KUALA LUMPUR: Menicon Co Ltd aims to invest RM650 million to setup it's first Malaysian manufacturing plant to produce daily disposable contact lenses.
This strategic investment has been made through its subsidiary, Menicon Malaysia Sdn Bhd (Menicon Malaysia).
The investment will witness the setup of the building and equipment for a new production facility spanning over a site area of 200,000 square metres at the Kulim Hi-Tech Park, Kedah.
According to Menicon, the plant's 45,000 square metres floor area will also be built, aligning with the Sustainable Development Goals (SDGs).
Menicon will install Environmental-friendly features like solar panels to utilise renewable energy and eaves to prevent the rise in room temperature, it said.
Menicon chief executive officer Hidenari Tanaka said the company's Malaysian plant is the largest facility in the Menicon group globally.
Tanaka said this facility, combined with Menicon's existing plant in Singapore, is expected to drive its business growth in the international market.
"To meet the high level of quality control requirements in our industry, this new plant in Kedah will be designed and built as a Smart Factory.
"We have evaluated various aspects of each country such as global competitiveness, risk of natural disasters, languages, and finally selected Malaysia as the best location to realise a stable operation for the long-term.
"Our strong and long-standing ties with the government of Malaysia will help us set up smoothly in this new location and help us meet the global demand for daily disposable contact lenses and contribute to the Malaysian economy," he said.
Meanwhile, Tanaka said due to the increasing myopia population globally, the contact lens market, especially daily disposable contact lenses, has been growing in recent years.
He said to meet the growing demand, the whole supply process of contact lenses, including production, transportation and shipment, will be connected by an integrated system.
"This will enable a high level of productivity and quality control supported by the industry's high-performing machines," he said.
Senior minister and minister of International Trade and Industry (MITI) Datuk Seri Mohamed Azmin Ali said Menicon's decision to establish a highly automated factory is a testament to Malaysia's ability to meet the rigorous demands of highly regulated industries.
Azmin said this investment meets the country's National Investment Aspirations (NIA), creating greater economic complexity and high-value career opportunities for Malaysians.
"Furthermore, Menicon's commitment to sustainable practices in the design and construction of their plant augurs well with Malaysia's ESG goals for greener investment undertakings," he said.
Menicon's investment project was discussed during the Trade and Investment Mission (TIM) to Tokyo in April 2021, led by Azmin.
The project's approval and subsequent start of the facility's construction in August 2022 demonstrate the government's continued effort to welcome and facilitate high-quality foreign direct investment (FDIs) for Malaysia.
Notably, the plant will employ close to 100 personnel once the scheduled production begins in 2025.
This will further position Malaysia at the forefront as a global hub for quality investments while creating high-value jobs.