AMID concerns over Johor’s property overhang or glut situation, integrated industrial space solutions provider AME Elite Consortium Bhd has proven that its industrial parks in the state are still capable of enticing foreign direct investments (FDIs) as global players continue to diversify their supply chain to mitigate macroeconomic uncertainties.
AME’s most recent FDI is from Nasdaq-listed medical device giant Insulet Corp, whose latest manufacturing facility will be built in AME Elite’s newest industrial park, i-TechValley, in Southern Industrial Logistic Clusters (SiLC), Johor Bahru.
The new fit-for-purpose facility with built-up area of circa 400,000 sq ft is Insulet’s first presence in Southeast Asia, complementing its existing manufacturing capacity in the US and China. The manufacturing facility is expected to be operational in mid-2024.
AME’s group managing director Kelvin Lee Chai said AME’s first two integrated industrial parks, i-Park in Indahpura and Senai Airport City, have also proven to be FDI magnets for global corporations, and expressed confidence that its upcoming industrial park of i-TechValley would follow suit.
“Welcoming Insulet Corp to i-TechValley is a big win for AME and for Malaysia as it is the medical device giant’s first manufacturing facility in Southeast Asia,” commented Lee. “Notably, negotiations were on-going even while COVID-19 continued to dominate overall sentiment in the past year.”
Lee said the success of attracting Insulet Corp proves two things: firstly, the expansion plan must still go on for growth-centric global players, and secondly, that AME’s industrial parks and capabilities adhere to the highly-stringent international standards of the medical sector.
“More than 70% of occupants at our i-Parks in Indahpura and Senai Airport City are multinational corporations and we are confident of similar uptake for i-TechValley even more so as global players diversify their presence in Southeast Asia to strengthen their supply chain resilience,” he envisages. “AME is well-poised and ready to fulfil this anticipated demand.”
A recent report by Standard Chartered noted that FDI in Malaysia had reached record highs in 2021, adding that ASEAN has emerged as an excellent alternative for manufacturing hubs intending to diversify its supply chains.
Among other factors, ASEAN’s 660 million-strong population enjoys a more favourable demographic profile than mature markets of China or the US, offering opportunity for wide-ranging demand and workforce.
At 12.18pm, AME was up 2 sen or 1.19% to RM1.70 with 229,000 shares traded, thus valuing the company at RM1.09 bil. – June 3, 2022
