KUALA LUMPUR: ACE Market debutant Northeast Group Bhd has asked the government to provide more details on the National Semiconductor Strategy (NSS) as it seeks a clearer understanding of how the government plans to assist industry players in the upcoming Budget 2025.
Northeast Group chairman Datuk Seri Lee Kah Choon said the group is looking forward to receiving details on how the government will incentivise the manufacturing industry.
The company is also keen for the government to implement initiatives to cultivate more talent which would help drive the industry forward.
“I believe that talent-related initiatives are crucial as the country cannot move forward nor can it have a sustainable economy without sufficient talent to drive it,” he said in a press conference after Northeast Group’s listing ceremony here, yesterday.
In the longer term, he noted that the country as a whole needs more talent to attract higher investment inflows into the country, wherein the industry players, including Northeast Group, could benefit from this investment by helping them to expand their operations.
Northeast Group debuted yesterday at 53 sen, a premium of three sen over its initial public offering (IPO) price of 50 sen. At the opening bell, 22.71 million shares were traded.
Northeast Group closed 1% up to 50.5 sen, with 153.1 million shares traded. It was the most active counter of the day.
The company has successfully raised RM84.49mil through the public issue of 168.99 million new ordinary shares based on a price of 50 sen each.
Out of the total proceeds, RM40mil has been earmarked for the construction of a new factory while RM12.4mil is being allocated for the purchase of 36 new computer numerical control machines (CNC) in line with the group’s plans to grow its customer base and serve more local and international customers.
“The new factory in Penang will add another 200,000 sq ft of total built-up space and will double the group’s manufacturing capacity,” Lee pointed out.It was previously reported that the new construction of the new factory, which could accommodate some 200 units of CNC machines, is slated to start at the end of this year while operations would likely begin in the first quarter of 2027.
Northeast Group specialises in the manufacturing of precision engineering components used in the photonics, electrical and electronics, semiconductor, telecommunications and optoelectronics industries. — Bernama
