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Johor to develop two electronic manufacturing hubs
Published on: Wednesday, July 04, 2012

Johor: The state government has identified two locations in southern Johor, Sedenak and Kulaijaya, to be developed into capital-intensive Electronic Manufacturing Services (EMS) hubs.

Menteri Besar Datuk Abdul Ghani Othman said with the EMS hubs, the state would be moving up the value-chain and focus more on capital intensive investments for the E&E (Electronic and Electrical) sector instead of labour-intensive activities.

"The 323.74 hectares site in Sedenak belongs to the state investment arm Johor Corporation (Jcorp), while another site, the 404.68 hectares is located near the Senai International Airport," Abdul Ghani told reporters here Tuesday.

He had earlier attended a closed door meeting between the state government and the Ministry of International Trade and Industry (MITI) on the Johor Business Industry steering committee.

Also present at the meeting today was Deputy Minister of International Trade and Industry Datuk Mukhriz Mahathir.

Abdul Ghani said capital-intensive manufacturing sector would become Johor's economic drivers in its effort to move up the income ladder, in concert with the country's target to become a high-income nation by 2020.

Presently there are more than 30 medium and large-sized domestic and foreign E&E manufacturers operating in Johor, employing more than 51,000 workers.

Meanwhile Mukhriz said were afoot to further develop, strengthen and position Johor into a leading EMS hub in Malaysia. The state has all the right ingredients and formulas to become a successful EMS hub in the country, he said.

"Johor is already established in electronics and electrical (E&E) manufacturing activities and now is the time to bring it to the next level," he said.

He said the Malaysian Investment Development Authority (MIDA) had approved 929 manufacturing-related projects for Johor from 2007 until April this year with RM41.48 billion in total investment.

Mukhriz said from the investment, RM14.99 billion came from domestic investors and RM26.49 billion from foreign investors. He said of the total approved projects for Johor, 506 (54.5 per cent) were new investments while 423 were existing projects that saw additional investments and expansion plans.- Bernama

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