INVESTMENT and economic opportunities are set to grow in Kota Tinggi district, thanks to the Integrated Sustainable Palm Oil Complex (iSPOC) project led by Johor Plantations Group Bhd.

Johor Mentri Besar Datuk Onn Hafiz Ghazi said the project in Tanjung Sedili was expected to create 250 jobs with a focus on developing local talents.

“The project will also drive research and development through its Centre of Excellence,” he said during the groundbreaking ceremony at Johor Plantations’ Pasir Gogok estate.

Onn Hafiz said the project would spur industries such as food production and green technologies, and was regarded as a key enabler of the Maju Johor 2030 vision to foster sustainable economic development.

“This project reflects the company’s leadership in sustainable palm oil and supports our vision for the new economy.”

Onn Hafiz said job creation, economic activity and cultivation of a skilled workforce would support Johor’s industrial growth.

The complex, he said, was among core projects in the company’s 10-year roadmap to drive strategy in expanding downstream activities into speciality oils and fats production.

He added that iSPOC would build on the success of Johor Plantations’ Smallholder Inclusion Programme that benefitted 289 state smallholders by improving their access to Roundtable on Sustainable Palm Oil certification and market opportunities.

Meanwhile, Johor Plantations chairman Tan Sri Dr Ismail Bakar said the complex was scheduled for commissioning in the third quarter of 2026.

The state-of-the art integrated complex houses a speciality oils and fats refinery, a palm oil mill, a palm kernel plant, an animal feed mill and a research and development centre.

The iSPOC is the first facility of its kind to embrace a circular economy model.

It will maximise the use of resource by creating renewable energy from biomass and biogas that are by-products of the palm oil mill.

The project is a joint venture with Fuji Oil Asia Pte Ltd.

Source: The Star

Sedili palm oil complex to spur sustainable growth

Wentel Engineering Holdings Bhd’s market share in Malaysia will largely be in the electronics and electrical (E&E) sector given the presence of numerous semiconductor and electronics manufacturers in the country.

CEO Chuah Chong Syn said the company is located in Johor and initially engaged in this segment through the Singapore contract manufacturing industry.

“Malaysia’s focus is on electronics and precision engineering, and Wentel Engineering is part of this sector, benefiting from the opportunities it presents. We are aiming for organic growth through our customers. This presents a chance to expand into industries we previously did not serve, particularly with the opportunity to transfer production from China to Malaysia and have it manufactured by Wentel Engineering. There are still many opportunities in Singapore as well,” he told reporters at a media briefing today.

Wentel Engineering supplies metal parts, either as individual items or in semi-finished assemblies.

In 2020, during the pandemic, the company saw an opportunity when demand for Covid testing machines, particularly PCR machines for swab tests, surged.

“This led us to enter the medical field, starting with the production of these machines. Since then, our customers have continued to engage us for other projects, including transferring products from Europe to Singapore and new R&D initiatives.

“Most of the products we produce are for laboratory tests, such as blood typing and analysis. Yes, we are still active in this business, focusing on laboratory applications,” Chuah said.

On the security segment, Chuah said as governments increase security measures, there will be a higher demand, particularly for technology such as scanning machines and these will be used by end users such as airports and ports.

“As a result, our customers will need to design new machines to meet these requirements and help local governments compete globally. This demand for security machines contributes to our organic growth.”

On the earnings front, Wentel Engineering’s revenue for the fourth quarter ended Dec 31, 2024 (FY24) rose by 8.68% to RM28.94 million, compared to RM26.62 million in the same quarter of the previous year. The growth was primarily driven by higher demand for metal fabrication, supported by a strong recovery in the semiconductor market.

Meanwhile, the group’s profit before tax (PBT) surged by 93.79% to RM8.43 million, up from RM4.35 million in the corresponding quarter of 2023. The significant increase in PBT was attributed to higher revenue and an improved gross profit margin.

For FY24, the group recorded revenue of RM112.43 million, a 13.85% increase from RM98.75 million in the same period of 2023. This growth was primarily driven by higher demand for semi-finished metal products and metal part fabrication, supported by the strong recovery of the semiconductor market.

The group’s PBT rose by 10.63% to RM20.82 million, compared to RM18.82 million in the previous year’s corresponding period. This increase was in line with higher revenue, increased interest income from IPO proceeds placed in fixed deposits, and an improved gross profit margin.

The higher margin was attributed to a favorable product mix, with a greater proportion of high-margin products ordered by customers.

In a filing to Bursa Malaysia, Wentel Engineering said the global trade rebounded in the first half of 2024, rising 2.3% year-on-year, with moderate growth expected through 2025. This recovery follows a 2023 slump caused by high inflation and rising interest rates.

The World Trade Organization forecasts a 2.7% increase in global trade volume for 2024 and 3% for 2025, with gross domestic product growth steady at 2.7% in both years.

Source: The Sun

Wentel Engineering to ride on E&E opportunities, seeks organic growth

The government approved RM1.73 billion in investments for the pharmaceutical and medical devices sector in Malaysia between January and September last year.

Health Minister Datuk Seri Dr Dzulkefly Ahmad said the government is actively encouraging more international pharmaceutical companies to build drug manufacturing facilities in Malaysia.

One of the government’s efforts includes launching the Off-Take Plus Agreement Programme (PPO Plus) to ensure security in the supply of pharmaceutical products from local sources and to reduce costs, he said in a parliamentary written reply yesterday.

“During the tabling of the 2025 Budget on Oct 18, 2024, the prime minister announced that the government would implement an off-take or specific procurement policy for companies that make new domestic investments to manufacture pharmaceutical products and critical medical devices.

“The implementation of this programme is expected to begin in the second quarter of 2025,” he said.

Dzulkefly said the initiative was also meant to encourage technological transfers from international companies to Malaysians.

The programme prioritises local companies that offer pharmaceutical products or medical devices which have not been manufactured in Malaysia, which comes with the government’s commitment to procure 50 per cent of the product or any other amount it deems fit.

Additionally, companies dealing with drugs listed under the National Essential Medicines List (NEML), which typically consists of basic drugs that are required for public health, are also given priority to participate in the programme.

Moreover, companies that manufacture products under the Control of Drugs and Cosmetics Regulations 1984 and the Industrial Coordination Act 1975 are also given priority.

“Selected companies for the PPO Plus programme will go through a few stages of committee evaluations and contracts will be finalised on companies that are successful,

“Contract extensions will be considered if the company demonstrates a high commitment to meet the domestic market demand in producing pharmaceutical products and medical devices and potentially to be exported overseas,” said Dzulkefly.

The Health Ministry is also planning to go on sourcing missions to countries that produce pharmaceutical products to attract more investments and strengthen the supply of medicine to Malaysia.

The emphasis, said Dzulkefly, was on generic medicines and the missions would begin this year.

He said the ministry plans to visit China, India and Brazil to diversify its source of medicine supply in Malaysia.

In response to a question by Syerleena Abdul Rashid (PH-Bukit Bendera), he said the sourcing missions will also promote Malaysia as an ideal investment destination.

This, he added, would be done via engagements with organisations, supply companies, and international medicine manufacturers.

“This will help expand the market — economy of scale — for pharmaceutical manufacturers in Asean and thus increase medicine supply self-reliance among regional countries.

“This effort is in line with the aspirations of the Asean Drug Security and Self-Reliance (ADSSR) goal led by Malaysia.

“This effort will also ensure access to safe, good quality, effective and affordable medication in Asean to achieve universal health coverage,” he said.

Source: NST

Govt approved RM1.73bil for pharmaceutical, medical device investments Jan-Sept 2024

Malaysia’s economy is deeply intertwined with global supply chains, with semiconductors and electrical components forming the backbone of its exports to the United States.

However, the looming threat of tariffs poses significant challenges, potentially disrupting this ecosystem. To safeguard its position in the semiconductor industry and strengthen its trade partnerships, Malaysia must take a strategic and forward-looking approach.

Total trade in goods between Malaysia and the United States amounted to US$80.2 billion, with Malaysia exporting US$52.5 billion worth of goods and importing US$27.7 billion.

Key Malaysian electronic exports to the US include integrated circuits, semiconductor devices, and broadcasting equipment. Given the scale of this trade relationship, any disruption caused by tariffs could have wide-ranging consequences.

President of the United States Donald Trump has argued that tariffs on US imports are necessary to revive domestic manufacturing. However, this strategy may not bode well for US companies operating in Malaysia. Semiconductor giants such as Intel, AMD, and Micron have invested billions in Malaysia’s semiconductor ecosystem and have built strong supply chain integration with local and Asean partners. Relocating these highly specialised operations is costly and disruptive, making an immediate exit unlikely.

If the US imposes tariffs, alternative locations offer limited advantages. Vietnam lacks the scale and advanced infrastructure for semiconductor manufacturing, while India remains a costly option as it is still developing its semiconductor ecosystem. Indonesia, though emerging as a potential player, faces significant hurdles before becoming a formidable force in the industry.

While the imposition of tariffs could hurt Malaysian semiconductor companies, it could also increase costs for US tech companies. Higher tariffs on Malaysian semiconductors and electronics would raise costs for US businesses relying on these components, affecting key sectors such as automotive, telecommunications, and defence. US firms may petition their government for exemptions, as they did with Chinese tariffs, to mitigate disruptions.

Malaysia must capitalise on this situation by moving up the semiconductor value chain to reduce its vulnerability to tariffs and trade disputes. Currently, the country is a key player in semiconductor assembly, testing, and packaging (ATP), but it lags behind in chip design, wafer fabrication, and advanced manufacturing. By focusing on these areas, Malaysia can enhance its competitiveness and secure its role in the global semiconductor landscape.

To achieve this, Malaysia must strengthen partnerships with semiconductor giants such as Intel, AMD, and Texas Instruments to establish chip design and R&D centres within the country. Offering tax incentives and grants to US semiconductor firms can encourage the development of next-generation AI, automotive, and 5G chips in Malaysia. Additionally, Malaysia should transition beyond traditional assembly and testing towards advanced packaging to increase value addition and attract investment in emerging fields such as silicon photonics, which is critical for AI chips and high-speed data centres.

Malaysia should also position itself as a semiconductor resilience hub by offering special incentives for US semiconductor firms to expand their presence rather than relocate elsewhere. Establishing Special Economic Zones (SEZs) for semiconductor manufacturing, with tax breaks and streamlined approvals, can further strengthen Malaysia’s appeal.

A robust talent pipeline is equally crucial. The government must strengthen local semiconductor engineering programmes in partnership with US universities and tech companies while providing scholarships for students to specialise in chip design, fabrication, and AI-driven semiconductors. Encouraging Malaysian semiconductor startups to collaborate with US firms on AI chips, automotive chips, and 6G technologies can further drive innovation. Government grants and venture funding can support these initiatives, fostering a strong domestic semiconductor ecosystem.

While Malaysia deepens its collaboration with the US, it must also maintain a balanced approach in its relations with China. Allowing Chinese companies to invest in packaging and testing while keeping core chip design and fabrication aligned with the US will enable Malaysia to navigate geopolitical tensions effectively. Strengthening regional ties through a semiconductor alliance with Singapore, Vietnam, and Indonesia can also position Malaysia as a key player serving both the US and Chinese markets.

As Malaysia navigates the shifting dynamics of global trade, decisive action is necessary to secure its semiconductor industry’s future. By advancing in the value chain, strengthening ties with US tech giants, and investing in R&D and advanced manufacturing, Malaysia can mitigate the impact of tariffs while enhancing its long-term competitiveness. At the same time, balancing relations with China will be essential to maintaining its status as a trusted global semiconductor hub. By positioning itself as a resilient, high-value semiconductor player, Malaysia can turn these challenges into opportunities and reinforce its role in the global supply chain.

*The writer holds an MBA from the University of Strathclyde in the UK awarded through the prestigious British Chevening Scholarship. With extensive experience in the financial markets and a robust background in management education, he has also served at a prominent think tank.

Source: NST

Malaysia’s semiconductor strategy in a shifting global trade landscape

The Malaysian government’s US$250 million (RM1.11 billion) partnership with leading semiconductor design firm Arm Holdings plc will usher in Malaysia’s second semiconductor wave, said Prime Minister Datuk Seri Anwar Ibrahim.

Following decades of being an established back-end player in chip testing and assembly, Anwar said Malaysia eyes a leap to the front-end of the supply chain by developing its own chip designing capabilities with the help of SoftBank Group Corp-owned Arm.

“Malaysia’s collaboration with Arm represents the start of the second semiconductor wave. This marks a fundamental shift in our approach to semiconductors and technology that will define our future,” Anwar said in his keynote address at Malaysia’s Silicon Vision launch ceremony on Wednesday.

“Through this comprehensive partnership with Arm, we have conceived one of the most ambitious technological plans Malaysia has ever seen to pioneer ‘made by Malaysia’ AI (artificial intelligence) chips. These chips will be designed, manufactured, tested and assembled here, and sold to the rest of the world,” he added.

Under the deal, Arm will provide Malaysia with intellectual property (IP) licences and compute subsystems (CSS) for RM1.11 billion, to be paid over ten years. In addition, Arm will collect royalties on chips sold. Details of the royalty were not disclosed.

Anwar said the partnership comprises three key features, which are the establishment of a comprehensive training programme to develop 10,000 integrated circuit (IC) design engineers, providing selected Malaysian companies with privileged access to Arm’s cutting-edge technology and IP portfolio, and facilitating the development of locally designed semiconductor products.

The prime minister noted that Arm will also establish its first office in Asean in Kuala Lumpur.

Building on Malaysia’s decades-long semiconductor experience with Arm’s expertise

Speaking on why Malaysia was selected as Arm’s partner, the UK-firm’s chief executive officer Rene Haas highlighted Malaysia’s decades-long experience in the semiconductor industry.

He noted that with Arm’s expertise in the chip design space, Malaysia can leverage the firm’s expertise to develop the country’s own chip design ecosystem.

“We are in an age of innovation with the advent of AI, which makes this partnership and this timing so perfect because Arm’s computing hardware is going to be needed in all [of] these devices,” he said. 

Haas underlined that AI-powered chips will not only be used in data centres for large language models, but are required for every device that requires the use of AI.

“We have the world’s largest software developer system of over 20 million developers, and it’s growing. This ecosystem that we have, perfectly places us to partner with the government of Malaysia,” he said.

According to Haas, Arm-designed chips are nearly all-present in the modern world. He noted that the company has shipped over 300 billion chips since its founding in 1995 and today, 99% of all individuals are connected to an Arm chip-powered device.

“The future of AI is going to run on Arm, and it (the future of AI) is going to run here (Malaysia). We are thrilled and I applaud the vision of the Malaysian government — [its] ambition and courage to embark on such a programme,” Haas said.

“I know it was not easy, but we are not only exceptionally grateful, but we won’t let you down. This is going to be an extremely exciting 10 years and more,” he added.

Prioritising local players

Minister of Economy Datuk Seri Rafizi Ramli said for each of Arm’s CSS, the government is looking to build a complete supply chain in advanced industries, such as AI data servers, autonomous vehicles, internet of things (IoT), and robotics.

“An ecosystem perspective also means that we will prioritise local players as the first resort for every part of the supply chain,” Rafizi said in his opening remarks.  

“For this to work, we have to put in place a collaboration structure with advanced foreign firms, proposed technology transfer and localisation requirements, so that we could uplift our local players in a realistic and holistic way,” he added.

Rafizi also noted that outsourced semiconductor assembly and testing captures 5% to 10% of semiconductor supply chain value, while integrated chip design accounts for 60%.

Compared to his previously expressed timeline of five to ten years for Malaysia to begin producing its own chips, Rafizi has brought the projection earlier to five to seven years.

Source: The Edge Malaysia

Anwar: RM1.1b partnership with UK’s Arm Holdings marks beginning of Malaysia’s second semiconductor wave

Malaysia will invest US$250 million (US$1= RM4.44) over the next decade, leveraging on Arm Holdings Plc’s expertise, to create a new ecosystem in the artificial intelligence (AI) and semiconductor industry through a strategic collaboration with the United Kingdom-based company.

Prime Minister Datuk Seri Anwar Ibrahim is expected to launch the strategic collaboration later today.

This move will kick off the journey towards the first Malaysia-based chip while providing a platform for local players to gain access to the semiconductor and software design firm’s intellectual property (IP) network, as well as transfer of technology and know-how.

According to a Bloomberg news report, Malaysia is aiming to create as many as 10 chip companies with total annual revenue of US$20 billion.

The report said Malaysia is already a key hub for chip testing and packaging, but the country has yet to make a meaningful foray into chip design.

Arm Holdings has to date issued 6,800 patents while 2,700 applications are still pending, and more than 300 billion Arm-based chips have been sold worldwide.

Confirming the matter, the Prime Minister’s senior press secretary Tunku Nashrul Abaidah said that through the collaboration, Malaysia will make history in the global technology industry and witness a transformation in its AI and semiconductor landscape.

Tunku Nashrul, in the Prime Minister’s Office (PMO) daily briefing streamed live on Anwar’s official Facebook page as well as PMO Malaysia’s Facebook page, said Malaysia will be the first country in this region where the company will set up its office.

“The Prime Minister views this collaboration as a strategic step to strengthen the country’s technology ecosystem, positioning Malaysia as a key player in the global technology arena.

“With this collaboration in place, Malaysia moves ahead of other countries by becoming the company’s first technology ecosystem partner, making it a key hub in ASEAN,” he said.

Tunku Nashrul said this MADANI Government initiative is implemented by the Investment, Trade and Industry Ministry, the Finance Ministry and the Economy Ministry.

He said this partnership will enable Malaysian companies to leverage advanced technology and expertise in semiconductors, as well as train the local skilled workers.

“This will accelerate the development of a high-skilled workforce and strengthen the competitiveness of the nation’s technology industry,” he said.

He added that the launch and signing of this strategic collaboration is a testament to global investors’ confidence in the MADANI Government’s policies and continued commitment in having high-value collaborations with Malaysia.

Source: Bernama

Malaysia to invest US$250m over next decade via strategic collaboration with Arm Holdings

Malaysia’s comprehensive partnership with ARM Holdings Plc represents the start of a second semiconductor wave, marking a fundamental shift in the country’s approach to semiconductors and technology, which will shape our future, said Prime Minister Datuk Seri Anwar Ibrahim.

“We have conceived one of the most ambitious technological plans Malaysia has ever seen: to pioneer ‘Made by Malaysia’ AI chips.

“These chips will be designed, manufactured, tested and assembled here, and sold to the rest of the world,” he said in his keynote address at the Strategic Collaboration in Semiconductor Industry, here today.

Anwar said the partnership has three key features: firstly, it aims to establish comprehensive training programmes for 10,000 integrated circuit (IC) design engineers, thereby creating a robust talent pipeline for the semiconductor industry. 

Second, it would provide selected Malaysian companies with privileged access to ARM’s cutting-edge technology and internet protocol (IP) portfolio. 

Third, the partnership would facilitate the development of locally designed semiconductor products, advancing the nation’s goal of producing more advanced chips in Malaysia.

“Beyond offering state-of-the-art technologies that cover all parts of semiconductor design, Arm is also establishing its first ASEAN office in Kuala Lumpur, to expand outreach to ASEAN, Australia, and New Zealand markets.

“I am thankful for the trust that the Arm senior management has placed in our country,” Anwar said.

The prime minister highlighted that the partnership was made possible by a cross-ministerial effort involving the Ministry of International Trade and Industry (MITI), the Economic Ministry, and the Finance Ministry.

The prime minister also emphasised the need for the entire government machinery, universities, research centres, industries, and science agencies to be fully mobilised to meet the needs of the semiconductor industry.

This is to ensure that the younger generation receives adequate training in terms of qualifications, capabilities, and skills so they can benefit from the development of giant semiconductor companies such as Arm.

“With Arm, a giant in the AI semiconductor field, and as mentioned as the catalyst for change, I believe Malaysia is in the right position.

“I want to stress that the preparations are not only in terms of the ecosystem but also the training and all necessary resources should be mobilised to implement this programme,” he said.

Source: Bernama

Anwar: Malaysia’s collaboration with ARM represents start of second semiconductor wave

Local solar industry players should explore alternative markets, particularly in ASEAN, to reduce reliance on the United States (US), the Ministry of Investment, Trade and Industry (MITI) said.

The US government has imposed tariffs on solar panel imports from four Southeast Asian countries, including Malaysia.

MITI said it is directly involved, on behalf of the Malaysian government, in the US countervailing and anti-dumping investigation into the matter.

“MITI is committed to defending Malaysia’s solar industry against US trade remedy actions by refuting unfounded allegations and providing views and feedback based on stakeholder input,“ the ministry said in an oral reply posted on Parliament’s official website last night.

The response was to a question from Datuk Seri Wee Ka Siong (BN-Ayer Hitam) on MITI’s stance regarding the tariffs and its readiness to address their impact on the country’s green energy sector.

MITI said it has also emphasised to the US government that Malaysia’s investment incentive programmes comply with the World Trade Organisation (WTO) Agreement on Subsidies and Countervailing Measures (WTO ASCM).

The ministry added that Malaysia’s solar industry has not benefited from the alleged programmes said to have harmed the US solar sector.

“This is to ensure that the cooperative relationship among ASEAN solar panel manufacturers strengthens the supply chain and collectively addresses these challenges.

“Encouraging investment in research and development related to green technology will also position Malaysia as a manufacturer of high-quality solar panels and green technology equipment, supporting its goal of becoming a regional green technology hub,“ it said.

Source: Bernama

MITI urges solar industry to tap ASEAN markets amid US tariff

Halal Malaysia (HALMAS)-certified halal industrial parks recorded cumulative investments of RM16.75 billion for the 2012-2024 period, according to the Ministry of Investment, Trade, and Industry (MITI). MITI Deputy Minister Liew Chin Tong said 14 HALMAS industrial parks have been set up nationwide, and of the total 5,484.74 hectares (ha) designated for trade and investment activities, 841.18 ha or 15.3 per cent has been successfully developed.

There are 361 companies, comprising 51 multinational corporations and 310 small and medium enterprises (SMEs), which are involved in segments ranging from food and beverages to cosmetics and personal care, he said during a question-and-answer session in the Dewan Rakyat today.

He was responding to a question from Yusuf Abd Wahab (GPS-Tanjong Manis) who asked about the ministry’s plans to assist the Sarawak government in promoting the Tanjung Manis Halal Hub internationally.

Liew said that HDC, as the responsible agency under MITI, is conducting a study to improve the HALMAS framework, which covers the Tanjung Manis Halal Hub.

“A dedicated study on the HALMAS framework development is being carried out, assisted by a private consulting firm to identify challenges as well as actual findings from industry players. It is expected to be fully completed by the first quarter of 2025,” he said.

The HALMAS framework also covers the operational method, governance mechanism, and relevant incentives.

He said that as part of efforts to position Malaysia as a global halal hub, the halal industry value or supply chain needs to be strengthened by emphasising the role of halal industrial parks to make them more industry-friendly.

“This effort involves four main actions: enhancing activities to promote HALMAS industrial parks as investment destinations, creating innovative support and facilitation services, improving shared services, and promoting business integration through digitalisation platforms,” he said.

Meanwhile, Liew said, the Tanjung Manis Halal Hub has recorded investments amounting to RM18 million, involving a foreign company and two local companies which are subsidiaries of the state government.

Of the hub’s 4,040.38 ha, 197.16 ha has been developed for basic infrastructure facilities, agricultural activities such as pineapple planting, and aquaculture activities such as shrimp farming.

Source: Bernama

HALMAS-status Halal Parks RecordRM16.75 Bln Investments In 2012-2024Period — MITI

The Investment, Trade and Industry Ministry (Miti), through the Malaysian Investment Development Authority (Mida), will continue advancing industrial reform policies to enhance Malaysia’s appeal as a prime investment destination.

Its minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Southeast Asia has attracted investments across various sectors, including automotive, electronics, mining, and services.

In the third quarter of 2024, Malaysia, along with Indonesia, the Philippines, Thailand, and Vietnam, experienced an increase in foreign direct investment (FDI) inflows.

Tengku Zafrul noted the importance of patience in building a strong industrial base, stating that such a foundation cannot be established overnight.

“To that end, Miti through the New Industrial Master Plan (NIMP) is also prioritising tech- and knowledge-driven growth by attracting the right investments, promoting more research and development (R&D) in Malaysia, and deepening our collaboration with global partners,” he said at Betamek Bhd’s launch of its R&D centre here today.

Tengku Zafrul said in line with Malaysia’s industrial plan’s objectives, various initiatives have been implemented to position the country as a key player in the global supply chain for advanced industries.

“Our goal is clear – to develop a more vibrant, resilient and future-ready Malaysian economy by 2030,” he added.

Betamek operates as an original design manufacturer (ODM) and offers electronics manufacturing services (EMS) specifically for the automotive industry.

The opening of the new R&D centre marks a significant milestone in the company’s commitment to enhancing local innovation and advancing next-generation automotive technology.  

Its chairman Ahmad Subri Abdullah stated that the R&D centre will be instrumental in developing advanced driver assistance systems, vehicle connectivity solutions, and smart cockpit technologies.

“The facility is expected to enhance Malaysia’s ability to develop homegrown automotive innovations, ensuring local players remain competitive in a rapidly evolving global market.

“With this new initiative, Betamek reinforces its role as an industry leader in automotive technology, driving innovation and setting new benchmarks for the future of mobility in Malaysia and beyond,” he added.

Ahmad Subri said the launch is not only a significant milestone for Betamek but also a bold step in Malaysia’s progress toward becoming a leader in automotive technology.

Source: NST

MITI advances industrial reforms to attract investment

Sarawak is exploring the development of an aerospace industrial park to attract investments and foster industry collaboration, says Tan Sri Abang Johari Openg.

The Sarawak Premier said the proposed park would position the state as a hub for high-value aerospace component production and research.

“The aerospace sector is taking off in Asean and Sarawak is ready to be a key hub in this high-growth industry, capitalising on its strategic location and commitment to high-tech innovation.

“Our plans to develop an aerospace manufacturing and maintenance ecosystem are attracting investments in high-value aerospace components, aircraft maintenance, and research in sustainable aviation fuels,” he said in his opening keynote address at the Asean Sarawak Business and Economic Forum here on Friday (Feb 28).

The one-day forum was organised by KSI Strategic Institute for Asia Pacific, the Asean Economic Club and Asean Business Club.

Abang Johari said Sarawak had already established an Aerospace Academy at the Centre for Technology Excellence Sarawak (Centexs) in Lundu.

Describing it as a game changer, he said it would prepare Sarawak’s workforce for aerospace engineering, drone technology and satellite manufacturing to meet the demands of the future.

The Premier also said Sarawak was emerging as an investment gateway, particularly in strategic infrastructure development.

He said the upcoming Tanjung Embang deep-sea port would enhance regional trade connectivity, while the development of the new Kuching International Airport in

adjacent to it would position Sarawak as a major integrated logistics hub for Asean.

“For investors, Sarawak is the perfect entry point into Asean. We are providing an ideal environment for companies looking to expand into the region,” he said.

Abang Johari noted that Sarawak approved RM13.4bil in new investments last year in sectors such as renewable energy, manufacturing and high-tech industries.

He said the state’s acquisition of a 31.25% stake in Affin Bank Berhad further strengthened its financial ecosystem to support businesses and SMEs with improved access to capital, especially for the upcoming investments in the new airport and deep-sea port development in the next five years.

“To businesses, investors, and policymakers, Sarawak is open for business.

“We are not just offering opportunities but a clear, stable and growth-driven environment where investments flourish.

“Whether in hydrogen energy, AI-driven industries or high-value manufacturing, Sarawak is the launchpad for Asean’s future,” he added.

Abang Johari later received the 2024 World Outstanding Muslim Leader of the Year award from the World Muslim Leadership Forum during the opening ceremony.

The award recognises his leadership, dedication and contributions to economic progress, social harmony and Sarawak’s global standing.

It also acknowledges his commitment to sustainability, digital transformation and inclusive growth, making Sarawak a model of prosperity in Asean and beyond.

It was presented to him by World Muslim Leadership Forum chairman Datuk Seri Mohamed Iqbal Rawther and Standard Chartered Bank Malaysia chief executive officer Mak Joon Nien.

Source: The Star

Sarawak mulling aerospace industrial park, says Premier

Melaka has allocated RM227.8 million to develop the German Technology Park (GTP) on a 169.42-hectare site in Bandar Hijau, Mukim Ayer Panas. 

Chief Minister Datuk Seri Ab Rauf Yusoh said the project, to be developed in two phases, would accommodate 20 to 30 investor companies, particularly local firms, and contribute to the state’s sustainable economic growth. 

“This project will be implemented in two phases. The first phase includes the development of industrial land lots, commercial premises, leisure centres, and worker dormitories, expected to be completed in 2027. 

“The second phase will complete the GTP with additional industrial lots, business complexes, and logistics hubs to support industry needs,” he told reporters after officiating the GTP groundbreaking ceremony here on Friday.

Also present was Deputy Exco for Investment, Industry, and Technical and Vocational Development (TVET) Datuk Khaidhirah Abu Zahar. 

Ab Rauf said the GTP would focus on research and development-based industries and serve as a key platform for innovation and technology in Melaka. 

He said the project aligns with the federal government’s ambition to position Malaysia as a high-tech and sustainable industrial hub by 2030. 

“The GTP is also expected to be a major catalyst for investment inflows and industrial sector growth, strengthening the socio-economic ecosystem and establishing Melaka as a prime destination for high-impact industrial investments. 

“More than 10,000 job opportunities are expected to be created, helping Melaka build a highly skilled local workforce,” he said. 

Ab Rauf added that the state government remains committed to attracting future investments by developing new industrial zones to draw investors from diverse sectors. 

“Alhamdulillah, Melaka secured RM8.18 billion in approved investments last year, RM2.2 billion higher than in 2023. 

“This increase reflects the rapid growth of Melaka’s investment sector and the continued confidence of investors,” he said. 

Source: Bernama

Melaka CM says RM227.8m set aside to develop German Technology Park

Sabah reached another milestone when Sabah Energy Corporation Sdn Bhd (SEC) signed a deal with PETRONAS to supply natural gas valued around RM1bil annually to Esteel Enterprise Sabah Sdn Bhd.

The agreement will see the wholly-owned state government-linked company supplying 150 million standard cubic feet per day (MMscfd) of natural gas, 100 MMscfd for manufacturing and 50 MMscfd for power generation to the green steel company.

“This agreement marks a significant step towards Sabah’s long-term development goals, promoting industrial growth and energy security and creating new opportunities to drive Sabah’s progress,” said Chief Minister Datuk Seri Hajiji Noor.

“We look forward to further collaboration with PETRONAS, taking into account the best interest of Sabah,” he said after witnessing the exchange of agreements between SEC and Petronas as well as SEC and Esteel at Menara Kinabalu here, Friday.

He said the state was also ready to cater to the growing industrial needs and investments and had put in place plans to improve infrastructure and facilities to complement these initiatives.

In the agreement between SEC and PETRONAS, the national petroleum company would supply an additional 104 MMscfd of natural gas to SEC to support Sabah’s industrial and energy needs.

With the increased supply of natural gas, PETRONAS is now supplying a total of 370MMscfd to SEC.

Representing PETRONAS was Senior General Manager of Malaysia Petroleum Management’s Integrated Hydrocarbon Management, Anuar Ismail, while chief executive officer, Datuk Adzmir Abdul Rahman represented the SEC.

Commenting on the agreement, senior vice president of MPM, Datuk Bacho Pilong said it underscored Petronas unwavering commitment to providing reliable energy solutions that contribute to Sabah’s growth while supporting more sustainable energy use.

Committed to best industrial practices, SEC maintains a 98% gas delivery efficiency uptime and continuously enhances its technical capabilities and operational efficiencies to drive growth in the energy sector.

Expected to be operational by the fourth quarter of 2027 on a 180-hectare site, phase 1 of Esteel’s green steel plant, with an investment of USD1.93bil (RM8.92bil), would create 2,795 direct job opportunities and produce 2.5 million tonnes of cleaner hot briquetted iron.

The three-phased project brings in an estimated USD4.39bil (RM19.6bil) investment.

The plant opted for natural gas as a reducing agent instead of coke and coal, reducing carbon emissions by 70% and making it low carbon, efficient, and environmentally friendly.

Earlier, Hajiji also said that this marked Sabah’s confidence in the green steel project, which is among investments that represented the foundation of the state’s economic growth and development strategy.

Source: The Star

Sabah inks RM1bil gas supply deal to boost green steel industry

The Perak government has expressed its hope that the Kerian Integrated Green Industrial Park (KIGIP) development can be completed within the stipulated timeframe, by the end of 2028.

Menteri Besar Datuk Saarani Mohamad said this while acknowledging several challenges facing the implementation of the project, particularly the need to reclaim swampy land in the area.

“And recently I was informed that they (developer) will also collaborate with Gamuda Berhad which has expertise in land reclamation techniques, including water drainage methods similar to those used in the Netherlands,“ he told reporters after opening the Green Excel Manufacturing Sdn Bhd factory in Kamunting near here today.

Saarani expressed confidence that this collaboration would help resolve the swamp issue and accelerate the land reclamation process for the project.

According to Saarani, the KIGIP project is under the supervision and monitoring of the Ministry of Investment, Trade and Industry (MITI) and the state government has facilitated the process in terms of land and the approval of Planning Permission (KM).

Saarani said it was now up to SD Guthrie Berhad to accelerate the project’s progress, as Prime Minister Datuk Seri Anwar Ibrahim has emphasised that it must be completed by the end of 2028.

“This means they need to expedite the process, regardless of the challenges, they must move quickly. By 2028, the project should be completed, and in 2029, it will open to investors,” he said.

In another development, he expressed hope that the water transfer from Perak River would involve a northern water treatment plant as the transferred water is not only for agriculture and supplying Penang, but also crucial for KIGIP.

This is because factories related to the electrical and electronic (E&E) sector need water resources, he added.

Source: Bernama

Perak wants KIGIP completed by 2028 – Saarani

A RENOWNED brand has opened its first global halal food hub in Johor catering to growing worldwide demand for quality halal bakery products.

The move also aims to strengthen the supply chain of Paris Baguette, owned by South Korean food and confectionery conglomerate SPC Group.

The opening of the facility was attended by Johor Mentri Besar Datuk Onn Hafiz Ghazi, South Korea ambassador to Malaysia Yeo Seung Bae and SPC Group chairman Hur Young-in.

Named the Paris Baguette Regional Halal Food Hub, the new facility reflects a commitment towards international standards in hygiene, safety and quality.

Malaysia’s halal certification process, recognised as one of the most stringent in the world, underscores SPC Group’s dedication towards the highest standards in food production.

“Food is more than just what we eat – it is a way to share culture, identity and traditions.

“Today’s grand opening is more than just the expansion of our presence.

“It symbolises our commitment to building strong connections with local communities, creating job opportunities and fostering collaboration,” said Young-in.

Onn Hafiz pointed out the facility’s positive socio-economic impact, “This hub will strengthen Johor’s role within the Johorsingapore Special Economic Zone (JS-SEZ) and provide employment opportunities, contribute to the local economy and enhance Malaysia’s reputation as a global leader in halal food production.”

Malaysian Investment Development authority (Mida) chief executive officer Datuk Sikh Shamsul Ibrahim Sikh abdul Majid said the facility cemented Malaysia’s status as the epicentre of global halal food manufacturing and exports.

“SPC Group’s investment endorses Malaysia’s world-class halal ecosystem and its role in fuelling global demand for halal-certified products.

“This cutting-edge hub strengthens Paris Baguette’s foothold in Malaysia and serves as a springboard for its expansion across South-east asia, the Middle East and australia.

“Backed by JS-SEZ and the Invest Malaysia Facilitation Centre, Malaysia continues to stand as the preferred destination for halal-focused investments.

“This drives economic growth, job creation and innovation,” he said.

The facility represents a Rm260mil investment and includes seven advanced production lines capable of producing 100 million bakery products per year.

Thanks to the JS-SEZ, the new hub enjoys seamless connectivity to both local and international markets.

SPC Group president Hur Jin-soo expressed excitement over Paris Baguette’s new chapter in its global expansion, “This facility allows us to serve our customers worldwide with greater efficiency and consistency.

“From this strategic location in South-east Asia, we can reach key global markets faster and more effectively.”

Source: The Star

JS-SEZ home to South Korean bakery chain’s first global halal hub facility

Press Metal Aluminium Holdings Bhd said on Thursday that it has signed a memorandum of understanding (MOU) with Bintulu Development Authority (BDA) for a proposed joint venture (JV) to set up a solar frame extrusions facility in Bintulu, Sarawak.

The proposed JV will leverage Press Metal’s aluminium expertise and BDA’s strategic initiatives to support the fast-growing solar energy market, both locally and internationally.

Under the terms of the MOU, which is valid for three years, a special purpose vehicle will be formed with BDA holding a 20% stake and Press Metal or its subsidiary holding the remaining 80% stake.

The total estimated investment for the project is RM600 million, comprising a 20% capital injection in proportion to the parties’ shareholdings and 80% external financing.

The solar frame extrusions facility, with an annual production capacity of 80,000 tonnes, is expected to commence operations by mid-2026, subject to regulatory approvals and final agreements.

Press Metal group chief executive officer Tan Sri Paul Koon stated that the collaboration with BDA represents a significant milestone in supporting Sarawak’s vision of becoming a hub for renewable energy and sustainable industrial development, while also contributing to Malaysia’s broader sustainability goals.

“We believe this project will strengthen Sarawak’s industrial ecosystem by expanding the value chain, creating greater opportunities for value-added activities, and simultaneously generating meaningful employment while empowering local talent,” Koon said.

“This also aligns with Press Metal’s broader vision to expand our low-carbon aluminium applications, reinforcing our role in supporting global sustainability efforts and the energy transition,” he added.

Shares of Press Metal were up 25 sen or 5% at RM5.25 on Thursday, giving it a market capitalisation of RM43.26 billion.

Source: The Edge Malaysia

Press Metal teams up with Bintulu Development Authority to set up solar frame extrusions plant

Sarawak is exploring opportunities to expand its aluminium industry into aerospace manufacturing by leveraging 3D computer design technology, as well as the state’s strengths in energy resources and recycling capabilities.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg highlighted this potential during the signing of a Memorandum of Understanding (MoU) between Bintulu Development Authority (BDA) and Press Metal Aluminium Holdings Berhad at Raia Hotel & Convention Centre here today.

He noted that aluminium’s lightweight and durable properties make it an ideal material for high-value industries, including aircraft manufacturing.

“Assuming you want to manufacture certain parts of an aircraft, then you just do that mold. This can be done through 3D (computer) design,” he said, emphasising the role of advanced manufacturing processes in adding value to Sarawak’s aluminium sector.

Abang Johari emphasised that aluminium production depends on two key factors – energy for the melting process and recycling.

With Sarawak’s abundant hydropower resources, he said the state holds a competitive edge in aluminium manufacturing.

“Sarawak has the advantage in terms of power generation, and with proper recycling, aluminium waste can be melted down and repurposed into new products,” he said.

He also highlighted the rising demand for aluminium in the solar energy sector, where it is widely used in solar panel frames.

Additionally, he noted the material’s versatility in green building technology, particularly through modern construction methods like Building Information Modeling (BIM).

Abang Johari also commended Press Metal for its achievements in the aluminium industry and acknowledged BDA’s role in driving industrial development.

The MoU between BDA and Press Metal aims to explore downstream applications of aluminium, positioning Sarawak as a key player in high-value aluminium-based industries.

Source: The Borneo Post

Sarawak eyes aerospace manufacturing with 3D-designed aluminium parts

The Ministry of Investment, Trade and Industry (Miti) has reaffirmed its commitment to restructuring Malaysia’s steel industry to enhance sustainability, recognising it as a strategic sector for the country.

Miti Deputy Minister Liew Chin Tong and secretary general Datuk Hairil Yahri Yaacob recently engaged with the Malaysian Iron and Steel Industry Federation (Misif) and the Malaysia Steel Association (MSA) regarding the industry’s outlook and challenges.

“Acknowledging the significant hurdles faced by the sector over the past decade, Miti urged both associations to collaborate closely with the ministry to develop a comprehensive restructuring plan and achieve a broad industry consensus,” Miti said in a statement.

The ministry said the key issue raised during the discussions was the impending tariffs on steel and aluminium imposed by the United States, which are set to take effect on March 12. “The tariffs could lead to an influx of foreign steel originally destined for the United States being redirected to Southeast Asian markets, potentially disrupting Malaysia’s steel industry,” it added.

Source: Bernama

MITI commits to steel industry sustainability, engages industry players

SPC Group’s newly established halal-certified food hub in Johor is set to play a pivotal role in the company’s global expansion while reinforcing Malaysia’s position as a key player in the international halal food industry.

The facility, which houses the production of Paris Baguette’s halal-certified baked goods, marks a major step for the renowned South Korean bakery chain in strengthening its presence in Southeast Asia and beyond.

Chief executive officer of Paris Baguette for Asia-Pacific, Middle Eastern and African markets, Hana Lee said the new facility underscores the group’s longterm commitment to expand its footprint across high-growth halal markets.

“SPC Group’s investment in Malaysia reflects a long-term commitment to business growth, workforce empowerment and the advancement of the food manufacturing sector.

By leveraging Malaysia’s strong halal certification, strategic location and business-friendly environment, we are confident this facility will play a pivotal role in SPC Group’s global expansion,” she said in an exclusive interview with Bernama.

The grand opening of Paris Baguette’s first halal food hub in Johor was held at Nusajaya Tech Park yesterday.

The event was attended by key dignitaries, including Johor Menteri Besar Datuk Onn Hafiz Ghazi and South Korean Ambassador Yeo Seung Bae.

The Johor-based factory is designed to strengthen the company’s global supply chain, expand production capacity, and accelerate entry into Muslimmajority markets in Southeast Asia and the Middle East.

“With Malaysia’s internationally recognised halal certification, this facility serves as a key regional production hub, allowing us to meet rising demand across Southeast Asia, the Middle East and beyond,” Lee added.

Beyond its global aspirations, the facility is expected to bring significant economic benefits to the local community, particularly through job creation and partnerships with Malaysian small and medium-sized enterprises (SMEs).

“SPC Group is committed to creating long-term economic value in Johor by generating employment opportunities across production, engineering, supply chain, and administrative roles.

“In addition, we are strengthening the regional economy by partnering with Malaysian SMEs and suppliers to source raw materials locally,” she said.

The company is also taking an active role in workforce development by upskilling local talent through advanced food manufacturing technology and participation in the Johor Talent Development Council (JTDC).

“We actively contribute to initiatives that nurture homegrown talent, ensuring a skilled and sustainable workforce for the future,” Lee said.

Malaysia’s strategic location and robust halal ecosystem further enhance SPC Group’s operations and distribution networks.

“Establishing our regional halal food hub in Johor allows us to streamline exports through Singapore’s global logistics network, enhance supply chain resilience with Malaysia’s strong infrastructure and skilled workforce, and expand our reach in Muslim-majority markets,” she added.

SPC Group’s collaboration with the Malaysian government has also been instrumental in the successful establishment of the facility.

Lee pointed out the role of the Johor state government in facilitating regulatory approvals and connecting the company with key stakeholders.

“MIDA has supported our investment by aligning it with Malaysia’s vision for halal industry growth and facilitating access to halal industry incentives,” she said, adding that JAKIM’s halal certification strengthens SPC Group’s credibility in international markets.

The new facility will also allow SPC Group to expand Paris Baguette’s presence in Malaysia while introducing innovative, halal-certified bakery products.

“Our advanced frozen dough technology ensures bakery items retain their authenticity, allowing them to be freshly baked in stores.

“With state-of-the-art production capabilities, we are developing new recipes inspired by Malaysian flavours, incorporating tropical fruits while maintaining Paris Baguette’s artisanal craftsmanship,” Lee said.

Source: The Borneo Post

Paris Baguette goes big in Malaysia with new halal bakery factory

EP Manufacturing Bhd (EPMB) has partnered with Sanly China and Jujin China in two strategic joint ventures to localise the production of key automotive components for the Proton Saga MC3.

In a statement, the automotive solutions provider said these partnerships reinforced its commitment to strengthening Malaysia’s automotive manufacturing capabilities while ensuring cost efficiency and superior quality for original equipment manufacturers (OEMs).

EPMB, through its subsidiary PEPS-JV (M) Sdn Bhd, has formed a joint venture with Sanly China to manufacture key automotive components for the Proton Saga MC3 locally.

The partnership integrates Sanly China’s metalworking technology with EPMB’s Batang Kali operations, strengthening the supply chain and supporting MITI and MIDA’s efforts to boost local manufacturing.

‘This joint venture with Sanly China represents a strategic leap forward for EPMB. By combining Sanly’s advanced metalworking expertise with our local manufacturing capabilities, we are setting new standards of excellence in automotive component supply. This partnership is a testament to our commitment to innovation, quality, and strategic growth,” executive director Aidan Hamidon said.

Additionally, EPMB has partnered with Jujin China to localise car seat production for Proton. This joint venture builds on years of collaboration, driven by trust, mutual respect, and a shared commitment to innovation.

This strategic alliance reinforces EPMB’s position as a key automotive solutions provider in the industry.

The partnership combines Jujin’s seat design expertise with EPMB’s local manufacturing, improving efficiency, cutting costs, and boosting profitability.

“Discussions are ongoing to expand the collaboration to other Proton models and potentially Geely vehicles, further enhancing EPMB’s market reach,” EPMB said.

Source: The Star

EPMB forms joint ventures with Sanly and Jujin to localise Proton components

Legenda Beringin Holding Sdn Bhd and Chery Corporate Malaysia Sdn Bhd signed an agreement to develop the Chery Smart Auto Industrial Park at Beringin High Tech Auto (Beringin HTA) Valley, Hulu Selangor on Sunday.

Selangor Menteri Besar Datuk Seri Amirudin Shari said the industrial park, targeted for completion in 2026, anchors the first phase of development of the 324-hectare (800-acre) Beringin HTA Valley ecosystem, bringing world-class automotive manufacturing and cutting-edge technologies to Hulu Selangor.

He said the Chery Smart Auto Industrial Park will be developed with an investment of RM2.2 billion over five years.

It is among the crucial investments to advance the industrial ecosystem, and to strengthen Selangor’s competitiveness, and to position the state as a major regional investment hub.

“The progress we celebrate today is a testament to what can be achieved through strong partnerships and relationships. The investment by Chery Malaysia in Hulu Selangor and the development by Legenda Beringin, highlight this.

“I commend Invest Selangor initiatives in driving foreign investments, and working with Legenda Beringin and Chery Malaysia to bring the Beringin HTA Valley and Chery Smart Auto Industrial Park to fruition,” he said. 

Amirudin’s speech was read by state investment, trade, and mobility committee chairman Ng Sze Han at Chery Smart Auto Industrial Park’s signing and groundbreaking ceremony at Setia Alam Convention Centre here on Sunday. 

Raja Muda Selangor Tengku Amir Shah graced the event. 

Legenda Beringin chairman Chia Song Kooi and Chery International president Zhang Guibing were signatories to the agreement, witnessed by Tengku Amir Shah and Chery Automobile Co, Ltd chairman Yin Tongyue. 

Meanwhile, Zhang said the 81-hectare (200-acre) Chery Smart Auto Industrial Park is projected to have an initial production capacity of 100,000 vehicles per annum, scalable to 300,000 vehicles per annum, from internal combustion engine (ICE) models to the latest plug-in hybrid (PHEV), battery electric (BEV), and energy-efficient vehicle (EEV) technologies.

“We are confident that once completed, it will create high-value job opportunities, house a cutting-edge R&D (research and development) centre, expand vehicle exports to neighbouring countries, strengthen Selangor’s role through a robust supply chain, and solidify Malaysia’s position as a leading automotive hub in Asean,” he said.

Source: Bernama

Chery to build Smart Auto Industrial Park in Hulu Selangor

Investments in these segments require patience, often taking between 5 and 10 years to yield returns 

The country has the potential to expand its role in advanced packaging and semiconductor manufacturing, backed by its infrastructure and skilled workforce. 

As geopolitical shifts and supply chain diversification drive semiconductor companies to explore new locations, Malaysia is positioning to capture a greater share of the market. However, investments in these technologies require patience, often taking between five and 10 years to yield returns, according to a sector report on technology released by RHB Investment Bank Bhd on Feb 18. 

The report highlighted a recent event organised by the investment bank, featuring industry veteran and EQUVO Consulting Partners CEO Melvin Low. Low holds multiple board and advisory positions with companies in Singapore, Malaysia, Taiwan, Korea, and the US. 

It noted that Malaysia is home to companies such as Dagang NeXchange Bhd, which took control of SilTerra Malaysia Sdn Bhd, and the global foundry group X-FAB, which provides specialty technologies and design intellectual property to enable its customers to develop semiconductor products. 

“This expertise is complemented by strong proficiency in English and bilingual capabilities in Chinese, facilitating communication in global operations. 

“Additionally, Malaysia’s growing role in advanced packaging is further reinforced by the diversification of supply chains amid the US-China trade war, positioning the country as an increasingly attractive destination for semiconductor investment and high-tech manufacturing,” the report added. 

“Successfully establishing and growing semiconductor fabs requires several key resources and government support mechanisms. First, a strong base of engineering talent is crucial to sustain advanced manufacturing to achieve good yield and research and development (R&D) efforts. 

“Government policies, such as subsidies and taxes, further enhance investment appeal by lowering operational costs. Third, reliable and competitively priced utilities, such as electricity and water, are necessary to support high-energy-consuming fabrication processes,” it added. 

The report said Malaysia has emerged as an attractive destination for the semiconductor industry, especially the back-end process, benefitting from a skilled workforce in semiconductor packaging, electronics manufacturing services and some wafer fabrication. 

Making the case for Malaysia, the report noted that the country plays a critical role in the global semiconductor supply chain, particularly in the outsourced semiconductor assembly and testing (OSAT) segment. 

It is home to leading OSAT players such as Inari Amertron Bhd, Malaysian Pacific Industries Bhd (MPI), Unisem (M) Bhd and Globetronics Technolog y Bhd — which provide essential back-end services — including packaging, testing and assembly for major global semiconductor companies. 

Additionally, Malaysia’s strategic location in South-East Asia and its well-developed free trade zones (FTZs) facilitates the seamless import and export of semiconductor components and finished products. 

With strong government support, including tax incentives and grants under initiatives such as the New Industrial Master Plan (NIMP 2030) and the National Semiconductor Strategy (NSS), the country continues to attract new semiconductor investments. 

The report said one of Malaysia’s key strengths lies in its cost competitiveness. Competitive wages for operators and technicians, along with low costs for power and water, make it an economically viable hub for semiconductor manufacturing. 

Furthermore, the country’s well-developed logistics infrastructure — including road, rail, air and sea freight networks — ensures efficient supply chain management and global connectivity. 

Malaysia’s appeal extends beyond its industrial capabilities. It offers a high quality of life, with affordable and excellent living conditions that attract expatriates. International schools, a comfortable environment for families and proximity to Singapore further enhance its liveability and strategic positioning. This connectivity with Singapore, a global semiconductor hub, provides additional opportunities for collaboration and talent mobility. 

Moreover, the nation has the potential to attract experienced semiconductor professionals currently working in key markets such as Singapore, Taiwan, China, and the US. By leveraging its diaspora of skilled talent, Malaysia can further strengthen its talent pool and industry capabilities, positioning itself as a leading player in the global semiconductor landscape. These factors make the country a promising and well-rounded choice for semiconductor investment and growth. 

Source: The Malaysian Reserve

Malaysia to expand advanced packaging, chip manufacturing

The Ministry of Investment, Trade, and Industry (MITI) has received approval from the National Investment Council (NIC) to extend the current moratorium for the Malaysian iron and steel sector, which is set to end in August 2025.

MITI said the extension covers the upstream sector of long steel products and that a review of the moratorium period will be carried out once existing domestic players reach nearly 80% capacity utilisation.

“MITI will also extend the moratorium on the upstream sector of flat steel products and limit large capacity expansions. This approach aims, among other things, to address the mismatch between capacity and domestic usage, improve industry practices towards the adoption of emissions compliance technologies, and enhance sector governance to boost competitiveness and the production of high-value-added steel products,” it said in a statement.

Additionally, MITI recognises the need for strong governance and industry coordination to support the transformation of the industry.

“Therefore, the NIC has agreed to restructure the Malaysia Steel Institute (MSI) and the Malaysian Steel Council (MSC) to strengthen and prioritise their current functions. This restructuring will enhance regulatory enforcement, ensure coordination between key agencies and promote fair competition.

“It will also improve capacity management by increasing transparency and enhancing the competitiveness and economy of the sector. The strengthened institutions will also play an important role in driving the decarbonisation pathway for the steel sector as a whole,” it said.

The NIC also agreed with MITI’s proposal for the government to accelerate the implementation and restructuring of carbon tax and carbon pricing mechanisms for emission-intensive industries, with the steel sector leading the compliance efforts for other sectors.

“MITI will also develop a decarbonisation roadmap, which includes the implementation of regulations to measure, report, and verify (MRV) greenhouse gas (GHG) emissions levels for all steel players in Malaysia, as a foundational building block for carbon pricing and other carbon mechanisms,” it said.

Source: Bernama

Moratorium on iron and steel sector to be extended

The Ministry of Investment, Trade and Industry (MITI) will hold an engagement session with Proton Holdings Bhd and Zhejiang Geely Holding Group Co Ltd (Geely) to discuss supply chain-related issues.

Its Minister, Tengku Datuk Seri Zafrul Abdul Aziz said the ministry will review the matter, particularly concerning the electric vehicle assembly hub in Tanjung Malim, Perak.

“The planning appears to be long-term, with significant costs to be borne by Proton and Geely.

“At the same time, we will ensure that jobs in engineering, installation, maintenance, and management during the first phase of this factory involve local vendors and Malaysians, especially those with a keen interest in the automotive industry,” he said during the winding-up session of the Royal Address debate for the ministry in the Dewan Rakyat today.

Tengku Zafrul noted that the supply chain issue had previously been discussed with Proton, particularly regarding the challenges faced by local vendors competing with Chinese companies.

“(We have discussed) bringing factories from China directly to Malaysia. However, this would put pressure on our local manufacturers and vendors, as they may struggle to compete with Chinese firms in terms of economic scale and expertise.

“Therefore, the special incentives provided must ensure that the supply chain originates from within our country. Otherwise, these incentives cannot be granted,” he said.

On Tesla’s investment in Malaysia, Tengku Zafrul said the company’s decision to establish a factory in the country is still under discussion.

“Several Southeast Asia countries are also courting Tesla. Currently, Tesla operates only one factory in Asia, located in China. Tesla has yet to decide on investing in Malaysia, but I believe the company will proceed only if the investment is commercially viable and promises positive returns,” he added.

Source: NST

MITI to engage with Proton, Geely on supply chain issues

The Ministry of Investment, Trade, and Industry (MITI) aims to establish a minimum of 3,000 smart factories by 2030 as part of Malaysia’s industrial transformation under the New Industrial Master Plan 2030 (NIMP 2030).

Deputy secretary-general (Industry) Datuk Hanafi Sakri said the initiative is not just about embracing digital transformation, it is about creating high-skilled jobs, enhancing industrial resilience and positioning Malaysia as a leader in advanced manufacturing.

“So far, nearly 500 companies have benefited under the Intervention Fund managed by the Malaysian Investment Development Authority (MIDA).

“We hope to achieve a minimum target of 2,500 more by 2030,” he told reporters after officiating the MIDF 2025 Roadshow today, themed “Embracing Global Competitiveness: Future Ready and Halal Businesses.”

The NIMP 2030 is Malaysia’s national strategy to drive Industry 4.0 adoption among manufacturing and manufacturing-related services companies by helping businesses transition into smart manufacturing through automation, digitalisation, and advanced technologies like Artificial Intelligence, Internet of Things and robotics.

During the launch of the roadshow, the Malaysian Industrial Development Finance Bhd (MIDF) introduced two key initiatives, namely the Future Ready Financing (FRF) and Halal Accreditation Technology Improvement (HATI) programmes.

The FRF helps SMEs adopt Industry 4.0 technologies and automation for enhanced competitiveness, while HATI supports SMEs in upgrading technology to meet halal certification standards.

Hanafi lauded this support from MIDF, highlighting the substantial amount of funds needed to achieve the smart manufacturing target set under NIMP 2030.

“The smart manufacturing initiative requires significant financing, as establishing 3,000 smart factories — with an estimated RM5 million per company — amounts to a total requirement of RM15 billion.

“Given the substantial amount, which the government cannot afford to provide through grants or soft loans alone, participation from commercial banks is crucial to supporting the aspirations of NIMP 2030,” he said, adding that the halal industry also requires financial support to grow.

He also noted that participation from financial institutions like MBSB Bhd is also crucial in meeting the financing needs of the industry.

Earlier in his keynote speech, Hana lauded the FRF and HATI as pivotal in empowering SMEs to integrate new technologies, enabling them to compete effectively on the global stage.

“I firmly believe that through strong collaboration between the government, industry players, and SMEs, we can drive Malaysia’s industrial transformation forward, ensuring our businesses remain relevant, competitive, and future-ready,” he added.

Source: Bernama

Malaysia sets minimum target of 3,000 smart factories by 2030 – MITI