KUALA LUMPUR:US-based Applied Engineering Inc (AE) from San Jose, California will be establishing a joint venture (JV) plant with Malaysian counterpart QES Manufacturing Sdn Bhd (QES) in Batu Kawan Industrial Park, Penang later this year.
According to Malaysian Investment Development Authority (MIDA), both parties signed an agreement to establish a JV company, Applied Engineering Technology (M) Sdn Bhd (AET) to provide high-tech electromechanical contract manufacturing services, from prototyping to high volume production, through its New Product Introduction (NPI) process and advanced custom solutions.
“The JV operation is designed to cater to the specific needs of clients in the semiconductor equipment manufacturing, life science and medical devices, defence and aerospace market segments, not only in Malaysia but also to ASEAN countries and China,” it said in a statement today.
The proposed initial investment for AET is about RM5 million and investment is set to expand up to RM20 million over the next three years.
The company looks to kick-start its operations in a temporary premise before moving to its new factory in Batu Kawan Industrial Park during the fourth quarter of 2022.
MIDA chief executive officer Arham Abdul Rahman said MIDA’s office in San Jose has been working closely with AE since December 2019; and in May 2021, AE and QES signed a memorandum of understanding (MOU).
“This JV is in line with MIDA’s strategies to attract high-tech companies to invest in the country and expand domestic linkages into regional and global supply chains, as per the National Investment Aspirations (NIA). We are proud to witness AE choosing Malaysia for its first overseas investment,” said Arham.
Meanwhile, AE president Jack Yao said Malaysia will provide the launching pad to AE’s strategical move to expand outside US to service its major customers in Malaysia and the Asia Pacific.
“AE will bring its latest generation of high-end technologies to Malaysia and builds up a whole new technology sector. A significant number of R&D activities are also planned for this new location. Malaysia can benefit from its position as a technology country and can strengthen the region as a high-tech manufacturing hub in the Asia Pacific,” he said.
QES Group Bhd president Chew Ne Weng said QES hopes to leverage on the well-established and technical strength of AE to further improve its manufacturing capabilities.
AE through this JV with QES with benefit from the enlarged ASEAN market of 662 million people. The project also stands to reap the benefits of Malaysia’s various Free Trade Agreements, both bilaterally and those under the auspices of ASEAN.
— BERNAMA
