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Investment & Expansion

KOA Denko expansion in Melaka expected to create more than 950 jobs

The company is targeting monthly production of 8.2 billion chip resistors by 2028 at its expanded Ayer Keroh operations.

Illustration of an electronics manufacturing production line
Photo: BERNAMA

KOA Denko Malaysia Sdn Bhd’s manufacturing expansion in Ayer Keroh is expected to generate more than 950 jobs, Melaka Chief Minister Datuk Seri Dr Ab Rauf Yusoh said on Nov 13. The company’s workforce is projected to grow to as many as 1,000 by 2028.

Speaking at the opening of the new facility, Ab Rauf urged the company to prioritise Melaka residents with technical qualifications and specialist skills when recruiting for the positions.

The expansion follows an additional investment of RM1 billion announced at the October 2023 groundbreaking ceremony. The Ayer Keroh plant is now the KOA Group’s largest individual production site worldwide, and the company has set a monthly output target of 8.2 billion chip resistors by 2028.

Ab Rauf also called for closer ties with local suppliers of machinery, equipment and industrial services. He said such cooperation would give local businesses more opportunities to join multinational supply chains.

He welcomed KOA Denko’s existing cooperation with the Melaka Industrial Skills Development and Entrepreneurship Centre (MISDEC), expressing hope that it would offer graduates more practical training and exposure to industry.

Ab Rauf said Melaka wanted to develop its manufacturing sector with a focus on high-value electronics, semiconductors and advanced technologies, aligned with the National Semiconductor Strategy.

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