MEDICAL devices manufacturer Japan Lifeline Co Ltd is investing ¥2 billion (RM70 million) to build its first overseas factory in Penang , through its Malaysian subsidiary JLL Malaysia Sdn Bhd, the company announced today.

The factory, which will be built over the next two years and scheduled to be completed in the third quarter of the fiscal year ending March 2020, will be sitting on a 16,211 square metre plot of land at the North Penang Science Park on the mainland.

Operations at the factory are expected to begin in early 2020 with an estimated 50 specialised employees.

JLL will manufacture medical devices in cardiac rhythm management, electrophysiology/ablation, and cardiovascular surgery for Japanese markets such as balloon catheters, electrophysiological catheters, ablation catheters and open stent grafts.

“We invest heavily in research and development to ensure we offer the highest quality medical devices to cater to the growing demand,” said Japan Lifeline vice-president Kenji Yamada.

“We are now starting a new chapter in our journey, coming to Penang to build our first factory overseas,” he said.

Yamada, who is also JLL Malaysia managing director, said Penang was the right place to set up the company’s first foreign facility to manufacture quality medical devices at competitive cost.

“Penang is the perfect location with its human resource, infrastructure and state government support,” he said.

Penang has a strong medical devices manufacturing sector, and is home to one-third of medical devices companies in Malaysia.

The state also accounts for a third of the total value of medical devices exported from Malaysia, which was RM17.8 billion in 2016.

Chief Minister Lim Guan Eng said Japan Lifeline would contribute positively to Malaysia’s medical devices export growth.

“Being in the medical device industry, which is more resilient even in the challenging economic landscape, we foresee a more diversified and stronger base for Penang’s economy,” he said in a press conference at his Komtar office.

The sector recorded an estimated 12% growth valued at RM17.74 billion last year, according to the Association of Malaysian Medical Industries.

Lim said from 2008 to June last year, Japanese investors were the third largest manufacturing contributor to Penang, with investments valued at RM5.33 billion, after the United States and the European Union.

“Japan is Penang’s largest Asian FDI contributor. Japanese investment in Penang has a long history.

“Two of the eight Samurai pioneer investors from Japan – Renesas and Clarion – are still operating here,” he said.

Lim also said Penang was the second top recipient of approved manufacturing investment in the first nine months of 2017 at RM9.9 billion, more than doubling 2016’s RM4.3 billion.

Penang also received the biggest foreign direct investment last year among the states in Malaysia at RM8 billion. – February 26, 2018.