News Room - Business/Economics

Malaysia remains a preferred location for business operations, especially in the petrochemical and oil & gas (O&G) related industries.

This is despite facing global headwinds, says the Malaysian Investment Development Authority (Mida).

Chief Executive Officer Datuk Azman Mahmud said Malaysia had the infrastructure for these industries and was still fundamentally strong with the economy expected to grow between 4.0 and 4.5 per cent this year.

"With the implementation of the Pengerang Integrated Petroleum Complex and the Petronas Refinery and Petrochemical Integrated Development project, Malaysia has now been placed on the world map for building opportunities for growth in this ecosystem," he told reporters after officiating the Schmidt + Clemens Group Symposium.

Schmidt + Clemens is a producer of special steel components and a supplier of services for plant operators and mechanical equipment manufacturers.

The company has invested over 14 million euros in a new production plant at the Sendayan Tech Valley in Seremban, while planning to add a few more machines this year.

"This indicates that investor confidence has not eroded. Mida expects to see more companies in the petrochemical and O&G related industries in the near future," Azman added.

Schmidt + Clemens Chief Executive Officer Jan Schmidt-Krayer said the group has already been producing highly innovative spun casting components in Malaysia since 2001.

He said the new plant, twice the size of the company's previous facility in Shah Alam, can cater to the increasing production and provide complete solutions for O&G and petrochemical clients, from both the upstream and downstream segments.

The production of new spun cast tubes for the O&G industry will be a new activity for Schmidt + Clemens in Malaysia.

It will also involve the transfer of new technology into the country, whereby 90 per cent of the production will be undertaken locally.

According to Schmidt-Krayer, the activity is also expected to transform Malaysia into a global hub for the O&G industry.

Meanwhile, the two-day symposium is being held to discuss current trends, new material developments and technical innovations in the industry.