The establishment will create up to 800 new local jobs in Smith+Nephew's manufacturing, engineering, and supply chain divisions over the next few years.
Medical technology company Smith+Nephew, on 28 June 2022 (Tuesday), officially opened its new high-technology manufacturing facility in Batu Kawan Industrial Park in Penang, Malaysia. The facility's opening was officiated by Chief Minister of Penang Chow Kon Yeow, alongside Arham Abdul Rahman, CEO, Malaysian Investment Development Authority (MIDA), and Dr. Deepak Nath, CEO, Smith+Nephew.
According to the company's statement, the facility is 250,000 sq ft in space, and is worth more than USD100mn (~RM441mn) in investment. With this establishment in place, it will create up to 800 new local jobs in manufacturing, engineering, and, supply chain over the next few years, with key roles having been filled.
At the moment, it was shared, the facility will primarily support Smith+Nephew’s orthopaedics business, which is "expected to grow strongly" in the Asia Pacific region. As well, it will enable Smith+Nephew to serve customers and patients sustainably through advanced manufacturing.
"Penang is pleased to be the choice location for Smith+Nephew, serving as an acknowledgement of the skilled talent, well-developed infrastructure, and resilient environment the state holds," Chief Minister Chow said.
"Dubbed as the Silicon Valley of the East, the state’s robust industrial ecosystem not only enables us to accelerate the breakthroughs in the electrical and electronics industry, but further entrenches our position as a medical devices hub in the region. Particularly, Penang has the highest concentrations of medical technology companies in Malaysia and Southeast Asia."
MIDA's Arham concurred with the Minister, sharing that Malaysia is "very excited" to host Smith+Nephew’s manufacturing production — its first manufacturing venture within Southeast Asia — to support the company’s growing orthopaedics franchise.
"This demonstrates our ability in attracting renowned medical devices manufacturers into Malaysia. Smith+Nephew’s presence will also encourage the growth of local companies and our medical devices industry’s ecosystem, and strengthen our reputation as an ideal med-tech manufacturing hub in ASEAN," he added.
Commenting on the opening of the facility, Smith+Nephew's Dr. Deepak said the company is "thrilled" to open this new manufacturing facility in Malaysia — what he calls a representation of its commitment to Asia Pacific, Malaysia, and the customers and patients within. He shared: "It is also a critical piece of our strategy for growth, improving efficiency and resilience, and supports our purpose of 'life unlimited' so that patients across the region and beyond can return to living life to their fullest."
On a separate note, MIDA shared in the same statement that Malaysia is "well-positioned" to be the manufacturing hub for the medical devices industry in Asia. It highlighted that Malaysia is currently home to over 200 manufacturers, with more than 30 medical devices MNCs producing high-value-added medical devices. The second and third tiers of medical device manufacturers for parts and components of medical devices have increased opportunities for local vendors to be integrated into the global supply chain of this industry.
"For 2021 alone, MIDA has approved 38 medical devices-related manufacturing projects worth RM7.68bn (USD1.84bn), which are expected to create approximately 12,500 employment opportunities for the country. The industry shows great promise in generating high-income jobs, increasing export value, and reinforcing the domestic supply chain ecosystem," the statement revealed.
Images / Smith + Nephew's Facebook