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

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

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

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

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

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

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

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

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

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

Source: Bernama

Seven states surpass national manufacturing capacity utilisation rate in 2Q2024

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

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

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

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

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

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

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

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

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

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

Source: Bernama

Malaysia can champion sustainable practices via aerospace industry — Liew

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

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

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

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

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

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

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

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

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

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

Source: Bernama

Pahang poised to become Malaysia’s first comprehensive maritime hub

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Targeting two more business units

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: The Edge Malaysia

MI Technovation aims to be a diversified semiconductor solutions provider

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

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

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

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

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

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

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

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

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

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

Source: NST

Palm oil downstream industry in Sabah attracting Chinese investors

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

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

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

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

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

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

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

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

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

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

Source: Selangor Journal

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

“The semiconductor industry is powering the future.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: The Star

New blueprint to boost Penang’s E&E future

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: The Star

UEM Lestra Invests in Industrial Decarbonisation

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

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

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

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

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

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

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

Source: The Edge Malaysia

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

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

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

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

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

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

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

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

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

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

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

Source: Borneo Post

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

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

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

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

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

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

Mesra Programme here, yesterday.

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

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

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

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

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

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

Source: NST

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

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

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

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

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

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

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

Source: Bernama

Tesla expected to continue investments in Selangor – Amirudin

Tesla Inc is not setting up a manufacturing and assembly plant in Southeast Asia. Nevertheless, its presence in Malaysia will long be felt because it knocked down barriers in the automotive industry.

It is the first marque that was allowed into the country without the need for approved permits, or APs. The exemption Tesla obtained from the Ministry of Investment, Trade and Industry effectively broke bumiputra car traders’ monopoly of importing cars.

Secondly, there were long queues when Tesla opened its sales office here. Never before had there been such hype surrounding any of the domestic automotive companies.

And finally, Tesla’s move to cut prices to maintain its leading position in the electric vehicle (EV) segment has sparked a price war and made EVs more affordable.

Tesla has its own set of problems, which is why it is not investing in a regional plant. It has invested substantially in the building of a gigafactory in China. However, it is facing stiff competition from the other marques, especially BYD Auto Co Ltd, in the country.

To keep up market share, Tesla has been cutting prices and sparked a price war in China. That price war has spilled over into Malaysia. BYD is selling its cheapest models here for slightly more than RM100,000.

Given the intense EV landscape, it is easy to fathom why Tesla has decided to scrap production plans in the region. Nevertheless, even without establishing a plant, its impact will always be felt in the domestic market. Consumers now know for sure that the price war in the EV segment is here to stay — for a while, at least — until such time when the likes of Tesla and BYD can come to a resolution.

Source: The Edge Malaysia

Even without a plant, Tesla’s impact will be felt

Malaysia is calling on global investors, collaborators, experts, policymakers, industry leaders and stakeholders to work on progressive industrial policies to position the country as a green, regional manufacturing hub.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said global experts not only need to address the challenges of green industrialisation, but also unlock its vast potential for the benefit of every Malaysian and the planet.

In positioning Malaysia as a premier green investment destination by 2030, he said, the country is aiming for a 7.5-fold increase compared to previous levels.

“We will focus on both domestic direct investment and foreign direct investment.

“Sustainability goes beyond addressing climate issues and energy security, or even when we talk about just transitions today.

“At the heart of it is the need to develop resilience, a key lesson from the pandemic. For Malaysia, socio-economic resilience underscores our inclusive and holistic development as envisaged by the Madani Economy Framework,” he said in his speech at the National Consultation on Green Industrialisation in Malaysia: Integrated Policy Strategies for a Sustainable Future here today.

The two-day event is organised by the United Nations Trade and Development (Unctad) in collaboration with Khazanah Research Institute.

Tengku Zafrul said Malaysia’s current challenges, such as climate change, pollution, resource scarcity and geopolitical tensions demand rethinking and reshaping traditional industrialisation approaches.

“On the flip side, this rapid progress also presents us with new opportunities to innovate and lead in sustainable development. Although Malaysia produces only 0.37% of the world’s cumulative total greenhouse gases, developing countries like Malaysia are often held to environmental standards that developed nations can easily fulfil.

“The transition to net-zero emissions is projected to cost the nation over RM1.2 trillion, or around US$270 billion. So, this is a necessary investment as we strive to balance economic growth with environmental sustainability,” he said.

By leveraging seven key levers – energy efficiency, renewable energy, hydrogen, bioenergy, green mobility, carbon capture utilisation and storage, and circular economy – Malaysia aims to mitigate climate change and drive sustainable economic growth, Tengku Zafrul said.

“We have set specific targets on socio-economic benefits in these areas, including an estimated RM80 billion contribution to gross domestic product and the creation of 350,000 high-skilled jobs by 2030.

“The recently launched Green Investment Strategy will leverage Malaysia’s existing strengths to secure investments and foster strategic partnerships to position Malaysia among the top 17 countries in the Global Competitiveness Index by 2030 and solidify our leadership in green industrialisation.”

Tengku Zafrul noted that Bank Negara Malaysia has mandated that at least 50% of new bank financing supports climate-supporting or energy-transitioning activities by 2026, including the greening of industrial parks.

He said the central bank is developing guidelines to align financial institutions’ strategies with Malaysia’s national climate goals, ensuring a robust financing framework for the greening of Malaysia’s industrial landscape.

“Miti is also looking into various initiatives to mobilise private capital towards advancing circular economies, climate mitigation, adaptation strategies, and sustainable mobility in our industry.

“While these policies represent significant progress, there is always room for enhancement, such as greater coordination and synergy among governmental agencies, industry stakeholders and civil society, strengthen the country’s research and development capabilities in green technologies, ensuring that workers and communities are adequately supported through robust training and retraining programmes and fostering better regional cooperation on greening the country’s industries and grids,” Tengku Zafrul said.

Source: The Sun

Global experts’ input needed for Malaysia’s green industrialisation: Tengku Zafrul

The industry for palm kernel shells (PKS) and wood pellets in the Asia Pacific region is projected to expand by 8.9 per cent and 8.6 per cent, respectively, from 2024 to 2026, according to Public Investment Bank Bhd.

The firm noted that Elridge Energy Holdings Bhd stands to benefit from industry growth due to rising exports, government renewable energy initiatives, and increasing demand from end-user industries.

Additionally, Malaysia’s status as a major oil palm producer with ample forest resources supports the availability of raw materials.

PublicInvest also noted that Elridge Energy’s growth will be fuelled by increasing its production capacity through the establishment of three new factories.

The company plans to build factories in Pasir Gudang and Lahad Datu, each equipped with two palm kernel shell (PKS) production lines, each with an annual capacity of 240,000 metric tonnes (MT), and situated near ports. 

Additionally, Elridge will construct a similar facility in Kuantan and may set up a temporary factory while the permanent one is under construction.

According to PublicInvest, these new locations are expected to commence operations in the fourth quarter of the financial year 2024 (4QFY24) for Pasir Gudang and Kuantan, and in the second quarter of the financial year 2025 (2QFY25) for Lahad Datu.

The aim is to lower transportation costs and reduce dependence on Port Klang.

The firm also noted that Elridge Energy’s competitive strengths are highlighted by several key factors.

“The company benefits from the strategic location of its well-equipped Port Klang factory. It ensures compliance with the requirements of both local and international customers,” it said.

PublicInvest said that Elridge Energy’s products are adaptable, catering to a range of end-user industries.

“Elride Energy offers two types of biomass fuel products, namely PKS as well as wood pellets. Both are suitable for heat and electricity generation in manufacturing industries and biomass power plants, respectively. The diverse applications of these products should increase demand and provide the company with opportunities to expand its customer base,” it added.

The firm has a fair value of 46 sen for Elridge Energy.

“The group’s earnings growth largely hinges on the speed at which its new PKS production line becomes operational and the growth in demand from end-user industries, which is influenced by government renewable energy initiatives,” it adds.

Source: NST

Elridge Energy to gain from palm kernel shells, wood pellets industry growth: PublicInvest

MEP Enviro Technology Sdn Bhd has set another benchmark with the opening of its RM100mil recovery plant at Bukit Minyak Industrial Park in Simpang Ampat, Penang.

The investment underscores the total waste management firm’s commitment in enhancing its capabilities and ensuring the highest standards in waste management and recovery processes.

Spread across about 2ha to cater for production, warehouse, research and development and quality assurance activities, the expansion will enable MEP to tap into the region’s growth opportunities while connecting with existing and potential customers.

Established in 2005, MEP has a presence in Singapore, Thailand and Hong Kong, and soon Vietnam and the Philippines. It employs over 500 people.

According to director Sean Ong, its monthly capacity for processing scheduled wastes is 18,000MT, covering 18 waste codes of scheduled waste, hazardous waste, ferrous and non-ferrous metal and plastic recycling.

“We specialise in managing IP waste and refining electronic waste to recover precious metals, transforming them into gold, silver, platinum and palladium ingots,” he said.

“Our commitment to sustainability and adherence to environmental, social and governance principles are at the core of everything we do.

“We believe our efforts not only contribute to a healthier planet but also set new standards for environmental responsibility in the industry.

“Today’s grand opening is not just a celebration of our new facilities but also a testament to the hard work and dedication of our entire team.”

Raja Muda of Perak Raja Ja’afar Raja Muda Musa opened the plant.

The event also saw the inking of collaborations by MEP with Tanaka Kikinzoku Kogyo and Universiti Teknikal Malaysia Melaka (UTeM).

MEP was represented by director Datuk Ivan Ong, Tanaka by Akihiko Domae (corporate office president of chemical and refining company) and UTeM by Prof Dr Hambali Arep (Faculty of Industrial and Manufacturing Technology and Engineering dean).

A leading company in the field of precious metal recovery, Tanaka will transfer its technologies and expertise in refining precious metal waste, promising advancements in the region’s waste management and precious metal recovery capabilities.

The memorandum of understanding with UTeM focused on ewaste recycling management and will cover critical areas such as the study of ewaste trade and residue management.

Also present were state local government chairman Jason H’ng Mooi Lye, Bukit Tengah assemblyman Gooi Hsiao Leung and consulate-general of Thailand in Penang Datuk Raschada Jiwalai.

H’ng said MEP’s focus on electronic waste and innovative refining processes was a significant step towards a zero-landfill future while the new recovery plant would help in creating job opportunities.

Last month, Ivan received a Darjah Setia Pangkuan Negeri (DSPN), which carries the title of Datuk, in conjunction with Penang Yang di-Pertua Negri Tun Ahmad Fuzi Abdul Razak’s 75th birthday celebration.

He said the honour was a recognition of his personal efforts and an acknowledgement of his MEP team’s hard work.

Source: The Star

New RM100mil plant in Bukit Minyak charts milestone in total waste management

South Korea-based Lotte Energy Materials Corp is planning for an initial additional investment of RM1.2bil to further expand its elecfoil manufacturing facilities in Samajaya Free Industrial Park here in Sarawak.

Lotte Energy is a leading provider of advanced battery material.

The Samajaya plant is the group’s first overseas factory to manufacture elecfoil, which is widely used in electric vehicles (EVs) and energy storage items.

According to Lotte Energy senior vice-president Park Ingoo, there is a possibility for Lotte Energy to put in an additional re-investment of RM2.5bil for the plant, which was acquired from ILIN Materials Co Ltd about five years ago.

He was speaking at a briefing for Sarawak deputy-premier Datuk Amar Awang Tengah Ali Hasan on Lotte Energy’s future expansion plans in Sarawak.

Awang Tengah, who is also the state’s International Trade, Industry and Investment Minister, was leading a delegation on a working visit to meet up with existing and potential South Korean investors in Seoul recently.

Despite the global economic uncertainties, Lotte Energy plans to expand its manufacturing plant to make Sarawak the key hub to produce cutting-edge battery materials, said the state’s Trade, Industry and Investment Ministry in a statement.

“The expansion of the manufacturing facility is expected to generate more than 200 jobs which will foster industrial growth and contribute to the local economy,” Park noted.

Meanwhile, another South Korean energy and chemical company, OCI Holdings, has reaffirmed its commitment to Awang Tengah during the meeting with the company’s top executives to expand its manufacturing facilities in Samalaju Industrial Park, Bintulu, with a potential reinvestment of RM3.1bil.

OCI specialises in the production of polycrystalline silicon, hydrogen peroxide and other chemical-related materials.

In 2017,OCI via subsidiary OCI Malaysia Sdn Bhd (OCIM), acquired full ownership of the polysilicon production facility from Japan’s Tokuyama.

To date, OCIM has invested over RM8bil in Sarawak, catering for the solar industry’s polysilicon needs.

OCI’s growth plans include diversifying and expanding its chemical materials production in Sarawak.

This includes joint ventures with South Korea’s Kumho, one of the world’s largest tire manufacturers and Tokuyama to produce epichlorohydrin and semiconductor-grade polysilicon respectively, with combined investments exceeding RM3.2bil.

OCI chairman Lee Woo Hyun has expressed the company’s keen interest in exploring further investments in power development, particularly in renewable energy (RE) via its subsidiary OCI Energy.

With a robust global presence, OCI is a major player in RE and energy storage systems.

Currently, OCI Energy is the largest independent solar developer in Texas, United States.

Awang Tengah, in welcoming Lee’s proposals, highlighted Sarawak government’s commitment to make Sarawak a leader in green energy.

“This collaboration in green power development is poised to enhance Sarawak’s energy security while promoting sustainable economic growth and environmental stewardship,” he added.

During the working trip, Awang Tengah also met with top executives of KH Shinhwa SnC, which is interested in further exploring collaborative business and investment opportunities with state-owned Sarawak Energy Bhd (SEB).

This in particular for the electricity safety enhancement projects, including investment in new technology and solutions for power generation.

KH Shinhwa, a solution provider and consultant for smart energy, smart cities and smart farms, is currently collaborating with SEB on a hybrid microgrid solar solution project worth about US$7mil in investment.

The outcome of the project is expected to provide alternative sustainable energy solutions and set a new benchmark in RE technology.

Source: The Star

South Korean companies eager to invest in Sarawak

The development of Malaysia’s electric vehicle (EV) ecosystem requires the participation of global players such as Tesla Inc, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said his ministry, Miti, had a “systematic and strategic” approach to attracting investments in the automotive industry, which is not limited to just Tesla.

In the first phase, Miti’s goal is to facilitate EV car imports to ensure the domestic market quickly achieve a critical mass, whereby it will lead to at least 10,000 charging stations for public use, as well as high EV usage in the Malaysian market.

“After achieving this critical mass, we will hopefully be able to attract EV producers to develop assemby or manufacturing plants in Malaysia,” the minister said when contacted by Bernama on this issue.

Zafrul said that when global EV producers develop assembly or manufacturing facilities in the country under the second phase, it will also drive local automotive small and medium enterprises (SMEs) to boost their respective capacity to support the global EV producers’ supply chain by supplying spare parts, components and factory automation systems.

“We have an advantage, given that our semiconductor sector has been well established for more than 50 years — and EVs certainly use a lot of semiconductors,” he said.

The minister also stressed that Tesla, as a participant in the Global Battery Electric Vehicle (BEV) Initiative, definitely supports the development of the EV ecosystem in Malaysia from various aspects, despite not having made any commitment to opening a factory here. 

Zafrul pointed out that to date, Tesla had developed four experience centres in Malaysia.

Further, Tesla has reportedly surpassed the target of installing 50 charging units by setting up 52 ultra-fast chargers, with a capacity of more than 180 kilowatts each, at various sites in the Klang Valley, Johor, Melaka, Penang and Pahang.

In addition, the minister said, the Global BEV Initiative also requires at least 80% of the Tesla workforce to be Malaysians, and this condition was met.

Another condition that Tesla has fulfilled is partnership with at least 10 local SMEs in developing the country’s EV ecosystem, according to Zafrul.

“It has also partnered with five Malaysian banking groups, and two local insurance firms, in offering financing packages for Tesla car purchases.

“Tesla is also collaborating with local logistics companies to handle various EV-related transactions,” the minister said.

All this, he said, demonstrates Tesla’s seriousness in continuing its investment in Malaysia.

Zafrul also noted that only Tesla had applied and been approved for participation in the Global BEV Initiative so far.

Source: Bernama

Global players like Tesla needed for development of Malaysia’s EV ecosystem, says Zafrul

The country’s clear economic policies and political stability were key factors that prompted global semiconductor company Infineon Technologies AG (Infineon) to announce an additional investment of RM30.1 billion yesterday, said Prime Minister Datuk Seri Anwar Ibrahim.

He added that the nation’s energy transition and digitalisation, as well as the New Industrial Master Plan 2030 (NIMP 2030) also played a role in the company’s decision.

The RM30.1 billion investment will fund Phase 2 of Infineon’s 200-millimeter silicon carbide (SiC) power semiconductor fabrication facility in Kulim, Kedah, which is also the world’s largest.

Speaking at the launch of the Guidelines on the Management and Governance of Federal Statutory Bodies today, Anwar said the investment is set to create 4,000 jobs, including in fields such as artificial intelligence (AI) engineering and the semiconductor sector.

To this end, the Prime Minister emphasised the need for universities to ensure a sufficient supply of skilled talent.

“Universities need to be mobilised towards this goal because there is a shortage of engineers and we lack the skills in advanced digital fields and AI. These are areas we need to address,“ he said.

At the same time, Malaysia should also compare its performance with those of its regional peers to enhance business facilitation and competitiveness, said Anwar, noting that the country is still lagging in certain areas such as investment approvals.

He added that investors frequently express concerns about the approval processes, noting that countries like Vietnam currently outperform Malaysia in this area.

On another note, the Prime Minister highlighted that according to advanced estimates by the Department of Statistics Malaysia, the country’s economy is projected to grow by 5.8 per cent in the second quarter of 2024 (2Q 2024), the highest growth rate in Asia.

The economy grew by 4.2 per cent in 1Q 2024, up from 2.9 per cent in the previous quarter, driven by increased household consumption and a recovery in exports due to higher external demand.

Bank Negara Malaysia is expected to announce 2Q 2024’s economic figures next Friday.

Source: Bernama

Infineon’s additional investment reflects confidence in national policies – PM Anwar

Prime Minister Datuk Seri Anwar Ibrahim said the electrical and electronics (E&E) sector will be a vital pillar in improving Kedahans’ quality of life.

The E&E industry has been crucial in diversifying the state’s economy and generating employment opportunities.

“The government hopes this industry will become one of the pillars in lifting the quality of life in Kedah,” he said in a statement after an engagement session with E&E industry players at SilTerra Malaysia Sdn Bhd at the Kulim Hi-Tech Park here today.

The session was part of the Finance Ministry’s nationwide tour to gather feedback for the 2025 Budget.

Present were Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor and Kedah State Secretary Datuk Seri Norizan Khazali.

Anwar, who is also finance minister, said the Kulim Hi-Tech Park had become a focal point for the E&E industry, one of the engines of economic growth.

“The government aims to elevate Kedah’s E&E industry within the global value chain by enhancing added value and research and development.”

Earlier today, Anwar opened the first phase of Infineon Technologies AG’s power fabrication plant, which is poised to become the world’s largest and most competitive 200mm silicon carbide power semiconductor plant.

Source: NST

E&E sector to improve quality of life for Kedah people, says PM

Malaysia has emerged as the top investment destination for German electrical and electronics (E&E) industry players.

Prime Minister Datuk Seri Anwar Ibrahim said the country’s strong ecosystem for the industry has positioned it as a global hub for the front-end of E&E sectors.

“In this region, Germany has virtually chosen Malaysia as its priority over other countries.

“This advantage is not just due to the prime minister, it stems from an ecosystem that has been in place since the 1980s in Malaysia,” he said during his keynote address at an engagement session with E&E industry stakeholders here.

Anwar said, despite differing political views between Malaysia and Germany on international conflicts, German Chancellor Olaf Scholz has firmly supported the significant investment by German E&E giant Infineon Technologies in Kulim.

“When I met Chancellor Olaf Scholz, the issue that was raised was my differing stance on Gaza. However, he strongly supports Infineon’s substantial investment here.

“Even though he joked with me, saying Infineon should expand its facilities in Germany, he assured me that his government fully encourages and supports this investment,” he added.

Earlier, Anwar opened the first phase of Infineon Technologies AG’s new power fabrication plant in Malaysia, which is set to become the world’s largest and most competitive 200mm silicon carbide (SiC) power semiconductor plant.

Infineon chief executive officer Jochen Hanebeck said the first phase of the Kulim 3 plant, located in the Kulim High-Tech Park (KHTP), is part of a €5 billion (RM25 billion) investment plan over the next five years, following the announcement of a second phase of its module three construction last year.

Source: NST

Anwar: M’sia is leading investment hub for German electronics, electrical firms

Datuk Seri Anwar Ibrahim has reminded government agencies and learning institutions to do away with the culture of complacency to retain Malaysia’s advantage as a prominent hub for the semiconductor sector.

The prime minister pressed on the importance of building Malaysia’s resilience by enhancing the existing ecosystem comprising government efficiency, sound infrastructure and an education system to continue drawing high value investment in the electrical and electronic (E&E) sector.

“Malaysia is now regarded as the hub in the region for its ecosystem. We (are able to) compete with our neighbours because we have the edge for the last two to three decades as the ecosystem helps.

“However, it needs to be improved. I always emphasise the need for (building) resilience.

“The culture of complacency, the culture of contentment will not lead us anywhere.

“Of course I am delighted (by the current achievement), thank you again, but that is not sufficient,” Anwar said in his speech at the opening of Infineon Technologies AG’s world’s largest 200mm silicon carbide (SiC) power semiconductor fabrication plant in Kulim Hi-Tech Park (KHTP) today.

Present were International Trade and Industry Minister Senator Tengku Datuk Seri Zafrul Tengku Abdul Aziz, Menteri Besar Datuk Seri Muhammad Sanusi Md Nor and

Infineon chief executive officer Jochen Hanebeck.

The German global semiconductor giant is investing RM34 billion to develop two phases of Infineon’s Kulim 3 plant over a span of 10 years.

Anwar stressed the importance of government agencies and training institutions reciprocating investors’ confidence in the country.

“This is a remarkable feat, thanks to all the players for playing their part. This shows Malaysia has now moved up the ladder, and we need to be prepared.

“But my concern is that we must not sit on our laurels… we are pushing forward and to push that agenda means all agencies, all departments, all levels of professionalism must step up.

“I believe my colleague (Tengku Zafrul) and the menteri besar (Sanusi) also share a similar sentiment that we cannot expect to be regarded as a successful player in this new technology if we continue to work at a normal pace.

“The infrastructure must be great. This includes KHTP, state government and federal agencies.

“We should not and cannot tolerate inefficiency or any delay because when companies like Infineon show interest in investing, we must reciprocate with clear commitment,” he said.

Anwar also reminded local universities and technical training institutions to be receptive and undertake changes at a faster pace.

“The learning and TVET (technical and vocational education and training) institutions in Kedah and Penang must be receptive and undertake changes at a faster pace.

“You can’t talk about digitalisation, innovation, AI (artificial intelligence) and expect to obtain good results at a normal pace of change or development,” he said.

Anwar said learning institutions must find ways to expedite the process to amend and introduce new programmes that are aligned to the current industry demand.

“As you lose that pace, you do not stand a chance in a post-normal world which require changes that are spontaneous at an unprecedented pace. Once you slow down, you lose the race.

“Therefore, setting up of, for instance, an AI department or faculty, or a new university, will require us to employ the best from the country and from the region or from the international community who can serve and contribute,” he said.

Source: NST

Anwar: Enhance ecosystem to retain Malaysia’s position as semiconductor hub

Prime Minister Datuk Seri Anwar Ibrahim today held a Budget 2025 engagement with electrical and electronics (E&E) industry players at the SilTerra Malaysia plant to get feedback from the industry and stakeholders.

The feedback received in the closed dialogue is expected to cover policies, incentives, programmes, as well as implementation and challenges before they are brought back to be studied at the Finance Ministry for adoption in the Madani Budget 2025.

Over 70 E&E industry players from 52 companies based in Kedah, Penang, and Perak attended the engagement session with Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz and Kedah Chief Minister Datuk Seri Muhammad Sanusi Md Nor.

Previously, Communications Minister Fahmi Fadzil said Anwar, who is also the Finance Minister, had instructed all ministers to hold a Madani Budget 2025 dialogue session with their respective ministries and all stakeholders in the sectors involved.

Budget 2025, which is the third budget under the Unity Government, will be presented on October 18 in Dewan Rakyat.

Earlier, the Prime Minister insisted that Budget 2025 will continue to focus on benchmarking aspects targeted within the framework of the Madani Economy including enabling Malaysia to become a major economy in Southeast Asia.

Source: Bernama

Budget 2025: PM holds engagement with northern electrical, electronics industry players

Enovix Corporation, a global leader in high-performance battery technology, held the grand opening of its first high-volume manufacturing facility (Fab2) in Penang today.

The state-of-the-art facility has commenced production of high-energy density batteries and is currently hosting visits from leading global customers. US-based Enovix plans to invest a total of US$1.2 billion (RM5.8 billion) in Malaysia over the next 15 years.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said, “Enovix’s Fab2 is a huge step for Malaysia in the global supply chain for advanced battery technologies, highlighting our country’s conducive investment landscape. It also fulfils our objective to attract the right high-tech industries to enhance the nation’s economic complexity, as outlined in the New Industrial Master Plan 2030 (NIMP 2030). We welcome this new facility, which is a significant milestone for Enovix, and strongly supports our NIMP’s goals by fostering innovation, creating high-value jobs, and driving sustainable growth, while increasingly positioning Malaysia as a global hub for cutting-edge technology.”

Penang Deputy Chief Minister II Jagdeep Singh Deo stated, “Today’s opening ceremony for the establishment of Enovix’s first high-volume manufacturing facility in Malaysia signifies the beginning of an exciting chapter for the company. The state is honoured to be selected to house this esteemed facility which will definitely bring positive technological and economic spillovers for not only Penang, but the northern region of Malaysia.”

Malaysian Investment Development Authority CEO Sikh Shamsul Ibrahim Sikh Abdul said Enovix’s significant investment in Malaysia will create jobs and enhance workforce’s technological capabilities.

Enovix chief operating officer Datuk Ajay Marathe said, “We are thrilled to open our doors at Fab2 and showcase our advanced manufacturing process of a cutting-edge batteries that we believe will usher in a new era of products for leading customers. We have been able to draw upon Malaysia’s deep pool of technical talent and are appreciative of the country’s business-friendly climate and close proximity to our customers and vendors.”

Enovix, headquartered in the United States, has production operations in India, South Korea and Malaysia. Enovix’s innovative battery technology is utilised across a diverse range of application, including Internet of Things, mobile phones, computing devices and vehicles.

Source: The Sun

US-based Enovix inaugurates high-volume manufacturing facility Penang

Recognising the rapid growth of power semiconductors driven by decarbonisation, particularly those based on wide bandgap materials, Germany’s Infineon Technologies AG, a leader in power systems and Internet of Things, is taking a significant step to shape the industry by expanding its Kulim 3 fabrication facility on top of the investment announced in February 2022.

Infineon will invest an additional €5 billion (RM24.5 billion) for Phase 2 of the facility in Kulim High Tech Park, Kedah, on top of the original €2 billion for Phase 1, to construct the world’s largest 200mm silicon carbide (SiC) power fabrication plant.

Prime Minister Datuk Seri Anwar Ibrahim today opened the first phase of Infineon’s new power fabrication plant in the high tech park.

Phase 1 and Phase 2 will generate 900 and 600 high-value jobs in Malaysia, respectively. In total, 4,000 jobs will be created. The Kulim 3 fab building incorporates advanced energy efficiency and sustainable practices.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz applauded Infineon’s decision to expand its presence in Malaysia stating, “Infineon’s world’s largest 200mm SiC power fab being constructed in Malaysia highlights our nation’s growing credibility as a regional hub for cutting-edge technology and innovation in the semiconductor space.

“We warmly welcome long-term, committed partners like Infineon to, among others, enhance our economic complexity and push for net zero, as laid out in the New Industrial Master Plan 2030.”

He added that Infineon’s additional RM24.5 billion investment in cutting-edge manufacturing technologies will not only drive innovation and Malaysia’s industrial reform agenda, but also create 1,500 high-skilled job opportunities for Malaysians.

“A robust industrial talent pipeline, ESG considerations and ecosystem development are key, and this is where our National Semiconductor Strategy will play its role towards attracting more high-quality investments that will drive Malaysia’s industrial reforms and sustainable growth,” said Tengku Zafrul.

Malaysian Investment Development Authority CEO Sikh Shamsul Ibrahim Sikh Abdul Majid, who attended the event, remarked, “Infineon’s expansion significantly strengthens Malaysia’s position in the global semiconductor supply chain. As decarbon-isation gains pace, this investment highlights the government’s dedication to green technologies and sustainable development, in line with the Green Investment Strategy.”

He said Infineon has been a key partner in these efforts, and its growth in Kulim is a major step for sustainable socio economic progress.

Infineon Technologies CEO Jochen Hanebeck said, “We have a clear vision at Infineon – driving decarbonisation and digitalisation.

“Together. Infineon Kulim plays a significant role in fulfilling this vision. When the second phase of the Kulim expansion is completed, this will be the largest and most competitive 200-millimeter silicon carbide power semiconductor fab in the world.”

“Today’s event is proof that we are not alone in our efforts to achieve a climate-neutral future. We have a strong network of customers, suppliers and partners that are working towards one common goal. We want to use innovative solutions to ensure that our planet remains a place worth living on.”

Malaysia assumes a pivotal role in the global semiconductor supply chain. In 2023, the electrical and electronics (E&E) industry secured RM85.4 billion in approved investments. E&E is the major contributor to the country’s gross domestic product growth, and is the sixth largest semiconductor exporter with a 7.5% global market share, as well as 13% of the global share for chip assembly.

Source: The Sun

Kulim will be home to world’s biggest 200mm SiC power fab plant