WHAT SAY THE EXPERTS | MANUFACTURING
CEO OF NANOPAC (M) SDN BHD
FOUNDER OF NANOPAC INNOVATION LTD
27 August 2025 | Interview | By: Hanna Zukki
We interviewed Dato’ Dr. Cheng Kok Leong, founder of Nanopac (M) Sdn Bhd, who has spent his career bridging nanotechnology and manufacturing to create solutions that make a real impact. He is a technopreneur with more than 25 years of experience in starting up and managing high-end technology companies, and has won numerous national and international medals for his inventions and products such as eCool, eLight, SmartStrip, and iFlash. In 2009, he led Nanopac Malaysia to win the SME 100 Fastest Moving Companies award and the Best Business Partner Award by Hitachi.
From pioneering new materials to guiding his team through innovative projects, he continues to push boundaries while championing sustainability and talent development.
Read on to discover more about Dato’ Dr. Cheng’s journey and vision in the world of nanotechnology and manufacturing.
Dato’ Dr. Cheng: I was educated in Malaysia from primary to secondary school, then pursued my tertiary education in Australia, majoring in IT. I later obtained my professional and chartered engineer qualification from the UK while working. In the 1990s, IT was booming in Malaysia and the chartered engineer title was highly valued, often leading to higher pay.
I began my career as a system engineer for Tokyo Electric Corporation, later becoming IT Manager for a listed company. Eventually, I started my own ventures, which led to founding Nanopac.
Dato’ Dr. Cheng: Yes, my initial passion was in IT—I even pursued my Master’s and Doctorate in the field. But by the 2000s, IT in Malaysia wasn’t progressing much. And the way I look at it is that I can only be a system engineer or even become a consultant. I saw more potential in disruptive technologies, so I moved into nanotechnology, foreseeing its impact as the next big thing.
Dato’ Dr. Cheng: During the years of inception with Nanopac, some of the manufacturing problems that we faced are mainly on the rising material costs. As we can see from the day we started until now, there has been a tremendous increase in material costs, especially during the lockdown. Getting raw materials was very tough, particularly due to shipping challenges. Some of our raw materials had to be imported from Korea, which caused a lot of problems. Even local raw materials in Malaysia faced the same issue; suppliers could not deliver. In the manufacturing sector, the rising cost of raw materials will be a major problem, as it directly cuts into our profit.
Another major challenge was employee productivity. During the lockdown, there was no viable way to improve productivity due to travel restrictions and operational limitations. Once COVID restrictions were lifted, we faced a different problem; high staff turnover. Many factories competed aggressively to recruit skilled workers, especially with the shortage of foreign labor after many had returned to their home countries. This labor shortage led to a sharp increase in operational costs, as higher wages had to be offered to retain workers. Consequently, the cost of production rose substantially compared to previous years. The combination of limited material supply and labor shortages created significant and lasting challenges for our manufacturing operations.
“The rising cost of raw materials will be a major problem, as it directly cuts into profit. Another big challenge is high staff turnover ; training costs rise, and we have to start all over again.”
To cope, we sought alternative sourcing, optimized production, and adapted to the changing labor market.
Dato’ Dr. Cheng: Fortunately for Nanopac, we did not have many employees to lay off. During COVID, we were able to continue operating because we had a special permit to do so. We were also part of one of the MOSTI minister’s think tanks, tasked with developing new inventions to help cope with the COVID outbreak. As a result, our operations continued throughout that period, and we did not experience any major setbacks; except for other companies trying to poach our staff.
Dato’ Dr. Cheng: For NanoPac, we were a bit lucky—the only two main issues we faced were, firstly, hiring good people. Finding good staff nowadays is difficult because turnover is very high. They often get poached; once they receive a high salary increment, they move on to the next organization. This is a major problem for us because we need to spend time training them to fit into the organization. Training costs inevitably increase, as we invest heavily in preparing these people, and when they leave, we have to start all over again. This is especially challenging for managerial positions, which are difficult to retain.
The second issue is the high turnover rate itself, which is tremendous on the management side. The only way to address this is by coming up with special schemes. For example, if they meet certain targets, we provide incentives. If we rely solely on basic salary, I don’t think we will be able to retain them.
Reinventing Manufacturing: Dato’ Dr. Cheng on Cost, People, and Nanotechnology
Dato’ Dr. Cheng: I think that to allow us to compete in manufacturing as a developed nation, we definitely need to move into automation and data analytics. Two years ago, the government promoted Industry 4.0, which I believe was a good initiative. They did well by providing incentives to companies looking to move towards automation. For example, the government helped finance automation to replace labour-intensive jobs.
“If we continue depending on labour-intensive processes, productivity will not improve. With automation, we can achieve better quality control and increase production volume without downtime.”
Industry 4.0 is the way forward because by adopting automation, we can improve productivity. As I mentioned, we have challenges in hiring people, so we cannot rely solely on manual labour. If we continue depending on labour-intensive processes, productivity will not improve. Productivity also relates to areas like quality control and ramping up production. With automation, we can achieve better QC and increase production volume without downtime—something that is difficult to avoid with human labour.
Another advantage of automation is the ability to collect precise data for analysis. From that data, we can determine when downtime will occur, how much we can produce daily, and identify potential problems. This level of insight is only possible when the processes are automated.
Dato’ Dr. Cheng: The initial investment in automation is very high. It only becomes justifiable if your production volume is large. But if your production volume is small, like 10 units, then it wouldn’t make sense—it’s better to use manual labor. So, for smaller companies, manual labor would be more cost-effective.
Dato’ Dr. Cheng: The latest that we had is photochromic. You might have seen a lot of products in the market now using electrochromic technology. Electrochromic works by applying electricity to certain materials like glass films, causing the liquid between the layers to change shades. For example, in some hotels, you’ll find shower or toilet partitions that turn opaque at the flick of a switch, giving instant privacy.
What we’ve developed is different—it’s a photochromic coating solution. This solution can be applied to a film, and when that film is exposed to sunlight or UV light, it automatically darkens. When you move indoors, away from sunlight or UV exposure, it becomes clear again.
The key difference between the two is that electrochromic requires an electrical charge—AC or DC, to switch between clear and tinted states, whereas photochromic doesn’t need electricity at all. It reacts naturally to sunlight.
This makes photochromic technology ideal for applications like car windows, motorcycle helmet visors, and other products where automatic sun protection is useful without relying on power sources.
Dato’ Dr. Cheng: From my perspective, the future of manufacturing in general—not only for Nanopac; must move towards automation. One important aspect of this is the IIoT, or Industrial Internet of Things, particularly sensors. When you talk about automation, it’s not just about machinery; you also need to implement IoT.
These sensors can collect data more efficiently, and when combined with AI, they can analyze that data in-depth. This will significantly improve productivity and help reduce costs. This is one of the aspects you must adopt in your manufacturing process—otherwise, we can’t compete if we continue relying on manual labour or semi-automation, like we did before.
For Nanopac, this is our vision moving forward, and we’re looking ahead to an exciting future.
Dato’ Dr. Cheng: Yes. Since our establishment in 2003, with almost 20 years of manufacturing experience, we have indeed faced challenges unique to textile finishing manufacturing. One of the earliest challenges was in labor. At that time, what we were doing was entirely new, and there was no local workforce with experience in nanotechnology manufacturing. We had to recruit people who were willing to learn, train them, and help them adapt to a completely new manufacturing and embedment process for our products.
Another challenge was raw material sourcing. For example, one of our main ingredients is a simple material — solvent — but it was not available locally. This meant we had to source it from overseas, which increased our costs. And when production costs rise, it inevitably affects profitability. These are some of the unique hurdles we have had to navigate in the textile finishing manufacturing industry.
Dato’ Dr. Cheng: Malaysia’s textile landscape is very different from Vietnam, Bangladesh, or China. Bangladesh focuses on low-cost mass production, Vietnam is re-emerging as a strong textile hub, and China is active in almost every segment of the industry. Competing on the same scale is difficult for us because we simply don’t have that economic scale.
This is why I believe the Malaysian government has a crucial role to play; by improving incentives, attracting global players to set up factories here, and encouraging the adoption of advanced textile technologies. At present, our local manufacturers have very limited options to scale.
“Competing with Vietnam, Bangladesh or China on scale is difficult. That’s why the government must attract global players and encourage the adoption of advanced textile technologies here.”
It’s important to remember that Malaysia once had a thriving textile industry. But over the years, due to a lack of sustained focus, strong foreign competition, labour shortages, and challenges in raw material supply, many players either shut down or moved their operations elsewhere.
We still have a pool of highly experienced textile professionals and manufacturers in Malaysia. If we fail to support and strengthen this community, we risk losing them entirely — and with them, decades of valuable expertise.
“For manufacturing, my golden advice is simple: never stop reinventing. We can’t compete with countries like China on cost alone; the key is to adopt technology so we can compete on innovation and value, not just price.”
Products and technologies must evolve, they can’t stay stagnant. Think outside the box, whether in packaging, marketing, or the technology itself.”
Too often, I see manufacturers focus purely on cost-cutting. While controlling costs is important, we can’t compete with countries like China on cost alone — we don’t have the same economies of scale. Instead, the key is to adopt technology so we can compete on innovation and value, not just price.
Work closely with design teams and create an innovation “think tank” within your company to continuously explore new product ideas. Maximize productivity and look at ways to increase volumes. For lower-volume or highly customized products, consider 3D printing — it’s precise, reduces waste, lowers costs, and allows rapid prototyping before launching a full production run.
Also, think global. To remain competitive, SMEs should explore mergers or acquisitions. Sometimes joining forces with bigger players is the fastest way to gain market reach and efficiency. In today’s environment, collaboration and consolidation can be just as important as innovation.
Dato’ Dr. Cheng: Yes, and we are currently exploring mergers in other industries.
Right now, we’re looking at disruptive technologies in the semiconductor space. One of the industry’s biggest challenges is IC design, especially heat dissipation. For example, in mobile phones, microprocessors need to release heat quickly to maintain performance. If they overheat, the processor slows down or may even malfunction.
We see an opportunity in graphene technology to address this problem. To bring this solution to market quickly, we’re pursuing multiple acquisitions rather than reinventing the wheel. By merging with companies that have complementary expertise, we can accelerate innovation and deliver impactful solutions faster.
Dato’ Dr. Cheng: Sustainability is a term we hear a lot nowadays, but it wasn’t always top of mind. For us, the idea really took shape before we moved into our new factory. Our old facilities didn’t give us much opportunity to focus on sustainability because we had other urgent challenges — like stabilizing our manufacturing processes. It took about 10 years to get those processes running smoothly.
When the chance came to build a new factory from the ground up, I saw it as the perfect opportunity to integrate sustainable technologies. We also wanted to showcase these innovations to our customers. From there, we started developing more products with sustainability in mind.
“Sustainability is important because it must reduce costs to be meaningful — if it doesn’t, then it’s not truly sustainable.”
For example, we designed a wastewater treatment container that can be moved anywhere and function as a toilet without using water or electricity.
At our factory now, we’ve adopted solar power, which accounts for about 40.5% of our energy. We also recycle water in some of our processes. These are the kinds of sustainability initiatives we are focused on — practical, cost-effective solutions that help the environment and improve our operations.
Dato’ Dr. Cheng: Success, to me, has two important dimensions. First is family success; that’s the backbone of everything. When you graduate, you might not think much about it, but as you progress in your career, you realize that family well-being is essential.
The second is career success, but it’s not just about money. It’s about the results and achievements that show your true potential. Winning awards, reaching new milestones, or even taking a company public; these are all meaningful markers of success.
If you look at people like Bill Gates, their definition of success evolves over time. So, balancing family and career achievements is how I define true success.
NanoTextile: Thank you, Dato’ Dr. Cheng, for sharing your experience and insights with us.
Dato’ Dr. Cheng: Thank you, Hannah.
NanoTextile: And thank you to our audience for joining What Say The Experts. We look forward to our next session.
Dato’ Dr. Cheng Kok Leong, founder of Nanopac (M) Sdn Bhd, who has spent his career bridging nanotechnology and manufacturing to create solutions that make a real impact. He is a technopreneur with more than 25 years of experience in starting up and managing high-end technology companies, and has won numerous national and international medals for his inventions and products such as eCool, eLight, SmartStrip, and iFlash. In 2009, he led Nanopac Malaysia to win the SME 100 Fastest Moving Companies award and the Best Business Partner Award by Hitachi.
From pioneering new materials to guiding his team through innovative projects, he continues to push boundaries while championing sustainability and talent development.
Dato’ Dr. Cheng: I was educated in Malaysia from primary to secondary school, then pursued my tertiary education in Australia, majoring in IT. I later obtained my professional and chartered engineer qualification from the UK while working. In the 1990s, IT was booming in Malaysia and the chartered engineer title was highly valued, often leading to higher pay.
I began my career as a system engineer for Tokyo Electric Corporation, later becoming IT Manager for a listed company. Eventually, I started my own ventures, which led to founding Nanopac.
Dato’ Dr. Cheng: Yes, my initial passion was in IT—I even pursued my Master’s and Doctorate in the field. But by the 2000s, IT in Malaysia wasn’t progressing much. And the way I look at it is that I can only be a system engineer or even become a consultant. I saw more potential in disruptive technologies, so I moved into nanotechnology, foreseeing its impact as the next big thing.
Dato’ Dr. Cheng: During the years of inception with Nanopac, some of the manufacturing problems that we faced are mainly on the rising material costs. As we can see from the day we started until now, there has been a tremendous increase in material costs, especially during the lockdown. Getting raw materials was very tough, particularly due to shipping challenges. Some of our raw materials had to be imported from Korea, which caused a lot of problems. Even local raw materials in Malaysia faced the same issue; suppliers could not deliver. In the manufacturing sector, the rising cost of raw materials will be a major problem, as it directly cuts into our profit.
Another major challenge was employee productivity. During the lockdown, there was no viable way to improve productivity due to travel restrictions and operational limitations. Once COVID restrictions were lifted, we faced a different problem; high staff turnover. Many factories competed aggressively to recruit skilled workers, especially with the shortage of foreign labor after many had returned to their home countries. This labor shortage led to a sharp increase in operational costs, as higher wages had to be offered to retain workers. Consequently, the cost of production rose substantially compared to previous years. The combination of limited material supply and labor shortages created significant and lasting challenges for our manufacturing operations.
“The rising cost of raw materials will be a major problem, as it directly cuts into profit. Another big challenge is high staff turnover ; training costs rise, and we have to start all over again.”
To cope, we sought alternative sourcing, optimized production, and adapted to the changing labor market.
Dato’ Dr. Cheng: Fortunately for Nanopac, we did not have many employees to lay off. During COVID, we were able to continue operating because we had a special permit to do so. We were also part of one of the MOSTI minister’s think tanks, tasked with developing new inventions to help cope with the COVID outbreak. As a result, our operations continued throughout that period, and we did not experience any major setbacks; except for other companies trying to poach our staff.
Dato’ Dr. Cheng: For NanoPac, we were a bit lucky—the only two main issues we faced were, firstly, hiring good people. Finding good staff nowadays is difficult because turnover is very high. They often get poached; once they receive a high salary increment, they move on to the next organization. This is a major problem for us because we need to spend time training them to fit into the organization. Training costs inevitably increase, as we invest heavily in preparing these people, and when they leave, we have to start all over again. This is especially challenging for managerial positions, which are difficult to retain.
The second issue is the high turnover rate itself, which is tremendous on the management side. The only way to address this is by coming up with special schemes. For example, if they meet certain targets, we provide incentives. If we rely solely on basic salary, I don’t think we will be able to retain them.
Dato’ Dr. Cheng: I think that to allow us to compete in manufacturing as a developed nation, we definitely need to move into automation and data analytics. Two years ago, the government promoted Industry 4.0, which I believe was a good initiative. They did well by providing incentives to companies looking to move towards automation. For example, the government helped finance automation to replace labour-intensive jobs.
“If we continue depending on labour-intensive processes, productivity will not improve. With automation, we can achieve better quality control and increase production volume without downtime.”
Industry 4.0 is the way forward because by adopting automation, we can improve productivity. As I mentioned, we have challenges in hiring people, so we cannot rely solely on manual labour. If we continue depending on labour-intensive processes, productivity will not improve. Productivity also relates to areas like quality control and ramping up production. With automation, we can achieve better QC and increase production volume without downtime—something that is difficult to avoid with human labour.
Another advantage of automation is the ability to collect precise data for analysis. From that data, we can determine when downtime will occur, how much we can produce daily, and identify potential problems. This level of insight is only possible when the processes are automated.
Dato’ Dr. Cheng: The initial investment in automation is very high. It only becomes justifiable if your production volume is large. But if your production volume is small, like 10 units, then it wouldn’t make sense—it’s better to use manual labor. So, for smaller companies, manual labor would be more cost-effective.
Dato’ Dr. Cheng: The latest that we had is photochromic. You might have seen a lot of products in the market now using electrochromic technology. Electrochromic works by applying electricity to certain materials like glass films, causing the liquid between the layers to change shades. For example, in some hotels, you’ll find shower or toilet partitions that turn opaque at the flick of a switch, giving instant privacy.
What we’ve developed is different—it’s a photochromic coating solution. This solution can be applied to a film, and when that film is exposed to sunlight or UV light, it automatically darkens. When you move indoors, away from sunlight or UV exposure, it becomes clear again.
The key difference between the two is that electrochromic requires an electrical charge—AC or DC, to switch between clear and tinted states, whereas photochromic doesn’t need electricity at all. It reacts naturally to sunlight.
This makes photochromic technology ideal for applications like car windows, motorcycle helmet visors, and other products where automatic sun protection is useful without relying on power sources.
Dato’ Dr. Cheng: From my perspective, the future of manufacturing in general—not only for Nanopac; must move towards automation. One important aspect of this is the IIoT, or Industrial Internet of Things, particularly sensors. When you talk about automation, it’s not just about machinery; you also need to implement IoT.
These sensors can collect data more efficiently, and when combined with AI, they can analyze that data in-depth. This will significantly improve productivity and help reduce costs. This is one of the aspects you must adopt in your manufacturing process—otherwise, we can’t compete if we continue relying on manual labour or semi-automation, like we did before.
For Nanopac, this is our vision moving forward, and we’re looking ahead to an exciting future.
Dato’ Dr. Cheng: Yes. Since our establishment in 2003, with almost 20 years of manufacturing experience, we have indeed faced challenges unique to textile finishing manufacturing. One of the earliest challenges was in labor. At that time, what we were doing was entirely new, and there was no local workforce with experience in nanotechnology manufacturing. We had to recruit people who were willing to learn, train them, and help them adapt to a completely new manufacturing and embedment process for our products.
Another challenge was raw material sourcing. For example, one of our main ingredients is a simple material — solvent — but it was not available locally. This meant we had to source it from overseas, which increased our costs. And when production costs rise, it inevitably affects profitability. These are some of the unique hurdles we have had to navigate in the textile finishing manufacturing industry.
Dato’ Dr. Cheng: Malaysia’s textile landscape is very different from Vietnam, Bangladesh, or China. Bangladesh focuses on low-cost mass production, Vietnam is re-emerging as a strong textile hub, and China is active in almost every segment of the industry. Competing on the same scale is difficult for us because we simply don’t have that economic scale.
This is why I believe the Malaysian government has a crucial role to play; by improving incentives, attracting global players to set up factories here, and encouraging the adoption of advanced textile technologies. At present, our local manufacturers have very limited options to scale.
“Competing with Vietnam, Bangladesh or China on scale is difficult. That’s why the government must attract global players and encourage the adoption of advanced textile technologies here.”
Director of Nanopac Alaska Sdn Bhd, Henry Cheang; Managing Director of Alaska Mining Sdn Bhd, Lee Hon Kit; Acting Chief Executive Officer of Nanopac Alaska Sdn Bhd, Tobby Tan; and Chairman of Nanopac Innovation Limited, Dato’ Dr Cheng Kok Leong, at the signing ceremony of the sale of a 51% equity interest to Nanopac Alaska Sdn Bhd (NASB).
It’s important to remember that Malaysia once had a thriving textile industry. But over the years, due to a lack of sustained focus, strong foreign competition, labour shortages, and challenges in raw material supply, many players either shut down or moved their operations elsewhere.
We still have a pool of highly experienced textile professionals and manufacturers in Malaysia. If we fail to support and strengthen this community, we risk losing them entirely — and with them, decades of valuable expertise.
“For manufacturing, my golden advice is simple: never stop reinventing. We can’t compete with countries like China on cost alone; the key is to adopt technology so we can compete on innovation and value, not just price.”
Products and technologies must evolve, they can’t stay stagnant. Think outside the box, whether in packaging, marketing, or the technology itself.”
Too often, I see manufacturers focus purely on cost-cutting. While controlling costs is important, we can’t compete with countries like China on cost alone — we don’t have the same economies of scale. Instead, the key is to adopt technology so we can compete on innovation and value, not just price.
Work closely with design teams and create an innovation “think tank” within your company to continuously explore new product ideas. Maximize productivity and look at ways to increase volumes. For lower-volume or highly customized products, consider 3D printing — it’s precise, reduces waste, lowers costs, and allows rapid prototyping before launching a full production run.
Also, think global. To remain competitive, SMEs should explore mergers or acquisitions. Sometimes joining forces with bigger players is the fastest way to gain market reach and efficiency. In today’s environment, collaboration and consolidation can be just as important as innovation.
Dato’ Dr. Cheng: Yes, and we are currently exploring mergers in other industries.
Right now, we’re looking at disruptive technologies in the semiconductor space. One of the industry’s biggest challenges is IC design, especially heat dissipation. For example, in mobile phones, microprocessors need to release heat quickly to maintain performance. If they overheat, the processor slows down or may even malfunction.
We see an opportunity in graphene technology to address this problem. To bring this solution to market quickly, we’re pursuing multiple acquisitions rather than reinventing the wheel. By merging with companies that have complementary expertise, we can accelerate innovation and deliver impactful solutions faster.
Dato’ Dr. Cheng: Sustainability is a term we hear a lot nowadays, but it wasn’t always top of mind. For us, the idea really took shape before we moved into our new factory. Our old facilities didn’t give us much opportunity to focus on sustainability because we had other urgent challenges — like stabilizing our manufacturing processes. It took about 10 years to get those processes running smoothly.
When the chance came to build a new factory from the ground up, I saw it as the perfect opportunity to integrate sustainable technologies. We also wanted to showcase these innovations to our customers. From there, we started developing more products with sustainability in mind.
“Sustainability is important because it must reduce costs to be meaningful — if it doesn’t, then it’s not truly sustainable.”
For example, we designed a wastewater treatment container that can be moved anywhere and function as a toilet without using water or electricity.
At our factory now, we’ve adopted solar power, which accounts for about 40.5% of our energy. We also recycle water in some of our processes. These are the kinds of sustainability initiatives we are focused on — practical, cost-effective solutions that help the environment and improve our operations.
Dato’ Dr. Cheng: Success, to me, has two important dimensions. First is family success; that’s the backbone of everything. When you graduate, you might not think much about it, but as you progress in your career, you realize that family well-being is essential.
The second is career success, but it’s not just about money. It’s about the results and achievements that show your true potential. Winning awards, reaching new milestones, or even taking a company public; these are all meaningful markers of success.
If you look at people like Bill Gates, their definition of success evolves over time. So, balancing family and career achievements is how I define true success.
NanoTextile: Thank you, Dato’ Dr. Cheng, for sharing your experience and insights with us.
Dato’ Dr. Cheng: Thank you, Hannah.
NanoTextile: And thank you to our audience for joining What Say The Experts. We look forward to our next session.