Global Players Investing in Malaysia’s Fertile Business Ecosystem

Selecting Malaysia as the first production facility in Southeast Asia, Risen Energy Co. Ltd is set to produce 3GW of high-efficiency photovoltaic modules to meet growing global demand

Risen Energy to Invest RM42.2 Billion in the Photovoltaic Industry in Malaysia, Its First Investment in Southeast Asia

Risen Energy Co. Ltd, one of the pioneers in the solar industry with extensive expertise in photovoltaic R&D and provision of end-to-end solutions for the entire solar value chain manufacturing, has announced its first investment in Southeast Asia.

Risen Energy was founded in 1986 and successfully listed as a public company in 2010. It is one of the leading solar companies in the world with a revenue of around USD2 billion in 2020 and has exported solar products to more than 100 countries and regions in Europe, America, South Africa and Southeast Asia.

The company is expanding its global footprint by opening its latest production base in Kulim Hi-Tech Park, Kedah, in response to the strong support and facilitation provided by the Government. Selecting Malaysia as the first production facility in Southeast Asia, Risen Energy is set to produce 3GW of high-efficiency photovoltaic modules to meet growing global demand. 

Risen Energy has projected to invest a total of RM42.2 billion. This includes CAPEX and operational expenditure over 15 years to undertake design and development activity, and manufacturing of solar cells and solar modules. The facility’s construction at Kulim High Tech Park will be completed by the end of this year, while commercial activities are expected to begin in Q1 2022. This new facility will contribute an annual production capacity of 3GW for the first five years. 

At a video conference with Mr Xie Jian, Chairman of the Board and President of Risen Energy this morning, Prime Minister Tan Sri Muhyiddin Mohd Yassin welcomed Risen Energy’s decision to invest in Malaysia and noted its significant contribution of creating over 3,000 employment opportunities, with 800 managerial, technical and supervisory positions, including 500 engineers. 

Referring to the project as an investment approved under the PENJANA Incentive Scheme to support the expansion of international investment projects in Malaysia, the Prime Minister said, “This represents a key win for Malaysia in proving our efforts to remain as the preferred investment location with a favourable environment for high-quality investments in Asia.”

The Prime Minister added that the investment of Risen Energy will further solidify Malaysia’s role in the global photovoltaic industry and is in line with our National Investment Aspirations framework which contains the elements of high value-added, high technology, knowledge and capital intensive, skills-intensive and high-income jobs.

In his remarks, Mr Xie Jian said, “The competitive advantages of Malaysia’s investment environment are mainly reflected in the following aspects: strategic location in the core area of Southeast Asia, solid economic foundation and good economic growth prospects. Further, Malaysia has abundant raw materials, high quality of human resources and harmonious ethnic relations whereby people get along well. Most importantly, the strong support and service from the state and local Governments.” 

“Risen Energy has clearly shown confidence in Malaysia as an investment destination of choice even as the world faces the challenges of the COVID-19 pandemic. With the strong support from you, we will continue our commitment to Malaysia in the future,” he added. 

Indeed, this massive investment clearly demonstrates strong confidence in the current administration and the country’s political stability that is crucial in providing a conducive climate for the growth and expansion of investments and businesses.

To tap on the enhanced employment opportunities created, MIDA has started working with the company for specific talent development programmes to ensure a sustainable local talent pool to meet the demands of this global solar player.

Risen Energy’s project in Malaysia will also benefit local businesses, particularly SMEs, and provide opportunities for them to become part of the global value chain. The multiplier effects will ensure positive social results and add value to the economy as a whole.

It is indeed significant that this project is clearly in tune with our expressed policy on the use of renewable energy and green technology, being central to our pursuit of global ESG benchmarks. 

Malaysian companies are encouraged to participate and work closely with MIDA through the vendor development and supplier programmes designed to support Risen Energy’s local sourcing of relevant products or auxiliary services. Internship programmes are also in the pipeline with local higher learning institutions, to prepare industry-ready talents.

Upon operation, this facility will create synergies and improve the company’s photovoltaic production capacity, while increasing profitable points and enhancing anti-risk ability which is critical for Risen Energy to foresee its sustainable, stable and rapid development in the future.

Austrian AT&S Chooses Malaysia as Its First Production Plant in Southeast Asia

AT&S, the Austria-headquartered global manufacturing leader of high-end printed circuit boards (PCB) and integrated circuit (IC) substrates, has chosen Malaysia as its first production plant in Southeast Asia. Mr Andreas Gerstenmayer, Chief Executive Officer (CEO) of AT&S met with The Most Honourable Tan Sri Muhyiddin Yassin, the Prime Minister of Malaysia, during a video conference to convey the official announcement. 

AT&S’ new facility in Kulim Hi-Tech Park, Kedah, to produce high-end PCBs and IC substrates involves a proposed total investment of RM8.5 billion (€1.7 billion) and will create 5,000 high-tech and high impact jobs. The construction of the facility is scheduled to begin in the second half of 2021 with commercial operations targeted to come on stream in 2024. This project is among the investments attracted by the Malaysian Investment Development Authority (MIDA) under the National Short-Term Economic Recovery Plan’s (PENJANA) investment scheme, launched on 5 June 2020. 

AT&S’ high-end PCB and IC substrates are used in mobile devices, industrial electronics, automotive applications as well as medical and health technology. As an international enterprise, the company has production facilities in Austria, India, China and South Korea.

At the meeting, Senior Minister and Minister of International Trade and Industry of Malaysia The Honourable Dato’ Seri Mohamed Azmin Ali expressed optimism that the investment also holds out bright prospects for our local SMEs to benefit from the supply chain generated. The meeting was also attended by Mr. Arham Abdul Rahman, CEO of MIDA and AT&S Chief Operating Officer (COO) Mr. Ingolf Schröder. Also present were Malaysian Ambassador to the Republic of Austria Dato’ Ganeson Sivagurunathan and Dr Michael Postl, Austrian Ambassador to Malaysia, joining from Vienna and Kuala Lumpur, respectively. 

Welcoming AT&S into Malaysia’s vibrant electrical and electronics (E&E) ecosystem, the Prime Minister said, “AT&S’ decision to invest here speaks volumes of its confidence in the Malaysian economy’s capacity and promise of sustainable growth.” 

The Prime Minister expressed confidence that Malaysia’s E&E industry’s skilled talent pool, facilitative investment environment, as well as deep integration with international supply chains, offer the ideal mix for high-tech stakeholders. 

“Working hand in hand, AT&S’ footprint in Malaysia will also further boost the development of our semiconductor ecosystem, enable opportunities for our local vendors in the field of advanced electronics and spur high-tech employment for Malaysians,” the Prime Minister added. 

In congratulating AT&S on their significant move to Malaysia for the business expansion, the Prime Minister applauded AT&S’ commitment to Malaysia, with MIDA having worked closely with the Company since November last year to secure the project. “The Government of Malaysia will ensure timely approval of the implementation of the project and in this regard, AT&S is welcome to utilise the facility provided under the One Stop Centre (OSC) for Business Travellers,” the Prime Minister said. 

Commending the hard work put in by MITI and MIDA to attract more quality investments globally, particularly in the areas of technology and innovation, the Prime Minister said, “This investment announcement represents a key win for Malaysia in proving our efforts to source for high-quality investments from international companies.” 

In explaining the choice for their strategic decision, AT&S CEO Mr Andreas Gerstenmayer said, “After very intensive location scouting globally, Malaysia has emerged as the country in which we want to push ahead with our ‘More than AT&S’ strategy,” adding that, “AT&S brings the latest generation of high-end technologies to the country and builds up a whole new technology sector. Besides the manufacturing of high-tech products, a significant amount of R&D activities will be executed at this new location. Malaysia can benefit from its position as a technology-country and can strengthen the region as a high-tech manufacturing hub in Asia.”

Pointing out the perfect win-win situation, AT&S COO Mr Ingolf Schröder said, “The location in the Kulim Hi-Tech Park, Kedah is a perfect match to our expansion plans. Besides the excellent infrastructure and stable supply chain, the whole ecosystem has been aligned in the last decades, the semiconductor industry has been in Malaysia for more than 30 years and the overall environment is very well developed.” 

No doubt, AT&S’ latest investment is a testament to the confidence of foreign investors in Malaysia’s economic prospects as well as the human capital resource available to cope with the high-tech demands of high-impact industries. Coupled with the strong showing of investment approvals for the first quarter (Q1) of this year, totalling RM80.6 billion in the manufacturing, services and primary sectors, AT&S’ investment bodes well for Malaysia’s recovery efforts from the economic challenges of the COVID-19 pandemic.