RENESAS DINNER

SPEECH BY CHIEF MINISTER OF PENANG

AT RENESAS DINNER

ON 3TH NOVEMBER 2017 (SPICE)

A very good evening everyone.

Ladies and gentlemen.

First and foremost, I feel very honoured to be invited join in this event celebrating the 45 Anniversary for Renesas Semiconductor (Malaysia) Sdn. Bhd.

I take this opportunity to congratulate Renesas Semiconductor (Malaysia) Sdn. Bhd. or RSM on its 45th Anniversary. Originally known as Hitachi Semiconductor, it is one of the ‘Eight Samurai’ who is among the pioneer companies who came to Bayan Lepas’s silicon valley in 1972.

Starting with only 200 employees when you first set up the plant in Bayan Lepas. Now you have several subsidiaries including Renesas Semiconductor Design and Renesas Semiconductor Kulim plant that bring the total workforce to around 2000 of which 1600 is in Penang. Your design subsidiary is a testimony to your high technology and knowledge-based skill sets. Indirectly this enhances your reputation as a key investor and reaffirms your commitment to Penang growing economy. Renesas Penang has invested approximately a total amount of RM 600 million from the year 2015 into 2019.

As Renesas continues to grow in the electronics industry in Penang, the Penang State Government is happy that its has created many employment opportunities for the Penangites. Your presence in Penang has set a good example and attracted other multi-national companies to invest in Penang.

Through the 45 years, your contribution to the local society in welfare programs and corporate social responsibility especially to the Malaysian Red Crescent Society in Penang and community and environment projects are highly commendable.

Ladies and gentlemen,

Let me share with you something about Malaysia-Japan relationship in industrialization. This year marks the 60th Anniversary of the establishment of the Malaysia-Japan diplomatic relationship. This relationship has brought about many benefits to Penang. Generous contributions of the Japanese companies in Penang in the 40 decades since the Free Trade Zone started in Penang have benefited both Penangites, the community and Japanese companies.

Last August, I was at the launching of the Tech Dome Penang in conjunction with the Japanese Technology Weekend together with Kiyoshi Itoi san, the Consulate-General of Japan in Penang who is also here this evening. That is yet another milestone in Japanese companies’ contributions to Penang in the area of Japanese work culture, advanced scientific knowledge and technology. I am very happy to note that Renesas Semiconductor is one of the companies that participated in the Tech Dome Penang program. Thank you very much RSM for your participation.

Ladies and gentlemen,

Penang is an industrial state that depend on manufacturing and services industry. Penang contributes about one third of Malaysia’s trade surplus and one quarter of Malaysia’s total imports and exports. As free trade and open market is important for Penang, Japan is one of Malaysia's top trading partner.

Today, Penang is one of the global hubs in the electronics and electrical manufacturing and plays host to over 300 multinational companies. Penang has also recorded strong investment in manufacturing sector over the last 9 years.
I am also proud that Malaysia’s GDP by States, Penang’s GDP growth in 2016 was 5.6%, above the national average of 4.2%. Penang also attracted 1/3 of the total E&E investments into Malaysia. In the latest MIDA (Malaysian Investment Development Authority) announcement last week, Penang topped the national list with total approved investments of RM7.7 billion in the manufacturing sector for the first half of 2017, it is also more than the RM4.3 billion investments recorded for the whole of 2016.

Penang’s 1H 2017 total approved manufacturing investments contributed to 45 per cent of the total RM17 billion investments approved nationwide. For the 9.5-years period between 2008- June 2017, Penang recorded an investment of RM 67 billion, a 81.6% increase compared to the previous 10 years period between 1998 to 2007 of RM 37 billion.

Ladies and gentlemen,

On behalf of the Penang State, I would like to say a big thank you to all management and staff of RSM as well as to Renesas main office, Renesas Electronics Corporation (REL) in Japan for your tremendous support and contributions to Penang’s economy for the past 45 years. Please continue to support Penang for coming years. I wish RSM all the very best in your journey to excel and become an exemplary organization in all aspects.

Thank you.