 billion in total approved manufacturing investments in 2021, a figure that far exceeds previous years. In particular, Foreign Direct Investments (FDI) contributed 98% of the total investment inflows, making Penang the highest manufacturing FDI recipient in Malaysia. Penang is also one of the country's top contributors in the first quarter of 2022, with RM6.3 billion in approved manufacturing investments.

In terms of trade, Penang was ranked first in the country in 2021, with a record-breaking export value of RM354 billion. The state accounted for more than 5% of global semiconductor sales and nearly 60% of Malaysia's E&E exports, demonstrating its importance in the industry. Penang is also known as a regional hub for front-to-back-end equipment manufacturing, serving the needs of the E&E industry along the value chain.

I am truly delighted with such achievements. The state’s commendable performance, that continues to punch above its weight, is testament to our robust industrial ecosystem, placing us at the forefront of industrialisation and offering a competent platform for the industry players to participate and thrive.

Ladies & gentlemen,

Since our industrialisation journey began in 1972, Penang has made enormous strides. Celebrating the 50^th anniversary of Penang’s industrialisation this year, I am particularly proud to see that the state continues to gather momentum from new and existing investors. Our robust industrial ecosystem, strong talent pool and all-rounded state initiatives are among the imperatives for the state’s sustained excellence.

Holding onto the tagline ‘50 Years of Excellence and Beyond’, the state strives to uphold its conducive ecosystem capable of stimulating the advancement of strategic industries for the next 50 years and beyond.

I take this opportunity to thank the Malaysian Investment Development Authority (MIDA), InvestPenang, and Penang Development Corporation (PDC) for their collaborative efforts in attracting investors and securing the project.

The State Government, through InvestPenang, is committed to continuously facilitate and provide our full support towards the on-the-ground implementation of LEM in Penang. I look forward to seeing your new facility come to fruition and once again, my heartiest congratulation and best wishes to you all.

Thank you.