KUALA LUMPUR: QES Bhd is teaming up with US-based Applied Engineering (AE) to provide high-tech electromechanical contract manufacturing services in Batu Kawan Industrial Park, Penang.

       Both parties had signed an agreement to set up the joint-venture (JV) company, Applied Engineering Technology (M) Sdn Bhd (AET), to provide services ranging from prototyping to high volume production, according to a joint statement yesterday.

       The JV will cater to the specific needs of clients in the semiconductor equipment manufacturing, life science and medical devices, defence, as well as the aerospace market segments, not only in Malaysia, but also Asean and China.

       The proposed initial investment for AET is about RM5mil with a workforce of 20 workers, comprising mainly engineers and technicians.

       The investment is set to expand up to RM20mil over the next three years.

       QES group president Chew Ne Weng (pic) said being a JV partner, it would play its role to support the high technology equipment manufacturing project using its established networks across Asean, China and other parts of Asia for AET to expand.

       AET planned to start its operations in a temporary premise before moving to its new factory in Batu Kawan Industrial Park during the fourth quarter of 2022.

       Malaysian Investment Development Authority (Mida) chief executive officer Arham Abdul Rahman said the electrical and electronics (E&E) and related services industries continue to assume a critical role in Malaysia’s industrial development.

       He said they are part of the critical global supply chain and ecosystem to support other high technology industries.

       “Mida is optimistic that AE’s presence here will further boost the development of our high technology equipment ecosystem, enable more opportunities for our local vendors and spur employment for Malaysians,” he said.

       AE president Jack Yao said Mida has been crucial in enabling both companies to come together to set up the JV.

       “Malaysia will provide the launching pad to AE’s strategic move to expand outside the United States to service its major customers in Malaysia and the Asia-Pacific.

       “AE will bring its latest generation of high-end technologies to Malaysia and build up a whole new sector.

       “A significant number of research and development activities are also planned for this new location. Malaysia can benefit and strengthen the region as a high-tech manufacturing hub in Asia-Pacific.”

       QES group president Chew Ne Weng (pic) said being a JV partner, it would play its role to support the high technology equipment manufacturing project using its established networks across Asean, China and other parts of Asia for AET to expand.

       “QES hopes to leverage the well-established and technical strength of AE to further improve our manufacturing capabilities. Together with Mida, QES anticipates AET will create a sustainable high technology equipment manufacturing eco-system within E&E and medical segments for Malaysia,” said Chew.