AHTV is expected to attract investments worth RM32b over the next 10 years 

THE Automotive High Technology Valley (AHTV) project, which is expected to begin this year, requires detailed planning and strong commitment from the relevant parties, including the local authority, Tanjong Malim District Council (MDTM), as the host. 

The project, aimed at developing the national automotive city, is led by China’s automotive giant, Zhejiang Geely Holding Group Co Ltd, along with Malaysian diversified group, DRB-Hicom Bhd. 

According to the Malaysian Investment Development Authority (MIDA), AHTV is expected to attract investments worth RM32 billion over the next 10 years, with this initiative projected to rejuvenate Malaysia’s automotive industry. 

AHTV, which will be developed in Proton City, is set to emerge as a hub for high-tech automotive component research and development, and will propel Malay- sia to become a regional leader in the production of next-generation vehicles (NxGV). 

Furthermore, according to MIDA, the project also includes the establishment of a research university that will help enhance the capabilities of Malaysia’s automotive sector workforce ensuring that Malaysia remains competitive in the global automotive market. 

Preparations 

Sharing his insights on the project with Bernama, MDTM president Mohd Ikram Ahmad said the town already has the necessary foundation to support the development of AHTV, provided through the implementation of the Muallim District Local Plan (RTD) 2035. 

He said RTD Muallim 2035’s main vision, National Automotive Gateway and Youth-Friendly, forms the basis for MDTM’s planning and development governance. This is to ensure that the national-level policies and strategies can be realised based on four pillars: A competitive, dynamic and high-value economy; an inclusive and liveable living environment; a green corridor and sustainable ecosystem; and efficient and sustainable connectivity and infrastructure, he added. “There are 22 strategies and 130 actions identified for implementation in RTD Muallim 2035, involving three main sub-districts, namely Hulu Bernam Timur, Hulu Bernam Barat and Slim.

“The development concept is targeted at focus zones and potential urban development, conservation and preservation zones, as well as agropolitan zones,” he said. 

He added that there are three main industrial focus areas under MDTM’s administration, namely Proton City Industrial Area, Kota Malim Prima Industrial Area and Bandar Behrang Industrial Area 2020. 

Housing 

Mohd Ikram said due to the rapid development and Muallim’s location bordering Selangor, there has been a sudden increase in population recently, creating a high demand for housing. 

This, he added, is attributed to the gradual relocation of Proton Shah Alam factory workers to Tanjong Malim and the growing number of students at Universiti Pendidikan Sultan Idris (UPSI), which currently has around 25,000 students. 

“This situation has triggered demand for housing. As such, many housing areas have been approved by MDTM, involving nearly 3,000 affordable housing units by 2025. 

“Based on MDTM’s basic data, as of September 2023, a total of 13,143 housing units have been built in the Muallim district, in addition to 2,634 units under construction and 4,169 units approved,” he said. 

Mohd Ikram said RTD Muallim 2035 has forecast the district’s population to be around 158,000 by 2035, with housing needs of about 33,000 units. 

Similarly, several development projects are underway in the district, including the Jalan Maktab 

Mixed Development Project, Bukit Wangsa Setia Housing in Behrang Sentral, Proton City Housing, Civil Servant Housing Project, Taman Wira Housing and Bandar Behrang 2020 Housing. 

He said efforts to provide better facilities and infrastructure are also being undertaken to attract investors while ensuring residents’ comfort. 

“This includes the provision of road facilities, telecommunications, water supply, electricity, and most importantly, gas pipelines, which are a crucial utility for the industrial sector. 

“MTDM in collaboration with all parties will assist in driving development in the Muallim district, especially towards encouraging industry players to become more inclusive, in line with the nation’s aspiration to make Tanjong Malim a global automotive hub in the future,” he said. 

Growth of the Commercial Sector

According to Mohd Ikram, the Muallim district is also witnessing growth in the commercial sector with the construction of a supermarket in Tanjong Malim and Behrang Sentral. 

“Several proposals involving commercial development and a private hospital are still under discussion in the Mukim Hulu Bernam Timur area,” he added. 

In this regard, the establishment of AHTV will further stimulate the growth of the district, which will benefit the locals, in particular. 

As such, he said, the community also needs to be prepared to embrace change in tandem with the developments taking place from AHTV’s presence. 

At the same time, he said AHTV would not succeed without the assistance and cooperation of all parties involved. 

“This administration (MDTM) is always ready to realise the policies from the state and federal governments. MDTM aims to upgrade to municipal status (Tanjong Malim Municipal Council) within five years,” he said. 

Not A Ghost Town 

Dismissing the general notion that Tanjong Malim is a ghost town, that is, a sleepy town with few residents, Mohd Ikram said this is not true because the presence of UPSI (originally known as Sultan Idris Training College) since its inception in 1922, has attracted many students across the nation. 

“Additionally, we have the Proton factory, which opened and began operations in Proton City, Tanjong Malim, in November 2003. Since then, the factory has generated substantial spin-offs in the surrounding areas, such as new housing schemes, commercial and industrial buildings, and recreational parks. 

“There are many other factors that make Tanjong Malim a popular destination among visitors across the nation and abroad, including unique gastronomy like its famous pau, ecotourism as well as adventure activities like white water rafting and mountain climbing,” he said.

Source: Bernama

Meticulous planning completes Tg Malim as the national automotive city

MAMEE Double Decker (M) Sdn Bhd, a stalwart in the Malaysian food industry for over five decades, has doubled its business revenue and profit in five years. 

Third-generation CEO Pang Hee Ta shared insights into the company’s growth and evolving business strategies. 

Founded in 1971, Mamee had built a substantial annual revenue of RM780 million by 2019. The Melaka-based brand is currently the leading Malaysian brand for instant noodles and noodle snacks. 

“From 2019 to 2023, Mamee managed to double the business in both revenue and profit, so we can get the same sales that we took 48 years to build,” Pang told The Malaysian Reserve (TMR) in an exclusive interview. 

Now standing at RM1.5 billion in revenue, Mamee aims to double its revenue to RM3 billion within the next five years, driven by its expanding presence in global markets. 

One of the pivotal strategies that contributed to this exponential growth was a transformation in Mamee’s business model, particularly regarding its global expansion approach. 

Traditionally, Mamee, like many other companies, participated in trade shows to attract international buyers, yet Pang found that this method proved unsustainable. 

“So, what we did was to travel to Europe and the US predominantly to look for local partners who had established networks and relationships with major retailers there. 

“We operate as a single unit. They handle the front-end sales, while we manage the back-end manufacturing. We’re all in the same boat, working together seamlessly,” Pang said. 

This partnership allowed Mamee to understand better and cater to local consumer demands, leading to significant growth in the US and European markets. 

Driving Sustainability with Premium Healthier Products

In response to evolving consumer preferences, particularly among millennials, Mamee has shifted its focus towards sustainability and better-for-you products. 

Better-for-you products refer to healthier items that are low in fat, salt, and sugar but high in fibre, minerals and vitamins. The term has also evolved to include specific categories such as lactose-free, plant-based, vegan, organic and low-calorie options. 

Influenced by greater Internet exposure and higher disposable incomes, millennials sought more than just good quality at a low price. 

This demographic shift has pushed Mamee to innovate beyond traditional snack offerings. 

Pang noted that modern high-value companies are the ones that can sell an emotion on top of a physical delivery, highlighting the need for brands to connect with consumers on an emotional level. 

This insight led Mamee to invest in better-for-you products that meet the growing demand for healthier food options. 

In 2020, Mamee has partnered with the US-based Good Crisp Co, a brand known for its gluten-free, non-genetically modified organism (GMO) products made with a variety of healthier ingredients. 

Another value Mamee added to ensure it delivers more than just physical products is by investing in start-ups and leveraging their production capabilities to streamline its supply chain. 

By doing so, costs are lowered, allowing Mamee to channel resources into improving product quality. 

“Young start-ups are also very good at understanding consumers, and they are able to innovate at a very fast pace,” Pang added. 

Pang said every month, Mamee ships about 50 containers to the US for Good Crisp’s product alone. 

Mamee also invested in The Golden Duck Co, a Singaporean company popular for its innovative snack offerings. 

These collaborations allowed Mamee to tap into niche markets and cater to diverse consumer needs across different regions. 

The company’s transformation is not just about adopting new strategies but also about building on its strong foundations. 

Over the years, Mamee has built a reputation for offering high-quality products at affordable prices, a winning formula that has fuelled its success for decades. 

“Back in my grandfather’s era, commodity companies were at the top, but nowadays, to be a leading company, it’s not just about selling the product effectively; you must offer added value,” Pang said. 

Therefore, he believes the company needed to balance maintaining its legacy of affordability with its new focus on premium products. 

“We don’t want Mamee or any other Malaysian company to be just known for good products at affordable prices, but to also be the leaders in the better-for-you nutritional food segment as well.” 

This dual approach ensures that Mamee remains competitive in both the mass-market and premium segments. 

Mamee’s journey towards global recognition was marked by a keen understanding of modern consumer needs and market dynamics. 

The company aspired to be a leader in meeting future consumer demands through three core areas; sustainability, better-for-you products and premium indulgence. 

Mamee is committed to sustainability, with significant investments in environmentally friendly practices like utilising fully recyclable packaging, adopting clean energy sources like solar and natural gas, and implementing rainwater harvesting in its factories. 

These efforts are crucial in addressing the concerns of environment-conscious consumers, especially in markets like the US, where questions about carbon footprint and environmental impact are increasingly prevalent.

“We want to be known as leaders in understanding the future needs or what the modern consumer wants. 

“The modern consumer’s preference for healthier options has driven Mamee to innovate with products that are free from flavour enhancer monosodium glutamate, gluten and GMOs,” Pang said.

A prime example is The Good Crisp, which produces potato chips and cheese ball snacks without artificial additives and has grown significantly, reflecting the rising demand for healthier snack alternatives.

By grasping the premium market segment, the company can leverage its manufacturing capabilities to produce both mass-market and premium products, optimising efficiency and expanding market reach. 

“We can effectively compete in both the masses and the premium market if we build the right capabilities behind it,” he added. 

Addressing Supply Chain, Sustainability Challenges

Mamee’s expansion has also necessitated a strong approach to managing supply chain complexities and disruptions. 

Its strategy revolved around three key pillars — technological integration, diversified sourcing and localised production. 

Upgrading to advanced systems like systems applications and products helped Mamee to manage the intricate logistics of sourcing and production. 

This would reduce human error and enhance efficiency in tracking and replenishing raw materials. 

Pang said by diversifying its sources of raw materials, Mamee mitigated risks associated with geopolitical instability and supply chain disruptions. 

For example, he said sourcing potatoes from India, which is geographically closer to Malaysia, helps in reducing logistical challenges and potential supply shortages. 

“Diversification of supply sourcing, as well as using technology, will be the core areas that we focus on,” he added. 

To further streamline operations and reduce carbon emissions, Mamee plans to establish factories in Mexico and Spain by 2026. 

These facilities would serve regional markets in North America, South America and Europe, thus reducing the need for extensive shipping from Malaysia and minimising the environmental impact. 

The government through the Investment, Trade and Industry Ministry and agencies such as Malaysian Investment Development Authority have also worked with Mamee to push the company to the global stage. 

Additionally, Mamee’s commitment to environmental, social and governance principles is integral to its operations. 

The company prioritises sustainable practices not just to comply with regulatory requirements but because it believes in doing what is right. 

Pang said Mamee is currently working towards making its packaging fully recyclable, expected to be achieved by 2025 or 2026. 

Mamee is also deeply involved in local community initiatives. In Melaka, the company collaborated with the state government to provide free dialysis treatment through Yayasan Toh Puan Zurina. 

Additionally, Mamee invested in improving living conditions for its employees and partnered with local universities for industrial training programs. 

“We put a lot of effort into ensuring that our people are taken care of,” Pang said. 

Future Outlook 

Looking ahead, Mamee aims to continue its growth trajectory by further enhancing its brand and product offerings. 

“Ultimately, we realised that if we continue to focus only on pricing and quality, we will become a commoditised business,” Pang said. 

The company plans to build capabilities around consumer understanding, innovation and brand building to stay relevant and competitive in the future. 

Source: The Malaysian Rerserve

Mamee stands strong after 5 decades

In an era defined by climate crisis and environmental urgency, industries worldwide are under pressure to adapt and innovate towards sustainable practices.

Among these, the semiconductor industry, a cornerstone of global technological advancement, finds itself at the nexus of growth and environmental responsibility.

The global semiconductor industry, renowned for its critical role in powering modern technology, finds itself at a critical juncture.

Amid rapid growth and technological advancements, sustainability concerns loom large, prompting industry leaders to reassess priorities and strategies.

In a bid to champion sustainability within the semiconductor sector, Schneider Electric, a global leader in energy management and industrial automation, has embarked on a proactive initiative to revolutionise the industry’s approach towards environmental stewardship.

In a recent exclusive interview with Bernama, vice president of semiconductors Henri Berthe outlined the company’s pivotal role in supporting semiconductor giants worldwide in building and operating their facilities while emphasising the importance of sustainability.

“As leaders in energy management, we play a crucial role in optimising electrical architecture across various domains, including semiconductors.

“Additionally, our expertise in industrial automation enables us to streamline processes and enhance efficiency,” he said.

In recent years, Schneider Electric has expanded its focus to include software development and sustainability, recognising the industry’s shift towards digitalisation and environmental consciousness.

“With acquisitions like Aveva, a leading industrial software company, we are driving innovation in software solutions tailored for Industry 4.0.

“Similarly, our commitment to sustainability positions us as a global leader in helping companies achieve their net-zero emissions goals,” Berthe said.

SUSTAINABILITY URGENCY

Highlighting the urgency of sustainability in the semiconductor industry, Berthe underscored the pressing need for accelerated decarbonisation efforts amid escalating climate change concerns.

“The semiconductor industry emits approximately 100 million tons of carbon dioxide in 2021, presenting a significant challenge to reconcile growth with environmental responsibility.

“With the industry poised to double in value to US$1 trillion within a decade, the challenge of reconciling growth with sustainability becomes increasingly urgent,” he said.

Despite ambitious commitments from industry players, including renowned companies like Intel, challenges loom large, he said.

“Rapid industry growth, coupled with technological advancements demanding increased energy consumption, presents a formidable obstacle to sustainability efforts,” he said.

He said sustainable growth must be balanced with accelerating the path to net zero.

“Despite the industry’s commitment to sustainability, challenges such as the shortage of skilled talent and the rapid technological advancements remain significant hurdles.

“In response to these challenges, Schneider Electric is pioneering innovative solutions, with a particular emphasis on digitisation and energy efficiency,” he said.

Berthe outlined the company’s strategy, which includes helping companies strategise, set emission targets, and accelerate their path to net zero through digitisation and renewable energy adoption.

“Energy efficiency is paramount, particularly in East Asia, where access to renewable energy remains a pivotal concern,” he said.

Digitisation has emerged as a crucial tool in reducing environmental impact. With data analysis and artificial intelligence (AI)-driven solutions, digitisation offers avenues for energy efficiency improvements.

It can also optimise energy usage and streamline supply chain operations, minimising environmental impact, he said.

COLLABORATIVE EFFORT

Addressing talent shortages in the industry, Berthe highlighted collaborative efforts (are needed) to nurture software development expertise, ensuring a steady influx of skilled professionals to propel
sustainability initiatives forward.

He also addressed concerns surrounding semiconductor shortages, expressing cautious optimism about the industry’s ability to meet growing demand while maintaining a sustainable trajectory.

With Malaysia emerging as a key semiconductor hub, Berthe commended the nation’s strides towards sustainability and urged a steadfast commitment from stakeholders to realise its full potential.

“With the Malaysian Prime Minister’s pledge towards a national semiconductor strategy, the country stands poised to contribute significantly to global sustainability efforts.

“It is timely and essential to capitalise on future growth opportunities,” he added.

As the world races against time to combat climate change, the semiconductor industry’s journey towards sustainability takes centre stage, Berthe said.

“Collaboration, innovation, and commitment are the hallmarks of this endeavour, with Schneider Electric and other industry leaders leading the charge towards a greener future.

“Companies need to seize the available solutions and technology to pave the way for a greener, more sustainable future.” he said.

He expressed confidence in Malaysia’s ability to leverage its competencies and government support to drive further growth in the sector.

Technology intersecting with sustainability in the semiconductor industry represents not just a challenge but a global imperative, he said.

“Only through concerted efforts and collective action can the industry steer towards a more sustainable path, ensuring a brighter and greener tomorrow for generations to come,” he added.

Schneider Electric’s unwavering commitment to sustainability stands as a beacon of hope for the semiconductor industry, heralding a new era of environmentally conscious innovation and growth, he stressed.

In conclusion, Berthe emphasised the need for a collaborative ecosystem and strategic partnerships to drive sustainability in the semiconductor industry.

He urged companies to seize the available solutions and technology to pave the way for a greener, more sustainable future.

Source: Bernama

Schneider Electric spearheads sustainability drive in semiconductor industry

There needs to be a new paradigm shift in the manufacturing sector to get more local people to work in the industry, says Liew Chin Tong.

The Deputy Investment, Trade and Industry Minister said there needs to be a new mindset so that more Malaysians can be hired to work in the sector.

“If companies can pay more or give comparable salaries, it will make workers feel that they have prospects.

“(Companies should) Give better salaries so that they (Malaysians) don’t work in Singapore,” he said after attending an e-invoicing and New Industrial Master Plan (NIMP) 2030 awareness programme at Casuarina@Meru Hotel here on Saturday (June 8).

“Instead of paying 100 unskilled foreign workers, we want (companies) to pay 20 or 30 Malaysian skilled workers well.

“To do this, companies will need better machines and capitalisation. This is what we hope to do and deal with,” he said.

“We want better jobs and better pay for Malaysians,” he added.

Liew said the government also hopes to see more localisation of foreign direct investment (FDI) so that it can benefit small medium enterprises (SMEs).

“This is also what we will deal with, to help the FDI localise so that local SMEs will have more opportunities and businesses,” he said.

Source: The Star

Manufacturing sector needs paradigm shift to attract locals, says Liew Chin Tong

Sarawak is moving forward in pursuing green energy with the launch of an electrolyser assembly and distribution facility, which will boost hydrogen production, says Premier Tan Sri Abang Johari Openg.

He said the facility would produce electrolysers to facilitate the conversion of water molecules into hydrogen.

“This is a game changer in the process of producing hydrogen because we produce our own electrolysers, which will reduce the cost of converting water into hydrogen,” he told reporters after opening the facility at Demak Laut Industrial Park here on Thursday (June 6).

Electrolysers use electricity to split water into hydrogen and oxygen.

The Sarawak Electrolysers Assembly and Distribution Facility (SEA-DF) is a collaboration between SEDC Energy Sdn Bhd and PETRONAS subsidiary Lestari H2GaaS.

Abang Johari said the collaboration came about following his visit to PETRONAS’ research facility in Bangi in 2022.

“I requested PETRONAS to share this technology with us.

“Subsequently, with SEDC Energy, we are able to build this plant which will not only meet domestic demand but also supply to users outside Sarawak,” he said.

Abang Johari also said he would provide funding to SEDC Energy and Lestari to conduct research on reducing the power consumption in producing hydrogen.

He said hydrogen would be used to power autonomous rapid transit vehicles and buses in Kuching’s upcoming public transport system.

SEDC chairman Tan Sri Abdul Aziz Husain said the facility had an initial capacity to produce 50MW of electrolysers per year.

As a rule of thumb, 50MW of electrolysers can produce 25 tonnes of hydrogen.

“The plant can go up to 75MW and our target is to reach 500MW per year,” he said.

Abdul Aziz also said the facility had received orders from outside Sarawak, with 3MW of electrolysers set to be shipped by the end of the year.

“There is a lot of demand for electrolysers as the world capacity to produce them is limited,” he added.

source: The Star

Sarawak to forge ahead in green technology with new high-tech facility, says Premier

PENANG is now witnessing robust growth and demand in its semiconductor sector, marked by the establishment of a three-storey office by Emerix Malaysia Sdn Bhd in Batu Kawan this year.

Its chief executive officer William Lee said that the South Korea-based company aims to set up a factory in the state by 2027.

“Penang is a prime destination for our company’s growth due to its semiconductor ecosystem, known as the Silicon Valley of the East.

“We have the expertise in developing flying probe technology, especially with our established household name in South Korea.

“I can proudly say that we are one of the fastest-growing automation companies globally, focusing on flying probe tester, and research and development (R&D).

“We hope to expand our manufacturing operations in Penang in the future,” he said at a press conference in Komtar today.

Lee said the company would continue to engage with the state government to ink a memorandum of understanding (MoU) with the leading learning institutions.

“We hope to share our knowledge of automation with the students here,” he added.

Deputy Chief Minister II Jagdeep Singh Deo, who was present, was delighted with the Emerix’s announcement to set up its base in Penang.

“Penang has now become the preferred investment destination for investors, and we hope to keep this momentum going in the future,” he said.

Jagdeep praised the company’s mission to establish its manufacturing operations in the state, expressing hope that this would attract more international firms to follow suit.

Source: Buletin Mutiara

South Korea-based automation firm eyes Penang’s thriving semiconductor ecosystem

Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg on Thursday launched Sarawak’s and the nation’s first electrolyser assembly and distribution facility at Demak Laut Industrial Park here.

Set as a mass electrolyser production hub, the Sarawak Electrolyser Assembly and Distribution Facility (SEA-DF) is also said to be one of the first in Southeast Asia to incorporate an automated assembly line.

Abang Johari said the facility brings Sarawak closer to achieving its aspiration as a hydrogen hub in the region and will make green hydrogen into a cost-effective energy source option for consumers.

He said the electrolysis technology used at SEA-DF would help reduce the cost of producing hydrogen which is currently quite expensive.

“The conversion of H2O into hydrogen and oxygen – this is a game changer in the process of producing hydrogen because we produce the electrolyser ourselves, meaning this facility will reduce the cost of converting water into hydrogen.

“I first saw this when I visited the Petronas research centre in Bangi in 2022. Following my visit, I requested that Petronas share this technology with us.

“Now, through collaboration with Sarawak Economic Development Corporation (SEDC) Energy, we are able to establish this assembly plant. This plant not only meets domestic demands but also supplies for users outside Sarawak,” he said.

Adding on, the premier said electrolysers produced at the facility would be delivered to Petroleum Sarawak Berhad’s (Petros) three-in-one multirefuelling stations for hydrogenfuelled vehicles.

He also cited the portable hydrogen generators as one of the technologies that could become among the alternatives for Sarawak Energy to supply power to rural areas.

“Shipping energy production to hydrogen is our objective instead of relying on hydrocarbons. Moreover, with hydrogen, I witnessed technology that uses hydrogen to generate electricity, which could be transformative for our rural areas.

“Portable hydrogen generators could replace diesel, providing cleaner energy and reducing pollution. This new technology offers an alternative to SRS (our rural electricity programme) which relies on solar power. If hydrogen technology proves cost-effective and sustainable, it could replace solar solutions in rural areas.

“Technological advancements continue to improve hydrogen production, and we are closely monitoring these developments,” he said.

On the capacity of electrolyser production, Abang Johari said the initial capacity running at the facility would be able to produce 25 tonnes of hydrogen per day, using not use more than 40 kW per hour (kWh) of energy to produce 1kg of hydrogen.

“Our goal is to reduce this to 30 kWh or even 20 kWh, resulting in considerable savings,” he added.The operation of SEA-DF is undertaken by SEDC Energy and Lestari H2GaaS, a new subsidiary of Petronas.

Meanwhile, SEDC Chairman Tan Sri Datuk Amar Abdul Aziz Husain said SEDC Energy will be working together with its partners to produce electrolysers to meet the growing demands for hydrogen through the SEA-DF.

He said the facility with a capacity of 50 megawatts (MW) per year will meet the local demand in Sarawak.

“But we have also orders not only from Sarawak but also outside the country. We will be shipping three (units of) electrolysers before the end of this year to another country and further orders will also be coming in,” he said in his welcoming remarks.

Abdul Aziz said SEA-DF will further enhance Sarawak’s capacity to produce and distribute hydrogen, a key component in the global shift towards clean new energy sources.

“As all of you may know, hydrogen is poised to play a critical role in the transition to a low-carbon economy, and Sarawak is well-positioned to be at the forefront of this movement.

Source: Daily Express

Sarawak step closer to becoming hydrogen hub

The ongoing trade rift between US and China is expected to benefit Malaysia’s rubber gloves sector as both countries seek other countries to import or export rubber gloves to meet demand.

Of note, in mid-May 2024, the US President Joe Biden has announced a series of new tariffs targeting Chinese electric vehicles, semiconductors, aluminum, steel, and other import. Notably, the import tariff on Chinese-made rubber medical and surgical gloves will rise from the current 7.5 to 25 per cent, effective by 2026.

“Assuming Chinese glove players do not absorb the tariff increase, we believe the imposition of tariffs could potentially benefit Malaysian glove manufacturers by making their pricing more competitive.

“We gather that the Chinese glove players are currently selling at discount circa US$17 to US$18 per 1,000 pieces, meanwhile the Malaysian glove players are selling at circa US$20 to US$21 per 1,000 pieces. With the implementation of a higher tariff, we expect the pricing gap between Chinese and Malaysian players will narrow, enhancing the competitiveness of Malaysian players,” said the research team at Public Investment Bank Bhd (PublicInvest Research).

Based on its channel checks, Chinese players currently hold a market share of around 30 to 35 per cent in the US.

“We believe US would continue to import gloves from other regions, rather than increasing its own capacity in US to produce more gloves, given the disadvantage of higher production cost.

“Meanwhile, with the implementation of higher tariff, China players would likely shift their business focus from the US to other markets including Europe and Asia.

“This is expected to benefit Malaysian glove manufacturers, the world’s largest glove producers, as they are likely to capture more sales in the US market,” the research team opined.

“Acknowledging the potential advantages for Malaysian glove manufacturers due to change in economic policy, we reckon that the overall economic impact may not be significant.

“It’s worth noting that the Chinese glove manufacturers are operating with new, highly efficient machinery and are benefiting from cost advantages with the usage of coal in production. If Chinese players are able to absorb a portion of the tariff increase and enhance their efficiency by 2026, we believe they may still remain competitive in the global market, which could mitigate the extent to which Malaysian glove players benefit from the tariff hike,” it added.

Meanwhile, on the prices of raw material, PublicInvest Research said raw material prices (nitrile butadiene and natural latex) which account for around 30 per cent of total production cost has trended upwards since January 2024.

“We anticipate the trend would lead to a squeeze in operating margins for Malaysia glove players in 1H24, but it’s expected to normalised in 2H24 due to seasonality.

“However, we also note that natural gas prices (which accounts to around 20 per cent of total costs) have risen around 34 per cent from an average US$1.7/MMbtu in March 2024 to US$2.3/MMBtu in May 2024, which will translate to a higher gas tariff in 2H24, due to a time lag effect,” it said.

The weakening of ringgit against US dollar is also expected to benefit the rubber glove sector as sales are mostly denominated in US dollar.

“The strengthening of US dollar would translate to higher ringgit revenue. However, as some of the raw material costs are also quoted in US dollar, this would partially offset the positive impact arising from a stronger US dollar,” the research team said.

Source: Borneo Post

China-US trade rift a boon for Malaysia’s rubber gloves

The upcoming ENERtec Asia 2024 will enhance its focus on Battery Energy Storage Systems (BESS) with the introduction of a new segment: battery and electric vehicle (EV) tech (energy storage and EV technology and solutions).

ENERtec Asia, organised by Informa Markets, will be held from 26 to 28 June 2024.

Informa Markets Gerard country general manager Leeuwenburgh said including battery and EV tech marked a turning point for Southeast Asia’s BESS industry.

“This positions Malaysia as a leader in the region’s energy transformation by accelerating innovation and attracting investment in BESS solutions,” he said.

Malaysian Investment Development Authority (MIDA) chief executive officer Sikh Shamsul Ibrahim Sikh Abdul Majid said the transformative power of BESS in Malaysia extends far beyond environmental benefits.

“With incentives like the Green Investment Tax Allowance (GITA), we’re creating an enticing platform for both local and international renewable energy investors.

“The integration of BESS is a monumental leap forward for Malaysia, propelling us toward a future powered by green energy,” he said in a joint statement from MIDA and Informa Markets today.

Sikh Shamsul said they anticipate significant emissions reductions, enhanced grid reliability, and a surge in green investments. Malaysia is on track to become a global hub of sustainable development and environmental stewardship.

The statement said that aligned with Malaysia’s ambitious goal of becoming a net-zero emission nation by 2050, MIDA has formed a strategic collaboration with Informa Markets to drive innovation, attract investment, and position Malaysia as a leader in the region’s energy transformation.

“The nation is also strategically positioned to leverage BESS to achieve its 2050 renewable energy target of 70 per cent.

“Under the Malaysia Renewable Energy Roadmap (MyRER), the nation outlines targets and investments for BESS projects as part of its energy transition plan,” the statement added.

Source: Bernama

ENERtec Asia 2024 enhances focus on BESS by introducing battery and EV tech segment

A CHINA-owned company, Tenpower, that manufactures lithium-ion batteries, held a topping-out ceremony in Banting, Selangor.

The company’s growth is expected to create numerous job opportunities for Malaysians living in Selangor.

State investment, trade and mobility committee chairman Ng Sze Han said the new facility would help people acquire new skills and boost productivity, ultimately leading to higher wages for Malaysian workers.

“We will try our best to provide workers with training to develop their technical skills and professionalism.”

Ng emphasised the importance of combining cutting-edge technology with professional training to enhance production, which would result in higher wages.

Source: The Star

New lithium-ion battery factory in Banting to create jobs for locals

As the National Semiconductor Strategy (NSS) sets out to transform Malaysia into a global powerhouse in the semiconductor industry over the next decade, industry players are eager and ready to propel themselves upward.

Industry players, both local and international, believe there are tremendous business opportunities offered under the NSS that need to be exploited strategically rather than being left out.

Malaysian Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai said the NSS will not only support and further boost the country’s value chain globally, it will also spur its advanced packaging, equipment and automation technology.

He said Prime Minister Datuk Seri Anwar Ibrahim’s NSS announcement at Semicon Southeast Asia 2024 on Tuesday demonstrated Malaysia’s seriousness in developing its semiconductor industry to greater heights.

“The fact that the government has allocated RM25 billion to support all NSS’ efforts is a real testimony that our country is very committed to the semiconductor industry and wants it to grow.

“The opportunity is huge, given this industry is projected to grow to U$1 trillion (RM4.71 trillion) (in revenue) by 2030 globally. There are even forecasts that it (the revenue) will go beyond that by the time it reaches 2050,” he told Bernama when met at Semicon Southeast Asia 2024, the largest congregation of supply chain companies in the semiconductor and electronics industry.

Therefore, Wong urged local players to seize all the advantages and opportunities resulting from the NSS.

Meanwhile, Daan de Cloe, managing director of foreign investments and international trade at Dutch public organisation Brabant Development Agency (BOM), said the announcement of NSS highlighted Malaysia’s strong ambition to grow further in the industry.

De Cloe said that Dutch semiconductor industry players possess ample knowledge and technologies and are ready to build an ecosystem together in Malaysia and contribute to its growth.

He noted that Malaysia’s semiconductor industry has grown significantly over the past few decades.

“It (the Malaysian semiconductor industry) has shown significant growth, and looking at the current ambition (through the NSS), it will continue to grow for the upcoming years.

“It will increase the attractiveness for foreign companies to come here and invest and share their knowledge about semiconductors,” he said.

De Cloe hoped Malaysia could produce more high-skill labour to fulfil its needs and requirements.

“We hope that we will get sufficient talents and also build the required skill labour that we need to establish the supply chain, the high technology supply chain that is required to build a complex machine,” he said.

Echoing de Cloe, Zilian (Malaysia) Sdn Bhd executive director Kon Qi Yau agreed with the government initiative to develop a global research and development (R&D) hub for semiconductors, featuring world-class universities, corporates, and centres of excellence and train and upskill 60,000 highly skilled Malaysian engineers.

“Previously, some people might think that in terms of R&D (the adoption) of new and advanced technology, Malaysia is slightly behind Singapore,” he said, adding that this perception can be overturned via this initiative.

Kon also hopes that this initiative will include students at the primary, secondary, and tertiary levels.

“We need skilled labour because, for the past 15 years, Malaysia has only focused on outsourced semiconductor assembly and testing.

“So when we want to go to the front-end wafer fabrication, we definitely need more technical people on the wafer fabrication side,” he elaborated.

Meanwhile, Invest Penang chief executive officer Datuk Loo Lee Lian said that when mapping Asian countries’ strengths across the semiconductor value chain, it is evident that Malaysia’s competitive advantages lie in integrated circuit (IC) design, advanced packaging, and equipment manufacturing.

“We applaud the NSS for accurately identifying these as the strategic verticals for Malaysia to build on.

“We need to be strategic with the targeted RM500 billion foreign direct investment to ensure it includes opportunities for local participation in the supply chain, equity, technology and intellectual property (IP) ownership and that the RM25 billion allocation in fiscal support will be directly used to spur local startup and entrepreneurship,” she said.

Loo added that the human resource vertical should take a holistic approach to addressing the current technical shortages and building a sustainable pipeline for science, technology, engineering, and mathematics (STEM) talents.

Anwar, while unveiling the NSS last Tuesday, said that among the businesses Malaysia aimed to focus on in the NSS are IC design, advanced packaging and manufacturing equipment, and wafer fabrication.

NSS, which is described as a robust, agile, inclusive and forward-thinking strategy for the semiconductor industry, is structured in three phases to foster collaboration with companies across Asean, Asia, and the global stage.

Source: Bernama

Industry players poised for growth under National Semiconductor Strategy

As the ‘Silicon Valley of the East’ with business friendly policies and a robust electric and electronic (E&E) ecosystem, Penang is ready to anticipate more high-impact investments from China in the years to come, said Chief Minister Chow Kon Yeow.

He said China’s approved investment in Penang as of 2023 had amounted to an astonishing RM1,799.6 million, with the presence of more than 50 Chinese multinational corporations (MNCs) across the state.

He said this had the potential of providing almost 2,000 job opportunities to the people of Penang.

“In tandem with missions stated in the National Industrial Master Plan 2030 (NIMP 2030) and National Energy Transition Roadmap (NETR), China has the potential to assist in the nation’s agenda of resetting industrialisation and attracting high quality investments.

“China’s ‘X-factor’ may be potent in the field of manufacturing including E&E and Semiconductor (IC Design and Wafer Fabrication), digital technology investments such as big data analytics, Artificial intelligence and robotics,” he said during a reception in celebration of the 50th Anniversary of the Establishment of Diplomatic Relations between China and Malaysia here on Friday night.

Touching on tourism, Chow noted that China was ranked top five within the tourist arrival chart in Penang with a total of 37,711 Chinese tourists recorded through Penang International Airport (PIA) while 10,864 recorded through the Swettenham Pier Cruise Terminal here.

He said availability of direct flights from Penang to China including China Southern Airlines (Guangzhou), Xiamen Airlines (Xiamen), Cathay Pacific and Airasia (Hong Kong), had eased the connectivity between two countries.  

Meanwhile, China’s consul-general in Penang, Zhou Youbin said China had full confidence and expectation on Penang to strengthen cooperation with China’s provinces and municipalities.

“Projects such as the Penang Second Bridge, Teluk Bahang Dam and the expansion of the Mengkuang Dam are the successful examples of pragmatic cooperation between China and Malaysia at the subnational level,” he said.

Zhou concluded that since its establishment in 2015, the Chinese Consulate General in Penang had always been committed to deepening local exchanges and cooperation between China and Malaysia, besides striving to provide a source of driving force for the development of China-Malaysia relations.

China is Malaysia’s largest trading partner and a major foreign direct investment (FDI) source. In 2023, China was among the five largest sources of foreign investment into Malaysia with a total investment worth US$3.15 billion.

Source: Bernama

With robust E&E ecosystem, Penang anticipates more high-impact investment from China

Malaysia can remain a significant player in the global semiconductor market by ramping up capacity and attracting more investments into the sector, technology company Siemens Malaysia Sdn Bhd said today.

President and chief executive officer Tindaro Danze, said ongoing technological developments and investments are essential as many sub-industries depend on semiconductors, reflecting the interconnected nature of modern technology and manufacturing.

Morever, the semiconductor industry is a major contributor to Malaysia’s economy, contributing between 25 per cent to 30 per cent of the country’s gross domestic product (GDP).

“This indicates that a significant portion of Malaysia’s economic output is tied to the semiconductor sector,” he told reporters on the sidelines of the Semicon Southeast Asia 2024 conference.

He said there are set to be 74 semiconductor fabrication plants (fabs) in Southeast Asia between 2023 and 2027, and it is expected that eight of the fabs will be established in Malaysia, demonstrating
the country’s important position within the regional semiconductor landscape.

“Malaysia needs to keep pace with these trends to avoid falling behind other countries,” he added.

Malaysia chalking up significant investments

Danze said that Malaysia is chalking up significant investments this year, from companies like Infineon Technologies AG, which indicates positive prospects for the country.

“Global players are very mindful where they put their investments (and) they want to diversify.
“They learnt from the COVID-19 (times). They do not want to put all the eggs in one basket, so they are looking for alternatives.

Malaysia makes a pretty good alternative because the ecosystem needed to feed the semiconductor is already here,” he said.

In talks with Selangor state government

Danze said Siemens is not only a manufacturing company but is also looking into utilities, such as the water industry. It is in talks with the Selangor government to resolve state water woes.

According to Danze, Selangor has an extensive water piping network of about 35,000 kilometres.

He emphasised that these pipes are old, which could lead to frequent bursts, leaks and non-revenue water which refers to water that is produced but not billed to customers due to leaks and waste.

He said non-revenue water accounts for 25 per cent to 30 per cent of treated water loss in Malaysia versus five per cent in some other countries (European countries).

Danze also said Siemens has proposed to the state government to use digital twin technologies to create a digital model of the water network and detect potential leaks by monitoring changes in pressure and flow rates.

Hence, the idea of creating a digital twin involves making a digital replica of a physical system — in this case, the water piping network.

He said this technology can be applied across various applications and industries.

A digital twin is a virtual representation of a physical device or fab, and it can be used to simulate and optimise operations for quicker identification and leak repairs, significantly reducing water wastage.

The software can also predict potential pipe bursts, enabling preemptive maintenance. There are a lot of savings to be derived from the technology because it can reduce water loss and improve the efficiency of the water supply system; quick detection and repair of leaks prevent prolonged water wastage.

Source: Bernama

Boosting semiconductor capacity, investments vital to maintain global market position – Siemens

The project is said to be broadening its scope to encompass talent development, R&D and urbanisation efforts 

ONCE dubbed a ghost town, Tanjong Malim, Perak is set to emerge as a global automotive hub. 

The strong belief in Tanjong Malim’s potential to achieve the status of “Motor City Detroit” and Wolfsburg in Germany aligns with the development of the Automotive High Technology Valley (AHTV) Project, which includes plans to produce new energy vehicles. 

In fact, the project is also reported to expand to include talent development, research and development (R&D), and urbanisation. 

Universiti Pendidikan Sultan Idris (UPSI) Faculty of Human Sciences’ Department of Geography and Environment lecturer Assoc Prof Dr Yazid Saleh said this is realistic although it seems distant. 

According to him, the development of Tanjong Malim as the nation’s automotive hub will be driven by two major factors: The relocation of Proton Holdings Bhd factory operations from Shah Alam, Selangor by 2027 and the AHTV, a RM40 billion joint venture between China’s auto giant Zhejiang Geely Holding Group Co Ltd and DRB-HICOM Bhd. 

“Following Proton’s relocation to Tanjong Malim, according to Perak Mentri Besar Datuk Saarani Mohamad, a total of 3,000 Proton workers have been transferred from Shah Alam to Tanjong Malim, with the number expected to increase to 10,000 workers by 2027. 

“By 2027, a total of 50,000 people, including Proton workers and their families are expected to be relocated from Shah Alam to the Proton City area. 

“The relocation will also attract existing and new Proton vendors to Proton City,” he told Bernama. 

For the record, Proton City was established circa 1990 and is located between the towns of Tanjong Malim and Slim River. Car production at the factory was supposed to start in 1998 but was postponed due to the 1997 Asian financial crisis, with factory operations only beginning around November 2003. 

New Gen Car Manufacturing 

Elaborating on AHTV, Yazid said the project explores new areas of collaboration, including new-generation car manufacturing through a project covering an area of 404.69ha, complementing previous national planning such as the National Physical Plan (2005). 

“Tanjong Malim-Proton City is categorised as a city with its own unique characteristics under the Special Industrial City category along with Peramu (Industrial Estate) and Kulim (Hi-Tech Park). 

“This is detailed through the Perak State Structure Plan (2001-2020), which designates Proton City-Tanjong Malim-Behrang as the state’s Silicon Valley (in the context of the automotive industry). It also ranks as a Sub-Regional Centre of the state. 

“Again, the emphasis on Tanjong Malim as an automotive city is reflected in the Perak State Structure Plan 2040 through the Northern Corridor Economic Region’s Regional Strategic Growth Sector, where one of its strategies is to develop Tanjong Malim as a leading automotive centre in South-East Asia,” he said. 

He explained that according to the latest plans, Proton and Geely will produce electric vehicles (EVs), hence drawing more EV vendors to Tanjong Malim due to this new technology. 

“Geely is also said to be interested in setting up a university to train and develop young talents in technical and vocational education and training and automotive technology. 

“If all goes smoothly, this will create tens of thousands of job opportunities for local youth and contribute to the development of Tanjong Malim in particular, through the chain of workers-salary-spending-economy- development,” he said. 

Proton City’s Limited Success 

Commenting on the failure of the Proton City project, which is seen as unsuccessful in elevating Tanjong Malim, Yazid said Proton, as Malaysia’s first car manufacturer (an endeavour that dated back in 1984), recorded high profits until 2010 due to the lack of competition and the high import automotive policy (import tax) imposed. 

“However, with Asean Free Trade Area 2010, the National Automotive Policy was amended, leading to the liberalisation of car prices in Malaysia. 

“Inefficient policy management and the previous government’s decision to open the domestic market to all cars without giving Proton a chance to enter foreign markets made it difficult for Proton to compete with major automotive companies from other countries. 

“Proton was hard hit by the presence of these giants in the market, with declining sales due to questionable product models and quality,” he said. 

He added that a significant drawback was that Proton Tanjong Malim only assembled a few models in the past, namely Gen 2, Persona and Preve (less popular models). 

Tanjong Malim’s Development Progress

However, Yazid said that the latest investment developments indicate Tanjong Malim is on the path to development, albeit at a slow pace. 

“Four main indicators can explain this situation. First, population growth based on the 2010 census showed an increase 10 years later (2020), from 50,575 to 76,688 people. 

“Second is employment changes; the number of employees in the manufacturing sector grew at only 6.7% in 1980, with a 7.4% growth in 1991; it rose further to 10.6% and 18.5% in 2000 and 2010 respectively. The number is expected to rise to 20 to 21% by 2020,” he said. 

Commenting further, he said the services 

sector in 1980 only contributed 5.7%, but in 2000, it increased to 15.5%, 17.3% in 2010 and an estimated 18% to 19% by 2020. 

“The next indicator is land use changes. Although 51% of the Muallim District is agricultural, land use has since changed significantly with the focus on the development of Tanjong Malim-Proton City. Commercial and residential areas have sprouted, replacing agricultural land with industrial land being primarily utilised for Proton City. 

“Fourth, changes in the supply of goods and services; small towns usually offer basic goods for the population and the agricultural sector, but in Tanjong Malim, the situation is different. Recently, high-level goods and services have started to make their presence here,” he said. 

UPSI’s Role 

“Without a doubt, UPSI plays a crucial role in boosting the development of Tanjong Malim, hence shedding the district’s ‘ghost town’ image,” Yazid said. 

“It is unfair to call Tanjong Malim a ‘ghost town’ because a ghost town is a town that has lost its function and population. 

“Examples of ghost towns are towns that were initially tin mining areas like Temoh and Chenderiang in Perak and Sungai Lembing in Pahang, among others. 

“It’s just that Tanjong Malim’s development is relatively slow and not drastic,” he said, adding that UPSI in this context has brought about fundamental changes in Tanjong Malim’s economy from primary industry (the main) to services. 

He explained that this was brought about by the presence of the workers and students, leading to a multiplier effect that eventually brought many changes in terms of physical offerings and services to Tanjong Malim. 

“Overall, the presence of many UPSI students and staff accelerates Tanjong Malim’s population and economic growth. 

“UPSI generates income from outside the area because a significant portion of the salaries received by workers is sourced from the federal government,” he said. 

According to him, students also play a role in bringing in income from outside the area, mainly through their education loans. 

If a student receives assistance from the National Higher Education Fund Corp, the loan amount received by each student (before deducting tuition fees) for each semester over eight semesters at UPSI is approximately RM3,500 per semester. 

UPSI’s existence also helps propel the growth of ancillary sectors such as catering, cleaning and local employment. 

“In terms of spending contributions, take a simple calculation, if an UPSI student spends RM10 a day for daily expenses x 30 days = RM300, with 21,558 Bachelor’s Degree students and 2,424 diploma students, totalling 23,682 students, round it up to 23,000, so RM300 x 23,000 = RM6.9 million a month spent in Tanjong Malim (excluding staff), hence UPSI provides spin-offs for the supply of goods and services in Tanjong Malim,” he said. 

Proton Needs to Go Global 

However, he said, in line with the investments made, Proton itself needs to have future plans, including by preparing itself for the global stage (becoming a world brand). 

Meanwhile, UPSI Faculty of Human Sciences’ Department of Malaysian Studies lecturer Muhammad Nadzir Ibrahim believes that Proton’s strategy to become one of the top three automotive companies in Asean by 2027, with plans to re-enter two of the region’s largest markets, Indonesia and Thailand, is excellent and forms the basis for this aspiration. 

“If this succeeds, the goal will be achieved, and Proton itself must be prepared to produce products that can compete internationally,” he said. 

Commenting on Tanjong Malim’s development plans, Muhammad Nadzir believes the focus should be on providing infrastructure for the community and other facilities such as affordable housing and new schools, which need to be expedited from now. 

Additionally, local authority services need to be improved, and environmental issues such as waste, drains and grass should not be taken lightly. 

“Although current dissatisfaction with services may be low, preparation is crucial because as the population grows, so will their demand. 

“All these play a role in supporting the needs and providing comfort to the expected growing population. 

“Currently, small urbanisation issues such as flash floods and river pollution have begun to be detected, and related parties need to be prepared to address these issues,” he said. 

He added that there are many more special features of Tanjong Malim that can be developed as eco-tourism, such as the UPSI Adventure Park, Ujana Muallim and Sungai Bil.

Source: Bernama

AHTV poised to transform Tanjong Malim into global automotive hub

Taiwan-based semiconductor companies are optimistic about business prospects in Malaysia’s semiconductor industry, given its solid foundation and thriving semiconductor ecosystem that offers potential long-term growth.

Semiconductor integrated circuit (IC) design solutions provider, FusionSIP Technology Pte Ltd’s general manager, Eigen Fu said the company is planning to open its first design service centre in Malaysia this year.

He said the company is in the midst of surveying potential locations that would house its centre in the country.

“We want to set up the biggest design centre in Southeast Asia, maybe somewhere near Kuala Lumpur due to its logistics advantages,” he told Bernama on the sidelines of SEMICON Southeast Asia 2024

Fu added that FusionSIP also plans to collaborate with local universities while at the same time providing the students with employment opportunities and hire local workers to strengthen its presence in the country.

Recently, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia is offering itself as the “bridge” to connect countries open to tech collaboration.

Anwar said Malaysia is already a melting pot of local and international tech talent, making it easy for companies rooted here to be regionally and globally competitive.

Meanwhile, another Taiwanese semiconductor player, Delta Electronics Inc, hopes its newly launched product DIASECS solution will be widely used in semiconductor facilities in Malaysia.

DIASECS is Delta’s comprehensive solution for semiconductor equipment communication and control, complementing the company’s existing solution products, said Delta Electronics Industrial Automation country manager Quah Soon Kooi.

He said the solution could be used in semiconductor’s equipment interface and communication protocol for equipment-to-host data communications, such as the semiconductor equipment communication standard.

Delta Electronics, through its subsidiary Eltek Power (Malaysia) Sdn Bhd, has been present in Malaysia since 2016.

At the same time, computer supplier company, Bossmen Inc’s manager Lewis Liu also expressed his optimism over the tremendous potential for business growth in Malaysia.

He noted that several international giants have set foot in Malaysia, including Intel Corporation and Micron Technology from the United States (US), Bosch from German, and ASE Group from Taiwan.

“Concurrently, the demand for advanced storage solutions is expected to increase significantly,” he said when met at SEMICON Southeast Asia 2024, the largest congregation of supply chain companies in the semiconductor and electronics industry.

Liu said Bossmen’s innovative technology – the Nanoscale Photomask Storage Cabinet – was a highlight during the three-day event which ends today.

“It provides each photomask pod-on-die (POD) with purified intake air, constant humidity, temperature, and nitrogen flow, along with radio frequency identification (RFID) personnel access management and POD load/unload selection to meet Class 1 clean room standards for nanoscale photomask storage,” he said.

He added the technology comes with five essential features – filtration, monitoring and control, active purge, alarm, and security – which make it a reliable storage solution, offering cost efficiency and saving up to 80 per cent on nitrogen usage.

In 2023, Malaysia’s electrical and electronics (E&E) trade surged to an impressive RM931.39 billion.

A substantial part of this trade, totaling RM575.45 billion, stemmed from exports, underscoring the crucial role of the E&E industry in Malaysia’s economy

Semiconductor devices, ICs, transistors, and valves exports collectively made up 67 per cent of Malaysia’s total E&E exports in 2023, amounting to RM387.45 billion.

Major export markets include Singapore, the US, China, Hong Kong, and Taiwan.

Source: Bernama

Taiwan semiconductor players confident on business prospects in Malaysia

Semiconductor industry players should offer higher wages and attractive packages to lure lost talents back home, said Deputy Minister of Investment, Trade and industry (MITI) Liew Chin Tong.

He stressed that the neighbouring countries are offering more attractive salaries to skilled workers in the industry.

“I always said that Malaysia doesn’t have a shortage of talents because our talents are actually working in Singapore. So, we need to find a balance,” he said in his address at the closing ceremony for the SEMICON Southeast Asia 2024 here today.

Liew said industry players must play their role to keep the best talents in the country to ensure that Malaysia is able to create a strong semiconductor ecosystem and achieve the goals outlined in the National Semiconductor Strategy (NSS).

He said Prime Minister Datuk Seri Anwar Ibrahim has set a clear vision and deliverable actions under NSS, and that the government is keen to work on collective action with stakeholders.

“As a nation, we will have to work with you closely, with all our partners, in order to create some form of semiconductor diplomacy,” he said.

While the government is looking forward to boost foreign direct investments, it also aims to localise innovation and create domestic technology giants.

“We want to localise innovation as much as possible in order to create a strong Malaysian presence as well as regional cooperation for the sector,” he said.

In addition to attracting RM500 billion in investments during the first phase of the plan, the nation aims to establish at least 10 Malaysian companies in design and advanced packaging, each with revenues ranging from RM1 billion to RM4.7 billion.

It also hopes to nurture at least 100 semiconductor-related companies with revenues approaching RM1 billion, thereby creating higher wages for Malaysian workers.

Source: The Star

Liew calls on semiconductor sectors to offer higher wages

Dutch Lady Milk Industries Bhd (DLMI) has today inaugurated its new RM540 million state-of-the-art manufacturing hub here.

Deploying eight production lanes, the Halal manufacturing facility is integrated with Industry 4.0 technology to meet Malaysian and regional demand for the long-term.

DlMI said the new manufacturing hub with export capacity will introduce new skills relevant to the new generation of Malaysians to spur new opportunities for growth in terms of innovation, improved efficiencies and overall sustainability.

“We will be operational by this year, after several years of hard work together with relevant stakeholders to bring this project to fruition,” DLMI managing director Ramjeet Kaur Virik said.

The Yang Di-Pertuan Besar of Negri Sembilan Tuanku Muhriz Tuanku Munawir officially inaugurated DLMI@Enstek.

Also present were the state’s senior executive councillor Datuk Seri Jalaluddin Alias (representing Menteri Besar Datuk Seri Aminuddin Harun) and ambassador of the Netherlands to Malaysia Jacques Werner.

FrieslandCampina, the main shareholder in DLMI, was represented by chief executive officer Jan Derck van Karnebeek.

Ramjeet noted that this important milestone in the company’s history is made possible by collaborating with the federal and state government.

They included agencies such as the Malaysian Investment Development Authority, Invest Negri Sembilan and Negri Sembilan Islamic Religious Affairs Department.

DLMI said the significant investment is a strong commitment towards building long-term public-private partnerships to help improve Malaysia’s dairy sector particularly in raw milk production as well as combat the triple burden of malnutrition in different segments of society.

As part of FrieslandCampina in the Netherlands, Ramjeet emphasised that the DLMI@Enstek will be a critical hub in FrieslandCampina’s global supply chain network and concurrently demonstrate the company’s confidence in Malaysia’s present and future economic opportunities.

“DLMI@Enstek is our strong commitment to nation-building and at the same time, rapidly embracing the latest food technologies on par with global best practices,” she added.

The facility is also expected to increase Negri Sembilan’s competitiveness as a magnet for new investments and further help create new spin-off economic benefits to the local economy. 

The company’s strong Dutch dairy expertise link further cements its leadership role in the country.

Van Karnebeek said the facility will enable DLMI to continue producing high-quality dairy products for Malaysians and the region.

He added that FrieslandCampina has consistently aided and supported Malaysian dairy farmers with the latest techniques and technology in cooperation with the government.

“Our dairy heritage and know-how continues to support Malaysian dairy farmers in learning new methods to help improve the quality and quantity of local raw milk production and contribute to the food security of Malaysia,” he said.

The inauguration of DLMI@Enstek was held in conjunction with World Milk Day which falls on June 1, with this year’s focus being on celebrating the goodness of dairy in providing better nutrition such as protein and calcium for the world.

Source: NST

Dutch Lady inaugurates new RM540mil manufacturing facility in Bandar Enstek

Analysts are bullish about the National Semiconductor Strategy (NSS), believing that it would further boost the prospects of the local technology and semiconductor industries.

The NSS, which carries three overarching phases and outlined by five headline targets, was announced by Prime Minister Datuk Seri Anwar Ibrahim at the Semiconductor Southeast Asia 2024 event in Kuala Lumpur on Tuesday.

The government is allocating RM25bil in its attempt to strengthen the country’s position as a key manufacturing hub for outsourced semiconductor assembly and test (Osat) services, while also moving up the value chain into higher-end manufacturing, design, packaging and equipment.

Most observers applauded the move by Putrajaya, with Rakuten Trade head of equity sales Vincent Lau calling the initiative timely and much needed, especially in light of the fact that similar exercises are also being carried out in other markets.

“Our outlook for the tech industry has become brighter following this announcement because we do need to capitalise on our infrastructure to try and attract more investments into Malaysia,” he told StarBiz.Pointing out that the government’s investment could propel it towards the goal of securing RM500bil investments under Phase 1 of the NSS, Lau said the move is in line with the influx of data centre building applications currently permeating the country.

Malaysia should also build on its strengths in the electrical and electronics sector, taking advantage of the China+1 phenomenon that leads to the setting up of several multinational corporations locally, he said.

Concurring with Lau, Areca Capital chief executive Danny Wong said compared to similar initiatives that have been announced in the United States and China, Malaysia is taking the “baby steps” necessary to modernise and move up the supply chain beyond Osat.

“This RM25bil allotment by the government is to attract more foreign direct investment (FDI) – approximated to be around 20 times – and establish Malaysian companies in the middle and front end of the supply chain such as chip design, fabrication, integrated service and packaging,” he said.

While noting that the investment is also geared towards making Malaysia a research and development hub, Wong hopes the country will develop a sufficient supply of engineers, coupled with a technically skilled workforce, to cope with the anticipated demand.

Moreover, he expects the government to deliver incentives such as pioneer status and tax allowances as its next steps besides providing grants, highlighting that Malaysia’s neutral and non-aligned status is key to its unique competitiveness.

Siemens Malaysia Sdn Bhd chief executive Tindaro Danze is of the view that it is imperative Malaysia continues investing in the semiconductor industry as the sector contributes about 25% to its gross domestic product.

“Malaysia is also fulfilling 7% of global semiconductor demand and it is crucial it does not fall behind. The extra investments coming in will ramp up the capacity,” he added.

Aside from the proposed construction of several data centres, he said Malaysia is also benefiting from the diversification strategy of many major corporations, a lesson they picked up from the lockdown years.

Danze said this is particularly attributed to the idea that Malaysia already has a healthy and conducive semiconductor ecosystem, which helps industry players minimise disruptions to their supply chain.

Meanwhile, expanding on the point of an adequate talent pool, a fund manager is concerned that this could be a thorn in the ambitious NSS.

“The NSS looks huge but to cater to areas like chip fabrication, advanced chip designing, fabrication and testing, these processes clearly need local skilled talents.

“Hence, we recognise the NSS can bring about a long-term positive but we are not sure about its immediate prospects,” he said.

With Malaysia benefiting from US-China trade tensions, the fund manager said the NSS is an exercise to prepare for companies shifting their production processes to Asean.

“However, we believe that the near-term outlook still depends on the capital expenditure of the stakeholders in the industry. Sector valuation is at its historical average, which appears to be less attractive for entry at this juncture,” he said. He opined that the present momentum is centred around the artificial intelligence and data centre theme, a sphere which most Malaysian tech names have less exposure to.

As such, the fund manager believes the direction for the tech sector is still driven mainly by the recovery of semiconductors related to personal computers, smartphones and electric vehicles, which analysts and industry players expect to take place in the final quarter of this year.

CGS International Research (CGSI Research) and TA Research are supportive of the NSS, with the former seeing it as a positive direction for the country to remain competitive amid increasing competition for semiconductor FDIs in South-East Asia.

If the NSS is well executed, TA Research expects Malaysia to remain a popular destination as a neutral and non-aligned country that attracts global tech players in the foreseeable future.

“The only slight disappointment is no specific timeline is given for the headline targets.

“Of all the headline targets, we are looking forward to more details about the fiscal support of at least RM25bil incentives, as this will motivate local semiconductor players to expedite the upgrading and upskilling,” it added.

Some counters that the research firms expect will gain from the NSS are Inari Amertron Bhd, Malaysian Pacific Industries Bhd, Elsoft Research Bhd and Vitrox Corp Bhd.

Of note, the Bursa Malaysia Technology Index seemed unaffected by the Prime Minister’s announcement, as movement remained flattish in yesterday’s trade.

Rakuten Trade’s Lau nevertheless maintains hope that spillover effect from the Nasdaq will provide support for the local index, noting that the current correction is a healthy one, given the overall market’s positive run of late.

Source: The Star

NSS a multifaceted boon to chip sector

Country aims to become primary hub for supplying power chips to electric vehicles: Tengku Zafrul

Malaysia aims to solidify its position as a key player in the electric vehicle (EV) ecosystem by becoming a primary hub for supplying power chips to EVs, said Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

“Given the current global situation with geopolitical tensions, trade tensions, tech wars, and other issues, Malaysia, as a fiercely neutral country, is one of the nations that can serve as a hub for companies looking to expand their investments in this sector,” he told reporters after the launch of Gentari Green Mobility MY Initiative here yesterday.

He said the semiconductor sector plays a crucial role in Malaysia’s economy in terms of exports and trade. “This sector accounts for 40% of the total exports in the electrical and electronics sector,” he added.

Achieving green mobility today, for example, involves motorcycles and cars using chips, Tengku Zafrul said, adding that in an internal combustion engine car, there are about 600 to 1,000 chips, but in an electric vehicle, there can be almost 5,000 chips.

“Thus, this industry will continue to grow, not only in terms of its use in EV power chips but also with the rise of generative AI and other technologies. This sector is expected to grow, and by 2030, it is projected to be worth around US$1 trillion. So, what’s happening is significant,” he stressed.

Prime Minister Datuk Seri Anwar Ibrahim said on Tuesday that Malaysia can become the key hub to supply power chips to EV cars. He said the power chips are key in energy transition and decarbonisation technologies.

“Through Malaysia’s New Industrial

Master Plan 2030 and the National Energy Transition Roadmap, we already have the right policy enablers and incentives for companies wishing to manufacture them here,“he said in his speech at SEMICON Southeast Asia 2024 conference.

Clean energy solutions provider Gentari Sdn Bhd, through subsidiary Gentari Green Mobility Sdn Bhd, is expanding its efforts to drive green mobility adoption via a new hassle-free, long-term EV leasing solution for commercial fleet operators as part of its Vehicle-as-a-Service offerings.

“Malaysia has one of the highest rates of vehicle ownership among East Asian countries, which significantly contributes to carbon emissions in the country. To help lower emissions from the transport sector, Gentari is now introducing electric twowheelers as part of our Vehicle-as-a-Service offering, targeted towards facilitating businesses to transition to EVs.

“We are excited to collaborate with Lazada in decarbonising their logistics fleet operations,” commented Gentari deputy CEO and Gentari Green Mobility CEO Shah Yang Razalli.

Source: The Sun

Malaysia to cement position as key player in EV ecosystem

The Ministry of Investment, Trade, and Industry (MITI) has announced that Malaysia and Brazil have agreed to strengthen collaboration in the semiconductor sector.

The agreement was reached following discussions with Brazil’s Ministry of Development, Industry, Commerce and Services, and the Ministry of Foreign Affairs during MITI’s Trade & Investment Mission to Brasilia and Rio de Janeiro, Brazil, held from May 19 to May 23, 2024.

Liew Chin Tong, Deputy Minister of Investment, Trade, and Industry, headed the MITI delegation to Brazil.

“Both nations will utilise their respective industrial development plans, namely the New Industrial Master Plan (NIMP 2030) and Nova Industria Brazil 2033, to enhance cooperation in the semiconductor industry,” it said.

Yesterday, Prime Minister datuk Seri Anwar Ibrahim announced that the government will allocate at least RM25 billion (USD 5.3 billion) in fiscal support to operationalise the National Semiconductor Strategy (NSS) RM500 billion in investments in its first phase.

Additionally, they are working towards the Second Bilateral Joint Trade Committee Meeting, scheduled to take place early next year.

Collaboration on semiconductors was one of the highlights of the phone call between Prime Minister Datuk Seri Anwar Ibrahim and President Luiz Inácio Lula da Silva on Feb 9, 2024. 

“The Trade and Investment Mission to Brazil has laid the foundation for increased economic cooperation between the two nations.”Malaysia aims to strengthen collaboration with Brazil to advance shared objectives within the Global South,” it said.

Additionally, MITI said the significant outcomes are being planned for the potential Official Visit of Anwar to Brazil in November 2024, following an invitation from Lula of Brazilian 2023, Brazil ranked as Malaysia’s second largest trading partner in Latin America.

Business meetings were conducted to explore trade and investment opportunities in areas such as cattle breeding, meat products, palm oil, and biomass, as well as to gain insights into the current operations of Malaysian companies in Brazil, specifically Petroliam Nasional Bhd (Petronas) and Yinson Holdings Bhd.

Source: NST

MITI: Malaysia and Brazil to work together to grow semiconductor sector

Malaysia is expected to become a semiconductor hub in Asia given its significant role in the country’s economy, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

He said semiconductor exports currently account for 40% of the country’s total exports. “This makes Malaysia the sixth largest exporter in this sector,” he disclosed during the launch of Semicon Southeast Asia 2024 at Malaysia International Trade and Exhibition Centre here today.

Nearly 500 exhibitor companies are featuring their products in more than 1,000 exhibition booths at the three-day event.

Tengku Zafrul said global demand for semiconductors is expected to reach US$1 trillion (RM4.69 trillion) by 2030 with continuous growth projected. “Malaysia aims to leverage its 50-year presence in this industry and advance to the next level of value by capitalising on advancements in artificial intelligence (AI) technology and everyday applications.”

According to him, Malaysia has a proud history and a strong track record in the semiconductor sector. “For more than five decades, our country has built a strong legacy as a key player in the Asean semiconductor circuit, while playing an important role in the global electronics supply chain,” he said.

Tengku Zafrul said this strategic arrangement has provided the country’s electrical and electronics (E&E) industry, especially the semiconductor sector, with access to a global market of over four billion people.

He stated that Malaysia is increasingly seen as an important Southeast Asian nation in helping to secure the global supply chain for the industry and ensuring the continued growth of the strategic importance of the semiconductor sector.

“The increasing global dependency on semiconductors has stimulated research and manufacturing in Southeast Asia,” he remarked.

He said this also makes the components more crucial in modern electronics and advanced research that can address or exacerbate global issues.

Meanwhile, SEMI CEO Ajit Manocha said Southeast Asia is well-positioned to help accelerate the semiconductor industry’s unprecedented growth driven in part by the game-changing innovations such as GenAl.

“Events like Semicon Southeast Asia play a crucial role in fostering dialogue, partnership, and innovation. The growth in participation this year reflects the growing relevance of this event and the collective commitment to advancing the semiconductor ecosystem to Southeast Asia and beyond,” said Ajit.

Meanwhile, Malaysian Investment and Development Authority CEO Sikh Shamsul Ibrahim Sikh Abdul Majid said, “We are steadfast in our commitment to position Malaysia as a premier investment destination, particularly in the thriving E&E industry. With our investor-friendly policies, well-established infrastructure, and highly skilled talent pool, Malaysia offers an ideal environment for businesses seeking to establish and broaden their presence in Asia. We are prepared to facilitate and accommodate advanced technologies brought by our investors.”

Invest Selangor Bhd CEO Datuk Hasan Azhari said that they are happy to partner with SEMI Southeast Asia and showcase Selangor’s attractiveness as an investment destination through industrial park visits to Elmina Business Park and Eco World Business Park V, and they aim to demonstrate the conducive business environment and abundant opportunities available in Selangor.

Source: The Sun

‘Malaysia set to become Asia semiconductor hub‘

Malaysia has a “once in a generation” opportunity to strengthen the electrical and electronics (E&E) industry following the unveiling of the National Semiconductor Strategy (NSS) yesterday.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Aziz said this given the geopolitical tension between the United States (US) and China that has become a tech war, coupled with global supply chain diversification to reduce disruptions and geopolitical risks.

“Many global companies are looking at redesigning their supply chain, moving to more secure and resilient locations to mitigate risks.

“So we must act now, become more resilient and seize the opportunity because failing to do may result in a missed economic advantage that could set us back for years.

“We already have 50 years of experience, especially in the back-end (outsourced semiconductor assembly and test), and we have to build on our existing strength and capabilities now for both local and international companies to (move) into the frontiers, and stay competitive and innovative in the industry,” said Tengku Zafrul in a media briefing on the NSS here today.

The NSS focuses on high-end value chain opportunities in integrated circuit (IC) designs, high-end manufacturing and equipment-making.

In creating 60,000 engineers under the NSS, private companies must be realistic. They need to attract local talents to stay as the demand for engineers is not limited to the E&E industry, he said.

Other industries such as financial services, management and consulting firms, among others, are also eyeing the same talent pool.

Companies overseas are also “poaching” talents. Malaysia is not the only country facing a shortage of engineers. It is a global issue, he said.

Malaysia has to be more open and allow high-skilled talented engineers from outside the country to enter while local talents are upscaled and upskilled according to industrial relevance if Malaysia is to become a talent hub, Tengku Zafrul said.

He further said MITI is also finalising incentives with the Human Resource Ministry to attract local talents working abroad to return.

The NSS, announced by Prime Minister Datuk Seri Anwar Ibrahim on Tuesday, consists of three main phases, with the industry expected to woo at least RM500 billion of investments in the plan’s first phase in five years.

Source: Bernama

Once in a generation’ opportunity to strengthen E&E with National Semiconductor Strategy: Tengku Zafrul

The government aims to move up the semiconductor value chain from outsourced semiconductor assembly and test (OSAT) to focus on high-end value chain opportunities such as IC design or embedded software, high-end manufacturing and manufacturing equipment, according to Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz. 

“Our current situation in the [semiconductor] value chain, our strength is OSAT. Many companies in Malaysia are heavily involved in third-party IC packaging and services. 

“The country has to enhance its capabilities in IC design and embedded software. We want to focus on local companies especially to move the IC design, not just focusing on lower complexity designs but higher complexity designs,” Zafrul told reporters during the briefing for the National Semiconductor Strategy (NSS) on Wednesday.

On Tuesday, Anwar unveiled the RM25 billion allocation under NSS, earmarked for targeted incentives. NSS comprises three phases aimed at expanding existing semiconductor fabrication plants and enticing foreign direct investment, particularly from purchasers associated with tech giants Apple, Huawei and Lenovo.

For the first phase, Miti is leading several agencies and other ministries in a quest to attract at least RM500 billion in investments.  This includes both domestic direct investment (DDI), focusing on advanced packaging, IC design and manufacturing equipment, as well as foreign direct investment (FDI), targeting wafer fabs and manufacturing equipment.

Out of the RM25 billion allocation, RM5 billion is slated for phase one, according to Zafrul. However, he did not disclose further details when queried about the breakdown for the allocations.

“The breakdown of the RM25 billion allocation is anticipated to span five years, with approximately RM5 billion allocated for phase one. If you ask me, across these three phases, I estimate a timeframe of around 10 years,” he stated.

“On the investment front, our goal is not only to attract FDI but also to promote DDI. Malaysia boasts prominent companies like Vitrox (Corp Bhd) and Inari (Amertron Bhd), which stand to benefit significantly from this allocation. We aim for these local companies to ascend higher. However, in terms of value, FDI will likely dominate due to the substantial capital expenditure requirements,” he added.

Malaysia trails behind Singapore in AI venture capital investments

Zafrul also admitted that Malaysia is trailing behind Singapore in terms of artificial intelligence (AI) venture capital investments. He responded to an East Asia Forum report revealing that 75% of AI venture capital investments are concentrated in Singapore, surpassing other major Asean economies including Malaysia, Indonesia and Thailand.

“I do admit that we are just building the infrastructure on AI, so I think we need time to compete with Singapore. In terms of data centres and security, we need a little bit of time to pass the Cyber Security Bill 2024 in the last parliamentary session, to expect the investments to come in quickly.

The Cyber Security Bill, aimed at bolstering the nation’s cybersecurity through compliance with specific measures, standards, and processes in managing cyber threats, was only passed last month, according to him.

“For example, in the case of Microsoft, it was one of the concerns raised before they (Microsoft) made their investment announcement (worth US$2.2 billion [RM10.35 billion]) in cloud and AI transformation.

In April, Digital Minister Gobind Singh Deo was quoted as saying that the Cyber Security Bill could help the government ensure the viability and efficiency of the Critical National Information Infrastructure in handling cybersecurity incidents.

Source: The Edge Malaysia

Govt wants semicon sector to move up value chain from OSAT forte

Malaysia’s semiconductor sector’s global footprint is set for exponential growth with key initiatives to be unveiled by Prime Minister Datuk Seri Anwar Ibrahim, said Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz.

Speaking to reporters after the launch of the SEMICON Southeast Asia 2024 expo here today, he said the initiatives will strengthen Malaysia’s position in the semiconductor space, emphasising the importance of semiconductors and the role that Malaysia can play in the global value chain.

Tengku Zafrul noted the need to seize the current opportunity to establish Malaysia as a genuine semiconductor powerhouse and a regional manufacturing hub, stressing the importance of attracting more investments to accelerate Malaysia’s progress along the global value chain.

He shared that in the past 18 months, Malaysia has attracted the attention of some of the world’s largest and most cutting-edge electronics companies, including industry giants like Intel, GlobalFoundries, Infineon and Neways.

Tengku Zafrul said as the world is at the cusp of another tech-based revolution powered by artificial intelligence (AI), the future lies not just in assembling and testing chips, but more in the exciting realm of innovation and design.

He noted that Malaysia is exceptionally well-positioned to capitalise on this historic opportunity, thanks to its strong value proposition, which includes world-class manufacturing facilities, innovative research and development centres, a highly skilled workforce, attractive incentives and modern infrastructure.

At the same time, the nation is also upgrading its logistics infrastructure to support the semiconductor industry via the RM1.5 billion expansion of the Penang International Airport, slated for completion in 2028.

It has also established the National Semiconductor Strategic Task Force to spearhead improvements in incentives, talent, and other critical elements to support the industry’s development and growth in order to attract foreign and domestic investments.

The country is also focusing on identifying key activities that will lay the foundation for the industry’s sustainable growth.

This includes developing a robust renewable energy supply and implementing local vendor development programmes to create opportunities for local companies and small and medium enterprises, thereby fostering a vibrant, inclusive, and sustainable industrial ecosystem, he said.

“I would like to reiterate that the stronger macroeconomic forecast for 2024 signals a positive trend during this global technology upcycle.

“This is evidenced by anticipated growth in key economic indicators, coupled with trends towards lower inflation and unemployment rates, as well as an improving outlook for the ringgit,” he said.

Tengku Zafrul added that the achievement of securing RM329.5 billion in approved investment last year demonstrates the growing confidence in Malaysia’s economic stability and growth potential. 

Source: Bernama

Tengku Zafrul: PM Anwar to announce key strategies to boost Malaysia’s semiconductor sector

Malaysia can become the key hub to supply power chips to electric vehicle (EV) cars, Prime Minister Datuk Seri Anwar Ibrahim said.

He said the power chips are key in energy transition and decarbonisation technologies.

For instance, EVs contain over 3,000 chips, two to five times that of internal combustion engine vehicles, he said.

“Through Malaysia’s New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR), we already have the right policy enablers and incentives for companies wishing to manufacture them here,“ he said in his speech at SEMICON Southeast Asia 2024 conference here, today.

Moreover, Anwar said the government aims to have 40 per cent of Malaysia’s primary energy mix from renewable sources by 2035.

This initiative aims to reduce carbon dioxide emissions by 10 million tonnes annually and achieve 100 per cent renewable energy by 2050.

“The government supports exploring new technologies like green hydrogen, nuclear technology, and large-scale energy storage to reduce dependence on fossil fuels and meet the targets of the 2016 Paris Accord,“ he said.

Starting this September, third-party access (TPA) will be allowed in the national electricity supply industry, enabling other parties to supply energy using Tenaga Nasional Bhd’s transmission lines, reflecting high foreign investor interest in Malaysia, he added.

Source: Bernama

Malaysia can become key hub to supply power chips to electric cars – PM Anwar