NexV Manufacturing Sdn Bhd (NMSB) has signed two major memorandums with automotive stakeholders to manufacture and assemble electric vehicles locally.

This is a significant milestone since the company initiated its groundbreaking ceremony for the new energy vehicles (NEV) manufacturing plant in Chembong, Negeri Sembilan in January 2024.

NMSB chairman Datuk SM Azli SM Nasimuddin Kamal said the first is a memorandum of agreement (MoA) between NMSB and five Tier Zero (T0) vendors.

He said T0 vendors operate in a “factory within factory” concept whereby vendors responsible for a particular component (or system) set up their operations, manpower and management system, all within the larger ecosystem of the full manufacturing process flow to assemble each component to complete a vehicle.

“This novel concept enables a more efficient management of assembly processes and material flows,” he said.

The concept enables a company to procure materials and components in a just-in-time (JIT) management system with a minimal inventory rate for critical materials and components, he said at the signing ceremony between NMSB and local automotive stakeholders to develop a new manufacturing and assembly ecosystem.

The five T0 vendors are PHN Industry Sdn Bhd, Hicom Teck See Manufacturing Malaysia Sdn Bhd, Noble Star Parts Sdn Bhd, Evan Karl Holdings Sdn Bhd, and KNR Biz Solution Sdn Bhd.

“More T0 vendors will be appointed once we complete the second and third construction phases,” SM Azli said.

He said the T0 vendors will enhance the capability and technology of existing vendors.

“For instance, one vendor may have expertise in one component. They can enhance their expertise for the entire component system in the T0 vendor system.

“Hence, our success in the NEV factory is deeply intertwined with our collaboration with T0 vendors as they provide critical components and technologies that are the backbone of our NEV products,” he said.

NMSB also signed agreements with two distributors Central Auto Distributors Bhd, a subsidiary of the Association of Malay Importers and Traders of Motor Vehicles Malaysia or PEKEMA, and Wise Star
Assets Sdn Bhd, appointing NMSB as the contract assembler.

The aim of the MoU is for NMSB to assemble brands that include Dongfeng NEV and Skywell electric buses.

He added that in fostering industrial growth, NMSB is also partnering Institut Kemahiran Tinggi Negara Chembong to equip students with skills in NEV technology, ensuring a skilled workforce ready to drive the industry forward.

NMSB’s factory is located on 29.67 hectares (73.34 acres) in the Chembong Industrial Area in Rembau, Negeri Sembilan and is set to become a cornerstone of NexV’s operations.

Source: Bernama

NexV Manufacturing inks agreements on new energy vehicle manufacturing

Malaysia needs to move upstream both vertically and horizontally to move upstream, to grow its global share of semiconductor exports and market share, according to a policy paper by the Institute of Strategic & International Studies (ISIS) Malaysia.

Upstreaming vertically refers to advancing its assemby, testing and packaging capabilities.

For example, producing advanced packaging in the Outsourced Assembly and Testing (Osat) process.

Upstreaming horizontally refers to moving towards the front-end of the value chain, which includes integrated circuit (IC) design and wafer fabrication.

The policy paper entitled “Malaysia’s semiconductor ecosystem amid geopolitical flux”, authored by Farlina Said and Angeline Tan, said a fabless integrated device manufacturer could unlock the largest share of economic value, at 57 per cent, compared to Osat, which could be limited to 6 per cent of the value in the supply chain.

“This would articulate the appeal of upstreaming horizontally into activities like IC design, as articulated in the National Industrial Master Plan. However, increasing Malaysia’s capacity in this sector would require addressing issues, such as talent and building proficiencies for IC design,” the paper said.

Furthermore, as Malaysia already has a 13 per cent foothold in testing and packaging, growing this to advanced packaging would increase its participation in the global semiconductor industry.

The paper said Malaysia’s ATP capabilities are primarily on traditional back-end packaging and would benefit from upstreaming vertically towards higher-value opportunities.

“Currently, there are some advanced packaging capabilities being developed in Malaysia, such as through ASE Technology and Intel. Further targeted incentives are required, specifically for players to tap into capital and training necessary for upstreaming on this front. The government should facilitate greater investments to help gain momentum developing advanced ATP capacities,” it said.

It added that there is interest within Malaysia’s semiconductor industry to move towards advanced packaging. However there may be concerns over the geopolitical risk arising out of the US-China tech rivalry, which would necessitate a coordinated response from the Ministry of Investment, Trade and Industry  and Ministry of Foreign Affairs to mitigate the risks to the semiconductor industry.

While acknowledging that public-private partnerships are already present in grooming small medium enterprises to fit in larger manufacturing ecosystem, such as the Penang Automation Cluster in Batu Kwan Industrial Park, the paper said the cluster and park are focused on manufacturing with lesser emphasis on building research and development (R&D), innovation and business synergy.

In upstreaming horizontally, Malaysia should grow talent in integrated circuit (IC) design, which may require exploring knowledge-transfer, training and wage policies that could appeal to multi national companies (MNCs) and universities.

The policy paper said Malaysia also needs to consider investing in the capacity in existing facilities while enhancing its successes.

It said a targeted strategy that encompasses concrete milestones, talent pipelines, incentives and investments is necessary to chart the way forward.

Source: NST

‘Malaysia must move upstream vertically, horizontally to grow semiconductor exports’

IT is not very often that Malaysia garners global attention for good reasons. Amid escalating geopolitical tensions between the US and China, and supply chain diversification worldwide, Malaysia is now in a sweet spot to become a third force in the global semiconductor industry.

Following back-to-back reports by Financial Times and The New York Times in March, which claimed that Malaysia has emerged as a surprising winner in the global chip industry, the nation continues to attract the attention of foreign media from China, Taiwan, South Korea and Vietnam.

Some of these foreign media have even questioned their governments, highlighting Malaysia’s success in attracting foreign direct investments (FDIs) in the tech space, and urging their own countries to take similar action.

Ironically, this is something we Malaysians have been doing for years — urging our government to do more so we can catch up with the Four Asian Tigers: Hong Kong, Singapore, South Korea and Taiwan.

It feels strange, but gratifying, of course, to be envied by others.

While tremendous opportunities have now been presented right at our doorstep, it is not yet time to celebrate. Our work has only just begun.

As Prime Minister Datuk Seri Anwar Ibrahim unveiled Malaysia’s National Semiconductor Strategy (NSS) at Semicon Southeast Asia 2024 on May 28, most industry players agree that the initiatives and headline targets are precisely what the nation should aim to accomplish.

For the longest time, Malaysia has aspired to move up the electrical and electronics (E&E) value chain. However, there was no concrete plan or national road map to drive this — until now.

As Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Aziz rightly pointed out, Malaysia has a “once-in-a-generation opportunity” to propel the country’s E&E industry forward.

“We must act now, become more resilient and seize the opportunity because failing to do so may result in a missed economic advantage that could set us back for years,” he said during a media briefing on the NSS in Putrajaya a day after it was unveiled.

The sense of excitement and anticipation of the opportunities that have come knocking on our door was palpable at the Semicon Southeast Asia 2024 exposition, recently held at the Malaysia International Trade and Exhibition Centre (Mitec) in Kuala Lumpur.

The bustling event that ran from May 28 to 30 (Tuesday to Thursday) was crowded with participants, so much so that Mitec’s parking lots were filled to capacity. And exhibitors gave overwhelmingly positive feedback.

The consensus is that the worst is over for the semiconductor downcycle and chip glut. Some even suggest that a bull run is possible in the second half of the year.

And Malaysia, whose Penang state has long evolved into an industrial hub for semiconductor and E&E products — earning it the nickname “Silicon Valley of the East”, will be right in the centre of it all.

Penang’s transformation from a thriving free port into a manufacturing and tourism hub started as early as the 1970s, when the state government, led by the late Tun Dr Lim Chong Eu, kick-started the state’s industrialisation.

The initiative attracted significant FDI and saw “The Eight Samurai” — the eight multinational corporations that brought the first wave of E&E manufacturing investments into Malaysia — setting up their operations here. They are Intel, Robert Bosch, Clarion, Advanced Micro Devices (AMD), Hewlett-Packard (now Keysight Technologies and Agilent Technologies), Litronix (now Osram Opto Semiconductors), Hitachi (now Renesas Electronics) and National Semiconductor.

Despite that strong start five decades ago, Malaysia stagnated in the E&E value chain, primarily remaining in the outsourced semiconductor assembly and test segment.

Even with the rise of the automated test equipment sub-sector in recent years, Malaysia has continued to struggle to elevate itself, particularly in front-end semiconductor design.

The newly launched NSS seeks to address this hurdle. As with all plans, though, success hinges on its execution. How effectively we implement these initiatives will determine whether we can capitalise on current global shifts and secure a favourable position in the semiconductor industry.

The NSS represents a pivotal step for Malaysia, but it is only the beginning. Malaysia must avoid past missteps and leverage this window of opportunity that has come upon us. The road ahead requires concerted efforts from all stakeholders, and the coming years are crucial in defining Malaysia’s trajectory in the high-stakes world of technology.

Can Malaysia regain its momentum and rise to the occasion?

The world is keenly watching. Let’s make sure we get this right.

Source: The Edge Malaysia

All eyes on Malaysia amid global chip war

MALAYSIA’s electrical and electronics (E&E) industry needs to take the first step to move up the value chain, from outsourced semiconductor assembly and test (OSAT) to higher-end activities such as integrated circuit (IC) design, high-end manufacturing and niche equipment.

The newly unveiled National Semiconductor Strategy (NSS), which has five ambitious headline targets, is the road map for achieving this objective. It is to be implemented in three phases over the next 10 years.

“We have to take one step at a time as we advance phase by phase. Malaysia already has the edge because our OSAT (sector) is quite strong. So, our next step should be modernising OSAT and going into advanced packaging, which itself is already quite a complex and high-value activity,” says Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz, emphasising that the NSS is a dynamic “living document” that has to be continuously refined for ongoing improvement.

According to him, Malaysia is also keen to attract wafer fabrication players but due to the capital-intensive nature of this segment of the value chain and the country’s financial constraints, such investments may only materialise in the third phase of the NSS.

“We want higher-end wafer fabs in Malaysia, but we cannot afford it right now. That’s why NSS has three phases, and we shall be looking at wafer fab in Phase 3. The new wafer fabs that we hope to attract in the future have to be higher-end than the existing ones.

“When you look at the global value-add share, OSAT made up 6% and this area has been our strength. Meanwhile, front-end fabrication accounts for 24%, whereas IC design and embedded software made up 50%. Therefore, we have to shift our focus from OSAT to higher-end value chain opportunities,” he stresses.

Based on The Edge’s channel check, it appears that many countries typically offer subsidies of about 30% to incentivise the establishment of capital-intensive wafer fabs.

When asked, Zafrul says that some wafer fabs are willing to come to Malaysia even if the government provides them with only a 10% subsidy.

“But to us, the amount is just too big. The Ministry of Finance (MoF) said there is a fiscal constraint. They want us to move step by step. And also, we need to show them the spillover effect of having wafer fabs.

“Other countries like Japan and South Korea have deeper pockets. They are already in that area and they have got bigger balance sheets. We want to play the game, but we have to have the money to play. That’s why there are only eight wafer fabs in Southeast Asia currently,” he explains.

Zafrul also points out the importance of specialty chemicals as raw materials to make wafer fabs. Petroliam Nasional Bhd (Petronas) has yet to build facilities to produce specialty chemicals within the country and currently makes them overseas.

“If we could ‘marry’ the wafer fab with Petronas, then they would probably need less fiscal support since we have talent, we have infrastructure, we have ecosystem, and now we have the ingredients that they need.

“Petronas has the specialty chemicals technology but currently, they don’t bring it back to Malaysia because it’s very high-end. The volume must be commercially viable for them to do it in Malaysia. Again, Malaysia has that base already. Now, we are encouraging them to build it here, so that we could complete our ecosystem,” he says.

Under the first phase of NSS, Malaysia will continue to develop the country’s strengths in the chip industry by modernising OSAT, attracting high-end semiconductor manufacturing equipment players and growing existing Malaysian fabs.

In the second phase, the country will pursue cutting-edge technology by attracting foreign direct investment (FDI) in advanced chips manufacturing, and at the same time, building more local champions.

Finally, in the third phase, Malaysia will double down on developing local firms in semiconductor design, advanced packaging and manufacturing equipment. By doing so, it will attract buyers of advanced chips to pursue advanced manufacturing here.

For a start, RM25 billion has been allocated as targeted incentives to implement the NSS.

The Edge has learnt that this figure includes RM5 billion in estimated tax foregone over five years, RM2 billion for existing capital grants and RM1.25 billion for the Human Resources Development Fund dedicated to the semiconductor sector.

Other key investments include RM2 billion for the Semiconductor Industrial Park, RM1.59 billion for the Advanced Packaging Centre, as well as RM2 billion each for the National Energy Transition Facility and the Green Tech Financing Scheme.

Additionally, there are funds for strategic co-investments, high-impact projects, domestic strategic investments and training incentives. Notably, RM1 billion has been earmarked for the Domestic Strategic Investment Fund to support locally owned semiconductor companies.

Zafrul reveals that about two weeks ago, the ministry held a session with government-linked investment companies, including Khazanah Nasional Bhd, the Employees Provident Fund (EPF) and Permodalan Nasional Bhd (PNB), urging them to have higher exposure to the semiconductor sector.

“To be fair, EPF and PNB said they have already invested in a few listed companies such as Oppstar Bhd (KL:OPPSTAR), ViTrox Corp Bhd (KL:VITROX) and Inari Amertron Bhd (KL:INARI). So, they said they are there, but they also realised that they could’ve come in earlier. But the thing is, they don’t have a team specialising in this area (semiconductor stocks). They are now looking at that,” he says.

Zafrul adds that the sovereign and local funds must support more local companies within the E&E ecosystem.

“We should help them to move higher in the value chain since they already have the base. I was surprised with companies like Inari, which has a market cap of over RM10 billion (close to RM13 billion at press time). With more support from the government and local funds, I am sure they could go to another level.

“At the moment, they are all on their own because our funds do not have high exposure to them. Now, Khazanah is leading it. Together with the Malaysian Investment Development Authority (Mida), they have done a lot of good studies on the landscape of the semiconductor industry in Malaysia,” he says.

Nurturing 60,000 local engineers

It is noteworthy that the RM25 billion allocation includes RM1.2 billion to cover the cost of training and upskilling 60,000 high-skilled engineers, at RM20,000 per engineer.

Zafrul says Malaysia has a strong E&E ecosystem in Penang and Kedah, while the country has produced many talents over the last 50 years. Unfortunately, Malaysia doesn’t have a complete ecosystem that goes all the way up to IC design. As a result, some of these talents have left to pursue their careers in other countries.

“We are working very hard on the talent programmes. MoF is committed to support the talent programmes. We should also allow more foreign talents to come in. All these are being done,” he says.

Zafrul highlights that the Ministry of Education has committed to nurturing 30,000 high-skilled Malaysian engineers in five years while another 30,000 local Technical and Vocational Education and Training talents will come from the other ministries.

“We need not just engineers, we also need engineers who are technicians. That’s how we got the number (60,000). Based on today’s number, we could produce 10,000 talents a year, so that’s 50,000 in five years. We have to increase it by another 10,000 to 60,000. Vietnam is looking at 50,000, so we need to have a minimum of 60,000.

“We need to take into consideration that some engineers might not be practising. When I was in CIMB, half of my former colleagues in the exco (executive committee) were engineers. The reason is because engineers’ starting pay is low as compared to the service sector,” he elaborates.

Meanwhile, it is also important to note that some engineers opt to leave Malaysia to pursue opportunities abroad or become entrepreneurs as many in this profession are not actively practising.

“That’s why we want to push for higher pay in Malaysia. My colleague (deputy minister Liew) Chin Tong has been urging this. At the end of the day, it’s supply and demand, right? If we want them, we have to pay them more. That’s the only way,” Zafrul reasons.

He acknowledges, however, that local companies have been complaining about this as some claim that they cannot compete with the multinational corporations (MNCs) in terms of paying higher salaries.

“The thing is, if you look at the numbers, they are making money. So, their concern is more about profit margin. But in the long run, they have no choice (but to increase the pay).

“I think they realised their problem and they are starting to pay more to get the good engineers. Some even pay better than the MNCs so that their talents are not poached by the foreign firms,” says Zafrul.

He adds that Malaysia could also look at attracting foreign talents, but the priority is to bring Malaysians home.

“Perhaps we could be looking at attracting talents from China and India. But right now, we are looking at mainly Malaysians in other countries. That’s more realistic to me,” he says.

Interestingly, Zafrul believes that some companies were “exaggerating” when they complained about the shortage of talent in Malaysia.

“This talent shortage issue, I’m not convinced (by everything I have heard). I just can’t see it. Some of them complain because of the price. The talents are not enough when they have to pay more. Perhaps next time when you talk to the industry players, you should ask them ‘how many talents are you short of?’”

“In fact, we are getting Mida to check properly. Yes, it is true that we have a shortage of talents, but only in some specialised areas, not in general numbers. Many of them claim that there is a shortage of talents, but they still come, and they are still operating. I mean, why would you come to Malaysia if there’s no talent?” 

Source: The Edge Malaysia

National Semiconductor Strategy to guide industry up value chain

Taiwan-based copper-clad laminate manufacturer Elite Material Co Ltd (EMC) is investing RM900 million to set up Penang Science Park North facility.

EMC chairman and chief executive officer Albert Dong said it started construction on 5.6 hectares (13.84 acres) in Penang Science Park North. There will be two phases with the first phase expected to be completed in the first half of 2025.

“This is our first facility in Southeast Asia. We chose Penang because it is a regional semiconductor hub with the largest semiconductor industry cluster comprising global companies in Southeast Asia,” he said in a press conference with Penang Chief Minister Chow Kon Yeow.

He said the facility will serve local and global customers, providing EMC with additional growth momentum.

It will have a monthly capacity of 600,000 sheets from phase one and an additional 150,000 sheets from phase two. The facility is expected to generate monthly revenue of RM150 million at a maximum production of 750,000 copper-clad laminate sheets.

Mass production will begin in the second quarter of 2025.

Dong said EMC is the only copper-clad laminate maker using its own technology, aside from those in South Korea and Japan.

“We are thrilled to be number three worldwide in our industry in 2023, having moved up from number four. But we are even more excited to embark on this new chapter in Southeast Asia with the establishment of our state-of-the-art manufacturing facility in Penang.

“This strategic investment reflects our commitment to our customers’ needs. We are confident that our presence in Malaysia will bolster the semiconductor industry and the local printed circuit board industry since we are also an (integrated circuit) substrate material manufacturer,” he said.

Meanwhile, Chow said EMC’s investment in Penang solidifies the state’s position as a high-impact economic hub nationally and regionally.

“This is a milestone in Penang’s industry transformation journey and evidence of how major strategic investments translate into technology and economic spillovers,” he said.

EMC, which boasts an annual revenue of US$1.6 billion, entered the integrated circuit substrate market in 2020. It expects its substrate capacity in Penang to be ready as early as 2026.

EMC has six manufacturing sites in four countries with over 4,500 employees worldwide.

Source: Bernama

Taiwan-based Elite Material invests RM900 mil in Penang manufacturing facility

The recent factory launch by Chery Auto Malaysia Sdn Bhd in Shah Alam, first of its kind in Asean, signifies Selangor as a prime destination for trade and investment, said Ng Sze Han.

The state executive councillor for investment, trade, and mobility said the Chery Corporate Malaysia Factory, along with national carmaker Proton’s manufacturing plant in Shah Alam, emphasises Selangor’s pivotal role in the region’s automotive industry.

“Selangor continues to shine as a dynamic hub in Southeast Asia, as demonstrated by the recent launch of Chery Malaysia’s factory in Shah Alam.

“The facility is pioneering smart transportation and intelligent manufacturing. This initiative underscores Selangor’s role in driving a new interconnected lifestyle for global consumers,” said Ng in a Facebook post after the factory launch yesterday.

Also in attendance were Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz together with China’s Industry and Information Minister Jin Zhuanglong.

The plant is the brand’s first dedicated CKD, or assembly facility, and it is tasked with producing the Jaecoo J7 All-Wheel Drive and Two-Wheel Drive as the inaugural models.

It is reported the factory will create some 500 new jobs, with the potential of growth in line with market demands.

Highlighting the 50th anniversary of Malaysia-China bilateral ties this year, Ng said continued industrial collaboration between the two nations reflects the strong enthusiasm for further business cooperation and exchange.

“The continued synergy between Selangor and China, particularly in emerging industries, highlights the strong enthusiasm for further business cooperation and exchange, reinforcing Selangor’s status as a gateway to Asean,” he added.

Meanwhile, Chery Automobile Co Ltd chairman Yin Tongyue said Malaysia remains an important market for the company’s long-term growth.

“Malaysia is a very important market for Chery. Our vision for the Malaysian market is to grow with our local partners and customers for the long term,” he said, as reported by automotive news portal AutoBuzz.

Strategically located in the Shah Alam industrial zone, the Chery Corporate Malaysia Factory is close to local manufacturers critical to its supply chain.

Its proximity to Port Klang, the country’s busiest port and the second-largest in Southeast Asia, will help the automaker access Asean region exports in the future.

Chery also operates another facility in Kulim, Kedah, where it assembles the Chery Omoda 5 and Tiggo 8 Pro SUV models.

To date, Chery has created over 1,000 new jobs nationwide.

Source: Selangor Journal

Selangor remains dynamic hub as Chery opens first Asean factory in Shah Alam

Chery Auto Malaysia Sdn Bhd’s new Chery corporate Malaysia factory here has created 500 new jobs. The factory, which is the first in Asean to locally produce Jaecoo’s J7, also comes with the potential to further grow in line with market demands. 

The jobs created here are part of Chery’s commitment to create over 1,000 jobs in Malaysia through its local operations.

The brand also has a network of 100 sales and service centres across the nation. 

“Malaysia is a very important market for Chery. Our vision for the Malaysian market is to grow with our local partners and customers for the long term,” said Chery Automobile Co. Ltd Chairman, Yin Tongyue, in his address at the launch of the Chery Corporate Malaysia Factory.

The factory launch was commemorated with the first ever Jaecoo J7 All-Wheel Drive (AWD) premium off-road sports utility vehicle (SUV) rolling off its production line.

The event was witnessed by Minister of Investment, Trade and Industry Malaysia Tengku Datuk Seri Utama Zafrul, and China’s Minister of Industry and Information Technology (MIIT), Dr Jin Zhuanglong. 

The facility will focus on assembling Jaecoo’s models in particular the AWD and two-wheel drive (2WD) variant of the J7.

Strategically located in the Shah Alam industrial zone, the Chery Corporate Malaysia Factory is in close proximity to local manufacturers who are critical to its supply chain.

The facility is also said to be geographically located close to Malaysia’s busiest port and the second largest in Southeast Asia, which primes the automaker’s readiness to export to the Asean region in the future.

“In addition to strengthening the value chain of Chery and Jaecoo offerings to customers, today’s launch is a positive leap for Malaysia’s automotive industry and economy. Paired with our strong service network built with our local dealer partners, Chery is excited to deliver best-in-class vehicles equipped with innovative technology, and the absolute best customer experience to the Malaysian market,” Yin said.

Weighing in on the evolving Energy Efficient Vehicle (EEV) market, he added that the positive response of customers in Malaysia towards the brand and offerings by Chery and Jaecoo are making them very excited to support the growth of electric vehicles in Malaysia.

“In line with its brand ecology, “New Energy, New Eco, New Era.”, Jaecoo teased the market with a taste of its future EV portfolio recently, previewing the Tiggo 8 Pro Plug-in Hybrid Electric Vehicle (PHEV), Jaecoo J7 Plug-in Hybrid Electric Vehicle (PHEV) and the Jaecoo J6 full-fledged Electric Vehicle (EV) at the Malaysia Autoshow 2024 in May. 

The new production facility launch will be closely followed by the official launch of Jaecoo’s premium off-road SUV, the J7, in Malaysia, which will be celebrated over three days, from July 19 to 21.

Chery’s models will continue to be produced in partnership with Inokom in Kulim, Kedah.  

Source: NST

Chery-Jaecoo’s first local assembly plant creates 500 jobs, primed for export potential

China car company Chery’s move to set up their own assembly plant in Shah Alam, refutes claims that Malaysia’s automotive supply chain is not cost effective, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said.

In his speech at the launch of Chery’s assembly plant, he said the new facility symbolises not just an expansion of their operational capabilities but also their unwavering commitment to assembling vehicles that are both technologically advanced and affordable.

Tengku Zafrul added that it also promotes domestic production, and job creation.

“Chery’s swift move into localisation involves substantial investment in localvendors. This approach has significantly reduced the cost of Chery’s locally produced components, effectively refuting the allegation that Malaysia’s automotive supply chain cannot be cost-effective, ” he said in his speech.

Earlies this month, Geely chairman Li Shufu reportedly said that Malaysia’s automotive supply chain costs 30 per cent higher than China and 10 per cent higher than Thailand, due to a reliance on overseas imports for supply of parts.

Li said that Malaysia’s automotive parts supply still relies heavily on overseas imports, and that the relatively small size of the local automotive market meant it was difficult to get enough scale to keep costs down.

Since the launch of two Chery models, the Omoda 5 and Tiggo 8 Pro, in July last year, Chery recently rolled out its 10,000th locally assembled vehicle at Inokom’s Kulim plant.

Chery Malaysia pledged an investment of RM1 billion in Malaysia last year.

“We are proud of Chery’s approach and rapid expansion as well as steadfast dedication to their investment commitments. Their efforts in producing high-quality vehicles align perfectly with our national goals of advancing technology, fostering economic growth, and providing Malaysians with more affordable, high-quality car options,” Tengku Zafrul said.

Source: NST

Tengku Zafrul: Chery’s localisation move refutes claim that Malaysia’s auto supply chain not cost effective

Malaysia is poised to become Southeast Asia’s aerospace industry hub, driven by a robust ecosystem, but faces challenges in production capacity, talent and product development, particularly in manufacturing, according to Turkish Aerospace Malaysia (Tusas) CEO Mohd Shahiman Sulaiman.

“The ecosystem here is very solid. The supply chain is very strong. So that means ease of doing business in that nature is good. This is also something, I believe, that sparked why Malaysia is talking about design avionics more. Because designing aircraft computers, actually Malaysia is the only country in Southeast Asia that has that capability,” he told SunBiz in an interview.

Furthermore, Mohd Shahiman noted that Malaysia has strengths in designing capability as well as system integration.

“Malaysia has proven capabilities in design. Malaysia’s strength lies in its design capability. Whatever it is, car, robot, aircraft, Malaysia can design it,” he said.

He also highlighted that one of the reasons why avionics is one of Tusas’ core areas here is because of Malaysia’s strength in electronics, as it is a 50-year-old industry in the country.

However, Mohd Shahiman said, what is lacking is the opportunity for commercialisation.

What Malaysia needs, he added, is anchor companies to create final products for the global market.

“Where does the design go? Where is it sold? This has always been a limitation in Malaysia. One of the ways we can address this is through the presence of anchor companies. What makes a product successfully sell in the market? You need the capability for commercialisation,” he said.

Mohd Shahiman pointed out that robust demand for military and commercial aircraft is a driving force for the industry. “The demand is here. We have substantial backlogs to deliver to customers,“ he said.

However, he said the current industry capacity in Malaysia needs substantial scaling up to meet the demand. “And in scaling up in aero manufacturing, what is limiting Malaysia is the production capacity.”

Mohd Shahiman also highlighted the critical need for skilled designers and engineers, citing the shortage of local talent as a hurdle.

However, he said he remains optimistic about the future of the industry despite these challenges.

There is tremendous potential for growth with the right investments and strategic initiatives, Mohd Shahiman said.

“With the right policies and investments, Malaysia can become a significant player in the global aerospace industry,” he affirmed.

Malaysia launched the Malaysian Aerospace Industry Blueprint 2030, an initiative with the goal of positioning the country as Southeast Asia’s most significant aerospace market. The blueprint aims to address the gaps, focusing on areas such as maintenance, repair and overhaul; aerospace manufacturing; and, eventually, engineering services and system integration.

Malaysia is currently home to more than 200 aerospace companies, international and local.

Source: The Sun

Malaysia’s aerospace ecosystem robust, strong but faces challenges: Tusas CEO

Turkish Aerospace Malaysia (Tusas) plans to expand manufacturing capabilities in Malaysia, potentially developing entire aircraft within the country.

CEO Mohd Shahiman Sulaiman said this will involve transferring technology, setting up manufacturing facilities and increasing local content in production.

“We want to grow big, big time. If possible, we want to do the whole aircraft here in Malaysia. Normally, in a customer relationship, someone buys, someone gets a product. What we are offering is more. We are offering beyond conventional customer relationships,” he told SunBiz in an interview.

He said the local aerospace ecosystem is expected to benefit from these developments.

Increased exports and technological advancements will have a positive economic impact on Malaysia, he added.

“This initiative is an important step in our commitment to enhancing the Malaysian aerospace sector and building a self-sustaining ecosystem,” he said.

He said Tusas intends to employ 500 designers in Malaysia by 2028, up from over 100 currently.

“If we grow organically, that’s the number. But if we expand into a regional aerospace production center or hub, then the numbers will be in the thousands, easily in the thousands,” he said.

Mohd Shahiman also mentioned collaborations with local government agencies, universities, and business-to-business approach.

“We work closely with Mida and some other agencies. They have been helping us sustain in certain areas. Many agencies are stepping in to offer additional support to aid our growth.

“We partner with 10 universities for talent development, enrolling students annually across all four years of study. Each July, we send two groups of 30 students to our Ankara headquarters for industrial training, covering all expenses except for their flight tickets,” he said.

Mohd Shahiman shared that Tusas in the Malaysian market focuses primarily on avionics and aircraft structures.

“We design, manufacture, and assemble avionics, which are then send back to Ankara for further integration and distribution into new aircraft destined for global markets,” he said.

Source: The Sun

Tusas plans to expand operations in Malaysia in big way

North Duchess Pharmaceuticals (NDP) signed a Memorandum of Understanding (MoU) with Allied Identity USA Group today to develop the Green Pharma Project in Perlis.

North Duchess Malaysia Sdn Berhad founder and director, Tengku Syarif Temenggong Perlis Datuk Seri Syed Amir Abidin Ibni Almarhum Tuanku Raja Syed Putra Jamalullail and the managing director of Asia Pacific Operations of the Allied Identity USA Group Steve Huffman signed the agreement on behalf of their companies.

“This initiative is expected to create over 300 jobs for semi or highly-skilled professionals and tap into Malaysia’s growing pharmaceuticals market, valued at RM16 billion in 2023, offering a stable growth rate of eight to 10 per cent annually.

“The project’s sustainable healthcare manufacturing focus includes the construction of a GMP-compliant Halal pharmaceutical solid dosage plant in Perlis and the production of Halal-certified pharmaceuticals for the Health Minister within 36 months, with plans for international expansion within 48 years,“ North Duchess Malaysia Sdn Bhd chief executive executive officer (CEO) Che Puan Temenggong Perlis Datin Seri Farinawati Mohd Din said in a press conference held after the MoU signing ceremony here, yesterday.

She also shared that it would take five years to complete the project, which is focused on production of diabetics, high blood pressure and high cholesterol medication.

The project, which will be developed in Chuping Valley, Perlis, aims to revolutionise pharmaceutical manufacturing in Malaysia by diversifying Perlis’s economic base and become a significant revenue driver within 36 months of acquisition, Che Puan Temenggong Perlis said.

In addition, the project is projected to generate a total revenue of RM 465 million over five years with an operational profit forecast of RM183 million.

“This project represents not just an investment in infrastructure but a commitment to advancing healthcare solutions and meeting the growing medication demands of our nations and global community.

“We aim to set new standards in eco-friendly manufacturing, leveraging cutting-edge technologies to minimise our environmental footprint and uphold the highest standards of safety and quality,“ she said.

Meanwhile, Steve Huffman said Malaysia is a very strategic market and there was great potential to export medication to neighbouring countries such as Cambodia, Thailand, and the Philippines.

“So, we want to make sure that whatever we do, we take care of the Malaysian market for drugs, but we also set up a provision for where we can export and diversify the revenue streams to make sure it’s sustainable,“ he added.

He was happy to note that the partnership represented a critical milestone, combining resources and expertise to advance sustainable pharmaceutical solutions in Perlis.

Source: Bernama

Green Pharma Project in Perlis to be completed by 2029

Boutique developer Ancubic Group has announced a 90% take-up for the first phase of its first industrial development called A-Park Batu Kawan since its official launch on March 11. The launch was officiated by Penang Chief Minister Chow Kon Yeow.

Spanning 20.5 acres and located east of Batu Kawan Industrial Park (BKIP) in Batu Kawan, Penang, it has a gross development value of RM292 million. A-Park Batu Kawan features 50 units of 1½- and 2-storey semi-detached and detached factories. These factories will have built-up sizes ranging from 6,800 to 16,700 sq ft with selling prices from RM4 million.

The first phase of the gated and guarded industrial park consists of 31 semidee and detached factories. 

“A-Park Batu Kawan is the only [new] industry development located within a 10km radius from the BKIP [for now]. Our buyers, which are mostly SMEs (small and medium enterprises) who produce and supply semiconductor components or services, such as logistics, to the large-scale manufacturers, get to enjoy a catchment of over 160 large-scale local and international investments nearby,” Ancubic’s founder, managing director and chairman Datuk Low Boon An tells City & Country.

He highlights that the units at A-Park Batu Kawan will offer a four-in-one use concept (for office, showroom, production and storage), have a modern façade, and are built with high-quality construction materials and features that are benchmarked against international standards.

These features include a 150amp power supply for semidee units and 200amp for detached units; a 9m ceiling height from the ground floor to the mezzanine floor; and a 3.5m ceiling height from Level 1. There is a 1.5-tonne loading capacity for the ground floor and 0.356 tonnes for the first floor; 13ft motorised roller shutters; a flexible floor layout with a spacious production area; a rooftop that is ready for solar panel installation; and optimal ventilation, natural lighting and visibility from the main road.

Another feature of A-Park Batu Kawan is the industrial park’s extra-wide 100ft main entrance and 50ft-wide internal roads, which will allow two trucks to go in and out simultaneously. It is also a freehold development with individual titles.

Due to the encouraging market response for the first phase, the developer is planning to roll out the second and third phases of the development in the second half of this year. The entire development is slated for completion in 2027.

A-Park Bangi

Apart from A-Park Batu Kawan, Ancubic is mulling the launch of its second industrial park in Bandar Baru Bangi, Selangor — A-Park Bangi — in August or September.

Similar to A-Park Batu Kawan, A-Park Bangi has a land size of approximately 20 acres and a gated and guarded industrial park, offering 50 2- and 3-storey semi-detached and detached factories with built-ups ranging from 9,500 to 31,000 sq ft. The selling prices will be disclosed in due course.

“Our A-Park Bangi in Selangor is surrounded by many multinational companies from the US and Japan. We are targeting the SME buyers and investors, who can supply products and services to existing large-scale manufacturers there, to set up their facility here in our development,” Low says.

When asked about the industry property market outlook, Low is confident that market demand will continue to be strong as the federal government is committed to bolstering the nation’s manufacturing sectors with microeconomic targets, which include boosting the gross domestic product (GDP) of the manufacturing sector by 6.5% annually. He believes that the policy will continue to drive market demand for modern industrial parks.

“The recently launched NIMP 2030 (New Industrial Master Plan 2030) will drive demand for quality industrial properties such as our A-Park in Batu Kawan and Bangi … As the flight-to-quality trend becomes more and more popular, gated and guarded, well-located and greener industrial parks are expected to be very sought-after, moving forward,” Low shares.

NIMP 2030 is an industrial policy for the manufacturing and manufacturing-related services sector, which was launched by the federal government in September 2023 with the aim of transforming Malaysia’s industrial landscape by achieving a RM587.5 billion contribution to Malaysia’s total GDP by 2030.

Source: The Edge Markets

A-Park Batu Kawan Phase 1 achieves 90% take-up

Malaysia is expected to benefit from the electronics sector recovery in the second half of the year (2H24), given its position further down the electronics value chain, according to the Institute of Chartered Accountants in England and Wales (ICAEW).

ICAEW said in a statement that the electronics sector is a bright spot for Southeast Asia’s economy, with the region projected to grow by 4% in 2024 and 2025.

“However, this is below the pre-pandemic average of 5% in the five years prior, largely due to expected challenges in domestic consumption as interest rates remain higher for longer,” it noted.

The association said electronics-focused exporters in Southeast Asia gained a better foothold in the first quarter of this year (Q1’24), in large part due to the bottoming out of the electronics sector.

“The recovery in global semiconductor sales, which saw a 15.3% year-on-year (y-o-y) increase in Q1’24, has particularly benefited Vietnam, where export growth soared to an estimated 16.8% y-o-y.

“On a seasonally adjusted basis, Singapore also saw a rebound in non-oil domestic exports in April with an estimated 9.4% month-onmonth growth, marking a positive turn after two consecutive months of decline,” it said.

Meanwhile, on domestic consumption in the region, ICAEW said domestic consumption in Southeast Asia was more resilient than expected in Q1’24, but it is unlikely to drive growth in the coming quarter as tight monetary policy in the region is expected to restrain consumer spending.

“The persistent weakness in local currencies against the US dollar is likely to limit monetary easing options for Southeast Asian central banks.

“The strong US dollar, driven by the US Federal Reserve’s (Fed) high interest rates, prevents local central banks from cutting rates without risking further currency depreciation,” it stated.

The association noted that in Q1’24, Bank Indonesia was even forced to raise rates to arrest the rupiah’s decline.

“The ongoing tight monetary policy means that debt servicing and borrowing costs will remain high, likely constraining private consumption.

“Additionally, many consumers and businesses are continuing to consolidate as they are still recovering from the pandemic and are likely to focus on rebuilding savings or repairing their balance sheets in the short term,” it said.

On the ringgit, ICAEW noted that the Malaysian ringgit encountered significant challenges in Q1’24, largely attributed to the substantial discount of the Bank Negara Malaysia’s (BNM) policy rate relative to the US Federal Funds rate.

It opined that despite inflation remaining relatively low, hovering below 2% for the past six months and showing little indication of a significant increase, the currency weakness poses an obstacle to BNM’s ability to ease policy to support the economy. 

Source: Bernama

Malaysia to benefit from electronics sector recovery in second half of 2024: ICAEW

The automaker plans to debut the 1st model by year end 

NATIONAL car manufacturer, Perusahaan Otomobil Nasional Sdn Bhd (Proton), recently unveiled its first-ever venture into the electric vehicle (EV) brand with the all-new brand, Proton e.MAS, as well as the brand logo. 

On June 12, Proton invited The Malaysian Reserve (TMR) to this grand unveiling of its brand-new dive into the EV market, as well as the grand reveal of the new Proton logo for this sub-brand. 

Named “The Start of Something Elec- trifying”, the theme features mainly the direction that Proton is heading in the near future of 2024. Proton told the media on what Proton plans to achieve with its foray into the battery-EV (BEV) market. 

The unveiling began with a presentation by Proton CEO Li Chunrong, explaining Proton’s approach to the EV market, its expansion plans to expand and how it plan to accelerate the EV growth within the Malaysia market, as well as other advancements that Malaysia has made in the expansion into the EV industry. 

Li said it starts with developing a national BEV, acquiring advanced EV technology, which will boost EV adoption and finally nurture local EV talent. 

During his presentation, Li also shared some of the technological advancements they hope to make in Proton e.MAS. 

He said the new brand and what it produces are an extension of the values held at Proton which is innovative technology, reliability and internationalism. 

“This is the next step in the evolution of the company and in the coming months, there will be additional announcements to build brand recognition and product advocacy leading up to the launch of the first e.MAS EV in December this year,” he said. 

Some of these technologies include cell-to-body technology developed by Geely Auto, which is when battery cells are seamlessly integrated into the body or chassis of the car itself. 

Li said this allows for much more space efficiency and weight reduction, hence, enhanced performance. 

Furthermore, there will be a blade battery which increases safety, adds the lifespan and allows for faster EV charging, as well as the 11-in-1 Electric Drive which boasts a compact design, lighter weight and better thermal management. These sorts of technologies will be leveraged to boost the transition into EVs as well as offer more competitive prices to Malaysian customers. 

During the launch, Proton Edar CEO Roslan Abdullah said there would be at least 20 Proton outlets to be finalised in 2024. 

“Two in Sabah and Sarawak, 10 in the Selangor and Kuala Lumpur (KL) area, and another 12 across the Malaysian peninsula.” 

He also discussed how Proton can help with EV adoption in the Malaysian car market, which is by offering affordable prices for e.MAS to benefit the public as well as the government. 

“We noticed many EV cars that are in the market are priced well above RM100,000 and we are looking to select a suitable price range that is good for Proton, the public and the government,” he said. 

Gold Standard 

After the presentations, Proton unveiled the EV line, the corresponding logo of Proton e.MAS and its chief designer Azlan Othman delivered a speech breaking down the meaning and logo design of Proton e.MAS. 

“While its letters share the same spelling as the Malay word ‘emas’, the pronunciation for this EV brand is quite different as the ‘e’ stands for ‘electric’ and ‘MAS’ stands for Malaysia. Therefore, e.MAS is a symbol of Malaysia’s leadership towards providing electric mobility 

“This unconventional spelling and pronunciation are a deliberate choice,” Azlan said. 

Azlan added that the production of Malaysia’s first EV would be towards the end of 2024, with a design based on the Geely Galaxy E5. 

“In fact, Proton had held a contest before this unveiling where participants were asked to submit their guesses for the name of the Proton e.MAS. 

“A lot of the workers here guessed the new line would be called the Electron, perhaps to match with the proton and electron of an atom theme. 

“However, the name e.MAS carried a lot of meaning and layers to it, which gave a lot more depth to the design and name given. The contest had some hints as well such as showing the headlights and roof rails of the Geely Galaxy E5 in the teaser,” Azlan said. 

The carmakers also revealed its logo for the new EV, featuring a more minimalistic design of the tiger head. This new design represents an uncaged tiger head held high, a testament to its movement towards success. 

“The flattened, rather than the 3D format used, is in line with current design trends for EV brands that lean towards cleaner and less complicated graphics. 

“It carries the heritage and the pride symbolised in the tiger image. It evolved from the main brand logo featuring a flattering and clearer tiger image, which further allows for the logo to be recognised even at a distance in different conditions,” Azlan said. 

Proton said the first 17 EV dealers, who formalised their agreements during the ceremony, are ready to promote the EV. 

The set locations for these EV dealers will be nationwide with locations ranging from Kota Bharu to Georgetown to seven locations in the Selangor and KL area such as Cheras, Petaling Jaya and Rawang, and even a location in Kota Kinabalu, Sabah. 

Proton added that it aims to have 30 outlets in place by 2025, expanding the network further beyond that timeframe, if need be, and Roslan expects that the first EV model will debut around the same time. 

“We have not decided on the timeline, but the first model (will be launched) very soon. It could be early 2025, or earlier,” Roslan said. 

He said as the main arm of the vehicle dealership, Proton Edar would like to ensure the acceptance of Proton EV within the market. 

“Depending on public demand and acceptance, we could determine the volume and model lineup for future launches,” he said. 

EV Infra for Proton’s Future 

This concern is, in part, what Li said during his presentation. 

“With Proton being Malaysia’s premiere automotive brand, Proton must invest in EV infrastructure to help EV buyers instead of leaving them high and dry, and that infrastructure will need to be completed before we advance into the selling stage. 

“Therefore, when Proton e.MAS models go on sale, customers can be reassured that all their needs will be taken care of just like it would be for buyers of the current Proton range. 

“This is why Proton has been deliberate in its approach towards EVs, developing our knowledge base step by step to ensure we have a thorough understanding of the products, technology and user concerns before sales even begin,” he added. 

This name and logo have truly shown that Proton approaches its projects in a very thought-out and layered method. 

From the design of the name to the logo that symbolises Malaysian heritage, while also considering the affordability and the pioneering of Malaysia’s EV market via infrastructure investment shows their dedication and passion towards giving Malaysia the best EV it can manufacture. 

Overall, the event was very enjoyable and is a momentous occasion in the Malaysian EV market history as the first step to Malaysia’s advancement into this industry. Proton takes what they’ve learned and adds the Malaysian aspect where they can to make products that embody Malaysian progress. 

As part of Proton’s creed, “The spirit of Malaysian heritage in empowering better mobility for our future”, the national carmaker continues to develop itself. 

Source: The Malaysian Reserve

Proton e.MAS — Proton’s foray into the EVs market

More companies from China have expressed their intention to learn about the halal industry in Malaysia, said One Belt One Road Chamber of Commerce (OBORCC) president Datuk Seri Tan Thian Lai.

He said many companies in China’s food and beverage, pharmaceutical, and cosmetic industries are beginning to realise the importance of halal certification, and they view halal certification in Malaysia as one of the best in the world.

“They (the Chinese companies) see Malaysia as a country that places great emphasis on each product that it produces. To them, it is a good opportunity to learn more about these halal standards for their products,” he told Bernama today.

Tan said several countries are ready to invest in setting up preparation and packing facilities for halal goods in Malaysia.

“The halal market is extensive and is not limited to the 1.4 billion people in China alone because, of late, non-Muslim communities have come to understand the importance of halal (certification) on the products they use.

“Because of this, business partners from Guandong, Shanghai and Beijing have expressed their intentions to open their factories in Malaysia so that their halal products can be easily monitored by Jakim (Department of Islamic Development Malaysia),” he said.

In this regard, Tan hopes that the visit by the Prime Minister of China Li Qiang to Malaysia in conjunction with the 50th anniversary of Malaysia-China diplomatic ties beginning Tuesday (June 18) will benefit both countries in the effort to empower the global halal industry.

Malaysia’s Halal Certification, managed by Jakim, has gained international recognition for maintaining the top rank for 10 consecutive years for the halal food sector among 81 countries, as reported by State of the Global Islamic Economy 2023.

The global halal market is projected to reach US$9.71 trillion (US$1=RM4.69) by 2025, with countries like Malaysia expected to lead in the coming years.

In a special address at the Global Forum on Islamic Economics and Finance on May 28, Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the halal industry has proven to be one of the most competitive and rapidly growing sectors in the world, adding that such developments are also expected to be experienced by Islamic financial assets.

Source: Bernama

Chinese companies eager to learn from Malaysia’s halal industry

The Kerian Integrated Green Industrial Park (KIGIP), bordering Kerian district in Penang and Kedah, has been hailed as a strategically significant initiative by an expert.

Prominent economist Professor Tan Sri Dr Noor Azlan Ghazali said the strategic initiative gives him confidence that KIGIP will form a great northern Malaysia growth triangle; in Batu Kawan-Kulim-Kerian.

“It has the potential to attract high-value investments within the country and also from abroad,” he said in a Facebook post.

“This idea focuses on the green technology industry which is great for our country,” he wrote.

Prime Minister Datuk Seri Anwar Ibrahim launched the KIGIP Master Plan earlier today. Noor Azlan said the announcement marked a historic day for Kerian, the northwestern district of Perak.

Noor Azlan said Kerian district has crucial logistics infrastructure including twin railway tracks, three stations, and access via the PLUS highway at Bukit Merah, Alor Pongsu, and Bandar Bahru.

Meanwhile, Bayan Lepas has become a global hub for electronics and electrical industries, with its success now spreading to Batu Kawan Industrial Park (BKIP) and Kulim Hi-Tech Park.

“Bayan Lepas International Airport will be just 40-50 minutes away now that the Sultan Abdul Halim Muadzam Shah Bridge is being built, and the Penang port is nearby.

“KIGIP will add significant value to this existing infrastructure and complete a new industrial triangle focused on green technology in northern Malaysia,” he said.

Noor Azlan also said a thorough socio-economic study of Kerian is necessary.

“This study should assess the current situation and identify steps to ensure Kerian residents can fully participate in the opportunities created by KIGIP.” he said.

KIGIP is among the key initiatives that are in the New Industrial Master Plan 2030 (NIMP 2030) launched last year.

He said, it also fulfills the four key missions of NIMP 2030, namely; advancing economic sophistication, accelerating the adaptation of technology and digitization, driving net-zero carbon emissions, and ensuring economic security and inclusivity.

Noor Azlan also showed his appreciation towards Anwar and Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz for the idea of a new industrial zone.

Source: NST

KIGIP a strategic initiative, says prominent economist

The development of the Kerian Integrated Green Industrial Park (KIGIP) is set to offer attractive and high-quality career prospects for local talents in the surrounding area, said Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz.

Tengku Zafrul said that KIGIP will become a hub in northern Malaysia for nurturing talent and innovation, leveraging its strategic location near various high-level educational and technical and vocational education and training (TVET) institutions, as well as the Pusat Latihan Giat MARA.

“This strategic location will ensure an adequate supply of skilled graduates to fill skilled and high-value positions in KIGIP, prioritising and providing opportunities for skilled local workers to further develop,“ he said during his welcoming speech at the launching ceremony of the KIGIP Master Plan officiated by Prime Minister Datuk Seri Anwar Ibrahim here today.

Also present were Deputy Prime Minister Datuk Seri Fadillah Yusof, Perak Menteri Besar Datuk Seri Saarani Mohamad and Penang Chief Minister Chow Kon Yeow.

Tengku Zafrul highlighted that KIGIP is seen as complementing the spillover demand aligned with the rapid growth of industries in Penang and the Kulim High-Tech Park.

According to Tengku Zafrul, he believes that once KIGIP is fully operational, it will make a significant contribution to the country’s economic development.

“With its unique value proposition, KIGIP is not about competition, but rather complementing the existing industrial parks in its vicinity,“ he said.

Meanwhile, Saarani, in his address, noted that KIGIP, which will soon take root in the northern part of the state, will strengthen the industrial ecosystem in Perak.

He said that in the southern part of the state, the Automotive High Technology Valley (AHTV) is already established in Tanjong Malim, while on the west coast, there are the Lumut Maritime Industrial City (LuMIC) and the Perak Halal Industrial Park (Perak HIP), along with the Silver Valley Technology Park (SVTP) in Kinta.

“With a robust industrial ecosystem, we hope to bring abundant benefits to the people through the creation of new economic centres that provide employment opportunities, as well as spaces and opportunities for entrepreneurship and livelihoods,“ he said.

“The presence of KIGIP also brings along the construction of a new Water Treatment Plant (LRA), which will undoubtedly bring new hope to the residents, especially in the Kerian district, who have long suffered from water scarcity issues, including farmers who toil to cultivate agricultural lands,“ he added.

Source: Bernama

KIGIP offers attractive, quality career prospects – Tengku Zafrul

Malaysia’s largest car maker by sales, Perusahaan Otomobil Kedua Sdn Bhd (Perodua), plans to set up an East Coast regional hub for spare parts, taking advantage of the highly anticipated East Coast Rail Link (ECRL).

Its president and chief executive officer, Datuk Seri Zainal Abidin Ahmad, said the hub could likely be in Kuantan, Pahang, although other locations in the East Coast are also being considered.

“This will help our customers in the East Coast, not only with a vehicle hub but also a spare parts and pre-owned vehicle hub.

“Hence, there can be quite a big development there. As such, collaborations with the Malaysia Rail Link Sdn Bhd (MRL) and some parties in Pahang can help to create and spur economic development around the area,” he said during the panel session titled “East Coast Rail Link (ECRL): ECRL@Selangor – Economic Benefits & Opportunities” at the National Investment Seminar yesterday.

Earlier this week, Perodua inked a memorandum of understanding with MRL, the project owner of the 665-km ECRL, allowing it to leverage the rail network to transport cars from its plant in Serendah, Selangor to the East Coast, and Sabah and Sarawak.

The ECRL encompasses 20 passenger stations and 10 freight stations. A notable one is the Puncak Alam ECRL station in Selangor as pointed out by MRL head of strategy Mohd Zaidi Sharif.

He said a potential steel products distribution hub as well as the manufacturing of steel finished products may be established there.

“We will bring all the raw steel products from Kemaman and Kuantan to the Puncak Alam ECRL station for distribution to the Klang Valley area,” Mohd Zaidi said.

On this note, Zainal said the proposed steel hub at Puncak Alam could potentially help attract investments in auto-related steel based activities such as tools, moulds and dies which are a subset of stamping and injection moulding processes required by the local automotive industry.

“For the automotive industry, we manage to bring in vendors from Japan, China and South Korea to invest in Malaysia and set up joint ventures with our local vendors.

“However, the one thing that we are unable to do is to attract investments to make automotive-grade steel.

“During discussions with Japanese vendors, they said that while incentives from the Malaysian Investment Development Authority are important, a total logistics supply chain is also crucial.

“Hence, this is another area where some promotions can be done for the automotive industry, to bring investors to Puncak Alam so that they can invest in the steel industry, mainly on tools, moulds and dies for our stamping and injection moulding processes,” he said.

Zainal said “a lot of cost savings” are expected from transporting its cars, parts and components via the railway instead of by road.

Currently, Perodua moves its cars out of Port Klang to customers in Sabah and Sarawak via the Straits of Malacca. He also said the ECRL will help “regional integration” of the East Coast, Sabah and Sarawak with the West Coast.

“We used to transport our completely built-up (CBU) vehicles using trucks and lorries. However, this poses challenges not in regards to efficiency but safety.

“Efficient transportation infrastructure is a key factor in attracting investors. Currently, we do not have vendors in Sabah and Sarawak due to logistical difficulties.

“Most of them are also situated in Shah Alam and Penang.

“As such, with the ECRL, more suppliers will be able to come and invest in Pahang and Terengganu,” he said.

Domestically, Perodua has a 40% market share and it aims to increase this figure to 45% this year. It also plans to grow exports in the next few years.

“We want to increase our exports but we still have about 120,000 outstanding bookings to fulfill domestically. So we have to deliver those bookings first before we can export. Based on our plan, our exports are supposed to be about 10% of our total production requirement.

“Our production now supports 350,000 units, so we are looking at 35,000 units or so for export. We used to export to Sri Lanka but Sri Lanka is not accepting any CBU imports due to their economic circumstances.

“We have shipped our cars to African countries and we are looking at countries like Mozambique. In fact, we do not only export new cars but also used cars to Fiji and some other countries,” he said.

The ECRL railway line from Kota Baru to the Gombak Integrated Terminal is projected to finish construction by December 2026 and become operational starting January 2027.

Similarly, the alignment extending from Gombak to Port Klang is slated to be completed by December 2027, with full operations expected to begin from January 2028 onwards.

Mohd Zaidi said the project is progressing according to plan and is targeted to be completed slightly ahead of schedule.

“Those familiar with the construction industry understand that a project of this scale and size, a 665-km linear project, involves more than 1,400 construction sites, is a mega challenge to keep on track,” he said.

Source: The Star

Perodua plans East Coast spare parts hub

Sarawak’s bold investment in hydrogen-powered public transportation is expected to generate tremendous spillover into the local economy, said international and local renewable energy industry players.

They said the rolling out of hydrogen-powered vehicles such as the autonomous rapid transit (ART) system and buses, along with the establishment of hydrogen refuelling stations, would position Sarawak as a regional hydrogen power hub.

“I think Sarawak is a fascinating prospect for hydrogen. It’s excellent. I mean it’s great to see a lot of green energy, also with hydropower but you (Sarawak) have got the prospect here of manufacturing in a green way too,” said Dr Michaela Kendall, a green energy expert from the United Kingdom.

She spoke to The Borneo Post when met during a technical visit to Petroleum Sarawak Berhad’s (Petros) multi-fuel station at Darul Hana, and to Sarawak Metro’s ART assembly facility, here yesterday.

Kendall was one of the participants at the three-day Asia Pacific Green Hydrogen (APGH)

Conference and Exhibition 2024 at Borneo Convention Centre Kuching, which ended Wednesday.

The conference brought together 611 delegates, 72 speakers and presenters, and 96 participating companies from more than 19 nations.

Describing the visits as insightful, Kendall said the move by the Sarawak government to tap the field would leverage its potential and exponential growth within the hydrogen ecosystem once the technology becomes commercially viable in the future.

“The exciting thing here is, this is the first time I’ve been on a fully electrified autonomous vehicle, so it’s a hydrogenelectrified autonomous vehicle. I can see that the system is good.

“I can see and understand the technology because I know the providers of the fuel cells. Also, I’ve seen the hydrogen refuelling station, which is great,” she said.

Kendall also expressed her interest in exploring the hydrogen market in Sarawak, adding that her company produces green energy technology and is now looking for a place to manufacture its technology.

“Also with hydropower, you’ve got the prospect of manufacturing in a green way too. So we would like to manufacture our solar oxide fuel cells using green energy.

“We have a green product and we want to use green energy to produce it. Sarawak offers a very good option for manufacturing, so this is the future technology.”

Agreeing with Kendall was Dr Nuttapong Hariwongsanupab from Thailand, who leads the hydrogen business development team of PTT Public Company Limited Thailand.

He said yesterday’s visits provided deep insights in developing hydrogen’s ecosystem.

He said the hydrogen-powered ART would leverage Sarawak holding the highest prospect in hydrogen market throughout Southeast Asia “During the ART visit, we gained deep knowledge about the tram. We discussed this as well and went into detail on how they gather the hydrogen, how they fill it, and how to put it inside.

“To me, the ART is the very most promising one is Sarawak, even in Southeast Asia, because this is the first time that I have seen the tram which has already run in the last few months,” he said.

Meanwhile, Swagelok Malaysia service manager Mohd Hafifi Ismail said Sarawak’s hydrogen development would open up more opportunities to local entities and the economy.

He said while it may be a while before the local hydrogen export market picks up, he foresees tremendous positive spoil effects from the green hydrogen investments in the near term, as many local energy industry players including Swagelok are eager to explore Sarawak’s hydrogen development.

“I think it’s a great development and business opportunity, especially on this new hydrogen development. It’s a great opportunity for local companies like us, Swagelok.

“It also opens up more opportunities in terms of supplying and supporting local development, especially on hydrogen production as well as fuel cells.

“On top of that, it will be a great opportunity in terms of skills and manpower that can be further developed by the people here. This definitely will bring a great opportunity to build up Sarawak in terms of infrastructure as well as facilities,” he said.

Source: Borneo Post

Investment in hydrogen to generate spillover into Sarawak’s economy, say industry players

Careplus Group Bhd (KL:CAREPLS) plans to raise up to RM10.57 million through a private placement to finance the construction of a manufacturing hub in Negeri Sembilan for its electric vehicle business.

In a bourse filing, the glove maker said the exercise entails the issuance of 63.31 million new shares, equivalent to 9.04% of its total number of issued shares.

Of this, about 25 million new shares, representing 3.57% of the company’s total number of issued shares, will be allocated to Ten Sang, a Seremban-based contractor responsible for the structural and infrastructure components of the manufacturing hub. The remaining new shares will be offered to third-party investors to be identified at a later date.

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“However, in an event Ten Sang does not take up the 25 million placement shares, the expected gross proceeds to be raised from the proposed private placement is approximately RM17.47 million and the total gross proceeds raised will be channelled towards the NEV (new energy vehicle) manufacturing hub,” the company said.

Careplus said the assumed price for the placement shares is 27.60 sen per share, representing a discount of about 9.95% over Careplus’ five-day volume weighted average market price of 30.65 sen up to June 7, the latest practicable date.

The proposed private placement is anticipated to conclude by the end of 2024, according to the loss-making company.

The NEV manufacturing hub, situated in Chembong, Rembau, is slated for completion by 2028.

Once operational, the hub aims to have an annual capacity of 30,000 vehicles, with one-third dedicated to assembling NETA models through the joint venture (JV) between Careplus and Intro Synergy Sdn Bhd, a subsidiary of Go Auto Group Sdn Bhd.

In January, Careplus announced that the JV company has been tasked with constructing the RM600 million green technology facility for the manufacture and assembly of NEVs in Chembong.

At end-March, Careplus had RM22.96 million cash and bank balances against RM52.41 million total borrowings.

Shares of Careplus rose two sen or 6.56% to close at 32.5 sen on Thursday, valuing the company at RM227.68 million.

Source: The Edge Malaysia

Careplus to raise up to RM10.6 mil via private placement to fund EV manufacturing hub

Sarawak’s tenacious spirit in pushing boundaries in hydrogen technology and carbon management has propelled progress in pioneering clean energy, said Datuk Seri Fadillah Yusof.

The Deputy Prime Minister said this was particularly evident in hydrogen innovation through the state’s electrolyser and membrane technologies collaborations.

“Blessed with abundant hydropower and natural gas resources, Sarawak has seized the opportunity to emerge as a regional leader by leveraging its unique advantages,” he said in his special address for the Asia Pacific Green Hydrogen (APGH) 2024 Conference and Exhibition closing ceremony here today.

He said the state has positioned itself as a trailblazer in the hydrogen economy and cited Sarawak Energy Berhad’s launch of Southeast Asia’s first integrated hydrogen production plant and refuelling station.

“Powered by renewable hydropower, this facility not only produces hydrogen through electrolysis but also facilitates hydrogen-powered vehicles, fostering emissions reduction and sustainable urban mobility.

“Furthermore, Sarawak’s proactive stance in exploring hydrogen as a potential export commodity underscores its prominence in the regional clean energy landscape.

“Collaborations with international partners in research, technology exchange, market development and subsequently embarking in building large scale production facilities fortifies its leadership position in this space,” he said.

Fadillah said he is confident Sarawak’s success will inspire other states and drive advancement nationwide.

“With its forward-looking clean energy initiatives, Sarawak exemplifies sustainable development, showcasing the harmony between economic growth and environmental stewardship,” he said.

The Energy Transition and Water Transformation Minister pointed out hydrogen is recognised as one of the key levers of the National Energy Transition Roadmap (NETR) and plays a pivotal role in Malaysia’s energy transition strategy.

“Under the NETR, we aim to elevate our renewable energy capacity mix from 40 per cent in 2035 to an ambitious 70 per cent by 2050. This entails upscaling solar, hydro, and other renewables programmes while phasing out coal generated power.

“Moreover, reforms in the power sector are realigned in facilitating third-party access to the grid and cross-border renewable energy trade,” he said.

As such, he said strong government support for the hydrogen economy is crucial and is evident in the recently launched Hydrogen Economy and Technology Roadmap, which aims to position Malaysia as a leading hydrogen economy by 2050.

“The roadmap addresses key challenges across the hydrogen value chain, emphasising governance, technology commercialisation, and human capital development in driving this agenda,” he said.

In recognising hydrogen’s potential to revolutionise multiple sectors, he said the government will prioritise an innovation-friendly environment through financial support, incentives for hydrogen technology adoption, and multiple stakeholder collaboration.

“We are also mindful of infrastructure development and investments which are crucial for widespread hydrogen adoption and utilisation, encompassing refuelling stations for hydrogen-powered vehicles and integration of hydrogen into existing industrial processes in reducing carbon emissions.

“Our vision extends to positioning ourselves in the region as a leader in hydrogen technology and innovation by supporting research and development and nurturing an ecosystem conducive to idea generation and business growth,” he said.

In this regard, he said the federal government reaffirmed its unwavering commitment to harnessing hydrogen power for a sustainable future, through investment, incentives, infrastructure development, innovation, and collaboration in paving the way for a hydrogen economy, which is beneficial for everyone in mitigating climate change.

Among those present were Deputy Energy and Environmental Sustainability Minister Datuk Dr Hazland Abang Hipni; Deputy International Trade, Industry and Investment Minister Datuk Dr Malcolm Mussen Lamoh; Sarawak Economic Development Corporation chairman Tan Sri Datuk Amar Abdul Aziz Husain; and Borneo Business Connect chairman Tan Sri Asmat Kamaludin.

Source: Borneo Post

Fadillah: Sarawak a trailblazer in hydrogen economy, pushing clean energy boundaries

The sustainable design approach, which emphasises the use of recycled materials and environmentally friendly technologies, needs to become the primary agenda of the country’s manufacturing industry.

This is to reduce negative impacts on the environment and ensure the preservation of natural resources for future generations, said Investment, Trade, and Industry (MITI) Minister Tengku Datuk Seri Zafrul Abdul Aziz.

In a speech read by MITI deputy secretary-general (Management and Investment), Datuk Bahria Mohd Tamil at the Malaysia Good Design Award 2023/2024 here today, he said that the National Energy Transition Roadmap is among the government’s initiatives to create new sustainable-oriented business opportunities.

This initiative focuses on the use of sustainable and efficient energy, as well as carbon reduction, which is crucial in combating climate change and promoting sustainable development.

He added that the MADANI Government’s main focus this year is to further accelerate the country’s economic growth by prioritising efforts to attract both domestic and foreign investors to invest in Malaysia.

“To this end, various initiatives are being intensified to strengthen investment infrastructure so that Malaysia becomes a leading global investment destination,” he said.

Tengku Zafrul also said that the government strongly encourages the use of artificial intelligence (AI) in all manufacturing industries in Malaysia to provide significant competitive advantages, create new economic opportunities, and improve the quality of life for the people.

“The government believes that a country that masters this technology will lead in global innovation and set new standards in technological development.

“In the design sector, AI applications have transformed the way designers work. It is now used to automate repetitive design tasks or generate complex visual innovations,“ he said.

Tengku Zafrul noted that this technology enables designers to explore various design options more efficiently, simulate usage scenarios, and provide personalised solutions to meet customer needs more accurately, saving time and increasing productivity.

Source: Bernama

Sustainable design should be manufacturing industry’s main agenda – Tengku Zafrul

Negeri Sembilan’s Halal Malaysia Industrial Park (HALMAS) has received an encouraging response, including a recent request from a New Zealand pharmaceutical company expected to invest RM300 million in the state, said Negeri Sembilan Menteri Besar, Datuk Seri Aminuddin Harun.

“Halal Park in this state is one of the most highly sought-after. I just returned from New Zealand, where a pharmaceutical company is committed to investing and obtaining a halal certificate,“ he told reporters after chairing the state government’s EXCO meeting.

Aminuddin said the state’s HALMAS has attracted several major investors, including Mahsuri Food Sdn Bhd, Ajinomoto (M) Bhd from Japan, Sunshine Bread (M) Sdn Bhd from Singapore, Coca-Cola Bottlers (M) Sdn Bhd and Kellogg’s Malaysia (United States), particularly in Bandar Enstek, Nilai.

“The demand for halal investment is high. There are no new industrial areas and the development of the Techpark@Enstek Phase 3 in Bandar Enstek is almost sold out,” he said.

Aminuddin added that the state government is working to enhance the halal industry among small and medium enterprises to improve the quality of local products.

Deputy Prime Minister, Datuk Seri Dr Ahmad Zahid Ahmad Hamidi, previously reported that the utilisation and development of the 14 Halal Parks across the country remain low, at 11 per cent of the total 5,484 hectares developed so far.

In another development, Aminuddin said that the construction of the Institute of NeuroScience (INS) in Pedas, Rembau which was announced in 2019, had been cancelled due to the COVID-19 pandemic.

Earlier, the media reported that the private medical centre, costing RM1.02 billion, was expected to offer neuro-related health services and generate a development value of RM1.7 billion within five years.

Source: Bernama

New Zealand pharma firm to invest RM300 million in Negeri Sembilan – Aminuddin

THE National Semiconductor Strategy (NSS) announced during the recent widely attended SEMICON South-East Asia 2024, is a step in the right direction.

But visibly absent in the plan is one element which the sector needs — the acknowledgement that Malaysia cannot move up the sector’s value chain without putting out the red carpet to attract foreign engineering talent into the country.

As industry veteran Datuk Seri Wong Siew Hai has been saying for a while now, there just aren’t enough high quality engineers being produced by our education system.

In Malaysia now, the problem has been exacerbated by the spike in foreign investment of companies in the semiconductor ecosystem coming here to set up shop.

The problem is a global one. And the global players are doing just that. In countries like the US and Singapore, foreign engineers are brought in and offered residence after proving themselves.

Instead, the NSS has a big goal of steering the country towards producing 60,000 high skilled engineers. It is unclear how that is going to be achieved.

As part of the NSS, some other big goals were set — for Malaysia to become “a global R&D hub for semiconductors, featuring world-class universities, corporate R&D, and centres of excellence”.

These are great targets but they sound like they will take some time to develop. Such moves also cannot be achieved without opening our doors to foreign talent in a big way.

There is a general reluctance by the government to provide work permits for foreign workers in high skilled jobs, let alone issuing such workers with residency status.

The fear has been that opening up in that way would deprive Malaysians of jobs but as industry officials have often voiced out, by bringing in one good engineer, more local jobs will be created as a spillover effect of the success of that firm.

Another key aspect of the NSS is for an allocation of a whopping RM25bil to boost the sector. Details of that are yet to be known and are being worked out by the Ministry of Investment, Trade and Industry.

One thing that the government ought to stay away from is in trying to create another government-owned wafer fabrication company. Billions of ringgit went into this attempt in the past and it proved to be a massive bet gone wrong, with a huge amount of the investment written off by the government.

The two wafer fabs were Silterra and 1st Silicon. They still exist but in a smaller form and with ownership transferred to private hands, at a huge discount compared to the investment poured in by the government.

Instead, if money is going to be spent, it should go towards subsidising integrated circuit (IC) design houses.

The NSS envisages the creation of more IC design and advanced packaging companies in Malaysia, which are correct targets to have as these companies are higher up the value chain, make more profits with better margins and entail the creation of intellectual property.

But IC design houses are costly enterprises. Software and hardware tools, coupled with prototyping and salary costs of design engineers can go into the tens of millions of ringgit.

China plays this game by providing subsidies for every step along the journey of the IC design house. They also subsidise the salaries of foreign talent in the form of senior engineers who the IC design house is able to recruit.

This is a good way for Malaysia to spend RM25bil, rather than trying to set up any government-owned entity to run a business. Most of such enterprises in the past have failed to deliver on what they were set up to do.

The NSS is a step in the right direction. The semiconductor industry in Malaysia is one that Malaysia is proud of, and one that we should be banking on for further growth.

The catch is, many other governments have realised the importance of the sector and are ramping up their own national plans.

India and Vietnam are good examples. Not to mention that semiconductors form the basis of the trade and political tussles between the US and China.

Incidentally, Malaysia remains a big beneficiary of the trade war as we have become a bridge between the two countries. Setting up a production house here in Malaysia circumvents trade sanctions plus reduces supply chain risks.

But the NSS also needs to be more than just a good big picture plan. It needs to help push facilitative initiatives such as fast-tracking the hiring of foreign engineers and reducing red tape in the creation of more enterprises in the sector.

Despite failed attempts at nudging our semiconductor industry higher up the value chain, it is not too late to try again.

Source: The Star

Another big semiconductor push

US-based MKS Instruments, Inc said on Tuesday that it plans to build a factory in Penang to support wafer fabrication equipment production in the region and globally.

MKS, which makes instruments, subsystems, systems, and process control products, will construct the new facility in three phases, the Malaysian Investment Development Authority (Mida) said in a statement. Groundbreaking is expected to commence in early 2025, the state agency noted.

Financial details of the project were not disclosed.

“This new facility highlights Malaysia’s attractiveness as a strategic hub for innovation and manufacturing, reflecting the company’s confidence in our highly skilled workforce and favourable business environment,” said Mida chief executive officer Sikh Shamsul Ibrahim Sikh Abdul Majid.

Penang is home to a strong semiconductor ecosystem with close proximity to MKS’ customers and suppliers and robust technology infrastructure, Dr John TC Lee, chief executive officer of MKS, said in the same statement.

“Expanding our business in Malaysia is an important milestone for our company, as we seek to continue to enhance our capabilities as a leader across a broad array of semiconductor manufacturing applications,” he said.

Source: The Edge Malaysia

US-based MKS Instruments to build a factory in Penang