7 replies to this topic

[Benny Yeo]

Well, it seems that this topic (pls click to this link: http://forums.ia-com...hp?showtopic=11) was posted more than a year ago, and yes, my votes were right, Penang has the largest number of Systems' Integrators.

I have been to Penang many many times within the past 3 months, and made a study over the potential of automation industries up north, I can more or less conclude that Penang is not only the largest number of systems' integrators and machine builders in Malaysia, its the largest in the Asean region.

Most precision engineering companies have moved into providing automation solutions and machine building for the worldwide market, especially for US and the Europe markets. And after interviewing many of these companies, I found that the major issue, or should I say "the major problem", is that they do not capitalise on protecting their IPs. Only a small handful of them (among my findings) focus their concentration on designs and IPs while outsourcing its majority engineering processes locally.

One thing that amazed me was when I witnessed many companies who have collaborated with each other are actually competitors to each other. This marks the beginning of creating a successful industrial automation consortium.

Hope I can keep you guys updated when I have more information...

[Nicholas Coleman]

Well, it seems that this topic (pls click to this link: http://forums.ia-com...hp?showtopic=11) was posted more than a year ago, and yes, my votes were right, Penang has the largest number of Systems' Integrators.

I have been to Penang many many times within the past 3 months, and made a study over the potential of automation industries up north, I can more or less conclude that Penang is not only the largest number of systems' integrators and machine builders in Malaysia, its the largest in the Asean region.

Most precision engineering companies have moved into providing automation solutions and machine building for the worldwide market, especially for US and the Europe markets. And after interviewing many of these companies, I found that the major issue, or should I say "the major problem", is that they do not capitalise on protecting their IPs. Only a small handful of them (among my findings) focus their concentration on designs and IPs while outsourcing its majority engineering processes locally.

One thing that amazed me was when I witnessed many companies who have collaborated with each other are actually competitors to each other. This marks the beginning of creating a successful industrial automation consortium.

Hope I can keep you guys updated when I have more information...

Well guys, IPs in the States are the most essential part of creating a product or a technical application. So this must be a lucrative business for those who does IPs and Patent consultancy services in Penang.

Can you name me some companies who are facing "the major problem" in protecting their IPs?

[Benny Yeo]

Well guys, IPs in the States are the most essential part of creating a product or a technical application. So this must be a lucrative business for those who does IPs and Patent consultancy services in Penang.

Can you name me some companies who are facing "the major problem" in protecting their IPs?

Hi Mr Coleman,

You're right, its gonna be a wonderful business for IP and Patent Consultants in Penang, but oops I'm sorry, unfortunately, I can't disclose their names to you.

But you may just take a stroll down to Penang industrial estates, especially in Bayan Lepas, most of the machine builders are there. There you can discover most of them are so technically good in systems' integration, contract manufacturing, OEMs, ODMs, etc., etc., but you'll get to see that majority of them did not get their "design IPs" protected...

[Somchai]

Really??? Pinang is leading for automation in ASEAN??? But i think Thailand is stronger naaa Metal work industry is now do well naaa.

But recently, our currency is so strong, and our exporters are all making BIG BIG noise, but I think good for importer naaa.

[Johnson Lukose]

Penang has the quantity but do they have the quality??

Many "SIs" in Penang are one man shows, tyring to eke out a living. For sure there are giants (Pentamaster, LKT, DMC, SRM, etc.) who are 'fed' by the multi-nationals (HP, Intel, Osram, etc.) but the exception.

These "SIs" while trying to sell technology do not employ technology in their workplace. Well, if there is technology it is limited to pirated copies of MS Office and AutoCAD. So they are stuck in their corner trying to pay the coming month's overheads doing 'jobs' for their 'competitors'.

The "SIs" are limited to selling electrical / electronic (PLC, Servo, etc.) skills. They completely lack mechanical engineering skills. In fact, Malaysia as a whole lack good mechanical engineers! There is no synergy between the machine design and automation system. So the automation system frequently ends-up as a tack-on to the machine.

So quality lacks. By quantity this little island has as many SIs as flies.

thanks.

[Stanley Chen]

Penang has the quantity but do they have the quality??

Many "SIs" in Penang are one man shows, tyring to eke out a living. For sure there are giants (Pentamaster, LKT, DMC, SRM, etc.) who are 'fed' by the multi-nationals (HP, Intel, Osram, etc.) but the exception.

These "SIs" while trying to sell technology do not employ technology in their workplace. Well, if there is technology it is limited to pirated copies of MS Office and AutoCAD. So they are stuck in their corner trying to pay the coming month's overheads doing 'jobs' for their 'competitors'.

The "SIs" are limited to selling electrical / electronic (PLC, Servo, etc.) skills. They completely lack mechanical engineering skills. In fact, Malaysia as a whole lack good mechanical engineers! There is no synergy between the machine design and automation system. So the automation system frequently ends-up as a tack-on to the machine.

So quality lacks. By quantity this little island has as many SIs as flies.

thanks.

Is it true? I have not been to Penang for some time, but I believed that you have missed out a lot of giants other than the few that you mentioned.

If it is true that there are many SI who lack quality, then I think it is a better place to invest, because it will be the right time to create partnership with the "quantity" of those who lack quality, to nurture them and to uplift their standards.

And if you talk about pirated software, I think its not only Penang, its everywhere, in Malaysia, Vietnam, Indonesia, and even in Taiwan and China as well.

I have a few projects with some SI companies there, they are not big and they are approved vendor by some multi-national companies (which I cannot mention), but I do not agree with you that they lack quality. Even though to your viewpoint that they lack quality, I think you lack "patience" in dealing with them.

Dealing with companies in Asia, you need patience and good relationship, my friend, especially in Taiwan and China as well , and look at the bright side, you should be working with them patiently to change their mindset, then you will become WINNER.

It is just my personal advice

[Andrew Chan]

Well guys, IPs in the States are the most essential part of creating a product or a technical application. So this must be a lucrative business for those who does IPs and Patent consultancy services in Penang.

Can you name me some companies who are facing "the major problem" in protecting their IPs?

Hi Nicholas:

We are putting together the largest Automation Expo in Penang this March and I think it might be the place for you to be as you will have the opportunity to meet up with majority of the SIs in Penang, as well as other local SMEs that might be able to benefit from your services.

[Andrew Chan]

For those looking to explore this huge market in Penang, do visit the Automation Expo - the region's largest automation tradeshow organized at the Penang International Sports Arena (PISA) from March 22-24, 2007. For more details, visit http://www.automationexpo.com.my