Swede deal for Penang

By The Star – Sept 30, 2022

A version of this article was first published on The Star

PETALING JAYA: Sweden-based Scandinavian IBS Sdn Bhd (SIBS) will be investing RM500mil to expand its plant in Simpang Ampat, Penang.

In a statement yesterday, the company said the expansion is anticipated to be done in phases over the next five years and quadruple its production lines.

The expansion will also add 15 acres of land size to the facility, which is located within the state’s Penang Science Park.

“The project is expected to provide an additional 1,200 employment opportunities to the locals and the opportunity to deliver to more markets and product categories.

“The expansion project is also expected to create an additional value of RM552mil in local sourcing of raw materials and components.”

In the same statement, Penang Chief Minister Chow Kon Yeow said the project will bring in investment, strengthen the socio-economy, increase job creation and provide opportunities for local talents to upskill.

“The investment will stimulate local businesses, thus contributing significantly towards the economy of Penang by maintaining and strengthening its local supply chains.”

The investment is also set to create more engineering experts in the industrialised building system (IBS) for Penang.

Meanwhile, Malaysian Investment Development Authority (Mida) chief executive officer Datuk Arham Abdul Rahman said SIBS’ continued expansion demonstrated Malaysia’s strong economic fundamentals.

He said this included the country’s vibrant innovation ecosystem, particularly within the IBS industry, as well as Malaysia’s reliable infrastructure and connectivity to the region and the world.

“The company’s presence will also encourage the growth of local companies within the IBS industry,” he said.

Arham added that Mida will remain committed to growing the IBS industry through collaborative efforts with strategic investors, such as SIBS.

“This is a key win for Malaysia in realising our aspiration to attract high-quality investments from reputable companies all around the world,” he said.

Meanwhile, SIBS Group chief executive officer Erik Thomaeus said SIBS has put Malaysia on the map as the leading hub for the manufacturing-related construction industry.

“Using technology, the company has revolutionised a very conservative industry.

“The investment is important for Malaysia not only directly but also indirectly, in the thousands of jobs created in the supply chains around the country.”

He noted that Malaysia is devoted to technology and companies built around “technical innovation.”

“This is another proof of the genuine attractiveness of Malaysia as a hub for business and innovation.

“Our expansion in Malaysia will be divided in phases and eventually will achieve approximately RM500mil of total investment,” he said.

Meanwhile, Sweden’s ambassador to Malaysia Dr Joachim Bergstrom said Sweden is a pioneer in innovation and industry.

“In the last few years, we’ve seen an incredible development of new methods and materials being developed within construction that are cost effective and enhance liveability and safety.

“SIBS is at the forefront of the development and it brings me great joy to see that they are expanding their operations here in Penang, bringing in leading global solutions within their field and sharing that knowledge and providing many jobs to the local community.”