AEM MICROTRONICS (M) SDN BHD - GRAND OPENING OF PENANG PLANT
OPENING SPEECH BY YAB CHOW KON YEOW
THE CHIEF MINISTER OF PENANG
AEM MICROTRONICS (M) SDN BHD - GRAND OPENING OF PENANG PLANT
9TH JANUARY 2023
YB Dato' Haji Abdul Halim bin Haji Hussain
Penang State Exco for Trade, Industry & Entrepreneur Development
His Excellency Mr Shivakumar Nair
Deputy Singapore High Commissioner to Malaysia
Dato’ Seri Lee Kah Choon
Special Investment Advisor to the Chief Minister of Penang
Datuk Wira Arham Abdul Rahman
CEO of MIDA
Dato’ Loo Lee Lian
Chief Executive Officer (CEO) of InvestPenang
Mr. Chandran Nair
Chief Executive Officer (CEO) of AEM
Mr. Loke Wai San
Chairman of AEM
Distinguished guests,
Members of the media,
Ladies and gentlemen,
Good morning.
First and foremost, I would like to extend my appreciation to AEM for inviting me here today for the grand opening ceremony of your new manufacturing plant in Penang. My heartiest congratulations to AEM’s team and everyone involved for the hard work and dedication in bringing this to fruition.
This new plant, strategically located at Prai Industrial Park, comprises a 365,000-square-foot area that caters for assembly, warehouse, R&D and Quality Assurance activities. This expansion allows AEM to tap into the region’s growth opportunities while connecting with existing and potential customers.
Penang is pleased to be the preferred location for AEM’s new manufacturing facility. With AEM’s expansion project, the talent in Penang is being offered not only job opportunities, but also the chance to learn from a global leader in semiconductor and electronics test solutions. This is believed to further enhance the local capabilities and strengthen Penang’s position as a talent magnet in the northern region.
Ladies and gentlemen,
With half a century of industrialization in its DNA, Penang has navigated through numerous up and down cycles, emerging stronger each time. Experiencing an upward trend in its exports, Penang contributed an average of 29% of Malaysia’s exports, and 58% of the nation’s trade surplus over the past five years. 2022 is undoubtedly a record-breaking year for Penang as we have achieved RM414 billion exports from January to November 2022, which is 17% higher than our all-time-high annual export of RM354 billion in 2021.
In terms of investments, Penang is among the top contributors to the country, garnering RM9.2 billion in approved manufacturing investments from January to September 2022. As for the investments in the machinery and equipment sub-industry, Penang recorded a total approved investment of RM7.3 billion from January 2020 to September 2022, representing 57% of the country’s total.
On a global scale, and according to Semiconductor Equipment & Materials International (SEMI), the global semiconductor equipment sales are estimated to reach a new high of US$109 billion in 2022. Despite a contraction foreseen in 2023, the amount is expected to rebound in 2024, reaching US$107 billion. Banking on the prolific growth of advanced technologies, I am confident that Penang will be benefitting from the semiconductor industry’s long-term outlook.
Ladies and gentlemen,
The state remains committed to building a resilient and sustainable machinery and equipment supply chain. AEM’s new manufacturing plant in Penang marks a significant milestone in Malaysia’s roadmap to strengthen its competitiveness in the global E&E value chain. The decision to expand AEM’s operations in Penang lends credence to our conduciveness as a global semiconductor hub.
Take this opportunity, I would like to express my appreciation to the Malaysian Investment Development Authority (MIDA), InvestPenang and Penang Development Corporation (PDC) for their synergistic efforts in engaging investors and facilitating project implementations.
The state, via InvestPenang, is looking forward to working with AEM to accelerate the development of the region's vibrant E&E ecosystem, while simultaneously furthering the state's Penang2030 goal and solidifying our position as the ‘Silicon Valley of the East’.
With that said, I extend my best wishes to AEM. Thank you.