Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : MUAR, JOHOR
Tarikh/Date : 09/06/94
Tajuk/Title : THE OFFICIAL LAUNCHING OF SGS-
THOMSON SDN. BHD. EXTENSION PLANT
AND 20TH ANNIVERSARY CELEBRATION
Terlebih dahulu saya mengucapkan terima kasih kepada
pihak pengurusan dan kakitangan SGS-Thomson Sdn. Bhd. kerana
menjemput saya ke majlis menyambut ulangtahun syarikat ini
yang ke-20 dan seterusnya merasmikan kilang tambahannya pada
hari ini. Saya juga mengucapkan tahniah kepada pihak
pengurusan dan kakitangan SGS-Thomson kerana memenangi `The
Prime Minister's Quality Award' pada tahun lalu.
2. I have been made to understand that this company,
established in 1974, began production of epoxy transistors
with only 250 employees. Today, the company with a staff of
some 3,000 produces a wide range of semiconductors including
discrete and standard integrated circuits, memories, etc.
It has also incorporated testing and clean room facilities.
In addition, the company with a cumulative investment of
RM625 million, has also introduced various automated
processes. Besides this plant, Thomson group's
manufacturing projects in Malaysia include Thomson
Electronics Parts (Malaysia) Sdn. Bhd., Thomson Audio (Muar)
Sdn. Bhd. and Thomson Audio (Kulim) Sdn. Bhd. Reinvestment
by the Thomson group of companies in Malaysia attests to its
high regard for Malaysia as a competitive and an important
base for manufactured products.
3. In our efforts to further industrialise, the
manufacturing sector will continue to be the principal
engine of growth for the economy over the next 30 years or
so. Currently, it is the fastest growing and the most
important sector. Last year, the sector's contribution to
GDP was 30.1 per cent and its contribution to export was
71 per cent. For 1994, the manufacturing sector's
contribution to GDP is expected to be 31.4 per cent while
its contribution to exports would reach 75 per cent.
4. During the period January to April 1994, a total of 240
projects with investments amounting to RM5.84 billion had
been approved for the manufacturing sector. Of this total,
RM2 billion is accounted for by foreign investment while
total domestic investment amounted to RM3.84 billion. In
the corresponding period last year, 231 projects were
approved with foreign investment of RM1.11 billion and
domestic investment of RM1.82 billion.
5. However, in the case of the electronics industry,
foreign investments still predominate. In the first quarter
of this year, foreign investment in the 46 approved
electronics projects amounted to RM425.9 million while local
investments were only RM15 million. While the Government
continues to welcome foreign investment, domestic investment
in the electronics sector is also encouraged. Malaysian now
have sufficient expertise to go into this sector.
6. Currently, the electronics industry is a leading
contributor to Malaysia's manufacturing sector in terms of
employment and exports. During the period between 1988 and
1993 the electronics industry registered an output growth of
29.6 per cent per annum. During the same period, this
sector's contribution to export and employment grew at an
annual average rate of 30.4 per cent and 24.4 per cent
respectively. Exports of electronic products have increased
from RM13.1 billion in 1988 to RM46.7 billion in 1993. Last
year, electronics exports constituted 51.9 per cent of total
manufactured exports valued at RM90 billion. Semiconductor
devices accounted for RM17.8 billion or 38.1 per cent of the
total electronics exports in 1993. In the same year,
Malaysia contributed about 24 per cent of the total global
sales of semiconductors.
7. While we are proud of the fact that Malaysia has
emerged as the world's largest producer and exporter of
semiconductor devices, we should also aim for similar
success in other products. As one of the development
thrusts of the electronics industry is to diversify into the
production of a wider range of electronic products to create
both forward and backward linkages, it is hoped that
investors will develop the growth of the non-semiconductor
components, consumer and industrial electronics sub-sectors.
8. While we encourage small and medium-sized corporations
to venture into the electronics industry, the larger
companies are encouraged to produce higher value-added
electronic products. This could be implemented through
greater investment in R & D activities and improvement in
design capabilities.
9. In the past, low labour cost was our competitive
advantage for the development of the electronics industry.
Given the present supply constraints in our workforce,
manufacturers should proceed to greater utilisation of
automation. Towards this end, technological capabilities
would have to be constantly upgraded. In addition, quality
standards to meet stringent demands of the international
markets must be adhered to.
10. I am happy to note that SGS-Thomson has been
consistently supportive and worked in consonance with the
overall objectives of the nation's vision. I understand
that since the mid-80's the company has shifted from
labour-intensive operations to cost-saving automation,
improving and streamlining the processes involved.
11. Through its research and development team here,
SGS-Thomson has created equipment to reduce cycle time of
production. I am told that this innovation has been adopted
by other SGS-Thomson plants the world over. The company has
also been a model for SGS world-wide in more ways than one.
The SGS-Thomson Corporation world-wide is emulating the
organisation by adopting the Total Quality Management
concept and practice which won SGS-Thomson the Prime
Minister's Quality Award in 1993. Within the SGS-Thomson
group world-wide, the Muar plant also has the largest
back-end manufacturing facility, churning out the largest
product volume with the highest monetary value.
12. SGS-Thomson can also take pride in having contributed
significantly to the industrial growth of Muar and to the
development of the supporting industries in the vicinity.
The organisation has participated in several ventures with
local companies which saw substantial savings for all
parties while simultaneously contributing to the economic
development of Muar. These included embarking on joint
supplier improvement programmes and supporting the local
industries and government bodies in Muar by buying
locally-produced materials for the company's consumption. A
total of RM50 million is spent a year to develop local
vendors.
13. In terms of creating job opportunities for the people
in Muar, it is gratifying to note that the company has
provided employment for 3,000 workers, of which more than 95
per cent are locals. I am told that the only expatriate
among the 3,000 is the General Manager himself.
14. Selain daripada memenangi 'The Prime Minister's Quality
Award', Syarikat ini juga telah dianugerahkan 'The Best
Landscaping Award' kerana komitmennya kepada alam sekitar
yang bersih dan 'The Benevolent Employer Award'. Ini adalah
satu kejayaan yang cemerlang dan tahniah diucapkan.
15. Dengan ini saya dengan sukacitanya merasmikan
kilang tambahan SGS-Thomson Sdn. Bhd. dan majlis menyambut
ulangtahun Syarikat yang ke-20.