PENANG continues to attract investors from European countries following the official opening of a Swedish industrialised building system firm in Bukit Minyak, Simpang Ampat.
Chief Minister Chow Kon Yeow was delighted that the Scandinavian Industrialised Building Systems (SIBS) company has chosen the state as its destination of choice for investment.
He believed, with the latest addition of SIBS, more companies from Sweden would be aware of the competitiveness and capabilities of the state.
IKEA, the Swedish world’s largest furniture retailer, opened its fourth Malaysian store in Penang, called IKEA Batu Kawan, in March.
“Despite being established in 2017, SIBS is now in the midst of preparing for its next phase of expansion. They are now currently working closely with investPenang and Penang Development Corporation (PDC) on a plan of constructing a new facility of around 500,000sq ft at North Penang Science Park.
“The capacity of this upcoming facility is four times the capacity of the current factory. It means the new plant could facilitate the production of more than 7,000 units of apartments annually.
“This will also create more than 600 job opportunities here,” he said in his speech after the official opening of SIBS in Bukit Minyak, Simpang Ampat today.
The RM100 million manufacturing facility, which was constructed in 2017, aims to produce steel frame modular multi-dwelling family houses for the Swedish and European markets.
The company is also optimising the design for environmental sustainability and flexibility.
Chow was glad to see the state is placed on the world map of Industrialised Building Systems (IBS) industry.
“Penang’s engineering expertise in IBS will soon be propelled to the next level,” he said, adding he is looking forward to seeing the set-up of the new plant in 2021.
“This makes Penang as a prime location for investors around the globe.”
Also present were SIBS group managing director Erik Thomaeus, Sweden ambassador to Malaysia Dag Juhlin Dannfelt , Batu Kawan MP P. Kasthuriraani and investPenang chief executive officer Datuk Loo Lee Lian.
Thomaes praised the state for its commitment towards the new production facility which would contribute to economic growth and innovation locally.
“I wish to congratulate Penang for once again attracting major Swedish investment,” he said
On a separate note, Chow said the state would continue to table a deficit budget for next year.
He said expenses would be reduced with the cutting of development budget to Penang Development Corporation (PDC) and Penang Water Supply Corporation (PBAPP).
He, however, said social programmes for both agencies would not be affected.
“It is still under control despite going to be a deficit budget,” he said, adding that the budget details would be announced on Nov 1.
The next state legislature assembly sitting is expected to be convened on Nov 1.
Story by Edmund Lee
Pix by Noor Siti Nabilah Noorazis
Video by Ahmad Adil Muhamad