China’s Trensor Eyes Relaunch as Malaysian Plant Nears Completion

(Source) June 30 — Trensor, a manufacturer specializing in pressure sensors for automotive and industrial applications, is nearing completion of its first overseas factory in Malaysia. The local branch’s general manager believes this milestone can serve as a catalyst for the company’s “second growth phase.”

“My hope is that Trensor can achieve a significant boost in financial performance through its operations in Malaysia, aligning with the country’s future economic growth,” Zhou Wenbo shared in an interview, referencing a book titled ‘Second Takeoff: Strategies for Malaysia’s Economic Resurgence,’ authored by Malaysia’s Deputy Finance Minister Liew Chin Tong.

Published in 2024, ‘Second Takeoff’ highlights Malaysia’s unique position at a historic crossroads, where a global reshuffling of supply chains is attracting new foreign investments. This shift could potentially mark Malaysia’s second economic leap, following its first between 1988 and 1997.

Trensor’s Malaysian facility is situated in the Penang Technology Park @Bertam, across the strait from Penang Island. Nearby, a USD 300 million integrated circuit packaging and testing project by Chinese firm Forehope Electronic underscores an increasing influx of Chinese companies establishing operations in Penang.

Founded in 2009, Trensor operates three plants in Wuxi. With more than half of its sales generated overseas, establishing a factory abroad was a strategic move. Construction of the Malaysian plant started in May last year, with an investment close to MYR 100 million (approximately USD 24.6 million). Once fully operational, it is expected to produce 10 million pressure sensors annually.

The initial impetus for expanding abroad was customer demand, as global manufacturers seek to diversify their supply chains, Zhou explained. Customers have responded favorably, with some increasing their orders and others urging faster deployment.

While low-cost manufacturing hubs like Vietnam and Cambodia weren’t considered a good fit for Trensor’s high-value products, the company prioritized locations that Western clients would trust—those offering robust infrastructure, stable policies, skilled labor pools, and minimal language barriers.

Zhou visited Penang in November 2023, describing his first impression: “Walking into Penang International Airport, the interior resembled public buildings in Britain.” He also noted the century-old Chinese communities there and the longstanding presence of Western semiconductor giants, which made Penang feel immediately suitable.

Malaysia accounts for roughly 13 percent of the global chip packaging, assembly, and testing market, according to the Malaysian Investment Development Authority. Since Intel established operations in Penang in 1972, over 350 multinational corporations have set up there.

The large Chinese community—nearly half of Penang’s population—and the widespread English language influence from its colonial past have helped distinguish Penang as an attractive regional investment hub.

Building from Scratch

After selecting Penang, Trensor decided to purchase land and construct a new facility rather than lease existing buildings. The chosen location was the Penang Technology Park @Bertam, an area also home to other Chinese-invested companies like PROPAC International, INV New Material Technology, and SuperSiC.

The project was overseen by M.E.I Engineers, a local firm with nearly 40 years of experience in Penang. Zhou praised their professionalism and patience, noting that they never made promises they couldn’t keep after working together for over two years.

During construction, challenges included higher costs for materials and services compared to China, but Zhou assured that standards were maintained. Malaysia’s legal framework, influenced by British common law, is transparent and structured, offering legal protections, although approval processes can be complex and time-consuming.

Obtaining approval involves environmental assessments before construction, and collaboration with agencies like MIDA for manufacturing licenses and tax incentives. Procedures vary across states and local jurisdictions, making patience essential.

“Nothing is perfect in real life,” Zhou said. “Sticking to regulations may be less efficient short-term, but it pays off in the long run.”

Trensor also reserved additional land for future expansion, reflecting lessons learned at its Wuxi headquarters, where new buildings quickly became too small post-construction.

Recruiting Talent

Though the factory isn’t finished, hiring has commenced. Zhou sees a significant difference between Malaysia’s and China’s labor markets: supply and demand dynamics.

In Wuxi, most employees—from assembly line workers to top managers—come from outside Jiangsu, as labor mobility is typical in China. In contrast, Penang’s smaller population and locals’ reluctance to relocate create hiring challenges rooted in labor scarcity and immobility.

Penang observes about 19 public holidays annually, but laws require only 11. Many foreign companies offer 15 days, with some Western firms granting up to 18. Zhou noted that offering fewer holidays makes it tough to attract white-collar staff.

He advocates a merit-based approach to promotions, regardless of nationality or ethnicity. When asked if a Malaysian could someday be the plant’s general manager, he responded, “There’s no reason to rule that out.”

Manufacturing high-precision sensors requires strict process control, with key roles initially trained in Wuxi. The plant features highly automated production lines.

This is Trensor’s first facility built entirely from the ground up outside China. Zhou mentioned that the company’s involvement exceeded local standards— even the chairman was deeply engaged in the design process from start to finish.

While the future remains unpredictable, Zhou emphasized the importance of adapting to local conditions and not assuming that China’s experience can be directly replicated in Malaysia.