In a boost to Malaysia’s electronics sector, a wholly-owned subsidiary of design, manufacturing, and Internet of Things (IoT) solutions provider, Computime Group has entered into an agreement with Rubicon Sapphire Technology (Malaysia) to acquire the firm’s manufacturing facilities in Malaysia for RM20,750,000 (US$5,070,250).
The agreement to purchase the manufacturing facilities was signed on December 20, 2019, and includes a parcel of 60-year leasehold land of 12,383 m2 in Pulau Pinang, Malaysia with an unexpired term of about 51 years expiring on 15 March 2071, together with all the buildings erected thereon, which includes, inter alia, factory premises with a total gross area of approximately 6967.67 m2. Upon completion of the agreement, Computime will indirectly hold the manufacturing facilities.
“After completing the acquisition, the Group intends to utilise the manufacturing facilities for the development of its own manufacturing and supply chain capabilities in Malaysia,” said Dr King Owyang, executive director and CEO of Computime.
“Going forward, diversification of manufacturing site is part of the strategic direction of the Group because it further enhances the competitiveness of the Group,” added Dr Owyang. “This arrangement provides the flexibility for more customisation and optimisation that will benefit both the up-coming needs of our customers and Computime.”
“ASEAN countries like Malaysia have many advantages to offer, and Penang is especially attractive to Computime.”
Dr Owyang said that the reason Penang was chosen was due to the locations long electronics manufacturing history, a good technical foundation, an availability in human resources, a close proximity to Hong Kong, and appropriate language skills that are important criteria which match the needs of Computime, including speed to bring up operations and production of the factory and a long term sustainability of future growth of the Penang site.
“The company looks forward to the contribution of this recent important acquisition to support its aggressive growth plan,” added Dr Owyang. “We plan to have the factory be ready for operations in a relatively short time in order to meet the urgent market customers’ demand.”
KEEP YOURSELF UPDATED, SUBSCRIBE TO IAA NOW!