SPEECH BY YAB TUAN CHOW KON YEOW

THE CHIEF MINISTER OF PENANG

 

GRAND OPENING OF SMITH+NEPHEW PENANG’S MANUFACTURING FACILITY

28 JUNE 2022
BATU KAWAN INDUSTRIAL PARK, PENANG

 

 

YBhg Dato’ Haji Abdul Halim bin Haji Hussain

Penang State EXCO for Trade and Industry and Entrepreneurial Development

 

YBhg Dato’ Seri Lee Kah Choon

Special Investment Adviser to the Chief Minister of Penang

YBhg Dato’ Arham Abdul Rahman

Chief Executive Officer, Malaysian Investment Development Authority (MIDA)

YBhg Dato’ Loo Lee Lian

Chief Executive Officer of InvestPenang

Mr. Deepak Nath

Chief Executive Officer of Smith + Nephew

 

 

Mr. Mark Arthun

Managing Director & Site Leader of Smith+Nephew Operations Malaysia Sdn Bhd

Distinguished guests, Members of the press, Ladies and gentlemen,

Good morning, everyone.

It is an honour to be here this morning for the grand opening of Smith & Nephew’s manufacturing facility in Batu Kawan Industrial Park, Penang. Being a leading MedTech company that designs technology to take the limits off living, Penang is excited and proud to welcome the presence of Smith & Nephew here. My sincerest congratulations to the Smith & Nephew team and all those involved for your dedication and hard work in achieving this milestone.

With global revenues of US$5.2 billion in 2021, Smith & Nephew is among the 30 largest medical device firms in the world.

It is a leading global MedTech company that specialises in the Orthopaedics, Sports Medicine, Ear, Nose & Throat and Advanced Wound Management sub-segments. Supported by over 18,000 employees worldwide, Smith & Nephew has presence in more than 100 countries.

This 250,000 square-foot facility in Penang will be Smith & Nephew’s first manufacturing facility in Southeast Asia, with a focus on the orthopaedics franchise to be used by healthcare professionals in Asia Pacific and other parts of the world for their patients.

Driven by innovation and cutting-edge technologies, the medical device segment is a critical and fast-growing segment within the healthcare industry. It is estimated that by 2023, the Asia Pacific Medtech market will exceed that of the European Union and become the second largest in the world.

Consequently, a plethora of industry leaders hope to establish manufacturing facilities in Asia to meet the rapidly growing demand, with Penang being one of the preferred locations.

Dubbed as the Silicon Valley of the East, Penang’s robust industrial ecosystem not only enables us to accelerate the breakthroughs in the electrical and electronics (E&E) industry, but further entrench our position as a medical device hub in the region. I am proud to note that Penang has the highest concentrations of medical technology companies in Malaysia and Southeast Asia.

Penang is pleased to be the choice location for Smith & Nephew, serving as an acknowledgement of the skilled talent, well-developed infrastructure and resilient environment the state holds. With Smith & Nephew’s investment, it is expected to create 800 high value jobs in the coming years, further enriching the local community in skills and opportunities in manufacturing, engineering and supply chain.

Ladies & gentlemen,

As the economic powerhouse of Malaysia, Penang is one of the country’s key contributors in investment inflows and external trade. The state’s commendable performance that continues to punch above our weight is testament to our resilient industrial ecosystem, placing us at the forefront of industrialisation.

In terms of investment performance, Penang has garnered a record high of RM76.2 billion in total approved manufacturing investments in 2021, a record which significantly exceeds our past performances. In particular, foreign direct investments (FDI) contributed 98% of the total investment inflows, making Penang the highest manufacturing FDI recipient in Malaysia.

In the first quarter of 2022, Penang is among the top contributors for the country, clocking in RM6.3 billion of approved manufacturing investments.

On the trade front, Penang topped the nation’s list in 2021 with an all-time high export value of RM354 billion. Among which, E&E products and medical devices made up about 80% of our total exports.

Ladies & gentlemen,

I would like to take this opportunity to express my appreciation to the Malaysian Investment Development Authority (MIDA), InvestPenang and Penang Development Corporation (PDC) for your synergistic efforts in engaging investors and securing the project.

Celebrating the 50^th anniversary of Penang’s industrialisation, the state, via InvestPenang and other relevant state machineries, is committed in providing unwavering support to the investors, while pledging to hold sustainability as one of our key priorities to unleash greater potential for the next 50 years and beyond.

On this note, I am pleased to share that Smith & Nephew has already been demonstrating its purpose of Life Unlimited well before it goes live and we can clearly see their level of commitment to Malaysia, Penang and the local community. Notably, the company has demonstrated exemplary conduct in sustainable operations. The site in Penang has successfully achieved its zero waste to landfill goal four years ahead of its corporate sustainability target. Such efforts have been recognised by the United Nations Global Compact, with the company picking up the 2021 winner’s award for Sustainable Development Goal Benchmark 4: Zero Waste to Landfill and Incineration.

Penang looks forward to a long-lasting business relationship with Smith & Nephew. Once again, my sincerest congratulations to Smith & Nephew on the new facility and wishing you all great success!

Thank you.