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PETALING JAYA (Aug 14): US medical-technology company Intuitive (listed on Nasdaq: ISRG) expects spending linked to its planned Penang manufacturing operation to approach US$500 million (about RM2.04 billion) over its first five years of operations, as the robotic-assisted surgery pioneer expands its manufacturing footprint in Asia.
The company has entered into a lease agreement with Penang Development Corp (PDC) for a 316,000 sq ft manufacturing facility at Bandar Cassia Technology Park (BCTP), according to a joint announcement on Friday (Aug 14) by Intuitive and InvestPenang. The facility is expected to begin operations in 2028 and create 1,200 highly skilled jobs by 2032.
The facility will manufacture surgical instruments and electromechanical devices used with Intuitive’s da Vinci surgical system, expanding the group’s global manufacturing footprint to support demand across Asia Pacific.
The investment estimate was disclosed separately at the announcement event. Intuitive executive vice-president and chief manufacturing and supply chain officer Mark Brosius said the initial land-and-building cost for phase one would be about US$200 million, while total spending, including operations, should approach US$500 million over the facility’s first five years of operations.
Intuitive’s second Asian manufacturing location
The Penang facility is expected to become Intuitive’s second manufacturing location in Asia after Shanghai and its first in Southeast Asia, Brosius said, as reported by Bernama.
For Intuitive, the facility forms part of a broader expansion of its manufacturing network as its Asia Pacific business grows.
Brosius said the Penang facility would become an integral part of the company’s global manufacturing operations, reflecting its longer-term commitment to the region. Intuitive expects Asia Pacific eventually to become its largest market.
Intuitive said surgeons using its da Vinci systems have treated more than 2.5 million patients across 13 Asia Pacific markets since the company entered the region more than two decades ago.
Brosius said Intuitive expects annual procedures in Asia to exceed one million by 2028, when the Penang facility is expected to begin operations.
Building on medical technology manufacturing base
The investment adds to Penang’s efforts to broaden its manufacturing base beyond electrical and electronics into higher-value industries such as medical technology.
Penang Chief Minister Chow Kon Yeow said Intuitive’s decision reflected confidence in the state’s industrial ecosystem, skilled workforce and manufacturing capabilities, while strengthening its growing medtech cluster.
According to figures cited by Chow at the announcement event, Penang secured RM2.3 billion in approved manufacturing investments in the scientific and measuring equipment sector, including medtech, between 2021 and the first quarter of 2026. The investments involved 40 projects and generated nearly 4,500 employment opportunities.
Chow also said six of the world’s top 30 medtech companies by global sales have established manufacturing operations in Penang.
Deputy Investment, Trade and Industry Minister Sim Tze Tzin said Intuitive’s presence could strengthen the local technology ecosystem through high-value employment and greater participation by Malaysian small and medium enterprises in multinational supply chains.
Sim said Intuitive’s decision to invest in Malaysia followed eight years of efforts to bring the investment to fruition. He also called on multinational companies to complement government facilitation and incentives with better-paying jobs and greater opportunities for local vendors.
From lease to operations
The completed transaction is Intuitive’s lease agreement with PDC. The manufacturing facility, investment expenditure, expected 2028 operating date and projected 1,200 jobs by 2032 are forward-looking elements of the expansion.
Intuitive describes the Penang development as a 40-acre Asia-Pacific manufacturing hub.
Within the site, the planned 316,000 sq ft facility will manufacture surgical instruments and electromechanical devices used with the da Vinci surgical system.
Once operational, the facility is expected to extend Intuitive’s manufacturing network into Southeast Asia while adding another advanced-manufacturing investment to Penang’s established medtech ecosystem.
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