The Ministry of Investment, Trade and Industry (MITI) is reviewing five legislations to strengthen industrial development which the ministry intends to present to parliament this year.

Deputy Minister Liew Chin Tong, representing MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz, highlighted five key Acts under review, namely the Industrial Coordination Act 1975 (Act 156), which is planned to be replaced by the Industrial Development Bill 2025.

The others are the Countervailing and Anti-Dumping Duties Act, 1993 (Act 504), the Malaysia Productivity Corporation Act 1966 (Act 408), the Standards of Malaysia Act 1996 (Act 549) and the Strategic Trade Act 2010 (Act 708).

Speaking at a town hall session today, Liew said the proposed Industrial Development Bill 2025 seeks to simplify business processes for manufacturers and enhance supply chain resilience, drawing lessons from the COVID-19 pandemic. He recalled that when COVID-19 hit in 2020, Malaysia scrambled to gather data and information to decide which sectors were essential and which were not.

“The draft bill is guided by the spirit of making it easier for manufacturers that fulfill requirements to obtain manufacturing licenses (MLs) and manufacturing status (in place of the current ICA 10), especially through the adoption of digitalisation and streamlining of processes,” he said.

He added that the new Industrial Development Bill 2025 intends to use the issuance of manufacturing licenses and manufacturing status, as well as the once-every-three-year validation, as a mechanism to keep track of local manufacturing activities and build a resilient local supply chain. “Beyond making it easier for manufacturers and ensuring supply chain resilience, the new Industrial Development Bill 2025, which includes elements of star-rating industrial parks, will also be the foundation for Malaysia to build a strong Malaysian industrial base for the next generation.” 

The deputy minister highlighted that the reinforced Countervailing and Anti-Dumping Duties Act will be more effective in protecting the local industry against unfairly priced imports, especially when faced with potential global trade wars and disruptions. “The Anti-Dumping Amendment Bill is now at quite a mature stage, while all other bills would require further input to strengthen them. All your feedback is welcome and I assure you that MITI is all ears, listening and flexible in accommodating good suggestions,” he added.

Source: Bernama

MITI reviews five legislations to strengthen industrial development

JHT Semiconductor Sdn Bhd, a wholly-owned subsidiary of JHT Design Co Ltd, has officially opened its leading-edge manufacturing facility in Batu Kawan, Pulau Pinang, on Feb 15.

In a joint statement today, Malaysian Investment Development Authority chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the launch of the manufacturing facility marks a significant step towards Malaysia’s goal of becoming a key player in the global semiconductor machinery ecosystem.

“This project aligns perfectly with the New Industrial Master Plan 2030 and the National Semiconductor Strategy by strengthening our role in global supply chains, advancing semiconductor engineering, and enhancing research capabilities.

“The company’s focus on cutting-edge test handlers and the creation of high-skilled job opportunities for Malaysians reflect our commitment to driving economic growth, technological innovation, and reinforcing Malaysia’s position in the global semiconductor value chain,” he said.

Speaking on behalf of JHT Design Co, Rick Cui said the establishment of JHT Semiconductor in Malaysia marks a significant milestone in the company’s global expansion.

“This expansion strengthens our commitment to innovation and excellence. Malaysia’s strategic location and strong semiconductor ecosystem make it the ideal hub for our operations.

“This facility will enhance our production, manufacturing, and aftersales services, ensuring better support for our clients. We look forward to driving technological advancements and fostering long-term partnerships in the semiconductor industry,” he said.

According to the statement, the new Batu Kawan facility is equipped with advanced infrastructure designed to optimise production processes and ensure superior product quality.

It said this development aligns with JHT Semiconductor’s commitment to technological excellence and enhances its diverse portfolio of high-performance integrated circuit test handlers.

Source: Bernama

JHT Semiconductor Opens State-ofthe-art Manufacturing Facility InPenang

Sabah is set to strengthen its position in the electric vehicle (EV) industry with the establishment of its first assembly plant at the Palm Oil Industrial Cluster (POIC) Sandakan.

Maxland Auto Sdn Bhd, which secured its federal manufacturing licence from the Malaysian Investment Development Authority (Mida) last year, plans to invest RM100mil in the project by 2028.

The project is expected to generate up to 500 jobs by its third phase, which includes a manufacturing plant.

“This milestone aligns with the state government’s vision for industrial diversification and sustainable economic growth,” state Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe said during a recent site visit.

His ministry and other agencies have pledged their support for this and other similar investments.

“The government is committed to fostering industrial growth and ensuring Sabah becomes a key player in the green technology sector,” Phoong said, stressing the importance of clean energy transportation in driving economic progress.

Accompanying the minister on the visit were ministry permanent secretary Datuk Thomas Logijin, Sandakan Municipal Council president Walter Joseph Kinson, Industrial Development and Research Department director Rodolfo Blantocas, Sabah Mida director Joseph Benjamin, and Invest Sabah Berhad deputy chairman George Wong.

With this development, Sandakan is poised to emerge as a hub for EV innovation, reinforcing the state’s commitment to sustainable industrialisation and economic transformation.

Source: The Star

Sabah’s first EV assembly plant to be built in Sandakan

Malaysia should capitalise its strong aerospace ecosystem and must maximise its potential to drive industry growth, said Investment, Trade, and Industry (MITI) deputy secretary-general (Industry), Datuk Hanafi Sakri.

He said the aerospace industry aims to increase its revenue to RM55 billion by 2030 from a revenue of around RM20-21 billion currently, noting that much more needs to be done to achieve this target.

“Malaysia has an advantage in terms of its comprehensive ecosystem, encompassing human resources, maintenance, repair, and overhaul (MRO), as well as engineering facilities. This is a strength which we must fully utilise,” he told Bernama after officiating the MyAERO TVET 2025 Symposium at the World Trade Centre Kuala Lumpur today.

He added that the government will continue to monitor the implementation and progress of these initiatives through dedicated committees and relevant agencies.

“Nothing in this country happens by chance. We plan strategically, set clear objectives, execute carefully, and track progress through agencies such as the National Aerospace Industry Corporation Malaysia,” he said.

Hanafi noted that Malaysia’s aerospace sector is experiencing rapid growth, driven by rising air traffic and a booming tourism industry.

“Just yesterday, the Sarawak state government announced its acquisition of MASwings, highlighting the growing opportunities in the sector.

“What we need now is the right platform to ensure all stakeholders can play their role in strengthening Malaysia’s aerospace ecosystem,” he added.

The MyAERO TVET 2025 Symposium aims to enhance workforce development in the aerospace industry through collaborations between the government, industry players, and educational institutions.

The event also saw the signing of several memoranda of understanding (MoUs) between the government and industry players to strengthen training programmes and advance aerospace technology development.

Source: Bernama

Malaysia must fully leverage its strong aerospace ecosystem – MITI

PENANG has welcomed a major boost to its industrial landscape with the official opening of M.A.i Automation Technology Malaysia Sdn Bhd, the first production facility in Malaysia by M.A.i, a leading German specialist in customised automation solutions.

Strategically located in Jalan Jelawat, Seberang Jaya, the new facility strengthens M.A.i’s global footprint and enhances its presence in Southeast Asia.

With over 25 years of expertise spanning the automotive, medical, plastics, electronics, and new energy sectors, the company aims to leverage Penang’s robust infrastructure and skilled workforce to drive innovation.

Speaking at the launch ceremony, M.A.i Automation Technology Malaysia Sdn Bhd chief executive officer Andreas Forster described the expansion as a significant milestone in the company’s international growth strategy.

“This cutting-edge facility in Penang will serve as a regional hub for automation innovation and manufacturing excellence.

“Our engineering teams here will develop customised automation solutions while maintaining the high standards that have defined M.A.i since its founding in 1999,” Forster stated.

He added that the Penang facility will complement M.A.i’s German headquarters while extending its global reach, positioning the company at the forefront of automation advancements in Southeast Asia.

Forster highlighted that the decision to establish a presence in Penang was driven by its strategic location, well-developed infrastructure, and access to a pool of highly qualified professionals.

“The new branch will work closely with our German headquarters to leverage synergies and drive innovation, ensuring we continue delivering world-class automation solutions,” he said.

M.A.i chief executive officer Stefan Woldrich underscored the significance of the Malaysian expansion as part of the company’s broader strategy.

“Our headquarters in Kronach, Germany, remains the core of our innovations, strategic decisions, and production.

“We continuously invest in expanding and modernising our German operations, with further expansions planned,” he said.

He added that the new Malaysian facility would allow M.A.i to efficiently cater to the growing demand in Southeast Asia, further strengthening its worldwide network.

“This expansion enables us to enhance our global presence while capitalising on the strengths of all our locations,” Woldrich remarked.

Meanwhile, Malaysian Investment Development Authority (Mida) deputy chief executive officer Sivasuriyamoorthy Sundara Raja, who was also present, congratulated M.A.i on its new venture.

He emphasised how the company’s establishment aligns with Malaysia’s National Investment Aspirations (NIA).

“This milestone highlights Malaysia’s growing prominence in the global industrial sector.

“M.A.i’s decision to invest here reflects confidence in our economic direction and commitment to high-value job creation and sustainable growth,” he said.

Also present at the launch were Ambassador of the Federal Republic of Germany to Malaysia Dr Peter Blomeyer, Honorary Consular of the Federal Republic of Germany in Penang Datuk Hans Peter Brenner and Penang Mida director Muhammad Ghaddaffi Sardar Mohamed.

Source: Buletin Mutiara

German automation firm M.A.i opens first production facility in Penang

TOA Paint Products Sdn Bhd, a regional player in the paint and coating industry, is ramping up its production capacity, with its Nilai, Negeri Sembilan, plant expected to produce up to two million gallons annually.

Country manager Thomas Lai said the expansion comes as the company seeks to meet increasing market demand while maintaining cost efficiency.

Despite rising raw material prices, he said, TOA Paint has committed to keeping prices stable throughout 2025, focusing on internal cost optimisations rather than passing the burden onto consumers.

“Our group treasury actively manages forex risks daily, ensuring that despite currency fluctuations in Southeast Asia, our overall product gross profit margin remains strong,” he told SunBiz following the launch of TOA Paint’s new product line recently.

Lai said TOA Paint is diversifying its product portfolio. “The company confirmed plans to introduce new products every year, potentially expanding into categories beyond paints and coatings, such as adhesives and industrial chemicals.”

TOA Paint has established itself as the market leader in Thailand and is now looking to expand its dominance across Southeast Asia, he said.

“With a strong presence in key regional markets, the company is strategically investing in innovation, sustainability and advanced manufacturing capabilities to strengthen its competitive edge. As demand for high-performance and eco-friendly coatings rises, TOA is well positioned to capture new growth opportunities,” he added.

Lai highlighted that sustainability remains a core focus for TOA Paint, which is making efforts to incorporate eco-friendly raw materials, reduce volatile organic compound emissions and improve energy efficiency across its operations.

“These initiatives align with global trends favouring greener construction materials and sustainable industrial practices.

“The company is also actively engaged in corporate social responsibility programmes, supporting local communities through skill development initiatives and education on environmentally responsible painting solutions,” he said.

Additionally, TOA Paint is expanding its offerings in marine coatings, a crucial segment in the shipping and offshore industries.

Lai said the company’s newly developed marine paint products are designed to reduce maintenance costs, enhance fuel efficiency and minimise environmental impact by lowering carbon emissions. “As stricter regulations drive demand for sustainable maritime solutions, TOA Paint’s innovations in this sector position it as a key player in the future of eco-conscious coatings.”

TOA Paint also focuses on educating consumers about proper marine paint applications, ensuring that users maximise the lifespan and effectiveness of their coatings, Lai disclosed.

“While our marine paint products are designed for a wide range of vessels, including fishing boats, yachts, and catamarans, many customers lack awareness of essential anti-fouling techniques. By providing guidance on correct application methods, TOA aims to enhance product performance, reduce maintenance costs, and support sustainable marine practices.”

Lai said TOA Paint’s localised research and development (R&D) teams provide a competitive edge over global brands, allowing the company to develop products that cater to regional climate conditions, customer preferences, and regulatory requirements. “By having R&D teams based in key markets across Southeast Asia, TOA can quickly adapt formulations to suit varying levels of humidity, temperature, and environmental factors that affect paint performance.”

In addition, the company’s deep understanding of local market dynamics allows it to outmanoeuvre global competitors, according to Lai.

He said competitors often rely on standardised formulations that may not be as effective in Southeast Asia’s diverse conditions.

“By continuing to invest in localised innovation, TOA strengthens its position as a dominant regional player while reinforcing its commitment to sustainability and performance-driven solutions,” Lai added.

Source: The Sun

TOA Paint ramping up production capacity while keeping prices stable

Sarawak is scaling up its commercial green hydrogen production by leveraging on its abundant hydropower resources to meet Asia’s growing demand for clean fuel, Sarawak Premier Tan Sri Abang Johari Tun Openg said.

He said the state’s partnership with Japan, South Korea and China had expanded Sarawak’s hydrogen supply chain to position itself as a leader in the Asia-Pacific green hydrogen economy, while integrating Carbon Capture Utilisation and Storage (CCUS) to unlock new low-carbon economic opportunities.

“We will continue engaging with global stakeholders to grow low-carbon industries, develop sustainable infrastructure and drive innovation in clean energy solutions,” he said when delivering a lecture at the Institute of Southeast Asian Studies (ISEAS) — Yusuf Ishak Institute in Singapore on Monday.

According to him, Sarawak’s goal is to boost electricity generation capacity to 10 Gigawatts (GW) by 2030 and 15GW by 2035, to strengthen its position as a green energy powerhouse in Asean to support industries, advance green technologies and enable regional electricity exports.

“Sarawak aims to be the battery of Asean by supplying clean energy and enhancing cross-border interconnectivity. Through the Asean Power Grid initiative, we are strengthening regional energy security while exploring storage solutions to optimise supply and distribution,” he said.

In his lecture entitled ‘Envisioning a Low-Carbon Future: Sarawak’s Journey Towards Sustainable Development’, Abang Johari said strong policies had driven Sarawak further into sustainable development, in addition to community engagement and global collaborations.

He said that in 2021, the state government laid down the Post Covid-19 Development Strategy (PCDS) 2030 which served as a roadmap for Sarawak to achieve prosperity, inclusivity and environmental sustainability in five years.

“At the midpoint of PCDS 2030, we are already seeing results, reflecting Sarawak’s ability to turn strategy into action. One of our most significant milestones is surpassing the World Bank’s high-income threshold ahead of schedule, reinforcing Sarawak’s position as an economic hub for trade and investment,” he said.

Sarawak had also introduced bold policy reforms, including the enforcement of a Land (Carbon Storage) Rules 2022 for CCUS, as well as the Natural Resources and Environment Ordinance 2024 to enhance resource governance.

“While policy reforms set the direction, their true impact lies in implementation. Sarawak is now putting these policies into action, accelerating industrial decarbonisation and advancing green innovation for a sustainable future,” he added.

Source: Bernama

Sarawak scales up commercial green hydrogen production — Abang Johari

Malaysia’s industrial sector is poised to maintain positive momentum in the near term, underpinned by resilient domestic demand and a gradual easing of supply chain constraints, said Public Investment Bank Bhd (PIBB).

In a note today, PIBB opined that downside risks to external demand remain pronounced, particularly in the second half of 2025 (2H 2025), as subdued global growth and persistent geopolitical uncertainties could dampen export-oriented industries.

“That said, sustained private consumption, targeted fiscal support for investment, and a measured recovery in key trading partners could provide some offsetting support to mitigate external pressures,” it said.

Kenanga Investment Bank Bhd (Kenanga IB) said the manufacturing index is expected to expand by 4.7% in 2025 compared with 4.4% in 2024.

“Growth momentum of manufacturing to continue in 1H 2025, supported by a low base effect from the early part of 2024, the ongoing tech upcycle, and strong domestic demand, backed by a steady labour market and record-high government spending under Budget 2025.

“We also believe Malaysia could benefit from a renewed trade war as Trump’s policy shift may drive trade and investment diversion,” it said.

Kenanga IB maintained Malaysia’s Q4 2024 gross domestic product (GDP) growth forecast at 4.6%, reflecting a second consecutive quarter of moderation weighed mainly by slower manufacturing expansion.

“That said, 2024 GDP growth is likely to settle at 5% and is projected to moderate to 4.8% in 2025,” it said.

CIMB Securities Sdn Bhd forecast 5% GDP growth for 2025.

“Given the softness of the 4Q 2024 industrial data, we expect GDP growth to come in at 5.1% for 2024, slightly missing our earlier estimate of 5.2%.

“For 2025, a sustained external demand recovery fuelled by the global tech upcycle, alongside strong investments and resilient consumer spending, is anticipated to sustain GDP growth at 5%, consistent with the government’s target of 4.5% to 5.5%.

“Nevertheless, downside risks remain elevated owing to uncertainties about a potential global trade war escalation, which may heighten global inflationary pressures, prompting central banks to adopt a more cautious approach to rate cuts, potentially dampening growth prospects,” it added. 

Source: Bernama

Malaysia’s industrial sector to maintain momentum in the near term: Analysts

Malaysia’s manufacturing sector is well-positioned to benefit from robust investment activities and resilient external demand, according to RHB Investment Bank Bhd.

Economist Chin Yee Sian highlighted that the sector’s positive outlook is driven by the strength of export-oriented industries and solid trade performance, contingent on favourable global economic conditions.

“This trend is further supported by continued strength in the global technology cycle and significant growth in global semiconductor sales.

“For 2025, global semiconductor sales are projected to grow by 11.2 per cent, following an estimated growth of 19 per cent in 2024,” she said in a note.

However, Chin cautioned that US protectionist policies could impact trade performance and the manufacturing sector in 2025.

She said rising protectionism and the potential escalation of trade tensions among major economies create uncertainty in the growth and export outlook.

This is due to the an abundance of uncertainties over tariff policies and the subsequent impact on global supply chains and inflation.

“While Malaysia’s export sectors are unlikely to be directly impacted by US protectionism (due to the low US trade deficit with Malaysia), the spillover through major trade partners, such as China, as well

as a potential slowdown in regional demand, could be substantial—especially in electrical and electronics (E&E) sector,” she said.

Chin added that a return to protectionist policies could escalate US-China tensions, affecting Malaysia’s role in China-centric supply chains.

To mitigate risks, she said Malaysia may strengthen ties with trade blocs like Regional Comprehensive Economic Partnership (RCEP), BRICS and Asean, while its domestic economic strength could help buffer external shocks.

In the medium term, she said Malaysia might potentially benefit from China’s efforts to reroute its manufacturing and export operations, given its significant role as an E&E exporter.

Despite short-term volatility, industrial production index (IPI) grew 4.6 per cent in December with strong manufacturing sector output.

Chin said the Malaysia’s gross domestic product growth is expected to sustain at 4.8 per cent in the fourth quarter of 2024, which will be announced on Feb 14.

Source: NST

Local manufacturers to gain from robust investment activities, rising demand

Sabah is set to become a major energy hub in South-east Asia with the launch of the US$2bil (RM8.88bil) Oil and Gas, Energy Hub Project at the Sipitang Oil and Gas Industrial Park (Sogip).

Chief Minister Datuk Seri Hajiji Noor said the project would play a pivotal role in Malaysia’s energy and industrial strategy.

“Sogip will serve as a catalyst for further growth in the energy sector, which is crucial for Sabah’s sustained economic growth.

“Most importantly, this project will open up more opportunities for collaboration, innovation and development in the oil, gas and energy sector, which will benefit both the industry and local communities,” he said at the launch of the project here yesterday.

Hajiji said the Sogip development would emphasise environmental sustainability, in line with the government’s initiative towards reducing its carbon footprint and integrating cleaner energy sources such as liquefied natural gas, among others.

He said the energy storage and distribution systems within Sogip are being developed to support Malaysia’s long-term renewable energy goals.

By ensuring a steady supply of natural gas and other lower-carbon fuels, Sogip – located some 150km from here – could help bridge the transition from fossil fuel dependency to greater adoption of renewables, such as solar and wind power, in Malaysia’s energy mix, he added.

The project is a collaboration between Sabah Oil and Gas Development Corporation (SOGDC), which manages Sogip, and Gibson Shipbrokers Limited – a maritime, energy and associated industries speciality company.

To be done in two phases, it would see the construction of a state-of-the-art port to support energy transportation and trade activities, among others, utilising an 80% local workforce.

Hajiji said the successful implementation of the project would not only enhance Malaysia’s domestic economy but also support regional energy security and boost international trade.

“With strong support from both private sector partners and the government, Sogip is anticipated to attract additional investments in energy infrastructure, technological advancements and industrial expansion,” he said, adding it would also offer job opportunities, skills training and community empowerment.

“As Malaysia continues to strengthen its presence in global energy markets, Sogip will play a strategic role toward economic resilience, energy independence and sustainable industrial growth,” he said.

He reminded investors to prioritise the employment of Sabahans in all projects and operations within the state while urging industry players to comply with this fundamental requirement.

SOGDC chairman Datuk Seri Rahman Dahlan said the company had been tasked with developing the oil and gas industry in Sabah, and today, has received some Us$2bil worth of investments from countries like Singapore, the United Kingdom, the Philippines, Japan and Saudi Arabia.

“This is exciting because it will place Sabah as a forward storage hub for major Middle Eastern producers.

“So, for example, if they want to sell their oil to China, Japan or South Korea, they do not have to wait for the supply from Middle Eastern countries,” he said.

This project is scheduled to start its first phase this year.

Source: The Star

Sabah on track to become regional energy hub

Malaysia’s manufacturing sector is well-positioned to benefit from robust investment activities and sustained external demand, RHB Investment Bank Bhd (RHB IB) said.

However, in a note today, the bank expressed caution over the potential impact of protectionist policies under the new United States (US) administration, which could affect trade performance and the manufacturing sector in 2025.

“The manufacturing sector in Malaysia is expected to be supported by the resilience of export-oriented industries and trade performance, provided our base case for positive global economic prospects materialises.

“This trend is further reinforced by continued strength in the global technology cycle and significant growth in global semiconductor sales,” it said.

For 2025, it said global semiconductor sales are projected to grow by 11.2 per cent, following an estimated growth of 19 per cent in 2024.

“On the downside, we remain wary of potential negative implications for Malaysia’s trade and manufacturing outlook amid rising protectionism and escalating trade tensions among major economies,” it said

According to the bank, the growth and export outlook remains uncertain due to potential shifts in tariff policies and their impact on global supply chains and inflation.

While Malaysia’s export sectors are unlikely to be directly affected by US protectionism, given the country’s low trade deficit with the US, the indirect impact-through major trade partners such as China and a potential slowdown in regional demand, could be substantial, especially in the electronics and electrical (E&E) sector, RHB IB said.

“A return to protectionist policies could heighten US-China tensions, affecting Malaysia’s role in China-centric supply chains.

“To mitigate risks, Malaysia may strengthen ties with trade blocs like the Regional Comprehensive Economic Partnership, BRICS, and ASEAN, while its domestic economic strength could help buffer external shocks,” it said.

In the medium term, Malaysia could benefit from China’s efforts to reroute its manufacturing and export operations, given its significant role as an E&E exporter, the bank added. 

Source: Bernama

Manufacturing sector to benefit from robust investment – RHB IB

Proton Holdings Bhd’s electric vehicle (EV) assembly plant in Tanjung Malim will mark a new chapter in strengthening the development of the Automotive High Technology Valley (AHTV), said Perak Menteri Besar Datuk Seri Saarani Mohamad.

He said Proton’s confidence in AHTV has created over 3,000 job opportunities for the people of Tanjung Malim, thereby strengthening the country’s automotive industry ecosystem.

“Therefore, I see the construction of this Proton EV plant as not just an assembly facility, but an investment for the future.

“It is the first plant in Malaysia specifically built for the assembly of new energy vehicles; reflecting our commitment to green technology and the advancement of the national automotive industry,” he said in his speech during the plant’s groundbreaking ceremony today.

Proton board member Ahmad Jauhari Yahya and Proton deputy chief executive officer Roslan Abdullah were also present.

Proton’s RM82 million assembly plant will produce various NEV models for the local and export markets.

The first phase is expected to be completed by the end of 2025 with a capacity of 20,000 units per year. Once completed, it will produce various models based on the Global Modular Architecture (GMA) platform, starting with the Proton e.MAS 7, marking a milestone as the first EV model from a Malaysian automotive brand.

Saarani highlighted that Malaysia has a strong automotive ecosystem, expertise in semiconductors and automotive electronics, as well as government initiatives such as the installation of 10,000 EV charging stations by 2025.

“This uniqueness not only provides a competitive edge but also attracts strategic investments from major automotive companies like Proton, further strengthening Malaysia’s position in the EV industry,” he said.

Saarani added that the state government is confident that strong connectivity and infrastructure are crucial in advancing the high-tech industry.

He further stated that following the West Ipoh Span Expressway (WISE) project, which connects Gopeng and Kuala Kangsar, Perak has long-term plans to enhance its logistics network.

“One of the key initiatives is to ensure that the AHTV in Tanjong Malim is connected to the Lumut Maritime Industrial City (LuMIC) in Manjung through the construction of a new highway to support the industrial ecosystem comprehensively,” Saarani said.

Source: Bernama

Proton’s EV plant enhances AHTV, creates 3,000 jobs opportunities – Saarani

The risk of negative impact on semiconductor export performance to the United States (US) following the implementation of tariffs by President Donald Trump is seen as minimal for the time being, said the Ministry of Investment, Trade and Industry (MITI).

Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said this is because Malaysia was excluded from the recent tariff increase imposed on several countries.

“Additionally, investment records also show that investments from the US remain strong, as the country is among the largest investors, totalling RM5.1 billion in the third quarter of 2024,” he said during the Minister’s Question Time in the Dewan Rakyat today.

Tengku Zafrul was responding to Datuk Ku Abd Rahman Ku Ismail (PN-Kubang Pasu), who asked MITI to outline the government’s steps in addressing geopolitical issues and global trade uncertainties, particularly the possibility of tariff increases that would affect Malaysia’s exports, especially to the US.

The minister said that Malaysia also signed a memorandum of cooperation on semiconductor supply chain resilience with the US on May 10, 2022. 

He said this agreement reflects the ongoing commitment of both countries to ensure a strong and resilient semiconductor supply chain and strengthen economic and strategic ties between Malaysia and the US.

“Therefore, the ministry is confident that existing investors from the US will remain in Malaysia and continue to grow to strengthen their global supply chain,” he said.

Tengku Zafrul said that the US is Malaysia’s third-largest trading partner in 2024, with a trading volume of RM324.9 billion, accounting for 11.3 per cent of Malaysia’s total trade.

“Exports to the United States amounted to RM198.6 billion, equivalent to 13.2 per cent of Malaysia’s total exports, while imports from the United States reached RM126.3 billion, equivalent to 9.2 per cent of Malaysia’s total imports.

“In terms of investment, the US is among the largest investors, and so far, Malaysia has become the preferred investment destination for more than 600 American companies,” he said.

In this regard, Tengku Zafrul said the government is proactively trying to maintain and further strengthen the good and dynamic bilateral trade and investment relations with the US to avoid tariff increases like those imposed on China, Canada, and Mexico.

The government also said it would ensure that Malaysia remains a reliable trading and investment partner for all its partners, including the US.

“This includes through a conducive and investor-friendly investment ecosystem, effective export control regulations and strategic trade management, as well as compliance with international standards that reassure investors,” he said.

Source: Bernama

Trump’s tariff have minimal negative impact on semiconductor exports to the US at this time – MITI

The industrial sector is anticipated to remain resilient in spite of global economic uncertainty, driven by robust investor interest in sophisticated manufacturing, logistics, and warehousing.

Positive government policies and growing investor confidence have contributed to a notable increase in industrial investment volumes in emerging Southeast Asian economies, including Malaysia, according to Knight Frank’s most recent Asia-Pacific outlook study.

Malaysia’s aggressive policies, advantageous location, and highly qualified workforce will further cement its position as a top location for manufacturing and industrial investments as companies reassess their supply chain plans.

The country’s position as a major industrial hub is expected to be strengthened as a result of manufacturers diversifying their production sites due to escalating global trade tensions, particularly the possibility of greater tariffs under a Trump government, the report states.

According to Allan Sim, executive director of Land and Industrial Solutions at Knight Frank Malaysia, manufacturers will work to reduce risks, control expenses, and look into new production markets in 2025 as trade tensions are expected to dominate the news, mainly due to Trump’s proposed tariff hikes against other nations.

“Malaysia’s industrial sector growth, driven by supportive government initiatives promoting industrialisation, infrastructure improvement, and the establishment of new planned industrial parks integrating AI elements, is set to further transform the country’s industrial landscape.”

The report also highlighted the increasing role of AI and automation in shaping the industrial sector, particularly in logistics, warehousing, and advanced manufacturing.

The integration of AI-powered industrial parks is expected to enhance operational efficiencies, predictive maintenance, and sustainability efforts, making Malaysia an attractive destination for both local and foreign investors.

Knight Frank Malaysia group managing director Keith Ooi said, “As Malaysia transitions into a high-tech, high-value manufacturing hub, we are witnessing a shift towards more sophisticated industrial facilities that align with global supply chain trends.”

Ooi said that as companies reassess their supply chain strategies, Malaysia’s forward-thinking policies, strategic position, and skilled labour force will strengthen its standing as a top choice for industrial and manufacturing investments.

Source: NST

Malaysia’s industrial sector to stay robust despite global uncertainty

Biofuel producer BAC Renewable Energy Sdn Bhd (BAC RE) has entered into a deal to develop a biofuel storage facility and export hub at Tanjung Langsat Port in Johor.

The company on Thursday inked a memorandum of agreement with Singapore-based bulk liquid storage services provider Dovechem Group and TLP Terminal Sdn Bhd, the operator of Tanjung Langsat Port, for the project known as BAC RE Asean Biofuels Storage and Exporting Hub.

BAC RE will serve as project developer, Dovechem as landowner as well as the facility operator, and TLP Terminal — which is wholly owned by Johor state investment arm Johor Corp — as overall port operator.

The development will be undertaken in phases, with Phase 1 comprising an initial bio-liquefied natural gas (BioLNG) storage capacity of 7,500 cubic metres, and an annual production and handling capacity of 33,000 tonnes of BioLNG.

Phase 1 is estimated to cost around RM150 million, according to BAC RE director and shareholder Hasnoel Ramly. He said the project has secured financial backing, but did not elaborate.

“We are looking to have our first ship-to-ship (STS) fuelling by 2027,” he told The Edge when asked on the project’s development timeline.  

Subsequent phases of the development are projected to expand the facility’s total handling capacity to 350,000 tonnes of BioLNG annually. Phase 2 of the development will also include the storage and handling of biomethanol to expand the facility’s offerings.

“We estimate that the potential biogas-to-BioLNG supply from palm oil waste across the region could reach 3.3 million tonnes annually. The hub is designed to capitalise on this abundant feedstock supply and facilitate the broader adoption of BioLNG in maritime operations,” the companies said.

European Delegation to Malaysia deputy head Timo Goosmann, who graced the signing ceremony as a guest of honour, said the BAC RE Asean Biofuels Storage and Exporting Hub aligns with the decarbonisation initiatives currently being undertaken by the European Union.

Hasnoel said Tanjung Langsat Port was selected due to its strategic location near the Straits of Malacca and Singapore, the world’s largest bunkering port. He also pointed out that Tanjung Langsat Port is one of three ports in the Johor-Singapore Special Economic Zone (JSSEZ).

The investment incentives provided in JSSEZ will act as an enabler to grow the biofuel industry, while the biofuel storage facility and export hub at Tanjung Langsat Port will act as the necessary infrastructure to connect the envisioned biofuel supply to the rest of the world, Hasnoel explained.

“It is projected to attract investments in green technology and engineering estimated between RM1.2 billion and RM1.5 billion. This project is not just about us, it is about unlocking new opportunities and creating a broader ecosystem [for biofuels],” he added.

According to the Companies Commission Malaysia, BAC RE is equally owned by Hasnoel and Azhim Hadi Daud. The company owns and is developing several biomass and biogas facilities across Perak, Terengganu, Pahang and Johor.

Source: The Edge Malaysia

BAC Renewable Energy to develop biofuel storage and exporting hub at Tanjung Langsat Port, Johor

Malaysia’s industrial sector is set for continued growth in 2025, supported by government initiatives, infrastructure developments, and the integration of artificial intelligence (AI) in industrial parks, according to Knight Frank Asia-Pacific’s latest outlook report.

The report titled “Charting new horizons – 25 trends shaping 2025” highlighted how global trade tensions, particularly the possibility of higher tariffs under a new Trump administration, are driving manufacturers to diversify production, making Malaysia an attractive alternative.

“With trade tensions likely to take centre stage in 2025, primarily in response to Trump’s planned tariff increase, manufacturers will strive to limit risks, manage costs, and explore new markets for production,” Allan Sim, senior executive director of Land and Industrial Solutions at Knight Frank Malaysia, said in an accompanying statement.

He said Malaysia’s strategic location, government incentives, and evolving industrial landscape position it as a key destination for manufacturers reassessing supply chains.

The report also highlighted the increasing role of AI and automation in shaping Malaysia’s industrial sector, particularly in logistics, warehousing, and high-value manufacturing.

“As Malaysia transitions into a high-tech, high-value manufacturing hub, we are witnessing a shift towards more sophisticated industrial facilities that align with global supply chain trends,” said Keith Ooi, Group Managing Director of Knight Frank Malaysia.

“AI-integrated industrial parks will be a game-changer, offering enhanced operational efficiencies, predictive maintenance capabilities, and optimised resource management, ultimately attracting both domestic and foreign direct investments.”

Malaysia has seen a surge in industrial investment, with strong interest in logistics, warehousing, and advanced manufacturing.

The report noted that Southeast Asia’s emerging markets, including Malaysia, are benefiting from shifting global supply chains and favourable government policies.

Despite economic uncertainties, Malaysia’s industrial sector is expected to maintain resilience, with AI-driven infrastructure and trade realignments reinforcing its position as a preferred hub for industrial and manufacturing investments.

This comes as Minister of Investment, Trade, and Industry Datuk Seri Tengku Zafrul Abdul Aziz said earlier that the rise of new advancements in artificial intelligence (AI) platforms, such as China’s DeepSeek, won’t jeopardise Malaysia’s data centre industry.

Instead, he said such advancements could even boost demand for them locally.

Source: Malay Mail

Knight Frank: Malaysia’s industrial sector poised to benefit from AI integration, global trade realignments in 2025

Malaysia’s manufacturing sector is likely to sustain positive growth, buoyed by resilient domestic demand and gradual improvements in supply chain conditions. 

Public Investment Bank Bhd (PublicInvest Research), however, said downside risks to external demand remain elevated, mainly in the second half of 2025 (2H25), as subdued global growth prospects and escalating geopolitical tensions weigh on export-oriented industries. 

“Heightened uncertainty surrounding global trade policies, especially following Donald Trump’s policy stance, could add further pressure on industrial activity. Despite these challenges, steady domestic consumption, fiscal measures supporting investment, and a gradual recovery in key trading partners may help mitigate external headwinds,” it said in a note.

It said the manufacturing sector remained under pressure at the start of 2025, with firms reporting continued moderations in both production and new orders. 

In response to subdued demand conditions, manufacturers cut selling prices for the first time since June 2023, marking the sharpest reduction since January 2015, according to S&P Global.

Purchasing activity was scaled back and employment moderated, with firms utilising spare capacity to clear outstanding backlogs. 

“According to S&P Global, the latest purchasing managers’ index (PMI) reading indicates that gross domestic product (GDP) growth remains on a positive trajectory, albeit at a more moderate pace, while also signalling sustained year-on-year improvements in official manufacturing output.”

The manufacturing PMI edged up slightly to 48.7 in January (Dec 2024: 48.6). 

Mong forward the global semiconductor sector, it said AI-related demand is likely to remain a key growth driver in 1H25, providing near-term support. 

However, sectoral headwinds are expected in 2H25, as weaker chip shipments in non-AI segments, sustained trade restrictions, and softer demand in key end markets, including automotive and industrial applications, could weigh on momentum.

In a separate note, Affin Hwang Investment Bank said manufacturers reported that demand remained weak, which may be attributed to uncertainty in the global economic demand. 

Nevertheless, manufacturers remained positive at the start of the year and expect a higher output over the next twelve months.

“Hence, we believe that further recovery in external trade activities and resilient domestic demand may spur the demand for manufactured goods in the near term,” it added.

Additionally, MIDF Research maintained a positive outlook for Malaysia’s manufacturing, which will be spurred by growing domestic spending, supported by rising employment and household income, higher minimum wages, and government salary hikes. 

The global tech upcycle is also poised to support the manufacturing sector. 

“However, we opine the strength of external demand could be constrained by intensified global trade tensions following higher tariffs imposed by the US and the retaliatory actions by other countries,” it said.

Source: NST

Positive growth for Malaysia’s manufacturing sector

Malaysia has taken several proactive measures to ensure that its electrical and electronics (E&E) exports to the United States remain unaffected amid the global trade war due to tariffs under President Donald Trump’s administration.

Prime Minister Datuk Seri Anwar Ibrahim said Malaysia continues to engage with the US to clarify that it complies with all regulations and does not violate any agreements or conditions set by the United Nations.

“It is true that Malaysia’s exports of E&E, semiconductors, and chips to the US are significant, accounting for approximately 26 per cent of US demand. I agree that we cannot take this lightly.

“That is why we have taken several early measures. First, we continue to engage with the US to clarify that we comply with all regulations and do not violate any agreements or conditions set by the United Nations.

“Second, we are expanding our trade networks to ensure that our exports are not overly dependent in just a few countries but are diversified into other markets,” he said during the Prime Minister’s Question Time in the Dewan Rakyat today.

He added that a high-level committee, overseen by the Investment, Trade and Industry Minister is closely monitoring the issue so that any potential impact remains minimal compared to the current trade pressures.

He was responding to a question from Datuk Seri Doris Sophia Brodi (GPS-Sri Aman) who asked about the implications of these trade sanctions on Malaysian companies, particularly in the E&E sector related to semiconductor chip manufacturing and how Malaysia is preparing for it.

Source: NST

Malaysia has taken steps to protect E&E exports amid US tariffs – PM

The additional tariff on China’s medical and surgical gloves is unlikely to significantly boost Malaysian players’ ability to capture global market share from Chinese players, HLIB Research said.

In the medium to long term, the firm said Chinese players will instead shift their focus to Europe and Asia from the US market (merely a shift in customer profile between Malaysian and Chinese players).

“However, when trade is diverted to Malaysia, we believe US medical rubber glove distributors are likely to prioritise reputable companies, particularly the listed Big 4 and established business relationships with proven track records and it could take at least three months of qualification procedures for a new business relationship.

“Hence, we see Hartalega Holdings Bhd and Kossan Rubber Industries Bhd as clear beneficiaries, given their listing status and having relatively higher exposure to US customers,” it said.

In the short term, HLIB Research said the tariff is unlikely to create another round of higher-than-expected tariff-led in the average selling price (ASP) in US dollars for Malaysian glove makers, as seen in the fourth quarter of 2024 (4Q24).

“This is because US glove distributors have already re-established their supply chains in Malaysia, unlike in mid-September 2024 to 4Q24, where US glove distributors rushed to re-establish supply chains in Malaysia, which has allowed local glove makers to strengthen their bargaining power.

“For perspective, assuming all Chinese medical rubber gloves were diverted to Malaysia, tariff-related shifts could only result in an incremental glove demand of 22 to 28 billion pieces per year.

“This would just account for seven to nine per cent of Malaysia’s total supply in 2025, which only represents a four per cent rise from the 2024 level,” it added.

The firm maintained its “Neutral” outlook on the gloves sector.

Source: NST

US tariffs on China’s medical gloves unlikely to benefit Malaysian players

Malaysian glove makers and semiconductor players are expected to benefit from the imposition of higher tariffs by the United States on imports of Chinese goods, said Kenanga Investment Bank Bhd.

In a research note yesterday, it said local glove makers would benefit from the broadened average selling price (ASP) discount on Chinese glove imports in 2025 following the US imposition of an additional 10% tariff to the current 50% on China glove exports into the US.

“For illustration purposes, a 50% plus 10% tariff hike is expected to raise Chinese glove producers’ ASP to US$27US$29 (RM121-RM130) per 1,000 pieces (from an assumed base case ASP at US$17-US$19 per 1,000 pieces),” it said.

Therefore, it said, this positions Malaysian glove makers’ ASPs of between US$18 and US$20 per 1,000 pieces at a steep 25%-32% discount versus the Chinese alternative. We keep our 2025 forecast ASPs at US$20-US$21 in our earnings model for now.

“Any volume loss in non-US markets can be offset by higher demand from the US, which historically commanded higher ASP than non-US markets, and the US had historically accounted for 35%-40% of Malaysia’s total glove volume,” it said.

The investment bank believes Hartalega Holdings Bhd is the biggest beneficiary because the US market typically accounts for 50% of its sales volume.

Regarding the semiconductor benefit from US tariffs, it said Malaysia, as a key player in outsourced semiconductor assembly and test and back-end semiconductor services, would stand to benefit from supply chain diversification as global technology firms may accelerate the adoption of a more aggressive China+1 strategy to reduce reliance on China.

“Over the medium term, Malaysian firms are well positioned to capitalise on the structural shift in global supply chains,” it said.

However, Kenanga Investment Bank said Malaysia may experience varying degrees of impact depending on supply chain realignments, trade policies and broader geopolitical dynamics.

Sourec: Bernama

Malaysian glove, semicon players set to gain from US tariffs move

The company is driving progress while building a lasting legacy through AI advancements and community initiatives

MICRON Technology Inc, a global leader in memory and storage solutions, is positioning Malaysia at the heart of the artificial intelligence (AI) revolution while driving sustainability and local economic growth. 

Since its establishment in 2010 (in Muar, Johor), 2018 (Prai, Penang) and 2020 (Batu Kawan, Penang), the company has grown to employ 5,740 people, including 4,700 in manufacturing, 350 in research and development (R&D) and 390 in global hub roles such as finance, IT and people services. 

Bearing its biggest footprint in Malaysia with 145,000 sq m, the Batu Kawan facility serves as the Centre of Excellence for solid state drives (SSD) and is a qualification site for cutting-edge memory products. 

In total, Micron Technology’s footprint in Malaysia stood at 170,000 sq m. 

Assembly and Test NAND Operations corporate VP Amarjit Sandhu shared how the site contributes to the company’s global strategy and local impact. 

“Malaysia is not just a manufacturing hub; it is a cornerstone of our global strategy,” he said during a visit by The Malaysian Reserve (TMR) to Micron Malaysia’s facility in Batu Kawan recently. 

Key products produced in Malaysia include NAND flash memory, compute DRAM (dynamic random-access memory), client and enterprise SSDs and DIMMs (dual in-line memory modules). 

Globally, Micron recorded US$25.1 billion (RM112.2 billion) in revenue for financial year 2024 (FY24), solidifying its position as a leader in memory and storage solutions. 

Its product portfolio includes high-band-width memory (HBM), DRAM, NAND flash storage and SSDs, all of which are indispensable in powering today’s data-intensive applications. 

Headquartered in Idaho, US, the company has operated for over 45 years across 18 countries, boasting 11 manufacturing sites and 13 customer labs. It has amassed a portfolio of over 58,000 patents and employs approximately 50,000 people worldwide. 

Leading the AI Revolution 

At the heart of Micron Technology’s innovation is its ability to power the AI ecosystem. As AI applications like ChatGPT revolutionise industries, memory and storage solutions have become the backbone of these technologies. 

Micron Malaysia manufactures products like HBM3E and DDR5 memory, which are specifically designed to meet the demanding requirements of AI workloads. 

The HBM3E, for example, delivers 36 gigabytes of memory per unit, enabling higher-precision training and data processing with 30% lower power consumption compared to previous generations. 

Meanwhile, DDR5 memory boasts a 45% increase in bit density and consumes 24% less power in data centre environments. 

The company’s expansion memory and SSDs further enhance AI applications by providing high-capacity, low-latency solutions. 

These innovations allow AI models to process vast datasets efficiently, supporting breakthroughs in machine learning, natural language processing and more. 

Highlighting this, Amarjit explained that Micron Technology’s memory and storage products play a crucial role in powering the AI revolution, enabling applications that would otherwise be impossible. 

On the industry’s point of view, Amarjit revealed that AI PCs are expected to enter the market soon, highlighting that it will create a new wave of opportunities for the semiconductor industry. 

He also mentioned the impact of quantum computing, saying that whether AI or quantum technologies dominate, Micron Technolog y’s memory and storage products will remain indispensable. 

“Both technologies rely heavily on what we provide, ensuring our continued relevance,” he added. 

Micron Technology’s investments in AI technology are not just limited to Malaysia. Globally, the company has been driving innovation through advanced R&D efforts, including the development of new HBM products for next-generation AI processors, ensuring the company remains at the forefront of the industry. 

Amarjit added that approximately 13% of the world’s semiconductor components come from Micron Technology, with a substantial portion produced in Malaysia. These components are critical to AI infrastructure, supporting high-density memory modules, edge devices and data centres. 

“Malaysia plays a significant role in the global AI ecosystem,” he said, highlighting the country’s position as a manufacturing hub alongside major industry players like Broadcom Inc, Texas Instruments Inc and STMicroelectronics NV. 

Nevertheless, Amarjit highlighted Micron Technolog y’s commitment to delivering products that cater to the growing sector. 

“We are all riding the AI wave, and the products we have today are gaining good traction. Execution is very important to meet current demands while preparing for new products for tomorrow,” he said. 

Micron Technology aims to match its focus on innovation with strong execution across critical areas such as productivity, cost management, quality and reliability. 

“We will continue to focus on introducing the latest and greatest products required by the market,” he added, emphasising Micron Malaysia’s dedication to staying ahead in the rapidly evolving technology landscape. 

Meanwhile, AI integration into consumer electronics, such as laptops, TVs and smart home devices, is also creating new opportunities for memory and storage products. 

“As consumer electronics become smarter, the demand for advanced memory and storage solutions will only increase,” he said. 

Amarjit pointed to features like AI-driven optimisation in TVs and smart appliances as examples of emerging trends. 

Concurrently, leveraging on IR4.0 innovations to enhance its manufacturing processes, Micron Technology has integrated Internet of Things sensors into its facilities. 

It enables real-time monitoring of speed, temperature and pressure to improve operational efficiency and product quality. Additionally, Micron Technology is developing remote operating centres to further streamline process management. 

Empowering Local Economy 

Micron Technology’s presence in Malaysia extends beyond its facilities. The company has cultivated a robust local ecosystem, working with over 700 vendors and spending more than RM2 billion locally between FY20 and FY24. 

This ecosystem includes materials suppliers, equipment manufacturers and electronic manufacturing services providers, most of whom are located within a 60km radius of Micron Technology’s sites. 

Key partners such as Jabil Inc, Plexus Corp and NationGate Holdings Bhd play a vital role in supporting Micron Technology’s operations while creating additional jobs and opportunities in the region. 

“Micron Technology’s investments have a multiplier effect, benefitting not just our company but the broader economy,” Amarjit said. 

The company also announced plans to expand its operations in Malaysia, signalling its long-term commitment to the region. 

This expansion includes further enhancements to its manufacturing capabilities and increased collaboration with local suppliers, which is expected to generate even more economic value. 

Investing in Talent Development 

Recognising that innovation requires a skilled workforce, Micron Malaysia has made significant investments in talent development. The company collaborates with 12 universities, polytechnics and training institutes to build a pipeline of science, technology, engineering and mathematics talent. To date, it has invested over RM8 million in these initiatives. 

Micron Technology provides scholarships, internship and R&D opportunities, allowing students to gain hands-on experience and access job opportunities upon graduation. 

The company also takes on 50 to 60 interns annually, with plans to convert many of them into full-time employees under its New College Graduates programme. 

This structured approach aligns with the scaling of its operations, ensuring that as the company grows, it continues to meet its workforce needs. 

Micron Malaysia currently operates with 18 distinct functions, including manufacturing, R&D, finance and human resources, all of which have evolving requirements that guide their strategic hiring efforts. 

Its diversity programmes are equally impressive, with commitments to increasing the representation of women in engineering through partnerships and outreach programmes. 

The gender ratio among workers at its three facilities is approximately equal, with a 50:50 balance. 

The company also hires individuals with disabilities, military veterans and women returning to the workforce after childbirth. 

Facilities have been adapted to meet the needs of employees with hearing impairments, ensuring inclusivity at every level. 

Further supporting the workforce is the Employee Resource Groups (ERGs), which offer initiatives tailored to different demographics, from tenured professionals to young graduates. 

76% of Micron Malaysia’s team members are part of at least one ERG, demonstrating the company’s commitment to employee engagement. 

“Our goal is to anticipate and adapt to the changing requirements of the industry while building a workforce that meets the needs of our future,” Amarjit said. 

Building Stronger Communities 

Micron Technology’s impact extends well beyond its facilities, demonstrating a strong commitment to community engagement. 

Since 2019, the company has donated RM6 million to marginalised communities, flood victims and frontliners, while also providing 150,000 meals to underprivileged groups through collaborations with organisations like Rise Against Hunger. 

To promote education, Micron Technology has distributed laptops to students from low-income families, implemented a school adoption programme for mentoring rural schools and partnered Teach for Malaysia, providing grants worth RM120,000. 

Additionally, the company has prioritised environmental conservation by planting 400 mangrove trees and organising beach cleaning efforts, collecting over 1,000kg of waste. 

It also runs the AquaConnect project in Johor, supplying water to 460 indigenous families. 

In 2024, 92% of Micron Malaysia employees volunteered in community programmes, contributing 34,000 hours of engagement and demonstrating a deeply ingrained culture of giving back. 

These efforts reflect Micron Technology’s dedication to building resilient communities and fostering positive societal impact. 

Sustainability at Core 

In terms of sustainability in the semiconductor industry, Micron Malaysia is setting new benchmarks with an investment of RM5 million in sustainability initiatives. 

The Batu Kawan facility operates on 100% renewable energy, a milestone equivalent to removing 24,000 vehicles’ emissions annually. 

Amarjit also revealed that the facility’s open parking area will soon be outfitted with solar panels, transforming it into a solar-covered parking space in the near future. 

One of the most unique initiatives is its urban farming programme, also in Batu Kawan. To date, it has harvested 75,000kg of produce, including “kangkung” and winter melon, with 30% of the harvest donated to local communities. 

According to Amarjit, the farm is fully maintained by the staff, fostering a sense of community while promoting environmental stewardship. 

In a few years, the farm is expected to begin harvesting durians, as the trees have already been growing for two years. 

Nationwide, Micron Malaysia’s facilities recycle water, saving the equivalent of 6,000 Malaysian households’ yearly consumption, and have achieved a 94% waste recycling rate. 

The company holds certifications such as LEED for energy efficiency and ISO 50001 for energy management. It has also received accolades like the National Energy Award and the Green Tech Champion title at the Life at Work Awards. 

Navigating Competitive Landscape

As a leading player in the global semiconductor industry, Micron Technology operates in a fiercely competitive environment dominated by some of the world’s most prominent tech companies. 

Regionally, Micron Malaysia faces competition from major players operating in Malaysia’s thriving semiconductor ecosystem. Intel Corp, with its investments in Penang and the Kulim Hi-Tech Zone, is strengthening its local production capabilities. 

Meanwhile, companies like ams OSRAM AG and Ferrotec (USA) Corp are also contributing to regional semiconductor growth. 

Furthermore, the government anticipates increasing investments from Chinese high-tech firms, potentially introducing new competitors to the market. 

Globally, Micron Technolog y’s main global competitors include Samsung Electronics Co Ltd, SK Hynix Inc, Western Digital Corp and Intel. 

Samsung dominates the DRAM market with a 44% share, while SK Hynix, which acquired Intel’s NAND business in 2020, holds 30% of the market and has seen strong growth in AI-focused semiconductors. Western Digital commands 18% of the enterprise SSD market and Intel competes across multiple segments, including memory and storage. 

Despite the intense competition, Micron Technology’s emphasis on innovation, sustainability and talent development ensures that it remains at the forefront of the industry. 

Its ability to anticipate and meet market demands, particularly in AI-driven applications, positions it as a vital contributor to the global and regional semiconductor ecosystem. 

Recent Global Development 

Since the Covid-19 pandemic, Micron Technology has significantly expanded its operations and strengthened its role in the global semiconductor industry. 

In January 2025, the company announced a SG$7 billion (RM22.79 billion) investment to build a HBM advanced packaging facility in Singapore to meet growing AI data centre demands. 

Around the same time, its consumer brand Crucial launched the P510 SSD, offering high-speed Gen5 NVMe performance for gaming and applications. 

In December 2024, Micron received US$6.165 billion from the US government under the Chips and Science Act to boost chip production, creating an estimated 20,000 jobs in New York and Idaho. 

Despite missing revenue projections for late 2024, Micron Technology’s stock rose 18% in early 2025, driven by advancements in HBM and data centre demand. 

Earlier in April 2024, Micron secured a US$6.1 billion Chips Act grant for a semiconductor campus in New York and a fab in Idaho. This followed its 2023 release of HBM3E memory, which improved performance by 50% with speeds of 9.6 Gbit/s per pin. 

On the local front, reports emerged in June 2024 that Micron Technology is considering establishing HBM production capacity in Malaysia, where it currently operates chip testing and assembly plants. 

This potential expansion is aimed at capitalising on the growing demand for AI-driven memory solutions, solidifying Malaysia’s role in Micron Technology’s global operations. 

Although it has not released any figure on its target for 2025, Amarjit assured that Micron Technology is focused on developing market-leading products with superior capacity, speed and energy efficiency, in order to stay ahead in the “highly competitive” and “brutal” industry. 

In December 2024, Micron Technology reinforced its strategic position in the AI chip market with a US$2 billion investment in Penang to enhance its manufacturing capabilities. 

This investment reflects the company’s commitment to meeting the increasing demand for high-performance components essential to AI systems, a market that continues to see intensified competition. 

These developments underscore Micron Technology’s commitment to growth, innovation and maintaining its leadership in the global semiconductor industry during the post-Covid era. 

Global Vision, Local Commitment

As Micron Technology continues to invest billions globally in R&D and manufacturing, Malaysia remains a critical part of its vision. 

The company has announced plans for further expansions, including enhanced manufacturing capacity and increased R&D efforts globally and regionally. 

“Micron Malaysia embodies the perfect balance between global innovation and local impact,” Amarjit said. 

The company’s dual focus on technological excellence and social responsibility sets it apart in the semiconductor industry. 

“We are here to do business, but we are also here to make a difference,” he added. 

The visit offered a glimpse into how Micron Malaysia is shaping the future of technology while staying rooted in its values. 

From groundbreaking AI advancements to meaningful community initiatives, the company is not just driving progress — it is building a legacy. 

Source: The Malaysian Reserve

Micron Malaysia powers AI revolution with sustainability, local impact

Fraser and Neave Holdings Bhd (F&N) remains committed to driving growth, enhancing route-to-market capabilities and optimising operational efficiencies while staying agile in response to market dynamics and geopolitical developments.

In a filing with Bursa Malaysia, the group said progress on the integrated dairy farm project in Gemas is on track, with Phase 1 infrastructure development advancing steadily in preparation for the arrival of livestock.

“Additionally, the development of the dairy manufacturing plant in Cambodia is progressing well to strengthen the Group’s presence in that market.

For the first quarter ended Dec 31, 2024 (1Q25), F&N said its revenue rose by 4.3% to RM1.39bil, mainly driven by festive sales in Malaysia and recovery in the domestic Thai economy, supported by tourist arrivals and increased sales in the Indochina market due to the availability of fresh milk supply.

Net profit in 1Q25 dipped marginally to RM169.02mil from RM170.74mil a year earlier.

Meanwhile, group operating profit for 1Q25 grew by 16.1% to RM243mil. “This growth is attributed to higher profits from F&B Malaysia and F&B Thailand, partially offset by start-up costs associated with the integrated dairy farm. Operating profits were bolstered by improved sales mix and lower input costs.”

F&N said the group’s strong performance in the first quarter was driven by festive sales in Malaysia and a recovery in the domestic Thai economy, supported by tourist arrivals and revitalised sales in the Indochina market due to the availability of fresh milk supply.

“Operating profit benefited from better sales mix and lower input costs.

“However, the expiration of the board of investment incentive for F&B Thailand has led to higher tax expenses and the incurrence of withholding taxes on dividends repatriated from Thailand.”

Looking ahead, the group said it recognises several risks, including geopolitical uncertainties, volatility in raw material prices and fluctuations in foreign currency.

“While minimal impacts are anticipated from recent regulatory changes such as minimum wage increases, service tax on logistics and the 40 sen increase in sugar taxes on sweetened beverages, the group remains vigilant.”

F&N said its mid-term strategy focuses on positioning Halal packaged foods and dairy as key growth pillars, along with ongoing efforts to create synergies within the group.

“With these initiatives, the group is confident in its ability to capitalise on emerging opportunities and navigate potential challenges ahead.”

Source: The Star

F&N remains focused on growth and expansion

AS the deadline for the end of incentives for fully-imported electric vehicles (EV) edges closer, carmakers are expected to accelerate plans to localise their EV supply chain and initiate local assembly to reduce costs and maintain price competitiveness.

Four key hotspots in Peninsular Malaysia have been identifed as actively attracting EV-related investments especially from Chinese players – Perlis, Perak, Pahang and Johor.

Beyond the local original equipment manufacturers such as Perodua and Proton, Malaysia has experienced a significant influx of new players in the automotive industry in recent years, with the majority coming from China.

Many of these newcomers have announced plans to establish EV assembly operations here including for export markets. However, EV assembly in the country remains in its infancy, with most operations currently limited to SKD or semi-knocked down assembly.

CLOCK IS TICKING

The government currently offers 100 per cent import duty and excise duty exemptions for fully imported or complete built-up unit (CBU) EVs, covering both battery EVs and plug-in hybrid EVs (PHEVs).

These exemptions apply to passenger vehicles including cars, vans and motorcycles, intending to make EVs more affordable and accessible to consumers.

The exemptions for passenger EVs are valid until Dec 31 this year.

Restrictions on importing CBU EVs priced less than RM100,000 are also set to expire at the end of 2025, potentially creating a freer market for EVs, provided carmakers can compete on costs.

These CBU incentives aim to boost EV adoption and serve as a transitional measure while the local EV market matures.

An industry observer said the government plans to shift its focus to incentivising local assembly or complete knocked down (CKD) operations of EVs, emphasising domestic manufacturing and development of EV supply chains.

This will increased localisation within the EV supply chain.

“The automotive industry is transitioning, driven by the rise of EV players, with current investments focusing on downstream areas like showrooms and service centres, as well as growing interest in EV assembly,” the observer said.

Automotive analyst Shamsul Yunos said while the country is far from the final chapter of the EV transition, the opening scenes seem to favour those who have built and etensive supply chain of batteries.

They are now pivoting that massive production capability, not just towards the transition to EVs but the overall shift towards renewable energy, he added.

KEY HOTSPOTS

Maybank Investment Bank Bhd automotive analyst Loh Yan Jin said there were several companies from China exploring EV investments in Perlis, particularly in the Chuping area near Padang Besar.

The Chuping Valley Industrial Area has been positioned as a hub for green industry, halal industry including pharmaceuticals, EV and renewable energyy.

“The EV industry, in particular, could benefit from the state’s proximity to Penang and Kedah, where the semiconductor industry is concentrated, as this provides an advantage in terms of logistics for the EV supply chain,” Loh said.

Perak, meanwhile, is positioning itself as a key player in the high-tech industrial sector, focusing on developing industrial park like the AHTV to attract EV assembly plants and battery recycling facilities.

The state is also leveraging its rich natural resources, particularly non-rare earth elements (NR-REE), by prioritising the export of value-added products such as magnets and components for EVs, rather than raw materials.

“One example of this is Perak’s exploration of a potential collaboration with Star Group Industries, a leading South Korean company with expertise in producing downstream products from REE.”

Additionally, Loh said, EcoNiLi Battery New Energy had launched a battery recycling plant in Perak in 2024, marking the first phase of its investment at RM50 million, with plans to invest another RM100 million in the second phase this year.

For Pahang, it is rapidly emerging as a key hotspot for EV investments, largely driven by the Malaysia-China Kuantan Industrial Park (MCKIP).

The park has become a magnet for Chinese EV manufacturers, bolstered by its strategic location near Kuantan Port, which facilitates seamless import and export operations.

To further attract investments, the state government offers attractive tax incentives for green technology, reinforcing its commitment to supporting the EV sector.

Currently, several key battery materials suppliers are already operational in MCKIP.

They include Camel Power (a supplier of batteries for ICE vehicles) and Elektrisola Group (which manufactures high-quality, fine, and ultra-fine enamelled copper wires used in automotive and industrial electronics).

Graphjet Technology, a producer of graphene and graphite which are critical materials for EV batteries and semiconductors, also plans to expand its presence in Kuantan.

In addition to these developments, Pahang is home to significant infrastructure such as the Pahang Automotive Park and the Hicom Automotive Manufacturers Plant, where several prominent automotive brands are assembled.

Notably, Mercedes-Benz began producing its all-electric EQS model at this plant in the first quarter of 2023, marking the first fully electric Mercedes EQ to be assembled in Malaysia.

Loh said the completion of the East Coast Rail Link (ECRL) by 2027 is expected to further enhance Pahang’s logistics network, solidifying the state’s attractiveness for investments.

“Perodua, for instance, plans to establish a logistics and vehicle assembly hub on 8.9 hectares in the East Coast Economic Region, utilising the ECRL’s Paya Besar Station for vehicle distribution within the region.”

The hub will also leverage Kuantan Port for shipping vehicles to Sabah and Sarawak, Loh added.

Ongoing discussions between East Coast Economic Region Development Council and Perodua are expected to culminate in finalised plans by 2025.

As for Johor, Chinese companies are in negotiations to establish a large scale EV manufacturing facility in Johor, aimed at producing 10,000 EVs monthly for export to the African market.

The project is evaluating three potential locations: Tanjung Langsat in Pasir Gudang, Tanjung Piai in Pontian, and Pengerang in Kota Tinggi.

Once operational, the plant is expected to generate over 10,000 jobs for the local workforce.

Source: NST

Carmakers to boost EV plans

SINCE 2010, the number of Malaysian companies focusing on factory automation has doubled, with the top 10 firms now boasting a combined valuation exceeding RM25.8 billion, according to Malaysian Investment Development Authority.

Automation has proven to be a game-changer, reshaping how industries approach operation scalability, production optimisation, engineering efficiency, and sustainability. It is especially important for Malaysia’s manufacturing sector, which is projected to grow by 4.5% next year, according to the recent Economic Outlook 2025 report from the Finance Ministry.

With the rise of Industry 4.0 or Smart Factory technologies, manufacturers around the world are also increasingly adopting Internet of Things (IoT), artificial intelligence (AI), and robotics to create more interconnected and intelligent systems that optimise resource management and enhance decision-making processes. To support local manufacturer’s growth, the Malaysian government has set a target to convert 3,000 factories into smart factories by 2030 under the New Industrial Master Plan (NIMP) 2030.

However, the manufacturing sector faces unique hurdles in embracing digital transformation. According to industry experts, one of the challenge lies with IT. Many legacy systems may include outdated or unnecessary software licences that are no longer relevant in today’s digital landscape. The drive towards sustainability adds another layer of complexity.

With environmental concerns at the forefront and regulations in place, manufacturers are compelled to weave sustainable practices into the very fabric of their operations. This shift is not merely about compliance; it’s about securing a competitive edge and ensuring viability in a market that increasingly values environmentally conscious practices.

Enter universal automation — a transformative approach that revolutionises the integration of digital technologies in manufacturing. This strategy employs a modular, plug-and-produce software ecosystem, reminiscent of an app store for industrial applications, which significantly simplifies the adoption of the best available solutions. This not only enhances operational flexibility but also reduces overhead costs, positioning universal automation as a key enabler in the digital transformation of manufacturing.

Universal automation simplifies the integration of new technologies into existing systems, offering a seamless approach that allows manufacturers to enhance their operational frameworks without the need for a full-scale overhaul. This streamlined integration preserves existing investments while accelerating the adoption of innovative practices.

A key component of this strategy is the decoupling of automation software from hardware, as exemplified by the adoption of the IEC 61499 standard. This standard introduces an open, event-driven architecture for distributed control systems (DCS), enabling seamless integration across diverse equipment from various vendors.

Platforms like Schneider Electric’s EcoStruxure Automation Expert, which are built on this standard, represent the first brand-agnostic software solutions. They facilitate digitalisation while minimising costs and operational disruptions. By embracing this software-defined approach, the industrial sector can overcome the limitations of traditional, closed automation systems. This shift fosters greater adaptability, allowing companies to innovate and evolve more rapidly in an increasingly interconnected and dynamic global environment.

The scalability and flexibility inherent in universal automation solutions are also vital for manufacturers aiming to grow and adapt over time. These solutions can be tailored to expand and evolve in tandem with a company’s changing needs, offering a durable advantage in a rapidly advancing technological environment.

Universal automation also directly addresses the prevalent skills gap in the industry. By introducing user-friendly interfaces and streamlined processes, these systems reduce the reliance on highly specialised training, allowing existing employees to upskill and adapt to new technologies more effectively.

Driving sustainability through universal automation is one of its standout benefits, particularly its potential to significantly enhance energy efficiency. By optimising the operational dynamics of machines and systems, universal automation ensures that energy consumption is minimised, reducing the environmental footprint associated with manufacturing processes.

Beyond energy management, universal automation excels in resource management. It enables precise control and monitoring of material use, promoting the efficient utilisation of resources and minimising waste production. This precision not only helps conserve valuable materials but also leads to cost savings, creating a dual advantage for manufacturers committed to sustainable practices.

Moreover, the integration of universal automation generates a vast pool of data from daily operations. This wealth of information provides deep insights into every aspect of the manufacturing process, enabling manufacturers to make more informed decisions. By analysing this data, manufacturers can refine their energy usage, optimise material consumption, and improve waste management practices.

As Malaysia continues its digital transformation journey, the integration of universal automation into manufacturing practices is becoming increasingly crucial. This technological integration, coupled with a robust emphasis on sustainability, is setting the stage for businesses to not only meet but exceed industry standards.

Universal automation is not about replacing the human workforce but enhancing it, fostering an environment where technology and human ingenuity co-exist to propel the manufacturing sector towards a more efficient, sustainable, and innovative future.

This article is contributed by Schneider Electric Malaysia Industrial & Process Automation business vice-president Ng Wei Jie.

Source: The Sun

Automation key enabler in digitalisation of manufacturing

MANUFACTURERS are urged to be open to transformation and adopt new technologies to keep up with market demands, especially with the implementation of the Johor-Singapore Special Economic Zone (JS-SEZ).

South Johor Foundry and Engineering Industries Association president Lim Kok Kiong said industry players must be ready to take on new, inevitable challenges now that the joint agreement had been signed by Malaysia and Singapore.

“Alongside challenges, the industry will face new opportunities, especially in semi-conductor and high-end manufacturing fields.

“The opportunities include attracting high-volume investments, establishing strategic partnerships with Singapore and international companies, expanding export opportunities and nurturing skilled talents to help the industry grow and keep up with market demands,” he said.

As for challenges, Lim said the industry should also look out for a difference in regulation and industry standards between two countries, which could affect cross-border cooperation.

“Our association has come up with a strategic plan, which includes formulating industry development strategies, market segmentation and strengthening our cooperation with the government in order to create favourable conditions for the industry’s participation in the JS-SEZ,” he said.

“We have also suggested collaborations with infrastructure projects related to the JS-SEZ, especially in the manufacturing of semi-conductors and precision equipment to help local firms improve their standards.”

He added that the association had always encouraged industry players to adopt technologies such as robotic automation, artificial intelligence and the Internet of Things to improve production and efficiency.

Lim said industry players were also encouraged to implement green initiatives to meet international standards for environmentally friendly products.

“The association will hold a meeting with our members soon to discuss the latest developments under the JS-SEZ and related plans.

“This is to provide them support and help them seize available opportunities,” he added.

On Jan 7, Prime Minister Datuk Seri Anwar Ibrahim and his Singaporean counterpart Lawrence Wong witnessed the exchange of the joint JS-SEZ agreement, which took place during the 11th Malaysia-Singapore Leaders’ Retreat in Putrajaya.

Real Estate and Housing Developers’ Association (Rehda) Johor branch chairman Lindy Tan said the JS-SEZ would create exciting opportunities, especially in the property sector.

“With the anticipated influx of investments, there will be a natural rise in demand for top-tier infrastructure, housing and commercial spaces.

“This is a chance for developers, policymakers and private stakeholders to work together to ensure that growth is not only rapid but also sustainable and inclusive,” she said.

Tan said the signing of the agreement also marked a new chapter in strengthening the state’s position as a key regional hub for investment, innovation and sustainable growth.

“I am heartened by the commitment of both governments to upgrading Johor’s public transport system and introducing meaningful incentives for businesses and residents.

“These efforts will not only boost the zone’s appeal to investors but also significantly improve the quality of life for the people of Johor.”

Tan also said Rehda Johor was ready to support the initiative by engaging with all stakeholders to help shape the future of the JS-SEZ.

“Together, we can ensure that this project becomes a long-term success story, driving innovation, economic prosperity and development for Johor and the region as a whole,” she said.

Source: The Star

Prepare to innovate, manufacturers told