YBS International Berhad: Global Expansion

YBS International Berhad (YBS), established in 1994 and headquartered in Penang, Malaysia—referred to as “the land of cultural diversity and economic vibrancy,” showcases its prominence as a manufacturing leader. This strategic locale highlights its extensive array of manufacturing capabilities, which include tool and mould making, metal and plastic fabrication, and assembly processes for printed circuit boards, batteries, and box builds. Since its public listing in 2003, YBS has continuously adapted to the dynamic manufacturing sector, pursuing opportunities for growth and innovation.

Currently, YBS boasts a global footprint with six manufacturing sites in vital markets of Vietnam and India, supported by a sales office in the United States. The expansion into Vietnam was a strategic decision in response to the shifting operations of major multinational clients to the region. Establishing a manufacturing presence in Ho Chi Minh City not only sustained its client relationships but also positioned YBS at the heart of a rapidly growing economic hub, enhancing its global influence and operational reach.

The journey in Vietnam has been marked by noteworthy achievements and invaluable learning experiences. The dedication of over 800 staff members have been instrumental in navigating challenges and driving success. Their adeptness at learning and commitment have helped overcome the initial set-up challenges. Recognising that many local staff members came from non-manufacturing backgrounds, the company invested in upskilling its workforce and successfully transformed farmers into skilled manufacturing professionals, an endeavour that presented both challenges and triumphs.

In the face of economic fluctuations and higher operational costs compared to Malaysia, YBS remains resolute in its expansion strategy, driven by client migration and the pursuit of excellence.

Expansion of Business Opportunities: YBS’s strategic expansion overseas has not only eliminated competitors but also created new avenues for business growth, thereby reinforcing its market position and contributing to Malaysia’s economic prosperity. The Vietnam facility has been instrumental by redirecting high-end product inquiries to Malaysia when Vietnam production was unfeasible, further enhancing business prospects and demonstrating YBS’s adaptability.

Profit Repatriation and Local Investment: The profits generated by the overseas factory have been consistently reinvested to upgrade and develop the Malaysian factory. This strategic reinvestment underscores YBS’s commitment to Malaysia’s industrial development and serves to boost the local economy.

Enhanced Resilience: By diversifying its operations between Malaysia and overseas, YBS has effectively mitigated business fluctuations, ensuring stability and continuity. This balanced approach enables YBS to navigate downturns in either market, benefiting Malaysia’s economic resilience.

Increased Foreign Investment (FI): YBS’s success on the international stage serves as a beacon for attracting more FI into Malaysia. As the company’s international reputation continues to soar, it paves the way for greater job creation, technology transfer, and economic diversification for Malaysia.

Strategic Business Diversification: YBS has adeptly diverted low-end, labour-intensive, and outdated technology operations to Vietnam while focusing on high-value, technologically advanced production in Malaysia. This division of labour underscores YBS’s commitment to innovation and efficiency, enhancing its competitive edge in the global arena and contributing to Malaysia’s economic progress.

Government agencies such as MIDA and MATRADE were instrumental in YBS International Berhad’s international expansion.

Through the Domestic Investment Collaboration Platform (DICP), MIDA significantly aided YBS International Berhad in securing funding to collaborate with Enovix Corporation. MIDA provided crucial support, including facilitating connections with local financial institutions, resulting in substantial funding for establishing a high-volume silicon battery manufacturing facility in the Penang Science Park. Additionally, MIDA’s assistance in navigating the regulatory landscape and fostering local economic benefits was pivotal. This collaboration aims to boost Malaysia’s technological capabilities and local economy by creating job opportunities and fostering skills development.

In conclusion, YBS International Berhad’s strategic expansion overseas, despite its higher operational costs and unique challenges, underscores its adaptability and commitment to global growth. The success overseas is a testament to the company’s ability to navigate new environments, foster dedicated teams, and maintain strong partnerships. As the company continues to evolve, its experiences offer valuable insights for other enterprises aspiring to go global: conduct extensive research, understand the local nuances, and be prepared with multiple contingency plans. Embracing self-reliance and problem-solving capabilities will be crucial in thriving in international markets. The journey reflects the resilience and dedication necessary to succeed on a global scale.