Photo - Simon Song, Managing Director, Bosch in Malaysia
Manufacturing and technology solutions company The Bosch Group has ended its 2015 fiscal year in Malaysia with a 10 percent increase from the previous year to RM664 million (153 million euros) in consolidated sales.
Simon Song, managing director of Bosch in Malaysia, said the results make Malaysia the second largest revenue contributor to Bosch in Southeast Asia.
The company's workforce in the country rose to more than 2,600 associates, which is Bosch's largest workforce in Southeast Asia at 38 percent, said Song
"We surpassed our own business expectation in the past year with growth above market average for most of our divisions," he said.
"The Malaysian market and industry are dynamic and changing rapidly," said Song. "Increased agility and new ways of seizing opportunities are essential. This includes strengthening our collaboration with partners, widening online portfolios for consumer-centric products, and increasing our mid-price point product range that is sophisticated, yet affordable."
Key R&D location
He said Malaysia was also becoming a key research and development location for the Bosch Group. Last year alone, Bosch invested more RM 138 million (32 million euros) into the country.
The expansion of Bosch's car multimedia plant in Penang in April this year is an example of this, Song added. Besides increasing production capacity, the plant expansion will allow Bosch in Malaysia to take on more projects in developing future connectivity solutions for Bosch worldwide, and integrating them into today's cars.
Another key investment in 2016 is the retrofitting of the car multimedia plant with Industry 4.0 technologies.
Song said the full acquisition of Robert Bosch Automotive Steering GmbH last year has allowed Bosch to expand its mobility solutions portfolio in Malaysia with an increased product range and offerings. Since last year, the Automotive Steering plant in Penang began supplying electric power steering systems to local automotive manufacturers.
Bosch also acquired projects for Connectivity Control Units (CCU), and Malaysia is the company's designated global R&D facility for further development of the CCU for markets worldwide such as China and Europe.
To foster greater awareness on safe driving, Bosch also became a partner of the Malaysian 'Safe Steps' programme. The programme, initiated by the Prudence Foundation, is a first-of-its-kind pan-Asian public service campaign to raise awareness on road safety, said Song.
In addition, Bosch's Mobility Solutions business sector recorded more growth in Malaysia. The Automotive Aftermarket increased sales growth, largely attributed to new product segments such as car lubricants and more fast-moving items that fit over 90 percent of cars for the Asian market.
The company's Energy and Building Technology business sector also supported the Malaysian manufacturing and real estate industries with innovative solutions, he said.
"Bosch is an exceptionally diversified company, and this diversification is our strategic advantage in an age of connectivity. We therefore see considerable business opportunities in the areas of ecommerce, connectivity, and geographical outreach within Malaysia," said Song.
Bosch has been present in Malaysia since 1923, represented by Robert Bosch, with offices located in Selangor, Penang and Johor. In Malaysia, Bosch is active in the areas of Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. The company has three manufacturing arms in Penang providing car multimedia systems, power tools and automotive steering. In 2015, Malaysia contributed sales of RM664 million (153 million euro) and employed more than 2,600 associates.
Sign up for CIO Asia eNewsletters.