Johor among the top choice for overseas business ventures

In discussion: Tan (middle), Liew (left) listening to Galperti at the opening of Galperti Manufacturing Malaysia Sdn Bhd plant at Sp Setia Business Park in Johor Baru.

JOHOR BARU: Johor remains a favourite destination in Malaysia among foreign investors in the manufacturing sector and always comes up among the top in the country.

The state international trade and industry chairman Tan Kok Hong said last year Johor received about RM6.6bil investments in 118 industrial projects.

He said of the total RM6.6bil, 50% came from foreign investors demonstrating a business confidence in the long-term growth prospects of the state.

"With Iskandar Malaysia progressing well in the last six years, more new investments from the manufacturing sector are likely to come to Johor,'' said Tan.

He said this at the opening of Galperti Manufacturing Malaysia Sdn Bhd at the Setia Business Park located along Jalan Ulu Choh-Gelang Patah on Tuesday.

The RM100mil facility is the Italian-based group's first plant in the Asean region manufacturing components for the oil and gas, petrochemical and chemical industries.

Also present at the event were SP Setia Bhd president and chief executive officer Tan Sri Liew Kee Sin and Galperti Group chief executive officer Roberto Galperti.

Tan said the manufacturing sector was still important to Johor as the state's economic growth over the years was built based on its strong manufacturing activities.

He said Johor's strong manufacturing sector good a boost in the arm when the Federal Government already planning to transform and develop Johor it into a leading Electronics Manufacturing Services (EMS) hub in the region.

"By becoming an EMS hub, Johor is moving up the value-chain by attracting more capital intensive and high-technology investors into the state,'' added Tan.

EMS is a term used for companies that design, test, manufacture, distribute, and provide return/repair services for electronic components and assemblies for original equipment manufacturers.

He said while the manufacturing sector still required assembly and production-related activities, the capital-intensive investments required knowledge workers and semi-skilled labours.

Tan said the capital-intensive investments would spreahead the existing level of research and development activities, design and marketing to new heights.

"It is timely for Johor to shift its attention from labour-intensive investments to value-added activities in tandem with Malaysia's aspiration to become a high-income nation by 2020,'' he said.

-The Star-

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