Saturday, July 13

PNB, EPF, and KWAP Collaborate on RM2 Billion Investment in Kulim II High-Tech Industrial Asset

Permodalan Nasional Bhd (PNB), the Employees Provident Fund (EPF), and Kumpulan Wang Persaraan (Diperbadankan) (KWAP) are joining forces to invest RM2 billion in the Kulim II high-tech industrial asset.

In a joint statement, the co-investors have announced a sale and leaseback agreement with Osram Opto Semiconductors Sdn Bhd, a wholly-owned domestic subsidiary of Austria’s ams Osram AG, renowned for its expertise in intelligent sensors and emitters.

The transaction is set to be finalised in December, with PNB, EPF, and KWAP each holding a 33.3% ownership stake.

This 10-year investment comes with a well-defined exit strategy, presenting an opportunity for the co-investors to put their money into a high-quality, high-specification industrial real asset in Malaysia, offering competitive returns.

“In addition, the investment catalyses foreign direct investment by enabling our partner to deploy more capital in Malaysia. This aligns with one of the goals of the Madani Economy Framework, which aims to establish Malaysia as a leading Asian economy, and enhances our global competitiveness, resulting in high-impact growth investments for the country,” the statement wrote.

The aim is to establish Malaysia as a leading Asian economy, enhancing global competitiveness and driving high-impact growth investments for the nation.

This investment aligns with Malaysia’s New Industrial Master Plan 2023, specifically working towards advancing economic complexity.

The facility will facilitate the creation of an ecosystem supporting high-value-added activities, particularly in semiconductor fabrication.

By injecting capital into the electrical and electronics sector, it enables ams Osram, a global leader, to establish the world’s first fully automated eight-inch LED and micro LED manufacturing facility.

This development reinforces Malaysia’s vision of becoming a prominent high-tech manufacturing hub and rejuvenating the ‘Made in Malaysia’ brand.

The products produced in ams Osram’s Kulim II facility will contribute to the country’s goal of expanding high-tech manufacturing exports and establishing a global presence, leading to additional employment opportunities in the field of science and high-tech semiconductors.

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