GEORGE TOWN: Malaysia, in particular Penang’s manufacturing industry, could benefit directly from the ongoing trade war between the United States (US) and China.
Motorola Solutions Malaysia Sdn Bhd, for example, has reviewed its supplier base in China, and has since decided to shift its manufacturing arm, Sanmina, in Tianjin to Penang.
The company’s deputy managing director John Andersen said this would result in more products being manufactured in Penang.
“Sanmina is a big network established all around the world, so they are flexible and able to move very fast,” he said here today.
“Regardless of the trade war, the manufacturing process can quickly be shifted and Penang has been identified for it.
“The shift process is taking place as we speak.”
The trade war between the two global economies accelerated when the US increased tariffs on US$200 billion (RM835.4 billion) of Chinese goods to 25 per cent.
The matter continues to escalate with no signs of it being resolved at the moment.
Prime Minister Tun Dr Mahathir Mohamad said Malaysia was likely to benefit from the trade war in terms of attracting foreign investors.
Recently, the Malaysian Investment Development Authority (Mida) revealed that foreign direct investment (FDI) in Malaysia across all sectors rose 73.4 per cent year-on-year to RM29.3 billion in the first quarter of this year from RM16.9 billion a year ago.
Recently, Motorola celebrated its 45th year in the state.
Andersen said Motorola began in Penang as a relatively small manufacturing operation company and two years later a research and development centre was established.
The manufacturing centre continued to grow over the years and he said about 90 per cent of Motorola products shipped around the globe had a Penang fingerprint.
“Here is the largest engineering centre outside North America and also the largest research and development centre outside the United States.
“Today, we have 100,000 customers from 120 countries around the world.”