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

Singapore’s United Overseas Bank (UOB) has launched a Green Lane initiative with Invest Johor to fast-track investments into the Johor-Singapore Special Economic Zone (JS-SEZ).

The initiative, a result of the Memorandum of Understanding (MoU) signed at the 2024 Asean conference, aimed to streamline the approval process for high-impact investors. Invest Johor serves as Johor’s one-stop centre for investors, promoting and facilitating investments across various industries.

It aims to position Johor as a regional hub for high-tech, knowledge-based, and capital-intensive industries.

UOB will conduct pre-qualification assessments for its clients applying for Johor’s Super Lane approval, significantly reducing processing time.

The bank also introduced a Fast Lane account opening service for Singaporean investors expanding into the JS-SEZ and established dedicated JS-SEZ desks in Johor and Singapore for market entry support.

The Green Lane’s first beneficiary, Hong Kong-listed Gold Peak Technology Group, is set to invest RM670 million (US$150 million) to establish an advanced manufacturing and R&D facility in JS-SEZ.

Gold Peak Technology Group executive director and managing director Michael Lam presented a Letter of Intent (LOI) to Invest Johor chief executive officer (CEO) Natazha Hariss at a business mission event attended by Johor Menteri Besar Datuk Onn Hafiz Ghazi and other key officials.

Lam also expressed confidence in JS-SEZ’s potential as a regional manufacturing hub.

“With UOB and Invest Johor’s support, our new facility will drive innovation in battery technology, reinforcing our commitment to powering a greener tomorrow,” he added.

Onn Hafiz hailed the initiative as a milestone in strengthening cross-border trade and investment, aligning with Johor’s Maju Johor 2030 vision.

“Gold Peak’s investment will bring advanced manufacturing, high-quality jobs, and sustainable economic growth to Johor, solidifying JS-SEZ’s position as a premier investment hub,” he said today.

Gold Peak’s upcoming facility will focus on next-generation battery technologies, playing a crucial role in sustainable energy storage solutions, particularly for data centres in Southeast Asia. The investment is expected to generate 150 to 180 new jobs, fostering local talent and innovation.

UOB Malaysia CEO Ng Wei Wei emphasised the bank’s commitment to driving strategic investments.

“Since our MoU with Invest Johor, we have actively delivered on our commitments, bringing in investments and streamlining approvals.

“The LOI from Gold Peak reflects growing investor confidence in JS-SEZ,” Ng said.

The collaboration between UOB, Invest Johor, and key investors is expected to accelerate the JS-SEZ’s transformation into a leading economic zone, attracting high-value, sustainable investments.

Source: NST

Gold Peak’s RM670mil investment first under JS-SEZ fast-track initiative

Pantech Global Bhd, en route to becoming Bursa Malaysia’s first Main Market listing of the year, plans to accelerate expansion and enhance operational efficiency, fuelled by the RM178.3mil it aims to raise from its initial public offering (IPO) on March 3.

The company, a wholly owned subsidiary of Main Market-listed Pantech Group Holdings Bhd before the listing, manufactures steel pipes and fittings for fluid transmission across industries such as oil and gas, semiconductors and shipbuilding.

While its parent company, Pantech Group, carries over 100,000 stock-keeping units (SKUs), while undertaking large-scale projects in Malaysia and the surrounding region, Pantech Global operates with a more focused product range of under 5,000 SKUs and is more export-oriented.

It primarily supplies original equipment manufacturers (OEMs), project-based clients, distributors, and resellers.

Unlike conventional steel producers focused on upstream processes like iron ore and billet production, Pantech Global operates further downstream, where value addition is significantly higher, group managing director Adrian Tan Ang Ang said.

“When you talk about steel, you start with iron ore and scrap, which are made into billets, then wire rods and other basic steel products. But we go further down, to fittings. That’s why our value-added is more,” he told StarBiz.

Tan noted that while the business has higher conversion costs, Pantech Global’s products fetch higher selling prices.

A check on the Malaysia Steel Institute’s website showed that median steel prices in December 2024 stood at US$105 per tonne for iron ore, US$315 per tonne for scrap iron, US$492 per tonne for billet/slab and US$555 per tonne for steel bars.

In contrast, Tan highlighted that Pantech Global’s carbon steel fittings, which undergo extensive value-added processing, and are sold at US$1,600 per tonne.

This is due to the multiple processes involved, such as sawing, cutting and other treatments, he said.

As a result, Tan, who has been with Pantech Global since 2000 and oversaw its first factory opening, said steel price fluctuations have little impact on the company’s business due to its focus on high-value downstream products.

“Instead, we will look at the market demand,” he added.

Asked about rising costs and trade challenges after US President Donald Trump raised tariffs on steel and aluminum imports to a flat 25% “without exceptions or exemptions”, Adrian remained confident.

“We can always pass on cost increases to customers. If our costs rise, so do our competitors’. For example, with the 25% tariff in the United States, we are still able to sell at competitive prices because the entire market faces the same conditions,” he said.

Pantech Global currently operates two factories – one in Klang, producing carbon steel fittings, and another in Johor manufacturing stainless steel pipes and fittings.

Although the group’s factory utilisation hovers around the high 70s to low 80s, Tan said “on the site, we feel like we are running at full capacity”.

Tan said this is due to the nature of the business, where parts need to be moved between machines, despite equipment running continuously.

Pantech Global seeks to raise RM178.3mil from its IPO, with the bulk of the proceeds allocated for business expansion (RM67.3mil or 37.8%) and capital expenditure (RM64.7mil or 36.3%).

The remainder will go towards working capital (RM22.7mil or 12.7%), repayment of bank borrowings (RM15mil or 8.41%) and estimated listing expenses (RM8.6mil or 4.8%).

Part of the funds will be used to acquire operational facilities, including its Klang factory and Johor land, as part of its long-term expansion strategy.

“This will save us RM3.3mil annually in rental costs,” Tan said.

The company is also investing in automation and efficiency enhancements, such as a new pickling facility in Johor designed to handle 11.8m pipes.

Pantech Global’s pickling process is limited to 6m pipes, requiring double-dipping for longer lengths.

“With the new facility, we can process 11.8m pipes, which fit into a 40-foot container. This reduces labour from 35 to just five workers,” Tan said.

Pickling is a process where carbon is removed from stainless steel pipes using acid treatment after annealing and heat treatment.

The company is also acquiring new machinery, replacing conventional bandsaws with laser-cutting machines.

Source: The Star

Pantech Global fast tracks expansion

The Sipitang Oil and Gas Industrial Park (SOGIP) will serve as a key catalyst for the growth of the energy sector, which is crucial for Sabah’s continued economic development, said Chief Minister Datuk Seri Panglima Hajiji Noor.

SOGIP, he pointed out, has attracted numerous investments, including high-impact projects, such as Esteel’s Green Steel plant, which involves a phased investment of RM20 billion.

Most recently, an Energy, Oil, and Gas Hub project worth RM8.88 billion (USD2 billion) has been announced and the joint venture between Sabah Oil and Gas Development Corporation (SOGDC) which manages SOGIP and Gibson Shipbrokers Limited will position Sabah as a key energy hub in Southeast Asia.

For this reason, he said, the Sabah government remains committed to fully supporting investments that bring long-term benefits to the people of Sabah.

“I am confident that the success of this project will spur growth in the oil and gas industry, ultimately establishing Sabah as a competitive energy hub at the international level.”

“We are fortunate that Sabah is rich in natural resources, including forests, minerals, fauna, flora and marine life. Our strategic location, stable political environment, abundant natural resources, and diverse economy make Sabah an attractive destination for foreign investors,” Hajiji said when officiating the launch of the Petroleum Storage and Refining Plant Construction Project at SOGIP on Tuesday.

According to Hajiji, Sabah holds great potential in oil and gas resources, and the construction of the Petroleum Storage and Refining Plant by Petroventure Energy Sdn Bhd, set to begin in April, will significantly contribute to the state’s economic growth.

The project will involve the construction of a refinery with a capacity of up to 150,000 barrels per day (BPD) and oil storage facilities capable of holding three million cubic meters of crude oil and refined petroleum products.

“This is yet another strategic new investment that will undoubtedly reinforce Sabah’s position as an oil and gas industrial hub in the region,” said the Chief Minister, adding that with 400 acres of land allocated for the project at SOGIP, it is expected to attract over USD 3.5 billion (RM15.5 billion) in foreign direct investment (FDI) and create nearly 5,000 job opportunities for the people of Sabah.

During the construction phase, the project is estimated to require more than 3,000 workers, while the fully operational plant will provide permanent employment for over 1,000 workers.

“All of this is a positive indicator of our efforts to create employment opportunities for our people. I have always emphasized the importance of prioritizing local Sabahans in the workforce for all projects and operations in the state. I expect all industry players to adhere to this fundamental requirement as a key principle in our commitment to local development,” he stressed.

The project will also include the development of a jetty, oil grading facilities, a petroleum testing laboratory, and an administrative building.

Hajiji expressed confidence that Petroventure’s various environmental studies, including the Environmental Impact Assessment (EIA), will ensure that the project is developed sustainably, aligning with industry requirements and the state government’s environmental priorities.

Speaking to the media later, Hajiji said that the collaboration between SOGIP and Petroventure Energy Sdn Bhd at SOGIP is another effort to prioritize industrial growth in Sabah.

“I am very pleased that our long-term vision is progressing and succeeding day by day. This initiative will create job opportunities for local talents and boost our economy.

“We have an investor-friendly policy, but we prioritize local investors. However, we also welcome foreign investors, especially those with expertise in certain areas. The most important thing is that their investments bring benefits to Sabah,” he said.

Source: The Borneo Post

SOGIP to serve as key catalyst for growth of energy sector — Hajiji

Taiwanese semiconductor services firm ASE Technology Holding Co Ltd on Tuesday officially opened its fifth plant in Penang for chip packaging and testing.

The new plant will more than triple its floor space in Malaysia to about 3.4 million square feet, according to a statement. ASE, the world’s largest provider of outsourced semiconductor assembly and test services, said it will hire an additional 1,500 employees “over the next few years” for the plant.

“With Malaysia solidifying its position as a regional semiconductor hub, we see our expanded facility playing an even greater role across the global semiconductor value chain and contributing to the country’s economic growth,” said ASE chief executive officer Dr Tien Wu.

ASE’s plant in the Bayan Lepas Industrial Zone comes online at a time of rising demand for cutting-edge chips required for artificial intelligence and other advanced computing.

Penang is home to some of the largest global electrical and electronics companies, including semiconductor giants Intel and Infineon Technologies, as well as major manufacturers such as medical device maker B Braun and power tool company Bosch.

The new facility “further cements Penang’s position as a powerhouse in the global semiconductor landscape, reinforcing its reputation as the ‘Silicon Valley of the East’,” Penang Deputy Chief Minister II Jagdeep Singh Deo said in the joint statement.

For the Malaysian Investment Development Authority (Mida), ASE’s continued expansion in Penang underscores the long-standing partnership between Malaysia and Taiwan.

“These partnerships will not only drive demand for precision engineering, automation and semiconductor manufacturing, but they’ll also help our homegrown leaders,” said Mida deputy chief executive officer of investment promotion and facilitation Sivasuriyamoorthy Sundara Raja.

Source: The Edge Malaysia

Taiwan’s ASE opens fifth plant in Penang, will hire additional 1,500 staff

Sabah’s Petroleum Storage and Refinery Plant project is expected to create close to 5,000 job opportunities for Sabahans, says Chief Minister Datuk Seri Hajiji Noor.

“This is a promising development for our local workforce,” said Hajiji, adding: “I am committed to ensuring that Sabahans are prioritised for these opportunities, as part of our ongoing efforts to drive local development.”

The project that would bring in over USD 3.5bil (RM15.5bil) in foreign direct investment (FDI) will require more than 3,000 workers during its construction and over 1,000 permanent jobs will be created once the plant becomes fully operational.

The project, owned by Petroventure Energy Sdn Bhd is slated to begin in April and is expected to contribute significantly to the state’s economic growth, leveraging Sabah’s vast natural resources.

Hajiji expressed confidence that the facility, designed to process up to 150,000 barrels per day (BPD), will help establish Sabah as a prominent hub for oil and gas operations in the region.

With the addition of an oil storage capacity of three million cubic meters for both crude oil and refined petroleum products, the project will further cement the state’s strategic position within the global energy sector.

“This is another strategic new investment that will undoubtedly strengthen Sabah’s position as a hub for the oil and gas industry in the region,” said Hajiji.

Beyond the refinery itself, the project will also involve the construction of essential infrastructure, including a jetty, oil upgrading facilities, petroleum testing laboratories, and administrative buildings.

These additions will further enhance SOGIP’s appeal as a global investment destination.

Hajiji also reassured the public that the environmental impact of the project has been carefully considered.

Petroventure Energy has carried out extensive studies, including an Environmental Impact Assessment (EIA), to ensure the development aligns with both industry standards and the state’s environmental priorities.

SOGIP has already attracted several high-impact investments, such as Esteel’s Green Steel factory, which carries an RM20bil phased investment.

In addition, the recently announced RM8.88bil Energy, Oil, and Gas Hub Project, a collaboration between Sabah Oil and Gas Development Corporation (SOGDC) and Gibson Shipbrokers Limited, promises to elevate Sabah’s position in the Southeast Asian energy sector.

Hajiji reaffirmed the state government’s commitment to supporting investments that would provide long-term benefits for the people of Sabah.

“We are confident that this project will catalyse the growth of the oil and gas industry, making Sabah a competitive energy hub on the international stage,” he said.

Sabah’s abundant natural resources, coupled with its strategic location, stable political environment, and diverse economy, continue to make the state a prime destination for foreign investors.

Source: The Star

Sabah’s petroleum refinery project to create nearly 5,000 jobs, says Chief Minister

The National Investment Council (NIC) meeting has approved the implementation of a specific framework for the National Semiconductor Strategy (NSS) which outlines a clear direction to target the development of 110 local companies in high-value activities.

The Ministry of Investment, Trade and Industry (MITI) said the high-value activities are integrated circuit design (IC design), advanced packaging and advanced manufacturing equipment.

“This includes 10 local companies related to semiconductors with revenue of between RM1 billion and RM4.7 billion, as well as supporting the establishment of 100 other companies, each expected to generate annual revenue of around RM1 billion,“ it said in a statement today.

According to MITI, Prime Minister Datuk Seri Anwar Ibrahim, while chairing the NIC yesterday which was the first meeting of the year, approved the implementation of the NSS specific framework.

In this regard, MITI said it will work closely with other ministries, such as the Economy Ministry, the Foreign Ministry, the Science, Technology and Innovation Ministry, the Digital Ministry, the Natural Resources and Environmental Sustainability Ministry and the Higher Education Ministry.

NSS was launched on May 28, 2024.

It aims to strengthen Malaysia’s position in the global semiconductor supply chain as a strategic step to increase added value to the contribution of the manufacturing sector to the growth of Malaysia’s gross domestic product as well as the addition of skilled talent and an increase in median wages in the manufacturing sector, as targeted by the New Industrial Master Plan 2030.

Source: Bernama

NSS framework passed to develop 110 local high-tech companies – MITI

Malaysia is well-positioned to enhance its role in advanced packaging and semiconductor manufacturing, supported by a strong infrastructure base and a highly skilled workforce.

RHB Research noted that the country stands to capture a larger share of the technology market as geopolitical tensions and supply chain diversification push semiconductor companies to explore new manufacturing hubs.

“However, investments in these technologies require patience, often taking five to 10 years to yield returns,” it said in a note.

The firm said government support mechanisms are needed to establish and grow semiconductor fabs.

It said a strong base of engineering talent is crucial to sustain advanced manufacturing to achieve good yield and research and development efforts.

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

It added that the trade war has accelerated the diversification of supply chains, pushing companies to explore regions like Southeast Asia for manufacturing.

The shift is influencing the locations these companies choose to invest in and produce their products.

“Navigating this conflict requires a balanced approach, avoiding excessive alignment with either side to maintain trade relationships and strategic positioning,” it said.

The firm maintained an ‘Overweight’ call on the technology sector.

Source: NST

Malaysia can do better in advanced packaging, semiconductor manufacturing

Malaysia should implement a comprehensive strategy to attract semiconductor and high-tech industries to the country, according to RHB Investment Bank Bhd (RHB IB).

In a note on Tuesday, the investment bank said the strategy includes government support, talent attraction, education reforms and industry recognition.

It said the government must be prepared to provide substantial subsidies, tax incentives and special pricing for power and water to make the country competitive for investments.

“Efforts should be made to bring back experienced Malaysian semiconductor professionals working abroad, by offering special incentives and making the Malaysia My Second Home (MM2H) programme more attractive for expatriates.

“Strengthening universities by increasing engineering and technology programme intakes, aligning curricula with industry needs, and fostering research collaboration with companies will also help build a skilled local workforce,” it said.

RHB IB said recognising industry leaders, scientists and key contributors could also inspire greater participation in high-tech industries and drive motivation for research and development (R&D).

“Highlighting their achievements not only fosters innovation but also encourages the next generation to contribute to technological advancements,” it noted.

To strengthen its position in the semiconductor and software industries, Malaysia could collaborate with Asean to establish a regional cluster or hub, said RHB IB.

The bank said that working closely with Singapore will help attract major players like Micron, GlobalFoundries and Lam Research — by offering these companies incentives to expand their operations into Malaysia.

“Facilitating the seamless movement of equipment, materials and engineering support between the two countries can also enhance supply chain efficiency,” said the bank.

At a broader Asean level, RHB IB said linking with Thailand, Vietnam, and the Philippines could provide a cost-effective alternative to China for production activities.

It added that encouraging free trade and the smooth flow of materials within Asean can further enhance regional competitiveness.

“Positioning Asean as a China+1 alternative for semiconductor, software and equipment production will strengthen the region’s role in global supply chains, making it an attractive destination for high-tech investments,” it added.

According to RHB IB, semiconductor equipment investments are expected to double from US$100 billion today to US$200 billion over the next decade, reflecting the increasing demand and continued advancements in semiconductor technology.

Source: Bernama

Implement comprehensive strategy to attract semiconductor, high-tech industries to Malaysia — RHB IB

The National Investment Council (MPN) meeting has agreed that semiconductor diplomacy should become one of the strategic pillars of the National Semiconductor Strategy (NSS) policy framework, said Prime Minister Datuk Seri Anwar Ibrahim.

In a Facebook post, he announced that the strategic framework is designed to strengthen synergistic cooperation with international partners and ASEAN countries to ensure a sustainable and resilient supply chain for both domestic and global semiconductor players.

“In this regard, the Ministry of Investment, Trade, and Industry (MITI), in collaboration with the Ministry of Foreign Affairs, will foster closer cooperation in semiconductor diplomacy and strategic initiatives that can elevate the country to a higher level of expertise,“ he said.

The MPN meeting today agreed with the proposal to implement the NSS policy framework.

Anwar said it will focus strategically on the development of local companies to create 10 semiconductor-related companies with estimated revenues ranging from RM1 billion to RM4.7 billion.

Source: Bernama

Semiconductor diplomacy to become strategic pillar of policy framework – PM Anwar

UNITED STATES-based Benchmark Precision Technologies has officially expanded its presence in Penang with the groundbreaking ceremony of its fifth manufacturing facility.

Strategically located adjacent to its fourth facility in the Batu Kawan Industrial Park (BKIP), the new facility is expected to be completed by June 2026.

This expansion complements the company’s three other manufacturing sites in Bayan Lepas, further solidifying its role as a key player in Malaysia’s high-tech manufacturing landscape.

The groundbreaking ceremony, held today, was officiated by Deputy Chief Minister II Jagdeep Singh Deo, marking another milestone in Penang’s growing prominence as a hub for advanced manufacturing and precision engineering.

Benchmark Precision Technologies Group president Datuk Dr Balamurugan Sinnasamy highlighted that the new facility will be a cutting-edge two-storey building featuring office spaces, advanced production areas, including cleanrooms, complex machining capabilities, automated powder coating lines and a multi-storey car park and other in-house amenities.

“With an investment of RM110 million over the next 18 months, this facility will add an additional 215,000 sq ft of manufacturing space.

“Over the next five years, we expect to create employment opportunities for more than 500 professionals across various skill levels.

“Upon full operational capacity, Benchmark will have a total of 720,000 sq ft of manufacturing space in Penang, enhancing its ability to generate up to RM4.5 billion in annual revenue,” said Dr Balamurugan in his speech.

Dr Balamurugan emphasised that the expansion also will strengthen Benchmark’s capacity to meet the rising demand for Wafer Fab Equipment (WFE) manufacturing in the region.

“This facility will enhance our expertise in complex module assembly and high-level system integration for leading semiconductor WFE manufacturers.

“Additionally, it will accommodate large-form-factor precision machining and incorporate a state-of-the-art automated powder coating line, reinforcing Benchmark’s position as a Tier 1 contract manufacturer in Southeast Asia,” he added.

Meanwhile, Jagdeep lauded Benchmark’s continued investment in Penang, recognising it as a testament to the state’s robust industrial ecosystem, skilled workforce, and strategic global connectivity.

“I am confident that Benchmark Precision Technologies will continue to thrive by leveraging Penang’s dynamic industrial landscape.

“Since its entry into Malaysia in 2007, the company has played a crucial role in shaping our economic and technological progress,” Jagdeep stated.

He also noted the significant role of US investors in bolstering Penang’s industrial growth.

“Investments from US firms, including Benchmark, have been instrumental in advancing technological innovation and industrial capabilities in the region,” said Jagdeep.

Also present during the groundbreaking ceremony were Bukit Tambun assemblyman and InvestPenang director Goh Choon Aik, Malaysian Investment Department Authority (Mida) Penang director Muhammad Ghaddaffi Sardar Mohamed and Benchmark Precision Technologies Penang vice-president and general manager Khoo Kay Chuan.

Source: Buletin Mutiara

Benchmark Precision Technologies expands footprint in Penang with fifth manufacturing facility