Fiamma Holdings Bhd has partnered with Zhuhai Samyou Environmental Technology Co Ltd (Samyou) to establish an air conditioning (AC) production facility in Malaysia, marking Samyou’s first plant outside China.   

Samyou’s collaboration with Fiamma, a member of Chin Hin Group Bhd, reflects the growing confidence of Chinese companies in Malaysia’s business-friendly environment and pragmatic economic policies.

Fiamma chief executive officer Jimmy Tan said the collaboration aligns with its forward-looking strategy.

“We are expanding our extensive portfolio to include Samyou’s ‘Vino’ brand, which offers smart, eco-friendly, and energy-efficient AC solutions to meet the strong domestic demand.

“In 2023, the Malaysian AC market was valued at US$758.25 million (RM3.3 billion) and is projected to grow by 6.73 per cent annually until 2029,” he said in a statement.   

Tan said Fiamma has over four decades of experience in consumer electronics and a distribution network of more than 2,000 touchpoints.

As such, the company is well-positioned to leverage this collaboration to win market share and drive sustainable growth.  

Samyou founder and chairman Xiao Youyuan said leveraging Malaysia’s strategic location, skilled workforce, and supportive government policies, the company is committed to developing current and next generation AC products in Malaysia.

“Our partnership with Fiamma, with its strong local presence and extensive experience, is crucial to Samyou’s global success. 

“We are dedicating our resources to launch our AC facility by mid-2025, positioning us to reach our international sales target of US$100 million (RM434.2 million) within the next three years,” he noted.

Previously, with strategic investment from Xiaomi, Samyou has distinguished itself as one of the key players in China’s heating, ventilation, and air conditioning (HVAC) industry.

Founded in 2014 and based in Guangdong, Samyou is a technology-driven manufacturer and supplier specialising in HVAC systems.

With strong research and development (R&D) teams and over 110 patents, Samyou is at the forefront of innovation in the industry.

The company’s products are sold in more than 20 countries and regions, underscoring its strong global footprint and success in international markets.

Source: NST

Zhuhai Samyou to open first overseas plant in Malaysia with local firm Fiamma

United States-based multinational engineering, design and manufacturing services company Benchmark Electronics today opened its fourth facility in Penang with an investment US$20 million (RM86.6 million).

Benchmark Group vice-president Datuk Dr Bala Murugan said the facility, located in Batu Kawan Industrial Park, covers more than 8,000 square metres with space to expand at the site. With the new building, Benchmark Electronics will maintain more than 40,000 square metres of production space in Penang.

He noted that with the construction of the Penang facility, Benchmark Electronics, which now employs about 1,500 people in the state, will hire up to 200 people over the next few years.

“This will be Benchmark’s fourth facility in the region and will become a critical addition to existing facilities, allowing for vertical integration of key capabilities and will focus primarily on serving customers in the semiconductor capital equipment and commercial aerospace sectors.

“This marks a significant milestone, highlighting our advanced capabilities and our commitment to generating more business and employment opportunities in the area,” he said during the opening ceremony.

Bala said Benchmark Electronics is expanding its Penang facility to increase capacity for new and existing customers, supporting the anticipated growth of the semiconductor industry in 2025 while enhancing its vertical integration capabilities.

He pointed out that the expansion will enable Benchmark Electronics to improve operational efficiencies, uphold quality standards and accelerate time to market for customer products.

“Benchmark will offer advanced capabilities such as e-beam welding, large form factor 5-axis machining, type-2 cleaning and is establishing one of the largest welding and frame manufacturing centres in the region,” he added.

The new facility complements the company’s three other facilities in Bayan Lepas. 

Source: Bernama

US’s Benchmark Electronics expands in Penang, opens its fourth facility

Malaysia’s semiconductor industry, a crucial component of the global supply network, now stands at a pivotal moment with an opportunity to redefine its trajectory and strengthen its position in the supply chain.

The proliferation of generative artificial intelligence (AI), the surge in demand for the Internet of Things (IoT) and the growing prevalence of electric vehicles (EVs) are driving a sharp increase in the need for more advanced chips. With the country’s strong foothold in the semiconductor industry since the 1970s, industry players stress the urgency of taking action now to capture future market share.

The competitive landscape has evolved such that the semiconductor industry, traditionally dominated by corporate giants, has now ignited an intense race among the world’s economic superpowers. As Deputy Minister of Investment, Trade and Industry Liew Chin Tong stated in May, capitalising on this “once-in-a-generation” window of opportunity would determine the country’s new era of economic growth.

A significant portion of the anticipated demand comes from the AI chip market which is projected to grow by about 40% and reach annual revenues of US$1.11 trillion (RM4.79 trillion) by 2032. This surge in demand has revitalised the semiconductor market’s exponential growth following a challenging 2023, driven by the AI chip market’s contribution of nearly US$52 billion in revenue that year, accounting for about 10% of the global industry’s total revenue.

“The solid demand for AI chips is going to be a huge growth driver for the semiconductor market over the next decade and chip makers have not been able to keep up with the booming demand. The shortage has now hit equipment manufacturing, making it difficult for companies to obtain key manufacturing tools and hit production goals due to growing demand,” says the Ministry of Investment, Trade and Industry (Miti) in a statement to The Edge.

The electrical and electronics (E&E) sector accounted for some 5.8% of the country’s gross domestic product (GDP) last year. On the global stage, Malaysia is recognised as the sixth largest exporter of semiconductors, commanding 13% of the global market for semiconductor packaging, assembly and testing while driving 40% of the nation’s export output.

As competition intensifies, the demand for high-tech equipment is drawing more global players to Southeast Asia to establish operations. Neighbouring countries such as Singapore, Vietnam and Indonesia have been aggressively positioning themselves as new semiconductor hubs in the region by offering attractive incentives to investors.

The key question now is: how can Malaysia solidify its role in this evolving supply chain? Despite experiencing political changes with four prime ministers over the past five years, the country’s stable transition has had little to no impact on the semiconductor industry — a promising indicator of resilience and continuity.

While global semiconductor giants are still redesigning and securing their supply chains, Malaysia must exercise its “strategic semiconductor diplomacy” to seize this opportunity to further develop and expand its semiconductor industry, says Miti.

There are bright prospects for home-grown firms to move up the value chain. This will feed into the New Industrial Master Plan 2030 (NIMP 2030) mission for the country to reindustrialise successfully and increase the industrial sector’s contribution to GDP by 61% to RM588 billion by 2030.

“Many home-grown Malaysian companies are already in the global semiconductor ecosystem and well-placed to move up the global value chain, including Inari Amertron Bhd (KL:INARI), Vitrox Corp Bhd (KL:VITROX), Oppstar Bhd (KL:OPPSTAR), Skyechip and Pentamaster Corp Bhd (KL:PENTA),” says Miti.

The launch of the National Semiconductor Strategy (NSS) by Prime Minister Datuk Seri Anwar Ibrahim during the Semicon Southeast Asia 2024 conference has also been lauded as a move in the right direction by industry players. The three-phase plan, backed by US$5.3 billion (RM22.86 billion) in fiscal support and targeted incentives, is designed to transform the country into a global powerhouse in the semiconductor industry over the next decade.

“Malaysia has the key success factors — an end-to-end supply chain, a skilled multilingual workforce and world-class infrastructure, including robust industrial parks — and the political will to make the NSS work. Miti is determined to capitalise on this two- or three-year window of opportunity, so time is really of the essence,” says Miti.

“We must make bold moves for Malaysia to capture the higher end of the global semiconductor value chain. Our E&E and semiconductor sectors contributed 40% or RM575 billion to our exports in 2023 — and that’s just by having our companies ‘play in the shallow end’ of the global revenue pool.”

Another strength is Malaysia’s neutral and open economy policy, which is in favour of the “China Plus One” strategy. This strategy, also known as Plus One or C+1, is a supply chain strategy that encourages companies to minimise their supply chain dependency on China by diversifying the countries they source parts from.

“We have a business-friendly government, which makes investing here good. The government has also announced a neutral, non-aligned stance and this is something we need to live up to,” says industry veteran and Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai, who will be going into the nitty-gritty of the NSS at The Edge-HSBC New Era for the E&E Industry: Riding the Next Wave Forum 2024 that is happening at the Eastern & Oriental Hotel, Penang, on Sept 9.

BlueChip VC Sdn Bhd co-founder Datuk Seri Lai Pin Yong concurs, saying that Malaysia is well positioned to take advantage of the opportunities presented under the current industry supply chain decoupling and there is an opportunity to invite the best semiconductor players to the country to make use of its neutral and open economy.

However, Lai — who will be speaking on Malaysia’s sweet spot in this current landscape at the forum — emphasised that the key is not to bring in start-ups or companies operating at the low levels but rather more mature investors with intellectual property (IP) and technology, specifically those who desire an additional base of operation.

“This presents an opportunity for foreign investors to partner with our leading local players. Our local players, including the government, need to have a paradigm shift in order to come up with a strategy to respond [to these opportunities],” he says.

There are still an array of challenges to navigate in both the long and short term. The industry is still vulnerable to supply chain disruptions caused by geopolitical tensions — particularly between major economies like the US and China — natural disasters and pandemics, making stable access to raw materials and components crucial.

The shortage of skilled workers in semi­conductor manufacturing, design and engineering further exacerbates the problem, as global demand for talent outpaces supply, hindering production and innovation.

“Rising costs of raw materials, energy and logistics also pressure profit margins, requiring efficient management to sustain operations,” shares Jaffri Ibrahim, CEO of Collaborative Research in Engineering, Science and Technology (CREST), who will be participating in the panel in discussion on decoding the industry’s sustainability and talent conundrum.

“The industry must continually invest in research and development (R&D) to stay ahead of rapid technological advancements, which, though essential, is financially risky. Managing production levels and inventory amidst market volatility, especially in response to fluctuating demand from key industries like consumer electronics and automotive, also remains a challenge.”

In the long term, Jaffri believes that there are also growing pressures to adopt sustainable manufacturing practices, which must be balanced with cost efficiency and technological progress.

“Continuous innovation can lead to fatigue as the push for more efficient chips strains resources. Protecting IP becomes increasingly difficult in a globalised market, making strong IP protections vital for safeguarding innovations,” he says.

High-technology demand is driving growth

Globally, several key trends, notably the adoption of AI and machine learning, are shaping the industry’s demands and needs for more powerful and specialised semiconductors, says Jaffri. AI applications, from autonomous vehicles to data centres, require advanced chips that can process vast amounts of data at high speeds, leading to a surge in demand for graphic processing units, tensor processing units and other AI-specific processors.

The ongoing digital transformation across industries is also boosting demand for semiconductors. Jaffri says, as companies increasingly adopt cloud computing, IoT and 5G technology, there is a rising need for semiconductors that support these innovations. “The proliferation of connected devices and the growth of smart cities are further intensifying the demand for low-power, high-performance chips.”

Lastly, the global shift towards EVs and renewable energy is significantly impacting semiconductor demand. EVs require a range of semiconductors for battery management, power electronics and autonomous driving features, he says.

“The push for renewable energy solutions like solar and wind power is increasing the need for semiconductors that manage energy conversion and storage efficiently.”

Pushing boundaries

The influx of investments from behemoths such as Intel, Infineon and AT&S shows that Malaysia is ripe to receive investments. The local ecosystem, which has been 50 years in the making, has proven to support what these companies want to do. On top of that, the local talent has performed well and contributed to this global supply chain.

This is where the NSS comes in. In the first phase, the focus will be on domestic direct investment in integrated circuit (IC) design, advanced packaging and manufacturing equipment, while foreign direct investment (FDI) will be focused on wafer fabrication and manufacturing equipment.

At the launch of the NSS on May 28, Anwar said that in the first phase, the industry will leverage existing capacity and capabilities to support the modernisation of outsourced semiconductor assembly and test (OSAT) by moving towards advanced packaging, growing existing fabrications and pursuing FDI to expand capacity in trailing edge chips, particularly power chips, as well as developing local chip design champions.

The second phase will be to establish at least 10 Malaysian companies in design and advanced packaging with revenues of RM1 billion to RM4.7 billion (US$210 million and US$1 billion). There is also a hope to nurture at least 100 semiconductor-related companies with revenues close to RM1 billion, creating higher wages for local workers.

While the country has been doing well in the area of advanced equipment, automation and precision machinery, MSIA’s Wong says we have yet to be able to grow a global Malaysian champion. Although we do have some publicly listed companies in this industry with offices overseas, it is not big enough to compete with big corporations around the world.

“The government needs to [move Malaysian companies] up the value chain to make them have a global presence. When it comes to building up IC design and packaging companies, five out of 25 are local and the rest are foreign. Hopefully we can build more IC design companies.”

The export value to be reaped from going to the higher end of the value chain is significant. Miti says that even upping the game by 10% could add another RM58 billion to the country’s export revenue. One area of focus will be on enhancing Malaysia’s capabilities in IC design and embedded software, focusing on local companies that work on lower complexity designs.

“These represent the low-hanging fruit that we can reap based on our industry’s current strengths and foundation,” says Miti, adding that there is also a need to attract investments in mature node technology (greater than 28nm) to expand Malaysia’s fabrication capabilities.

Focusing on niche markets, such as testing equipment or precision machining for the OSAT industry, including development of specialised machinery and equipment, is essential for semiconductor manufacturing processes as well.

“To move to higher-end value chain opportunities, we must attract global semiconductor companies to set up fabrication facilities in Malaysia and encourage local companies to invest in and develop IC design capabilities. We need to also support the growth of semiconductor manufacturing equipment providers in niche markets,” says Miti.

Scaling a mountain of challenges

Wong notes that the government may lack sufficient funds to fully support the growth of a Malaysian company on the global stage, which is why government-linked investment companies (GLICs) are being called upon to assist in this mission. Recently, the government has also made efforts to engage directly with the semiconductor industry to better understand its challenges and pain points, as well as to explore how GLICs can provide support.

“To get companies into high-tech areas like IC design and advanced packaging, capital and technology are needed. There is a need to overcome tech acquisition to go up the value chain for IC design and funding is needed to lower the cost and risk of entry because the technology alone can rake up to hundreds of million ringgit,” says Wong.

Another aspect to consider is exploring new areas of investment. Wong suggests that, in the effort to develop a large local company into a Malaysian champion, local companies should also support it by choosing to buy locally. This support would not only help the local company gain visibility and credibility with global firms, but it would also make it easier for the company to market its equipment internationally.

“For example, if there is a global company here that has a presence in the Philippines and Vietnam, get them to use the same equipment in all these facilities. That is one way to expand our reach.”

Emerging semiconductor companies also face a range of challenges, including capital intensity, talent development and supply chain constraints. Karel Doshi, head of commercial banking at HSBC Malaysia, says building and upgrading manufacturing facilities requires substantial investment, leading companies to seek long-term loans or project financing.

“Financial aid typically sought by these companies includes working capital financing, R&D grants and equipment leasing finance to offset these challenges,” she says. Doshi will be delivering the closing remarks at the forum.

Collaborative efforts between the government and private sector are crucial to ensuring Malaysia maintains its edge in the global semiconductor race. With the right investments and strategic partnerships, the country can continue to be at the forefront of global semiconductor innovation, powering the AI revolution that will define the future.

“To support growth and to allow semiconductor companies in Malaysia to scale, they can access various types of financing, including equity, debt, government grants and initiatives. Venture capital firms and private equity funds are increasingly looking to invest in tech-forward industries like semiconductors. Start-ups and scale-ups can tap into these funds for growth capital,” she says.

Banks and financial institutions offer loans, lines of credit and other debt instruments tailored to the specific needs of capital-intensive industries like semiconductors. On top of that, with sustainability taking centre stage, green bonds and loans are becoming popular, allowing companies to fund eco-friendly initiatives within their supply chains.

“Companies are seeking financing to invest in cleaner production technologies, energy-efficient equipment, water efficiency solutions and renewable energy solutions to reduce their carbon footprint.

“In addition to green financing, HSBC offers end-to-end sustainability insights, guiding companies through carbon reduction strategies and supporting the development of circular supply chains within the industry,” says Doshi.

HSBC provides guidance for companies looking to transition to sustainable practices by offering insights on sustainability opportunities that may exist in the company’s business model, helping companies understand regulatory frameworks, develop sustainability strategies and identify suitable financing options, she adds.

“As companies look to upgrade their facilities, HSBC can provide tailored capital expenditure loans or project financing to ensure that companies have the resources to scale up efficiently.”

Building the future

Addressing the issue of talent, MSIA’s Wong notes that while the situation may not be critical at the moment, the industry is set to face a talent crunch in the coming years. Over the next seven years, the industry anticipates the emergence of new technologies and a push for higher productivity, which could help mitigate this impending shortage.

However, there is already a significant demand for engineers, and with declining enrolment in science, technology, engineering and mathematics (STEM) education in Malaysia, the availability of skilled talent may not meet future needs.

“The government, together with the industry, needs parents and children to venture into STEM education as there are a lot of career options on the horizon. We also need more STEM scholarships and science discovery centres to allow children to explore the world of science,” says Wong.

Miti concurs, adding that over the past several months, it has been working closely with the Ministry of Human Resources and the Ministry of Higher Education, and plans to engage with the Ministry of Education in the near future.

“To the parents out there, the message is simple: the prospects are bright for a secure, higher paying job in this industry for STEM or Technical and Vocational Education and Training (TVET) graduates,” says Miti.

“TVET must also be destigmatised — it is equally important and NOT secondary to the academic track. Without this robust talent pipeline, our dream to take advantage of global semiconductor growth will remain a pipe dream.”

CREST’s Jaffri notes that the talent crunch is being addressed through initiatives like the Returning Expert Programme, which aims to incentivise Malaysians working abroad to return home. Additionally, Malaysia offers the Residence Pass-Talent to attract skilled foreign professionals to work in the country. “The NSS aims to leverage and enhance these programmes, making them even more appealing to highly skilled professionals in the semiconductor industry to work in Malaysia.”

HSBC’s Doshi says companies have also sought financing for talent acquisition, training and development programmes as the industry faces a shortage of skilled talent. “Talent development support can also be provided and HSBC can collaborate with industry players to offer Talent Development Funds or Training Grants, enabling the upskilling of workers in advanced semiconductor manufacturing.

“Through these different avenues, HSBC can be a key partner in solidifying Malaysia’s position as a global leader in the semiconductor industry, ensuring long-term competitiveness while meeting the growing demands of the digital and green economies.”

The Edge-HSBC New Era for E&E Industry Forum 2024 will convene experts from various sectors to discuss emerging trends in Malaysia’s semiconductor industry and explore how the country can leverage its current advantageous position.

Organised in collaboration with HSBC Bank Malaysia and supported by IJM Corp Bhd (KL:IJM), the forum will feature a keynote speech by the Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz. He is expected to provide insights on how Malaysian companies can navigate and capitalise on this growth, while also outlining the government’s role in advancing the semiconductor sector.

Also speaking at the forum are Penang state executive councillor and chairman of the infrastructure, transport and digital committee Zairil Khir Johari and HSBC Malaysia CEO Datuk Omar Siddiq.

The panel discussion on the industry’s sustainability and talent challenges will feature HSBC Asia-Pacific’s regional head of commercial banking sustainability Sunil Veetil; IJM group CEO and managing director Datuk Lee Chun Fai; InvestPenang CEO Datuk Loo Lee Lian; Malaysia Digital Economy Corporation vice-president of digital industry acceleration Wan Murdani Wan Mohamad; and CREST’s Jaffri.

A boon for the construction industry

The construction industry is expected to experience a steady rise in semiconductor facility contracts as Malaysia strengthens its position within the semiconductor supply chain. The “China Plus One” strategy, which encourages companies to diversify their manufacturing bases beyond China, has made Malaysia an attractive option due to its strategic location and established presence in semiconductor manufacturing.

Additionally, rapid advancements in artificial intelligence (AI), the Internet of Things, 5G and electric vehicles are further fuelling the demand for more sophisticated semiconductor manufacturing facilities.

Datuk Lee Chun Fai, group CEO and managing director of IJM Corp Bhd (KL:IJM), says companies like IJM, with their expertise in building advanced technology facilities and data centres, are well-positioned to meet this demand.

Moreover, the government’s focus on enhancing the electrical and electronics sector through initiatives like the National Semiconductor Strategy is expected to generate more opportunities in this sector.

“Our vertically integrated approach, from construction to material manufacturing, enables us to deliver high-quality facilities on accelerated timelines — an essential capability in an industry where speed and precision are critical,” he says.

Construction companies also play a role in ensuring that semiconductor facility infrastructure meets stringent sustainability standards. By adopting green building practices, such as energy-efficient designs, sustainable materials and advanced water management systems, these companies help reduce the environmental impact of their projects.

“Our efforts are closely aligned with the ambitions of our semiconductor clients, who are increasingly prioritising high ESG (environmental, social and governance) standards in building designs. For instance, our SMART IBS (Industrialised Building System) and spun piles have received green certifications, such as the SIRIM Eco Label and MyHIJAU, which not only demonstrate our commitment to sustainability but also support the joint agenda of advancing environment-friendly practices in the semiconductor industry,” says Lee.

Building semiconductor facilities presents several unique challenges due to the highly controlled environments required for chip manufacturing. These facilities must maintain ultra-clean conditions, necessitating sophisticated heating, ventilation and air conditioning systems, stringent contamination control and exacting standards for vibration management.

Lee adds that the rapid pace of technological evolution in the semiconductor ecosystem also means that facilities must be designed with future upgrades in mind.

“The need for highly specialised consultants, labour and materials further complicates the construction process, making project management and timely delivery critical.”

“The use of BIM (building information modelling) allows us to design with flexibility in mind, ensuring that the facilities we build today can accommodate the needs of tomorrow. This adaptability is essential in a sector where technology is constantly evolving.”

Source: The Edge Malaysia

Securing Malaysia’s position in the global semiconductor supply chain

Elna PCB, a Taiwan-based printed circuit board (PCB) manufacturer, is expanding its manufacturing facilities with the opening of a new plant in the Perai Industrial Zone near here on Tuesday.

With total investment of over RM1 billion, the expansion includes the new plant over 10,000 sq m, with a five-storey PCB manufacturing facility adjacent to the existing plant.

Elna PCB (Malaysia) Sdn Bhd president Ian Yang said the first phase of production will yield 300,000 sq ft of PCBs, catering to the automotive, server, network equipment, personal computing and consumer electronics sectors. 

“As global demand for high-quality and advanced PCBs continue to grow, we are poised to expand our production capacity to one million sq ft in the near future. 

“The existing facility will maintain its production for automotive customers, while this new plant enhances our capabilities, enabling us to meet our customers’ needs with greater geographical manufacturing diversity and supply chain flexibility,” he said during the plant’s opening ceremony on Tuesday.

The plant was officiated by Penang Chief Minister Chow Kon Yeow. Also present were PSA Group chairman Anthony Chiao, PSA PCB Business Group president Lance Tao, Penang State Legislative Assembly Speaker Datuk Seri Law Choo Kiang, and Malaysian Investment Development Authority (Mida) Penang director Muhammad Ghaddaffi Sardar Mohamed.

Elna is a subsidiary of Global Brand Manufacture under PSA Group.

Yang said that by establishing the company’s presence in Penang, Elna is helping to build a robust and comprehensive supply chain that will attract more global players not only to the state but also to Malaysia.

Meanwhile, Tao said the inauguration of the new plant is a significant milestone for the PCB sector, and PSA is committed to providing one-stop industry-leading solutions for customers worldwide, promising to deliver more diverse and high-quality products and services.

He noted that as the world’s sixth largest semiconductor exporter, Malaysia accounts for 13% of the global assembly, testing and packaging market. 

“Penang is a major hub for Malaysia’s semiconductor industry, boasting a well-established industrial ecosystem, a rich talent pool and a favourable business environment. Thus, Elna’s decision to build a new PCB plant in Penang is a strategic move that is expected to enhance the region’s electronics manufacturing supply chain,” he added.

Chow said Tuesday’s ceremony marks the realisation of Elna’s investment in Penang since the groundbreaking in February last year, adding that this facility is expected to create 1,000 more job opportunities.

The chief minister said that following its 30-year presence in Penang, Elna’s expansion has greatly attested to Penang as a sustainable location for investment.

“This expansion underlines the robust industrial ecosystem in Penang, offering opportunities for multinational companies to continue expanding here,” he added.

Source: Bernama

Taiwan-based Elna PCB opens RM1b manufacturing plant in Penang, expects to create 1,000 more jobs

Malaysia’s manufacturing sector is expected to continue expanding until the end of 2024, following a solid growth in July which marks its highest since February 2023, economists said.

This will be driven by a technology upcycle, recovery in export-oriented sector and rising demand for artificial intelligence.

Semiconductor devices, integrated circuits, transistors and valves’ exports collectively made up 67 per cent of electrical and electronics (E&E) exports in 2023, amounting to RM387.45 billion (US$84.95 billion), according to Malaysia External Trade Development Corporation.

The data released by the Department of Statistics (DOSM) on Tuesday showed that the manufacturing sector’s sales value recorded the highest growth since February 2023, amounting to RM157.1 billion in July, up 9.1 per cent from a year ago.

DOSM said the positive momentum was attributed to contributions from three subsectors. They are E&E products (33.5 per cent), petroleum, chemical, rubber and plastic (26.3 per cent), as well as food beverages and tobacco (18 per cent).

The food, beverages and tobacco subsector grew 16 per cent, followed by E&E products (8.2 per cent) and petroleum chemical, rubber and plastic products (6.2 per cent).

The strong growth in manufacturing sector output by 7.7 per cent expanded the industrial production index (IPI) by 5.3 per cent in July.

Following this, both export-oriented and domestic-oriented industries performed well in July, registering growth rates of 7.8 per cent and 7.5 per cent respectively.

Bank Muamalat chief economist Dr Mohd Afzanizam Abdul Rashid said the IPI should stage a better trajectory in the 2H2024, support by continued demand for semiconductor sector.

Export-oriented and domestic-oriented industries, he added, had been postively contributing to the IPI growth.

Continued demand for semiconductor sector will expand manufacturing sector further.

“The World Semiconductor Trade Statistics has forecasted global semiconductor sales to grow by 16 per cent in 2024 and 12.5 per cent in 2025 led by higher growth in integrated circuits (ICs). So the technology upcycle would be the main upside risks to Malaysia’s IPI,” Mohd Afzanizam told Business Times.

IDEAS Malaysia economist and assistant research manager Doris Liew said semiconductor is experiencing a recovery wave as the global technology upcycle reaches Malaysia’s downstream stages of packaging, assembly and testing.

She noted that that increasing adoption of artificial intelligence (AI) and electric vehicles (EV) boosted the demand for E&E and semiconductor components.

Concurrently, Liew said the momentum in domestic manufacturing sector is expected to persist through the end of 2024 and will likely extend into 2025.

This will be fuelled by higher-than-pre-pandemic foreign direct investment in the sector over the past three years.

“The establishment of the Selangor IC design park, Johor-Singapore Special Economic Zone, and government policies supporting high-value, high-growth industries are further driving the growth momentum in E&E sector.

“The increasing investments in data centers will also contribute to the sector’s expansion,” she said.

On the ⁠downside risk, Mohd Afzanizam said it would stem from sharp slowdown in the US, China and other major economies.

Meanwhile, Liew noted that the ongoing geopolitical tensions in regions like the Suez Canal, which have led to supply chain disruptions and increased shipping costs is the key concern.

“Any escalation in these tensions could negatively impact the flow of goods and components, affecting production timelines and costs.

“Additionally, the weak US employment data, China’s domestic economic weakness, and the looming threat of a US recession could lead to declining consumer demand for electronics,” she said.

Source: NST

Momentum seen to continue in manufacturing sector

Malaysia will benefit from potential new investments in the halal industry from China, worth RM4 billion, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.

He said the huge investment potential was a result of his and the Malaysian delegation’s meetings with Chinese halal industry players on Tuesday, in conjunction with the Malaysia-China Halal Business Forum here.

He said the investments cover various sectors, including herbal medicine, food and beverages, vaccines, cosmetics and pharmaceuticals.

“As of this afternoon, there are 40 companies (from China) that are very serious about investing in Malaysia, and according to our estimates, it is worth RM4 billion.

“Of course their products are a priority, including food and drinks. There are also (investment requests related to) pharmaceuticals, cosmetics, vaccines and herbal medicinal materials,” he said at a press conference with the Malaysian media that followed his five-day working visit to China.

Earlier, he delivered a key speech at a forum organised by the Halal Development Corporation (HDC), which was attended by industry players from Malaysia and China.

Ahmad Zahid, who is also the rural and regional development minister, said there was also a big demand from investors in the field of herbal medicine in Malaysia, who want to collaborate with local universities and the Malaysian Agricultural Research and Development Institute (Mardi).

He said there is currently an area of ​​5,787 hectares dedicated to the halal industry in Malaysia, and the largest area is in Tanjung Mas, Sarawak, which has 9,900 acres.

Ahmad Zahid said several Chinese halal companies have expressed interest in opening their factories in Malaysia, as a result of the meetings.

For that purpose, he said the state government should simplify the procedures for investors, especially in relation to the provision of infrastructure, including water and power, in addition to incentives such as tax exemptions.

“What we need are investors, and Chinese companies want to market their halal products from Malaysia. For that, they plan to set up factories in Malaysia and obtain Jakim’s halal certificate, which will allow them to export abroad,” he said.

Ahmad Zahid said that in a meeting with the Asian Development Investment Bank from China, it was found that those who are ready to offer investment funding at the initial stage amounted to US$500 million (RM2.17 billion).

Meanwhile, Ahmad Zahid said during his special remarks at the Malaysia-China Halal Business Forum that Malaysia’s strategic location in Southeast Asia makes it an ideal hub for halal trade.

He said Malaysia is committed to becoming not only the halal hub for Asean, but also a leading global halal hub, and to further the effort, Malaysia is proposing the establishment of a Malaysia-China Halal Trade Corridor. 

“This initiative would strategically boost halal trade within the framework of the One Belt One Road initiative. 

“It would allow us to better meet the halal needs of BRICS nations, Asean and the Global South, while streamlining trade between China and Malaysia for a more efficient supply chain,” he said.

He explained that Malaysia will develop a dedicated trade highway through this corridor, featuring bi-nation halal one-stop centres. These centres would simplify import and export processes, provide clear protocols, offer specialised halal logistics, and ensure smooth access to local markets for both nations, he added.

Source: Bernama

Malaysia to get RM4b in potential halal industry investments from China — Ahmad Zahid

Developing talent and cultivating homegrown champions are the key challenges facing Malaysia’s semiconductor industry, as highlighted at The Edge–HSBC New Era For E&E Industry Forum 2024.

As the country rides the next wave of semiconductor innovation, its success will hinge on addressing the twin hurdles of funding and talent development — both critical to ensuring the industry’s long-term competitiveness.

The forum, entitled ‘Riding the Next Wave’, brought together industry leaders and policymakers to discuss the future of the electrical and electronics (E&E) sector, focusing on overcoming obstacles and seizing opportunities. HSBC was the main presenter of the forum, with IJM Corp Bhd (KL:IJM) as the supporting partner.

“As the [crude] oil drove industrialisation and economic growth in the 20th century, semiconductors have now overtaken oil in strategic importance. [Therefore] countries that control semiconductor technologies hold a significant and strategic advantage. And this influence extends beyond mere technological advancements, impacting global relation and supply chains,” said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz in his keynote address.

“We have our homegrown champions in the likes of Inari Amertron Bhd, ViTrox Corp Bhd, Pentamaster Corp Bhd and Oppstar Bhd, to name a few, that have risen to the forefront, not just as participant, but actually as leaders in the global supply chain.

“But if we want to maintain this trajectory, we must shift from being a low-cost manufacturing hub to one that focuses on advanced know-how, intellectual property and advanced IT capabilities.

“Only then can we continue to solidify our position as a key player in the semiconductor industry. We want to drive innovation and growth for the next century,” he said.

Tengku Zafrul also addressed the issue of funding for the semiconductor sector, particularly in relation to the RM25 billion allocated under the National Semiconductor Strategy (NSS). While the funds are earmarked for research and development (R&D), incentives and talent development, the minister said that 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.

“Funders have to come in at different levels, from mezzanine all the way to venture capital as well as the banks. 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.

Penang, a key hub in Malaysia’s E&E sector, has been at the forefront of this growth.

Penang executive councillor for infrastructure, transport and digital, Zairil Khir Johari, noted the state’s remarkable achievements over the last few years.

“From 2019 to 2023, Penang attracted RM170 billion in investments — more than double the total of the preceding decade. This resulted in the creation of 78,000 jobs, with more than half in the E&E sector,” said Zairil.

The Penang state government remains committed to ensuring continued growth for the E&E sector by providing the necessary infrastructure, land and utilities, he added.

Key initiatives include new transmission power lines and a strategic partnership between Penang Development Corporation and Tenaga Nasional Bhd to redevelop the Gelugor Power Station, doubling its capacity to ensure stable and adequate power supply.

Other initiatives include RM1.18 billion in water supply projects, which have seen the development of four new water treatment plants. Additionally, the state has signed a Memorandum of Understanding with Indah Water Konsortium Sdn Bhd to reclaim wastewater for industrial use. The planned expansion of Penang International Airport will also boost the manufacturing and E&E sectors.

“These efforts will collectively strengthen Penang’s position as a manufacturing and E&E powerhouse,” Zairil added, noting that the success of these initiatives hinges on the cooperation and collaboration of all stakeholders.

As Malaysia continues to ride the next wave of semiconductor innovation, its ability to overcome the dual challenges of funding and talent development, combined with state-driven infrastructure enhancements, will be key to the industry’s sustained growth and competitiveness on the global stage.

Source: The Edge Malaysia

Malaysia needs to foster new champions in the E&E sector, says Miti minister

Proton Holdings Bhd’s completely-knocked-down (CKD) exports to Egypt is estimated to contribute 16,000 units to its total export volume from the fourth quarter of this year to the end of 2026, generating a revenue of RM570 million, said the Ministry of Investment, Trade and Industry (Miti).

Miti deputy secretary general (Industry) Datuk Hanafi Sakri said an additional RM20 million will be generated from spare parts sales to support customer service.

“Aside from the monetary aspect of trade, the establishment of a CKD plant to assemble Proton vehicles in Egypt will enable the transfer and growth of competencies in areas such as technology, best practices and expertise in the car automotive sector,“ he said in his keynote address at the official ceremony of Proton’s first CKD export to Egypt at the Proton Centre of Excellence here on Monday.

Hanafi said the project can also open the door to the formation of potential partnerships between Egyptian companies and Malaysia’s world-class parts suppliers.

“This, in turn, can open the possibility of turning Egypt into a regional assembly hub for Proton, to serve the North African market.

“It can also present further opportunities for suppliers in Malaysia to grow their export sales,” he said.

Meanwhile, Proton chairman Tan Sri Syed Faisal Albar said the export markets remain a crucial pillar for Proton.

“For Proton to achieve our ambition of becoming a sizable global market player, we cannot rely solely on the domestic market. Therefore, exports are essential.

“Proton is already present in 20 countries, including markets in Asia, the Middle East, and Africa. Today’s event is particularly significant for us, as over the past six years, Proton has exported approximately 3,200 completely built-up (CBU) units to Egypt, with the Proton Saga being the most popular model,” he said at the event.

Looking ahead, he said this will contribute to the further development of the Egyptian automotive industry, create jobs, introduce new technologies, and stimulate economic activity that will hopefully benefit both nations.

“The regional assembly hub in Egypt will be Proton’s first for left-hand-drive models overseas, and we hope this platform will also enable us to expand further into neighbouring countries, using Egypt as a hub,” he added.

Also present was Egypt’s Ambassador to Malaysia, Ragai Tawfik Said Nasr.

Source: Bernama

Miti: Proton’s CKD exports to Egypt expected to contribute RM570m by 2026

Malaysia is stepping up its game in the semiconductor playing field, moving up the value chain by focusing on the front-end segment, said Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz.

He noted that Malaysia has a competitive edge in the semiconductor sector, having been a key player in the electrical and electronics industry for over five decades.

The minister highlighted that the country’s semiconductor exports currently hold a global market share of seven per cent.

“We have a slight advantage due to our track record and the ecosystem established by both Malaysian companies and multinational corporations,” said Tengku Zafrul, adding that the multinational companies have created numerous opportunities for local companies to thrive.

Speaking at Bloomberg’s virtual forum, “Spotlight on ASEAN Business: Charting New Frontiers,” today, he said Malaysia is aiming to move to the higher-value front-end of the sector.

“Companies are also moving towards that direction. They are coming to Malaysia and you can see investments in larger amounts,” the minister said.

At the same time, Tengku Zafrul said there are a lot of opportunities for ASEAN members to work together to boost the semiconductor industry, including in establishing an ecosystem within the region.

He cited companies in Singapore expanding their operations into Malaysia as an example, where the front-end of the semiconductor process is mainly done in Singapore, with mid- to back-end operations often taking place in Malaysia.

ASEAN also has other advantages that could help boost the semiconductor industry’s growth within the region, such as green energy, he said.

“This sector consumes a lot of energy, and companies want green energy. Everybody is meeting their sustainability objectives and agendas.

“Malaysia is investing in green energy to support this industry, and I’m sure other ASEAN countries are doing the same,“ he added.

Source: Bernama

Malaysia is stepping up its game in semiconductor industry – Tengku Zafrul

The domestic electrical and electronics (E&E) sector is expected to continue maintaining its uptrend momentum despite predictions made by analysts that the industry’s demand has reached its highest point.

Local E&E players said global semiconductor sales are still on an uptrend, although demand for consumer products such as smartphones and personal computers is moderating due to various factors such as inflationary concerns, recession risk and the impact of the China lockdown.

Kelington Group Bhd chief executive officer Raymond Gan said the industry is currently undergoing an ‘inventory adjustment’ after years of rapid capacity expansion in the semiconductor and electronics industry.

He said that although lead times for semiconductor chips and equipment have reduced, they are still high compared to pre-pandemic levels. This signifies that the shortage still remains.

“However, higher-end chips used in new technology applications in electronic vehicles, autonomous driving, 5G and the Internet of Things (IoT) remain strong.

“Over the long term, surely demand for semiconductors and electronics will definitely rise due to its growing importance in our digital world,” he told The New Straits Times.

Gan said the global semiconductor players would continue to expand production capacities to meet the growing demand for semiconductor chips.

“At Kelington, we see many tender invites from semiconductor companies setting up new fabrication lines or expanding their existing lines.

“From our tender book of RM1.5 billion, almost 50 per cent are from projects in China, followed by 28 per cent in Singapore. 

“With operations in Malaysia, Singapore, China and Taiwan, Kelington has benefited from the capacity expansion of the various global semiconductor and electronics companies in these countries,” Gan said.

CGS-CIMB Research, in a recent sector report, opined that shipments of E&E products would start to come down in the quarters ahead.

The research firm said global demand for semiconductors has eased as the sector’s business cycle likely peaked, indicating more normalised demand in the E&E product space.

Quoting US-based technological research and consulting firm Gartner Inc report, JF Technology Bhd managing director Datuk Foong Wei Kuong said the shipment of mobile phones and consumer electronics would fall in 2022 due to a culmination of geopolitical tensions, rising inflation and supply chain disruptions that have dampened consumer demand worldwide.

He said this would, in turn, slow down the growth of global semiconductor sales going forward.

“Against this challenging backdrop, we are confident that our proven resilient business model with recurring and compounding sales of test consumables will provide crucial support to us.

“The fact that we serve a multitude of clientele industries certainly helps diversify our risks as well,” he said.

“Regarding the global supply chain disruptions, the situation has been

manageable thus far for us. However, on a positive note, it has been improving with material lead time gradually returning to normal,” Foong said.

XTS Technologies Sdn Bhd founder and managing director Xteven Teoh Hoe Seong (subs: name spelt correctly) expects demand to start recovering in the first or second quarters of 2023 from the lingering effects of the Covid-19 pandemic on demand, China’s slowdown and the Russia-Ukraine War.

“From what we have observed and from speaking to industry players, there is an expectation that the global supply chain will recover gradually into 2023, but this will be selective within the subsectors of the manufacturing sector.

“In particular, we have been told that there is still demand for automation products while certain E&E products may see less demand,” he said.

Teoh said there are still opportunities to fulfil demands and expressed confidence that consumer sentiment will gradually return and businesses will be able to capitalise on opportunities.

“In my opinion, to mitigate or buffer a slowdown, all businesses, particularly those that are technology-intensive, should focus on research and development that can be commercialised to offer the market choice. This is true, especially for consumer electronics and other E&E products.

“Given the importance of semiconductors in our exports and the critical role it plays in the manufacturing ecosystem in the country, Malaysia will definitely be affected, but so will other countries in the semiconductor value chain,” Teoh said when asked about supply chain disruptions in the E&E space.

Kobay Technology Bhd chief executive officer and managing director Datuk Seri Koay Hean Eng said that despite the global supply chain shock and labour shortages, the company continues to receive huge orders from semiconductor, E&E, and aerospace customers.

“While we acknowledge certain global headwinds going forward, our high-precision manufacturing business enjoyed a breakthrough year on the back of higher technology usage worldwide and the reopening of economies,” he said.

Koay said that apart from the semiconductor, E&E, and aerospace customers, the company also sees orders from oil and gas (O&G), medical, and life science sectors.

Source: NST

E&E sector going strong

The equipment manufacturing industry in the country has been urged to make advanced technology equipment for other local industries aside from the semiconductor sector.

At the launch of the Advanced Technology Equipment Cluster (Atec) in George Town, Penang yesterday, Deputy Investment, Trade and Industry Minister Liew Chin Tong said the equipment sub-sector should be seen as an important driver in the creation of high-value Malaysian companies.

“The equipment sector should not stop short at just making equipment for the semiconductor sector.

“I visited Vitrox Agritech at Ara Kuda, Tasek Gelugor, yesterday and witnessed how technology for the semiconductor sector can be applied to precision agriculture.

“For Malaysia to be an advanced economy, we need to adopt, automate and innovate technologies so as to reduce dependence on unskilled foreign labour in all sectors,” said Liew.

Industries that can benefit from the equipment manufacturing sector include agriculture, furniture, construction and oil palm plantation through automation.

With support from the local equipment manufacturing industry, the semiconductor sector is already relatively automated, Liew explained.

It is now time for the Malaysian semiconductor industry to also foster horizontal linkages as it is already very well connected vertically to the global supply chain, Liew added.

“This will enable the semiconductor industry to design and invent chips that solve Malaysia’s problems in health, food security, transport or green transition, just as the equipment makers are making equipment beyond the semiconductor industry,” he said.

“Only with innovations that solve our national and regional problems can we create products that would improve the lives of millions of ordinary people.”

Source: The Star

Equipment manufactures urged to diversify

The government is currently evaluating the use of RT-ECO technology, a cutting-edge method for treating palm oil mill effluent (POME), to enhance sustainable palm oil production in Malaysia.

Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said that this effluent treatment technology was well-suited to address global market demands for environmental preservation.

“In the palm oil industry today, environmental concerns are paramount. The global market closely examines how we manage effluent waste before deciding whether to purchase our palm oil or products from other industries with similar waste challenges.

“This strategy encourages innovation in treating effluent before it is discharged, which is crucial for the industry’s long-term sustainability and for ensuring water security. If the discharge contaminates drains that flow into rivers, it becomes a national issue,” he said during a press conference after visiting an RT-ECO technology demo unit at Seri Morib Palm Oil Mill in Banting today.

Johari said that the ministry’s role extended beyond overseeing palm oil production, including seed quality, yield, and milling technology, to ensuring that environmental concerns were effectively managed.

The Malaysian Palm Oil Board (MPOB) has been tasked with assessing the effectiveness of this technology, especially for use by smaller palm oil mills. 

“I have instructed the MPOB to thoroughly evaluate this technology, focusing on its durability and effectiveness, before considering its broader implementation across local palm oil mills,” said Johari.

Malaysia, the world’s second-largest palm oil producer after Indonesia, exported approximately 15 million metric tonnes of palm oil and related products.

RT-ECO, developed by Meru Jaya POME Solutions, uses electrochemical technology to treat POME, making the waste produced during palm oil processing safe and recyclable within the mill, thus aligning with global sustainability standards.

Also present during the visit were MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir and Meru Jaya POME Solutions Sdn Bhd chairman Tan Sri Dr SA Vigneswaran.

Source: NST

Malaysia eyes new green tech to boost sustainable palm oil production

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

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

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

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

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

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

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

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

Source: The Edge Malaysia

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

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

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

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

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

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

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

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

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

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

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

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

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

Production costs seen rising in 2H2024

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

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

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

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

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

Source: The Edge Malaysia

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

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

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

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

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

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

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

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

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

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

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

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

One solution is to convert waste into energy.

The hydrogen equation

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

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

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

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

Organically produced

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

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

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

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

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

Rehabilitating plastics

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

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

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

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

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

Industrial revolution

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

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

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

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

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

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

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

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

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

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

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

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

Source: The Star

Making wastes-to-hydrogen conversion a reality

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

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

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

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

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

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

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

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

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

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

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

Source: NST

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: NST

Boeing committed to developing Malaysia’s aerospace industry ecosystem

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: The Star

Sime Darby to ride on industrial business

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

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

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

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

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

Source: New Sarawak Tribune

China-listed company eyes Sarawak for expansion

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

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

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

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

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

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

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

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

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

Source: The Edge Malaysia

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

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

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

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

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

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

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

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

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

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

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

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

Source: Bernama

MoF urges E&E industry to develop skilled talent holistically

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: The Star

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: Bernama

Japanese companies keen on halal industry collaboration with Malaysians

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

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

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

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

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

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

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

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

Source: NST

Sabah to build industrial park in Kudat

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

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

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

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

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

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

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

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

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

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

Source: Bernama

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