NEW YORK – Two major US companies have committed over RM2 billion in investments in Malaysia.
Chicago-based firms Alton Industry Ltd Group and Top Line Furniture Corporation are coming in with an immediate commitment of RM500 million and RM230 million, respectively.
This was revealed by Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz today.
He said the two firms are expanding their operations beyond China where they have a significant footprint.
Alton, a global supplier of consumer and commercial tools, appliances, and floor care, announced expansion of its manufacturing and research and development (R&D) base scheduled for completion in 2024, during a meeting here between Zafrul and Alton Group chief executive officer David Lu.
Zafrul said Alton’s decision to expand into Malaysia reflects its confidence in the country’s attractiveness as an investment destination.
“This investment also perfectly aligns with Malaysia’s recently launched New Industrial Master Plan 2030 (NIMP 2030) to create an investment-friendly environment and rapidly embrace technology to elevate our manufacturing sector’s tech ecosystem.
“It firmly establishes Malaysia as a global technology and innovation hub, driven by new innovations and deeper collaboration between Alton and Malaysian SME industry players.
“We warmly welcome Alton’s investment and its potential for higher-paying, quality employment opportunities, particularly for Malaysians.”
Meanwhile Lu, who is also Alton’s president, said that the new manufacturing facility will be based in Johor Bahru.
“This new facility will enable us to support our global customers in all sectors we currently do business in and allow us to expand to other markets quickly.
“The incentives from federal, state and local governments we have in addition to the support of infrastructure makes this a good investment for Alton,” he said, adding that Alton laid out a vision of over RM2 billion investment in the next seven years in additional expansion and growth.
Meanwhile, Zafrul also welcomed Top Line Furniture Corporation’s Deputy chief executive officer Max Liaw to expand its operations in Malaysia.
“Top-Line has expressed their intention to increase their sourcing value over the next few years to RM230 million per year,” Zafrul said.
The company has been sourcing home furniture from Malaysia since 2000 with total imports of approximately RM840 million.
He said Top-Line and other major US furniture importers’ decision to choose Malaysia as one of its preferred sourcing countries reflects Malaysia’s capabilities as a reliable producer of high-quality furniture.
Last year, Malaysia exported RM13.86 billion of furniture globally. The United States stands as its top export destination, valued at RM7.24 billion or constituting 52.2% of total furniture product exports in 2022, followed by Singapore, Japan, Australia, and the United Kingdom.
Malaysia was the 6th largest source of US imported furniture in 2022, accounting for 2.78% of total U.S. furniture and bedding import value.
“Government support coupled with strong collaboration with companies such as Top-Line will ensure that our furniture manufacturers are able to accelerate their business growth and ensure their long-term sustainability,” Zafrul added.
He assured that the Malaysia External Trade Development Corporation, or Matrade, as the national export promotion agency of Malaysia will keep supporting both buyers and Malaysian exporters to build lasting and sustainable business relationships in further strengthening our exports and minimising disruption to the global supply chain. – September 20, 2023