HE Group managing director Amos Haw Chee Seng.
PETALING JAYA: Electrical engineering service provider HE Group Bhd
remains upbeat on the semiconductor industry in 2024, backed by the rise of artificial intelligence (AI) and electric vehicles (EVs).
Managing director Amos Haw Chee Seng said most EVs have high-end chips installed in them, which could result in a potential boom in the next two to three years for the industry.
Haw added that with the geopolitical tensions between the United States and China, Malaysia would most likely benefit given Malaysia’s stable ecosystem.
“Now the wave is coming for AI as well and we see a lot of data centres and chipmakers expanding their businesses and operations in Malaysia. These scenarios present a strategic opportunity for the group as an increasing number of existing and prospective customers are exploring expansion of their operations in Malaysia,” he told the media after the company’s listing ceremony yesterday.
While the group has plans to address the expansion of data centres in Johor, Haw said the company is also looking to benefit from the recently announced Johor-Singapore Special Economic Zone.
“We plan to set up data centres there, so we can get a piece of the cake from that market,” he said.
He added that, as part of its post-listing expansion plans, HE Group will open new offices in Kedah in addition to Johor, with plans to start operations by 2025.
“There are a lot of investments in Kedah, especially in Kulim and all the semiconductor giants are there,” he added.
Haw further stated that synergies between the group’s expansion plans, the government’s policies and its status as a listed company will further fuel its growth initiatives while capitalising on market opportunities.
“Looking ahead, the opportunities presented by the government policies inject a refreshing sense of optimism, creating a favourable business environment for the group,” he said.
HE Group debuted on the ACE Market of Bursa Malaysia at 43 sen a share, representing a 15 sen or 53.57% premium to its initial public offering (IPO) price of 28 sen a share. The stock closed at 32 sen yesterday.
HE Group’s IPO saw an oversubscription of 63.35 times prior to its debut on the Ace Market.
Meanwhile, in a filing with Bursa Malaysia, HE Group said its wholly-owned subsidiary, Hexatech Engineering Sdn Bhd, had accepted a new work order from a manufacturer of semiconductor components in relation to a design, supply, installation, testing and commissioning of low voltage power distribution system for RM34.79mil.
