MPI’s journey began in 1972, and as our company has grown, so has our belief in its role and vision for impact in the world. Today, we’re proud of our long history of enabling technologies to help create a brighter future.
The world around us continues to go through substantial shifts. After the pandemic, which led to shocks in the supply chain, there has been a slowdown in the economies, especially in developed markets. Moreover, the military conflicts have intensified this year and continue to disrupt the global supply chains.
The global macroeconomic situation is in challenging waters with recessionary fears, persistently high inflation, policy uncertainty including restrictions and threats amidst geopolitical tensions, and unprecedented monetary tightening. In addition, talent shortage and increasing price pressures due to weak demand remain a challenge to our Malaysia and China operations.
In response, we have implemented rigorous cost-saving measures, enhancement of operational efficiencies, and enhanced research and development programs to face these challenges. This reflected in the strong finish we had to FY24, with revenue for the year at RM 2.1 billion, a growth of 2% over FY23. More importantly, we exited the year with a robust year on year growth in profit before tax of 104% (from RM 124 million in FY23 to RM 254 million in FY24). This performance was achieved with a fundamentally strong balance sheet. Demand for our services indicated remarkable resilience as macroeconomic uncertainties and geopolitical volatilities continued in key markets throughout the year.
As I write this letter, we continue to navigate a difficult global landscape, a climate crisis and more.
MPI stands at a crucial juncture in a world where multiple megatrends are shaping business priorities across industries, globally. These include AI, renewable energy, automated driving, and IoT. In particular, the advent of GenAI has been catching everybody’s attention with its promises of a huge productivity leap and of accelerating the development of new products & services. GenAI is already touted to be transformational across industries, even in these early days of adoption.
These trends are pushing the envelope for packaging, assembly & testing innovation. MPI offers the necessary depth and breadth of assembly & testing technologies, manufacturing excellence, and scale that our customers need to capitalize on these opportunities and advance the next-generation technological innovations. MPI is well-positioned to benefit from the diverse technology solution offerings to the high-power management, next generation connectivity and intelligent sensing markets.
Importantly, these transitions will require significant technology investment across various industries. MPI is cognizant of these requirements, and is making substantial investments and building capabilities to partner with its customers during this phase of swift technological shifts.
Bottom line…we have a lot of exciting work ahead of us!
I firmly believe that despite the challenges encountered on this journey, MPI is well on its way to be one of the leading global semiconductor companies by realizing its vision of becoming a preferred OSAT for automotive segment with revenue in excess of around US$ 1 billion. Our strategic priorities that will strengthen our position for success are clear. These include:
While we navigate today’s challenges, we continue to prepare for the future. We continue to carefully assess and make our investment decisions pertaining to development of new and upgrade of existing manufacturing capacities in China and Malaysia. These advanced facilities will leverage automation and create great opportunities for us in terms of productivity, quality and speed. This will enable us to ensure supply security for our customers, and set us up nicely for long-term growth.
Exploring solutions to enable our customers’ cutting-edge technologies is a key focus area. These include investing in manufacturing & technology leadership in areas such as SiC, GaN, etc. or process technologies such as panel level packaging. We aim to be even closer to our customers in US/ EU to nimbly deliver to them with quality and at scale. This could potentially include setting up fully automated manufacturing presence, and venturing into module business/ design. We continue to explore organic as well as inorganic routes to fulfil these ambitions.
Our approach to sustainability is integrated into business strategy and concentrates on optimal emissions & energy management, reduction in resource usage and waste, and efficient water consumption & recycling. We are doing this by increasing use of more energy efficient production machinery and processes, use of more efficient modes of transport (~50% of the fleet of staff buses has been electrified at our China facility), and recycling of waste and water.
MPI consciously embeds the highest governance standards in its operations that encourage a strong commitment to global Environment, Social and Governance (ESG) disclosure standards for promoting transparency and accountability. We remain committed to sustainable business growth and have been recognised for our efforts with the awards in the Technology sector for last 3 successive years at The Edge Malaysia ESG Awards, in collaboration with Bursa Malaysia Bhd and FTSE Russell.
Our employees are the key stakeholders in our growth. Hence, our approach towards talent management is strategic. We constantly strive to build a workplace that encourages all voices to be welcomed and heard. Our resilience through different technology and market environment changes, and ability to continuously embrace new knowledge and stay relevant defines us and provides us a vital competitive edge. Our workforce continued to be very diverse with women making up 51% of the employee base, and with multiple ethnicities represented. In FY24, MPI employees logged nearly 85,000 learning hours, and acquired several technical competencies. We continue to strive for a culture of lifelong learning and innovation, by closely linking learning with careers and rewards.
FY24 performance gives us confidence in our business momentum. Thanks to the hard work of our talented and dedicated team, we have established a strong foundation for continued progress.
Looking forward, we see greater opportunities ahead, as businesses become more technology-intensive to drive competitive differentiation and transform their industries. Our robust business model and hunger to succeed will continue to help us benefit from the upcoming new waves of technology changes.
I am excited to lead MPI, and with our extremely talented team and our industry partners around the world, I am looking forward to developing & delivering great products & services for enabling cutting edge technologies. Our brightest days are ahead of us.
We thank you for your continued support in our journey ahead.
Please take care and stay healthy.
Regards,
Manuel Zarauza, Group Managing Director
Malaysian Pacific Industries