KLANG (July 30): The government's move to limit the employment of foreign workers will not affect Mah Sing Plastics Industries Sdn Bhd's (MSPI) operations, as the processes are already mostly automated, said Mah Sing Group Bhd founder and group managing director Tan Sri Leong Hoy Kum.

During a media tour of MSPI's facility in Klang today, Leong said the number of workers employed at the facility has been maintained at between 400 and 450 throughout the years, despite the significant growth of the plastic business, which makes up about 18% of Mah Sing Group's earnings.

"We are not affected by the limit on foreign workers. We believe automation is the way forward and our facility here is mostly automated already. We only employ a minimal amount of physical labour," he said.

Even Mah Sing's property business, Leong said, is shifting towards using less foreign labour by employing technologies such as the industrialised building system.

According to MSPI chairman Hong Hock Seng, the facility is working towards full automation of its processes, which will see the usage of unmanned automated guided vehicles for the movements of their products around the facility.

As it is, the plastic facility is mostly run by machines, with workers only involved in certain functions such as taking measurements and ensuring the plastic products are up to the required specifications.

For the latest space in the Klang facility, Hong said there are two machines for every worker on the floor, a testament to the extensive use of robotics by MSPI in its manufacturing.

MSPI, which has been operating since 1979, is involved in manufacturing and supplying industrial-grade plastic products such as plastic pallets for businesses. More recently, the company has been moving into consumer products such as chairs and containers which are sold directly to consumers via online platforms.

The group is also looking to expand into the healthcare segment, according to Leong.

"At the moment, we are still in the preliminary stages of planning. However, we are excited to pursue new growth areas in healthcare. We are keen to pursue opportunities in the production of healthcare products," he said.

Asked if MSPI will be involved in the manufacturing of personal protective equipment, given the Covid-19 pandemic, Leong only said to wait for Mah Sing's announcement soon, although he did not give a timeline on when this announcement will be made.

MSPI is also looking to expand its Klang facility as well as set up logistic hubs in the southern and northern regions.

It is also going into the leasing business of plastic pallet rental, which will provide recurrent income.

The plastic business has continued to be a positive contributor to Mah Sing Group's revenue. For the financial year ended Dec 31, 2019, MSPI contributed RM327.1 million or 18.3% to the group's revenue. 

At the midday break, Mah Sing rose 1.49% or one sen to 68 sen, with 10.2 million shares traded.