New Commercial Launches In Penang In Q12022

By: Fahri Ahmed
27th May 2022
Property News

Penang is a strategic location for manufacturing and industrial plants. It accounts for 5% of semiconductor sales regionally and globally. The state is a thriving regional hub for equipment manufacturing and medical technology industries. Many developers find commercial value in basing their industries here.

In Q12022, 2 established organisations launched new manufacturing plants in Penang, holding its reputation as the prime location for such industries

  1. Manufacturing plant by Eclipse Automation Inc in Batu Kawan, Pulau Pinang

    Eclipse Automation Inc launched its first manufacturing facility in Asia in Batu Kawan, Pulau Pinang. The ceremony for the announcement took place on 10 February 2022. The new facility will stretch upon 3 acres of prime industrial land.

    The production area will cover 55,000 square feet, and an office area will cover 27,000 square feet. The plant is designed to cater to various sectors, including high-tech automotive, life sciences, alternative energy and consumer industries.

    Considering the strategic position of the plant, it will be able to adapt value-added manufacturing options and give Eclipse a better capacity to support global programmes, including replication line and outsourcing model platforms.

    The site’s construction will commence in the first quarter of 2022 and expect to commercially operate from the beginning of 2023. Once fully functioning, the plant will vastly contribute to Penang’s economic growth, creating over 150 jobs by 2025.

    80% of the workers hired will be of the high income category because they will be from engineering and technical background. Thus, it will substantially add to the employment growth of the country.

    In addition, it will position Malaysia as a strategic destination for machinery and equipment (M&E) industries. This will create a multiplier effect for the domestic market regarding supply chain usage and technology transfer.

  2. Manufacturing plant by Applied Engineering Technology (M) Bhd in Batu Kawan Industrial Park, Pulau Pinang

    Applied Engineering Technology (M) Bhd (AETM) has found Penang’s Batu Kawan Industrial Park a strategic location for its manufacturing plant. On 9 March 2022, they announced their new venture, which will be in collaboration with US-based Applied Engineering (AE) and its Malaysian counterpart, QES Manufacturing Sdn Bhd.

    The plant will comprise a factory with approximately 20,000 square feet of floor space. AETM has obtained a license from the Malaysian Investment Development Authority (MIDA) to run its manufacturing operation. They have also received Manufacturing Warehouse License (LMW) from the Royal Malaysian Customs Department to operate their warehouse.

    Together with QES, AETM expects to offer electromechanical contract manufacturing services. Their operation will cater to multiple markets which need semiconductor/display capital equipment, medical technology, aerospace and industrial automation. In addition, the plant is also equipped to support other emerging technology that will benefit Malaysia and the ASEAN market.

    AETM particularly chose Penang to construct their plant because the state is a key hub of industrial clusters. It offers a resilient supply chain and operational advantage that can help supplement the plant’s clientele.

    Besides, the residents of this state have a rich pool of talent with a strong engineering background. Since the plant’s operation depends critically on technical and engineering expertise, employees with substantial prior knowledge of the area are essential to run it efficiently.

    The plant is already in operation since April 2022. AETM believes it is a new opportunity for local job seekers with an engineering background to apply. If they secure a job in the plant, they will get hands-on experience working with the experts.

    Local suppliers will also benefit from the manufacturing plant as this will be an additional source of business, particularly in automation equipment design. This will allow them to widen their horizon into the international market and take part in the global value chain.

Tell us what you think about these new commercial developments in Penang. And stay tuned to the Guyub news portal to know what new launches are happening in other parts of Malaysia.

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