A minimum of RM500 million will be spent by Alton Industry Ltd, a US-based supplier of tools, appliances, and floor care products, to establish a manufacturing and research and development (R&D) base in Johor.
Tengku Zafrul Aziz, the minister of Investment, Trade, And Industry, and David Lu, the President and Chief Executive Officer of Alton, met in New York, USA, where the new facility’s plan was discussed.
The building is expected to be completed in 2024.
“Meanwhile, another company, which I am not able to name at the moment, will be investing a significant sum in Penang.
“Both Alton and this company have operations in China and they want to expand to Malaysia,” Tengku Zafrul said.
The choice by Alton to locate its manufacturing and research and development centre in Johor was a sign of the company’s group’s belief in the viability of Malaysia as an investment location.
“The investment also perfectly aligns with Malaysia’s recently launched New Industrial Master Plan 2030, which aims to create an investment-friendly environment and rapidly embrace technology to elevate the manufacturing sector’s ecosystem.
“These companies want to diversify their supply chain, and they are also looking to bring in their suppliers into Malaysia, thus firmly establishing Malaysia as a global technology and innovation hub,” Tengku Zafrul said.
The group also outlined its plan to invest more than RM2 billion over the course of the following seven years in expansion and growth.
In a statement released by the Malaysian Investment Development Authority (MIDA), Alton stated that it is proud to increase its presence in Malaysia, particularly with the intention to open its new manufacturing and R&D facility in Johor.
“This new facility will enable us to support our global customers and allow expansion to other markets quickly.
“The incentives from the federal, state and local governments, as well as the support in terms of infrastructure, make this a good investment move for the group,” it said.