OPENING CEREMONY FOR FACTORY OF ADEKA FOODS (ASIA) SDN BHD

SPEECH BY

YAB DATO’ MOHAMED KHALED NORDIN

MENTERI BESAR JOHOR

OPENING CEREMONY FOR 

FACTORY OF ADEKA FOODS (ASIA) SDN BHD

AT THE PLO 167, JALAN NIBONG 3, 

KOMPLEKS PERINDUSTRIAN TANJUNG LANGSAT, PASIR GUDANG, JOHOR

ON MONDAY, 08 SEPTEMBER 2014

AT 9.30 A.M.

 

 

Assalamualaikum Warramatullahi wabarakatuh

 Salam 1Malaysia and Salam Muafakat Johor.

 

1. First of all I thank Allah SWT for His grace and blessings that we are able to be gathered here, for the Opening Ceremony of Adeka Foods Company (Asia) Sdn. Bhd. in Tanjung Langsat Industrial Complex, today. I am deeply honoured to be here to share this momentous occasion with you. I thank Adeka Foods (Asia) Pte. Ltd., for inviting and giving me the opportunity to say a few words and officiate the opening of its new factory. 

 

2. At this point, I would like also to congratulate the Board of Directors and management of Adeka Foods (Asia) Pte. Ltd. for their investment in Johor in food manufacturing. All of us are aware, the business of Adeka Foods spans the globe and the State Government of Johor considers itself very fortunate that Adeka Corporation has chosen Johor as one of its base.

 

Ladies and Gentlemen,

(Economic Vibrancy, Investments in Johor)

 

3. As you know the Southeast Asian region is one of the most vibrant business environments existing to date. This has resonate well with the Malaysian Economy. With the earlier reforms and initiatives introduced by the Government, this have further provided an impetus in attracting private investments. This year, we saw that the Malaysian economy expanded by 6.4% in the second quarter of 2014, and increase from 6.2% in the first quarter, as reported by Bank Negara on August 2014.

 

4. The economic landscape for Johor too is expected to remain resilient especially in the manufacturing sector.  Statistics from the Malaysian Investment Development Authority (MIDA) indicate that total investment projects approved in the manufacturing sector as at end of May 2014, has reached RM14.9 billion (USD4.6 million) compared to a total figure of RM14.2 Billion for the whole of 2013. To date, these investments has created more than 3,000 jobs. 

 

5. Of this amount, RM10.8 billion (USD3.4 billion) or 72.65% came from Domestic Direct Investment (DDI), while RM4.08 billion (USD1.2 billion) or 27.35% from Foreign Direct Investment (FDI). Furthermore, about RM1.6 billion (USD508 million) or 11.32% came from Food Manufacturing industry.  

 

Ladies and Gentlemen,

(Johor Agricultural Focus in Palm Oil compliments Adeka Foods)

 

6. Johor has always been strong in its Agricultural Industry and remain as the country’s most important food producer. Johor currently has the largest palm oil plantation (in terms of acreage) in Malaysia. As global demand for oil palm based products continue to expand, it is crucial for us to identify technologies that can be applied in adding value and resulting in productivity and new sources of energy and other by-products that are in high demand. 

 

7. I am also aware that palm oil is one of the reason that Adeka Foods has chosen Johor as its location to set up its manufacturing facilities here. We applaud this move and would compliment this effort accordingly.  To date, the State Government is focusing its efforts in expanding our Agricultural produce by encouraging farmers and food producers to increase their productivity by adopting modern techniques and technology. By this, we will ensure the expansion of the downstream activities such as manufacturing and distribution of food based products in the foreseeable future. It is our hope that this collaborative partnership between the government and the private sector coupled with having a “pro-business” policy, we will be able to provide the necessary boost for the food manufacturing sector to grow.

 

Ladies and Gentlemen,

(Welfare of the workers and locals, Pelan Suara Hati Johor)

 

8. The state government have introduced a number of strategic reform initiatives over the last year.  These include greater private investment initiatives, providing a pool of talented workforce and skills, enhancing public amenities and infrastructure, sustaining growth by implementing pro business policies, as well as maintaining fiscal sustainability. As a result, Johor now enjoys the country’s largest GDP.

 

9. However we must be mindful to the fact that all these achievements are not possible without the contributions of the local people of Johor who has embraced businesses into their State. To date, the 3.5 million Johoreans are witnessing the growth of the State in ways that was previously only seen in other countries. The “Suara Hati Johor” Plan seeks to balance the need of the people when faced with growth in economy. One of the strategic thrust of the Plan is the social well being of local people. This includes creation of job opportunities, adequate compensation plans, healthcare and optimizing the marketability of existing talent pools. Incentives must be given to those deserving so as to create equitable balance of wealth distribution. This in turn will create a vibrant working condition with high morale. 

 

10. On the opposite spectrum, we do not want the exploitation of workers, inadequate medical facilities and inhumane working conditions to even exist in our business environment. We are minded of the recent riots in a factory nearby which is the culmination of not adhering to the principles elucidated in the Pelan Suara Hati Johor.

 

Ladies and Gentlemen,

(High Income State, Key Economic Drivers)

 

11. The State of Johor has always been the proponents of growth for businesses long before any other. This has started 30 years ago when Johor Corporation (JCorp), the State GLC embarked its venture to be the key industrial developer.  Since then, the evolution of Johor based businesses has flourished

 

12. Our goal is to achieve a high-income State by 2020. We are moving to the next phase of developing our capital markets to a greater internalization of high income strategy. Our target is to achieve a per capita income of RM49,500 from the current RM25,000 by 2020. In order to achieve this, the Johor State Government will implement strategic key initiatives that will ensure this goal is met. This was highlighted in the Johor Budget 2014 “Attracting quality investments, based on advanced technology and innovation”. The key economic growth of the State will be driven by new technologies, modern infrastructure, with a highly skilled workforce, a vibrant and competitive business ecosystem; supported by an efficient and responsive public service.

 

13. At the same time, we will continue to establish strategic collaborative partnerships that will further strengthen the economic drivers. The Johor state government administration has developed a good and close working relationship with Investment Promotion Agencies and NGOs in a bid to channel investments into Johor and to address the issues and problems affecting our current investors. This working partnership also seeks to ensure that Johor remains firmly as one of Malaysia’s top investment destination.. The authorities such as Johor State Investment Centre (JSIC), MIDA and Iskandar Region Development Authority (IRDA) are also playing a significant role in facilitating and promoting investment in Johor.

 

14. In October last year, the state government decided to establish the Johor Investment Committee (JIC) that serves as a platform for the state agencies to reduce red tape in facilitating investment into Johor especially for issues and challenges faced by the investors.

 

15. All of these are the State Government’s  efforts to positioning Johor in becoming a high-income state, a preferred destination for investment and having an envious quality of life, embracing both progress and tradition. Premised on these strategic thrusts, I am hopeful that the creation of a competitive, sustainable and yet inclusive business environment will further provide the necessary boost to take Johor to the next economic transformation 

 

Ladies and Gentlemen,

(Adeka Foods)

 

16. Being the state assemblyman for Permas of which Pasir Gudang is within its constituency, I am pleased with the developments here. I am glad that my constituency is attracting the right kind of investments and experiencing robust growth for economic development. I understand that Adeka Foods (Asia) Pte. Ltd. have been producing margarine with the famous 'Risu’ brand since 1926 in Japan. And today, the Japanese margarine icon of Adeka Corporation has expanded its production to Tanjung Langsat Industrial Complex, here in Johor.

 

17. As we are aware, the products based on palm oil and margarine are very competitive, but with advanced technology used by the Adeka Foods (Asia) Pte. Ltd., I am sure the company will see further expansion in its business. It is my hope that the future expansion of Adeka will translate into further investments into the State of Johor. 

 

18. Investment from Japanese investors into Johor has been substantial in the last few years.  In 2013, total amount of FDI received from Japan was RM528 million (USD164 million) or 4.58% from overall FDI, whereas RM454 million (USD140 million) or 10.98% of FDI was received in 2012.  

 

19. I am very confident with the political stability, the right infrastructure, conducive and secure business environment, coupled with abundant raw materials and talent pool, Johor will continue to attract investors like Adeka Foods to invest here. 

 

Ladies and Gentlemen,

(Congratulatory and officiate) 

 

20. In this occasion I would like to express our appreciation and thanks especially to the relevant government agencies and private sectors for the realization of building Adeka Foods new factory and office complex today. My gratitude also goes to the management of Adeka Foods (Asia) Pte. Ltd., especially to Mr. Masaru Miyamoto as the Managing Director of the company, for inviting me and his remarkable staff for their success in hosting today’s event. 

 

21. On this note, it is my pleasure to congratulate Adeka Foods (Asia) Pte. Ltd. and declare the new factory and office for Adeka Foods Company (Asia) Sdn. Bhd. in Tanjung Langsat Industrial Complex, officially open.

 

Thank you.

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