I am pleased to be present here today at the Investment Announcement of Simmtech in Penang, Malaysia.
On behalf of the Penang State Government, I am delighted to welcome Mr. Jeffery Chun, Managing Director of Simmtech Southeast Asia; and Mr. Lee Ung Hun, Chief Architect of Simmtech Penang Project team – who are joining us virtually in this session.
Korean-headquartered Simmtech Holdings Inc. (Simmtech), one of the global leading players in the printed circuit board (PCB) and packaging substrate for the semiconductor industry, has chosen an 18-acre site at Batu Kawan Industrial Park, Penang, Malaysia for its first large scale factory in Southeast Asia.
Via its Malaysian subsidiary, Sustio Sdn. Bhd., Simmtech’s Phase-1 investment would be US$120 million (RM508 million) and the operation is expected to commence in the first quarter of 2022. This new facility in Penang is expected to create 1,200 high value jobs in engineering, manufacturing and quality management, by the first half of 2023.
I am excited to welcome Simmtech, the first major Korean investor from the semiconductor industry in Penang. I am hopeful that Simmtech’s arrival is the beginning of a new chapter with Korea, one of the prominent countries in the global technology sphere.
As part of the efforts to cement Penang’s position as a hub for advanced manufacturing, the State government has placed emphasis on attracting companies with strong commitments in developing cutting-edge technologies and sustainable investing. I am pleased that Penang’s well-developed ecosystem is recognized by leaders across the semiconductor value chain.
In addition to Simmtech, Penang has witnessed a number of global heavyweights announcing new investments as well as expansions of existing facilities in the State over the past two years. Simmtech’s Sustio project will bring Penang’s industry to greater heights and further integrate Penang into the global semiconductor supply chain.
Ladies & gentlemen,
Driven by Penang’s position as the country’s leading E&E hub, the State continues to be a key pillar of Malaysia’s external trade. In 2020, Penang recorded a commendable RM310 billion of exports and RM110 billion of trade surplus, contributed 32% and 60% of the country’s said total, respectively. Notably, Penang’s E&E exports were valued at RM231 billion in 2020, which formed more than half of the country’s total.
On the investment front, Penang recorded outstanding investment performances for 2019 and 2020, having clocked up a total of RM31 billion manufacturing investment for the said period, among which 47% is contributed by Electronics & Electrical products, representing 35% of the country’s total in E&E, further entrenching the State’s position as the Silicon Island of the East.
I would like to take this opportunity to express the State government’s appreciation to the Federal Government, particularly the Ministry of International Trade and Industry (MITI) and the Malaysian Investment Development Authority (MIDA) for their synergistic efforts together with InvestPenang in bringing in this strategic investment. The State will stay committed to providing continuous support and facilitation to ensure smooth project implementation on the ground.
Once again, my heartfelt congratulations to Simmtech on this significant investment in Penang. I wish the Company continuous growth and success and look forward to reinforcing the close partnership between the State and Simmtech for many years to come.
Thank you.