PENANG is set to further strengthen its position in high-value manufacturing with the establishment of Malaysia’s first 4N precious metal refining facility in Batu Kawan, aimed at supporting the country’s fast-growing electrical and electronics (E&E) and semiconductor industries.
The facility is being developed by Tanaka MEP Refinery Sdn Bhd, a joint venture between Japan-based Tanaka Precious Metal Technologies Co Ltd and Penang-based MEP Enviro Technology Sdn Bhd.
A groundbreaking ceremony for the new facility at Batu Kawan Industrial Park (BKIP) was held today, marking a significant milestone in the partnership and in Penang’s efforts to build a more integrated precious metal recovery and refining ecosystem.
The ceremony was graced by Yang di-Pertua Negeri Tuan Yang Terutama Tun Ramli Ngah Talib.
Also present were Chief Minister Chow Kon Yeow, Penang Local Government and Town & Country Planning Committee chairman Jason H’ng Mooi Lye, Penang Trade and National Unity Committee chairman Goh Choon Aik, Consul General of Japan in Penang Shinya Machida, Malaysian Investment Development Authority (Mida) Penang director Muhammad Ghaddaffi Sardar Mohamed, MEP Enviro Technology Sdn Bhd director Sean Ong and Tanaka Precious Metal Technologies Co., Ltd chief operating officer Tomoyuki Tada.
The RM70 million investment is expected to establish Malaysia’s first 4N precious metal refining factory, capable of producing precious metals with a purity level of 99.99%.
According to Ong, the project will be developed on approximately three acres of land, with a built-up area of 45,000 square feet.
He said the first phase, involving an investment of RM35 million, would focus on the production of 4N high-purity gold and potassium gold cyanide (PGC), which are essential materials for the electronics and semiconductor industries.
“Commercial operations are expected to begin in the first quarter of 2029.
“In Phase One, we will invest RM35 million, focusing on the production of 4N high-purity gold and potassium gold cyanide (PGC) for the electronics and semiconductor industries.
“Through this partnership, we aim to establish a more complete precious metal recycling value chain, from recovery and high-purity refining to returning valuable materials back into the manufacturing supply chain,” he said.
Tada said the facility would strengthen Penang’s capabilities in high-value precious metal recovery and refining while supporting the region’s E&E and semiconductor industries.
“The establishment of this facility is expected to further strengthen Penang’s manufacturing ecosystem by adding high-purity precious metal refining capabilities that support the requirements of the E&E and semiconductor industries, while contributing to a more circular industrial value chain,” he said.
He described the groundbreaking as an important milestone in Tanaka’s partnership with MEP Enviro Technology and a significant step forward in the company’s growth and development in Malaysia.
“For many years, Tanaka has built extensive expertise in precious metals, supporting customers across a wide range of industries around the world.
“Precious metals are important not only because of their value, but also because of their unique properties and their essential role in advanced technologies,” he said.
He highlighted that the combination of the two companies’ strengths would provide a strong platform for precious metal recovery and high-purity refining in Malaysia.
Meanwhile, Chow congratulated Tanaka Precious Metal Technologies and MEP Enviro Technology on the milestone, noting that the groundbreaking came only a few months after the signing of a Memorandum of Understanding for the project.
“A few months ago, we witnessed the signing of the Memorandum of Understanding for this project.
“Today, we break ground. A promise made on paper is now being kept on Penang soil, and I congratulate Tanaka and MEP for moving with such speed and purpose,” he said.
Chow said the significance of the refinery went beyond gold as a precious commodity, highlighting its critical role in the semiconductor industry.
“Let me start with a simple question. Why does a gold refinery matter to Penang?
“Because gold is not only for jewellery. It is a critical input for the semiconductor industry.
“Gold, and a gold compound, are used to plate and connect the tiny components inside the chips that Penang makes and ships to the world,” he said.
He said the new refinery would enable gold recovered from Penang’s own factories to be refined locally in Batu Kawan to 99.99% purity before being returned to the manufacturing sector.
“That means less mining, less waste and more value kept in Penang. This is the circular economy in practice, not on paper,” he said.
Chow also highlighted the complementary strengths of the two partners, describing Tanaka as a long-established global player in the precious metals industry and MEP as a homegrown Penang company with extensive experience in resource recovery and environmental management.
“Tanaka has been a name in precious metals since 1885, and is one of only seven refiners appointed by the London Bullion Market Association worldwide, and the only one in Asia.
“MEP was founded in Bukit Minyak in 2005 and today operates in seven countries beyond Malaysia. A pioneer from Japan and a homegrown champion from Penang,” he said.
Chow said the partnership would involve a total investment of about RM100 million, beginning with RM35 million in the first phase.
He added that the project also reflected the longstanding relationship between Penang and Japanese investors, which dates back more than five decades.
“This partnership also carries forward a friendship of more than five decades.
“Japanese companies have been part of Penang’s industrial story since the early days of our Free Industrial Zones in the 1970s, and that trust continues to grow today,” he said.
Chow also urged E&E and semiconductor companies in Penang to make greater use of local capabilities and partners as the state works towards building a more complete manufacturing ecosystem.
“Every E&E and semiconductor company in Penang, look first to partners here at home.
“Send your recoverable materials to be refined here. Buy back the gold that was yours to begin with.
“Every gram we recover and refine in Penang is value that stays in Penang, with our workers, our suppliers and our people,” he said.
He said the Penang government would continue supporting investments that strengthen the state’s industrial supply chain and enhance its position as a destination for high-value manufacturing.
“We will continue to welcome investments that strengthen our supply chain, and we will keep building the ecosystem that makes Penang the natural choice for high-value manufacturing,” he concluded.
Story by Riadz Akmal
Pix by Siew Chia En
Video by Adleena Rahayu Ahmad Radzi