According to the Malaysia Semiconductor Industry Association (MSIA), 53% of companies in the electrical and electronics (E&E) and semiconductor sectors are optimistic about their business outlook for the fourth quarter of 2024 (4Q2024).

The association’s MSIA E&E/ Semiconductor Quarterly Pulse Survey for 3Q’s outlook indicated a continued positive sentiment, although it is lower compared to the 60% optimism reported in 2Q for 3Q.

“For the next 12 months, 63% of companies expressed an optimistic outlook, a slight decline from the 72% optimism expressed in 2Q,” MSIA said in a statement on Friday. 

The report stated that 52% of companies are optimistic about their investment outlook for 4Q, which represents a marginal decline from 58% in 2Q.

It was also stated that 71% of companies are hiring engineers and technicians in 4Q, reflecting strong hiring activity despite a slight reduction from the 85% hiring sentiment seen in 2Q.

The association said 46% of companies reported improved business performance in 3Q compared to 2Q, up from 39% in the previous quarter, as this signals a positive trajectory despite slightly moderated optimism across the industry. 

Commenting on the 3Q survey results, MSIA president Datuk Seri Wong Siew Hai said it reflects the resilience and adaptability of Malaysia’s semiconductor industry, despite global uncertainties and emerging challenges, as companies remain committed to growth, innovation, and investment.

“To continue thriving, we must address talent shortages, enhance our infrastructure, and strengthen our competitiveness through strategic investments and government support.

“With the right policies in place, Malaysia’s E&E sector will continue to be a major contributor to our nation’s economic growth,” he said. 

Meanwhile, MSIA noted that the report highlights the recommendations by respondents to the government for Budget 2025.

Respondents suggest capital expenditure (capex) rebates, grants, and funding to grow local champions, tax incentives and reductions for E&E companies, and government grants or subsidies for innovation and technology adoption.

Furthermore, they recommend the government to provide work/employment passes/permits for foreign talents, such as scientists, engineers, and data scientists, and incentives for companies to adopt digitalisation and automation in manufacturing.

Source: Bernama

53% of E&E, semicon firms optimistic on 4Q2024 biz outlook — association

Malaysia’s semiconductor industry must diversify and go beyond its heavy reliance on multinational corporations and manufacturing capabilities to secure its position in the global market, especially in the face of potential disruptions, said Economy Minister Rafizi Ramli.

He emphasised the need for a more dynamic ecosystem that includes startups, innovative tech pioneers, and a blend of venture capital and private equity (PE) to drive growth.

“It is obvious that Malaysia sits very attractively in the global semiconductor and artificial intelligence scene.

“As much as this is good news, this position is not guaranteed, it’s a very competitive and dynamic environment, and with the rise of de-risking and China+1 strategies, the landscape has fundamentally shifted,” he said in his speech before officiating the Malaysia Semiconductor Recruitment Day 2024 here today.

Rafizi said in recent years, the challenge has been shifting up the value chain from backend processes to front-end operations — transitioning from assembly and testing to designing chips.

“When we talk about integrated circuit (IC) design, it’s about innovation, technology, research and development.

“Therefore, it is very much a startup environment which means that you require different kinds of people, different types of risk profiles and it requires different kinds of funding and business models. That’s why we need venture capital and PE firms,” he said.

On the same note, he said the industry’s demand for engineers will continue to grow.

“I think they estimated that we need around 60,000 engineers and that is why government departments, agencies, private sectors and the universities are working together to ensure we can meet this demand,” he said.

He added that Malaysia has a sizeable presence in the electrical and electronic sector, which contributes about eight per cent to the nation’s gross domestic product, or roughly RM143 billion annually, supported by decades of efforts in shoring up its position to be a key player within the global supply chain.

Meanwhile, Rafizi was happy to note that within just five months, seven firms have joined the IC Design Park in Puchong, creating approximately 600 jobs in front-end chip design, with plans to attract 15 more foreign companies that have shown strong interest in the park.

“If we can sustain this momentum, we should be able to meet the target of onboarding 20,000 high-skilled professionals,” he said.

The Semiconductor Recruitment Day 2024 is organised by the Selangor Information Technology and Digital Economy Corporation (Sidec) in collaboration with Malaysia Advanced Semiconductor Academy.

With 25 prominent companies participating and more than 2,000 graduates registered, the recruitment day is designed to connect job seekers with top industry players.

Key participating companies include NXP, Renesas, Infineon, Inari Amertron, Neways, Vitrox, STMicroelectronics, HCLTech, Chipsbank, Betterlife, Oppstar, Synopsys, Skyechip, and AppAsia.

These companies are actively recruiting for roles such as RTL Design Engineer, Design Verification Engineer, Physical Design Engineer, Analog Circuit Design Engineer, and Layout Design Engineer, with a starting salary of RM5,000 for entry-level engineers.

Source: Bernama

Malaysia’s semiconductor industry must diversify to sustain global position

Malaysia’s medical technology (medtech) industry has witnessed impressive growth, reaffirming the country’s position as a key player in the global medtech landscape, said the Malaysian Investment Development Authority’s (Mida) and Association of Malaysian Medical Industries (AMMI).

In a joint statement today, Mida CEO Sikh Shamsul Ibrahim Sikh Abdul Majid said that it is clear that Malaysian professionals are not only masters of their technical craft but also driven by a commitment to quality and compliance with global standards.

“This potent combination of talent and government support, as seen in initiatives such as the prioritisation of the medical device sector in the Twelfth Malaysia Plan and the New Industrial Master Plan 2030, has propelled Malaysia to the forefront of medtech innovation.

“Mida is dedicated to supporting the sector’s continued expansion through strategic partnerships and proactive measures, and we’re excited to see what the future holds for this dynamic industry,” he said.

Sikh Shamsul said this after the release of AMMI’s “Medical Device Industry Status and Outlook 2024/2025 Report: Malaysia, A Medtech Success Story” at the Malaysia Medtech Industry Summit 2024 in Penang today.

Meanwhile, AMMI chairman Andy Lee said Malaysia boasts the largest medical device market in Southeast Asia, with its market size reaching RM10.6 billion in 2023 and ranked among the top ten markets in Asia.

“It extends far beyond traditional manufacturing, offering robust capabilities in sterilisation, biocompatibility testing, packaging and conformity assessment,” he said.

Lee also said Malaysia hosts the largest sterilisation capacity in Southeast Asia, providing the most comprehensive range of sterilisation technologies in the region, including ethylene oxide, gamma and electron beam sterilisation.

“Furthermore, Malaysia stands as the first country in Southeast Asia to establish an X-ray sterilisation facility. Driven by its sophisticated infrastructure, adherence to international standards, and strong government support, Malaysia is well-positioned to remain competitive on the global stage,” he added.

ADVERTISEMENT

The AMMI report revealed that respondents to a survey said they plan to invest a collective amount of RM2.7 billion in expansion, RM927 million in new products and RM162 million in new research and development/centre of excellence and Industry 4.0.

The report also highlighted that collectively, AMMI sourced RM4.1 billion of raw materials and RM2.5 billion of services from local suppliers and small and medium-sized enterprises. “Additionally, contracts worth RM1.4 billion were outsourced to local suppliers, with 95% directed toward finished products,” the report said.

Source: Bernama

Malaysia’s medical technology sector poised for high-value growth

The palm oil biomass industry offers a substantial opportunity to produce value-added products and renewable energy, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.

Last year, he said the country produced 92.37 million tonnes of biomass, including 25.75 million tonnes generated from milling and plantation activities in Sabah alone. He added that the figure could rise further with the inclusion of palm oil mill effluents.

“The biomass from the palm oil industry has great potential in producing value-added products and renewable energy.

“The biomass and bioenergy sectors are expected to be the catalyst for our nation’s economy while ensuring a sustainable future,” he said during the 2024 National Seminar on palm oil milling, refining, environment and quality at a hotel here. His speech was read by his deputy Datuk Chan Foong Hin.

Johari added that several initiatives and policies, such as the National Agricommodity Policy 2021-2030 (DAKN 2030) and the National Biomass Action Plan 2023-2030, have been implemented to support this effort.

With the National Energy Transition Roadmap, he said that the palm oil industry through biomass production was also playing a pivotal role in reducing greenhouse gas emissions and supporting Malaysia’s aspiration to achieve net-zero emissions by 2050.

Meanwhile, during an interview, Chan said Sabah used to be the second-largest in terms of oil palm acreage and last year it had the highest oil palm extraction rate in the country.

Sarawak and Sabah recorded the largest oil palm plantation areas, with 1.62 and 1.51 million hectares respectively, together making up over 55 per cent of the country’s total.

As of August 2024, 450 palm oil mills nationwide have a fresh fruit bunch (FFB) processing capacity of 123 million tonnes annually.

Sabah leads with 128 mills, capable of processing 34.7 million tonnes annually. In 2023, 95 million tonnes of FFB were processed, with a national oil extraction rate (OER) of 19.86 per cent. Sabah achieved the highest OER at 20.4 per cent, processing 22.4 million tonnes of FFB.

“But we still face the issue of lack of downstream process here. For the time being, we don’t even have a commercial-size oleochemical plant in Sabah yet.

“When I visited the booths here, I was made to understand how to capture the biogas generated by the palm oil mills, and then to process it to become biomethane.

“And the biomethane can replace diesel for some of the factories,” he said, adding that this was part of the ongoing efforts in tapping Sabah’s biomass sector.

Source: NST

Palm oil biomass industry has vast potential, says Johari

To attract and support more Integrated Circuit (IC) design players establishing and expanding their operations in Penang, the state government yesterday launched incentive package schemes, offering a subsidy of up to RM2 million annually over three years.

Chief Minister Chow Kon Yeow said the incentives will be available to both Malaysia-based companies and foreign firms involved in the IC design industry.

“Through these incentives, we aim to continue attracting and supporting IC design players who will contribute to this transformative initiative.

“Additionally, with further support from the federal government, currently pending approval from the Ministry of Finance (MOF) in terms of funding, the state will be able to enhance and improve the incentive packages we offer,” he said at the soft launch of Penang Silicon Design @5km+ at GBS TechSpace in Bayan Lepas today.

Chow explained that the state is introducing the Penang Silicon Design @5km+ initiative to establish an interconnected ecosystem for IC design and technology enterprises, all within close proximity of the existing industrial park in Bayan Lepas.

He noted that the total cost of the Penang Silicon Design @5km+ project will be RM120 million over a five-year period, covering infrastructural development, talent development, software and equipment procurement and operational expenses.

The chief minister also pointed out that the Penang State Government has committed RM60 million to support the initiative and is seeking an additional RM60 million from the federal government as a 1:1 matching grant.

He said this funding is planned to span five years, with RM31.5 million submitted to the MOF via the Ministry of Investment, Trade and Industry (MITI) for inclusion in the 2025 Budget, while the remaining amount will be requested under the 13th Malaysia Plan.

Meanwhile, Chow also announced the formation of an Executive Council for the project, which he will chair as Penang Chief Minister.

The council will comprise state secretary Datuk Zulkifli Long, state financial officer Datuk Zabidah Safar, Penang Development Corporation (PDC) chief executive officer (CEO) Datuk Aziz Bakar, and InvestPenang CEO Datuk Loo Lee Lian.

The Advisory Panel will include the CEO of InvestPenang and CEO of the Penang Skills Development Centre (PSDC) Dr Hari Narayanan, with members comprising representatives from academia and industry, such as AMD Global Services, the Collaborative Microelectronic Design Excellence Centre (CEDEC), Universiti Sains Malaysia, Intel Malaysia Design Centre, Oppstar, SkyeChip and UST Malaysia.

The Penang Silicon Design @5km+ initiative consists of three key major projects, namely Penang IC Design & Digital Park @Bayan Lepas, Penang Chip Design Academy @PSDC, and GBS TechSpace, a 36,000-square-foot state-of-the-art facility hosting the Silicon Research and Incubation Space.

InvestPenang, in a statement today, announced that the incentive package schemes include subsidies of up to 100 per cent for rent, utilities and parking at state-owned properties; up to 100 per cent subsidies for the use of equipment and tools at shared incubation spaces and stakeholder facilities; and talent development incentives offering up to 100 per cent subsidies through the Penang Chip Design Academy.

Penang currently boasts the highest concentration of IC design-related companies in the nation, with 28 local and foreign firms residing in the state.

Source: Bernama

Penang launches RM2 million subsidy for integrated circuit design firms

Asia Digital Engineering (ADE), the maintenance, repair and overhaul (MRO) division of Capital A Bhd, is in talks with Malaysia Airports Holdings Bhd (MAHB) on finalising the site for a new aircraft MRO hangar to meet growing demand.

ADE CEO Mahesh Kumar said ADE has already obtained approval for five acres of land from MAHB to construct an MRO facility and expects negotiations to be finalised with MAHB by the end of this year.

“Once we obtain the site approval, construction of the new hangar will take about 18 months, and the new facility will have four additional MRO lines. To support our expansion and demand, we are also in talks with MAHB to secure an additional 20 acres within the KLIA area for development as a premier MRO hub,” he told reporters at the grand opening of its modern 14-line MRO hangar today.

ADE is conducting soil tests on the five-acre site next to its new MRO hangar

Mahesh said ADE is poised to become a key player and the biggest in the regional MRO sector. It will have the largest number of lines and provide efficient and cost-effective solutions.

The newly launched MRO hangar stands as Malaysia’s largest and most advanced MRO hangar to date, highlighting ADE’s dedication to spearheading the MRO industry in the Asean region.

Mahesh said the completion of this hangar is perfectly timed to meet the company’s growing demand for MRO services.

“We will be completing our 200th C-check this year with initially seven lines, and the addition of up to 14 lines will significantly expand our capacity to serve more clients. This landmark facility enhances our capabilities and creates at least 500 new jobs in Malaysia, attracting local talent and foreign investment.

“We are committed to nurturing aviation professionals and setting new standards in the MRO industry,“ he said

The facility spans over 380,000 square feet and covers 20.25 acres within the KLIA Aeronautical Support Zone 1 (ASZ 1), part of Malaysia Airports’ KLIA Aeropolis development.

The hangar features dedicated workshops, including composite, sheet metal and machine, upholstery, cabin interior repair, oven and boiler, and a 3D printing lab for aircraft livery. Additionally, it houses a digital product development centre, positioning ADE as one of the region’s most extensive MRO providers.

Capital A CEO Tan Sri Tony Fernandes said ADE will carry out MRO services for the AirAsia fleet that has been in storage since the pandemic. “Out of the 240 aircraft we have, 10 are still in deep storage. We need to get that repaired and flying again before we cater for other airlines for MRO services.”

With more than 20 years of engineering expertise supporting AirAsia, ADE will leverage this experience to attract third-party airlines.

ADE’s services include component support, line maintenance, and base maintenance for aircraft such as the Airbus A320 and A330 families and the Boeing 737 series. ADE plans to expand its capacity to service additional aircraft types.

ADE recently obtained EASA Part 145 Maintenance Organisation approval and Approved Maintenance Organization (AMO) certifications in seven other countries, with plans to expand across the region.

In 2023, ADE received a US$100 million investment from OCP Asia Ltd, providing a strong boost for its next growth phase.

Fernandes said the new hangar represents ADE’s vision for the future of MRO in Asia, with ambitions to disrupt and become the leading provider in Southeast Asia and beyond.

“In just four years since ADE’s inception, we have built the competencies and facilities necessary to become a leader in this segment. This facility will enhance our capability to provide top-notch value and services to AirAsia and other airlines.

“This growth is also crucial in supporting AirAsia’s ambitious goal of operating 300 aircraft within five years. This milestone firmly places Malaysia on the map as a world-leading MRO provider,“ he added.

Source: The Sun

Capital A’s ADE opens Malaysia’s largest, most advanced aviation MRO hangar

Motorcycle and electric motorcycle companies in Chongqing, China have been encouraged to invest in Sabah.

Sabah China Chamber of Commerce (SCCC) president Datuk Frankie Liew invited the companies to consider visiting Sabah and explore the possibility of establishing a regional production or distribution centre.

He made the invitation when he led a delegation to visit Chongqing Dazu High-Tech Zone, and several motorcycle and electric motorcycle companies to discuss future economic and trade investment cooperation between the two regions.

They visited the motorcycle and electric motorcycle production facilities and explored the potential for technology and production capacity transfer.

Liew said that with the rise of protectionism in western countries, global trade is shifting from liberalization to fragmentation, affecting various industrial and supply chains. Therefore, Sabah and China should establish closer and broader economic and trade cooperation, integrating each other’s trade networks, supply chains, technology, capital and resources to enhance supply chain security, economic security and food security.

“Sabah needs China’s technology, capital and products, while China can leverage on Sabah’s resources and market access, benefiting both sides,” he said.

Liew pointed out that in recent years, Sabah has rapidly advanced towards industrialization, driven by strong state government support, attracting significant investment and technology from China, Korea and other countries.

Last month, a delegation from the Sabah state government signed five memorandums of understanding (MOUs) with the Jilin provincial government and various enterprises, with a total investment of RM600 million. These MOUs include establishing a truck assembly plant in Sabah, exporting bird’s nests and durians to Jilin, health food processing, and agricultural research projects.

Liew further elaborated that while Malaysia’s industrial manufacturing output grew by 0.8% last year, Sabah’s growth was 4.4%, making it the fastest growing state in Malaysia’s manufacturing sector. This indicates that more Chinese companies are willing to transfer technology, capital, and resources to Sabah, contributing to capacity transfers.

“China has always been Sabah’s largest trading partner. The trade volume between Sabah and China doubled from RMB 10 billion in 2018 to RMB 20 billion in 2023. With more Chinese companies entering Sabah, we believe there is even greater growth potential in the future,” he said in press release on Thursday.

Chongqing Yinxiang Motorcycle (Group) Co., Ltd., established in 1997, has developed into a large-scale integrated enterprise group engaged in research, development, manufacturing, and sales of motorcycles, gasoline engines, general-purpose machinery, and other products. It owns seven brands, including Yinxiang, Xianfeng, Jiermu, Jida, Xiaoxing, Feiken and Zhiwei, with established products and stable domestic and international markets.

The company has five production and sales subsidiaries, with products exported to Southeast Asia, Europe, America and Africa. It has also established production factories in Vietnam, Laos, Indonesia, Nigeria and the Philippines. The company is further expanding into emerging markets in Europe, Southeast Asia, Africa and the Middle East, gradually realizing a global brand strategy.

Liew praised the visit to Dazu High-Tech Zone and the motorcycle and electric motorcycle production facilities, noting that both the quality and quantity are of top-notch standards, particularly suited for emerging markets like ASEAN.

He emphasized that Sabah’s geographical location is highly advantageous, being centrally located in Southeast Asia for both air and sea transport. Coupled with good relations with neighbouring countries, Sabah is ideal for various industries and investments to set up hubs. By using Sabah as a central point, companies can access the vast Southeast Asian and ASEAN markets.

“Although Sabah’s population is only about three million, we are the best gateway to enter both China and the ASEAN markets. With ASEAN at our back and China in front, we are the golden door to a two billion population market.”

He also highlighted that Sabah’s Chinese community is large, well-educated and skilled in various fields. He believed that if Chinese enterprises establish supply chains in Sabah or wish to export products from Sabah to China, the local Chinese community would be more than willing to assist and coordinate.

Liew also mentioned that SCCC has close ties with government departments and agencies, including the Ministry of Industrial Development, the Ministry of Entrepreneur Development, Invest Sabah Berhad, the Malaysian Investment Development Authority (MIDA), the Lands and Surveys Department, Universiti Malaysia Sabah, and other key institutions.

He stated that SCCC could facilitate introductions if needed.

Liew has also invited Chongqing business representatives to participate in the Sabah-Zhuhai Trade Fair scheduled for October 21 in Hengqin, Zhuhai, China.

He expressed hope for continued close contact with Huang Fang, with more cooperation opportunities in the future, saying, “Let’s work together for the betterment of economic and trade cooperation between Chongqing, China, and Sabah, Malaysia. Let’s walk the path together and prosper together!”

The delegation also included Henry Shim, Special Officer to the Minister of Industrial, Development and Entrepreneurship of Sabah; Brett Chua, Deputy President of SCCC; Ling Hang Tze, Director of IT & Information; and Chen Peng Yu, representative of the Sabah-Jilin International Cooperation Project.

During the visit, the Sabah delegation also inspected the Dazu District e-commerce industrial park, Dazu Rock Carvings, Chongqing Jielilai Furniture, Chongqing Qiaofeng Cutlery Co., Ltd., Chongqing Gonghua Vehicle Industry Co., Ltd., Chongqing Dalong Yufeng Motorcycle, and Chongqing Tailg Motorcycle Co., Ltd.

Source: Borneo Post

China motorcycle firms invited to invest in Sabah

Malaysia aims to raise the manufacturing sector’s contribution to economic output while reducing harmful gas emission under a new policy launched on Thursday.

The government is seeking to lift the sector’s contribution to gross domestic product from its current baseline of 24% but via more “sustainable pathways”, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. He did not provide a target.

“This is an opportune forum to launch the circular economic policy framework, which aims to reformulate fossil-fuel-based industrial models and catalyse green growth practices across the manufacturing value chain,” he said in his speech at a petrochemical conference.

The framework also aims to ensure the sector reduces its carbon dioxide and greenhouse gas emissions from the current 20% contribution to Malaysia’s national climate change reporting for both Scope 1 and Scope 2.

Scope 1 emissions are directly emitted from a company’s own production processes, while Scope 2 covers emissions from the fuel or energy bought or used by a company.

New policy to complement earlier plans

Malaysia had earlier unveiled a series of economic plans, including the New Industrial Master Plan 2030 (NIMP 2030) and the Green Investment Strategy (GIS), in a bid to support economic growth and accelerate the transition away from fossil fuel.

The new policy is expected to complement the ambitions of the plans, Zafrul said, noting that the circular economy in particular is featured prominently as one of the levers towards decarbonisation under both the NIMP 2030 and GIS.

“We will strive to seek investments in areas such as remanufacturing and refurbishment, industrial waste management and advanced recycling,” he said.

Blessed with abundant natural resources and feedstock, some one billion tonnes of natural resources are projected to be extracted annually in Malaysia by 2030 if production continues under the same conventional methods.

Malaysia can expect a “significant” amount of industrial waste and pollution risks, he warned, stressing that Malaysia needs an industrial ecosystem that will ensure sustainability and resilience of its economy over the long term and achieve net zero by 2050.

The new circular economic framework will “leverage the role of manufacturers with a strategic focus on material, heat and water input”, he continued, “particularly from a life cycle perspective comprising the design, manufacturing, distribution and retirement stages of a product, followed by how much of it can be recycled”.

Source: The Edge Malaysia

Malaysia launches policy to transform fossil fuel industries, boost green growth in manufacturing

The Ministry of Investment, Trade and Industry (MITI) has launched the Circular Economy Policy Framework with the aim of reformulating fossil-fuel-based industrial models and catalysing green growth practices across the manufacturing value chain.

Its minister, Tengku Datuk Seri Zafrul Abdul Aziz, said the framework outlines extended producer responsibility (EPR) as a key strategy to ensure that local producers take responsibility for the entire life cycle of their products until their eventual disposal.

“The aim of EPR is not to penalise producers, but for them to incorporate the costs of environmental management within the production process, incentivising more sustainable practices along the way.

“In achieving circularity, MITI would like to urge all industries and manufacturers to rethink their operations and adopt more innovative approaches to be part of the circular economy ecosystem,” he said when launching the framework at the second Petrochemicals Sustainability Conference here, today.

According to Tengku Zafrul, the framework is critical for two main reasons: firstly, to elevate the sector’s contribution to the gross domestic product (GDP) from its current baseline of 24 per cent but via more sustainable pathways.

“Secondly, it is to ensure the sector reduces its carbon dioxide and greenhouse gas emissions from the current 20 per cent contribution to our national climate change reporting,” he said.

Tengku Zafrul said the framework has also been designed to complement the ambitions of the New Industrial Master Plan 2030 (NIMP 2030), the National Energy Transition Roadmap (NETR), the National Industry Framework for ESG (i-ESG) and the Green Investment Strategy (GIS).

“We will strive to seek investments in areas such as remanufacturing and refurbishment, industrial waste management and advanced recycling.

“This will result in the production of new sustainable industries and products, opening up new business opportunities for our industry,” he said.

The minister added that MITI hopes to attract more green investments by implementing the framework and enabling the growth of a green economy.

On the regional front, Tengku Zafrul said Southeast Asia could lose up to 11 per cent of its GDP by the end of this century if it fails to address climate change.

Hence, he said that as Malaysia assumes the chair of ASEAN by year-end, MITI plans to provide more impetus to this region’s sustainability effort while considering the different capacities of each member country.

“Catalysing access to financing for climate resilience in ASEAN and the swift adoption of the Circular Economy Policy Framework will set the tone for that ambition,” he said.

Source: Bernama

MITI launches Circular Economy Policy Framework to promote sustainable manufacturing growth

Penang recorded approved manufacturing investments totalling RM411.8 million from China in the first half of this year, said Chief Minister Chow Kon Yeow.

He highlighted that 53 Chinese companies are currently operating in Penang, with 46 involved in manufacturing, five in global business services and two in logistics.

“Our long-standing relationship with China has strengthened over the years, especially in trade and investments.

“Over the past decade, Penang has secured RM13.2 billion in approved manufacturing investments from China (representing 6.8% of Penang’s total foreign direct investments (FDI)) in approved manufacturing investments, with a 50.5% compound annual growth rate,” he said during a reception in celebration of the 75th anniversary of the founding of the People’s Republic of China here on Tuesday.

Chow said the state will continue to welcome strategic investments from China in promoted sectors, especially those that can generate a series of multiplier effects in terms of ecosystem relevance, high value-added, global value chain exposures and supply chain localisation opportunities.

On tourism, he noted a sharp rise in Chinese visitors to Penang, where in the first eight months of 2024 (8M2024), the state welcomed 74,891 Chinese tourists via Penang International Airport (PIA) and 8,391 through the Swettenham Pier Cruise Terminal (SPCT).

This marked a significant increase from 8M2023, where PIA saw 21,529 arrivals of Chinese tourists and SPCT recorded 5,819 Chinese visitors.

Meanwhile, China’s consul general in Penang, Zhou Youbin noted that Penang, Kedah, Perlis and Perak have witnessed a continuous development in bilateral economic and trade cooperation, with an endless stream of Chinese enterprises exploring investment opportunities in the states.

He said many Chinese enterprises currently operating in the consular district have decided to increase their investment and expand their business to support local economic development.

Zhou added that in 8M2024, bilateral trade between China and Malaysia surged to US$135.23 billion, an 11% increase compared with 8M2023.

China is Malaysia’s largest trading partner and a major FDI source. Last year, the country was one of Malaysia’s five largest sources of foreign investment, with a total investment of US$3.15 billion.

Source: Bernama

Penang recorded RM411.8m in approved manufacturing investments from China in 1H2024 — CM

LOCAL drone company Aerodyne Group is eyeing global expansion after securing top 4 finalists in the recent FedEx 2024 Small Business Grant Contest in Asia Pacific.

Aerodyne is a DT3 (drone technology, data technology and digital transformation) enterprise solutions provider that utilises drone data and AI-powered analytics to address complex industrial challenges.

This success positions Aerodyne within a select group of top startups sharing a US$69,000 (RM289,000) prize pool, intended to spur regional and global expansion.

According to Aerodyne Group’s founder and Group chief executive officer, Kamarul A Muhamed, participating in the contest was a rewarding experience, offering a platform to showcase our innovations and connect with other forward-thinking businesses.

“The main challenge was succinctly communicating the complexity and impact of our technology within the contest’s format. This experience underscored the importance of effective storytelling in business, which played a crucial role in engaging the judges and the audience,” he said.

He added that this provides substantial benefits to the broader Malaysian tech sector, offering international visibility and validation.

“For companies like ours, which operate on a global scale, this contest helps highlight Malaysia’s potential as a hub for cutting-edge technology. The recognition from this contest underscores the importance of nurturing local innovation to achieve international success,” he said, adding that it boosts Aerodyne’s credibility when approaching potential partners and clients globally.

“This exposure encourages us to continue investing in cutting-edge technology to maintain our competitive edge and further our global presence,” he added.

Commenting on Aerodyne’s next move, Kamarul said “We aim to further penetrate international markets such as South America and Africa while strengthening our presence in Asia”.

“We plan to launch new AI-driven drone solutions that will transform sectors like agriculture and logistics. Additionally, we are exploring strategic partnerships and acquisitions to enhance our technological capabilities and market reach. Another major milestone is our goal to advance technology for the good of the planet, using our innovations to promote social impact,” he said.

Meanwhile, FedEx Malaysia managing director, Tien Long Woon, said the Small Business Grant Contest (SBGC) is an annual competition organised by FedEx to support small businesses and business owners in transforming their innovative ideas into successful realities by thinking differently, finding new solutions and challenging the status quo.

“This initiative reflects our investment in the local and global economic ecosystem,” he said.

Tien said Aerodyne was nominated as a finalist for its autonomous drones that can spray crops, inspect power lines and monitor city streets, showcasing its scalable business ideas and remarkable vision.

“FedEx plays a pivotal role in empowering local SMEs like Aerodyne Group to thrive and expand globally. SMEs drive innovation and job creation, forming the backbone of economies globally and in Malaysia. Our commitment is to provide them with reliable shipping solutions and access to global markets to compete internationally,” he said.

Source: NST

Local drone firm Aerodyne eyes global expansion

IOI Properties Group Bhd expects to launch the IOI Industrial Park, Banting, Selangor, with a gross development value of more than Rm1.5bil in the second quarter of next year, says group chief operating officer Teh Chin Guan.

The industrial park, he said, would be sited on 130.31ha.

In its first 28.33ha phase, it will have 53 clusters, semi-detached and bungalow factory units plus land parcels for sale.

Teh said the company was focusing on infrastructure like road and drainage systems, as it aimed to show investors the basic setup of an industrial park by next year.

He told the media this after launching the IOI Industrial Park series in Banting in Selangor and Iskandar Malaysia in Johor.

It coincided with the expansion of isynergy Kulai from 205.17ha to 445.15 ha.

Teh said the company was looking at a potential revenue contribution of at least 20% per annum from its industrial portfolio over the next few years.

“Our annual revenue is around Rm2bil.

“So, we are expecting Rm400mil annually (from the industrial portfolio) for the next few years.

“Our Melaka industrial park will be launched in Q4 2025.

“It is still in the pipeline, as we have some 323.75ha and are carving out an initial 80.94ha,” he elaborated.

Teh said the Melaka industrial park would be slightly different compared to the ones in Selangor and Johor because it was strategically located between the latter two states.

“For some businesses that may need to service Selangor and Johor, the Melaka industrial park will serve as an excellent warehousing, logistics and food and beverage hub.

“In a day, goods can be sent to the north and south within two hours,” he highlighted.

The group hopes to have two more industrial parks in the next three to five years – in Bahau, Negri Sembilan, and Segamat, Johor.

“Leveraging on IOI Properties’ sizeable and strategic landbank, the IOI Industrial Park series is aligned with the target of achieving at least 10% growth year-on-year in approved investments.

“This comes amid wider international interest driven by Malaysia’s strategic location, skilled labour and mature infrastructure,” said Teh during the launch.

Malaysian Investment Development Authority (Mida) domestic investment division director Sukri Abu Bakar, Invest Selangor investment development division director Nik Izuddin Nik Mohd Yusof and Invest Johor manager (pre-investment and promotion) James Tan Wei Jie were also present.

IOI Properties posted a 48% rise in net profit to Rm2.06bil in FY2024 from Rm1.37bil a year ago.

Revenue rose 13.4% to Rm2.94bil from Rm2.59bil.

Source: The Star

Property developer to launch industrial park in Banting next year

Thirty years ago, in 1994, the Suzhou Industrial Park was established as a joint venture between the governments of China and Singapore. Despite some initial hiccups, this industrial park is widely seen as a success story in putting Suzhou on the international map with many multinational corporations (MNCs) setting up shop there. World-class industrial parks can similarly be an important positioning feature in the Johor-Singapore Special Economic Zone (JSSEZ) to attract new MNC investments to this area. With a better coordinated marketing strategy by the relevant investment promotion agencies and strategic partnerships facilitated by industrial park developers, such developments have the potential to change the manufacturing landscape in southern Johor. They can also catalyse the development of related service capabilities that can be deployed to other parts of the country and potentially as exports.

The current quality of industrial parks in Malaysia suffers from a wide variance, with many of the older industrial parks facing serious challenges of poor infrastructure which have not been properly maintained as a result of ineffective management. Some of the older industrial parks that are located close to residential areas have not been “legalised” and as such, do not even have public amenities such as fire hydrants. As it stands, there is no proper classification framework for industrial parks.

This is not to say there are no best-in-class industrial parks in the country. AME Elite Consortium Bhd, a publicly listed company, made its name developing award-winning integrated industrial parks in its home base of Johor, including I-Park in Senai, which I’ve visited. Not only is the infrastructure for these parks well developed and well maintained, shared facilities and common recreational areas are also provided. Accommodation for workers is often located nearby. The industrial parks as well as the workers’ accommodation are still managed by the developer. Many of the properties built and managed by AME were packaged into a real estate investment trust (REIT) in 2021.

The characteristics of world-class industrial parks are increasingly shaped by the demands of MNCs that have adopted strict ESG standards for their manufacturing facilities. These include:

•     Transparent and detailed master plans

•     Energy and environmental sustainability (solar renewable energy (RE) on rooftops, centralised district cooling and heat recovery systems, detailed waste management plans including recycling of wastewater)

•     Workers’ accommodation, welfare and safety (especially for foreign workers)

•     Risk and safety management (safety of processes and for people, managing accidents, real-time monitoring of activities)

•     Management of common property and infrastructure (usually by the developer)

•     Internet and mobile connectivity (Broadband, 4G and 5G)

•     Alignment with government policies in terms of tax and other incentives

Integration with nearby townships with commercial and residential developments are a bonus.

UNIDO, the United Nations Industrial Development Organization, has devised detailed recommendations in the Industrial, Environmental and Social Infrastructure of industrial parks to achieve optimum objectives for developers and customers. The organisation has also devised a framework for eco-industrial parks, in line with changing global demands.

It may be worthwhile for property developers that are new to industrial park development to consider strategic partnerships with local and foreign players to bring new technologies and value propositions into the picture. These partnerships can raise the value of industrial park properties and help attract higher quality investments, especially if the presence of these strategic partners can increase the brand value of these parks. It may also be worthwhile to explore models of rehabilitating “brownfield” industrial park sites into eco-industrial parks with support from local, state and federal governments, with the possible assistance of international organisations such as the Asian Development Bank and the World Bank. Malaysia-China, Malaysia-Japan, Malaysia-South Korea and Malaysia-EU branded industrial parks with infrastructure players from partner countries to anchor these developments should also be considered.

Examples of strategic local partners include Pantas, a start-up in the climate solutions for carbon and ESG measurement and management space; I-Handal for heating and energy solutions; KJTS for centralised district cooling systems and facilities management; and Solarvest for RE solutions and UEM Lestra for the larger RE ecosystem solutions, just to mention a few. Examples of foreign strategic partners include Keppel Infrastructure and CapitaLand (Singapore), IHI Asia Pacific (Japan) and CMEC (China).

The private sector should also collaborate with relevant government agencies such as the Malaysian Investment Development Authority (Mida) to come up with a proper classification scheme for factories as well as industrial parks, similar to the framework provided by the Green Building Index (GBI) for office buildings. Having such a classification scheme will provide incentives for industrial park developers to provide better infrastructure and incorporate more sustainability features in their master plan. This will slowly upgrade and raise the capability of industrial park developers in the country and get the private sector more used to paying for quality infrastructure and better facilities. In addition, this can create business opportunities for the service sectors involved in building better quality industrial parks such as those involved in energy management software systems and safety and security monitoring systems, as examples.

The JSSEZ provides a fantastic platform to catalyse the development of world-class industrial parks. There will be many more opportunities to replicate the cooperation between UEM Sunrise and CapitaLand, which are working on a joint venture in the development of the Nusajaya Techpark near Iskandar Puteri. JLand’s massive Ibrahim Technopolis (IBTEC) also provides interesting collaborative opportunities.

The experience which Malaysian companies can obtain from strategic partnerships will hopefully allow some of them to spread their wings and expand these developments beyond Johor and our borders.

If world-class industrial parks become a normal part of the economic landscape in Malaysia, with the JSSEZ as the catalyst, our manufacturing ecosystem would look very different within a decade.

A version of this article was presented at the UEM Sunrise Real Estate Forum on Sept 4.

---

Professor Dr Ong Kian Ming is the pro vice-chancellor for external engagement at Taylor’s University. He can be reached at [email protected].

Source: The Edge Malaysia

The case for world-class industrial parks in Malaysia

Launched in May, the National Semiconductor Strategy (NSS) has had time to resonate with industry players, allowing them to provide feedback on its strengths and weaknesses. In a fireside chat with The Edge Media Group publisher and group CEO Datuk Ho Kay Tat, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz noted that the government has been actively engaging with stakeholders. Despite limited resources, the government is striving to incorporate as much of the feedback into the NSS as possible.

“[The NSS] is a live document, so we can always incorporate new elements that can improve the plan. That’s why engagements like today as well as our team on the ground has been meeting industries [for feedback],” he said during the fireside chat titled “The Multiplier Effect” at The Edge-HSBC New Era for E&E Industry Forum 2024.

The NSS also creates awareness among companies, prompting them to plan for the future in tandem with what policymakers want to see in this sector. “We need to give clarity, not just in terms of the roadmap, but also the timeline to support our ambition to be a major hub for the semiconductor sector,” Zafrul said.

However, after launching the NSS, he said the government realised that it needed to spend some time addressing the challenges, and it needed a bit more time to find solutions. Some of the challenges include the need for talent and for the industry to be green and to grow sustainably.

“This sector consumes a lot of energy. And going forward, they are mandated by their own stakeholders to meet their sustainability targets, so they do need green power,” Zafrul added.

“Thankfully, by September, we will hear the announcement on the availability of third-party access. That means companies can tap the grid to supply green power.”

In August, it was reported that the government will introduce the Corporate Renewable Energy Supply Scheme (CRESS) in September to increase corporate entities’ access to green electricity.

Through the concept of open grid access, third parties can supply (sell) or obtain (buy) electricity via the grid network system with a predetermined system access charge.

A need for better infrastructure and ecosystem

There are three areas of focus in the semiconductor industry currently — technology, climate change and finally, logistics, which is a particularly important part of the equation as the sector requires the movement of goods at a pace not seen by other industries.

Zafrul said there is an expectation that the government has to spend money to upgrade the infrastructure to become competitive in the sector globally. “We are lucky because we’ve been in this sector for the last 50 years. So in terms of talent, we can build [on] what we have.”

“We’re also lucky the infrastructure is there, but perhaps we underestimate the growth. Therefore, we need to catch up and prepare for that.”

He added that 80% of the total export of the country is manufacturing and 20% is commodities. Of that 80% exports in the manufacturing sector, half is E&E.

“That’s how important infrastructure is in terms of logistics to support the kind of growth that NSS is expecting. So if you assume that kind of growth, you have to make sure that the supporting ecosystem is there to cater towards that growth.”

Going up the value chain

For quite a while now, the government and industry players have been lamenting that Malaysia needs to “move up the value chain” in the semiconductor space. This means that the focus is to move away from manufacturing and to focus more on innovation (in the form of E&E engineering) in the semiconductor space.

Malaysia has a strong foundation in Outsourced Semiconductor Assembly and Test (OSAT) integrated circuit (IC) design, which Zafrul said accounts for 13% of back-end operations globally.

Malaysia is slowly becoming a player in the IC design space as well, with states such as Penang, Selangor and Sarawak announcing initiatives and hubs to spur this growth, indicating that the country is in the midst of going up the value chain.

“Wafer fabrication requires high capex (capital expenditure) and high grant support by the government. In fact, in India, the government gives a capital grant of up to 75% to a company. It’s not easy to compete with that kind of fiscal strength and we don’t have that fiscal space. So, we have to use other natural competitive advantages that we have to move up the value chain,” said Zafrul.

“That’s why I think we need a concerted effort where all companies, together with the government, together with the other stakeholders, we need to work as one, a whole of nation approach to move this up the value chain.”

Wafer fabrication is one of the most capital-intensive and technology-intensive industries. A 300mm (12in) wafer fabrication factory costs US$2.5 billion (RM10.7 billion) to US$3.5 billion, with the cost of equipment approaching 70% to 80% of the factory’s capital costs.

A silicon wafer, the substrate for most semiconductor devices, incurs expense through its journey from sand to a sophisticated electronic enabler. Multiple variables dictate the final price of these components, with important cost determinants being processing equipment, wafer size, production volumes, labour costs and technology node. The manufacturing process demarcates into various process steps, each incrementing the price through the use of materials, resources and human expertise.

Zafrul also addressed the issue of funding for the semiconductor sector, particularly in relation to the RM25 billion allocated under the NSS. While the funds are earmarked for research and development (R&D), incentives and talent development, the minister said this amount alone is insufficient to fully drive the industry’s growth.

“We need to work closely with [other agencies] and it’s also why I’m bringing in funds [into this sector]. Many private equity players, pension funds and even government funds are trying to understand this industry because they are not as exposed to this industry as they should be,” he said.

“They are more exposed to traditional portfolios because they want stable returns but when you look at the majority of this sector, there are opportunities as well.”

He added that the semiconductor industry requires capital at various stages of growth, ranging from mezzanine financing to venture capital and bank loans. A nationwide, collaborative approach will be key to advancing the industry and positioning Malaysia as a global player.

“The NSS is looking at collaboration with all relevant stakeholders to get things off the ground faster.”

“It is aggressive, but it is what we actually have in mind. We’re also talking to a few companies and trying to work together so that we can develop a global champion too.”

Although the strategy is ambitious, he said the government is already in discussions with several companies to foster the development of a globally recognised semiconductor champion.

Keeping out of the tech-war crossfire

Concerns were also raised about the ongoing tech war among countries such as China, Russia and the US, and whether Malaysia will be caught in the middle of it. While Malaysia’s neutral stance has been made very clear, Zafrul said Malaysia still needs to be careful when navigating the tech war.

“We are friends to all parties. You can see that even in our multilateral agreements that we signed with other countries, and negotiating today, it covers all.”

Some of the partnerships in which Malaysia is part of is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)’ the Regional Comprehensive Economic Partnership (RCEP), which includes China, South Korea and Japan; and the Indo-Pacific Economic Framework (IPEF), which is led by the US.

Prime Minister Datuk Seri Anwar Ibrahim also announced that negotiations were resuming on the Malaysia-EU Free Trade Agreement. On top of that, Malaysia has applied to join intergovernmental organisation BRICS.

“The West has raised concerns as well [and asked] why we are joining BRICS. But then again, we are joining everything. We are not just choosing one instead of another,” said Zafrul.

“Are we pivoting to any side? No. We want to strengthen Malaysia’s position and when we talk to companies, I think what they want to see is that this region continues to be engaging with all, because we want a region that is stable, which will bring peace.”

Source: The Edge Malaysia

Forging partnerships to power Malaysia’s semiconductor future

The expansion of EV and recycling sectors is expected to create 30,000 to 50,000 high-skilled jobs in the coming decade 

THE global electric vehicle (EV) battery recycling market is projected to hit US$6.5 billion (RM27.56 billion) by 2030, growing at a 37.1% compound annual growth rate. 

This is due to rising electric EV demand, recycling regulations and resource concerns. The International Energy Agency (IEA) Global EV Outlook 2024 reports a continued rise in EV sales, expecting 17 million sold in 2024, accounting for over 20% of all global car sales.

This growth builds on the strong performance of 2023, during which EVs represented 18% of total car sales, marking a 35% year-on-year increase. 

In the local context, the Malaysian Investment Development Authority (MIDA) reported that the battery market is expected to grow at an annual rate of 5.28% from 2022 to 2027 in Malaysia. 

Pertinent to the matter, Malaysia is set to become a key player in EV battery production and e-waste recycling, due to its strong electronics industry and supportive government policies. 

Universiti Malaya Faculty of Business and Economics Deputy Dean (Development) Goh Lim Thye highlighted that the country’s focus on building EV infrastructure and promoting recycling would strengthen its position in both domestic and regional markets. 

Malaysia has set a goal of having 1.5 million EVs on the road by 2040, representing 6% to 7% of the total vehicle fleet. While ambitious, Goh believes the target is achievable. 

In 2023, Malaysia saw a 286% increase in EV sales, reaching 10,159 units, while Southeast Asia as a whole sold 153,500 EVs, with Thailand leading the region. 

“The expansion of EV and recycling sectors is expected to create 30,000 to 50,000 high-skilled jobs in the coming decade, contributing significantly to our economy, particularly in research and development, manufacturing and technology development. 

“Malaysia has successfully attracted more than RM5 billion in foreign direct investment (FDI), securing investments from key global players like Tesla Inc, BYD Co Ltd, and Zhejiang Geely Holding Group Co Ltd, further solidifying our role as a regional leader,” he told The Malaysian Reserve (TMR). 

Despite the economic potential of the EV battery and e-waste recycling industry, assistance is required in terms of supply chain development, infrastructure, competition and lack of a skilled workforce. 

Malaysia faces challenges in achieving cost-competitive battery production due to a lack of a fully integrated local supply chain for essential raw materials like lithium, cobalt and nickel. 

Despite the progress, there are only 2,000 charging stations in the country, although the target is to reach 10,000 by 2025. 

Goh suggested innovating and enhancing the country’s manufacturing and recycling capabilities to maintain competitiveness. 

On the other hand, a skilled workforce is crucial for driving innovation in battery technology and recycling processes. 

Goh said Malaysia’s strong electronics manufacturing base enables the adopting of advanced technologies like artificial intelligence (AI)-driven e-waste sorting systems, battery recycling processes and smart grid integration for cost reduction and sustainability. 

The country’s substantial initial capital investments in green technologies and infrastructure are crucial for achieving long-term economic and environmental benefits. 

“Malaysia will not only reduce its carbon footprint but also enhance its attractiveness as a destination for green investments. 

“By investing today, we set the foundation for sustainable growth that aligns with our net-zero emissions goals while securing our economic future,” he added. 

Learn from Others 

On June 26, Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad announced that the guidelines for the disposal of EV batteries are currently in development. This is due to concerns surrounding its disposal which could harm the environment. 

Automotive EV-HUB director, senior EV technology consultant and specialist director Joseph Alexander Ebrahmian welcomed the ministry’s proposal and hoped that it would be supported by all original equipment manufacturers. 

EV batteries typically last about 10 years but in case of accidents or unforeseen reasons, they need to be disposed of. 

“Cell disposal is very hazardous as they are flammable and toxic. Having facilities to recycle the cells and extract the valuable ingredients would be a good move,” he told TMR. 

Unfortunately, Malaysia has yet to have the technical capacity to manage large-scale EV battery disposal and recycling. 

Therefore, Ebrahmian suggested that the government should look at countries which have a large adoption of EVs, specifically the US and Korea. 

“Their environmental laws are very restrictive and good to be followed. Also, some factories and companies would be willing to invest themselves and set up operations in Malaysia to cover the ASEAN region,” he added. 

The EV battery recycling business has a lot of potential as it can generate a profit margin. Ebrahmian proposed to repackage older batteries as an energy storage system (ESS) for rural and residential areas, similar to how Tesla Powerwall units are utilised.

The Powerwall batteries are rechargeable home batteries that do not require huge energy transfers. 

“Connect them to the power grid or solar array and we are done. Also, we can give battery replacement deadlines of eight years maximum while giving them a full inspection in five years to ensure they are safe to use,” he said. 

Sometimes, the same material can be repackaged as drone battery modules that are smaller in size. Ebrahmian suggested examining countries that have succeeded in this area. 

In the ASEAN region, Singapore and Thailand are leading in battery disposal and recycling. 

Singapore, through companies like TESAMmm Singapore Pte Ltd, has advanced facilities for recycling lithium-ion batteries and recovering valuable materials like lithium, cobalt and nickel. These efforts are part of Singapore’s goal to become a green economy hub. 

Similarly, Thailand is progressing with companies like SCG International Corporation, developing EV battery recycling systems, supported by government incentives and regulations that promote sustainability. 

On the other hand, Ebrahmian warned that Malaysia has to deal with challenges such as funding, location, logistics and political games. 

There will also be parties where they would want to monopoly the EV battery recycling industry. 

“Licences must be given to proper industry players, even overseas companies with experience should be allowed to take part,” he suggested. 

Ebrahmian further explained that Malaysia is still lacking professional EV experts who know the subject well. 

“EV batteries are different from normal lead acid 12V batteries and no one becomes an expert by searching Google for answers. 

“We need to get the right people to lead the proposal and project, and make the necessary planning away from politics and consider all sorts of post-life use for battery packs and cells,” he stressed. 

An Industry Still in its Infant Stage

On the other hand, Blueshark Malaysia head of product & aftersales Thevaraj Bala was optimistic that battery standards and guidelines are expected to enhance interoperability among manufacturers. 

In turn, this will lead to a unified initiative with clear goals and policies for nationwide battery disposal. 

“Achieving interoperability is challenging due to the presence of diverse standards and competing interests in the energy and battery sectors. 

“However, by implementing a government-led national two-wheeled EV battery standard, we could potentially harmonise charging and battery solutions, paving the way for widespread adoption and streamlined energy solutions,” he told TMR. 

Implementing an integrated solution for first-to-last mile electrification can help fleet operators meet environmental, social and governance targets, reducing the total cost of ownership, capital expenditure or operational expenditure, and carbon footprint while enhancing their green credentials. 

Since the company is still less than two years in the market, Blueshark has yet to reach a point where large-scale battery operations are needed. Currently, all of its batteries are still new and in active circulation. 

The EV tech mobility company, which is a subsidiary of China-based Sharkgulf Technologies Group, only penetrated the local market in March 2023. Their focus is on selling two-wheeled EVs which include motorcycles and scooters. 

The company is a member of the National Standards Committee on Transport’s BSS Working Group formed by the Trade and Investments Ministry to develop standards and guidelines for two-wheeled EVs in Malaysia. 

Nevertheless, Bala said the company is ready to provide seamless service to its customers while reducing its environmental impact. 

“Our plans include a comprehensive battery second-life initiative, with eventual recycling as a key part of our strategy,” he added. 

The company strives to establish Malaysia as the manufacturing and assembly hub for its products in the ASEAN market. 

However, Bala also anticipates a significant increase in battery volumes from neighbouring countries with higher EV adoption rates, such as Thailand, Vietnam, and Indonesia, owing to the region’s emphasis on decarbonisation and EV expansion. 

For this, Blueshark is open to partnering with local recycling facilities to create efficient processes for recycling used batteries as part of its sustainability efforts. 

“We are committed to reducing our carbon footprint in all areas of production, operations, and energy efficiency. 

“We are also exploring partnerships to assemble our batteries locally, further lowering our environmental impact,” he said. 

The company uses an Internet-of-Vehicles (IoV)-enabled backend system to optimise battery management in Malaysia. 

This provides real-time data on usage, charging patterns, and health across its network of riders and batteries. In turn, it benefits both customers and business operations. 

Blueshark’s batteries have a dual lifecy- cle which provides utility beyond automotive use. Thus, it plans for battery recycling as part of its renewable energy strategy. 

“Once the batteries reach the end of their automotive lifecycle, they can still be repurposed for other energy needs,” Bala said. 

He noted its usage as energy storage for businesses, small homes, or machinery, especially in remote or off-grid areas, supporting sustainable energy practices even after their original use. 

He also said Blueshark implements policies for safe disposal and recycling of used EV batteries. 

As its nationwide expansion continues, the company also anticipates a significant increase in battery usage and has implemented internal policies to manage this growth while adhering to government regulations. 

With the fast growth of the domestic EV market, the company expects EV adoption to double, driven by better infrastructure, more consumer choices, and the likely removal of fuel subsidies. 

“To support this, we are working with the government and corporations to elec- trify motorcycle fleets and expand our battery-swapping infrastructure to encourage the use of two-wheel EVs,” he added. 

Ensuring the Waste is Safely Taken Care of

MIDA’s report, “Chemical Industry Innovations Driving Sustainable Mobility,” notes that Malaysia is in the early stages of lithium-ion battery production but is progressing steadily by integrating the entire supply chain, from cell manufacturing to pack assembly. 

The government is supporting this growth with incentives and grants to boost the development of advanced batteries and promote a circular economy. 

However, the disposal of used batteries is a major concern due to their toxic components, which can contaminate the environment if not recycled properly. 

Recycling is crucial to recover valuable materials like lithium, cobalt, and nickel, which can be reused to produce new batteries and ensure a sustainable resource cycle. 

The 2021 IEA report “The Role of Critical Minerals in Clean Energy Transitions” highlights that EVs use six times more minerals than gasoline cars, with lithium, nickel, cobalt and copper posing environmental and economic challenges due to their toxicity and high costs. 

Mining these materials, particularly nickel and lithium, causes deforestation, depletes water supplies, and contributes to human rights concerns in regions like the Democratic Republic of Congo. 

Despite the growing efforts to recycle EV batteries, only a small percentage are currently recycled, unlike gasoline vehicle batteries, which have a 90% recycling rate. 

The lack of standardisation in battery designs complicates recycling processes, making dismantling costly and dangerous. 

While up to 95% of materials like nickel and cobalt can be recovered through recycling, the rising demand for EVs will still necessitate new mining operations. 

Similarly, a 2021 study cited by Earth. org confirms that many EV batteries end up in landfills, leaking harmful chemicals and that current recycling methods, such as high-temperature smelting, are costly and inefficient. 

Although repurposing batteries is less common, it plays an important role in reducing the need for new mining. 

The ongoing lack of standardisation in battery designs continues to pose significant challenges for recycling efforts. 

This highlights the critical need for improved recycling technologies and more sustainable mining practices to support the expanding EV market. 

In Malaysia, the Environmental Quality (Scheduled Wastes) Regulations 2005 classify e-waste and EV batteries as hazardous wastes, requiring strict management to prevent environmental contamination and health risks. 

These wastes must be disposed of at licensed facilities and stored securely to prevent leakage or harm. 

Proper labelling, record-keeping, and transportation by licensed carriers are mandatory, ensuring safe handling. 

Additionally, the regulations demand that companies track and report waste handling to the Department of Environment (DOE). 

DOE predicts that Malaysia will generate 24.5 million units of e-waste by 2025. 

For the general battery recycling, research and consulting firm, Cleantech Group in its battery recycling report highlighted that different recycling methods target specific battery chemistries for economic efficiency. 

Direct recycling works best for low-cobalt batteries with cheaper repair costs. 

Hydrometallurgy is suited for high lithium batteries and competes with pyrometallurgy, which is ideal for processing mixed waste with low lithium content. 

In the long term, the report stated that direct recycling is expected to dominate due to its high recovery rates, while hydrometallurgy and pyrometallurgy will be complementary for more complex waste. 

Globally, companies like Umicore NV, BASF SE and Glencore plc are expanding into recycling, and major battery manufacturers like Contemporary Amperex Technology Co (CATL) and Panasonic Holdings Corporation are integrating on-site recycling to strengthen their supply chains. 

Though direct recycling has advantages, current challenges with sorting allow hydro-metallurgy to capture the market faster. 

The report further noted that battery recycling saw over US$8 billion in investments from 2021 to 2023, driven by price fluctuations in cobalt, nickel, and lithium. 

With the growing market of EVs, lies an opportunity for Malaysia to tap into the e-waste and EV battery disposal and recycling sector. Nevertheless, the industry needs support to develop and improve the whole ecosystem, but there is still a big chunk of the cake for Malaysia in the region. 

Safety, Operational Standards Enforcement

The Department of Environment (DOE) in Malaysia ensures that e-waste management aligns with the country’s sustainability goals by enforcing safety and operational standards. E-waste, classified as Scheduled Waste under Code SW110, includes hazardous materials from electronic devices, such as batteries and certain toxic metals. 

According to DOE DG Datuk Wan Abdul Latiff Wan Jaffar, e-waste primarily comes from industrial processes and consumers. While industrial e-waste is regulated under the 2005 Environmental Quality Regulations, the government is developing a system to manage consumer e-waste. 

Improper handling of e-waste can lead to severe environmental issues, including air and water pollution, soil contamination, and ozone layer damage. These problems pose significant health risks, such as heart and lung diseases, liver and kidney damage, and increased cancer risk. 

To promote environmentally sound management of e-waste, the DOE requires each waste generator to take full responsibility for their waste. 

“They must register and report their e-waste through the Electronic Scheduled Waste Information System (eSWIS), developed by the DOE to track the movement of scheduled waste. E-waste must be sent to licensed premises prescribed by the DOE for proper disposal. 

“Under Section 49A of the Environmental Quality Act 1974, waste generators are required to have a competent person overseeing waste management at their premises,” said Wan Abdul Latiff. 

The DOE is working to strengthen regulations as e-waste grows due to advancing technology and increased demand for electronic devices. To combat illegal e-waste dumping, like the incident at Westports, the DOE has enhanced collaboration with agencies such as the Royal Customs Department, Port Authority, SIRIM and SWCorp. 

A special task force now inspects containers at national entry points. Cooperation between federal and state governments is essential to stop illegal e-waste imports and protect the environment. For the 175 licensed e-waste processing facilities in Malaysia, the DOE ensures they meet regulatory standards and can safely manage materials like solar panels and EV batteries. 

According to Wan Abdul Latiff, solar panel waste is classified as SW 110 and EV battery waste as SW 103 under the Environmental Quality (Scheduled Waste) Regulations 2005. Facilities managing these types of waste must follow the guidelines outlined in the Environmental Quality (Environmental Impact Assessment) Order 2015, which details the necessary processes, equipment and environmental impacts. Once the Environmental Impact Assessment (EIA) is approved, DOE issues licenses for the facilities. 

The DOE monitors these facilities by ensuring they meet licence and EIA requirements, such as installing Continuous Emission Monitoring Systems, Waste Water Treatment Plants, and tracking waste movements through the eSWIS system. Facilities must also have proper storage, an Emergency Response Plan and trained staff to manage pollution and reduce environmental risks. DOE enforces compliance through inspections, audits and monitoring. 

Additionally, DOE encourages facilities to adopt new technologies to improve the recovery of valuable materials from hazardous waste, supporting a circular economy. 

The DOE is actively developing and enforcing guidelines for the disposal of solar panels and EV batteries. Both are classified as scheduled waste under codes SW 110 and SW 103 according to the Environmental Quality (Scheduled Wastes) Regulations 2005, and waste generators must comply with these regulations. 

“DOE is preparing a technical guideline focused on the reuse and recovery of these wastes, expected to be published by 2025. This guideline will support the DOE’s efforts to promote a circular economy for scheduled wastes in Malaysia,” Wan Abdul Latiff added. 

To ensure both formal and informal waste collectors adhere to the new disposal guidelines, DOE mandates that all waste generators send their solar panel and EV battery waste to licensed facilities. 

As Malaysia moves forward in the lithium-ion battery production sector, there is increasing concern over the disposal of used batteries due to their toxic components. 

The growing EV market presents an opportunity for Malaysia to further tap into the e-waste and battery recycling sector. With adequate support and the development of a proper ecosystem, Malaysia can play a significant role in the region’s e-waste and EV battery disposal industry. 

Source: The Malaysian Reserve

Malaysia sets for growth in EV battery, e-waste recycling market

Three prominent China-based heavy industry companies are set to expand their operations to Labuan, recognising the island’s strategic potential as a key economic hub.

Labuan Corporation (LC) board member Datuk Seri Liew Shan Wen said the companies — Hangzhou-based Siemens Energy High Voltage Circuit Breaker Co Ltd, Laian KLX Industrial Liability Co Ltd, and InnoVision Capital — are well-established players in China’s heavy industry sector.

“These companies plan to manufacture iron and aluminium products in Labuan, with raw materials sourced from China,” Liew told Bernama after meeting representatives from the companies at Menara Perbadanan Labuan today.

He added that the representatives have already visited several potential sites to establish factories and warehouses.

“They have shown particular interest in leasing the existing facilities at the Labuan Halal Hub Complex. As the local authority, LC is ready to provide support and facilitation,” Liew said.

He also shared that the companies are targeting key energy companies in Malaysia, including Tenaga Nasional Bhd (TNB), as well as energy companies in Thailand, the United States, and Mexico.

Liew also said the LC will arrange meetings with the Ministry of Finance and the Malaysian Investment Development Authority to discuss potential tax incentives and approval for ‘Made in Malaysia’ status for the iron and aluminium products manufactured by the companies.

Laian KLX general manager Jason Pan expressed optimism after the briefing from LC.

“We are more confident in making this plan a reality. We’ve agreed to utilise the existing Halal Hub Complex for our factory and warehouse. The only remaining issue is finalising the tax incentives that can be offered,” added Pan. 

Source: Bernama

3 major Chinese heavy industry firms set to establish operations in Labuan

The Ministry of Investment, Trade and Industry (Miti) will be focusing on addressing the financial and ecological sustainability of the Malaysian iron and steel industry, as it seeks to rechart the industry’s direction in line with the New Industrial Master Plan (NIMP) 2030, said its deputy minister Liew Chin Tong.

This comes more than a year after Miti implemented the two-year moratorium, beginning Aug 15, 2023, on the expansion and diversification of the country’s steel-making industry to allow for reassessments to address the challenges faced by the industry.

Liew said an independent committee for the local iron and steel industry, appointed by Miti minister Tengku Datuk Seri Zafrul Abdul Aziz in January, will present the full report of its findings on the industry within the next “several weeks”.

“Once the independent committee presents its report to the minister, the minister will base it on the report, to decide on the future of the moratorium,” he told reporters after witnessing the signing of a memorandum of understanding between Mycron Steel Bhd and Japanese steel manufacturer JFE Steel Corp, to drive the adoption of green steel solutions in Malaysia.

The  moratorium in the steel-making industry covers all inquiries, assessments of current applications, new applications, licence transfers, expansions, regularisations and diversifications for manufacturing licences in the iron and steel industry.

It also involves a freeze in the issuance of certificates for exemption from manufacturing licence (ICA10) under the Industrial Coordination Act 1975 for manufacturing activities, including non-ferrous recycling activities.

“The two most important questions or terms of reference of the committee is to look at the twin sustainability of the Malaysian steel industry, that is to look at the financial sustainability and the ecological sustainability, and to look at them simultaneously. I think that is the main framing of questions for the committee,” Liew said.

The independent committee, chaired by HSBC Bank Malaysia chief executive officer Datuk Omar Siddiq, was tasked to review and provide proposals on the short, medium and long term roadmap for the entire value chain of the iron and steel industry in accordance with NIMP 2030, and provide a blueprint for the green transition of the steel industry.

It was also set up to provide guidance on how to expand the domestic steel industry to include higher value-added products, which are currently not being produced domestically, as well as to study and provide inputs on how to improve the current governance structure of the iron and steel sector in the country.

Liew stressed that the issue of overcapacity in the steel-manufacturing sector, is not just a Malaysian issue, but “at least an Asean issue, if not a global issue”.

“It has a lot to do with [the subdued] demand for steel in China, as well as the rapid increase in capacity in Southeast Asia, some of which came from investments from China,” he said.

“So we are hoping that we can [use] the report of the independent committee to initiate some constructive discussions with Asean countries.

“I understand that this is not easy, but we think that at some point we will have to deal with the question of rapid building up of capacity in Southeast Asia which eventually is not to anyone’s benefit,” Liew added.

According to the deputy minister, the capacity of steel production in Southeast Asia is expected to increase from 75.3 million tonnes in 2021 to 151.9 million tonnes in 2026 if all potential investments materialise.

Under its MOU with JFE Steel, Mycron Steel will integrate the Japanese company’s JGreeX green steel into its production process. JGreeX employs a mass-balance approach to reduce carbon dioxide  emissions across the entire steel production chain, allocating the emission reductions to specific products.

Source: The Edge Malaysia

MITI to focus on financial, ecological sustainability of Malaysian iron and steel industry

Mycron Steel Bhd has inked a memorandum of understanding (MoU) with Japanese steel producer JFE Steel Corporation to drive the adoption of green steel solutions in Malaysia.

Mycron Steel group chief executive officer Roshan Mahendran Abdullah said the MoU marks the company’s journey into a new green steel revolution.

“We are at the beginning of this journey. Currently, it will only form a small percentage of our overall production, but we are confident that over the next five years, the demand for green steel will grow by two and a half times from what it is now.

“By 2030, green steel can account for up to 25 per cent of the total global steel volume,” he told reporters after the MoU signing ceremony here today.

As part of this initiative, Roshan Mahendran said Mycron plans to launch its own patented green steel products, using a similar mass-balance approach, by next year.

These patented green steel products are designed for industries with higher-end applications, where end-users are willing to pay a premium to reduce their carbon footprint.

In a separate statement, Mycron Steel said it will integrate JFE Steel’s JGreeXTM green steel into its production process.

The JGreeXTM green steel employs a mass-balance approach to significantly reduce carbon dioxide (CO2) emissions across the entire steel production chain, allocating these emission reductions to specific products.

This mass-balance method adheres to the Japan Iron and Steel Federation’s guidelines, ensuring that the environmental benefits are accurately calculated and verified by the independent organisation ClassNK.

Mycron added that the MoU will also focus on developing the green steel market in Malaysia and exploring further advancements in sustainable steel production.

Commenting on the steel industry, which has been subdued by low demand for steel in China, Roshan Mahendran said that an influx of Chinese steel has been flooding the global market.

“It has definitely affected global sentiment, not only in Malaysia, and dampened steel demand. When there is excess supply, customers tend to be more cautious when purchasing.

“So, we are engaging closely with the government, especially the Ministry of Investment, Trade, and Industry. I believe we have been managing the surplus of steel from China,” he said. 

Source: Bernama

Mycron Steel inks MoU with Japan’s JFE Steel to drive green steel solutions in Malaysia

Pharmaniaga Bhd’s newly launched biopharmaceutical plant is expected to lift its gross profit margin to about 30% to 35% for the financial year ending Dec 31, 2026 (FY2026).

The plant, located in Puchong and operated by Pharmaniaga Life Sciences Bhd, has an annual production capacity of up to 30 million doses of human insulin. It will also produce other essential biopharmaceuticals, including vaccines and biosimilars.

“For (human) insulin alone, we are looking for RM100 million per annum and we are also looking over about RM300 million per annum for vaccines. This is in terms of revenue,” Pharmaniaga managing director Zulkifli Jafar told reporters on Thursday.

“This new facility, which is the country’ first locally owned biopharmaceutical plant, will automatically lift up our revenue (going forward),” he said at a press conference after the launching of the new plant.

The RM300 million plant is part of Pharmaniaga’s move to improve its position as a leading pharmaceutical manufacturing company.

A huge part of the group’s business comprises government concession for pharmaceutical distribution. Its distribution segment has a gross margin of around 6% to 10%, Zulkifli told The Edge in a recent interview.

Pharmaniaga reported a net profit of RM28.44 million on revenue of RM1.8 billion for the first six months of 2024 (6MFY2024), marking a return to profitability after two consecutive years of losses. The company’s gross profit margin improved to 11.47% for 6MFY2024, up from 9.04% in FY2023.

The company slipped into Practice Note 17 status in February 2023 amid massive impairment caused by its failure to offload RM552.3 million worth of Covid-19 vaccines.

Lembaga Tabung Angkatan Tentera (LTAT), or the Armed Forces Fund, is the largest shareholder in Pharmaniaga, with its wholly owned flagship Boustead Holdings Bhd holding a collective 54.9% stake in the company.

Source: The Edge Malaysia

Pharmaniaga’s new insulin, vaccine plant to raise FY2026 gross margin to 30%-35%

Malaysia’s electric vehicle (EV) adoption and charging infrastructure expansion are showing positive momentum in shaping the innovation transition in the mobility sector, according to BMW Group Malaysia and Malaysia Zero Emission Vehicle Association (MyZEVA).

BMW Group said in a statement today that EVs are becoming increasingly common on Malaysian roads, with a growing number of registrations of 27,382 EVs across Malaysia as of June 2024.

“Based on registration in the Road Transport Department (JPJ) offices in Peninsular Malaysia, Kuala Lumpur leads at 5,271, followed by Selangor (1,544). Other states with high registration numbers are Johor (657), Penang (351), Sabah (326) and Sarawak (268),” it said.

The group said the growth also underscores the expanding reach of electrified mobility across the country, as more Malaysians, regardless of their location, embrace the benefits of EV ownership.

On charging stations, the car dealer said the number of public charging bays have also risen exponentially to match, providing greater confidence for Malaysians to travel further with their EVs.

It noted that the growing network of charging stations, both in urban areas and along highways, is a crucial factor in supporting the nation’s transition toward electrified mobility.

According to the Malaysia Electric Vehicle Charging Network (MEVnet) by PLANMalaysia and Malaysian Green Technology and Climate Change Corporation (MGTC), 2,606 public charging bays are available across the country as of June, 2024.

To date, over 6,400 EVs from across the BMW and MINI portfolio have been introduced to Malaysian roads.

The group has also made available over 2,020 charging facilities through strategic partnerships with various EV charging providers in Malaysia.

“Over 100 BMW i and MINI charging facilities are also available at most authorised dealerships, as well as partnering venues across the country, with more to come as part of the strategic infrastructure expansion plan set for the year ahead,” it added.

Source: Bernama

EV growth boosts Malaysia’s innovation transition in mobility setor – BMW Malaysia

Malaysia is stepping up efforts to expand its halal industrial parks, with the aim of boosting local production capabilities and attracting foreign investment, particularly from multinational companies.

Halal Development Corporation Bhd (HDC) chairman Khairul Azwan Harun said this initiative is part of the country’s broader strategy to cement its position as a global leader in the halal industry, leveraging its established infrastructure and strategic location.

He explained that government bodies such as the Ministry of Investment, Trade and Industry (Miti) and the Malaysian Investment Development Authority (Mida), along with industry players, are focusing on strengthening Malaysia’s supply chain, particularly in sectors related to food, beverages, and consumer products. A key element of this strategy is ensuring the availability of local raw materials, which plays a critical role in attracting foreign companies.

“If foreign companies need to import significant amounts of raw materials, it creates double costs, which we are aiming to minimise.

“Our goal is to ensure that companies can rely on locally sourced materials, reducing production costs and enhancing Malaysia’s competitiveness,” Khairul Azwan said during a media session with HDC at the Malaysia International Trade and Exhibition Centre today.

He also highlighted that HDC, alongside the government, is developing new incentives for both foreign and domestic investors. These incentives include tax benefits, allowances, and infrastructure improvements, all designed to make Malaysia a more attractive destination for foreign direct investment, especially within the halal sector.

“We are committed to providing the necessary incentives to strengthen Malaysia’s position as a global hub for halal products.

“This includes expanding our halal industrial parks to accommodate more investors and ensuring that the supply chain supports their growth,” said Khairul Azwan.

He pointed out that palm oil-based products are a key area of focus within the Halal Industrial Parks, given their significance to Malaysia’s industrial landscape.

“These products serve as key components in food production and other consumer goods. Palm oil and its derivatives play a crucial role in our halal production. By enhancing the infrastructure around this resource, we can offer more value to foreign investors,” he added.

As Malaysia seeks to attract more foreign companies, particularly from China, Khairul emphasised the importance of improving the local supply chain.

“Ensuring the availability of raw materials will allow these companies to set up operations in Malaysia without incurring extra costs from importing goods,” Khairul Azwan remarked.

In addition, he said that the government is exploring potential improvements to the Halal Industrial Parks that includes increasing capacity for production and export, further positioning Malaysia as a leader in global halal exports.

“We are also working on streamlining processes and creating more efficient halal parks, with a strong focus on export potential. This is part of a broader strategy to meet growing global demand for halal products and services,” he said.

Source: The Sun

Malaysia steps up efforts to expand halal industrial parks

About 87% of Proton Holdings Bhd’s local suppliers have expressed their intention to collaborate with Chinese suppliers in the electric vehicle (EV) component supply chain, according to the national carmaker.

Among the top areas they are keen to work with the Chinese suppliers in are: distributorship, technology transfer, skill development and investments in joint business ventures, Proton said in a statement Wednesday.

This was gleaned from the local suppliers who participated in business matchmaking sessions held in early July at the Geely Research Centre at Hangzhou Bay in China during the ‘Market Access, Technology Transfer, and Vendor Enhancement Program’ to facilitate interactions between Proton suppliers and Geely EV suppliers, said Proton.

The programme was organised by the Ministry of Entrepreneur Development and Cooperatives (MECD) and led by the Malaysia Automotive Robotics and IoT Institute (MARii) and Malaysian Industrial Development Finance Bhd. Its goal is to accelerate the development of next-generation vehicles and battery EVs through strategic partnerships and technological exchanges.

The government is committed to advancing EV and green technology, said MECD. “Increased collaboration and partnerships aim to build essential infrastructure and support a sustainable EV ecosystem through technology transfer. By developing the local supply chain, Malaysia hopes to cut import reliance, create jobs and stimulate economic growth,” said MECD.

A month before that, during a separate visit to China, Proton provided a preview of its upcoming models and design concepts to gain deeper insights into the design team’s efforts in catering to both local and global market demands.

The exclusive closed-door event was attended by representatives from the Proton Vendors Association and Proton Edar Dealers Association.

“Proton’s recent trips have demonstrated a strong commitment to product innovation and a strategic approach for introducing new models both locally and globally. This underscores the need for increased collaboration and technology exchanges to ensure the long-term resilience of the automotive sector in Malaysia and to accelerate progress towards these ambitious goals,” said Proton’s chief executive officer Dr Li Chunrong.

Source: The Edge Malaysia

Proton: 87% of local suppliers keen to collaborate with Chinese counterparts in EV component supply chain

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz said today that Malaysia expects no major change in the chip industry post-United States presidential election on Nov 5, 2024.

“Even during the change from (Donald) Trump to (Joe) Biden, we didn’t see major changes in this sector for Malaysia, for Malaysian companies, and also for the international companies based in Malaysia.”

“I don’t foresee that (will) change if there is a policy change in the new US administration.”

Tengku Zafrul said responding to Bloomberg TV if Malaysia expects the semiconductor industry to be impacted by the US presidential election.

The race to secure the top post is between former President Donald Trump, 78, a Republican nominee and Vice President Kamala Harris, a Democratic nominee.

Trump was elected as the 45th President on Nov 8, 2016, after the billionaire defeated Democrat Hillary Clinton.

Biden endorsed Harris, 59, for the post after withdrawing from the race on July 21.

On the US decision to step up curbs on Chinese chip makers, the Minister said Malaysia has not been affected thus far and Putrajaya will continue to engage with both China and Washington.

“Malaysia is a very open economy. We are parties to many multilateral and bilateral FTAs (free trade agreements) with nations around the world. So the key is to continue to engage (with them). To date, we have not seen any tariff imposed on companies based in Malaysia, in the chip or the semiconductor sector.”

Tengku Zafrul reiterated that Malaysia has hugely benefitted from the technology war and has attracted substantial investments as companies realign and redesign their supply chain.

“Malaysia has been a net beneficiary and has been in this industry for more than 50 years. We have built a strong ecosystem around the semiconductor industry, which has been a major part of our exports.

“Malaysian companies and international companies in Malaysia are seeing better results as a result of the realigning,” he said.

However, a major global challenge facing the fast-growing semiconductor industry, including Malaysia, is the talent pool.

“We have been working closely with the industry. We have work-based learning programmes within industries in which the industry and the academia work closely to upgrade skill sets and to re-skill and get permanent jobs with the companies. What is important is that we are reskilling people according to the needs of the industry.”

In efforts to continuously attract investments, Tengku Zafrul said Malaysia is trying to attract companies to invest in five key sectors, namely, the digital economy; chemical and petrochemical; healthcare, especially medical devices; pharmaceutical and aerospace industry.

Tengku Zafrul is currently in Hong Kong for Bursa Malaysia’s Invest Malaysia-HK event, the Belt & Road Summit and the SCMP HK-ASEAN Summit.

Source: Bernama

No major change expected in chip industry post-US elections – Tengku Zafrul

Several companies from China are in negotiations with the authorities on investments in Perlis, especially in the Chuping area near Padang Besar.

The Malaysian Investment Development Board’s (MIDA) Kedah and Perlis director Mohd Rushdan Mohd Ghazali said the expected new investments involved the electric vehicle (EV) industry.

“(The expectation that the new investment will go to Perlis) may take time, we cannot estimate when Perlis will receive this investment because it is still in negotiations,“ he told reporters after a MIDA dialogue session with the Perlis Tiong Hwa Chamber of Commerce and Industry here.

Mohd Rushdan said the Chuping Valley Industrial Area (CVIA) focuses on four clusters, namely green industry, halal industry including pharmaceuticals, electric vehicles (EV) and renewable energy (RE).

He said many companies, especially from China, are looking at Kulim and Sungai Petani in Kedah to invest in the semiconductor industry. “The (semiconductor) hub is of course in Penang and Kedah (Kulim), (but) we also want to see investments in semiconductor spill over to the northern part of Kedah and also Perlis. Many companies from China are now looking at Kulim especially, and Sungai Petani. So we want to see that investment continue to rise,“ he added.

Source: Bernama

China EV companies in negotiations to invest in Perlis

PGF Capital Bhd subsidiary, NetZero Technology Sdn Bhd, has inked a sales and purchase agreement to acquire a land worth RM40 million in Kedah to expand its insulation manufacturing plant.

The freehold land acquired from Senam Jaya Sdn Bhd measuring about 23.9 acres in Kulim in a development to be known as Kulim East Industrial Park.

In a statement today, PGF Capital said the land will be developed in phases.

Under the Phase 1, a new manufacturing plant will be built to increase the total annual insulation production capacity by 160 per cent or 40,000 metric tonne (mt) from the existing 25,000 mt to 65,000 mt.

Construction of the new plant is slated to commence early next year, with commercial operations expected to begin by first half of 2026.

Meanwhile, Phase 2 will add another 20,000 mt of capacity, bringing the total to 85,000 mt, with completion anticipated by first half of 2028.

The land is strategically located about 30 minutes from PGF Capital’s existing Perai manufacturing facility and 45 minutes from Penang Port, offering logistical advantages for the Group.

The acquisition, to be financed through a combination of internal funds and bank borrowings, is projected to complete within four calendar months from the date of the agreement.

Executive director and group chief executive officer Fong Wern Shen said the land is sufficient to cater to the expansion needs for the next five years.

“We are building additional annual capacity of 40,000 mt to meet the growing demand driven by the global trend towards sustainability and energy efficiency. “The increased focus on net zero targets presents significant opportunities for PGF Capital, as insulation plays a crucial role in reducing energy consumption and carbon emissions,” he said.

Fong added that the planned expansion will also position the company well to capture opportunities in other regions as demand for energy-efficient building solutions increases.

“The group is exploring the possibility to jointly establish a local manufacturing facility with Centria International to produce insulated panels with both glass wool and stone wool cores,” he said.

Source: NST

PGF to buy land in Kedah for RM40m to expand insulation plant