Major US firms disclose plans to expand to Malaysia

Two major US electrical and electronics firms are set to expand operations into Malaysia, one committing at least RM500 million.

Alton Group's Johor facility

Alton Industry Ltd Group (Alton Group), a global supplier of consumer and commercial tools, appliances and floor care, will invest a minimum of RM500 million to set up manufacturing and R&D operations in Johor, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz announced, following a meeting with Alton Group president and CEO David Lu. The new facility is scheduled for completion in 2024.

"Another company, which I am not able to name for the moment, will be investing a significant sum in Penang. Both Alton Group and this company have operations in China and they want to expand to Malaysia," — Investment, Trade and Industry Minister Tengku Zafrul Tengku Abdul Aziz

Tengku Zafrul said Alton Group's decision reflects confidence in Malaysia as an investment destination, and aligns with the recently launched New Industrial Master Plan 2030, which aims to build an investment-friendly environment and accelerate technology adoption across manufacturing. He said both companies are looking to diversify their supply chains and bring in their own suppliers, further cementing Malaysia's position as a technology and innovation hub. Alton Group separately outlined plans to invest more than RM2 billion over the next seven years to support its expansion.

Top-Line Furniture's growing orders

US furniture importer Top-Line Furniture Corporation, based in Chicago, plans to raise its annual imports from Malaysia to RM230 million. It has sourced home furniture from Malaysia since 2000, with roughly RM840 million in cumulative imports to date, and supplies five of the largest furniture retailers in the US Mid-West through its North American distribution network.

Malaysia exported RM13.86 billion in furniture globally in 2022, with the US its top market at RM7.24 billion — 52.2% of total furniture exports — while Malaysia ranked as the US's sixth-largest furniture import source, at 2.78% of total US furniture and bedding imports.

Alton Group's statement

In a statement issued via MIDA, Alton Group said it is proud to expand its global footprint into Malaysia with the new Johor Bahru facility.

"This new facility will enable us to support our global customers and allow expansion to other markets quickly. The incentives from the federal, state and local governments, in addition to the support in terms of infrastructure makes this a good investment move for the group," — Alton Group

Alton Group operates in more than 75 countries, with offices spanning China, Japan, Hong Kong, Europe and the US; the Johor Bahru facility will serve as a global R&D centre for its new technology platforms.

Source: The Star (Bernama)