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Mercedes-Benz AG Chooses Malaysia as Their Regional Parts Logistics Centre for APAC

Kuala Lumpur, 22 October 2021 – Mercedes-Benz AG, one of the world’s largest manufacturer of luxury passenger cars has decided to make Malaysia as their Regional Parts Logistics Centre for APAC to manage and distribute an assortment of replacement spare parts and accessories, serving 22 countries.

The company’s new facility in Malaysia will feature a storage capacity of one (1) million square feet and equipped with advanced storage and materials-handling systems to better serve its regional supply chain network.

This move was discussed during the Trade and Investment Mission (TIM) to Germany, led by YB. Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI), on 14 October 2021.

YB. Dato’ Seri Mohamed Azmin Ali remarked, “Mercedes-Benz AG’s decision in choosing Malaysia as their regional parts logistics centre for APAC not only signals the company’s continual pursuit for growth but also is an embodiment of the company’s confidence in Malaysia’s conducive ecosystem and our strength to support their long-term growth. It also acknowledges the capability of our local talent of highly skilled engineers, technicians and as the key global supply chain and distribution hub in the region. In line with the Twelfth Malaysia Plan (12MP), the Government will continue to enhance our ease of doing business, logistics and ports networks as well as promote strategic collaboration and industry linkages to increase Malaysia’s competitiveness in the region.”

Mercedes-Benz joins the increasing trend of establishment of global and regional distribution hubs in Malaysia by companies in industries such as automotive, life sciences and medical devices, electrical and electronics (E&E)as well as machinery and equipment (M&E). These companies seek to tap on Malaysia’s strategic location, talent availability as well as our efficient and reliable logistics network and infrastructure such as ports, airports and financial institutions, allowing them to improve operational efficiency as well as optimise quality and speed for their products and services for their customers.

Mr. Arham Abdul Rahman, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA) welcomed Mercedes-Benz AG’s decision to make Malaysia as their Regional Parts Logistics Centre for APAC, saying, “The Government acknowledges the positive spill-overs of quality investments to the development of Malaysia’s business ecosystem. As such, MIDA has been consistent in our efforts to scout and attract quality investments from around the world. This latest investment by Mercedes-Benz AG will assume a critical role to further strengthen the linkages within our local industry, create high value jobs for Malaysians and enhance our country’s positioning as a global supply chain and distribution hub.

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About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube.

For further information, please contact:
Rosedalina Ramlan (Ms.)
Email: [email protected] | DL: +603-2267 3515

Mercedes-Benz AG Chooses Malaysia as Their Regional Parts Logistics Centre for APAC


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Senior Minister and Minister of International Trade and Industry, YB Dato’ Seri Mohamed Azmin Ali underscored Malaysia’s commitment in pursuing Environmental, Social and Governance (ESG) agenda through the recently unveiled Twelfth Malaysia Plan (RMKe12) and National Investment Aspirations (NIA), to the Government of France during his bilateral meeting with Minister Delegate for Foreign Trade and Economic Attractiveness, His Excellency Franck Riester in Paris.

The session with his counterpart in Paris kick started the Trade and Investment Mission (TIM) to France from 15th to 17th October 2021. During the meeting, Dato’ Seri Azmin highlighted opportunities in Malaysia’s growing green technology sector and Malaysian industry players’ capabilities in this high-value sector.

The Senior Minister further emphasised Malaysia’s firm commitment to support an ecosystem built on the sustainable agenda and shared that Malaysia aims to achieve carbon net-zero greenhouse gas (GHG) emissions at the earliest by 2050, which was warmly welcomed by the French Minister.

Both Ministers had an engaging discussion on topics of mutual interest ranging from economic recovery strategies in the endemic phase, advancing reforms at the World Trade Organisation (WTO), leveraging Malaysia’s position in the mega Regional Comprehensive Economic Partnership (RCEP) Agreement to investment and commercial opportunities in renewable energy. The Malaysian delegation also commended France’s renewed interest in the South East Asian region, including Malaysia, and saw this new development as a pathway to further strengthen the ties
between both nations. France’s growing interest in this region was greatly welcomed as France is set to assume the presidency of the Council of the European Union during the first half of 2022.

The Senior Minister held a Roundtable Meeting with Mouvement des Enterprises de France (MEDEF) International which saw the participation of 17 prominent companies including industry captains for aerospace, defence, transportation, chemical & chemical industry, machinery & equipment, Information Technology, inspection & certification and banking sectors. The key takeaway was the reassurances by the Senior Minister that Malaysia will continue to be a strategic business partner with clear and predictable policies, and the Government remains steadfast in further developing the industrial ecosystems in Malaysia. It is truly encouraging that French companies valued Malaysia as their chosen destination to establish or to expand their footprint in South East Asia and the Asia Pacific, leveraging on the business-friendly policies of the Malaysian Government.

Dato’ Seri Azmin also witnessed the signing of a Memorandum of Understanding (MOU) between the Malaysian Investment Development Authority (MIDA) and MEDEF International. The strategic partnership between MIDA and MEDEF International will complement Malaysia’s NIA through expanded cooperation aiming to facilitate the nation’s industrial ecosystem with the catalytic infrastructure and new technologies.

The Malaysian delegation also had a series of one-to-one sessions with French companies notably Airbus, Saint-Gobain, Adisseo Group, Prolaser and Innovafeed, where the delegation expressed a strong interest to strengthen the footprints of Malaysian products in Europe through France, During these sessions, the French enterprises showed great interest to continue making Malaysia their business partner in the aerospace, biotechnology, advanced chemical, medical devices, halal products and the construction sectors. Malaysia’s strong focus on the green agenda in charting
the country’s economic development also provided the French businesses assurance that Malaysia is moving in tandem with world megatrends.

The TIM to France had successfully generated a total of RM2.6 billion potential investment and RM300 million worth of potential exports, validating the success of Malaysia’s continuous efforts in attracting quality investment and in enhancing participation of local companies in high value global supply chain. The strong interest shown by French companies garnered during the Mission serves as a major catalyst in expanding the bilateral trade and investment relations, most notably in areas that support the sustainable and green agenda advocated by both nations.

MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI)
18 OCTOBER 2021

About MITI
MITI is the key driver in making Malaysia the preferred destination for quality investments and enhancing the nation’s rising status as a globally competitive trading nation. Its objectives and roles are oriented towards ensuring Malaysia’s rapid economic development and help achieve the country’s stated goal of becoming a developed nation.

Media enquiries:
Strategic Communications Unit, MITI
Tel : +603 62000083
Fax : + 603 62064293
Email : [email protected]

Malaysia And France Move Forward Together In Strengthening Bilateral Ties With Investment Opportunities In The Sustainable Economy


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Paris, 18 October 2021 – Senior Minister and Minister of International Trade and Industry (MITI), YB. Dato’ Seri Mohamed Azmin Ali witnessed a Memorandum of Understanding (MOU) signing between the Malaysian Investment Development Authority (MIDA) and MEDEF International, the French private business network abroad. The MOU formalises the continuous partnership between both organisations to further encourage, promote and facilitate potential investments and business cooperation for mutually beneficial outcomes.

The MOU was signed by Mr. Arham Abdul Rahman, Chief Executive Officer (CEO) of MIDA and Mr. Philippe Gautier, CEO of MEDEF International, during the roundtable meeting with MEDEF International’s France – Malaysia Business Council members.

Also present at the signing ceremony were His Excellency Dato’ Mohd Zamruni Khalid, the Ambassador of Malaysia to France; Mr. Hairil Yahri Yaacob, Deputy Secretary General (Trade) of MITI; and Mr. Mohd Mustafa Abdul Aziz, CEO of Malaysia External Trade Development Corporation (MATRADE).

Economic ties between Malaysia and France have flourished over the years driven by solid diplomatic foundations laid by leaders of both countries. This is evident through the increasing number of French companies investing in Malaysia. As of December 2020, a total of 126 manufacturing projects with French participation have been implemented in Malaysia, with total investments worth RM4.36 billion (USD1.31 billion), creating more than 10,900 jobs.

Underscoring the significance of the MOU, Dato’ Seri Azmin remarked, “France has had a long presence in Malaysia’s manufacturing and services sectors. Recognising the synergies between the French innovative capabilities and Malaysia’s value proposition, we are confident that there will be more French investors, investing particularly within high value and high technology fields such as transport equipment (aerospace), ICT, pharmaceutical, scientific and measuring equipment, electrical and electronics, food, chemical and chemical products as well as machinery and equipment. Concurrently, we hope that these investments will spur more talent development programmes to future proof our workforce, building upon our National Investment Aspirations (NIA) and the Twelfth Malaysian Plan (12MP) towards 2025.”

Mr. Arham Abdul Rahman elaborated, “Given MEDEF International’s invaluable global network in more than 120 markets, this partnership will enable more Malaysian businesses and technology providers to better connect with the global supply chain. The Government of Malaysia, through MIDA will continue to work closely with MEDEF International to further boost and realise French investments in Malaysia.”

Mr. Philippe Gautier also expressed his pleasure to further deepen the partnership between both organisations, saying “MIDA and MEDEF International have established a long and close relationship over many years. MEDEF International’s France-Malaysia Business Council, in particular, has been actively meeting and engaging with Malaysian public authorities and private sector decision-makers for three (3) decades through a number of business missions to Kuala Lumpur. We have also continued to work virtually with MIDA over the past two (2) years since the pandemic to foster opportunities and connect more French companies with Malaysian businesses. We look forward to more future collaborations in building dynamic bilateral relations.”

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About MIDA
MIDA is the Government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube.

About MEDEF International
MEDEF International is the French private business network abroad; chaired by Mr. Frederic Sanchez, CEO of FIVES GROUP. MEDEF International aims at promoting the French companies’ know-how abroad through collective actions. MEDEF International supports trade, technologic cooperation and investments, long-term partnerships, especially on emerging and developing markets as well as reconstruction markets.

For more information, please contact:

Mr. Faizal Jalaludin
Director, Foreign Investment Promotion Division, MIDA
Phone: +603 2267 6633
Email: [email protected]

Ms. Priyanka Ramatchandirane
Project Officer – South-East Asia & Oceania
MEDEF International
Phone: +331 5359 1632
Email: [email protected]

MIDA and MEDEF International Ink Strategic Partnership to Support Investment Opportunities and Business Cooperation


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Kuala Lumpur, 18 October 2021 – H&R GmbH & Co. KGaA announced that it will be investing RM200 million in a speciality manufacturing plant in Lumut, Perak. The leading global sustainable refiner and marketer of speciality plasticisers, extender oils, softeners and waxes, headquartered in Hamburg, Germany has more than 100 years of experience operating speciality refineries in manufacturing plants around the world.

H&R announced its investment plan during the meeting between H&R and the Trade and Investment Mission (TIM) to Germany delegation led by YB. Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI).

The Group will be establishing a new entity, H&R Chempharm Asia Sdn. Bhd., which will focus on the production of environmentally friendly plasticisers for tyre and rubber applications as well as technical and medicinal white oils for food, pharmaceutical, cosmetics and polymer applications with the new introductory of bio-based products. This investment is anticipated to create 70 new jobs in Malaysia.

H&R plans to kickstart the construction of their facility by March 2022, followed by commencement of production in early 2024. The project will tentatively be carried out in three (3) phases, with a designed capacity of 150,000 tons per annum. Phase I and Phase II will be dedicated to the production of speciality plasticisers, white oils and wax emulsions from mineral, synthetic and renewable resources; Phase III will focus on the production of renewables through uniquely designed synthesising technologies.

Apart from H&R Chempharm Asia Sdn. Bhd., H&R has two (2) existing facilities in Malaysia, namely H&R Malaysia Sdn. Bhd. and H&R Malaysia Wax Sdn. Bhd. in Port Klang and Batu Caves, respectively. These facilities have been in operations since 1990, producing wax speciality emulsions as well as undertaking marketing and distribution activities of various specialty oils and waxes.

YB. Dato’ Seri Mohamed Azmin Ali remarked, “H&R’s investment announcement reflects foreign investors’ confidence in Malaysia’s business environment that remains conducive. The Group has indicated clear goals to reduce its dependency on fossil-based feedstock towards renewable or hybrid feedstock for more sustainable products and speciality applications; eventually to reach carbon neutral in its operation by 2035. This is in line with Malaysia’s commitment to drive reforms in achieving carbon net-zero greenhouse gas (GHG) emissions by 2050. This strategic investment will further support and drive Malaysia’s commitment towards Environment, Social and Governance (ESG) values and advancing green growth as outlined in the Twelfth Malaysian Plan (12MP).”

Mr. Arham Abdul Rahman, Chief Executive Officer (CEO) of the Malaysian Investment Development Authority (MIDA) echoed the Senior Minister, saying, “It is encouraging to see H&R further enhance their venture towards bio-based products in Malaysia. This is a testament to our well-established chemical industry ecosystem that has been an important catalyst to other industries such as automotive, food, medical devices and pharmaceuticals. MIDA, through our Project Acceleration and Coordination Unit (PACU) will work closely with H&R to provide end-to-end facilitation in ensuring the smooth implementation of their project in Malaysia.”

Mr. Niels H. Hansen, CEO and Chairman of the Executive Board of H&R, shared, “The strategic direction and vision of the Malaysian Government for a carbon neutral economy definitely strengthens our determination to further invest in the country. Our investment in Lumut, Perak aims to contribute to a more sustainable growth, focusing on de-fossilisation.”

He further added, “Malaysia, centrally positioned in Southeast Asia, is a sustainable manufacturing hub with rich resources, in both mineral and renewable feedstock, to serve the ASEAN community. As an industry leader in the manufacture and marketing of speciality niche products, we intend to develop a hybrid business model in our project in Lumut to transition production of mineral-based products to renewable specialties with locally sourced feedstock to supply to our global customers who are producing in the region.”

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About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube.

About H&R Malaysia

H&R GmbH & Co. KGaA, headquartered in Hamburg, Germany, is a leading global sustainable refiner and marketer of speciality plasticisers, extender oils, softeners and waxes. H&R operates speciality refineries in manufacturing plants around the world and owns as a shareholder a bio speciality refinery in the USA.

For further information, please contact:

Surayu Susah (Ms.)
Email: [email protected] | DL: +603-2267 6773

Sritharen Kittappa (Mr.)
Email: [email protected] | DL: +603 31768314 / +60 0193216894

Hansen & Rosenthal (H&R) Group Renews Commitment To Malaysia With Additional RM200 million Investment


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The Expansion Plan was announced duringTrade and Investment Mission (TIM) to Germany led by Senior Minister and Minister of International Trade and Industry

Kuala Lumpur, 15 October 2021 – BASF PETRONAS Chemicals Sdn. Bhd. (“BPC”), a joint venture between BASF and PETRONAS Chemicals Group Berhad (“PCG”), plans to expand its annual production capacity of 2-Ethylhexanoic Acid (2-EHA) at its Verbund site in Gebeng Industrial Area, Kuantan, Pahang. This milestone looks to not only strengthen the Company’s presence in Asia but to also meet the demands of their customers worldwide.

BPC’s announcement was one of the key discussion points during the meeting between BASF, represented by Dr. Markus Kamieth, Member of the Board of Executive Directors of BASE SE and the Trade and Investment Mission’s (TIM) delegation to Germany, led by YB. Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI), on 13 October 2021.

YB. Dato’ Seri Mohamed Azmin Ali commended the BPC project and expansion plan in Malaysia, saying: “BPC, as a fully integrated oil and gas multinational has been instrumental in propelling the growth and further value-adding to the Malaysia’s speciality chemical ecosystem. The Government, through MITI and MIDA will continue to provide the requisite assistance to the Company to realise their future plans, reinforcing our commitment to attract and sustain quality investments in the country. This is crucial as our industries manufacture for a cleaner, greener, more sustainable future in line with the Environment, Social and Governance values (ESG) under the United Nations Sustainable Development Goals (UNSDG).”

Apart from the production site in Kuantan, Malaysia, BASF produces 2-EHA at its Verbund site in Ludwigshafen, Germany. BPC proposes to increase its annual production capacity of 2-EHA from 30,000 to 60,000 metric tons by 2024.

Mr. Vasilios Galanos, Senior Vice President, Intermediates Asia Pacific of BASF commented, “We are committed to supporting our customers’ growing demand in various 2-EHA downstream applications such as synthetic lubricants for the white goods industry and PVB plasticisers for safety glass production in the construction and automotive segments. With the increased capacity, we continue to ensure persistent supply capability in Asia Pacific with the highest standard of product quality.”

Datuk Sazali Hamzah, Managing Director and CEO of PCG further elaborated, “2-EHA has been an integral part of BPC’s growth and it is timely that the expansion is planned to capture the growing market. The expansion is also in line with PCG’s sustainable growth strategy to expand our portfolio with higher value products. By leveraging the existing integration between BPC and other PCG plants in the Kuantan Verbund site, we are able to maximise our value chain by improving the quality and cost competitiveness of our products and continue delivering innovative solutions to our customers.”

Mr. Marko Murtonen, Managing Director of BPC also mentioned, “This expansion marks another milestone of the well-established partnership between BASF and PCG. It reinforces our commitment to expand local production to meet our growing customer demand competitively. Additionally, it caters to a rising trend on high quality products combined with production efficiency that is well integrated into the sustainability targets of our parent companies.”

Mr. Arham Abdul Rahman, Chief Executive Officer (CEO) of the Malaysian Investment Development Authority (MIDA) remarked, “The strategic venture between BASF and PCG since 1997 is among the commendable success stories in shaping the development of the chemical industry in Malaysia. BPC expansion plan is timely to strengthen the country’s chemical industry towards producing higher value-added offerings such as speciality chemicals and market-driven chemical products, which will drive the growth and development of the entire value chain.”

“Towards this, MIDA will continuously strive to improve the business landscape in Malaysia and be ever-ready to facilitate our stakeholders to spearhead the investment agenda of the country in line with the Twelfth Malaysian Plan (12MP) and our National Investment Aspirations (NIA),” he added. 

2-EHA is a chemical intermediate used as a compound in the production of synthetic lubricants as well as oil additives. It is also used in functional fluids such as automotive coolants, metal salts for paint dryers, plasticisers, stabilisers and catalysts in various industries.

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About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube.

For further enquiries, please contact:
Surayu Susah (Ms)
Email: [email protected] | DL: +603-2267 6773

About BASF PETRONAS Chemicals Sdn. Bhd.

BASF PETRONAS Chemicals Sdn. Bhd. is a Malaysia-based joint venture between BASF and Petroliam Nasional Berhad (PETRONAS), Malaysia’s fully integrated oil and gas multinational, under its subsidiary PETRONAS Chemicals Group Berhad (PCG). Incorporated in 1997, the company operates an integrated ‘Verbund’ site situated in the Gebeng Industrial Zone, Pahang. The company’s share capital is 60% held by BASF and 40% held by PCG. Key products include acrylic monomers, oxo products, 2-ethylhexanoic acid, highly reactive polyisobutene and aroma ingredients.

For more information, visit our website www.basf-petronas.com.my

BASF Petronas Chemicals to Ramp-Up Production In Kuantan, Malaysia


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Kuala Lumpur, 8 October 2021 – The Malaysian Investment Development Authority (MIDA) signed a Memorandum of Agreement (MOA) with Universiti Kebangsaan Malaysia (UKM), Universiti Teknologi Malaysia (UTM) and Universiti Putra Malaysia (UPM) for the implementation of the MIDA Assessment Development Center (MADC) HyTalent Programme. The signing ceremony was witnessed by YB. Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI). 

“The MADC HyTalent Programme embodies the Twelfth Malaysian Plan (12MP) roadmap to develop and equip future talent with Fourth Industrial Revolution (4IR) skill sets that are important for them to keep pace with the rapid changes in technological advancement and meet industry demands. Through this strategic partnership, the Government anticipates a more skilled and diverse Malaysian workforce, particularly in the manufacturing sector as the Programme is uniquely structured to provide trainees with intensive leadership and technical training in the field of Internet of Things (IoT) and Industrial Internet of Things (IIOT),” said YB. Dato’ Seri Mohamed Azmin Ali.

The MADC HyTalent Programme syllabus is established in collaboration with local universities together with international and local industry players to bridge the gap between the supply of local engineers and the demand of the industry, especially in the field of IoT and IIOT. It comprises a 6-month live-in pilot programme combined with a 6-month internship duration to develop fresh graduates in a structured leadership and technical training to meet the needs of Malaysia’s industries. 

YB. Dato’ Seri Mohamed Azmin Ali further added, “The MADC HyTalent Programme anticipates to train 500 trainees in the field of IoT and IIOT to be employed at participating Malaysian companies with a higher than average compensation or salary after graduation.  This is a testament to the Government’s continuous focus on creating high-value jobs to ensure Malaysians reap the long-term benefits of investments in the country, in tandem to enhancing the overall industry’s ecosystem to drive sustainable economic growth on the road to recovery post COVID-19.”

The Programme is approved under the special COVID-19 Fund (Kumpulan Wang Covid19 (2021 – 2022)) by the Government to stimulate Malaysia’s current economy amidst the pandemic, with special emphasis towards addressing unemployment.  

MIDA Chief Executive Officer, Mr. Arham Abdul Rahman iterated, “At MIDA, we have always highly valued public-private partnerships. Hence, we are excited to partner with UKM, UTM and UPM for the implementation of the MADC HyTalent Programme, whereby these reputable universities will provide the much-needed personnel equipped suitably with the relevant qualifications and experience to support our fresh graduates. This is to groom future leaders with the essential talents of technical and soft skills as required by the industry.”

“MIDA, under the stewardship of MITI will also continue in our mandate to facilitate high-technology, knowledge-based and capital-intensive investments that generate multiplier effects on Malaysia’s economy, including generating quality jobs. We hope that this will ultimately contribute towards increasing the country’s productivity, efficiency and global competitiveness as an investment destination regardless of the global economic sentiments,” he added.

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About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube.

For further enquiries, please contact:

Aizah Abdullah (Ms)
Email: [email protected] | DL: +603-2267 3529

MIDA Partners with Local Universities to Drive Industry 4.0 Readiness Among Fresh Graduates


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Malaysia’s First Lighthouse Spearheading the Nation’s Industry 4.0 Aspirations

KUALA LUMPUR, 5 October 2021 – The World Economic Forum (WEF) has recognised and awarded the Western Digital factory at Batu Kawan, Penang, Malaysia as the latest entrant to its Global Lighthouse Network (GLN). This is a community of world-leading companies that have succeeded in the adaptation of the Fourth Industrial Revolution (4IR) at scale.

The World Economic Forum Global Lighthouse Network recognises production sites and value chains that are world leaders in the adoption and integration of the cutting-edge technologies of the 4IR.

“Lights-out” operations in the Western Digital Batu Kawan, Penang facility

Lighthouses apply 4IR technologies such as artificial intelligence, 3D-printing and big data analytics to maximise efficiency and competitiveness at scale, transform business models and drive economic growth, while augmenting the workforce, protecting the environment and contributing to a learning journey for all-sized manufacturers across all geographies and industries.

In congratulating Western Digital, Batu Kawan (Malaysia) on its achievement at the press conference held today, Mr. Arham Abdul Rahman, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA), remarked, “Western Digital’s operations in Batu Kawan, Penang has brought significant benefits to local players by resetting the benchmark of operational, financial and sustainability levels.

“This project will be a precursor and example to the rest of the industry in addressing sustainability and growth in intense global competition. This revolution is in line with Malaysia’s National Investment Aspirations as well as the Twelfth Malaysian Plan (12MP) initiatives as Malaysia embarks on economic recovery and reinforces its global supply chain.”

CEO of Western Digital, Mr. David Goeckeler (left), and Mr. Arham Abdul Rahman, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA) (right)

Mr. Arham added, “Western Digital, Batu Kawan (Malaysia), as the first Lighthouse in the country, will serve as a beacon for local industry players to improve their operations by effectively implementing 4IR technologies.

“MIDA is confident that more multinationals and local conglomerates will follow Western Digital’s footsteps in transforming their operations, as well as their supply chain in Malaysia to effectively adopt new technologies.

“We welcome companies to participate in the national-level Lighthouse Programme to support local companies to integrate into the lighthouse network, embracing innovation and operational efficiency that will eventually benefit Malaysia’s economic ecosystem.”

The CEO of Western Digital, Mr David Goeckeler affirmed that “Today’s recognition by the WEF Lighthouse Network is an honour and a testament of our leadership efforts in 4IR with both technology innovation and workforce engagement.”

“In a world that is increasingly technology-enabled and technology-dependent, we understand that the responsibility we have to the future of industry has never been more critical. As the world’s leading data infrastructure provider, we are committed to enabling sustainable growth and transformation across our facilities around the world to deliver value to our customers, employees, and partners,” he further added.

Spearheading by example is Malaysia’s Western Digital factory at Batu Kawan, Penang which has been recognised as part of the network. Of the 90 total sites within the network globally, Western Digital is the first company in Malaysia to receive this distinction.

The company applied technology innovations such as artificial intelligence, robotics, automation, advanced analytics and the Industrial Internet of Things (IIOT) – to achieve transformational change at its facility in Batu Kawan, Penang, Malaysia. This includes automating production and logistics to deliver 32 per cent factory cost improvement, reducing product inventory and order lead time by 50 per cent.

Beyond technology, workforce development is another key focus area for the Western Digital Batu Kawan factory. The site rolled out a comprehensive IIOT Academy program to educate and nurture its talents to cultivate a new way of thinking with the adoption of 4IR technologies. The IIOT Academy program includes strategic partnerships with local universities and international platforms to upskill employees at all levels.

Factory automation in the Western Digital Batu Kawan, Penang facility

The GLN also lists sustainability as one of its key criteria. Western Digital is committed to its sustainability efforts, and this presents a great opportunity to collaborate with WEF on this new frontier.

“Increased global concern for environmental impact has made sustainability a must-have to maintain business viability,” said Francisco Betti, Head of Shaping the Advanced Manufacturing and Value Chains, World Economic Forum.

“The selected Sustainability Lighthouses make it clear that by realising the potential of 4IR technologies in manufacturing, companies can unlock new levels of sustainability in their operations and explore a win-win solution: greater operational competitiveness while simultaneously making commitments to environmental stewardship, leading in a cleaner, more sustainable future as a result,” he further added.

MIDA is committed to pursue the strategies outlined in the National Policy of Industry 4.0 (Industry4WRD), aimed to develop Malaysia as a high-tech nation. The 12MP highlights technology adoption and innovation are to catalyse growth across all sectors; while productivity growth is expected to be led by the manufacturing sector, growing at 4.3% per year over the next five years (2021 to 2025). The digitalisation process will be accelerated and the adoption of advanced technology, particularly the 4IR technologies, will be promoted through various Government facilitations.

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About Global Lighthouse Network

The Global Lighthouse Network is a community of production sites and other facilities that are world leaders in the adoption and integration of the cutting-edge technologies of the Fourth Industrial Revolution (4IR). Lighthouses apply 4IR technologies such as artificial intelligence, 3D-printing and big data analytics to maximise efficiency and competitiveness at scale, transform business models and drive economic growth, while augmenting the workforce, protecting the environment, and contributing to a learning journey for all-sized manufacturers across all geographies and industries. The Global Lighthouse Network is a World Economic Forum project in collaboration with McKinsey & Co; factories and value chains that join the Network are designated by an independent panel of experts.

About Western Digital

Western Digital creates environments for data to thrive. As a leader in data infrastructure, the company is driving the innovation needed to help customers capture, preserve, access and transform an ever-increasing diversity of data. Everywhere data lives, from advanced data centers to mobile sensors to personal devices, our industry-leading solutions deliver the possibilities of data. Western Digital data-centric solutions are comprised of the Western Digital®, G-Technology™, SanDisk® and WD® brands.

About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube.

For media enquiries, please contact:

Norhizam Ibrahim (Mr.)
Email: [email protected] | DL: +603-2267 6611

Mustard Tree Communications PLT (on behalf of Western Digital, Batu Kawan, Malaysia)
Ray Chin / Kelly Lee / Shanty Dass / Jade Wong
6018 203 1004 / 6016 237 0681 / 6012 747 2814 / 6012 219 5289
[email protected]/ [email protected]/ [email protected]/ [email protected]

Western Digital WEF Lighthouse Network


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TAIYO YUDEN ANNOUNCES EXPANSION OF MULTILAYER CERAMIC CAPACITORS PRODUCTION IN SARAWAK

Construction project by Taiyo Yuden valued at RM680 million commences in September 2021  

Kuala Lumpur, 21 September 2021 – Taiyo Yuden Co. Ltd., listed on the Tokyo Stock Exchange, announced today that one of its subsidiaries, Taiyo Yuden (Sarawak) Sdn Bhd, is expanding its multilayer ceramic capacitors manufacturing facility in Kuching as a strategic move to increase its production capacity in the ASEAN region. This marks another milestone for Malaysia as the preferred hub for global manufacturers and an ASEAN gateway.

The expansion of Taiyo Yuden’s facility in Sarawak was discussed during the Trade and Investment Mission (TIM) to Tokyo in April 2021 led by YB Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry.

“Taiyo Yuden’s decision to inject RM680 million capital investments for their new facility reflects booming investors’ confidence in our ecosystem’s readiness to support global production. This achievement demonstrates the success of the Government’s aggressive and effective strategies to welcome and facilitate high-quality FDIs. MIDA has been working closely with Taiyo Yuden in ensuring the smooth implementation of their expansion project that will generate an additional 2,000 job opportunities,” said Dato’ Seri Azmin.

Mr. Shinji Masuyama, Director and Executive Vice President of Taiyo Yuden said, “The construction of this new plant is an important investment agenda under the Group’s Medium-term Management Plan 2025. More than ever, we will strive continuously to develop as a business enterprise that is trustworthy to all the stakeholders, including our customers, local communities in Malaysia, and employees.”

Taiyo Yuden (Sarawak) is a production site for multilayer ceramic capacitors, which are essential components for the creation of miniature and high-performance electronic devices. Since 1994, the company has employed 4,600 personnel in their manufacturing plant.

The company foresees a higher demand for multilayer ceramic capacitors in the future due to the advancement of technologies in automobiles, electrical and electronics, 5G smartphones and communications infrastructure. 

The Kuching facility spanning over 36,500 square meters, is expected to be in operation by March 2023. It will include the usage of high-tech equipment with state-of-the-art features, support high-energy conservation and incorporate solar-powered roof, in line with ESG Goals. This bodes well with the National Investment Aspirations (NIA) crucial in revitalising Malaysia’s investment climate, attract high-quality investments and create high-income jobs.

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About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube.

About TAIYO YUDEN

Since Taiyo Yuden’s inception, we have achieved growth by undertaking the research, development, manufacture and sales of various types of electronic components. Our product lineup includes capacitors, as well as inductors and Film Bulk Acoustic Resonator (FBAR)/Surface Acoustic Wave (SAW) devices. The source of our strength comes from the undertaking of development starting from material development to product commercialisation. This approach enables us to continually provide products that respond closely to our customer needs in the markets we serve. We currently offer products used in such electronic devices, as smartphones and tablets. We also offer a wide range of fields such as automobile and IT infrastructure/industrial equipment, where the application of IT and electronics is accelerating. For more information, please visit https://www.yuden.co.jp/ap/ .

For media enquiries, please contact: 

Manjit Kaur Balkar Singh (Ms)

Email: [email protected] | DL: +603-2267 3509

Taiyo Yuden Announces Expansion Of Multilayer Ceramic Capacitors Production In Sarawak


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Kuala Lumpur, 15 September 2021 – The Malaysian Investment Development Authority (MIDA) and the Malaysia Semiconductor Industry Association (MSIA) hosted a webinar today on ‘Seizing the Next Wave of E&E Investment into Malaysia’. The webinar, which was broadcasted online, successfully attracted more than 350 participants, represented by manufacturers, service providers and potential investors.

Dato’ Seri Wong Siew Hai, President of MSIA welcomed the attendees and iterated that the webinar was important to emphasise that Malaysia is open-for-business, with continued and sustained discussions between the Government and electrical and electronics (E&E) companies to improve the ease of doing business in the country. This is part of the efforts to make Malaysia more competitive in the E&E sector and move up the global value chain.

Presently, Malaysia stands as a crucial global hub in the semiconductor global supply chain, with approximately seven (7) per cent of the total global semiconductor trade flowing through the nation. In 2020, the E&E exports recorded RM386 billion, accounting for 39.4 per cent of Malaysia’s total exports.

Mr. Arham Abdul Rahman, the Chief Executive Officer (CEO) of MIDA, in his Keynote Address highlighted the need for Malaysia to be in the forefront in seizing opportunities in the E&E, particularly the semiconductor segment. This is especially important as more global companies are seeking to capitalise on Malaysia to develop new technologies, venture into additional products and ramp up production capacities to meet the growing needs and demands of the industry.

“Malaysia welcomes investments of complex and high value-added products, intensification of R&D activities, adoption of digitalisation and new technologies. Malaysian companies are encouraged to participate in the greater E&E value chain, especially in closing the ecosystem gaps, such as in IC design, advanced IC packaging, engineering and testing services, as well as Electronic Manufacturing Services (EMS),” said Mr. Arham.

“Towards this, various stimulus packages, namely PENJANA were introduced to continue supporting new and existing industry players and promoting the development of industries in Malaysia. These massive allocations are necessary to help businesses and industries to retain workers, meet market demands and remain operational beyond the current economic climate. We are optimistic that these measures will solidify Malaysia’s position as a competitive and profitable investment destination in line with our National Investment Aspirations (NIA). In this regard, industry players are strongly urged to take the full advantage of all the packages available, particularly those offered through MIDA to facilitate investments and businesses.”

The webinar featured an expert forum between Mr. Arham; Mr. Gursharan Singh, Senior Vice President for Global Assembly and Test of Micron Technology; Mr. Ng Kok Tiong, Senior Vice President and Managing Director of Infineon Technologies Kulim Sdn. Bhd.; and Mr. Yogannaidu Sivanchalam, Country Managing Director of Texas Instruments Malaysia Sdn. Bhd. The panel was moderated by Dato’ P’ng Soo Hong, Vice President and Managing Director of Manufacturing Operations at First Solar Malaysia Sdn. Bhd.

Mr. Yogannaidu from Texas Instruments Malaysia remarked, “Given the long-term trend of semiconductors growth in electronics, and the fact that manufacturing is the main engine of Malaysia’s economic growth, the Government and industry players must seize this opportunity by improving Malaysia’s attractiveness as a global E&E investment destination.” Over its nearly 50-year history in Malaysia, Texas Instruments Malaysia has created thousands of jobs, including hiring graduates from local universities.

Drawing from Infineon’s 47 years in Malaysia, with activities comprising of wafer fabrication, assembly, test and R&D facilities, Mr. Ng Kok Tiong shared, “Malaysia has cost advantages and supportive economic environment, which continue to be very attractive for Infineon to expand its existing operations and R&D capabilities in new technologies. We are confident that our long-term presence will continue to position Malaysia in enhancing its global semiconductors supply chain hub.”

Mr. Gursharan Singh elaborated on Micron’s steady growth in Malaysia since 2018, “In the last decade, Malaysia has become critical to our global manufacturing footprint. Despite the pandemic, we have successfully established two facilities in two years in Seberang Perai (2019) and Batu Kawan (2020), Penang. With 99 per cent of our workforce recruited locally, Micron will continue to generate employment with our continued growth, and deeply engage in the communities where we operate.” Currently, with close to 4,000 team members, Micron, the global leader in memory and storage, plans to generate another 2,000 jobs over the next three (3) to four (4) years in Malaysia.

Companies interested to leverage Malaysia to establish their E&E operations may engage with MIDA’s E&E Division through www.mida.gov.my.

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About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube.

About MSIA

Malaysia Semiconductor Industry Association (MSIA) is an industry association which cover individuals and companies incorporated in Malaysia who are involved directly or related to Semiconductor Industry (Electronics and Systems), Semiconductor Industry supply chain, institutions providing significant related services to semiconductor industry such as engineering, finance, legal and those societies, associations, chambers and government – linked agencies. For more information, please visit http://www.msia.org.my.

For enquiries, please contact:

Azlina Hamdan (Ms.)
Email: [email protected] | DL: +603-2267 3791

Nur Aliah Manshor (Ms.)
Email: [email protected] | DL: +019-2844759

Malaysia Remains an Attractive Location For Semiconductor And E&E Companies


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MITI and MIDA Committed to Ensuring Success of National Investment Aspirations and Robust and Sustainable Economic Recovery

Malaysia achieved robust and impressive performance for the first half of 2021 with foreign direct investments (FDI) soaring by 223.1 per cent compared to 1H 2020, signaling the confidence of foreign investors in the country’s stable and conducive economic climate and business ecosystem. This augurs well for Malaysia’s path to vibrant and sustainable economic recovery.

The stellar performance also demonstrates that Malaysia’s strategy of positioning the country as an attractive investment destination of choice and a supply chain hub in ASEAN, particularly for manufacturing operations, is showing positive results. FDI drove the strong and vibrant performance of the manufacturing sector during the period, registering RM58.2 billion in approved investments. The remaining RM8.7 billion approved investments in this sector were from domestic sources.

In terms of total approved investments, Malaysia recorded RM107.5 billion of FDI and domestic direct investments (DDI) in the manufacturing, services and primary sectors, chalking up a massive jump of 69.8 per cent compared to the same period last year. Achieved amidst a very challenging global economic landscape, the investments involved 2,110 projects and are expected to generate 44,994 job opportunities in the country.

Leveraging on the positive progress on the National Recovery Plan (NRP), improvement in the overall public health situation, and gradual reopening of economic sectors, Malaysia continues to attract high-value and high-tech investments, bolstered by our capacity and capability in providing high-skilled talents and firm readiness in adopting advanced technology for value-added industries.

In tandem with our National Investment Aspirations (NIA), Malaysia consistently pursues more capital-intensive projects and those that support the development agenda of the nation, consistent with Environmental, Social and Governance (ESG) goals. This is reflected by the increasing number of capital-intensive projects approved by MIDA.
Simultaneously, there is an emphasis on creating jobs across a wide spectrum of skills for the rakyat. In this regard, the 367 manufacturing projects worth RM66.9 billion approved during the first half of 2021, will create 32,220 job opportunities in various positions and roles, leading on the path for high-value and skilled employment.

The workforce required for the approved investments include 1,367 managerial positions and 4,031 technical professionals such as engineers in the field of E&E, mechanical, chemical and other disciplines, reflecting the higher value chain transition of the manufacturing sector. The approved manufacturing projects will also require 4,144 skilled craftsmen. Meanwhile, domestic investments, leading in the services and primary sectors, totaled RM45.0 billion or 41.9% of the total approved investments.

Notable projects approved in 1H 2021 include Republic of Korea’s SK Nexilis project for a new copper foil manufacturing plant, Risen Energy’s proposed project to produce bi-facial technology solar products, and
OCIM’s proposed investment to expand the capacity of its solar grade polysilicon plant. These projects will not only further enhance Malaysia’s industry ecosystem but boost employment opportunities in the field of high-tech skills as well as enable local businesses to leverage on the global value chain.

Going forward, from the strategic vantage point of the NIA, we will continue to pursue high quality investments to bring value to the nation and people, not just in preserving jobs but in creating new high value-added employment. We are committed towards positioning Malaysia as the ideal partner for investors in the region, enhancing our economic complexity and propelling long term growth for Malaysia through the flow of sustainable quality investments in new and complex growth areas.

With the trajectory of Malaysia’s strong economic fundamentals, positive factors underpinning growth prospect as well as expected stronger external demand for our products, the Government is fully committed to ensuring robust and sustainable recovery, equitable economic growth and shared prosperity for Malaysia.

Dato’ Seri Mohamed Azmin Ali
Senior Minister
Minister of International Trade and Industry
13 September 2021

APPENDIX

Approved Investments in Malaysia Increased by more than 69 %, to Record RM107.5 Billion in the First Half of 2021

During the first half of 2021, Malaysia attracted a total of RM107.5 billion of foreign investments (FDI) and expanded domestic investments (DDI) approved in the manufacturing, services and primary sectors, representing an increase of 69.8 per cent compared to the same period of last year. The approved investments involved 2,110 projects and are
expected to generate 44,994 job opportunities in the country.

More than 58.1 per cent of the approved investments were from foreign sources, valued at RM62.5 billion. Singapore, Republic of Korea and the Netherlands were the top three foreign investment sources accounting for nearly 90 per cent or RM54.9 billion of the total approved FDI in the country.

Meanwhile, domestic investments totaled RM45.0 billion or 41.9% of the total approved investments. While FDI dominated the manufacturing sector, investments from Malaysian companies led in the services and primary sectors.

Five states – Kedah, Selangor, W.P. Kuala Lumpur, Sarawak and Johor – contributed RM85.0 billion (79.0%) to the total approved investments with a potential to create 31,395 jobs.

Manufacturing Sector

The manufacturing sector accounted for the largest share of the total investments in 1H 2021, amounting to RM66.9 billion (62.2%), followed by the services sector with RM34.1 billion (31.7%) and the primary sector with RM6.5 billion (6.1%).

A total of 367 manufacturing projects worth RM66.9 billion were approved in first six months of 2021, compared to RM36.4 billion in the same period last year. In terms of top-performing industries in 1H 2021, the electrical 5 and electronics (E&E) (RM47.1 billion), fabricated metal products (RM5.1 billion), chemicals and chemical products (RM3.8 billion), food manufacturing (RM3.7 billion) and rubber products (RM3.6 billion) made up 94.6 per cent of total approved investments for this sector.

The workforce required for the approved investments include 1,367 managerial positions and 4,031 technical professionals such as engineers in the field of E&E, mechanical, chemical and other disciplines, reflecting the higher value chain transition of the manufacturing sector. The approved manufacturing projects will also require 4,144 skilled craftsmen such as plant maintenance supervisors, tools and die makers, machinists, IT personnel, quality controllers, electricians and welders. The capital investment per employee (CIPE) ratio of the projects approved in 1H 2021
increased to RM2,077,245 from RM1,333,559 during the same period last year.

FDI drove the robust performance of the manufacturing sector during the period, registering RM58.2 billion in approved investments, soaring by 223.1 per cent compared to 1H 2020. The remaining RM8.7 billion approved investments in the sector were from domestic sources.

Notable projects approved in 1H 2021 include Republic of Korea’s SK Nexilis project for a new copper foil manufacturing plant, Risen Energy’s proposed project to produce bi-facial technology solar products in Malaysia, and OCIM’s proposed investment to expand the capacity of its solar grade polysilicon plant in Samalaju, Sarawak.

Services Sector

A total of 1,717 services projects were approved in 1H 2021. These projects are expected to create more than 12,400 job opportunities. The total investments approved in the services sector recorded an increase of nearly 30 per cent from the approvals recorded for the same period in 2020.

Domestic investments made up the larger portion, recording RM31.9 billion or 93.6 per cent of the total approved investments while the remainder, RM2.2 billion were from foreign sources.

The real estate sub-sector remains the largest contributor with RM14.9 billion, recording a 20.6 per cent increase from the corresponding period last year. Following the easing of restrictions on economic activities, the global establishments, support services, transport services, distributive trade, hotel and tourism, financial services and education services subsectors have also recorded increases during the period.

Primary Sector

The primary sector contributed RM6.5 billion or 6.1 per cent to the total approved projects in the first half of 2021. The mining subsector continued to lead with approved investments of RM6.4 billion, followed by plantation and commodities with RM79.8 million and agriculture with RM11.5 million. These investments are expected to create 278 job opportunities.

Investments from domestic sources took the lead in the sector with a total amount of RM4.4 billion or 66.9 per cent, while foreign investments contributed RM2.1 billion or 33.1 per cent.

Massive Jump in Approved Investments in Malaysia Signals Confidence of Investors


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