3M Malaysia banks on domestic consumption
Company eyes growth in consumer, healthcare and infrastructure
3M Malaysia Sdn Bhd is banking on Malaysia’s future growth in consumerism and domestic demand as the company aims to accelerate its growth in the consumer, healthcare and infrastructure segments going forward.
As a company principally centred on science and innovation, 3M Malaysia plans to capitalise on the three high potential segments and projects to grow by two to three times stronger than the overall market growth over the next five years.
The company has set its sights on introducing more innovation-driven products via 12 expertise categories as it seeks to capture a larger share of consumers’ expenditure.
3M Malaysia is part of the larger, global 3M which is listed on the New York Stock Exchange.
3M Malaysia recently celebrated its golden jubilee. It was established in 1967.
3M, which has worldwide presence, primarily focuses in 12 expertise categories, ranging from automotive, consumer, electronics, transportation, communications and healthcare, among others.
With US$30bil in sales as at the end of 2016, 3M employs more than 90,000 people worldwide and has operations in more than 70 countries.
Speaking to StarBizWeek, 3M Malaysia managing director Parameswaran Nair is clearly jubilant as he recounts how 3M Malaysia has grown over the past 50 years, from only eight employees in 1967 to nearly 300 employees now.
He says the company is steadfast to spurring innovation and creating talents, while remaining focused on profitability and improving its business operations.
“Using science as a core platform, 3M aims to grow along with the economy and the local community. Going forward, we want to grow further in the consumer segment as this is where the real growth potential is, in line with the strong growth of domestic demand.
“We plan to capitalise on our innovative 46 technology platforms to introduce more products for our clients to suit their preferences and needs,” says the 3M veteran.
Parameswaran, who was appointed to the position of managing director for 3M’s Malaysian operations last year, is the first Malaysian to lead the company.
3M’s products for both consumer and industry segments are driven by its 46 core technology platforms, which basically refer to science-based technological innovations which range from adhesives and abrasives, to ceramics and nanotechnology.
Parameswaran adds that 3M’s technology platforms are unique as a single platform can be utilised in any of the company’s 12 expertise categories.
“Our products are tailored towards the segments where the money is and we emphasise our resources on areas where the return on investment is the largest.
“Our diversity in product offerings is our key strength compared to other industry competitors, as such diversity can reduce risks both financially and operationally by minimising the impacts from sectoral downturn,” he says.
As science and innovation are key to 3M Malaysia’s business sustainability, the company expends about 5% to 6% of its overall revenue per annum for research and development (R&D) purposes. This is line with what its parent company invests for R&D annually.
3M Southeast-Asia region vice president Dr Joe Liu remains optimistic of 3M Malaysia’s performance moving forward, underpinned by the company’s internal technical expertise and Malaysia’s strong economic growth.
“Malaysia remains an important market among our global operations. We are proud to say that Malaysia is one of 3M’s earliest global subsidiaries and is also one of our best performing operations as well.
“3M Malaysia has been doing very well in the export driven and original equipment manufacturer (OEM) markets such as electronics and automotive and we will continue to grow and protect our share in these markets,” says Liu.
He adds that 3M operations in South-East Asia is expected to double total sales to US$2bil over the next five years, from US$1bil in 2016.
“The future is going to be more interesting, with increased demand due to mega trends such as water potability, energy efficiency and food safety.
“These are where our primary focus will be, moving forward,” he says.