Iron & Steel-related Industries
Iron is not a primary natural resource in Perak. However, the arrival of Vale – the world’s largest producer of iron ore and pellets – looks set to turn Perak into a primary distribution and palletising hub. The hub is slated to serve the strong Asia Pacific iron and steel markets, where high quality iron ores from Brazil are processed in the hub before being shipped to countries such as Japan, China and Korea. This distribution hub presents a great opportunity for the iron and steel industry to flourish in Perak.
The Perak State Government is also committed to the development of the iron and steel downstream industries in Perak; plans are underway to set up an iron and steel hub in Bagan Datoh, with the State Government currently in advanced discussions with various industry players.
Beneficiation of Natural Resources
Blessed with an abundance of natural resources, mainly non-metallic minerals, Perak is the country’s major producer of limestone products, tin, kaolin, clay and mica. Multinational companies (MNCs) in the minerals industry such as Lafarge, Sibelco, Omya, YTL Cement and Hume Cement have already established a presence, and Perak welcomes new investors to develop downstream industries from the natural resources available in the state.
Oil & Gas-related Engineering Fabrication and Marine-related Industries
Located adjacent to the Straits of Malacca and blessed with a long stretch of coastal areas, Perak has all the essentials for developing these industries. Lumut is the home of the Royal Malaysian Navy base, a fabrication yard owned by SapuraKencana Berhad, and an iron ore distribution hub owned by Vale, the world’s biggest producer of iron ore. As the oil and gas industry grows, requiring further deep-sea exploration, sophisticated technology and equipment become necessary to add value to the sector. This, along with the growth in country’s external trade, will in turn help shipbuilding and marine-related industries and provide opportunities for the ship repair service sub-sector.
Machinery & Machinery Components
The fabrication of machinery and its related components has been a key industrial sector in Perak for years, dating back to the golden era of the tin mining industry. The strong industrial base established during those formative years, particularly in the Kinta Valley, has continued to grow, with focus now shifting to the production of more complex machinery and increased automation. Several companies have established a local presence in Perak, including Bromma, the world’s leading crane spreader manufacturer from Sweden, and Tigges, a high-end fastener manufacturer from Germany.
Transport Equipment & Components
Malaysia’s automotive industry has strong ties to Perak, with the national carmaker Proton having established an automotive hub – Proton City – in the Tanjong Malim district. Within this hub, Proton has developed a state-of-the-art manufacturing plant as well as factories for its various vendors.
Automotive industry aside, Perak has a distinct advantage in the railway industry – a result of Perak’s extensive history that goes back to the construction of the country’s first railway line back in the 1880s. The establishment of China Southern Railway’s ASEAN locomotive hub, together with the establishment of KTMB Complex and the Malaysia Railway Academy in Batu Gajah, clearly show the major role that Perak still plays in the railway industry. Through Perak’s past experience and present commitment, the railway industry in the country is expected to grow.
Electrical & Electronics
The E&E industry is one of Malaysia’s key manufacturing sectors, and Perak is no exception. With Perak’s competitive labour costs and close proximity to electronics manufacturing hubs like Klang Valley and Penang, the state has plenty to offer investors. Global industry leaders such as Yamaha, Murata Electronics, SunEdison Semiconductor and Finisar, along with home-grown global players Unisem and Carsem, have been operating in the state for decades, with continuous expansions and investments over the years.
With Perak’s focus on the manufacturing industry, it is only natural that the state has plans to expand further into the pre-manufacturing process of research and development, design and prototyping. With a small but thriving presence of such service centres adding value to Perak’s manufacturing process, the manufacturing-related service industry is slated to grow over the coming years.
Renewable Energy-Related Industries
Renewable energy is the energy of the future. Countries all over the world have intensified research into solar, hydro, wind and geothermal energy, recognising the need for advancement within the industry. Under the National Renewable Energy Policy and Action Plan, Malaysia aims to achieve 2,065 MW of installed power generation capacity from renewable energy sources by the year 2020 – 9% of the nation’s power generation fuel mix. This will be a tenfold increase from Malaysia’s current installed capacity.
Thanks to the advancement of technology, costs in manufacturing of solar PV, wind turbines and biofuel processing technologies are becoming more competitive, affording the industry a chance to grow in the years to come. Perak welcomes companies looking to manufacture renewable energy generation-related products and components. Perak also offers opportunities for investors to work with state-linked companies to explore solar and mini hydro-power generation opportunities.
*Source: SEDA Malaysia NREPAP 2009
Medical & Scientific Devices
The manufacturing of precision instruments used in the field of medicine is a process that requires a highly-skilled workforce in order to ensure top-quality products. With the increasing demand for automated instruments in the medical field and a trained workforce ready to meet the industry’s demands, Perak is looking to delve deeper into the medical manufacturing sub-sector.
As one of the key growth areas highlighted by the Malaysian Government, biotechnology is one of the sectors Perak is looking to develop further. By 2020, the Government is aiming to have biotechnology making up 5% of national GDP. Under this sector, activities related to the development, testing and manufacturing of pharmaceuticals, fine chemicals, food and food ingredients, cell cultures and biomaterials are encouraged to make strides in Perak’s favourable developmental environment.
Perhaps the most important factor any investor looks to before investing in a country or region is the available workforce. To this end, Perak is proud to be the home of several well-established educational institutions, including the renowned Universiti Teknologi Petronas (UTP), which produces top quality technical graduates every year; Ungku Omar Polytechnic (PUO), which was the first polytechnic in the country; as well as other institutions such as UniKL Royal College of Medicine Perak (UniKL RCMP); UniKL Malaysian Institute of Marine Engineering Technology (UniKL MIMET); Mara University of Technology (UiTM); and Tuanku Abdul Rahman University (UTAR).
In addition to these institutions of higher-learning, Perak also has technical training centres that produce skilled and semi-skilled workers tailored to serve the industries’ needs for manpower.
Halal industries – covering not only the production of food and beverages, but pharmaceuticals, cosmetics and other consumer goods too – are one of the fastest growing industries in the modern world. The global Halal market is currently estimated at USD$2.3 trillion and is growing at roughly 20% per annum. In 2011, Malaysia’s export of Halal products was recorded at RM 35.4 billion – 5.1% of total nationwide export. Perak welcomes investors to benefit from the availability of raw materials in Perak.
With an estimated global Muslim population of 1.8 billion, and increasing awareness of Halal products among non-Muslims, the untapped potential market for Halal products is huge, and it is a market Perak is eager to delve further into.
Oil & Gas Downstream Activities
Perak is aiming to develop its Oil & Gas industry downstream activities. As a state, Perak offers its shores as a distribution point, to allow petrochemical companies to access the Straits of Malacca as a shipping route – an aspiration that coincides with that of the Economic Transformation Programme (ETP) through the Oil, Gas and Energy NKEA.