The government will continue to facilitate the furniture industry’s development in terms of raw materials, productivity and design aspects through various initiatives and programmes, said Deputy Plantation and Commodities Minister Datuk Chan Foong Hin.

Likewise, the furniture industry should continue to work closely with the ministry and its agencies such as the Malaysian Timber Industry Board (MTIB), Malaysian Timber Council (MTC), and Malaysian Timber Certification Council (MTCC), for the betterment of the industry and its exports, he said.

“I urge all industry players to continue working closely with the stakeholders throughout the supply chain and broaden the network to explore new (strategic) possibilities,” he said at the opening ceremony of the Export Furniture Exhibition (EFE) 2024 here today.

He added that such efforts would bring positive outcomes and lead to a better performance of the furniture industry in the future.

Besides, he also reckoned the furniture industry has been playing a prominent role in the timber sector.

“For 2023, the timber sector has exported RM21.85 billion worth of timber and timber products.

“Wooden furniture contributes RM9.1 billion of export value, (contributing) 44.11 per cent of the annual timber and timber product export,” he said, adding that timber has traditionally been the third largest commodity sector after palm oil and rubber.

According to Chan, timber is one of the eight commodities identified under the National Agricommodity Policy 2021-2030 (DAKN 2030) to be transformed in a more sustainable, competitive and market-oriented manner.

“It is to ensure they remain strong growth drivers of Malaysia’s economic growth. We target the export value of timber and timber products at RM28 billion by 2025 and RM32.8 billion by 2030,” he said.

Meanwhile, Malaysian Furniture Council president Desmond Tan said the council is hoping that the government would create a raw material hub for the furniture industry to ensure industry players can obtain their raw materials conveniently and affordably.

“This will assist in keeping the cost of the production as low as possible and preserve our competitiveness in the global market,” he added.

More than 400 exhibitors are participating in EFE 2024, which runs from March 4 till March 7.

Source: Bernama

Govt to continue facilitating furniture industry’s development

Malaysia saw a total of RM152 billion approved investments for the manufacturing sector in 2023, of which RM46.1 billion were realised last year, involving 445 projects, according to the Ministry of Investment, Trade and Industry (Miti).

The achievement, which created 29,693 jobs, is deemed “encouraging”, considering that the projects have been able to be implemented in less than the usual period, which usually takes between 18 to 24 months, Miti told Dewan Negara on Monday.

Throughout 2023, Miti said only one manufacturing investment project was cancelled, involving RM19.2 million, while the implementation of nine projects were deferred, involving some RM455 million.

Malaysia’s approved investment rose 23% to a record high of RM329.5 billion in 2023, of which 57.2% was from foreign capital while 42.8% from domestic.

The services sector constituted the largest portion of total approved investment in 2023, amounting to RM168.4 billion or 51.1%, followed by the manufacturing sector’s RM152 billion or 46.1%, and the primary sector’s RM9.1 billion or 2.8%.

Miti said approved investment refers to investment planning for the capital expenditure of a project in the long term, including the cost of purchasing land, factories, machines, machinery and others.

“Generally, an approved project takes between 18 and 24 months to be implemented or realised, depending on the scale and complexity of the projects concerned,” it said.

Source: The Edge Malaysia

Nearly one-third of 2023 approved investment in manufacturing sector realised, says MITI

The Malaysia Semiconductor Industry Association (MSIA) will visit the Netherlands to attract Dutch semiconductor companies to invest in Malaysia, while many Chinese firms are keen to relocate here.

Semiconductor firms relocating overseas are considering Malaysia as their preferred investment destination as every company is preparing for future growth, driven by the phenomenal increase in the usage of artificial intelligence (AI) in semiconductor chips.

MSIA president Datuk Seri Wong Siew Hai said the mission to the Netherlands follows a high-energy dialogue recently between the association and potential Dutch investors who were exploring business opportunities in the semiconductor sector in the Asia-Pacific region.

“We are now trying to make a trip to the Netherlands and convince them to come here. This is purely an industry initiative,” he said.

“When we see an opportunity like this, it is important to talk to them and tell them the attributes we have in Malaysia, more so since the companies are of high value which will strengthen our ecosystem,” he told Bernama.

The planned visit comes as Dutch firm Neways, a global innovator in mission-critical technology for leading semiconductor, connectivity and smart mobility companies, set up a new state-of-the-art manufacturing facility in Klang with production to start in the fourth quarter of 2024.

Wong also revealed that a lot of Chinese companies “are coming here” to overcome disruptions to their production and exports and avoid US tariffs following the US-China trade war.

As for companies preparing for future growth, he said semiconductor revenue is projected to increase to a staggering US$1 trillion (RM4.7 trillion) by 2030.

“This is driven by the phenomenal growth in the use of semiconductors in every aspect of our lives,” he said.

US companies are coming out of China and looking to relocate while Chinese companies unable to ship to the US due to Washington citing “national security” concerns are also wanting to move abroad to avoid American tariffs.

Malaysia, Wong said, should capitalise on this and the timing now is perfect due to the geopolitical tension between the US and China.

Source: Bernama

Semiconductor industry to woo Dutch, China investors

Northeast Group Bhd, a precision components manufacturer, on Friday filed for an initial public offering (IPO) on Bursa Malaysia’s ACE Market to raise funds for expansion, including on a new factory costing over RM50 million.

The IPO involves a public issue of 168.99 million new shares and offer for sale of 51.8 million existing shares, according to its draft prospectus posted to Bursa Malaysia. All in all, the listing would offer investors up to a 30% stake in the company.

Northeast, based in Penang, mainly manufactures precision engineering components used in the photonics, electrical and electronics, semiconductor, telecommunication and optoelectronics industries for both local and foreign clients including from the US, the UK, Thailand, Singapore, Canada, and Germany.

Further, the company also provides surface finishing, sheet metal fabrication and mechanical sub-assembly. Northeast recorded a profit after tax of RM18.36 million on a revenue of RM93.34 million for the financial year ended Sept 30, 2023.

Out of the 168.99 million new shares, the company is allocating 37 million to the public, 29.6 million for eligible persons, and 102.38 million to select investors and Bumiputera through private placement. The sale of existing shares meanwhile will also be done through private placement for Bumiputera investors.

Proceeds from the new share sale will be used to finance construction of a new factory in Penang with production floor space totalling 79,020 sq ft. Northeast also plans to purchase new computer numerical control machines, or CNC machines, which will raise its operating capacity by 8.5-25%.

Northeast has also earmarked some of the proceeds as working capital, repaying bank borrowings, and to defray estimated listing expenses.

Meanwhile, any money raised from the offer-for-sale will accrue entirely to selling shareholders including managing director Ng Chay Chin and his brother and senior operations director Ng Chai Hee.

Affin Hwang Investment Bank is the principal adviser, sponsor, sole placement agent and sole underwriter for the IPO. 

Source: The Edge Malaysia

Northeast Group files for ACE Market IPO to fund new RM50 mil factory

The Sarawak government will continue to empower downstream industries such as in biomass production, furniture and industries based on bamboo and engineered wood to further increase the production of high value-added wood products.

Sarawak Deputy Premier Datuk Amar Awang Tengah Ali Hasan said this empowerment measure is part of efforts to transform the timber industry in the state which is currently still focused on exporting the main product.

“Therefore, timber industry players are urged to be more committed to implementing the transformation of their activities and operations towards the production of high value-added wood products by using more raw materials from forest and bamboo plantations,” he said.

Awang Tengah who is also Sarawak’s Minister of International Trade, Industry and Investment said this at the Sarawak Timber Industry Development Corporation (STIDC) Annual Donation Ceremony here today.

According to him, the biomass industry has great potential to be explored in the development of the green economy.

“Biomass products such as wood pellets, biochar and charcoal briquettes are in high demand in the global market because they are more environmentally friendly fuels than fossil fuels,” he said.

Awang Tengah said the production of wood pellets from Sarawak has increased by 130 per cent from 35,522 tonnes in 2022 to 81,800 tonnes in 2023.

He said Japan, France and South Korea are the main importers of these wood pellets which also have great potential to generate green energy in Sarawak, in line with the state government’s green energy policy.

“At the same time, players in the timber industry are advised to adopt Industrial Revolution 4.0 (IR4.0) technology which emphasises the use of automation and digital technology to be more resourceful,” he said.

He said STIDC has produced the Engineered Wood Product Blueprint as a guideline for the development of the engineered wood industry in Sarawak, in addition to implementing research and product development initiatives in smart collaboration with local and foreign research and higher education institutions.

“The Sarawak Bamboo Industry Development Plan has been prepared by STIDC to develop this industry in a more planned manner. The global export value of bamboo-based products in 2022 was US$68 billion and is expected to grow at a rate of four per cent per year,” he added. 

Source: Bernama

Sarawak govt empowers downstream industries to produce high value wood products, says deputy premier

National carmaker Perodua is set to lead the charge in making EVs accessible and affordable to the masses.

Slated for the end of 2025, this initiative aligns with the New Industrial Master Plan 2030 (NIMP2030), aiming to transform Malaysia into a hub for affordable EV production.

On March 26, International Trade and Industry Minister (MITI), Tengku Datuk Seri Zafrul Abdul Aziz said on X that Perodua has been picked to be the nation’s lead brand to produce affordable EV.

He said Perodua’s role in breaking the cost barrier, could facilitate a broader adoption of eco-friendly transportation solutions such as EV.

“Yesterday I had a discussion with Perodua to find out more about the development of their EV project and how the government can help to make the project a success for the well-being of the people and the national economy.”

According to Soya Cincau, Perodua was reported developing a prototype EV in collaboration with an undisclosed international car manufacturer.

The anticipated 2025 launch of Perodua’s electric vehicle coincides with the expiration of the RM100K price ceiling for imported completely built-up (CBU) electric vehicles under the MITI’s Franchise AP policy.

The automaker previously unveiled a concept design for an electric vehicle, dubbed the Electric Motion Online (EMO), at the Malaysia Auto Show in May 2023.

It has the size of a Myvi and boasts a 50kWh battery capable of delivering a range up to 350km on a single charge.

Source: The Sun

Perodua to spearhead affordable EV charge in 2025

Malaysia’s export of microchips to the United States has hit 26 per cent, positioning it among the top countries in microchip exports.

Prime Minister Datuk Seri Anwar Ibrahim said that Malaysia is the country of choice for many nations looking to issue microchips.

“We are fortunate because of the decision of many countries to make Malaysia a new hub, particularly in the issue of microchips. 

“Right now, our exports to meet the demand of the United States have reached 26 per cent, one of the highest from any single country. 

“We have major investments in this field, such as those from German chipmaker, Infineon, as well as Nvidia, which is coming with a major programme for artificial intelligence,” he said in his speech at the grand opening of the Cybersecurity Centre of Excellence (CCoE) here today.

On the CCoE, Anwar said it served as a milestone in Malaysia’s journey towards creating a robust cybersecurity ecosystem, necessitating strong partnerships across the public and private sectors.

“We commend Blackberry for helping to upskill our next generation of cyber-defenders, accelerating our goal to bolster national and regional security and innovation.  

“We envision this center as a capacity-building hub for the Southeast Asian region, with a specific focus on enhancing threat intelligence sharing, and fostering regional cooperation in mitigating cybersecurity threats and combating cybercrime.

“As the chosen location for the establishment of the CCoE, Malaysia aims to deliver upon our shared goal to establish a globally competitive skills and learning ecosystem in the Indo-Pacific region,” he said. 

Anwar added that it is important for the country to forge international partnerships, specifically those harnessing advanced technologies like artificial intelligence and machine learning. 

“Through this strategic collaboration, we not only stimulate economic advancement and prosperity but also bolster the resilience of our cybersecurity infrastructure against the risks that pervade the digital landscape, by keeping the nation’s data, conversations, and citizens safe.”

Meanwhile Anwar said the 5G rollout in Malaysia has reached 80.3 per cent coverage as of February in populated areas, while internet coverage has reached 97.07 per cent. 

He noted that communications connectivity will continue to catalyse digital transformation, specifically in industry verticals such as manufacturing, health care, warehousing, agriculture, and more, in addition to spurring the growth of data centers and cloud services.

BlackBerry Limited has opened a world-class CCoE that will deliver cybersecurity training and cyber threat intelligence to help Malaysia and partners in the region better prevent, deter, and respond to cyber threats facing governments and organizations in the Indo-Pacific region.

The company also announced its new BlackBerry Cybersecurity Curriculum is now available for the first time through the new facility, offering a wide range of globally recognized course offerings and certifications to help grow a skilled cybersecurity workforce and ecosystem in Malaysia and the region. 

The new center will provide Malaysians and others in the region with increased opportunities for professional networking, knowledge-sharing, and common skills training, covering everything from cyber fundamentals to leadership and technical areas. 

The CCoE curriculum offers training courses on BlackBerry® cybersecurity products and services to upskill in areas like AI and machine learning, as well as highly-specialized courses delivered by the SANS Institute, Canada’s Rogers Cybersecure Catalyst, and other internationally recognized certification partners. 

It also offers select opportunities for scholarships for women cybersecurity professionals, with further plans to augment existing university curricula with CCoE student education programmes.

Source: NST

Malaysia among top countries in microchip exports

The government is committed to developing the semiconductor industry which is now a strategic source of income for the country, said Deputy Investment, Trade and Industry (MITI) Minister Liew Chin Tong.

In line with the expression, “semiconductor is the new oil”, he said trade and technology competition between China and the United States (US) in the semiconductor industry has benefited Malaysia.

This competition, according to Liew, has led multinational semiconductor companies to make strategic decisions to build a second supply chain and not to focus solely on one country to ensure a secure and resilient supply chain or “derisking”.

He was responding to a question by Datuk Ahmad Amzad Mohamed@Hashim (PN-Kuala Terengganu) who asked about the plans of the ministry in positioning the nation’s Electrical and Electronics (E&E) industry as a major semiconductor production hub to take advantage of the competition between the US and China in the chip war.

“Malaysia should seize the waves of competition between China and the US to provide a policy to create an environment for local companies to excel and generate high income,” Ahmad Amzad said.

Liew noted that many companies have selected Malaysia as a new location for their production facilities and the country has an advantage over other nations with a mature semiconductor industry ecosystem since the 1970s, especially the E&E cluster in Penang and Kulim, Kedah.

“Such investments are expected to continue to position Malaysia as one of the key investment destinations in advancing the global chip industry.

“Malaysia should seize this golden opportunity to expand the country’s semiconductor industry and become a high-value-added semiconductor producer with activities along the value chain, such as Integrated Circuit (IC) design, wafer fabrication, assembly and testing as well as technical marketing,” he said.

Liew emphasised that the government aims to ensure that investments in Malaysia will create value chains that create high-paying skilled jobs.

“We want to create a supply and value chain that encompasses local companies. We aim to create 100 technology companies with an annual revenue of RM1 billion before 2030.

“Currently, we only have nine local technology companies that can generate RM1 billion a year.

Another 10 companies generate between RM100 million and RM1 billion a year,” he said. 

Source: Bernama

MITI: Govt committed to develop semiconductor industry as strategic source of income

The investments entering Penang have yet to exacerbate the labour shortage situation due to the poor global demand.

As the global demand levelled off, the pressure on local companies to engage more workers to ramp production has reduced, according to The Free Industrial Zone, Penang, Companies’ Association president David Lacey.

“However, the manufacturing industry is subjected to cyclical swings, especially the electrical and electronics (E&E) sector, which is volatile.

“The authorities, the federal and the state governments should seize opportunities during this lull to address the labour shortage problem lest the situation returns to normalcy, and labour supply becomes a bigger issue again,” Lacey told StarBiz recently.

He noted that the manufacturing sector provided attractive salaries, bonuses, and compensation packages to workers to compete in the tight labour market in Penang.

“The higher wages come with expectations of improved productivity from individual engineers and also across the different departments in organisations,” he added.

According to Lacey, the semiconductor industry lacks skilled workers in the integrated circuit manufacturing and product design departments.

“These shortages are for skilled engineers with over five years working experience, which will take time to build and is harder to address quickly,” Lacey added.

On the RM35.8bil investment the state attracted for the nine months of 2023, Lacey said it would take at least 12 months, possibly up to 30 months, to implement the projects in phases.

“The new demand for talent grows from now till the end of 2024 and then throughout 2025.

“This can only be addressed by a ‘net migration’ of science and engineering talent to Penang from around Malaysia, creating additional pressures on housing and transportation in the state, as well as economic growth,” he added.

The RM35.8bil investment from 107 projects is expected to create 11,000 job opportunities.

Malaysia’s major competitors are Vietnam and Thailand, while India is the iceberg on the horizon.

“However, Malaysia has a huge advantage over Vietnam and India in the form of the large pool of ‘tacit knowledge’ in manufacturing built up over the last 50 years.

“Manufacturers in Penang have been making price-competitive, high-quality products for decades, and it takes a considerable amount of time and effort to train and develop a workforce who can deliver that.

“The way to boost Penang and Malaysia’s competitive edge is to build upon that strong foundation of tacit knowledge by applying it to advanced manufacturing and new opportunities – continuous change and evolution within companies to find new products and markets,” he said.

According to Lacey, Penang’s niche strength is producing products for markets with high reliability and quality expectations, such as automotive and premium consumer applications.

The opportunity now is to extend that niche into new markets such as medicine.

“For instance, leverage electronics manufacturing to make health monitoring or ‘telemedicine’ products where electronics and software provide wellness info to individuals and doctors via your smartphone,” he added.

Lacey added there was an unexpected surge in demand for industrial land triggered by the pandemic and trade war, causing a short-term shortage, while authorities seek to make ready new industrial parks.

Meanwhile, Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai said the E&E industry faced a labour shortage from 2022 till the first half of 2023.

“Since then, there hasn’t been a shortage due to the slowing down of the global economy.

“We see only strategic hiring currently,” Wong said.

However, there will be a looming labour shortage in the second half.

“As the E&E sector improves, we expect most companies to start hiring again in the second half of 2024.

“Some 15% of our engineers have left to work in Singapore, Australia, the United States and the United Kingdom, reducing local talent supply.

“We are also seeing hiring from Taiwan and China.

“Even those fresh out of university, without any prior working experience, will soon find themselves in demand in our industry,” Wong added.

He also noted the investment would take 18 to 24 months to implement if the new project needed land and building.

“If it is an expansion project with available space, the rollout period will be six to 12 months.

“However, the global economic climate will also determine how fast the project commences and ramps production,” he said.

Wong said the relevant authorities, such as the Economic Planning Unit, Malaysia Productivity Corp, and The Special Task Force To Facilitate Business, helped expedite the approval of expatriate passes for foreigners.

“Before June 2023, the time needed to issue such passes was six months to a year.

“Now, it takes only ten days to issue, which has strengthened our competitive edge,” he added.

Meanwhile, Aemulus Holdings Bhd chairman Datuk Seri Lee Kah Choon said foreign companies were migrating from China because of technically sensitive E&E products (TSP).

“If TSPs are sanctioned, foreign operations in China will eventually be eliminated by the Chinese local competitors too, which is one of the main reasons overseas companies are leaving China.

“The Chinese know that TSPs will be embargoed sooner or later.

“They will need to come out from China to look for alternatives, which is one of the reasons for the surge of Chinese investment overseas.

“Apart from that, the Chinese also need to expand their market overseas for products that have manufacturing advantages, such as solar panels and electric vehicles,” he said.

Lee said Malaysia’s E&E supply chain was manufacturing excellence in the back-end space.

“A non-targeted, general investment flow into Malaysia will not be sustainable because of her limited human resources.

“On the contrary, these non-targeted investments will cannibalise her limited resources,” he said.

Lee said the investment figure might indicate the nation’s attractiveness to investors.

“The figure is based on the Malaysian Investment Development Authority’s approval only.

“The approved projects may still land in other countries.

We need to monitor the implementation rate of these ‘approved’ investments closely,” Lee said.

Source: The Star

Lower pressure on firms to ramp up production

Automation to autonomy is the name of the game in the manufacturing industry. While automation remains important, there is a shift towards achieving manufacturing processes that are truly auto­nomous, says Marcelo Tarkieltaub, regional director of Southeast Asia at Rockwell Automation.

According to Rockwell’s latest State of Smart Manufacturing Report, 44% of Asia-Pacific (Apac) manufacturers plan to adopt smart manufacturing next year. Meanwhile, 88% of Apac manufacturers say they intend to grow or maintain their current level of employment, thanks to smart manufacturing technologies.

Some of the barriers to the adoption of smart manufacturing are employee resistance to technology, lack of skill sets to manage smart manufacturing implementation and lack of a clear definition of the value of smart manufacturing, according to Rockwell’s report.

To meet the demands of smart manufacturing, manufacturers should empower their employees with the necessary skills to adapt to evolving roles and collaborate effectively with artificial intelligence (AI) systems, says Tarkieltaub.

For instance, AI and augmented reality (AR) tools could be used to create virtual environments for experiential learning and knowledge sharing.

“The integration of AI plays a pivotal role in enhancing decision-making capabilities and driving cost-reduction. Although this transformation may not be immediate, cloud technology is emerging as a key enabler, providing a platform for agile and rapid implementation of autonomous solutions,” he says.

“The convergence of autonomy, AI and cloud technology marks a transformative phase in manufacturing, promising increased efficiency and responsiveness in the face of evolving industry demands.”

A couple of technologies are pivotal in the transition to smart manufacturing — cloud technology and generative AI. Cloud technology will facilitate the transition by providing a scalable and interconnected platform. Meanwhile, generative AI will play a significant role in shaping the future of the manufacturing process.

“For many industries, automation has been a game changer. The idea of removing human intervention as much as possible has resulted in faster production of everything and has reduced human errors in production,” Tarkieltaub points out.

Here’s where AI will lend a hand. “While automation has been pivotal in streamlining repetitive tasks, the focus is now expanding to imbue machines with decision-making capabilities, reducing the reliance on constant human oversight,” he says.

“AI is a key player in this evolution, as it empowers machines to analyse data, adapt to dynamic conditions and make informed decisions in real time.”

Rockwell has AI-driven systems capable of real-time parameter adjustments to enhance efficiency and product quality in the manufacturing process.

In collaboration with Microsoft, Rockwell has expanded its partnership to incorporate generative AI, which is Azure OpenAI Service, into industrial automation. Tarkieltaub explains the integration of generative AI will automate routine tasks, improve engineering efficiency, address labour shortages and accelerate time-to-market.

According to Rockwell’s report, 23% of operating budgets are spent on technology, although this varies across industries. This is as the Malaysian manufacturing sector is set to expand by 4.2% in 2024, according to the Fiscal Outlook and Federal Government Revenue Estimates report. The growth is driven by improved performances in both export- and domestic-oriented industries.

“No matter the investment level, budgets must be set with an eye firmly on the future. Manufacturers will need to invest in areas that help to address skills shortages, while increasing automation, machine learning and AI, in order to fully exploit the potential of technology and insights across the organisation,” he says.

This is why Tarkieltaub believes embracing smart manufacturing is not just a choice but a strategic imperative for manufacturers.

He recommends manufacturers start with a comprehensive assessment of current capabilities and set specific goals, build a cross-functional team that ensures collaboration across departments for a holistic approach, and invest in robust connectivity and integration which lays the foundation for seamless communication between devices and systems.

“The adoption of smart manufacturing varies across industries and may take several years as businesses navigate challenges such as technology integration, workforce upskilling and addressing cybersecurity concerns,” notes Tarkieltaub.

He reiterates that generative AI will accelerate the transformation of the manufacturing and industrial sectors. “With its ability to leverage vast amounts of data and predict outcomes, AI can significantly improve decision-making, optimise production lines, enhance product quality and reduce waste,” he says.

“As AI continues to evolve, new applications and capabilities will emerge, further shaping the landscape of smart manufacturing. Keeping abreast of the latest developments in AI is essential for industries looking to leverage these technologies for improved efficiency, innovation and competitiveness.”

Source: The Edge Malaysia

Automation: Focus on skill empowerment to build smart manufacturing workforce

Eco World Development Group Bhd is confident its largest green business park, Eco Business Park V (EBP V) will become a prime investment destination with a strong local and global appeal.

Eco World Development Group Bhd divisional general manager Eco Central Ho Kwee Hong said the impending completion of the RM150 million LATAR Express Interchange by the end of 2024 is set to enhance its connectivity.

“Currently the construction is ongoing at site and is happening very well and construction will be completing by end of this year. And by Q1 2025, basically we will open it for traffic in Q1’25,” she said at the signing for the purchase of industrial land and factories land EBP V involving Central Gate, North Gate and West Gate last Friday.

Ho said EBP V provides business spaces featuring ready-made factories and customisable industrial land, as well as outstanding infrastructure with environmentally friendly amenities and top notch safety features.

“I foresee our business park will be successfully evolving into a hub that is capable of attracting local and also international investors and fostering strategic partnership for mutual growth of everyone who reside in our business park,” she said.

Eco World Development Group Bhd’s 769 acres green business park, EBP V has signed agreements with 11 new companies for the purchase of land and factory lots.

EBP V is part of the Eco Grandeur township that is currently being developed via a joint-venture between EcoWorld Malaysia and the Employees Provident Fund.

A memorandum of understanding (MoU) was also signed between EcoWorld and GoldenHome Living Co Ltd to establish a strategic partnership in providing housing furniture such as kitchen cabinets, wardrobes and innovative product packages for EcoWorld’s residential, commercial and industrial developments.

This is the second signing event of EBP V.

Last year, EBP V held a similar event with more than 15 companies from various sectors signing on to various businesses at the park and some of the industrialists have started their business in EBP V now.

With a total GDV of RM3.5 billion, the green industrial park spans 769 acres across five meticulously planned phases: East Gate, West Gate, North Gate, Central Gate and South Gate.

Since its launch in 2017, EBP V has attracted over 400 diverse enterprises from various industries and its West, North and Central Gates are fully sold out.

Meanwhile, East Gate has been fully completed with an occupancy rate of over 90%.

“As one of our four revenue pillars, Eco Business Parks contributed a record-breaking RM1.04 billion to the Group’s total RM3.6 billion sales in FY2023,“ Eco World president and CEO Datuk Chang Khim Wah said in a separate statement.

“This pillar has seen exponential growth in recent years recording an overwhelming increase in sales of 374% from FY2020, Eco Business Parks will continue to be a magnet, attracting more regional and international investors and industrialists.”

Source: The Sun

Eco Business Park V aims to become prime investment destination

Teladan Group Bhd’s subsidiary Riverwell Resources Sdn Bhd (RRSB) has signed a memorandum of understanding (MoU) with Melaka Corporation (MCORP) to develop a 138 hectare (ha) German Technology Park at Ayer Panas, Jasin, Melaka.

The Melaka-based property developer said the proposed project aims to attract German investment into the state of Melaka and strengthen Malaysia-Germany economic ties. 

It encompasses various industrial developments, including industrial bungalow lots, semi-detached factories, shop offices, and centralised labour quarters.

Under the MoU, Teladan said both parties will collaborate on feasibility studies and development planning of the proposed project. 

It added that the agreement seeks to leverage on the construction expertise of Teladan and its landbank located along Jalan Gapam. 

At the same time, MCORP will lead the development and sales of the proposed project.

Teladan managing director Richard Teo Lay Ban said with a proven track record of developing over RM2.9 billion in combined gross development value (GDV) across residential, commercial, and industrial projects, the company is confident in its contribution to this project’s success.

“Looking ahead, we are optimistic about Melaka’s economic trajectory, driven by the 2024 Budget’s focus in enhancing Melaka’s competitiveness, alongside the government’s commitment to positioning the state as a global tourism hub and trade and investment centre. 

“With Teladan’s deep experience in Melaka, we are well-positioned to explore new development opportunities and unlock significant long-term commercial value,” it said in a statement.

Melaka chief minister Datuk Seri Utama Ab Rauf Yusof said this collaboration strengthens Malaysia’s position as a preferred investment destination within Asean and deepens economic ties with Germany. 

He added that the proposed project aligns with the government’s economic growth initiatives by promoting industrial advancement and attracting high-tech industries to Melaka. 

“By leveraging on Malaysia’s strategic location in Southeast Asia and its robust infrastructure, we aim to drive Melaka’s industry, business, and trade forward. 

“The proposed project represents a significant step towards advancing international trade activities, creating job opportunities, and broadening the country’s market access. 

“At MCORP, we are committed to supporting Malaysia’s economic growth and development,” he said.

This project builds on the robust trade relations between Malaysia and Germany, which have flourished significantly over the past decade. 

Germany has remained Malaysia’s top trading partner in the European Union, while Malaysia is now Germany’s largest trading partner in Southeast Asia. 

Furthermore, Malaysia continues to be an attractive destination for foreign direct investments (FDIs) with German companies investing €8.5 billion (RM43.61 billion) as of 2023.

As of Dec 31, Teladan holds a total of 433.6 ha of undeveloped landbank, with a significant portion located in Melaka with a potential GDV of RM2.7 billion.

Source: NST

Teladan Group to build 138ha German Technology Park in Jasin, Melaka

Neways, a key supplier to Dutch computer chip equipment maker ASML, has said it will build a new plant in Klang.

The facility will begin production in the fourth quarter of 2024, giving the company additional capacity in Asia, where it also has a plant in Wuxi, China.

“Neways will focus on developing and producing advanced modules and cabinets for some of the world’s most renowned players in the semiconductor sector,” the company said in a statement yesterday to announce the decision.

A Neways spokesperson said they could not disclose the size of the investment, but the company intends to grow its operation in Malaysia to 200 employees.

“The choice for Malaysia is largely driven by the country having a well-developed ecosystem…including a well-established mature semiconductor supply chain,” the company said.

Neways, which was de-listed in 2021 after being taken over by investment firm Infestos for €177 million (RM900.9 million), makes electrical control units, power controls, and wiring systems for ASML’s lithography products.

Source: Reuters

ASML supplier Neways to build new plant in Malaysia

Asia Digital Engineering (ADE) is well positioned for substantial growth in the coming years as plans are underway to establish a new maintenance, repair and overhaul hangar facility at the Kuala Lumpur International Airport (KLIA), its chief executive officer Mahesh Kumar says.

ADE is the engineering and maintenance subsidiary of Capital A Bhd.

Mahesh expressed his confidence that revenue will double by 2025 and progressive growth thereafter.

The new hangar facility, spanning 8.19 ha, is being constructed in two phases, with Phase 1 slated for completion in May 2024 and operational by August, while Phase 2 will follow swiftly, with operational readiness anticipated by October this year.

Mahesh Kumar revealed that the hangar facility will also see Phase 3 coming up once Phase 2 is completed, and the company has a first right of refusal with Malaysia Airports Holdings Bhd for a 2.07-ha piece of land near the facility in KLIA.

“The soil testing work has begun (for Phase 3), and we are planning to start construction once the second phase is ready, expecting completion by the end of 2026,” he told Bernama.

Mahesh said the hangar facility’s Phase 3 will accommodate another four lines of narrow-body aircraft.

Upon the completion of Phases 1 and 2, the hangar facility will make ADE the largest service provider in Malaysia and one of the largest in the region.

Mahesh further stated that the new hangar facility would provide flexibility for ADE to service wide-body aircraft such as A330 and B737 types.

Designed in an ‘L’ or boomerang shape, the facility would allow for maximum land use and more hangar lines.

Source: The Star

Capital A’s ADE expects to double its revenue by 2025

More Malaysian companies should consider investing in the semiconductor industry and make the leap to position themselves in the front-end of the global semiconductor ecosystem, said Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz.

In making the call, the Minister said although Malaysia is a prominent player in the global semiconductor sector for over 50 years now, there is still room for improvement.

“We have been a major player in the last 50 years and we now want to move up that value chain from back end to front end, but at the same time we also want more Malaysian companies to participate in the development of this ecosystem,” he said.

He said Malaysia has strengths in both the digital and green economies. While Malaysian companies play a big role in renewable energy, there is the need for improvement in the digital economy, namely in data centres.

“I think we should encourage more Malaysian companies to invest in this sector as well and MITI is actually engaging with local companies, investors, especially the government-linked investment companies, to see how they can participate as well,” he said on the sidelines of Industrial Take Off Year 2024 programme organised by Concorde Club at Wisma Bernama today.

Tengku Zafrul said MITI is working on institutionalising the process and invite local businesses to invest in the sector.

He pointed out that Malaysia has seen favourable flows of capital and investments as a result of trade tensions between two superpowers, the United States and China.

It was reported that Malaysia has emerged as a surprising victor in the global semiconductor business during the current trade war between the US and China.

The news report further said that manufacturers in Malaysia are harnessing the chance to upscale their operations and extend their global market footprint as rival manufacturers from the two global powerhouses face constraints.

source: Bernama

Malaysian firms should consider investing in semiconductor industry to make the leap in value chain – Tengku Zafrul

The Ministry of Investment, Trade, and Industry (MITI) is committed to accelerating and facilitating the implementation of the New Industrial Master Plan 2030 (NIMP 2023) to contribute to the country’s economic growth projections for the current year, said Minister Tengku Datuk Seri Zafrul Abdul Aziz.

In light of the economic growth targets, ranging from 4.0 per cent to 5.0 per cent this year, the effective execution of various plans, including the NIMP 2030, will be pivotal, he said on the sidelines of the Industrial Take Off Year 2024 event at Concorde Club at Wisma Bernama today.

“If you look at the economic growth, the target this year is around 4.0 per cent to 5.0 per cent. One of the key drivers will be the implementation of the various plans, including the NIMP. We have to ensure that execution is key.

“So that is why, at MITI, we will continue to accelerate the plans that we have announced, including the investments that have been approved. Now we must make sure those investments are reliased,” he said.

The NIMP 2030 was unveiled on Sept 1, 2023, marking a significant milestone in the nation’s journey towards the MADANI Economy.

According to Miti, it is a commitment to bolster the nation’s manufacturing sector, with ambitious microeconomic targets which include boosting the gross domestic product (GDP) of the manufacturing sector by 6.5 per cent annually. By 2030, this could translate into a substantial RM587.5 billion contribution to Malaysia’s total GDP.

The NIMP 2030 encompasses six key goals that aim to elevate Malaysia’s economic standing namely, increase economic complexity, create high-value jobs ppportunities, extend domestic linkages, develop new and existing clusters, improve inclusivity, and enhance ESG practices.

During the release of Bank Negara Malaysia’s Annual Report 2023, the central bank recommended that certain industry master plans that were started last year be accelerated to support economic growth.

Among the government’s 2023 announcements are the National Energy Transition Roadmap, which aims to position the country’s renewable energy sector as a major driver of growth, and the NIMP, which aims to advance manufacturing and other important sectors.

Source: NST

MITI to expedite NIMP adoption to bolster economic growth projections

JLand Group Sdn Bhd (JLG), the real estate and infrastructure arm of Johor Corporation (JCorp), has signed a memorandum of understanding with biotechnology powerhouse ALPS Global Holding Bhd to establish Malaysia’s very own biotechnology “Silicon Valley” .

With the global biotechnology market set to soar towards an estimated value of nearly four times its 2020 figure by 2030, the collaboration between JLG and ALPS is anticipated to emerge as Malaysia’s strategic initiative to seize upon this unparalleled growth trajectory. The impending development of the hub is anticipated to generate an estimated gross development value (GDV) of RM980 million.

Nestled within the dynamic circular city of Ibrahim Technopolis (IBTEC) in Sedenak, Johor, the hub is set to emerge as a comprehensive biotechnology and life sciences centre in the coming decade. Spanning vaccine manufacturing and development, genomics, regenerative medicines, immunotherapy and gene editing, the state-of-the-art research hub is primed to tackle the most pressing challenges of healthcare confronting humanity in the present day.

“We applaud ALPS’s achievements thus far and eagerly anticipate exploring more opportunities together. We believe this collaboration will signify a momentous milestone in biotechnology innovation on the global stage, fostering a thriving ecosystem conducive to pioneering research, knowledge exchange, and economic advancement,” said JLG deputy chairman and JCorp real estate and infrastructure director Datuk Akmal Ahmad

“Set to become one of our forthcoming ventures within IBTEC, the biotechnology hub will revolutionise the sector and serve as a significant addition to our established data centre and upcoming artificial intelligence (AI) hubs. It will unite new-age industrialists, digital pioneers, and lifelong learners in an advanced environment engineered for sustainable growth, aligned with the New Industrial Masterplan 2030 and the National Energy Transition Roadmap,“ he added.

ALPS Group CEO Datuk Seri Dr Tham Seng Kong said that with JLG’s expertise and Johor’s favourable investment climate, they are confident that their collaborative efforts will establish the biotechnology hub as the premier destination for biotechnology solutions, attracting top-tier industry leaders and talent to engage in groundbreaking research initiatives.

Through the partnership, JLG will play a pivotal role as both landowner and developer, nurturing an environment conducive to biotechnological endeavours, while ALPS will serve as the anchor tenant and operator, harnessing its established facilities, team of scientists, and extensive global biotechnology networks.

Souce: The Sun

BusinessJLand Group, ALPS sign MoU to develop biotech hub in Johor

The Federal Government has expressed hope that the Penang state government will assist the Penang Regional Development Authority (PERDA) to set up more factories and premises to produce halal products in the state.

Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said this was because Penang had the potential to develop its halal industry due to the expanding global market for halal products and the state’s good infrastructure.

“This year there is an additional RM32 million allocation for (PERDA) as the Penang Port is important for the export of halal products.

“Currently many halal products come from Thailand, we want halal products from Malaysia to increase as there is huge demand, especially from Middle Eastern countries,” he said at a Ramadan community event at Al-Amin Simpang Tiga Jamek Mosque here today, where 200 children received donations and assistance.

Penang Chief Minister Chow Kon Yeow and Education Minister Fadhlina Sidek, who is Nibong Tebal MP, were also present at the event.

Ahmad Zahid also pointed out that halal products not only revolved around the food industry but encompassed pharmaceutical and cosmetic products, which were highly sought after internationally.

“What PERDA is doing is in line with the Malaysian Halal Council’s plans for us to coordinate these activities throughout the state. I will also focus on the development of Halal Industrial Park in Penang,” he added.

Ahmad Zahid also stressed that the Penang state government had to move in tandem with the Unity Government by setting aside past petty issues to resolve public issues.

As such, he expressed his appreciation regarding the Penang state government’s commitment to assist PERDA projects, describing it as the benefits reaped from political parties that were no longer in conflict. 

Source: Bernama

Federal Govt hopes Penang will help PERDA set up more halal product factories

The Ministry of Investment, Trade and Industry (MITI) is still maintaining its target of 10,000 electric vehicle (EV) charging stations operating in the country by 2025, said its minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the review on this target would be decided during the Malaysian National EV Steering Committee (NEVSC) meeting which will be held soon.

Tengku Zafrul said to date a total of 2,020 EV charging stations are in operation nationwide.

The minister said although he believes the target looks aggressive, the industry players have assured him that it can be done as shown by current data where in the last few months, there are only 1,400 EV charging stations nationwide, but the figure has surpassed the 2,000-mark as of last month.

“So they said it’s moving fast enough, but let’s see because the next EV committee meeting will be discussing whether we should keep or drop the target. Industries players seem to be optimistic,” he told the media after attending the launch of Tesla’s largest supercharging station in Southeast Asia here, today.

The launch was officiated by the Raja Muda of Selangor, Tengku Amir Shah Sultan Sharafuddin Idris Shah.

Tengku Zafrul said on the government’s part, various incentives and initiatives are offered to EV industry players to ensure that the target set can be achieved.

“Based on our current policy, we want to expedite approval and also collaborate with other ministries and agencies such as the Ministry of Housing and Local Government, Fire and Rescue Department, Energy Commission, Tenaga Nasional Bhd, local authorities, and others.

“We also have tax incentive…it’s like chicken and egg, they want to see higher car sales, if not, (when) we have charging stations but no cars use it (to charge). So it has to be hand in hand,” he said.

On Tesla, Tengku Zafrul said the government congratulated the company on the opening of the largest supercharging station in Southeast Asia located at Gamuda Cove, here, which offers six Superchargers and 18 Destination Chargers.

“For Tesla, the company carries out both (business), charging station as well selling cars. So it builds the whole ecosystem.

“Sometimes, people have charging anxiety, range anxiety and so forth, but if we do it properly it can reduce the EV car owners’ anxiety,” he said.

The government is committed to ensuring that at least 30 per cent of the ultra-fast chargers built in Malaysia are open to the public for car brands other than Tesla, he added.

Meanwhile, Tengku Zafrul in his speech said the government welcomed Tesla’s rapid growth footprint in Malaysia, where since July last year, the carmaker has introduced the highly anticipated Model Y and Model 3 to the local market, launched the nation’s first Supercharger, and established the Tesla Experience Centre and its Malaysian headquarters in Cyberjaya.

“Tesla’s dedication to supporting Malaysia’s EV adoption is further evidenced by its collaboration with local installers, resulting in over 1,300 home charging installations.

“Tesla has also significantly enhanced our national EV charging network, by establishing 36 Supercharger stalls and 55 Destination Chargers across Malaysia. Notably, Selangor is home to 14 Supercharger stalls and 26 Destination Chargers, demonstrating its commitment to advancing our EV infrastructure,” he said.

Tengku Zafrul said Tesla plans to expand its charging network by adding new facilities in key locations such as Kuantan, Penang, Putrajaya, and Kuala Lumpur in the second quarter of this year.

“We welcome this development and appreciate Tesla’s contribution in developing charging stations for non-Tesla brands as well,” he said.

Source: Bernama

MITI maintains target of 10,000 EV charging stations by 2025

The automotive industry will continue to be an important sector propelling semiconductor demand through the decade, according to the US-based Semiconductor Industry Association (SIA).

In a blog post on Monday, SIA director of industry statistics and economic policy Robert Casanova said innovation in vehicle electrification, autonomy, and connectivity requires greater chip content in vehicles.

He said the current generation of cars, including electric vehicles, can have between 1,000 and 3,500 semiconductors.

“This number is expected to grow as consumers continue to prioritise advancements in vehicle safety systems (like advanced driver assistance systems), vehicle connectivity, and electrification when choosing a car.

“Despite the downturn in the global semiconductor market in 2023, demand for chips in the long term is expected to show vibrant growth,” he said.

Casanova said that in fact, World Semiconductor Trade Statistics (WSTS) projects double-digit market growth in 2024.

“And, to meet this growing demand, our industry has recently committed to expanding manufacturing capacity in the US through private investments of over US$250 billion (RM1.18 trillion) thus far,” he said.

Reviewing the past year, Casanova said that after reaching a record total of US$574.1 billion in chip sales in 2022, the chip industry experienced an 8.2% decline in global revenue to US$526.9 billion in 2023 due to normal market cyclicality.

He said that by the second half of last year, however, the industry experienced consistent month-on-month and year-on-year increases in sales, signaling the start of the current cycle.

Casanova said fuelling the rebound in the second half of last year were increased sales to the automotive and industrial sectors, and growing demand for a range of chips that are critical to artificial intelligence systems.

He said the increased sales to these sectors resulted in shifts to end markets’ share of global sales revenue.

“Newly released data on 2023 semiconductor sales by broad product category, known as ‘end use’, revealed which markets saw the largest sales increases,” he said.

Casanova said that historically, the PC/computer and communications end markets accounted for approximately two-thirds of overall sales, with sectors such as automotive, industrial, and consumer electronics accounting for the remainder.

But he said the breakdown of sales by the end market had shifted in recent years, and that trend continued in 2023.

He explained that according to the 2023 Semiconductor End-Use Survey by the WSTS, the PC/computer and communications end markets still accounted for the largest share of semiconductor sales in 2023.

“Sales to the communications industry, however, increased by two percentage points, while PC/computer decreased to 25% of sales.

“Meanwhile, the automotive sector experienced the largest growth in share of chip sales to become the third-largest end market in 2023,” he said.

Source: The Edge Markets

Automotive industry set to propel semiconductor demand, says SIA

Dutch renewable energy company Maatschappij Wilhelmina NV is investing US$60 million (RM283 million) to build a TG2 black pellet plant, the first of its kind in the world, that uses empty fruit bunches (EFB) from oil palms as feedstock to produce drop-in coal replacement fuel in Pahang

The plant with a production capacity of 15 tonnes an hour will be located in Phase 3 of the Gebeng Industrial Area in Kuantan. Construction is expected to begin in the fourth quarter of this year, be completed in 16 to 18 months’ time.

Wilhelmina CEO and co-founder Barthold van Doorn said it sees tremendous opportunities in generating renewable and carbon neutral energy through recycling industrial agricultural waste streams in Malaysia as the country is the second biggest producer of palm oil in the world.

“This TG2 black pellet which will use EFB as feedstock will be the first of its kind in the world. We are primarily focused on the Southeast Asian region and Malaysia ticked all the boxes for us to locate our first plant. As the second largest producer of palm oil globally, we understand Malaysia generates some 20 million tonnes of EFB waste a year.

“Instead of being left to decay or filling up landfill, these can be transformed into a clean and high-energy coal replacement that could reduce as much as 12 million tonnes of methane, equivalent to 300 million tonnes of CO2. This can certainly contribute towards Malaysian government’s target of becoming a carbon-neutral nation by 2050,” van Doorn told a press conference at the collaboration agreement signing ceremony yesterday between Wilhelmina and Ecoscience International Bhd for the engineering, procurement and construction (EPC) work of the plant via wholly owned subsidiary Ecoscience Manufacturing & Engineering Sdn Bhd.

Wilhemina will also outsource the operation, maintenance and management of the TG2 black pellet plant to Ecoscience.

Van Doorn said its investment into Malaysia is only the first step in its overall strategic expansion plan as the company has earmarked a number of locations in Malaysia, Japan and Southeast Asia.

“We are also looking at Indonesia, Cambodia, Vietnam and Japan to establish more TG2 black pellet plants that will also use other agricultural wastes such as coconut husks and rubber tree wood as feedstock,” he said.

Ecoscience managing director Wong Choi Ong said the plant is expected to be the largest project to be undertaken in the company’s history.

“Besides taking on the EPC role, we are expected to also operate, maintain and manage the plant for Wilhelmina upon commissioning. All in all, the plant is expected to give our orderbook a significant boost, as well provide consistent recurring income to our company in the future,” he added.

Source: The Sun

Dutch company Wilhelmina to build US$60m TG2 black pellet plant in Pahang

TT Vision Holdings Bhd said it is partnering with a Singapore-based company to set up a manufacturing base in Malaysia to produce automation equipment and related hardware and software products, particularly in the solar energy field.

The two companies will set up a joint venture (JV) to undertake research and development, production and sales of the products intended for Southeast Asian, European and American markets, said the automated test equipment manufacturer in a bourse filing.

The initial investment is RM166.66 million, of which RM24.99 million will come from TT Vision, giving it a 15% stake in the JV.

Its partner, Autowell (Singapore) Pte Ltd (ASPL), will invest the remaining RM141.61 million for an 85% stake in the JV.  ASPL is a subsidiary of Wuxi Autowell Technology Co Ltd, a company listed on the Shanghai Stock Exchange.

TT Vision said the JV will further its business diversification by fostering synergistic collaboration with foreign direct investments, opening up new market horizons, particularly in advanced solar equipment.

The JV, which is expected to be completed within six months, will be funded through a combination of internally generated funds and/or the proceeds to be raised from a fund raising exercise via the capital market, the group said.

TT Vision, which was listed on the LEAP Market of Bursa Malaysia in 2019, was relisted on the ACE Market in January 2023, raising total gross proceeds of RM28.73 million.

TT Vision has four business divisions: optoelectronics inspection equipment, discrete component and integrated circuit inspection equipment, solar cell inspection equipment, and vision-guided robotic equipment.

The stock closed down 2.6% or 2.5 sen to 92 sen on Monday, bringing the group a market capitalisation of RM431 million. Over the past year, the stock has fallen 24%.

Source: The Edge Malaysia

TT Vision forms JV to set up solar energy-related automation equipment manufacturing base in Malaysia

QES Group Bhd’s RM40 million plant in Batu Kawan Industrial Park (BKIP) is a testament to its commitment to uphold sustainable practices and innovation, in line with Malaysia’s vision to be a leader in environmental, social and corporate governance (ESG) in Southeast Asia.

In a statement on Monday, the automated test equipment manufacturer said the new plant, QES 2@BKIP, uses solar energy as a renewable source to decrease reliance on conventional electricity.

“QES 2@BKIP is designed to minimise its environmental impact and integrate with its surroundings, aiming to achieve green building certification by utilising eco-friendly materials and implementing renewable energy solutions.

“This project is expected to create 100 high-quality jobs within three years,” it said.

QES Group managing director Chew Ne Weng said the group is confident that QES 2@BKIP will further reinforce the group’s presence and foster its efforts for growth and success.

He said QES 2@BKIP will house Applied Engineering Technology (M) Sdn Bhd (AETM), its joint venture company with United States-based Applied Engineering Inc.

“This will double AETM’s factory space, from its current rented facility of 18,000 square feet, to approximately 30,000 square feet, and double its manpower requirements over the next three years.

“With a focus on ESG principles, QES is poised to lead the way toward a more sustainable future, positioning the company as a leader in the semiconductor industry and Malaysia’s vision for a sustainable future,” Chew added.

In the statement, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the New Industrial Master Plan (NIMP) 2030 has clearly laid out Malaysia’s industrial reform journey toward achieving higher economic complexity, technological prowess, sustainability, as well as economic inclusivity.

He said the convergence of two or more of these objectives through NIMP’s target sectors will help speed up Malaysia’s industrial reform.

“We see this in QES’ upcoming plant, where innovative hi-tech semiconductor manufacturing meets sustainability.

“Such convergence will also help Malaysia’s manufacturing sector move up the global value chain more quickly, while creating better-paying jobs for our people and contributing to our net-zero future,” he added.

Meanwhile, the Malaysian Investment Development Authority (Mida) chief executive officer Datuk Wira Arham Abdul Rahman said QES’ sustainability goals dovetail seamlessly with the prevailing trend among companies and investors to prioritise ESG considerations.

He said with ESG now a top priority, collaborative partnerships are essential for semiconductor firms to make progress on decarbonisation.

“Mida stands fully supportive of such endeavours, recognising their potential to not only generate high-quality job opportunities but also shape a more sustainable future for generations to come,” he added.

Source: Bernama

QES Group’s RM40 mil plant in Penang a testament to its ESG commitment

SLP Resources Bhd will spend RM20mil to upgrade and expand its production capacity in 2024 to meet rising domestic demand for its flexible plastic packaging products.

Group managing director Kelvin Khaw told StarBiz that in 2023, the domestic market contributed about 60% to the group’s revenue.

“We expect the trend to continue this year as Malaysia’s gross domestic product (GDP) is forecast to grow between 4% and 5%.

“Bank Negara is expected to maintain its rates at 3% throughout 2024 to provide liquidity in the market,” he said.

According to the Mordor Intelligence report, the Malaysian retail market size – estimated at US$89.66bil in 2024 – is expected to reach US$119.64bil by 2029, growing at a compounded annual growth rate (CAGR) of 5.94%.

“The Malaysian retail industry, a substantial consumer of flexible plastic packaging materials, has been one of the largest contributing sectors to the country’s GDP for decades,” Khaw said.

To stay relevant in the market, SLP will produce more premium products such as non-commoditised kangaroo pouches, mono films and machine-direction-oriented (MDO) PE packaging products in 2024.

“Our MDO-PE films, which have enhanced durability and performance, have generated solid enquiries and have seen improved sales,” he said.

Khaw said the group will acquire a workers’ dormitory to house 200 employees.

He said Japan, the group’s key export market, will experience gradual growth thanks to its robust tourism sector.

“Japan’s economy is expected to grow at 1% in 2024, and its retail sector at 1.4% per annum till 2032, according to an IMARC research report.

“The growth is slow, but it is growth nevertheless.

“The yen remains weak and continues to stimulate tourism, which has, in turn, boosted our sales of kitchen and rubbish bags to Japan,” he said.

Khaw said the GDP of the group’s other important markets, such as Australia and New Zealand, is expected to grow by 2.25% and 2%, respectively, this year.

According to a recent Allied Market Research report, the global flexible packaging market, valued at US$197.4bil in 2022, is projected to reach US$325.8bil by 2032, growing at a CAGR of 5.1%.

The price of crude oil and resin have stabilised to around US$83 a barrel and US$1,000 a tonne, compared to US$970 per tonne and US$86 per barrel in January 2023, respectively, enabling the group to produce premium-quality products cost-effectively, he said.

According to Khaw, the upcoming US presidential election has prompted the consumer goods industries, in particular, to keep inventories low, resulting in snail pace demand across the globe.

“Another concern is the US interest rates.

“The inability of the last rate hike to force US inflation down to 2.9% has prompted analysts and investors to caution that a rate cut may not happen in May 2024 as anticipated.

“Currently, the interest rates in the United States hover around 5.25% to 5.5%. The last rate hike was in July 2023,” he said.

Khaw said the recurring Panama Canal drought and the Red Sea conflict have substantially increased logistics costs and delayed shipments of essential raw ingredients.

“About 20 vessels are currently allowed to cross the canal compared to 36 in the first half of 2023.

“Shipping companies, opting to avoid the delays, are now taking longer routes around the Cape of Good Hope, Cape Horn and the Suez Canal to reach their destinations.

“For example, the restriction of vessels crossing the Panama Canal has delayed SLP’s import of raw materials from the United States.”

He said these concerns and challenges have prompted the management team to adopt a circumspect business approach to growth for 2024.

In 2023, the group posted RM162.33mil in revenue compared with RM185.74mil in 2022, a 12.6% drop due to the weak demand from overseas and local markets.

Its pre-tax profit decreased to RM14.24mil from RM25.54mil in 2022.

Source: The Star

SLP expanding production capacity to meet rising demand

Malaysia’s upstream oil and gas (O&G) industry remains vibrant and continues to attract investors or petroleum arrangement contractors (PACs), as evidenced by participation in previous petroleum bidding rounds, said BMI.

The Fitch solutions company reckoned that the nation’s upstream sector is poised for further growth in 2024 as the government continues to promote offshore blocks for exploration.

In 2023, Malaysia made significant progress in the upstream oil and gas segment as Petroliam Nasional Bhd (Petronas) and PACs recorded 21 exploration discoveries and two exploration-appraisal successes.

According to Petronas, all discoveries could contribute to over 1 billion barrels of oil equivalent of new resources for Malaysia in 2023, with 16 discoveries located in the Balingian, West, and Central Luconia basins of Sarawak, while three others are located in Sabah, BMI said.

“New discoveries certainly boosted Malaysia’s efforts to reverse declining O&G production and could support its liquified natural gas (LNG) production and exports,” it said in its industry trend analysis today.

It also highlighted that Petronas has made a good start to 2024, securing seven production sharing contracts (PSCs).

The Malaysia Petroleum Management (MPM), which manages Malaysia’s oil and gas reserves, awarded seven PSCs for six exploration blocks and one discovered resource opportunities (DRO) cluster offered under the Malaysia Bid Round 2023 (MBR 2023).

The new PSCs were awarded to Petronas, E&P Malaysia Venture Sdn Bhd (EPMV), Petroleum Sarawak Exploration & Production Sdn Bhd (PSEP), SMJ Energy Sdn Bhd, INPEX Malaysia E&P, PT Pertamina Malaysia Eksplorasi Produksi, Jadestone Energy Inc, Sarawak Shell Bhd and E&P O&M Services Sdn Bhd.

Petronas estimated that the contracts are expected to generate more than RM1.3 billion (US$277 million) worth of capital investment in the exploration activities.

In total, BMI said Malaysia has signed nine PSCs in the first quarter of 2024.

It said Petronas has also launched the Malaysia Bid Round 2024 (MBR 2024), offering five exploration blocks and five DRO clusters to potential investors.

“The winners of the bid round are expected to be announced in the third quarter of 2024.

“The successive launches of petroleum bidding rounds, with a focus on natural gas exploration and production, suggest that natural gas would remain a vital component of Malaysia’s energy supply mix,” it noted.

BMI added that new oil and gas discoveries are essential to support Malaysia’s long-term energy security, but it remains uncertain whether all new discoveries will be developed.

“However, incentives to develop stranded oil and gas resources remain high, given the sustained strength in global oil and gas prices and upward projections for domestic natural gas demand growth as well as to support Malaysia’s oil and gas production targets of two million barrels of oil equivalent per day by 2025 and beyond.

Source: Industry

Malaysia’s upstream O&G industry remains attractive to investors — BMI