Inauguration of 5G equipment manufacturing by Ericsson
SPEECH BY THE CARETAKER CHIEF MINISTER OF PENANG TUAN CHOW KON YEOW
Inauguration of 5G equipment manufacturing by Ericsson
4 August 2023
G Hotel Gurney, Penang
Good morning to all of you.
I am pleased to be here for the Inauguration of 5G Equipment Manufacturing by Ericsson in Penang.
The history of Ericsson’s presence in Malaysia dates back to 1965 when it signed an agreement with Jabatan Telekom Malaysia for the delivery of a crossbar switch. Since then, the company has consistently played a vital role in shaping the country's telecommunications landscape. Fast forward to today, Penang is proud and excited to welcome the presence of this Swedish telecom giant in the state.
In the first quarter of 2023, Ericsson has established its inaugural Global 5G Equipment Manufacturing Hub in Southeast Asia, located in Penang. This momentous accomplishment is the result of Ericsson's partnership with Flex, one of Penang's strategic investors since 1990.
The Global 5G Equipment Manufacturing Hub will be producing Ericsson’s cutting-edge 5G products to support global and local 5G roll-outs. This hub will also be the first hub in Southeast Asia and one of the 11 main manufacturing sites globally.
Being one of the world’s biggest providers of 5G networking equipment, Ericsson’s investment decision serves as an acknowledgement of the state’s skilled talent, well-developed infrastructure and resilient environment. The state takes immense pride in hosting such a reputable company.
Ladies & Gentlemen,
Standing on the brink of a technological transformation buoyed by the fourth industrial revolution, the proliferation of 5G, IoT and other emerging technologies have definitely unleashed the potential in both industrial and consumer markets. This megatrend has opened up tremendous opportunities for Penang.
In view of this, the State Government has also established a 5G Special Task Force Committee to discuss, give suggestions, weigh, and recommend technical proposals from telecommunication service providers related to the issues of providing 5G infrastructure in the State of Penang. The committee is made up of various stakeholders including local authorities (PBT), Malaysian Communications and Multimedia Commission (MCMC), Digital Nasional Berhad (DNB), George Town World Heritage Incorporated (GTWHI) and industry players.
As the Silicon Valley of the East, Penang is the economic powerhouse of the country due to our robust industrial ecosystem. This enables Penang to constantly serve as a partner of choice for global top-notch companies in both manufacturing and digital economy landscape.
Driven by our position as the country’s leading Electrical and Electronic (E&E) hub, Penang topped the nation's list in 2021 with export value of RM356 billion recorded.
Seventy-two percent of the said amount is contributed by E&E, represented nearly 60 percent of the country’s E&E total. The external trade momentum has persisted into 2022 with a 30 percent year-on-year spike on the export value, reaching an all-time high of RM463 billion, equivalent to 30 percent of the country’s total.
Not resting on our laurels, Penang constantly seize the opportunities arising from global development in a timely manner and continuously source for ways to move up the value chain. I am pleased to note that Penang’s proposition in the global value chain is no longer restricted to back-end activities but we are becoming an emerging hub for IC design, IoT solutions and R&D activities.
The manufacturing of Ericsson’s 5G equipment definitely strengthens the state’s robustness in the E&E ecosystem. Proudly made-in-Penang, this investment is expected to bring far-reaching impact to our local players and workforce.
With Penang’s leading position in advanced manufacturing coupled with our strong engineering talent pool, I am confident that Penang provides an ideal platform for Ericsson to participate and to thrive.
Ladies & Gentlemen,
Sustaining a dynamic ecosystem equipped with the capacities and capabilities to support the needs of industrial players’ next generation technologies and growth strategies is the utmost priorities of the Penang state government. Importantly, we acknowledge that incorporating tripartite Public-Private and People partnership is crucial in paving the way to becoming a high-income economy and creating quality jobs.
The state government will continue to prioritize the development of a sustainable economy, equipped with future-proof physical and digital infrastructure, innovative workforce, and elevate the liveability of Penang.
All of which would set the state in the right direction to anchor our position as a preferred investment destination and attract high-quality investors.
On this note, I wish to assure all investors that the state government, through InvestPenang and other relevant state agencies, is committed in providing unwavering support to the investors here.
Once again, my heartfelt congratulations to Ericsson on your inauguration in Penang. I wish you continuous growth and success and we look forward to reinforcing the close relationship between the state and Ericsson for many years to come.
Thank you.