JOHOR BAHRU: VS Industry Berhad (“VS”), a leading Electronics Manufacturing Services (“EMS”) provider in Malaysia, through its subsidiary VS Industry Philippines, Inc. (“VSIP”), has secured significant new orders from a key customer. These orders involve manufacturing various consumer electronics products through comprehensive box-build assembly services, encompassing production, assembly, testing, packaging, labelling, and logistics.
The anticipated revenue from these orders is expected to be RM0.3 billion for the financial year ending 31 July 2025 (“FY25”), escalating to RM1.2 billion by FY26, reflecting a total revenue projection of RM1.5 billion over the next two financial years.
Datuk S.Y. Gan, Managing Director of VS, expressed enthusiasm about this development, highlighting its strategic importance in reinforcing the Group’s manufacturing prowess and solidifying its position among the top 5 EMS providers in ASEAN and the top 50 globally. He emphasized plans to commence mass production at the Philippines facility by the first quarter of 2025.
Additionally, VSIP has entered into a lease agreement with ALogis Artico, Inc. (“AAI”) for a 52,782 square meter area within the Light Industry and Science Park III in Batangas, Philippines. This asset-light approach aligns with VS’s risk management strategy, minimizing financial commitments while facilitating operational agility. The capital expenditure of approximately RM100.0 million will be internally funded, with machinery installation and trial runs set to begin soon.
Gan further underscored the strategic significance of these developments, stating that the projected revenues will enhance earnings and broaden geographical reach, marking an exciting phase of growth for the Group. Leveraging their technical expertise and robust financial position, VS is poised to capitalize on opportunities in the Philippines market.
The identity of the customer remains confidential under a non-disclosure agreement between VSIP and the customer, an existing partner of the Group in Malaysia.
The lease agreement spans five years from 2 September 2024, with provisions for renewal for an additional five years, subject to mutual agreement. AAI, a wholly owned subsidiary of AyalaLand Logistics Holdings Corp., specializes in industrial real estate, leasing standard factory buildings, and operating cold storage facilities in the Philippines.
