Chinese Smart Manufacturing Expands in Southeast Asia
Chinese firms are enhancing their manufacturing presence in Southeast Asia, particularly Malaysia, utilizing automation technologies. This shift is significant for the region's industrial advancement and economic integration.

Chinese companies, such as KFM Kingdom Holdings, are establishing advanced manufacturing facilities in Southeast Asia, particularly in Malaysia, where they implement automation based on successful domestic models. KFM's Penang plant, operational since 2022, employs around 260 workers and has achieved a monthly turnover of HK$20 million, with a projected growth rate of 13% annually.
The company aims to increase its factory sites to meet rising demand, reflecting a broader trend of Chinese smart manufacturing expanding internationally. Concurrent initiatives by Hongrita Group also exemplify this trend, as they leverage digital management systems to enhance productivity by over 30%.
The HKPC has supported over 1,500 smart manufacturing projects in the Greater Bay Area, assisting firms in their overseas expansions. This growth correlates with a significant increase in Chinese industrial robot exports, particularly to Vietnam, India, and Thailand, underscoring China's position as the largest industrial robot manufacturer. The future may see more localized R&D centers established in Southeast Asia.




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