Singapore manufacturing firms see good performance in Iskandar, Malaysia

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Iskandar Malaysia has attracted investments worth a combined 133 billion ringgit (S$51 billion) as of January this year, some eight years after it was established.

According to the Iskandar Regional Development Authority (IRDA), a statutory body tasked with driving development in the region, 35 per cent of that investment is from foreign countries, of which Singapore accounts for 24 per cent.

About three years ago, Singapore manufacturer HPH Technologies expanded into Iskandar Malaysia to address the issues of space constraint and labour shortage in Singapore.

The company manufactures components to support security-related and semiconductor equipment industries.

It currently has two factories in the economic zone, set up at a cost of S$15 million.

HPH said it has seen business revenue double since its expansion there and reaped 30 per cent savings in labour cost.

The company hires about 130 workers in total, of which 70 are located in Iskandar Malaysia. It also plans to boost its headcount by some 30 per cent by the end of the year.

Its managing director, Lim Hak Poh, welcomed the recent announcement that Singapore will help Malaysia upgrade its vocational training.

He said: “The problem here is (skilled) manpower and our industry needs skilled manpower.

“If we can reach out to the secondary schools across Malaysia, offer them (students) training and apprenticeship, and… bring them to the Singapore companies operating in Iskandar, that would encourage a lot of Singapore companies to move here.”

As of January this year, nearly 47 billion ringgit — about 35 per cent of total investments in Iskandar Malaysia — is from foreign countries.

“Singapore has been for a while now the largest source of investments in Iskandar Malaysia — 11 billion ringgit or S$4.2 billion — primarily in areas of broad manufacturing sectors, education, healthcare as well as property,” said Ismail Ibrahim, chief executive of IRDA.

Mr Ismail said manufacturing forms the backbone of Iskandar Malaysia and the state of Johor’s economy.

He added that development plans will focus on sectors like electronics, petrochemical and food processing. IRDA said the manufacturing sector received 47.8 billion ringgit worth of investments as of January 2014.

“We would like to see… the manufacturing sector (continue) to be in the higher level of the manufacturing value chain, and we want world-class manufacturing,” said Mr Ismail.

“We are actually targeting the technology-intensive kind of manufacturing facilities that are not totally dependent on low-cost labour industries.”

Apart from the manufacturing sector, Mr Ismail said Singapore and Iskandar Malaysia can also work together in areas including environmental management, and arts and culture.

 

 

 

 

Source : Channel News Asia | April 9, 2014

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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