Honeywell Gets A Tailwind Over M'sia's Rapid Urbanisation

By S. Joan Santani KUALA LUMPUR, Dec 19 (Bernama) -- Honeywell's move to expand its business and investment in infrastructure, construction and energy sectors in Malaysia is a resounding endorsement of the country as a preferred investment destination, offering immense growth potential for multinationals. The US-based conglomerate, a Fortune 100 diversified technology and manufacturing leader, has nearly 30 years of presence in the country. Honeywell Southeast Asia president Jim Bujold said Malaysia is a very significant high-growth market in Southeast Asia with a lot of potential for growth. He said Honeywell had yet to fully explore business opportunities, resulting from rapid urbanisation and swelling middle income group, in infrastructure, construction, and energy and energy-efficiency sectors. "Each of these developments present huge opportunities for the company, especially in energy generation or energy-efficiency sectors as more than half of Honeywell's products and solutions are energy based," he told Bernama. On an encouraging note, Bujold said he expected the growth rate in these markets to be well above Malaysia's gross domestic product (GDP) over the next five years. "Our growth in this country has exceeded its GDP growth rate. So, if we were to continue this momentum, expansion will come along naturally in the plan. "That said, we are in the process of investing in more sales and marketing resources to help us seize the opportunities here," he said. Since establishing its business in Malaysia in 1985, Honeywell has invested about US$86.31 million (RM300 million) in the country. On possible mergers and acquisition (M&A) in Malaysia, Bujold said Honeywell chairman and chief executive officer Dave Cote had announced in March that the company planned to double its spending on M&A to US$10 million over the next five years. "We plan on anything that's a bolt-on (to add on to something without any major changes) to what we already do. But we don't mind looking at newer areas – places that we are just starting to get into," he said. Honeywell has been in Malaysia since 1985 and employs 1,450 employees in Kuala Lumpur, Petaling Jaya, Shah Alam, Penang, Kemaman and Johor Baharu. Its building technologies, security and safety products are widely used in landmark buildings such as KLCC Towers, University Teknologi Petronas and Citibank. Its refining and process control technologies have helped the region’s oil and gas companies, including Petronas, to improve efficiency, safety and productivity. Honeywell shares are traded on New York, London and Chicago stock exchanges. -- BERNAMA