In the second quarter of FY2009, we expanded our operations into Malaysia with a newly-setup plant in Penang engaged in the manufacture of PCBAs for Aerospace-avionic products. We expanded our operations into Malaysia primarily to tap into good opportunities given the increasing concentration of OEMs/MNCs in the country and its potential to develop into a huge market base for our customers’ end products.
We also intend to further expand our manufacturing capacities in Bintan. This will enable us to derive more economies of scale and to leverage further on the expertise, experience and concentration of our manufacturing resources in such strategic locations of generally low costs.
We aim to expand our Box-Build and Product Sub-Assembly to increase their revenue and profit contribution to our Group. We intend to leverage on our existing pool of customers and also plan to market to new customers operating in industries that we currently service. We intend to expand our Box- Build and Product Sub-Assembly services into Bintan to leverage on lower costs in Bintan.
Through our Singapore marketing base, we currently generate revenue from Singapore, USA, and UK with the end products of such customers being used in different parts of the world.
We believe that we will be able to develop more markets and secure more businesses by setting up marketing and sales contact points in strategic proximity to our target customers.
Collaborative partnerships enable partnering companies to collaboratively plan, design, develop, and manage products and the manufacturing process through value engineering and “design for manufacturability”. The major benefits derived may include costs avoidance/reduction, lead-time reduction, increased revenue, timeliness to market and better customer retention.
We strive to secure more opportunities for such partnerships with our key customers on an ESI basis; i.e. involvement in their product development activities and upstream supply chain management. This also provides us with the visibility of some of such customers’ future products and enables us to further build on a good working relationship with them, thus strengthening our marketing efforts whilst enhancing our technological knowledge base.
We intend to broaden and diversify our product and service offerings to strengthen our vertical integration capabilities and thus provide more extensively for the needs of our customers in the industries that we service. We plan to extend our manufacturing services e.g. to include precision machining. We intend to undertake this corporate development thrust through the set up of new business(es), acquisition and/or joint venture in order to facilitate our vertical integration.