Foreign Companies: Malaysia's Free Trade Zone Shows Advantages; Optimizing Management Can Attract Foreign Investment

(Kuala Lumpur, 22nd) Malaysia's free trade zones offer cost and geographic advantages. If customs clearance and management efficiencies are further optimized, its potential to attract foreign investment and drive economic growth will be enhanced.
Chen Suxin, Asia-Pacific Tools Management Director for GE Vernova Gas Power Field Services, said that the company's largest tool center in Asia is located in the Port Klang Free Trade Zone, supporting up to 70% of its tool demand in Asia.
She believes that there are several advantages to setting up a tool center in Malaysia, including cost-effectiveness (operating costs are lower than in Singapore); tax benefits in the free trade zone; and a strategic geographic location favorable for the movement and flow of tools and equipment.
In an interview with Bernama, she said that in addition to the Ministry of Investment, Trade and Industry, other institutions and groups such as the Malaysian International Chamber of Commerce and Industry (MICCI) have been actively assisting foreign companies with the application for ATA Carnet customs documents, helping to optimize trade processes, which is commendable.
Nevertheless, she admitted that there is still room for improvement in the operational efficiency of Port Klang’s free trade zone, especially as customs clearance processes and administrative systems remain cumbersome and face many obstacles.
“Although the Port Klang Free Trade Zone offers tax advantages, customs do not operate 24 hours. Previously, a batch of our tools was delayed in customs clearance and stuck in the free trade zone for 36 hours, resulting in failure to deliver on time to a power plant. In addition, visitors still need to scan on site and fill out paper forms to enter the free trade zone, rather than applying online, which reduces efficiency.”
She further compared that Singapore’s Jurong Island Free Trade Zone has highly efficient customs clearance. The whole process from application to clearance is digitized, with no manual intervention; customs also operate 24/7. This seamless management greatly reduces logistics bottlenecks.
She currently manages seven tool centers in Asia, located in Thailand, China, India, Malaysia, Singapore, and two in Australia. She believes the most business-friendly country for foreign businesses is Singapore, followed by Malaysia, while Thailand and India's tax structures are more complex and bureaucratic.
She hopes the Malaysian government can follow Singapore's lead to strengthen free trade zone management systems and efficiency, which would attract more foreign firms to set up or expand in Malaysia.
GE Vernova is a global leading energy technology company headquartered in Cambridge, Massachusetts, USA. In 2024, it was spun off from General Electric (GE), focusing on driving the energy transition, covering power generation (gas, nuclear, hydro, steam), wind energy, and electrification, spanning approximately 100 countries.

In the high-risk energy sector, strict safety measures are a necessary safeguard against accidents. Efficient teamwork and lean management can further reduce errors and improve operational safety and efficiency.

Chen Suxin pointed out that the energy industry has very high safety requirements. In tool management, non-compliant tools must be immediately repaired or replaced. Major tools such as lifting gear and slings must be calibrated annually and regularly inspected to ensure safe use.

She said her company operates following the SQDC sequence—Safety first, followed by Quality, Delivery, and Cost. As long as the first three are strictly controlled, cost reduction will naturally follow.
She mentioned that the company currently adopts lean management (LEAN), which focuses on optimizing resource allocation and reducing waste, enabling the SQDC model to be more systematic. Through continuous improvement and standardized processes, safety and quality management can be effectively enhanced, and defects and risks reduced.
“Many people mistakenly think that LEAN management is about layoffs and cutting expenses. In fact, its purpose is to reduce inefficiency and reactive 'firefighting' work, allowing employees to focus on effective planning and execution. This mechanism helps us solve problems at the source rather than relying on after-the-fact remedies.”
She admitted that previously she worked 10 to 12 hours a day, mostly busy as a 'firefighter' resolving various issues, such as tools not arriving at power plants on time and causing maintenance delays.
She said that after introducing lean management and implementing 'Daily Management', the team reports work progress daily, enabling timely detection and resolution of potential issues, greatly reducing emergencies. They also introduced 'Leader Standard Work' to standardize each employee’s job content, improving team productivity, reducing overwork, and shortening working hours.
On managing subordinates of different nationalities, Chen Suxin believes that people management should be people-oriented—respecting team diversity, providing equal opportunities, and ensuring that members can express their views in a safe and transparent environment without fear of punishment.
“Many Asians are more conservative by nature, but having worked in multinational companies for a long time, I'm used to speaking up whenever I have ideas. By leading by example and creating a safe environment for open communication, my Malaysian subordinates now also dare to express and give feedback, making our relationships closer.”
She also agrees with the company's emphasis on a 'one team' culture. Once, a subordinate neglected to arrange tools properly, causing construction delays. Instead of blaming her as the supervisor, other department heads proactively helped solve the problem. This work culture deeply moved her, and she hopes more companies can abandon a 'blame each other' culture and truly achieve teamwork.