THE OPENING OF PLEXUS APAC ADVANCED INNOVATION CENTER (DESIGN & DEVELOPMENT)

Speech by Chief Minister of Penang

At The Opening of Plexus APAC Advanced Innovation Center (Design & Development) @ Penang Design Center in Penang, Islandview Facility

18 September, 11.20 a.m.

1. Mr. YJ Lim, President of APAC Plexus

2. Mr. Randy Hrnicek, Vice President of Global Product Commercialization, Plexus Engineering Solutions

3. Mr. Victor Tan, Vice President of APAC Operations

4. Mr. YY Lim-Xia, Vice President of Penang Operations

5. MIDA representatives (to be advised)

6. Dato’ Loo Lee Lian, CEO, investPenang

7. Representatives from 6 universities (to be advised)

8. Ladies & Gentlemen

Good morning.

I am pleased to be invited to join you in this launching ceremony to mark the opening of your APAC Advanced Innovation Center (Design & Development) @ Penang Design Center in Penang. I would also like to take this opportunity to congratulate Plexus for the evolution of your Penang Design Center focusing on advanced innovation to further enhance design and development competencies, providing opportunity to expand the talent pool potentially up to 200 within the next 5 years. This is a significant milestone not only for Plexus Corporation globally but specifically for Plexus’ vast presence in Malaysia.

The AT Kearney Foreign Direct Investment Index 2018 indicated that the Asia Pacific region is among the most preferred location of choice for FDI. Penang expects to partake in attracting more investment flow and to continue our efforts to become the preferred destination of choice for investors. In 2017, Penang recorded the largest FDI inflow of MIDA approved manufacturing FDI among states in Malaysia, valued at RM8.5 billion. Penang is also the second top recipient of total manufacturing investment among states valued at RM10.8 billon. Domestic investment also grew steadily by 92% year-on-year to reach RM2.3 billion in 2017. Penang is now home to more than 300 MNCs and more than 3,000 supporting SMEs. All of these achievements are testament of the economic contribution by the multinational companies like Plexus, local large companies, small and medium enterprises and the State’s dedicated talents.

The Penang State Government values the investments already here and the many years of strong relationship that we have built. We look forward to more new investments and expansion of existing companies located here and that these companies will also bring with them new technologies, design & development (D&D) and research & development (R&D) capabilities. We are confident that Penang will remain a thriving growth hub for many years to come. This is in line with the Penang2030 aspirations aimed at making Penang a model for the nation and the world announced on 30 August 2018. Themed “A Family-focused Green and Smart State to Inspire the Nation”, the policy package is the state’s four-prong vision to increase liveability to enhance quality of life, upgrade the economy, empower the people to strengthen civic participation and invest in the built environment.

We also believe that the strategic collaboration with the State and industries will benefit all parties. I was informed that since 1979, Plexus has been partnering with companies to create products that builds a better world with a team of over 15,000 providing global design and development, supply chain solutions, new product introduction, manufacturing and aftermarket services. The newly expanded innovation center is Plexus’ only design center in the APAC Region and at full capacity, the 26,500 square feet office space can house up to 175 employees mostly performing design and development with complex products for the Healthcare/Life Sciences and Aerospace industries. The new design center also includes 6,100 square feet of lab space utilized for product development and prototyping validation, testers design, integration and validation as well as product and board level failure analysis.

I believe under the leadership of Mr. YJ Lim and the Management team, Plexus will remain competitive for many years to come.

I also would like to thank Plexus for supporting the various university initiatives to promote more engineering graduates in Malaysia and participating in CSR programs organized by the state government or NGOs. I was informed that the Penang Design Center have also provided sponsorship to TechDome where your team have collaborated with students from the academy to develop a hand gesture control wheel chair.

Once again, please accept my heartiest congratulations on the opening of your APAC Advanced Innovation Center. I wish Plexus every success in the future.

Thank you.