Despite recent bad news, some areas of the manufacturing sector in Penang are doing well
The closure and relocation of the Penang plant gave the impression that the manufacturing sector, especially the technical sector that is the backbone of the state\'s free industrial zone, was not going well.
But the surge in global demand for plastic packaging materials, food, test equipment, aerospace components and game consoles has benefited some of Penang\'s companies involved in these businesses.
Flexible Packaging material manufacturers benefit from ringgit\'s weakness in the US dollar, the reduction in raw material costs and the growth in demand from existing and new customers, especially in the catering and healthcare sectors.
Kelvin Hawa, managing director of Bhd, said the group imported about 45% of its raw materials, while about 60% of its income was US dollars.
\"This offset the cost of imports, allowing us to get more foreign exchange.
\"We also use a small amount of resin for thin-
Measure the product so that we can save our production cost. “As the thin-
\"Measuring the material has a higher value due to its durability, the selling price remains the same, and will not be adjusted downward as the price of the resin decreases,\" Khaw added . \".
The price of resin is currently around $1,200 per metric ton (MT)
By contrast, 2014 was $1,600 per metric ton.
The price of packaging materials is between $2,200 per metric ton and $2,700 per metric ton, depending on whether they are traditional or thin
Packaging materials.
The food and beverage industry generated 12% revenue, providing stable orders for the group\'s tradition and high revenuevalue products.
\"Looking forward to the future, we want to lock the group\'s business in the healthcare sector, which is another reliable area where consistent orders can be provided.
\"We are talking to a healthcare client in China and we plan to supply him with about 1,800 tons of packaging materials by 2018.
\"The group plans to produce 18,000 tons of plastic packaging materials per year
Ultimately, the value of the ton is about RM154mil, according to the average selling price of $17,000 per ton compared to 2,200 tons in 2015, \"Khaw added.
The Tongguan Industry Bhd also relies on the growth of the food and beverage industry to become the largest PVC (PVC)
Food packaging manufacturers-South
East Asia as of the end of 2017.
Datuk Ang Poon Chuan, general manager of the group, said PVC production is expected to increase from about 14,000 tons to 8,000 tons by 2018.
\"The PVC food packaging business currently accounts for about 9% of the group\'s revenue and is expected to contribute about 18% by 2018,\" he added . \".
Tongguan expects its performance to increase by more than 2015 this year due to increased demand for stretching
The film products of existing customers and new customers highlight the double
According to Ang, the digital percentage of orders for the second half of 2016 increased by no more than 20%.
Thong Guan has set a target of producing about 120,000 tons of packaged products this year, an increase of about 20% over a year ago.
According to a report from Smithers Pira, the global flexible packaging market will grow at an average of 3 per year.
4% for the period from 2015-
$2020, $ 248bil in 2020.
The report said that the food packaging industry, which accounts for more than 70% of the global consumer flexible packaging market, grew by an average of 4% in volume, reaching over 18 years old.
8 million tons in 2015.
The growth in demand for game consoles in the ASEAN region has brought new businesses to console manufacturers such as RGB International Bhd.
According to the needs of the ASEAN gaming industry, RGB is expected to increase by two digits over last year\'s net profit.
Datuk Chuah Kim Seah, general manager of the group, said that RGB received more orders from entrepreneurs in ASEAN countries to rent or buy game consoles.
\"The guarantee order for the first half of 2016 was 700 game machines worth 500 yuan, of which about one has been delivered to customers.
\"In the second half of the year, the group also had 400 consoles, and the market value expected to be delivered by the end of the year was RM45mil.
\"South Asia is also a potential market we are trying to penetrate.
\"Since our income is $ 60%, we naturally get foreign exchange as ringgit weakens,\" Chuah added . \".
According to a report released by Scotiabank in July 2016, after a sharp decline in revenue, global gaming revenue will stabilize in 2016.
\"With the increase in the number of travel in Europe, the United States and Asia, the economic situation will continue to support the game --
The Pacific region so far this year.
\"As China shifts to consumption, it is unlikely that China\'s economic slowdown will affect outbound travel spending --
Compared with resource extraction and manufacturing, it is based on growth.
\"China\'s rapidly growing middle class and rising wages will increase gaming revenue in the region and drive the development and expansion of large casinos in Vietnam, Malaysia and the Philippines, the report by scotiabank added.
The long-term outlook for the aerospace industry looks optimistic, as Boeing recently predicted that it would need 39,620 new aircraft worth $5.
9 trillion in the next 20 years
Engineering and equipment (M)
Bhd, a leading aircraft component manufacturer, is expected to generate 80% of its aerospace business revenue in 2017, as orders in the group\'s hands have increased to 3 Myr.
5 bil from RM2bil on 2014.
In August 20 last year, Sam Engineering won the long-term
Regular contracts for the provision of major machined parts to A319neo, A320neo and A321neo PW110G engines, which will increase the projected $30 m (RM520mil)
Current order.
However, in the short term, the growth of the aerospace industry is experiencing some setbacks due to the slowdown in Boeing delivery.
\"Boeing gave $2016 in revenue guidance --
$95, just under $96 at $2015.
\"It\'s not surprising that the drop is due to Boeing already warning investors that the delivery speed of Boeing 2016 will slow down,\" said market realist, a leading institutional supplier.
Research and Analysis of quality investment.
SAM Engineering, for example, reported lower quarterly net income as of June 30, 2016.
The group released rm9.
Compared with rm13, net profit is 8mil with support of rmymmil revenue.
2mil and rm134.
4 mil was achieved in the same period of the previous year.
In a submission to Bursa, Malaysia, the group attributed the decline to a decrease in revenue from the aerospace, precision engineering and equipment manufacturing sectors.
Not all technology and electronics companies have experienced slow orders because of the downturn in the semiconductor and electronics industries.
Manufacturers of test equipment in Penang are expected to close in the fiscal year as they also supply test equipment to the automotive industry, which accounts for 40% of their business.
They also supply major smartphone brands that require their machines to check the semiconductors and electronic components used in new models next year.
Their income is mainly in the US dollar, offsetting the production costs of 10% to 30% of the cost of importing raw materials.
Pentamaster, for example, Bhd provides about 40% of the testing equipment for the automotive industry.
CB Chuah, executive chairman of the group, said the group would deliver testing equipment of about 40 RMB in 2016.
\"About 40% of the test equipment is used in the automotive field compared to 30% a year ago, while the remaining test equipment comes from the smart device field.
\"We are planning a double.
Our percentage increase in revenue and bottom line in 2016.
\"We have spent about 30% of our production costs on importing raw materials, while the revenue is about $ 80%,\" he revealed . \".
According to Chuah, in the first quarter of this year, the group delivered about 30 million yuan of testing equipment, a large part of which was used in the automotive industry.
MMS Ventures Bhd, which provides 40% test equipment to the automotive industry, is also expected to achieve better results at more than 2015.
\"We imported about 10% of our raw materials for testing equipment, while our revenue was about $ 70%.
\"In the first half of 2016, the group delivered 30 to 40 test devices worth more than 20mil,\" Sia added . \".
Printed Circuit Board GUH Holdings Bhd (PCB)
Manufacturers are also expected to increase their performance by 2016 over last year, as orders for PCBs used in the automotive industry, audio-visual products and household appliances have increased.
\"Our pcb is used for branded automotive and consumer electronics and electronics. “The Asia-
Due to the low manufacturing costs, the Pacific region remains the consumer center for electronic equipment manufacturing activities.
Datuk Kenneth H\'ng, general manager of the group, said: \"The demand for PCBs has increased because countries such as Singapore, Thailand and Vietnam have shown high growth in the production of electronic products . \".
Poultry supplier CAB Cakaran Corp. Bhd, driven by demand in Singapore and Johor, is expected to achieve revenue of 2016 yuan in fiscal 2016.
\"In the past six months, demand in the domestic market and Singapore has increased by double digits over the same period a year ago.
\"Tong Huat poultry processing, our subsidiary in Singapore, has benefited from demand growth and is expected to generate about 10% revenue for the group in fiscal 2016.
\"Our company in Johor, which started operations at the end of last year, CAB Cakaran Sultan Sdn Bhd has also recently contributed,\" said Chris Chuah, general manager of the group . \".
Companies that supply to the construction industry are feeling the impact of the slowdown in the construction industry and are taking steps to deal with the situation.
Astino Bhd at present in Penang, Selangor, Malacca and Pahang have six a production facilities is expected to in as at next July of 108,000 Financial Annual in will production about 2017 tons roof and
The group expects fiscal 2017 to be the same as fiscal 2016.
\"Our target production for 2017 is about 108,000 tons of building materials and roofing products, which is more or less an achievement for 2016.
\"We are also looking at revenue targets for about RM38mil per month, which is the same as a year ago.
\"Most of our building materials products are sold nationwide,\" said executive chairman Ng Back Teng . \".
Although the domestic market is developing slowly, he said
The country\'s ongoing infrastructure projects and private housing programs are generating demand for its products.
\"There is no clear indication of when the market will get better, but we think there should be some pick-up in the next two years,\" Ng said . \".
Chin Well Holdings Bhd is reducing production of heavier building grade fasteners and increasing value due to the slowdown
Lighter DIY fasteners are added.
\"In Europe, the slowdown occurred in the third quarter of 2016, while in Malaysia, since the fourth quarter of last year.
\"We expect fastener production to be lower than 100,000 metric tons in fiscal 2017 as of next June, which means that the quarterly production of fasteners in fiscal 2017 will be lower than 25 metric tons, group executive director Cai Jia-ling says.
Chin Well is now in talks with US customers to make deals for do-30 containers per monthit-yourself (DIY)
Fasteners are available for 10 months and can be updated every year.
\"Considering the price of fasteners today, the value of these 30 containers is about $500,000.
\"As more and more people are working on renovations for their homes, the demand for DIY fasteners has increased in the UK and Europe,\" Tsai added . \".
Chin Well is also negotiating a major deal with US customers to sell its subsidiary Chin Herr\'s grill network.
But the surge in global demand for plastic packaging materials, food, test equipment, aerospace components and game consoles has benefited some of Penang\'s companies involved in these businesses.
Flexible Packaging material manufacturers benefit from ringgit\'s weakness in the US dollar, the reduction in raw material costs and the growth in demand from existing and new customers, especially in the catering and healthcare sectors.
Kelvin Hawa, managing director of Bhd, said the group imported about 45% of its raw materials, while about 60% of its income was US dollars.
\"This offset the cost of imports, allowing us to get more foreign exchange.
\"We also use a small amount of resin for thin-
Measure the product so that we can save our production cost. “As the thin-
\"Measuring the material has a higher value due to its durability, the selling price remains the same, and will not be adjusted downward as the price of the resin decreases,\" Khaw added . \".
The price of resin is currently around $1,200 per metric ton (MT)
By contrast, 2014 was $1,600 per metric ton.
The price of packaging materials is between $2,200 per metric ton and $2,700 per metric ton, depending on whether they are traditional or thin
Packaging materials.
The food and beverage industry generated 12% revenue, providing stable orders for the group\'s tradition and high revenuevalue products.
\"Looking forward to the future, we want to lock the group\'s business in the healthcare sector, which is another reliable area where consistent orders can be provided.
\"We are talking to a healthcare client in China and we plan to supply him with about 1,800 tons of packaging materials by 2018.
\"The group plans to produce 18,000 tons of plastic packaging materials per year
Ultimately, the value of the ton is about RM154mil, according to the average selling price of $17,000 per ton compared to 2,200 tons in 2015, \"Khaw added.
The Tongguan Industry Bhd also relies on the growth of the food and beverage industry to become the largest PVC (PVC)
Food packaging manufacturers-South
East Asia as of the end of 2017.
Datuk Ang Poon Chuan, general manager of the group, said PVC production is expected to increase from about 14,000 tons to 8,000 tons by 2018.
\"The PVC food packaging business currently accounts for about 9% of the group\'s revenue and is expected to contribute about 18% by 2018,\" he added . \".
Tongguan expects its performance to increase by more than 2015 this year due to increased demand for stretching
The film products of existing customers and new customers highlight the double
According to Ang, the digital percentage of orders for the second half of 2016 increased by no more than 20%.
Thong Guan has set a target of producing about 120,000 tons of packaged products this year, an increase of about 20% over a year ago.
According to a report from Smithers Pira, the global flexible packaging market will grow at an average of 3 per year.
4% for the period from 2015-
$2020, $ 248bil in 2020.
The report said that the food packaging industry, which accounts for more than 70% of the global consumer flexible packaging market, grew by an average of 4% in volume, reaching over 18 years old.
8 million tons in 2015.
The growth in demand for game consoles in the ASEAN region has brought new businesses to console manufacturers such as RGB International Bhd.
According to the needs of the ASEAN gaming industry, RGB is expected to increase by two digits over last year\'s net profit.
Datuk Chuah Kim Seah, general manager of the group, said that RGB received more orders from entrepreneurs in ASEAN countries to rent or buy game consoles.
\"The guarantee order for the first half of 2016 was 700 game machines worth 500 yuan, of which about one has been delivered to customers.
\"In the second half of the year, the group also had 400 consoles, and the market value expected to be delivered by the end of the year was RM45mil.
\"South Asia is also a potential market we are trying to penetrate.
\"Since our income is $ 60%, we naturally get foreign exchange as ringgit weakens,\" Chuah added . \".
According to a report released by Scotiabank in July 2016, after a sharp decline in revenue, global gaming revenue will stabilize in 2016.
\"With the increase in the number of travel in Europe, the United States and Asia, the economic situation will continue to support the game --
The Pacific region so far this year.
\"As China shifts to consumption, it is unlikely that China\'s economic slowdown will affect outbound travel spending --
Compared with resource extraction and manufacturing, it is based on growth.
\"China\'s rapidly growing middle class and rising wages will increase gaming revenue in the region and drive the development and expansion of large casinos in Vietnam, Malaysia and the Philippines, the report by scotiabank added.
The long-term outlook for the aerospace industry looks optimistic, as Boeing recently predicted that it would need 39,620 new aircraft worth $5.
9 trillion in the next 20 years
Engineering and equipment (M)
Bhd, a leading aircraft component manufacturer, is expected to generate 80% of its aerospace business revenue in 2017, as orders in the group\'s hands have increased to 3 Myr.
5 bil from RM2bil on 2014.
In August 20 last year, Sam Engineering won the long-term
Regular contracts for the provision of major machined parts to A319neo, A320neo and A321neo PW110G engines, which will increase the projected $30 m (RM520mil)
Current order.
However, in the short term, the growth of the aerospace industry is experiencing some setbacks due to the slowdown in Boeing delivery.
\"Boeing gave $2016 in revenue guidance --
$95, just under $96 at $2015.
\"It\'s not surprising that the drop is due to Boeing already warning investors that the delivery speed of Boeing 2016 will slow down,\" said market realist, a leading institutional supplier.
Research and Analysis of quality investment.
SAM Engineering, for example, reported lower quarterly net income as of June 30, 2016.
The group released rm9.
Compared with rm13, net profit is 8mil with support of rmymmil revenue.
2mil and rm134.
4 mil was achieved in the same period of the previous year.
In a submission to Bursa, Malaysia, the group attributed the decline to a decrease in revenue from the aerospace, precision engineering and equipment manufacturing sectors.
Not all technology and electronics companies have experienced slow orders because of the downturn in the semiconductor and electronics industries.
Manufacturers of test equipment in Penang are expected to close in the fiscal year as they also supply test equipment to the automotive industry, which accounts for 40% of their business.
They also supply major smartphone brands that require their machines to check the semiconductors and electronic components used in new models next year.
Their income is mainly in the US dollar, offsetting the production costs of 10% to 30% of the cost of importing raw materials.
Pentamaster, for example, Bhd provides about 40% of the testing equipment for the automotive industry.
CB Chuah, executive chairman of the group, said the group would deliver testing equipment of about 40 RMB in 2016.
\"About 40% of the test equipment is used in the automotive field compared to 30% a year ago, while the remaining test equipment comes from the smart device field.
\"We are planning a double.
Our percentage increase in revenue and bottom line in 2016.
\"We have spent about 30% of our production costs on importing raw materials, while the revenue is about $ 80%,\" he revealed . \".
According to Chuah, in the first quarter of this year, the group delivered about 30 million yuan of testing equipment, a large part of which was used in the automotive industry.
MMS Ventures Bhd, which provides 40% test equipment to the automotive industry, is also expected to achieve better results at more than 2015.
\"We imported about 10% of our raw materials for testing equipment, while our revenue was about $ 70%.
\"In the first half of 2016, the group delivered 30 to 40 test devices worth more than 20mil,\" Sia added . \".
Printed Circuit Board GUH Holdings Bhd (PCB)
Manufacturers are also expected to increase their performance by 2016 over last year, as orders for PCBs used in the automotive industry, audio-visual products and household appliances have increased.
\"Our pcb is used for branded automotive and consumer electronics and electronics. “The Asia-
Due to the low manufacturing costs, the Pacific region remains the consumer center for electronic equipment manufacturing activities.
Datuk Kenneth H\'ng, general manager of the group, said: \"The demand for PCBs has increased because countries such as Singapore, Thailand and Vietnam have shown high growth in the production of electronic products . \".
Poultry supplier CAB Cakaran Corp. Bhd, driven by demand in Singapore and Johor, is expected to achieve revenue of 2016 yuan in fiscal 2016.
\"In the past six months, demand in the domestic market and Singapore has increased by double digits over the same period a year ago.
\"Tong Huat poultry processing, our subsidiary in Singapore, has benefited from demand growth and is expected to generate about 10% revenue for the group in fiscal 2016.
\"Our company in Johor, which started operations at the end of last year, CAB Cakaran Sultan Sdn Bhd has also recently contributed,\" said Chris Chuah, general manager of the group . \".
Companies that supply to the construction industry are feeling the impact of the slowdown in the construction industry and are taking steps to deal with the situation.
Astino Bhd at present in Penang, Selangor, Malacca and Pahang have six a production facilities is expected to in as at next July of 108,000 Financial Annual in will production about 2017 tons roof and
The group expects fiscal 2017 to be the same as fiscal 2016.
\"Our target production for 2017 is about 108,000 tons of building materials and roofing products, which is more or less an achievement for 2016.
\"We are also looking at revenue targets for about RM38mil per month, which is the same as a year ago.
\"Most of our building materials products are sold nationwide,\" said executive chairman Ng Back Teng . \".
Although the domestic market is developing slowly, he said
The country\'s ongoing infrastructure projects and private housing programs are generating demand for its products.
\"There is no clear indication of when the market will get better, but we think there should be some pick-up in the next two years,\" Ng said . \".
Chin Well Holdings Bhd is reducing production of heavier building grade fasteners and increasing value due to the slowdown
Lighter DIY fasteners are added.
\"In Europe, the slowdown occurred in the third quarter of 2016, while in Malaysia, since the fourth quarter of last year.
\"We expect fastener production to be lower than 100,000 metric tons in fiscal 2017 as of next June, which means that the quarterly production of fasteners in fiscal 2017 will be lower than 25 metric tons, group executive director Cai Jia-ling says.
Chin Well is now in talks with US customers to make deals for do-30 containers per monthit-yourself (DIY)
Fasteners are available for 10 months and can be updated every year.
\"Considering the price of fasteners today, the value of these 30 containers is about $500,000.
\"As more and more people are working on renovations for their homes, the demand for DIY fasteners has increased in the UK and Europe,\" Tsai added . \".
Chin Well is also negotiating a major deal with US customers to sell its subsidiary Chin Herr\'s grill network.
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