PERAK, MALAYSIA – Scope Industries said it will divest its oil palm plantation to focus solely on its electronics manufacturing services business, according to reports.

Scope plans to sell its 4,300 acres in Sabah, Malaysia, which had a net carrying amount of RM60.4 million (US$14.6 million) at the end of June 2020.

Scope is adding production capacity, building a fourth plant here, to add 154,000 sq. ft., for a total of 299,000 sq. ft – a total investment of some RM16 million. The plant is expected to be operational in July 2022.

Scope has recently expanded into completed electrical and electronics product assembly for customers in the US, South Korea and India. Products include smart speakers, air purifiers and payment terminals at gas stations. The company plans to add temperature controllers to its product list.

Inventec Appliances has brought in most of the company’s major customers.

“The electronic segment is very wide, and it will continue to grow,” said executive chairman Jim Lee Min Huat. “If the retail side of the market keeps going up, then the supply of our consumer products will continue.”

In the fiscal fourth quarter of 2021, Scope’s manufacturing business had revenue of RM10.4 million, an increase of 276.3% year-over-year. Profit after tax was RM1.3 million, compared to a loss after tax of RM822,000 in the fiscal fourth quarter of 2020. Year-to-date revenue was RM41.6 million as of June 30, up 214% year-over-year. Profit after tax was RM5.6 million, compared to loss after tax of RM5.2 million for the fiscal year 2020.

Ed.: RM1 = US$0.24

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