Port of Tanjung Pelepas (PTP) has continued attract investors, with Flextronics -- one of Singapore's leading providers in the electronics manufacturing sector -- investing RM400 million (US$105.26 million) to set up an industrial campus there.

The campus will be set up within the port's Pelepas Free Zone to house production and logistics centres for the company and its various suppliers.

In a statement on July 13, PTP chief executive officer Datuk Mohd Sidik Shaik Osman said the setting up of Flextronic's campus was expected to add a few more independent shipping lines to call at port.
"This is the big start that we have anticipated and with a few more major facilities setting up in Pelepas Free Zone, we foresee the entire region being transformed," he said.

Flextronics signed an agreement with PTP on July 12 to set up the facility. Flextronics was represented by its president and managing director for Asia, Peter Tan, and PTP by Mohd Sidik.

Mohd Sidik said other companies had invested some RM226 million (US$59 milllion) in Pelepas Free Zone."The development of the Flextronics Industrial Campus in Pelepas Free Zone is another important milestone in the development of the port.

"It ushers in a new era of development in the south western corridor of Johor, and we are confident that many more investors will follow the lead taken by Flextronics to take advantage of the unique opportunities available," he said.

For Flextronics, which boasts a huge global portfolio covering 30 countries, it will be the first of its kind in Southeast Asia, boosting an already impressive worldwide portfolio of eight similar sites.

Flextronics has had a very strong presence in Johor and Melaka for the past 10 years, and the new agreement with PTP plays a significant part in the company's planning to consolidate its regional operations under one facility.

The new facility is expected to be operational by the beginning of April 2006, and will cover an area of 1.3 million sq ft of ground space, and provide employment for up to 12,000 staff working a three shift system around the clock.

PTP said Flextronics had chosen Pelepas Free Zone as the free zone status provided for a duty-free business environment, backed up by an excellent logistics infrastructure, and a competitive operational costs and attractive tax incentives package.

PTP claims to be the fastest growing in Southeast Asia. It offers six berths of 360 metres each totalling 2.16 km in length. backed up by one of the largest container yards in the region with a storage capacity of 110,000 twenty-foot equivalent units (TEUs).