TANAKA MEP Refinery Sdn Bhd is investing RM70 million to establish Malaysia’s first 4N high-purity precious metal refining facility in Batu Kawan Industrial Park, strengthening the country’s capabilities in advanced metal processing and semiconductor supply chains.
The joint venture (JV) between Japan’s TANAKA Precious Metal Technologies Co Ltd and Malaysia’s MEP Enviro Technology Sdn Bhd officially broke ground on the facility on Oct 8, with commercial operations targeted for the first quarter of 2029.
Spanning approximately three acres with a built-up area of 45,000 square feet, the factory will produce precious metals with a purity level of 99.99%.
The first phase, involving an investment of RM35 million, will focus on producing high-purity gold and potassium gold cyanide, both essential materials for the electrical and electronics (E&E) and semiconductor industries.
Penang Chief Minister Chow Kon Yeow said the investment would strengthen the state’s established E&E and semiconductor ecosystem while advancing resource recovery and sustainable manufacturing.
He said the refinery would complement Penang’s existing capabilities in semiconductor design, manufacturing, testing and equipment production.
The investment comes as Penang continues to attract high-value manufacturing projects, recording RM17.3 billion in approved manufacturing investments in the first half of 2026, an increase of 38.1% year-on-year.
Nationally, Malaysia secured RM51.3 billion in approved manufacturing investments across 973 projects during the same period, with the potential to create 64,555 jobs.
Malaysian Investment Development Authority Chief Executive Officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the refinery would enhance Malaysia’s high-value precious metal recovery capabilities while strengthening domestic industrial supply chains.
He added that the project supports the development of a circular manufacturing ecosystem by recovering valuable materials and returning them to industrial production.
MEP Enviro Technology director Ong said the JV aims to establish a complete precious metal recycling value chain, covering recovery, high-purity refining and the reintegration of valuable materials into manufacturing.
TANAKA Precious Metal Technologies Chief Operating Officer Tomoyuki Tada said the facility would strengthen Malaysia’s advanced refining capabilities and support the region’s expanding semiconductor and electronics industries.
MIDA will continue facilitating the project’s implementation and identifying opportunities for Malaysian companies to participate in its supply chain.
The investment marks another step in Penang’s push towards higher-value manufacturing, combining Japanese refining technology with Malaysian industrial expertise to support the semiconductor sector and sustainable resource recovery.
