GEORGE TOWN: The government has spent some RM30 million to transform Malaysia as a global hub for testing and certification of light-emitting diodes (LEDs).
International Trade and Industry Minister Datuk Seri Mustapa Mohamed yesterday said some RM28.5 million has been disbursed for that purpose.
He said of the RM28.5 million, RM18.5 million was given to an electronics company specialising in testing LED-related technology in Penang.
The remaining RM10 million was chanelled to AMD Export Sdn Bhd to improve assembly and automation with the help of 12 local companies.
Mustapa said QAV Technologies Sdn Bhd (QAV), based in Bayan Lepas, is the sole-testing and certification facility for solid-state lighting (SSL) and LED producers in the country and the region.
"Before this, all SSL and LED products were tested overseas.
“The investment that we have put in the company was worth it, as the company now has some 20 per cent revenue from overseas.
“That goes to show that the company is of international standard and companies need not spend too much to get their products tested elsewhere,” he said after visiting the QAV and the AMD plants at the Bayan Lepas Free Industrial Zone yesterday.
Present was Northern Corridor Economic Region chief executive Datuk Redza Rafiq.
Mustapa revealed that the RM10 million had spawned three viable projects with 12 local companies, and in those companies, 22 projects were put forth.
"We have given AMD RM10 million to reduce dependency on foreign labour, to have partners work on projects that resulted in automation.
"I am happy to hear that three projects were already in prototype stage. This is what we need," he said.
Mustapa also commended AMD for cooperating with local company Fabtronic Sdn Bhd, which provided micro-processor assembly services for them.
Fabtronic and AMD have been engaged in assembly services through a factory-in-factory business model since 2007, the first of its kind in Malaysia.
Earlier, during a press conference at the Kulim High Tech Park (KHTP), Mustapa said investments this year were expected to drop slightly.
He said it would be difficult to measure up to an outstanding year such as last year, which saw a total of RM74 billion approved investments, and RM52 billion the year before.
"The drop is due to a mix of factors. The global economy, for one, is uncertain. The United States is recovering, China is on the down side and Europe is struggling.
"The year 2014 just happens to be a very exceptional year," he said after visiting a factory in Padang Meha, as well as attending a briefing on the KHTP.
Mustapa was accompanied by Kedah Menteri Besar Datuk Seri Mukhriz Mahathir, several state executive councillors, and NCIA's Redza.
As for the approved investments for the northern region, Redza said according to the Malaysian Investment Development Authority (MIDA) report, RM13.7 billion in investments were approved in manufacturing.
"The 40 years of evolution in the north has created this set of critical engineering baseline skills, and this has made it easy for us to transform.
"For instance, KHTP started off in the area of electrical and electronics, but it has evolved into other things, like medical devices and solar.
"The tourism industry has come up very strongly as well. For the north, it has greatly overtaken the agricultural sector," he said.
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