Selangor to have dedicated E&E park

The state govt has already identified a suitable location

by AFIQ AZIZ/ pic by MUHD AMIN NAHARUL

A 202HA industrial park dedicated to the electronics and electrical (E&E) business activities is expected to be established in Selangor as part of the state government’s plan to leverage on the ongoing global trade war between China and the US.

State investment industry and trade, small and medium industries committee chairman Datuk Teng Chang Khim (picture) said the state government has already identified a suitable location and the agreement for the land development is expected to be signed soon.

Teng told The Malaysian Reserve that most of the firms that are expected to locate their businesses to the industrial park are from Hong Kong and Taiwan, as well as countries that have already established its presence in the local E&E sector.

“In the past two years, we have stepped up our effort in Hong Kong by meeting as many investors as possible, on top of our previous trips to China and Taiwan within the last five years.

“We hope to attract electronic players, especially after the eruption of the trade war between China and the US. We look at this as a golden opportunity for us to garner good investments here,” he said.

However, Teng did not disclose the actual area that has been earmarked for the development of the E&E industrial park.

According to the Hong Kong Trade Development Council (HKTDC) — a statutory body that promotes, assists and develops Hong Kong’s trade — the state electronics exports rose by 10.7% in 2018.

The major export markets were the Chinese mainland, accounting for 62.6% of the total exports in 2018; the European Union (8.3%); Asean (6.2%) and the US (6.2%).

Exports to the China grew by 9.8% on the back of steady input demand of mainland’s outward processing.

HKTDC said most Hong Kong manufacturers have relocated their production facilities to the Chinese mainland to reduce cost, while their Hong Kong offices now focus mainly on research and development activities, product design and development, management, logistic support, and marketing.

Last year, the export value of Hong Kong’s electronics firm operating in the mainland rose 7.7% to HK$1.6 billion (RM840 million) in 2017 and further 8% to HK$1.7 billion in 2018.

The electronics industry is also the largest merchandise export earner of the territory, accounting for 68.3% of Hong Kong’s total exports last year.

“This is the place that we need to explore to attract investors in the electronics sector. As it is, many of the electronics players in China are actually investors from Hong Kong and Taiwan,” Teng said.

He said the state government had already initiated talks with the landowner of the proposed park and both parties are prepared to collaborate in developing the area.

“The project can commence as soon as the agreement is sealed. Establishing the park would not take long. As long as you have takers from the industry, it can work. Now, we just need to wait for the investors to come and ask

if we have the space — and we are fully prepared by then,” he added.

As for the project value and potential job creation from the new park, Teng said it would be announced later, depending on the take-up rate of the new area.

Based on MarketResearch.Com, Asia Pacific charted the largest region in the E&E manufacturing market worth US$1222.1 billion (RM5.01 trillion) in 2018, accounting for 41.2% of the global E&E manufacturing market, followed by North America at 23.8% and Western Europe at 18.8% respectively.

Selangor, on the other hand, has become a hub for a number of industries including the E&E sector, which has contributed RM35 billion in investments for over 30 years.