Official Opening of VAT Phase 2 Manufacturing Facility
SPEECH BY CHIEF MINISTER OF PENANG
Official Opening of VAT Phase 2 Manufacturing Facility
5 September 2019
VAT, Batu Kawan Industry Park
Good morning. I am delighted to be present here today for the grand opening of VAT’s Phase 2 manufacturing facility. I am pleased to see that VAT has chosen to deepen its root in Penang. VAT is one of the pioneers that opted to set-up its manufacturing operations in our greenfield Batu Kawan Industry Park here, with its opening ceremony dated back in April 2013.
Since then, VAT has steadily increased its investments here, not only in physical plant but more importantly bringing in advanced manufacturing processes and state-of-the-art vacuum valve technologies. VAT has expanded its engineering expertise here, with leading-edge labs and testing facilities staffed by Penang’s highly-skilled workforce. With 270 headcounts currently, VAT is targeting to increase its workforce to 800 by end of 2020.
Ladies and gentlemen,
It is very common that MNCs with footprint in Penang are continuously expanding their operations here. Some of them have been here for more than four decades and their presence in Penang are no longer restricted to manufacturing but also research and development and shared service functions to support their global operations.
In the first half of 2019, Penang recorded RM9.2billion of approved manufacturing investment. Encouragingly, Penang contributed 35% of Malaysia’s total manufacturing FDI in first half of 2019, which is the highest among the states. In addition, our first half 2019 FDI had already surpassed 2018 full year FDI of RM3.7 billion.
I must say that Penang’s achievement is not by chance. Through the relentless efforts and close collaborations between the government and our valuable investors, we have transformed Penang from a low-cost manufacturing destination to a preferred location that is focused on high value-added and cutting-edge products. Together, we are creating a virtuous circle in which we build the skills and capabilities of the workforce as well as the technology capabilities of the local SMEs. This has enabled Penang to have a strong talent pool and robust ecosystem, which are among the crucial determining factors for companies’ investment decision.
Ladies and gentlemen,
The intensified trade and technology wars between the US and China have created uncertainties on the global trade and economic outlook. Following the latest round of tariff retaliation proposed by US and China, the trade tensions between the two superpowers could potentially erupt into a full-blown trade war. Companies are now even more urgently looking for new sites to divert their manufacturing operations to avoid being the victims of the trade war.
For Penang, we are still seeing a lot of positive interests from both the existing and potential investors. Through InvestPenang, we are consistently evaluating and seeking for high quality and sustainable investment.
As you might be aware, I have launched the Penang2030 vision last year and I would like to take this opportunity to stress that the Penang2030 vision is not merely a State-sponsored initiative. I hope that both public and private sectors will work hand-in-hand in achieving the vision of upgrading the economy through the emphasis on advanced readiness of the manufacturing industry for the digital age.
Let me conclude by saying that it has been very gratifying to witness the tremendous growth in VAT’s plant here over the past 6 years, and see how the cooperation between VAT, Penang and Switzerland has contributed to the success and greater prosperity for all of us. As such, I am proud that Penang will be playing a greater role in VAT’s future growth after this expansion and I certainly hope that we will continue striving for further success. Lastly, I would like to once again congratulate VAT on the completion of your Phase 2 facility.
Thank you.