Malaysian Ministry of International Trade and Industry (MITI) has announced a committed investment amounting to MYR 8.9 billion (USD 2.1 billion) for high-tech industrial segments from large South Korean and Japanese manufacturers, as an outcome of MITI’s trade and investment mission in April 2021.
Arham Abdul Rahman, CEO of Malaysian Investment Development Authority (MIDA), MITI’s investment promotion arm, highlighted the four key investments from SK Nexilis Co Ltd, LG Chem Ltd, SPC Group and Nippon Electric Glass Co Ltd (NEG).
SK Nexilis, one of the largest copper foil production companies with a 16% market share for electric vehicle (EV) batteries internationally has stated its intention to spend MYR 4.24 billion (USD 1.028 billion) of expected investment in Kota Kinabalu, Sabah. It is planning to build its first overseas manufacturing factory for thin copper foil, which will be powered utilizing 100% renewable energy. The construction will take place in the second half of 2021 and is expected to begin commercial production in 2023
In addition, Malaysia’s petrochemical cluster will be greatly accelerated with a potential investment of MYR 600 million (USD 145 million) from LG Chem Ltd, the biggest chemical firm in South Korea. LG Chem is setting up a joint venture (JV) with Petronas Chemicals Group Bhd (PetChem) to produce nitrile-butadiene rubber latex in the Pengerang Integrated Petroleum Complex (PIPC), Johor. Its operation will take place possibly in March 2023.
The next potential investment came from SPC Group, a food and confectionery conglomerate in South Korea that has aimed to establish a regional distribution hub in Malaysia for its halal dough. It is planning to invest approximately MYR 91.2 million (USD 22.12 million) with hopes to expand its business to the whole ASEAN market.
Japan-based Nippon Electric Glass Co Ltd, one of the leading global manufacturers of specialty glass, stated that it is considering spending at least MYR 1 billion (USD 242 million) for a new production of e-glass fiber. The facility will be manufacturing automotive parts and components, in the production of wind turbine blades for wind power generation.
As part of its aspiration to become a high-income country, Malaysia is pursuing high-quality foreign direct investment (FDI) in designated economic clusters from around the world. The country has been implementing business-friendly policies and reforms to make Malaysia the most preferred site for quality investments in Asia.
(Sources: The Edge Markets; MIDA)