SK Group strengthens commitment to Malaysia after investing US700m in 2021

SK Group, a manufacturing and service conglomerate company based in South Korea, has intentions of increasing its investment in Malaysia after committing over US$700 million in 2021. The group's first investment in Malaysia started last year when SK Nexilis announced a capital expenditure of RM3.2 million to set up a copper foil manufacturing facility with an annual production capacity of 50,000 tons in Sabah. It is said that the facility’s construction began in the first half of 2021 and commercial operations are to kickstart by 2023.

"By entering Malaysia, SK Nexilis will secure cost competitiveness and reinforce our ESG management such as implementing RE100, while accelerating global expansion with additional investments. This will solidify our position as the global No. 1 copper foil manufacturer," said an official from SK Nexilis.  Furthermore, SK Group's subsidiary, SoCar Malaysia has raised more than US$55 million from Eastbridge Partners and Sime Darby to fuel its expansion and build an EV platform in Malaysia. The car-sharing startup first penetrated the Malaysian market in 2018. According to a report at that time, the company saw Malaysia as a country with high growth potential for the new industry as it was densely populated in the city centers. 

In addition, the Group made a strategic investment of up to US$100m into BigPay, a fintech company based in Malaysia, in August 2021. According to SK Group, the investment into BigPay was a testament to the ability of Malaysian fintech companies to grow not just domestically, but also regionally and become a major player in Southeast Asia. In the spirit of hyper collaboration, SK Group will also be joining the BigPay consortium to apply for the upcoming digital banking license in Malaysia. The Group said that this move comes after it has witnessed the growing opportunity in digital banking as a way to change the way large portions of the population access financial services. "We are looking forward o more investment opportunities in Malaysia. In particular, SK Group is keen to explore with like-minded partners in the growing sectors of EV, digitalisation, and environment," added the Group. 

A+M has reached out to SK Group for additional information regarding the investment. 

Jung Kyu Kim, SK Group’s chief representative for Malaysia, said, “We are confident that SK’s experience in financial tech services will contribute to the successful digital bank ecosystem in Malaysia and further growth into the ASEAN region.”

Photo courtesy: 123RF

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