PNB, EPF and KWAP co-invest in Kulim II high-tech industrial asset for RM2b

• According to a joint statement, the co-investors have signed a sale and leaseback agreement with Osram Opto Semiconductors Sdn Bhd. Osram Opto is a wholly-owned domestic subsidiary of arms Osram AG, an Austria-based company known for its expertise in intelligent sensors and emitters.

KUALA LUMPUR (Oct 30): Permodalan Nasional Bhd (PNB) together with the Employees Provident Fund (EPF) and Kumpulan Wang Persaraan (Diperbadankan) (KWAP) have co-invested in the Kulim II high-tech industrial asset, with a total investment value of RM2 billion.

According to a joint statement, the co-investors have signed a sale and leaseback agreement with Osram Opto Semiconductors Sdn Bhd. Osram Opto is a wholly-owned domestic subsidiary of arms Osram AG, an Austria-based company known for its expertise in intelligent sensors and emitters.

The sale and leaseback transaction is expected to conclude in December. PNB, the EPF, and KWAP will each have an equal ownership stake of 33.3%.

The investment is for a 10-year period with a clear exit strategy. This offers an opportunity for the co-investors to invest in a high-quality and high-specification industrial real asset in Malaysia, which provides 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 investment is also in line with Malaysia’s New Industrial Master Plan 2023, specifically in pursuit of its objective to advance economic complexity. The facility will foster the development of an ecosystem to support high-value added activities, such as semiconductor fabrication.

“The injection of capital to the electrical and electronics sector enables arms Osram, a global leader, to establish the world’s first fully automated eight-inch LED and micro LED manufacturing facility.

"[The facility] underscores Malaysia’s vision of becoming a prominent high-tech manufacturing hub that would rejuvenate the ‘Made in Malaysia’ brand. The products manufactured in ams Osram’s Kulim II will contribute to the country’s goal of expanding high-tech manufacturing exports and establishing a global presence, which solidifies additional employment opportunities in the country in the field of science and high-tech semiconductors,” the statement read.

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