New manufacturing facility opens in Batu Kawan Industrial Park

By Riadz Akmal – March 9, 2022

A version of this article was first published on Buletin Mutiara

THE joint-venture manufacturing plant known as Applied Engineering Technology (M) Sdn Bhd (AETM) has officially opened at Batu Kawan Industrial Park (BKIP) today.

AETM is a joint-venture company between US-based company Applied Engineering (AE) and its Malaysian counterpart QES Manufacturing Sdn Bhd (QES).

AE president Jack Yao said the 20,000sq ft manufacturing facility would provide high-tech electromechanical contract manufacturing services, from prototyping to high-volume production.

“Notably, AETM is AE’s first offshore operation outside of the United States.

“And we truly appreciate the partnership with QES.

“We will work in the best way possible to ensure the success of this joint venture.

“After all, Batu Kawan is a great place for manufacturing companies, and we are glad to be able to cement a mark in this area.

“The markets that we served under this endeavour include semiconductor and display capital equipment, medical technology, industrial automation, aerospace, and emerging technology markets.

“And we are confident that the Asian market will benefit from this partnership,” he said in his speech at the opening ceremony today.

Deputy Chief Minister I Datuk Ahmad Zakiyuddin Abdul Rahman, who graced the ceremony, congratulated both AE and QES for their outstanding milestone through the joint-venture partnership.

“Particularly, I am pleased that AE and QES had chosen Penang to establish this joint venture entity.

“For AE, the joint venture is the company’s first offshore operation outside of the United States.

“Meanwhile, for QES, the new presence in Penang diversifies the company’s manufacturing footprint within Malaysia.

“Penang’s dynamic industry cluster and agile talent pool allow companies that set foot here to enjoy overarching benefits.

“The presence of multinational companies (MNCs), large local companies (LLCs) and auxiliary industries near one another ensure supply chain resiliency and operational advantage.

“Importantly, the talent pool that equipped with strong engineering expertise enables companies here to perform high value-added activities and increase participation in the global value chain,” he said.

Ahmad Zakiyuddin added that the significance of Penang on the regional and global scale was well attested.

“In particular, Penang accounted for over 5% of the global semiconductor sales. The state serves as one of the most thriving regional hubs for equipment manufacturing as well as medical technology industries.

“Thus, by leveraging Penang as a springboard, I am confident that AETM manufacturing facility could seize tremendous opportunities arising from the technology advancement and global megatrends.

“Through InvestPenang, the state government is also fully committed to providing our best possible facilitation service.

“Thus, I look forward to deepening the partnership between the company and the Penang government,” he said.

QES Group president Chew Ne Weng said for the first two years, AETM focus was to support the clients in terms of equipment assembly and integration, focusing on semiconductor, medical and other industry segments.

“And starting from the third year onwards, we plan to develop equipment design capability for our customers, based on their needs,” he said.

Also present during the opening ceremony were InvestPenang chief executive officer Datuk Loo Lee Lian and Malaysian Investment Development Authority (Mida) deputy chief executive officer (investment development) Lim Bee Vian.