News Column

Samsung Has Big Plans for Malaysia

Nov. 22, 2012

Rupa Damodaran


Samsung will make Malaysia its largest operations centre outside South Korea by 2015, said Samsung SDI chief executive officer and president Park Sang Jin.

The industrial ecosystem in Malaysia supported by political stability, local workforce and an economy focused on value-added activities have helped to maintain the company's operational costs in the country, he said.

Park met with International Trade and Industry Minister Datuk Seri Mustapa Mohamed at his office yesterday.

The meeting formed part of the regular engagements the Malaysian government has with foreign investors in the country.

The South Korean giant in digital media and digital convergence technologies has been in Malaysia since 1979, starting off with an office providing sales and engineering support.

To date, the company has invested US$1.6 billion (RM3.24 billion) under 15 entities, five of which are in the manufacturing sector and another 10 in the services sector.

With annual sales amounting US$6 billion (RM18.4 billion), the group has contributed 1.7 per cent of the gross domestic product in 2010.

Its investment in Malaysia has benefited 400 domestic companies in their vendor support services.

Apart from providing employment opportunities to 7,500 people, it has also been instrumental in attracting 35 other South Korean companies to park their investments in Malaysia.

Mustapa was also pleased with Samsung as a technology leader to be reckoned with, considering the company's constant update of its products.

The most well-received products of Samsung are those which are linked to those environmentally-friendly.

For instance, it also represents the largest lithium-ion battery producer in the world, commanding a 30 per cent market share in Malaysia.

Samsung SDI Energy Sdn Bhd in Senawang, Negri Sembilan, has already begun producing these batteries for PC tablets, mobile phones and power tools within the company's current capacity with 22 million units.

The figures are poised to increase to 32 million units by the end of this year and will increase further to 400 million units when it runs at a full- capacity in 2014.

Apart from its manufacturing operations, the company has also set up a training centre for its workers as well as its supporting industries.

It also plans to set up an R&D centre for the inorganic industry in 2014, and will house 50 local engineers with masters and PhD qualifications.

This centre will further support local Samsung's operations.

Meanwhile, Samsung has also offered its cooperation with local universities and institutions of higher learning. Where relevant courses are not available in the local institutes, the company has offered to sponsor students heading for higher studies in South Korea.

Source: (C) 2012 The New Straits Times

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