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Showing posts with label PSDC. Show all posts
Showing posts with label PSDC. Show all posts

Wednesday, October 28, 2015

Penang | Silicon Valley of East losing position?

No massive layoffs | State semiconductor and E&E sectors ‘invariably impacted’ by MNC mergers

InvestPenang%20director%20Datuk%20Lee%20Kah%20Choon

GEORGE TOWN: InvestPenang director Datuk Lee Kah Choon expressed confidence that factories in Penang will not see massive retrenchments taking place arising from the mergers of five multinational companies producing semiconductors and electronics components.  

Lee, who estimates some 150 jobs to be affected out of the thousands, said the companies involved were AMD, which had joint venture with Nantong Fujitsu Microelectronic Co, and Motorola Solutions’ manufacturing facility in Bayan Lepas, which had been taken over by Sanmina Corp.  

He said Western Digital and Dell had also acquired SanDisk and EMC respectively while Amphenol would close one part of its business here.  

“Mergers and acquisitions are commonly carried out nowadays not only to consolidate operations but to increase market share and technology synergies. This is happening globally in the semicon and E&E (electrical and electronics) technology companies.  

“Penang, as an electronic hub with its many international companies, is invariably impacted,” he said at a press conference here yesterday.  

Lee was responding to recent news reports that Penang might lose its position as the Silicon Valley of the East following news of relocations, mergers, retrenchment and even plant closures involving several major foreign electronic players in the state.  

According to a report in a local daily, the series of moves, despite earlier reports of injections of tens of millions of ringgit in investment by two Chinese entities (namely JA Solar, JinkoSolar) in six months, will affect more than 1,000 employees.  

Lee said the acquisition of business did not equate to sacking of employees. “Restructuring exercises will be carried out but it is more to making the business profitable and the expansion of technological manufacturing processes. “Even if there is massive unemployment, these workers can be easily absorbed by other companies here. We are in a better position now to weather any possible unemployment scenario,” he said.  

On German stereo system maker Blaupunkt and HGST, a subsidiary  of Western Digital, Lee denied these companies would either close down, relocate or retrench their workers. “I have been in close contact with Blaupunkt and they do not have any intention to do any retrenchment," he said.  He described Penang’s investment as “healthy”, adding that the state had been ranked in the top five bracket for the past seven years.  

“It is very important for us to bring in the technology to support the supply chain that Penang has already developed.  “We also want investments to create high-income jobs for Malaysians in order for us achieve the national objective of becoming high-income nation in 2020,” he said.

Source | StarBiz

Related articles:

Cause for concern: Is Penang on the cusp of losing its position as the Silicon Valley of the East following news of relocations, mergers, retrenchment and even plant closures involving several major foreign electronic players in the state? What's your opinion? (Before you form your opinion do read through the related articles above)

Boldly go. LLAP

#VulcanInternational could be contacted at +6 016 451 1321 .

You're welcome to write your constructive comment below.

Saturday, October 18, 2014

Malaysia Investment | investPenang | PSDC | PDC | IT-BPO | 5 Reasons For Penang FDI Moving Forward?

As we're aware one of the pillar in growth for Penang state is foreign direct investment(FDI) besides tourism and its sister UNESCO World Heritage status. To complement the Malaysian Investment Development Authority(Mida) initiative in attracting investor, the investPenang arm under Penang state government has move along the same line by going to Hong Kong and Singapore with the same objectives of allure investors to Penang.

A source mentioned that Malaysia recorded its highest foreign direct investment(FDI) of RM38.7bil in 2013,an increase of 24% over 2012 and 3.9% higher than the last record of RM37.3bil achieved in 2011.

What will foreign investors stand to gain by having their operations in Penang?

  1. The infrastructure of masterplan Free Industrial Zone(FIZ) has been established since 1970s with Bayan Lepas FIZ. It was later expanded to mainland with Prai FIZ with supporting industries built under Small and Medium Industries(IKS).

  2. Talented human capital development. Penang Skills Development Corporation(PSDC) was established in 1989. The centre is entrust to provide training and develop human capital to support Multinational Corporations(MNCs). Over a period of 20 years, the Centre has trained over 150,000 participants through over 7,000 courses; pioneered local industry development initiatives; assisted in the input and formulation of national policies pertinent to human capital development and contributed directly to the Malaysian workforce transformation initiatives.

  3. InvestPenang agency. The state government agency was established in 2004. investPenang is a non-profit entity of the State Government with the sole purpose of promoting investments within Penang. investPenang aspires to sustain, rejuvenate and further promote entrepreneurialism through continued investments and simultaneously explore new growth areas which are profitable. Their core competencies are (1) Furnish information and resources to investors, (2) Enhance Penang’s business friendly environment, (3) Strengthen Penang’s competitive advantage, (4) Promote investment, (5) Support existing companies growth, (6) Facilitate growth of domestic industries, Penang SME Centre. As a matter of fact we work with investPenang and Mida on foreign direct investments'(FDIs) requirement and to cater the investor needs on existing infrastructure.

  4. In tandem with investPenang's efforts, Penang Development Corporation(PDC) provides industrial lands for factories. These lands are with tenure of 60-year lease. Their current factory development is in Batu Kawan with establishment on Batu Kawan's IKS.

  5. The IT-BPO Hub Penang integration. It's a vision and initiatives of Penang state government to envision that Penang establish herself with Information Technology Outsourcing and Business Process Outsourcing(IT-BPO) Hub with cost of RM3.3bil in setup and expect to be fully operational in 10 years.

The IT-BPO hub is make up of 30ha(74.2 acres) BPO Park in Bayan Lepas, 2.8ha(6.9 acres) BPO Prime in Bayan Baru and 0.93ha(2.3 acres) of Creative Animation Triggers(CAT) in George Town heritage zone.

Penang%20Information%20Technology%20Outsourcing%20And%20Business%20Process%20Outsourcing%20%28IT-BPO%29%20building.

Penang's Business Process Outsourcing (BPO) Park.

BPO services is said to include customer operations, data processing, back office administration, accounting, technical support, transcription, software development, IT consultancy and disaster recovery services.

This article has been written by VULCAN INT'L Real Estate Research Institute http://www.vulcanresearch.blogspot.com for VULCAN INTERNATIONAL Real Estate Investors Club http://www.vulcaninternational.blogspot.com .

#VulcanInternational could be contacted at +6 016 451 1321 .

You're welcome to write your constructive comment below.