Our history can be traced back to 1989 when the WBL group, through UWT, and MFI decided to form a 60:40 joint venture in Singapore to carry out operations such as electrical testing, singulation and packaging stages of the FPC production processes for MFI, thus establishing MFS Singapore (previously known as Ifracom Pte Ltd). WBL currently holds an effective interest of approximately 66% in MFI through WT and UWT. MFI and its subsidiaries are engaged in a similar business as our Group, namely in the design, manufacture, assembly and distribution of FPCs. WT and UWT intend to dispose of their interests in MFI.
In 1990, MFS Singapore was granted a 5-year pioneer status by the Ministry of Trade and Industry for, inter alia, its manufacturing activities in FPCs. By 1991, MFS Singapore became a full-fledged manufacturer of FPCs, focusing on the disk drive and consumer electronics industry. In 1994, the pioneer status was converted to an investment tax allowance scheme.
In 1994, WBL formed MFS-PCB as a joint venture with HCC to engage in the design and manufacture of single, double and multi-layer rigid PCBs. WBL's interest in MFS-PCB was at that time held through UCL and WT which held 57.3% and 7.7% interest in MFS-PCB respectively. The remaining 35.0% interest in MFS-PCB is held by HCC, which is a PRC company listed on the Shenzhen Stock Exchange, engaged in PCB assembly, design and manufacture of fare meters, card readers and terminals. HCC is, in turn, 35.0% owned by China Greatwall Computer Group Co. which is also listed on the Shenzhen Stock Exchange. The day-to-day operations is managed by our General Manager of MFS-PCB who reports to its board of directors, the majority of whom are representatives from WT and its subsidiaries.
In 1995, MFS Singapore expanded its activities to include assembly services and began to diversify into the telecommunications sector.
In 1996, MFS Singapore expanded its manufacturing facility by acquiring the adjoining premises and investing in additional plant and equipment. During the year, MFS Singapore was awarded the ISO9002 quality assurance certification by PSB for the manufacture of plated-through-hole FPCs.
In 1998, we expanded into Malaysia by acquiring MFM1 from WBL for a consideration of MYR150,000, thus making MFM our wholly-owned subsidiary. We started off as a design and marketing office in Penang to cater to demands of the multi-national corporations (``MNCs'') located there. Over the 3 financial years from FY1998 to FY2000, we invested approximately $7.3 million in MFM to set up a manufacturing plant in Malacca. For FY2001, we invested $1.3 million in our Malaysian production facility and since 30 September 2001 to the Latest Practicable Date, an additional $0.1 million was invested in our Malaysian production facility. MFM was awarded an investment tax allowance by MIDA in 1999. At present, MFM serves as a ``feeder'' plant to MFS Singapore, catering to the production orders of MFS Singapore.
In 1998, we acquired the entire issued share capital of Flex Solutions (previously known as Wearnes Biotech & Medicals Pte Ltd) from WT to manage the design, engineering and marketing of FPCs. The purchase consideration for the acquisition was a nominal sum of $1 as Flex Solutions was then in a loss-making position. The acquisition of Flex Solutions has added to our capabilities in the design, engineering and marketing activities of FPCs.
In 1999, MFS Singapore was awarded the QS9000 quality assurance certification by PSB. Our Directors believe that this is a more stringent quality assurance standard than ISO9002 as the QS9000 certification focuses on preventive measures and techniques in problem solving, and is a quality standard required by leading automobile makers in the automotive industry like General Motors, Ford and DaimlerChrysler. 1 MFM (previously known as Universal Cars Sdn Bhd) was incorporated on 31 January 1958. Its principal activities then were the distribution of cars in Malaysia. The company was dormant from 1984 to 1998.
In 2000, MFM was awarded the ISO9002 quality assurance certification by Anglo Japanese American Registrars for the manufacture and assembly of single-sided, double-sided, multi-layer platedthrough- hole FPCs and rigid flex. In the same year, we acquired the 65% interest in MFS-PCB held by UCL and WT for a purchase consideration of $7.84 million which was satisfied by the issuance of, in aggregate, 700,000 new shares in the capital of MFS Singapore. The remaining 35% of MFS-PCB continued to be held by HCC. Over the 3 financial years from FY1998 to FY2000, we have invested $2.0 million in plant and machinery in MFS-PCB. For FY2001, we invested $4.0 million for our production facilities and since 30 September 2001 to the Latest Practicable Date, an additional $2.2 million was invested in our production facilities.
Over the 3 financial years from FY1998 to FY2000, we have further invested approximately $8.2 million mainly in equipment and production facilities of MFS Singapore such as optical inspection equipment, laser drilling machines and automatic plating lines to increase our production capacity and capability and to enhance the quality of our products. For FY2001, we have further invested approximately $5.8 million to expand our production facilities and since 30 September 2001 to the Latest Practicable Date, an additional $1.2 million was invested in our Singapore production facility.
Since our inception in 1989, we have through organic growth and strategic investments in joint ventures over the last 12 years, built up our capabilities ranging from the design, manufacture and distribution of FPCs and rigid PCBs, to the provision of turnkey component assembly services for FPCs. As part of our provision of design services, we also provide value-added services like application engineering services in respect of FPCs to meet our customers' requirements. Today, with our headquarters in Singapore, 3 manufacturing locations in Singapore, PRC and Malaysia, and a staff strength of approximately 800 employees, we cater to MNCs and local customers in our primary markets of USA, Europe and Asia Pacific.
