KUALA LUMPUR -- VS Industry is working on a pair of new facilities with a combined 300,000 sq. ft. of production floor space to meet anticipated new orders.

The company had sales for its most recent fiscal quarter ended Oct. 31 of MYR 1.07 billion ($262 million).

While the EMS firm announced last week that it anticipates an order slowdown by a key customer in the second half of the current financial year, it added that the dip will be short-lived.

"Fluctuations in orders can and do happen in our industry, and in fact, it is part and parcel of our business. These fluctuations can occur for various reasons, such as a function of market demand, product lifecycle or change in market strategy, etc.," Datuk S.Y. Gan, managing director, VSI. "We view this (order slowdown) as a short-term pain. With our solid track record of successful on-time delivery of quality products to our customers’ satisfaction, we are confident we will overcome the challenge through securing new orders from existing as well as potential customers.

"To recap, during (the April 2018 quarter), we also experienced a drop in orders from a key customer that affected our financial performance in that quarter, but fast forward to today, production volume has since recovered.”

Gan added that the ongoing US-China trade war has brought "a lot" of opportunities as MNCs from the US are looking to shift or diversify their manufacturing base to Southeast Asia.

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