Zhuhai CosMX Battery Co Ltd, a Chinese manufacturer of batteries, plans to build a manufacturing plant in Kedah involving investment of RM1 billion.

The new facility will be constructed in several phases at the Kulim East Industrial Park, with groundbreaking expected to begin in the fourth quarter of 2024, according to the Malaysian Investment Development Authority (Mida). The project is set to create over 1,000 jobs, Mida said.

“Revolutionising battery technology is no easy task,” said Mida chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid. “Their cutting-edge expertise is going to have a big ripple effect on our local ecosystem.”

CosMX — which makes lithium-ion batteries for devices ranging from laptops to drones — has three main production bases in Zhuhai, Chongqing and Zhejiang respectively. The company has also established a factory in India.

The company also manufactures battery packs for electric vehicles and provides industrial energy storage systems.

The investment marks a significant step in CosMX’s global strategic deployment, said its chairman Xu Yanming. “We are looking forward to build this factory into a model project, achieving success not only economically, but also setting a benchmark in promoting sustainable development.”

Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the investment by CosMX underscores Malaysia’s position as a preferred investment destination for tech-based companies and the country’s seriousness in swift implementation of its commitments to investors.

Zafrul also said his ministry and Mida’s strong drive to create the right environment for businesses to thrive had resulted in increased investment flows, more high-skilled jobs, as well as a stronger boost to the electrical and electronics supply chain and semiconductor exports.

Source: The Edge Malaysia

Chinese battery maker Zhuhai CosMX to invest RM1b to build plant in Kedah

Malaysia’s manufacturing sector is poised to see “optimum growth” in the second half of 2024 (2H2024), driven by supportive domestic policies and strong global demand, said the Federation of Malaysian Manufacturers (FMM) on Monday.

Key indicators including business activity and production volumes point to strong growth ahead in the sector, FMM president Tan Sri Datuk Soh Thian Lai said at the release of the 25th edition of its Business Conditions Index survey.

“Businesses are worried about global uncertainties and demand from international markets. However, despite these concerns, the demand for Malaysian-made goods has shown an increase in our export rates over the past several months,” Soh said.

Further rebound in exports is expected in 2H2024 (index value seen rising 11 points to 100), ahead of a modest increase in domestic sales projection (up three points to 95), the report showed.

FMM has revised upwards its forecast on Malaysian gross domestic product to 5.1% (previously 4.1%), to be driven by a robust recovery path on strong exports, higher demand for private consumption, and more investments coming in.

Malaysia’s manufacturing sector grew 1.9% year-on-year in the first quarter of 2024 (1Q2024), and was higher at 4.7% in 2Q2024. FMM said that the manufacturing sector delivered a “commendable performance” in 1H2024, with overall business conditions improving modestly. 

The percentage of respondents looking at higher sales abroad in 2H2024 stood at 26%, compared with 24% of respondents who were expecting higher sales in 1H2024.

Similarly, less respondents see lower sales (27%), compared with 36% of respondents during the 1H2024 forecast survey.

“Factors such as recovery in the global market and Malaysia’s strategic trade agreements may have bolstered [the] respondents’ confidence in export prospects,” the report said.

The survey also indicated that production volumes are expected to rise by 11 points to 110, with higher capacity utilisation supported by improved supply chains, increased capital investment, and a favourable economic outlook.

“In the first seven months of 2024, Malaysia’s total trade improved close to 10% to about RM1.652 trillion. Of this, manufactured goods for exports [were] about RM735 billion, or 85.5% of total exports. This is substantial,” Soh highlighted.

The survey included responses from 616 participants across 16 industry sub-sectors — including food, beverages and tobacco, electrical and electronics, fabricated metals, and plastic products — with majority of respondents based in the Klang Valley, Johor, and Perak.

Production costs seen rising in 2H2024

The survey also added that 49% of respondents identified upward pressure on input costs — driven by supply chain disruptions, energy price hikes, and raw material shortages — as a critical concern.

The expected cost of production index increased slightly from 159 to 162, reflecting ongoing inflationary pressures.

However, Soh noted that these cost pressures could ease in the coming months, as companies maintain higher inventory levels, typically between three- to six months, to meet extended order periods.

“They cannot rely on just-in-time inventory management. By having sufficient stock, especially during periods of high costs, companies can take advantage of lower input costs when the ringgit strengthens. This would reduce the cost of imported raw materials, thereby easing the overall input cost burden,” Soh said.

Other significant concerns included weak demand, cited by 51% of respondents; the depreciation of the ringgit (47%); and the increasingly competitive business landscape (47%).

Source: The Edge Malaysia

Malaysian manufacturers foresee strong exports to continue in 2H2024, says FMM

AS HYDROGEN continues to fuel Malaysia’s ambitions of being among the world’s leading hydrogen economies by 2050, the idea of producing that resource comes in the form of using Sarawak’s many hydroelectric projects.

However hydrogen, although an abundant element in our world, remains bound to other elements and extracting that has been a major focus for world economies eager to pivot towards cleaner energy sources.

At the current moment, though, the production cost of green hydrogen is higher than fossil fuels, which makes it expensive, especially for developing countries that are rich in oil and gas.

Even building the facility to produce, store and distribute hydrogen will require significant investment.

However, with advances in technology, more ways of extracting hydrogen would inevitably be available.

One of these methods may even help solve the ongoing issue of the world’s ever-increasing accumulation of waste, and that is the extraction of hydrogen from waste products.

Rising challengesWhen it comes to waste accumulation, Malaysia faces a mounting issue: according to an article in The Star early this year, Malaysians dispose about 39,000 tonnes of solid waste each day.

That’s the same as roughly 1.17kg per person, quoting the Solid Waste Management and Public Cleansing Corporation (SWCorp).

SWCorp also mentioned that food makes up the biggest component of domestic waste at 30.6%, followed by plastic (21.9%), paper (15.3%), disposable diapers (8.2%) and hazardous household waste (4.2%).

The United States International Trade Administration also pointed out that Malaysia could potentially run out of land for landfills come 2050.

Greenpeace Malaysia also noted that there have been uncounted illegal dumping grounds for domestic waste and hazardous scheduled waste, like e-waste and chemical wastes.

One solution is to convert waste into energy.

The hydrogen equation

There have been technologies that aim to convert waste into hydrogen; a myriad of methods that a colour spectrum has been used to assign to how clean the gas was produced.

Although initially limited to just three colours—grey (using fossil fuels), brown (like grey but carbon is captured) and green (using renewable sources)—there is now a whole gamut that runs from yellow (using solar) to turquoise (using heat without combustion).

To convert waste into hydrogen, experts can consider several waste sources.

With the discussion of food waste, converting this looks to be the most obvious, as this is a form of organic waste.

Organically produced

But organic waste is more than just food; it also includes municipal solid waste, agricultural residues and other organic materials.

These can be decomposed through anaerobic digestion to produce biogas rich in methane, which then is steamed to produce either grey or blue hydrogen, as the process also disperses a small amount of carbon monoxide and dioxide.

Advancements at the Pacific Northwest National Laboratory in the US in 2021 have shown ways of even producing green hydrogen from methane.

Furthermore, the American Chemical Society published a story on how a chemical engineer at the Council of Scientific and Industrial Research-Indian Institute of Chemical Technology converted food waste from the institute’s cafeteria using microbes that produced a gas rich in hydrogen.

For Malaysia especially, the palm oil industry produces a large amount of waste that includes empty fruit bunches, palm oil mill effluent and palm kernel shells, more of which will be explored further below.

Rehabilitating plastics

In terms of wastes, plastics itself presents quite a conundrum: you can’t live without it and yet, it is one of the world’s major forms of pollution, due to its non-biodegradable nature.

However, plastics can be broken down to yield carbon monoxide, hydrogen and carbon dioxide via a method called gasification, whereby steam or oxygen is heated to about 700°C, without combustion.

This produces a form of grey hydrogen, after which the carbon can be captured and sequestered.

A new method is to run plastics under electricity for a short burst, which heats them up to about 2,800°C, a process that apparently converted up to 93% of the hydrogen atoms present in the polymer into hydrogen gas with a purity of 87%, according to a research at at Rice University in Houston, Texas.

The process produces not only hydrogen but a form of graphene, a strong yet flexible material that is also light and highly resistant that is highly valued by car manufacturers.

Industrial revolution

With regards to wastes running from industrial activities, one could look at Malaysia’s palm oil industry, simply because as one of the world’s largest palm oil producers, the amount of waste it generates has to be addressed.

The Malaysian Investment Development Authority (Mida) reported that over 99% of the emissions from industrial waste water treatment and discharge originate from palm oil mill effluent.

Much of these can be repurposed as raw materials for conversion to energy.

According to the Science, Technology and Innovation Ministry (Mosti), Malaysia produces more than 90 million tonnes of biomass from palm waste that can potentially be processed using pyrolysis to produce turquoise hydrogen, with solid carbon as a byproduct.

The ministry aims to conduct further research with NanoMalaysia Bhd on ways to produce turquoise hydrogen through advanced microwave plasma technology.

The pulp and paper mill industry also represents another opportunity to convert waste to hydrogen.

Scientific research has revealed that hydrogen-methane can be produced from pulp and paper sludge, as well as food waste, using “mesophilic-thermophilic anaerobic co-digestion”.

That basically means the wastes are broken down by bacteria under specific temperature conditions and that releases hydrogen as well as methane.

Furthermore, a byproduct of the pulp and paper industry, called black liquor can be gasified to produce hydrogen-rich syngas.

Another form of waste is wastewater treatment sludge, which can also be processed via anaerobic digestion or pyrolysis to produce hydrogen.

Although most of these methods are still in their nascent stages, some countries have already started, one being TheGreenBillions Ltd in Pune, India and the Project Hyield in Europe.

Malaysia could pave the way for South-East Asia in reforming hydrogen from wastes, as this is potentially a way for the country to increase its hydrogen production while pursuing a circular economy.

Source: The Star

Making wastes-to-hydrogen conversion a reality

Boeing has relaunched its manufacturing facility as Boeing Composites Malaysia which provides composite products and subassemblies for all of its commercial airplane models including the 737 MAX and 787 Dreamliner.

Boeing fully acquired Aerospace Composites Malaysia in December last year, a joint venture with Hexcel Corporation.

The renamed facility is Boeing’s first wholly owned manufacturing facility in Southeast Asia.

The site employs an all-Malaysian workforce of approximately 1,000 people.

Boeing also announced a RM44,000 higher education grant to the Institut Kemahiran Belia Negara (National Youth Skills Institute) in Jitra, Kedah to train 30 students in machining technology and fabrication, while guiding them toward employment possibilities in the aerospace industry.  

“Malaysia needs both speed and scale to accelerate manufacturing practices and proactively develop the country’s aerospace industry,” said Investment, Trade and Industry Ministry secretary general Datuk Hairil Yahri Yaacob.

“The ministry, through MIDA and NAICO Malaysia, is committed in creating an environment that supports rapid industrial growth, particularly in high-value sectors like aerospace.

“I am confident that Boeing has found Malaysia more than capable to support the sophistication required to manufacture quality parts for your global customers,” he added.

Boeing Southeast Asia president Penny Burtt said the advanced facility and talented team in Kedah play a vital role in Malaysia’s thriving aerospace industry.

“We are honoured to collaborate with the Malaysian Investment Development Authority and recognise Boeing Composites Malaysia’s exceptional safety and quality record,” said Burtt.

Boeing’s 77-years partnership with Malaysia supports the development of aerospace and defense capabilities through safety training, sustainability workshops, supply chain development, university collaborations and community impact initiatives.

Source: NST

Boeing relaunches Malaysian plant making composite parts, subassemblies of all its commercial aircraft

Global aerospace company Boeing is committed to developing Malaysia’s aerospace industry ecosystem to tap the growing demand in the country and Southeast Asia.

Boeing Southeast Asia president Penny Burtt said the company’s footprint expansion in this country was timely as Malaysia was a crucial part of Boeing’s global supply chain.

“It is a very timely move for Boeing. We see the long-term potential for the aerospace industry in Malaysia and contributing towards developing the whole ecosystem here.

“Malaysia is a crucial part of the Boeing global supply chain with the growing demand in Southeast Asia.

“Our advanced facility and talented team in Kedah play a vital role in Malaysia’s thriving aerospace industry.

“We are honoured to collaborate with the Malaysian Investment Development Authority (MIDA) and recognise Boeing Composites Malaysia’s exceptional safety and quality record,” she said after the relaunching of its manufacturing facility, Boeing Composites Malaysia (BCM) in the Bukit Kayu Hitam Industrial Area today.

The facility is Boeing’s first wholly-owned manufacturing facility in Malaysia and the Southeast Asia region, following the acquisition of shares in Aerospace Composites Malaysia Sdn Bhd (ACM) held by Hexcel Corp, last December.

Present were Kedah Investment and Industry Committee chairman Dr Haim Hilman Abdullah, United States ambassador to Malaysia Edgard D. Kagan, Investment, Trade and Industry Ministry (MITI) secretary-general Datuk Hairil Yahri Yaacob and MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid.

During the ceremony, Boeing also announced a RM44,000 education grant to Institut Kemahiran Belia Negara in Jitra, to train 30 students in machining technology and fabrication, while guiding them toward employment possibilities in the aerospace industry.

In December 2023, Boeing fully acquired ACM, a joint venture with Hexcel Corporation.

The renamed Boeing Composites Malaysia facility provides composite products and subassemblies for all Boeing commercial airplane models, including the 737 MAX and 787 Dreamliner.

The site employs an all-Malaysian workforce of approximately 1,000 people.

Hairil Yahri expressed appreciation to Boeing for its commitment to Malaysia.

“Malaysia needs both speed and scale to accelerate manufacturing practices and proactively develop the country’s aerospace industry.

“MITI, through MIDA and NAICO Malaysia, is committed to creating an environment that supports rapid industrial growth, particularly in high-value sectors like aerospace. We are grateful for Boeing’s commitment to Malaysia,” he said.

Sikh Shamsul, meanwhile, said this was a strong testament to Malaysia’s skilled workforce and its strategic position in the aerospace industry.

“MIDA is fully committed to supporting Boeing Composites Malaysia’s continued success in the global aerospace supply chain.”

Meanwhile, Kagan lauded Boeing’s commitment to a long-term investment in Malaysia as a significant sign of the American-based company in the country and its workforce.

“For us this is a very significant event. It is significant because this is a sign of Boeing’s confidence in Malaysia, by expanding their presence in various parts of the country.

“This is their biggest manufacturing facility in Southeast Asia and Boeing employs some 1,000 local talents, and they have proven themselves as a very capable workforce in moving up the value chain,” he said.

Source: NST

Boeing committed to developing Malaysia’s aerospace industry ecosystem

Sime Darby Bhd’s industrial business, especially in Australia, will continue to be the star performer amid the intensifying competition faced by the group in the motor segment.

The industrial division, which is a distributor for construction equipment maker Caterpillar, was a key contributor to Sime Darby’s strong bottom line in the financial year ended June 30, 2024 (FY24).

Core net profit rose 8% year-on-year (y-o-y) to RM1.41bil, after one-off adjustments.

Strong contributions from the industrial segment and the UMW division acquired in December 2023 were able to more than offset the China motor business registering over RM100mil in losses due to stiff competition.

CGS International (CGSI) Research said the industrial division remained its bright spot, with the Australian order book staying strong, buoyed by stable demand from the mining sector and new growth prospects linked to the energy transition.

“This is also supported by the robust order book valued at RM4.4bil as of June 2024.

“Significant growth is anticipated from China and Singapore, with additional opportunities arising from data centre and infrastructure projects in Malaysia.

“Data centre projects represented less than 35% of its Malaysia order book,” the research house said in a note.

Hong Leong Investment Bank (HLIB) Research expects Sime Darby to continue to leverage onto the strong momentum of its industrial segment, driven by mining in Australia for FY25.

“Expect earnings to sustain in FY25, underpinned by its high order book of RM4.34bil while commodities prices remain high, with margins expected to sustain on strong demand for maintenance and overhaul services,” it said.

On the motor segment, it opined that FY25 results may weaken, partly dragged by the continuous competitive China market conditions with heavy price discounting.In addition, sales may normalise in the Malaysian motor market after a strong FY24 showing and the Australia market may remain weak.

HLIB Research has cut its earnings forecast for FY25 and FY26 by 7.1% and 6.8%, respectively.

On the contrary, TA Research adjusted the earnings forecasts for FY25 and FY26 upward by 0.9% and 1.8%, respectively, after updating the FY24 earnings.

It also noted that Sime Darby’s fourth-quarter of FY24 results came in within expectations.

After excluding exceptional items, the core net profit declined by 20.4% y-o-y to RM375mil, despite a 41.4% increase in revenue. The weaker performance was primarily due to losses from the Motors Mainland China operations and reduced dividend income.

Post-briefing by Sime Darby, it said the China automotive market remains challenging, with heavy discounting being a key issue.

However, there are signs of rational behaviour among both auto dealers and manufacturers, as the rate of discounts has reduced.

“All in all, the timeline for a full recovery is still uncertain. Besides, in reviewing the business in China, the group plans to shut down several branches and is looking to phase out certain brands.

“Cost-saving measures are also implemented as part of this strategy.

“The automotive division in Malaysia is expected to have a strong year in 2024. However, with the entry of Chinese electric vehicles (EVs) into the market, competition is expected to intensify,” she said.

Meanwhile, CIMB Research said full-year contribution from UMW will drive stronger FY25 earnings for Sime Darby.

UMW made up 14% of Sime Darby’s revenue in FY24.

“The group expects to complete the divestment of Komatsu distributorship from UMW Heavy Equipment in the first quarter of FY25.

“We expect Perodua to maintain a healthy sales momentum in the second half of 2024 underpinned by healthy backlog orders, which stood at over 100,000 units.

“UMW-Toyota’s backlog orders fell from 23,000 units at end-March 2024 to 20,000 units at end-June 2024 amid stiff competition from Honda and new EV players,” the research house said.

Source: The Star

Sime Darby to ride on industrial business

Kibing Group, a China-listed company specialising in glass manufacturing and solutions, is considering Sarawak as a potential site for its strategic expansion into solar glass manufacturing for solar panels.

Deputy Premier Datuk Amar Awang Tengah Ali Hasan, who also serves as the Minister for International Trade, Industry, and Investment (MINTRED), met with Kibing Group chief executive officer Guan Ming on Wednesday to discuss the proposal.

The Sarawak government delegation, led by Awang Tengah, has expressed strong support for this expansion.

Kibing Group already has a significant presence in Malaysia, with operational facilities in Negeri Sembilan and Sabah, further extending its global footprint.

To ensure the project’s success, Sarawak government has committed to facilitating the entire process, recognising the importance of the value chain from raw material extraction and processing to the final production of solar glass.

Source: New Sarawak Tribune

China-listed company eyes Sarawak for expansion

Pantech Group Holdings Bhd’s (KL:PANTECH) planned listing of its two manufacturing units will allow the company to monetize the business, Phillip Capital said on Monday.

The listing of Pantech Global Bhd — the special purpose vehicle housing Pantech Stainless & Alloy Industries Sdn Bhd (PSA) and Pantech Steel Industries Sdn Bhd (PSI) — will unlock value, raise funds for capacity expansion, and strengthen its global market presence, said Phillip Capital.

“We view this deal positively,” said Phillip Capital, one of only two research houses covering the stock, and maintained its “buy” call on the stock and a target price of RM1.42. “Investors looking to invest into a regional manufacturer may find Pantech Global’s listing to be compelling.”

Shares of Pantech Group have racked up a 16% gain so far this year. TA Securities, the only other research house covering the stock, also has a “buy” call on the stock.

Under the proposed listing, Pantech Global will acquire PSA and PSI from Pantech Group for RM294 million in shares. A total of 587.77 million new shares of Pantech Global at 50 sen apiece will be issued to the holding company for the acquisition.

Upon completion of the proposed acquisitions, Pantech Global will undertake an initial public offering (IPO) of 262.23 million new shares, representing 30.85% of its enlarged issued share capital. The issue price will be determined later.

If IPO shares are priced at 50 sen, Pantech Global would be valued at 8.5 times the earnings in the financial year ended February 2024 (FY2024) and in line with the main holding company’s own valuations at nine times, according to Phillip Capital’s estimates.

The increase in minority interest following the reduced stake in Pantech Global is expected to reduce the house’s earnings projection for FY2026-FY2027 by 7%-8%.

“However, the capital raised for expansion is expected to drive future earnings growth, which has yet to be reflected in our earnings forecasts,” Phillip Capital added.

Source: The Edge Malaysia

Pantech’s planned listing of manufacturing units positive, compelling — Phillip Capital

The Ministry of Finance (MoF) urges the electrical and electronics (E&E) sector to approach skilled talent development holistically to ensure Malaysia pulls ahead of competitors.

Finance Minister II Datuk Seri Amir Hamzah Azizan said sustaining a strong talent pipeline remains a key challenge not only for Malaysia but also for other countries vying for space within the sector.

“I believe that if we can resolve this issue, we will pull ahead of the competition. Therefore, we need a long-term view when it comes to talent development.

“This includes instilling interest in science, technology, engineering, and mathematics (STEM) in schools as well as ensuring that career options are appealing so that students choose to pursue pathway towards the industry,” he said in his speech at the Malaysia Semiconductor Industry Association (MSIA) Merdeka celebration 2024 here today.

Amir Hamzah said the government recognised the importance of the sector given that the E&E sector currently made up over 40 per cent of the country’s total exports, a clear indication that the sector plays a pivotal role in contributing to Malaysia’s economic growth.

He added that the government is committed to supporting the industry whereby it recently announced an MoF-led programme, GEAR-uP, that is designed to boost growth in crucial economic sectors.

Under the programme, six government-linked investment companies (GLICs) have committed to investing RM120 billion in domestic direct investments (DDI) over the next five years, Amir Hamzah said.

The six GLICs involved are Khazanah Nasional Bhd, the Employees Provident Fund (EPF), Kumpulan Wang Persaraan (Diperbadankan) [KWAP], Permodalan Nasional Bhd (PNB), Lembaga Tabung Haji (TH), and Lembaga Tabung Angkatan Tentera (LTAT).

At the MSIA event, Penang Chief Minister Chow Kon Yeow said being one of the top global semiconductor hubs, the state must not be dependent solely on foreign direct investment (FDI) but place importance on domestic direct investment (DDI) too.

“Now we must begin departing from the term ‘Made in Malaysia’ to ‘Made by Malaysia’ by nurturing local startups, capable of producing Malaysia’s very own intellectual property (IP) such as in chip design.

“Penang intends to create a comprehensive chip manufacturing ecosystem that allows the expansion of larger chip manufacturers while nurturing the growth of future global champions to ensure Malaysia remains a global leader in this critical industry,” he noted.

Source: Bernama

MoF urges E&E industry to develop skilled talent holistically

MMS Ventures Bhd is expected to return to the black in 2024, mainly driven by the medical device industry.

Group managing director T K Sia told StarBiz that the group’s bespoke automation manufacturing system for the medical industry would generate about 40% of its 2024 turnover.

“We are currently supplying to multinational corporations or MNCs involved in the medical device manufacturing business. Some of these are in Malaysia.

“The demand is steady and will gradually improve. We believe our strategy to be profitable this year should be achievable, barring unforeseen circumstances,” Sia said.

In the first quarter ended March 31, 2024, the group posted RM454,708 in net profit on the back of RM5.2mil in revenue against RM407,805 and RM5mil, respectively, in the same period a year ago.

“Malaysia is hosting the Asian Medtech 2024 in Kuala Lumpur in December this year to attract medical investments into the country that will help support the growth of local medical device companies,” he said.

Sia said the mainstay of the group’s business for the past few years has always been associated with smart devices.

“When the industry underwent a downturn, we forayed into other sectors, mainly the medical equipment and energy storage business.”

Sia said the group’s earlier investments in these businesses have essentially paid off, as seen in the current quarter’s commendable results.

“We intend to keep this momentum going. With these new businesses mentioned above, which have kept us busy, we are cautiously optimistic that our prospects for the rest of the year will remain positive,” he said.

For the group’s six months of the 2024 financial year, MMS posted RM1.22mil in net profit on the back of RM10.69mil in revenue, compared to RM115,312 and RM7.99mil, respectively, in the 2023 corresponding period.

According to the Medical Device Authority (MDA), the Asean region with a growing population of over 600 million and a gross domestic product of over US$2.76 trillion, has vast potential for a quality healthcare industry driven by a rise in the middle-class population.

The MDA also said the region would likely see a 10% annual growth in the demand for medical devices.

“Revenue in the medical devices market in South-East Asia is projected to reach US$10.92bil in 2023.

“The market’s largest market is cardiology devices with a projected market volume of US$1.60bil in 2023,” the MDA added.

The MDA said medical device revenue was expected to show a 7.59% compounded annual growth rate (CAGR) from 2023 to 2028, resulting in a market volume of US$15.74bil by 2028.

Sia said the group has also ventured into battery storage systems.

“We are supplying to a US-based company in Malaysia,” he said.

According to Precedence Research, the global battery market was US$125.35bil in 2023, calculated at US$146.20bil in 2024 and is expected to reach around US$680.85bil by 2034, expanding at a CAGR of 16.6% from 2024 to 2034.

The report added that the Asia-Pacific battery market size, estimated at US$70.36bil in 2023, is expected to increase to around US$392.17bil by 2034 at a CAGR of 16.9% from 2024 to 2034.

“In 2023, the Asia-Pacific region was the world’s primary market, accounting for a large share of global battery sales.

“In view of many factors such as urbanisation, industrialisation and increasing household income in emerging countries, supported by desired regulations to attract regional investments, residential, commercial or grid storage is estimated to grow strongly.

“During the forecast period, North America has emerged as the next largest regional battery market,” the report said.

Source: The Star

MMS Ventures set to return to profitability in 2024 on high demand

In line with the growing popularity of Japan as one of the top travel destinations in the world, Japanese companies are now striving to incorporate halal into their products and services.

Nihon M&A Center senior deal manager Ryosuke Sakamoto said Malaysia is one of the main countries it is partnering with to bolster this demand.

Malaysia offers diverse investment opportunities for Japanese companies, particularly within the promising halal ecosystem, he said.

“This ecosystem presents significant prospects in various sectors, including food and beverages, personal care, cosmetics, nutraceuticals, logistics, and tourism.

“Japanese companies, renowned for their high standards and innovative approaches, are well-positioned to leverage these opportunities, expanding their market reach and contributing to the growth and development of the halal industry globally,” Sakamoto told Bernama.

He also said that the Japanese Exchange Group, one of the leading exchange groups in the Asia-Pacific region, valued the global halal food market at US$2.468 trillion (RM10.8 trillion) in 2023, with projections suggesting a surge to US$5.81 trillion by 2032.

Within this market, Malaysia stands out as a compelling investment destination, Sakamoto said, adding that Japanese companies also view Malaysia as an attractive investment hub and are eager to do business in the country.

For eight consecutive years since 2015, Japan has been Malaysia’s fourth largest investor, highlighting its significance to Malaysia’s economy.

In 2022, Japanese foreign direct investment in Malaysia reached an impressive US$27 billion, leading to the creation of 336,000 jobs, according to Malaysia’s Ministry of Finance.

“Recent visits by Prime Minister Datuk Seri Anwar Ibrahim to Japan have further bolstered this positive outlook, securing investment potentials worth RM6.56 billion (as of 2023),” he said.

Nihon M&A Center senior consultant Law Sem Liang said that for decades, Malaysia has been a steadfast trading and technology ally for Japan.

“Now, as Japanese companies aim to expand in the global halal markets, Malaysia’s position as a halal gateway is invaluable. According to Malaysia External Trade Development Corporation, Malaysia’s halal market is projected to reach US$113.2 billion by 2030.

“Thus, Japanese investors are increasingly looking to establish a presence in Malaysia’s growing consumer market through merger and acquisitions, tapping into a wealth of regional prospects,” he said.

Law noted that major food and beverage companies such as Ajinomoto, Asahi Beverage, Kewpie and Umakane have already set up operations in Malaysia, with trade destinations extending to the Middle East and also back to Japan.

“It is not just halal food and beverage that attract Japanese companies; there are substantial opportunities in halal logistics, cosmetics, and personal care. These sectors offer ample potential for joint ventures with local small and medium enterprises, enabling technology transfers that benefit both countries,” he said.

Law also said that a prime example is Kewpie Malaysia Sdn Bhd, a wholly owned Japanese company that, in 2011 became the first Japanese multinational food manufacturer producing halal food in Halal Hub Industrial Park in Serkam, Malacca.

Nihon M&A Center provides financial services focusing on mergers and acquisitions related services such as reorganisation and management buy out, especially for small and medium-sized enterprises.

Source: Bernama

Japanese companies keen on halal industry collaboration with Malaysians

Sabah plans to have an industrial park here to bring development to the district, said Chief Minister Datuk Seri Hajiji Noor today.

He said Kudat could be developed as it had many facilities, including deep seas and a port.

He also said the district was strategically located near China, South Korea and Japan.

“So we should build an industrial park in this district. About 5,000 acres (2,023ha) are needed, and the area has been identified.

“We need cooperation from the representatives, members of parliament and the people whose land may be involved.

“We will have discussions with the state industrial development and entrepreneurship minister and members of parliament in this district.”

He said this at the Bakti Bakti Madani Kudat Programme here.

Earlier, he presented 444 land grants of 1,130.09ha to constituents in the Kudat parliamentary area.

Source: NST

Sabah to build industrial park in Kudat

Chinese battery maker Gotion High-Tech Co Ltd (Gotion) is planning to set up a battery pack assembly plant in Malaysia to boost its presence in Southeast Asia, said its senior vice-president and Asia-Pacific business unit president Dr Qian Cheng.

Speaking to Bernama on the sidelines of the 2nd Asean Battery Technology Conference (ABTC 2024) here on Thursday, he said the project is currently in the discussion stage, but remains tight-lipped about the details.

“The battery cells will come from China. For now, it’s yet to be finalised, so I cannot reveal much,” he said.

The company currently has battery assembly plants in Indonesia and Thailand. Additionally, its first battery cell factory in Asean, located in the Ha Tinh province, Vietnam, is set to begin production in October. 

Gotion also has eight research and development centres around the world, including in Silicon Valley and Singapore.

Qian Cheng said the company is confident about the Asean market, especially with aggressive electrification efforts in the region.

“We are also very interested in setting up cell manufacturing facilities in Southeast Asia. I think now is the time for Asia, especially for the Asean region,” he added.

Held this Wednesday to Friday in Sentosa, the ABTC 2024 is attracting over 320 participants from 16 countries.

The three-day event features discussions on battery safety regulations, cell-to-pack technologies, and recycling strategies across Asean, among others.

The event is hosted by the Singapore Battery Consortium and co-organised by NanoMalaysia Bhd, the Thailand Energy Storage Technology Association, Indonesia’s National Battery Research Institute and National Centre for Sustainable Transportation Technology, and the Electric Vehicle Association of the Philippines.

Source: Bernama

China’s battery maker Gotion High-Tech mulls plant in Malaysia

Seven states have surpassed the national manufacturing industry capacity utilisation rate in the second quarter of 2024 (2Q2024).

The nation’s manufacturing industry capacity utilisation increased by 3.8 percentage points year-on-year (y-o-y) to 82.1% during the said quarter from 78.3% in 2Q2023.

According to the Statistics Department Malaysia (DOSM), the seven states which surpassed the overall national average are Labuan (94.3%), Terengganu (84.8%), Pahang (84.7%), Selangor (84.6%), Negeri Sembilan (84.4%), Melaka (83.5%), and Johor (83.3%).

Additionally, nearly all states registered a y-o-y increase in the capacity utilisation rate, except for Terengganu and Kelantan.

In a statement on Wednesday, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said in 2Q2024, all sub-sectors posted capacity utilisation of above 80%.

The highest rate was recorded by the transport equipment and other manufacturers sub-sector (86%); followed by textiles, wearing apparel, leather and footwear (82.8%); and non-metallic mineral products, basic metal and fabricated metal products (82.3%).

“Quarter-on-quarter, the capacity utilisation of the manufacturing industry rose by 1.3 percentage points from 80.8% in 1Q2024.

“The higher capacity utilisation rate was also reflected in the expansion of the industrial production index for the manufacturing industry (4.9% y-o-y),” he said.

He said the capacity utilisation in the export-oriented industries increased by 3.9 percentage points y-o-y to 81.3% in 2Q2024 from 77.4% in 2Q2023, while the capacity utilisation in the domestic-oriented industries also expanded by 3.4 percentage points y-o-y to 83.7% in 2Q2024.

Mohd Uzir added that low demand, material shortages, and ongoing machinery and equipment maintenance are the main factors affecting capacity utilisation in the manufacturing industry.

Source: Bernama

Seven states surpass national manufacturing capacity utilisation rate in 2Q2024

Malaysia could champion sustainable practices by leveraging its strength in the aerospace industry through regional collaboration across ASEAN, said Deputy Minister of Investment, Trade and Industry (MITI) Liew Chin Tong.

He said sustainability is important in the aerospace industry as it adapts to global demands for greener practices, adding that trends like sustainable aviation fuels, electrification, and carbon-neutral technologies are shaping the future of flight.

“Malaysia has a unique opportunity to lead the region in these advancements when we assume the ASEAN Chairmanship in 2025.

“By leveraging our strength, we can champion sustainable practices, foster regional collaboration, and accelerate the adoption of green technologies across ASEAN,” he said in his speech at the launch of Malaysia Aerospace Summit 2024 (MyAERO ‘24), here today.

Liew said Malaysia should not only adopt technology but also strive to become an innovator in the industry.

He noted that the aerospace industry can be constrained by the fact that there are ultimately only a few global players making most of the planes, and industries in Malaysia — a relatively small country — are vertically linked to the global giants as suppliers.

“But that must not stop the Malaysian aerospace industry from horizontally linking with other industries in Malaysia such as the semiconductor industry or those involved in developing materials, specialty chemicals, or critical minerals,

“There is also much potential to connect the palm oil industry to develop the sustainable aviation fuel industry,” he said.

Liew added that through these horizontal linkages, Malaysia could innovate and create new products, processes or materials with Malaysian intellectual property.

“Malaysia does not just want to be a manufacturing hub, we aspire to be a nation that creates,” he added.

Source: Bernama

Malaysia can champion sustainable practices via aerospace industry — Liew

Pahang is set to become the first state in Malaysia with a comprehensive maritime industry facility through the development of the Kuantan Maritime Hub (KMH) in Gebeng, scheduled for completion by 2034.

Menteri Besar Datuk Seri Wan Rosdy Wan Ismail said the RM2.1 billion project which will be a central hub for maritime activities, supporting a range of trade and industrial operations, is expected to make a significant impact on both the local and national economy.

He emphasised that KMH is more than just a development project as it represents a milestone in progress and future potential, aimed at attracting investors to build factories and related industrial facilities. The hub is projected to generate 17,000 new job opportunities once it begins operations.

“This maritime-focused initiative will feature a world-class shipyard and we anticipate substantial growth in opportunities for industry players involved in this sector,” he said at the groundbreaking ceremony for the KMH in Mukim Sungai Karang, Gebeng here today.

He added that KMH will establish a robust ecosystem, positioning Pahang as a leading player in the national maritime industry and a long-term high-impact industrial centre.

Wan Rosdy noted that the KMH is another high-impact project in Pahang, alongside the East Coast Rail Link (ECRL) and the Kuantan International Airport.

He expressed confidence that once completed, these projects will significantly advance Pahang, potentially making it one of the most developed states in Malaysia.

“The KMH project aligns with the state government’s vision to attract local investors and drive the growth of high-impact industries using cutting-edge technologies.

“I guarantee the state government’s full cooperation in ensuring the project’s success, supported by our political stability. I am confident that Muhibbah Engineering (M) Bhd will deliver this project smoothly and successfully,” he said.

The 202.34-hectare project will include a world-class shipbuilding and maintenance centre, a specialised construction centre for the oil and gas industry, a technical training hub, a maritime industry centre and mixed-use property development.

Source: Bernama

Pahang poised to become Malaysia’s first comprehensive maritime hub

PENANG-based MI Technovation Bhd is one of the largest semiconductor-related companies and equipment vendors in the country, with a market value of RM3.5 billion.

The company — together with ViTrox Corp Bhd, Greatech Technology Bhd and Pentamaster Corp Bhd — are known as the Big Four automated test equipment (ATE) manufacturers listed on Bursa Malaysia.

But MI Technovation executive director and group CEO Oh Kuang Eng is making it clear that the company is not resting on its laurels and has already outlined a 10-year roadmap — which started in 2019 — to becoming a diversified semiconductor solutions provider.

Incorporated in 2007, the company sold its first machine in 2010 and went public eight years later.

“MI Technovation is a well-structured company. We know exactly what we intend to accomplish and execute every year, every 2½ years, every five years and every 10 years. We will not venture into a new business without proper long-term planning,” Oh, who was an equipment technology and automation engineer with Hewlett-Packard, tells The Edge in a virtual interview.

Oh, 51, says he does not want MI Technovation to be known as just another local ATE company, but instead, as a multinational semiconductor company with four major business pillars.

“Today, we have two main business units, namely semiconductor equipment and semiconductor materials. By 2029, another two new business units will come into the picture, and MI Technovation will become one of the most complete semiconductor companies in Malaysia.

“We have a very big dream. As our company name suggests, we want to be known as a technology innovation company. Even though we may not achieve 100% of what we want, we will give it a go. If you think about it, a 10-year period is not very long. In other words, our growing path will be very steep,” he says.

A graduate of Universiti Malaya with a Bachelor of Engineering (Mechanical), Oh has over 25 years of experience in the semiconductor industry, specialising in semiconductor automated equipment and process development.

As at April 8, Oh held a 67.16% controlling stake in MI Technovation. His wife Yong Shiao Voon, a 52-year-old Singaporean, also sits on the board as executive director and chief financial officer.

Among the company’s top 30 shareholders are UBS AG Singapore, AIA Bhd, Hong Leong Value Fund, Hong Leong Balanced Fund, Public Islamic Select Treasures Fund and Tokio Marine Life Insurance Malaysia Bhd.

For its equipment business, the group produces wafer level chip scale packaging sorting machines, vision inspection machines, final test handlers, assembly machines, wafer fabrication tools and testing instruments. It has a business presence in Malaysia, Taiwan, South Korea, China and the US.

It is worth noting that MI Technovation had earlier this year ventured into the semiconductor materials business by acquiring Taiwanese firm Accurus Scientific Co Ltd for RM271 million. The acquisition was satisfied via the issuance of 74.25 million new shares at RM3.65 apiece.

With business presence in Taiwan, China and Singapore, Accurus Scientific is involved in the manufacturing of solder spheres, which are widely used in advanced packaging such as ball grid array and wafer level packaging in the semiconductor industry.

“Today, a smart phone processor is so small but so powerful thanks to advanced packaging, in which the solder ball plays a very important role. Starting from next year, we believe the materials business will contribute about 30% to our group’s turnover, while the remaining 70% will come from the equipment business,” says Oh.

MI Technovation generated a net profit of RM54 million on revenue of RM229 million in the financial year ended Dec 31, 2020 (FY2020).

After reporting a weak first quarter ended March 31, 2021 (1QFY2021), with a net profit of merely RM3.51 million — down 65% from RM10.29 million a year ago — the company has quickly rebounded. It posted a net profit of RM26.1 million in 2QFY2021, representing a 44% year-on-year or 644% quarter-on-quarter increase.

Oh says there is good reason for the big drop in 1QFY2021 bottom line, attributing it to one-off operating expenses including employees’ bonus and welfare payments amounting to RM7.7 million to meet its employees’ immediate financial needs during the Covid-19 pandemic.

“We need to offer long-term value for our shareholders with reasonable profits and investment returns. But at the same time, we must avoid any form of labour exploitation. We need to be kind to our employees, we need to reward them and we need to take good care of them, so that they will be more motivated to work harder,” he explains.

The stronger financial performance in 2QFY2021 was partly attributed to the maiden contribution from Accurus Scientific, whose financial results were consolidated into those of MI Technovation following the completion of the acquisition on April 19.

For perspective, Accurus Scientific made up 23% of MI Technovation’s top line and 10% of its profit before tax in 2QFY2021.

Oh highlights that with the acquisition of Accurus Scientific, MI Technovation has become the first and only semiconductor company in Malaysia to be involved in both the equipment and materials businesses. “You can’t find another local peer that is as aggressive as us. Over the years, many equipment players have wanted to diversify into the materials business, while many materials players have wanted to venture into the equipment business, but none of them have made it.”

With both the equipment and materials businesses, Oh says MI Technovation can now provide its customers with one-stop solutions. “If you have problems with equipment, you can come to us. If you have problems with materials, you can also come to us. We believe we now have the upper hand over our competitors. That’s why an American smartphone maker and a smartphone chip designer are willing to work with us,” he continues.

Oh says the two business units are a perfect fit for MI Technovation to capture a bigger market share, noting that a lot of synergies can be derived from its acquisition of Accurus Scientific, which has its own technology and capability in designing, as well as equipment to produce solder balls.

“That’s why the major shareholders of Accurus Scientific are willing to take up our shares instead of cash. They are not cashing out. They want to be in the same boat as us,” he adds.

Targeting two more business units

For its upcoming third business unit, Oh reveals that MI Technovation will be looking at businesses related to high-tech advanced packaging and development, advanced solutions and services, as well as specific semiconductor manufacturing processes.

“I can’t divulge the details at the moment but we have already started working on it. We now have a research and development (R&D) team specifically looking at developing the third business unit. And if the timing is right, we might also acquire a company to accelerate our business diversification,” he says.

With its existing equipment and materials businesses, Oh opines that MI Technovation should be able to develop a new, advanced packaging technology.

“We want to introduce a game-changing product to the market. We do not want to be a market follower, which can only compete on price. That’s not what we want to do,” he says.

On the fourth business unit, Oh says the company will be looking at commercial electronic products for the mass market, with high-technology content.

He cites a British multinational corporation (MNC) best known for its vacuum cleaners and hair dryers. “These household products have already existed decades ago, but why is its brand still so famous today? It’s all about putting new technology into old applications, which could result in something that is totally different. The combination will increase the performance of the household products, and more importantly, enhance the user experience. That’s why the company can sell at such a premium price, but it still drives the market crazy and everyone is buying it.”

Oh anticipates that in years to come, there will be more technology elements in household products such as microwaves, air conditioners, fans, kettles and washing machines.

Shares of MI Technovation have gained 5% year to date to close at RM4.25 last Wednesday, giving it a market capitalisation of RM3.5 billion. The stock is currently trading at a historical price-earnings ratio (PER) of 67 times. Against its consensus target price of RM5.16, which reflects 45 times forward PER, it has an upside potential of 21%.

According to research analysts, potential catalysts for MI Technovation include its earnings-accretive acquisitions, new equipment launches, a weaker ringgit against the US dollar, as well as its organic capacity expansion.

The company’s strong share price performance since its listing in 2018 propelled Oh into Forbes’ Malaysia’s 50 Richest list for the first time in 2020. He was ranked 50th with a net worth of US$255 million last year, before climbing to 41st place with a wealth of US$410 million this year.

“To be honest, I don’t read too much into the Forbes list. I focus more on building the company and developing the businesses. I appreciate what Forbes did. To me, it’s just a recognition, not an achievement. I have a bigger dream. I want to make sure that MI Technovation can grow from a Malaysian technology company to become an MNC,” says Oh.

“I grew up in Malaysia, I am educated in Malaysia, I started a business in Malaysia, and we take pride in what we do. If you think about it, Taiwan is strong in the global semiconductor sector. Psychologically, it is not easy for a Taiwanese company like Accurus Scientific to accept the fact that it is now under a Malaysian parent,” he adds.

On the company’s share price and stock valuation, Oh acknowledges that MI Technovation needs to continue to do a good job and let the market value the company accordingly. Hopefully, he says, the group’s robust earnings performance will be reflected in its share price.

“We cannot look at the share price first and then go back to our business fundamentals. I understand that some investors expect us to deliver good results every quarter, but we don’t want to be driven by the market. We want to be driven by our roadmap and master plan. If you look at our corporate history, we are still a relatively young and fast-growing company. There will be more to come from us,” he says.

Source: The Edge Malaysia

MI Technovation aims to be a diversified semiconductor solutions provider

Sabah’s palm oil downstream industry recently attracted three Chinese enterprises for an on-site visit in the state, said Datuk Chan Foong Hin.

The deputy plantation and commodities minister said these companies were looking into potential avenues for investment and collaboration in setting up operations in Sabah.

The Chinese delegation had expressed keen interest in Sabah’s palm oil downstream industry, particularly in value-added processing of palm kernel cake (PKC), and the production of biomass energy and sustainable aviation fuel (SAF) from palm oil mill effluent (POME) and pretreated used cooking oil (UCO).

Chan said, as Malaysia’s leading palm oil-producing state, it is time for Sabah to boost the development of its downstream industry.

He said by focusing on the production of high-value-added palm oil products, Sabah can generate substantial economic benefits.

“Earlier this year, I made several visits to China to promote collaboration opportunities between Malaysia and China in the plantation and commodities sectors.

“It is encouraging to see these efforts bear fruit, as they have successfully generated significant interest and investment intent from Chinese companies in Sabah’s palm oil downstream industry.

“My ministry and I warmly welcome this development. In response, we have worked closely with various agencies to arrange their visit, ensuring they can fully appreciate the vast potential Sabah offers, thereby enhancing their confidence and commitment to investing here,” he said in a statement.

Chan, who is also the Kota Kinabalu member of parliament, added that the Chinese delegation toured the Sawit POIC Sandakan Industrial Park and participated in a roundtable discussion with both federal and state government agencies.

“This meeting primarily focused on exploring the investment opportunities in Sabah, and providing insights on the various incentives and support measures available for foreign investors looking to establish operations here,” said Chan.

Source: NST

Palm oil downstream industry in Sabah attracting Chinese investors

The Selangor Aerospace Action Plan 2020-2030 is driving the state to become one of the region’s industrial hubs while creating quality job opportunities.

Menteri Besar Dato’ Seri Amirudin Shari said the 10-year strategy has increased investment in the manufacturing sector to RM19.3 billion in 2023 compared to RM12.2 billion the previous year, with part of this growth attributed to the aerospace industry.

“Globally, this industry is expected to grow to RM2.6 trillion by 2030. Passenger traffic is forecasted to increase by 6.1 per cent, and the assets of airline companies are expected to grow by 3.5 per cent.

“Several projects are being carried out in collaboration with leading companies including Dassault Aviation, Collins Aerospace, Smartlink Engineering, Singapore Airlines Engineering, and Malaysia Airlines Engineering,” he said in a Facebook post today.

These efforts have paid off as Malaysia has become a favourite among foreign investors in Southeast Asia.

“In fact, to further strengthen this effort, the Selangor Aerospace Apprentice Programme (SAAP) has been implemented to provide youths with the opportunity to enhance their skills and reap the plan’s benefits,” Amirudin said.

In September 2022, Menteri Besar Selangor (Incorporated) or MBI launched SAAP to empower youths to join the industry by building a sustainable talent or workforce pipeline.

The learn-and-work training programme, which involves more than 50 apprentices, includes engine maintenance training and technical engineering in mechanical and electrical systems.

The state government is also developing the Selangor Aerospace Park (SAP) on a 2,000-acre site in Sepang, which is equipped with various aerospace engineering industry facilities.

On September 7 last year, Amirudin said that SAP would include aircraft maintenance, repair, and overhaul (MRO) centres, aircraft modification facilities, an innovation centre, as well as smart and advanced hangars.

Source: Selangor Journal

Aerospace plan to draw renowned companies to make Selangor regional hub — MB

PENANG is set to unveil its STEM (science, technology, engineering and mathematics) Talent Blueprint by the end of this quarter.

Penang Chief Minister Chow Kon Yeow said its aim was to build a highly skilled workforce to underpin long-term growth in the state’s industrial and technological sectors.

This is in tandem with the recently announced National Semiconductor Strategy (NSS) that seeks to move the country up the value chain into higher-end manufacturing, design, packaging and equipment, as well as having 60,000 engineers by 2030.

“The working parties have presented the blueprint to the Investment, Trade and Industry Ministry (Miti) recently.

“Details will be revealed during the launch,” he said while addressing members of the Malaysia Semiconductor Industry Association (MSIA) in a dialogue session held at a hotel in George Town.

A key component in the blueprint will be the Penang Chip Design Academy, located at the Penang Skills Development Centre (PSDC) building in Bayan Lepas.

This is part of the state’s ongoing work in setting up a 42.49ha integrated circuit (IC) design and digital park in the area.

This will offer over 1,000,000sq ft of space catered to end-to-end design development, as well as cultivating talent through upskilling, reskilling, academic training and hands-on experience.

“Malaysia has emerged as a significant player in the chip manufacturing industry over the past five decades, accounting for 13% of global chip assembly, testing and packaging.

“The majority of that is done in Penang, which recorded RM341bil in E&E (electrical and electronic) exports last year.

“Overall, Penang also maintained its primacy as the top exporting state with RM435bil in 2023, representing 31% of the country’s total,” Chow said.

He added that the last five years also saw the best growth of approved manufacturing investments.

A total of RM184.3bil was recorded from 2019 to 2023, compared to RM76bil from 2008 to 2018.

“With rapid technological advancements and shifting global dynamics, the state recognises the importance of fostering resilience in our ecosystem to not only weather storms, but also transform them into opportunities for growth,” he said.

MSIA president Datuk Seri Wong Siew Hai said the figures underscored Penang’s critical role in the national economy.

“The semiconductor industry is powering the future.

“The global semiconductor market is set to rise from US$574bil (RM2.56 trillion) in 2022 to a forecast of US$1 trillion (RM4.46 trillion) by 2030.

“We need to prepare for this once-in-a-generation opportunity and be ready to seize these opportunities as they arise,” Wong said.

He believes the state’s latest efforts will help the ecosystem move up the IC design value chain.

There are currently 25 active IC design companies in Malaysia, of which 21 are in Penang.

“Penang has a strong base for IC design with a headcount of over 7,000 engineers and these initiatives will allow it to continue to grow.

“The semiconductor industry here has experienced significant growth over the last few years, driven by substantial investments.

“This reinforces Penang as the Silicon Valley of the East,” Wong said.

On related matters, Chow said Penang had adequate land and infrastructural capabilities to accommodate industrial growth for the next 10 years at least.

He pointed to the Bandar Cassia Technology Park, Batu Kawan Industrial Park 3 and Penang Science Park South with over 323ha combined, as sufficient for projected demand.

There are other private-sector initiatives such as one in Bertam that will provide 323ha of space.

For the longer term, there is also the state’s Silicon Island project with 283ha.

“Unless we see a triple or quadruple surge in investment within the next few years, the state does not foresee any shortage of industrial land.

“We’re in a much better position now,” he said.

Chow also highlighted that Tenaga Nasional Bhd’s (TNB) cross-channel monopole transmission project would boost the energy grid by a further 2,000MW.

“At present, Penang’s domestic consumers and industry are consuming just below half of TNB’s overall capacity,” he said.

Chow also gave updates on the water situation and expansion of the Penang International Airport’s terminal and cargo facilities.

Source: The Star

New blueprint to boost Penang’s E&E future

UEM LESTRA Bhd, a wholly owned subsidiary and the green arm of UEM Group Bhd, has allocated RM1.5bil, which it aims to deploy in the next 24 months, to invest in decarbonising Malaysia’s industrial parks.

UEM Group managing director and UEM Lestra chairman Datuk Amran Hafiz Affifudin said that the move is part of UEM Group’s agenda to spur domestic direct investment (DDI), which will lead to job creation and attract foreign direct investment (FDI) to Malaysia.

“Operating in a sustainable industrial park is one of the top priorities for foreign investors, especially manufacturers.

“We need to ramp up our efforts to explore setting up new sustainable industrial parks and at the same time decarbonise existing ones by upgrading current infrastructure via innovative technologies and methodologies that can be integrated into existing operations.

“This could potentially involve the integration of renewable energy sources, such as solar and the implementation of other advanced energy management systems and technology to optimise consumption patterns.

“Investors are hungry for zero-emission operations. As Malaysia continues to attract significant FDI, initiatives such as the decarbonisation of industrial parks are expected to boost the local economy, drive sustainable growth and position Malaysia as a key global player,” he said.

UEM Lestra aims to be at the forefront of these efforts, driving the transition towards a sustainable economy and leading the response to climate change, in line with the country’s aspiration of achieving net zero carbon emissions by 2050.

Plans for a renewable energy (RE) industrial park are already in the works.

In July 2023, UEM Lestra, in collaboration with local and international partners, announced that it is pioneering the development of a one-gigawatt hybrid solar photovoltaic power plant integrated with the RE industrial park in Malaysia.

This project is part of a flagship initiative under the National Energy Transition Roadmap.

UEM Lestra chief executive officer Harman Faiz Habib Muhamad shares that the organisation is looking at expanding its green assets and operations through strategic partnerships, as well as via direct and active ownership.

It plans to nurture domestic green champions such as Cenergi SEA Berhad, which it acquired last year.

“Over the long term, we plan to establish a competitive green platform in key energy sectors and emerging growth areas, such as renewables and storage infrastructure, integrated energy solutions, green and electric mobility, as well as waste management and recycling,” says Harman.

“These initiatives will be funded through our overall RM7bil sustainable and responsible investment sukuk programme.

“We are committed to reducing environmental impacts through strategic clean energy efforts. Our focus on sustainability extends beyond reducing emissions to fostering a new way of thinking that prioritises circular economy models and resource efficiency for the benefit of both the economy and the environment.”

Source: The Star

UEM Lestra Invests in Industrial Decarbonisation

US-based Insulet Corp, a medical device company, has officially opened a 400,000 sq ft manufacturing facility on a 13-acre site in Johor Bahru to produce its Omnipod brand of products primarily for diabetes. 

According to a press statement issued on Wednesday, the newly opened facility, which was completed in 2023, is twice the size of Insulet’s highly automated manufacturing facility in Acton, Massachusetts, which is where the company is headquartered.

On the opening of the new facility, Insulet president and CEO Jim Hollingshead said, “Insulet’s remarkable growth is driven by our market-leading Omnipod 5, the first and only tubeless automated insulin delivery system in the US. Our new state-of-the-art manufacturing facility in Malaysia positions us strategically to stay ahead of the huge demand for Omnipod, ensuring our customers have uninterrupted access to our products from this thriving region with great talent.”

The statement added that currently, there are more than 350 full-time Insulet employees working at the new facility with plans to grow to more than 1,000 in the coming years, which is part of a US$200 million (RM889.59 million) investment plan in the area.

In addition to that, the new manufacturing facility was designed with sustainable elements to achieve both Green Building Index certification and Leadership in Energy and Environmental Design (LEED) Silver certification, which is part of Insulet’s global efforts to minimise its environmental impact in the areas where it operates.

The statement added that the new facility has more than 5,700 solar panels that generate approximately 15% of the building’s power needs. To reduce the water consumption of local water sources, an underground rainwater harvesting system, comprising three rainwater capture units, was built with the capacity to satisfy 30% of the landscaping water needs. Additionally, energy-efficient equipment and construction materials were used as hardscape materials to reduce heat island effects.

Commenting on the new facility, Johor State investment, trade and consumer affairs committee chairman Lee Ting Han said, “The manufacturing facility is up and running with a local workforce that has been upskilled and trained. This investment by Insulet will have a profound impact on the local economy for many years to come as they grow globally.”

Source: The Edge Malaysia

US-based Insulet Corp officially opens medical device manufacturing facility in Johor Bahru

Sarawak is advancing its green hydrogen initiatives with the aim of becoming a significant player in the global hydrogen market by 2030, said Datuk Dr Hazland Hipni.

To meet this aim, the Deputy Energy and Environmental Sustainability Minister said the Sarawak Hydrogen Hub in Bintulu will produce approximately 250,000 tons of green hydrogen annually, with 90 per cent for re-export and 10 per cent designated for local use.

“Key projects include H2ornbill, in partnership with Japanese firms Sumitomo and Eneos, as well as with South Korean companies Samsung and Lotte Chemicals.

“These projects are expected to generate substantial economic benefits and align with Malaysia’s clean energy goals, leveraging Sarawak’s abundant hydropower resources for hydrogen production,” he said at the ‘Hydrogen Economy Fuelling Tomorrow: The Impact of Hydrogen on Regional Economy’ discussion in Kuala Lumpur recently.

Dr Hazland was invited as a panellist for the discussion which was held in conjunction with the Malaysia Commercialisation Year (MCY) Summit 2024 at Kuala Lumpur Convention Centre (KLCC).

The event was officiated by Prime Minister Datuk Seri Anwar Ibrahim.

Dr Hazland during the discussion also shared that Sarawak had in June this year launched Malaysia’s first electrolyser assembly and distribution facility.

“The Sarawak Electrolyser Assembly and Distribution Facility (SEA-DF) brings Sarawak closer to achieving its aspiration of becoming a hydrogen hub in the region,” he said.

Also participating in the discussion were Science, Technology and Innovation Minister Chang Lih Kang, International Renewable Energy Agency deputy director-general Gauri Singh, and NanoMalaysia chief executive officer Dr Rezal Khairi Ahmad.

MCY Summit 2024 is the premier platform for showcasing Malaysia’s cutting-edge technology and innovation, driving socio-economic development, and fostering global collaboration.

Source: Borneo Post

Dr Hazland: S’wak boosting green hydrogen initiatives to become significant player in global market

Any changes in Tesla Inc. factory plans in Thailand and expansion strategy in Southeast Asia will not impact Perak’s efforts to attract foreign investments, according to Perak Menteri Besar Datuk Seri Saarani Mohamad.

Saarani clarified that Perak was never part of Tesla’s proposed factory plans.

Instead, the state is focused on existing projects, such as Zhejiang Geely Holding Group Co Ltd’s (Geely) investment in the Automotive High-Tech Valley (AHTV) in Proton City, Tanjung Malim. These investments will proceed as planned.

“I understand that Tesla’s investment plans were supposed to be in Kedah. We in Perak are not involved in the plans for a Tesla factory.

“We only have investments from Geely in AHTV Tanjung Malim, so as far as Tesla is concerned, I think we (Perak) are not affected,” he told reporters after attending

Mesra Programme here, yesterday.

It was reported that Tesla had cancelled its plans to develop factories in Malaysia, Thailand, and Indonesia following a reassessment of its business expansion plans in Southeast Asia.

Prime Minister Datuk Seri Anwar Ibrahim was also reported to have said that the decision was due to Elon Musk’s company suffering significant losses and being unable to compete with EV industries from China.

In related developments, Saarani said a meeting will be held in September between the state government and Geely to approve the master plan from Geely, which will involve an investment of RM40 billion in AHTV to finalize it.

He added that other major investments, such as the Maritime Industrial City Lumut (LuMIC) project in Lumut, the production and processing of quartz and silica-based minerals at the Silver Valley Technology Park (SVTP) in Kanthan, and the downstream rare earth element (REE) production plant by a South Korean company are proceeding smoothly.

“Geely has submitted the master plan for their development in AHTV, and in September we will have a meeting to approve the layout.

“Other investments, such as RM72 billion for LuMIC, a silicon company from China at SVTP, and from Korea for the production of super magnets (REE downstream products), are also progressing well,” he said.

Source: NST

Perak unaffected by Tesla’s shelved plan for Southeast Asia plant

The Selangor government welcomes Tesla Inc’s continued investment plans in the state in the future, particularly in relation to research and development and the opening of electric vehicle (EV) service centres.

Menteri Besar Datuk Seri Amirudin Shari said the invitation was in line with Tesla owner Elon Musk’s desire to expand the company’s market in the Asian region.

He said that so far the giant EV company has branched out several operations in Selangor, namely the opening of its headquarters in Cyberjaya in addition to opening a charging centre.

“The headquarters and charging centres are already there. It will probably open the service centres after this because it wants to expand its market in Asia,“ he said when asked to comment on a report saying Tesla cancelled plans to develop a factory in Thailand recently.

So far, Tesla has developed four experience centres in Malaysia and the multinational automotive company has also exceeded its target by installing 52 units of instant chargers with a capacity of over 180 kW in various places in the Klang Valley, Johor, Melaka, Penang and Pahang.

The Mentri Besar said at a press conference after launching the Program Tuisyen Rakyat Selangor 2024 that the influx of investors in the semiconductor sector is extraordinary and the state government is ready to develop a second integrated circuit (IC) design park after the quota at the first IC park is expected to be full soon.

Source: Bernama

Tesla expected to continue investments in Selangor – Amirudin