VIENNA-listed AT&S Austria Technologie & Systemtechnik AG is poised to start producing high-end integrated circuit (IC) substrates at its new facility in Kulim Hi-Tech Park, Kedah, by the end of this year.

For a start, the serial production of the cutting-edge IC substrates will cater almost exclusively to US semiconductor giant Advanced Micro Devices Inc (AMD) for incorporation into its high-performance and energy-efficient data centre processors.

In an exclusive interview with The Edge — a day before the official opening ceremony of the AT&S Campus, which houses its manufacturing facility and office building in Kulim, on Jan 24 — AT&S CEO Andreas Gerstenmayer emphasises the importance of IC substrates, highlighting their often underestimated role in microprocessors, as well as the intricacies of the production process.

The 59-year-old German says AT&S introduced front-end technology in the area of IC substrate manufacturing to Malaysia. This is expected to complement the nation’s strength in back-end assembly over the past five decades and elevate its standing in the electrical and electronics (E&E) value chain.

“Malaysia has been very strong in the area of back-end semiconductor assembly. You get all the components in, from silicon to substrates, you package them and you ship them.

“But with AT&S coming to Kulim, we will be producing IC substrates here. So, this is something quite different for Malaysia because your country will now be involved in not just the back-end packaging, but also the production of substrates for packaging,” Gerstenmayer states.

While some companies had produced substrates in Malaysia in the past, he believes their products were not as sophisticated as the ones to be made by AT&S.

“What we are making are really high-end IC substrates for big names like AMD. About 10 years ago, AT&S was the first company to bring such technology to China. And today, we are the first ones to do it in Malaysia. So, we know how to do it.

“AMD is a very important client of ours. The IC substrates that we craft for AMD in Kulim will be sent to the outsourced semiconductor assembly and test (Osat) providers and they will do the back-end activities,” he explains.

Founded in 1987, the Leoben-headquartered AT&S is the world’s second-largest high-end printed circuit board (PCB) producer and fifth-largest IC substrates manufacturer. It serves industries such as consumer electronics, computers, communications, semiconductors, automotive, aviation, industrial and medical.

In addition to the state-of-the-art facility it is building in Kulim, AT&S also has a presence in Nanjangud, India; Chongqing and Shanghai in China; and Ansan, South Korea. The planned investment under Phase 1 of the Kulim project is €1.7 billion (about RM8.7 billion) and to date, AT&S has invested over €1 billion.

Notably, the Kulim plant is the group’s largest investment thus far in terms of initial investment for a single project. It is also the biggest single investment ever made by an Austrian company in Malaysia.

Gerstenmayer says following the completion of AT&S’ new Malaysian headquarters and Plant 1 in Kulim, which will focus on the production of IC substrates, there will be a lot of synergy and spillover effects that will complete Malaysia’s E&E ecosystem.

“We have heard from others that some corporations are planning to bring up their front-end factories in Malaysia. By having a more complete supply chain in your country, there will be material suppliers and maintenance service providers coming here,” he elaborates.

Gerstenmayer says AT&S has been very happy with its investments in Kulim so far.

“Our strategic decision in 2021 to choose Malaysia for our first facility in Southeast Asia was absolutely correct. Back then, we realised that AT&S already had a strong footprint in China. As a group, we knew it was not wise to put all our eggs in one basket. So, if we were to make another major investment, it would be somewhere else. And that somewhere else is now in Malaysia.

“Today, our office building and Plant 1 are open. In Plant 1, AT&S will produce technology for AMD. Plant 2 is wind and water tight; as soon as the market environment for one of our main customers has improved, we will bring the second plant online,” he says.

Construction work on the plant started in November 2021 and commercial operations are targeted to come onstream before the end of this year.

The first phase of the Kulim project is expected to create 6,000 jobs, including for 4,500 blue-collar workers. The group, which operates seven plants in Europe and Asia, currently has 14,000 employees worldwide.

Together with the plants in Chongqing and a new research and production (R&D) centre in Leoben, which will also open by year end, AT&S’ Kulim plant is expected to secure global growth for the group, as well as raise the importance of its sites in Austria.

IC substrates provide connections between silicon dies and PCBs. They are composed of several layers and a supporting core in the middle, and contain drill holes and conductor paths that exceed the density of conventional PCBs. They are used for cloud edge computing, data centres and server farms as well as for consumer devices.

Last November, AT&S announced that the group would be providing IC substrates to AMD. The substrates produced by AT&S are an integral part of AMD’s data centre processors that power digital experiences such as artificial intelligence and virtual reality.

Gerstenmayer says IC substrates are “probably one of the most underestimated components” in microprocessors. AT&S is a leader in embedding microchips and components that regulate the associated power and information flows into monolithic systems that make sure that the pathways stay as short as possible, so information can travel at maximum speed without any significant losses.

“Without IC substrates, the interconnectivity won’t work. Today, in a digital society, all of us are using electronic devices and the internet, so we generate a lot of data every day. We need to manage, transmit and store the data.

“Data and microelectronics are crucial in digitalising our whole society, and AT&S is part of that ecosystem because our products are embedded into the semiconductor chips. We are really proud to have customers like AMD in our client portfolio and we appreciate its trust,” he says.

Gerstenmayer says AT&S is in the midst of bringing in more equipment to Kulim as production lines are being installed.

“This is a very intense process because the production of IC substrates involves more than 200 process steps. All of them interact with and impact each other. If we want to achieve a really good level of quality and yield, all the core equipment that we are bringing in from Japan, South Korea, Germany and the US need to fit together and harmonise nicely.”

AMD: We can be a demanding customer

In a pre-recorded video message played during the opening ceremony of AT&S Campus, AMD chair and CEO Lisa Su Tzwu-Fang says the Austrian firm has built “an incredible factory” in Kulim.

She adds that AT&S’ operation in Malaysia has the potential to become “a key location” for AMD’s manufacturing and development.

“We are excited that Malaysia will now play an important role within AMD’s supply chain as the new AT&S Campus provides industry-need IC substrates for our most advanced products.

“At AMD, we are all about enabling high-performance data computing to solve the world’s most important challenges. The IC substrates to be produced by AT&S here (in Kulim) will enable AMD to achieve our vision. The substantial investments that AT&S is making also ensure that the future remains bright for our partnership,” she states.

Meanwhile, AMD corporate vice-president for manufacturing Scott Aylor says he is convinced that AT&S will be the perfect additional source of high-quality IC substrates for its data centres.

“AT&S is an Austrian company with a global scale. It could serve our needs in Europe and China. And obviously, we were very excited to hear that it is expanding into Malaysia.

“To be honest, AMD can be a very challenging and demanding customer, but AT&S has steadfastly kept its commitment to us, and punctually delivered a plant that fully met our expectations,” he adds.

AT&S’ top and bottom line have been growing steadily over the past three financial years.

The group’s revenue grew from €1 billion in the financial year ended March 31, 2020 (FY2020) to €1.2 billion in FY2021, before increasing further to €1.6 billion in FY2022 and hitting a new record high of €1.8 billion (RM9.3 billion) in FY2023.

Its earnings also jumped from €19.8 million in FY2020 to €47.4 million in FY2021, before gaining further to €103.3 million in FY2022 and €136.6 million in FY2023.

Despite the challenging global economic situation and volatility in the market, Gerstenmayer says the progress of the production capacity expansion in Kulim and the expansion of the site in Leoben remain positive.

As such, he says, the group’s revenue guidance of about €3.5 billion by FY2027 “is still intact”.

Dörflinger Private Foundation and Androsch Private Foundation are AT&S’ two largest shareholders, with an 18% and 17.5% stake respectively.

Over the past 12 months, shares of AT&S have declined by 29% to €23.30 at the time of writing last Thursday, giving it a market capitalisation of €905.2 million.

Gerstenmayer believes the global semiconductor industry has seen the bottom of the downcycle.

“The slowdown started in 2022, and it has been quite a while already. As far as AT&S is concerned, we continue to observe the supply chain situation. The expectation now is that the industry should recover by the second half of 2024. We are ready to go. We will have everything in place,” he concludes. 

Source: The Edge Malaysia

Tech: AT&S’ deal with AMD to help elevate Malaysia’s E&E value chain

Germany-based Mosca GmbH, a world leader in end-of-line strapping solutions to secure goods in transit, has decided to expand its operations in Malaysia by relocating to a much larger facility in Frontier Park, Johor, and doubling its workforce.

CEO Timo Mosca said its facility for the final assembly of the automatic strapping machines will move from a 40,000 sq ft plant nearby to a new 103,458 sq ft factory at Frontier Park.

“We have chosen Frontier Park for its well-managed, secure and green environment, which matches our sustainable manufacturing practices,” he said in a joint statement.

Mosca said that the company, with over 20 years of presence in the state, officially sealed the deal with local developer WB Land Sdn Bhd in Johor Bahru on Tuesday.

WB Land group managing director Kevin Woon said this relocation was a significant milestone not only for the company and the World Federation Internationale des Administrateurs de Bien-Conselis Immobiliers (Fiabci) award-winning industrial park but also for the industrial landscape in Johor and Malaysia.

Woon said the new facility, built on 0.91 hectares of land, was designed with an emphasis on eco-friendly practices, including being ready for solar energy, to align with global standards for green manufacturing.

“We are glad to play a part in attracting global leaders in manufacturing and technology and contribute towards Malaysia’s growing reputation as a competitive and business-friendly destination,“ he said.

Meanwhile, Malaysian Investment Development Authority (Mida) CEO Datuk Arham Abdul Rahman said Mosca’s investment in Malaysia is a testament to the confidence in the country’s business environment, strong infrastructure and global connectivity.

“Mida remains steadfast in its mission to attract more companies, like Mosca, catalysing Malaysia’s ascent as the transformative manufacturing hub of Southeast Asia,” he added.

Source: Bernama

Germany’s Mosca to move to larger facility, double workforce in Malaysian expansion

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has proposed another Industrialised Building System (IBS) factory be built in Central Sarawak.

He said the establishment of the factory there serves to accommodate the construction of affordable housing and commercial areas for the central and northern regions of the state.

“I propose to the Land Custody and Development Authority (LCDA) and CTR Technology Sdn Bhd to construct an IBS factory somewhere in the central region – perhaps in Bintulu.

“It would be quite a distance for the IBS factory in Kuching to send its logistics (to the central and northern zones). Since we are developing Jepak constituency, the IBS system will also be implemented there,” he told a press conference after officiating the IBS factory in Demak Laut here on Tuesday.

Speaking at the event earlier, Abang Johari called on LCDA to conduct a feasibility study on setting up an IBS factory in the central zone. He also suggested it could be built in either Bintulu or Sibu.

Source: Borneo Post

Abg Jo proposes another IBS factory be built in Central S’wak

The US State Department has some US$500 million (RM2.38 billion) at its disposal under the International Technology Security and Innovation (ITSI) Fund to recruit partner nations mainly as upstream and downstream suppliers to US chipmakers.

Information Technology and Innovation Foundation (ITIF) vice president for global innovation policy Stephen Ezell told German-owned political newspaper Politico‘s publisher Digital Future Daily that other promising candidates the State Department is looking into besides the Dominican Republic include Mexico, Malaysia and India, which is up next for an ITIF readiness report.

The semiconductor supply chain is already somewhat distributed; no single country can, or likely ever will, manage its entirety.

But the Indo-Pacific region — countries like Taiwan, Japan, China and South Korea — is essential to nearly every step of the manufacturing process.

So as companies look to de-risk from China, the goal of the new policy is to give them US-approved places to go.

Politico, based in Arlington County, Virginia, on Monday reported that the State Department already has partnerships with five countries — Costa Rica, Panama, Vietnam, Indonesia, and the Philippines — to explore semiconductor industry growth opportunities, as a precursor for ITSI funding.

Politico said the State Department is expected to pick seven in total.

There are some baseline requirements for countries seeking to make the cut for ITSI or otherwise enter the global semiconductor race.

The US is looking for reliable infrastructure; the cost from a power outage can escalate into the billions.

A skilled workforce is another important factor, as is free trade policy — ideally mirroring Singapore’s zero tariffs on nearly all imports.

Countries also need regulations that offer investors certainty, especially on permitting and environmental reviews.

One potential deal breaker might be negotiations over export controls, the main tool that Washington has used with established allies in the semiconductor supply chain, like the Netherlands and Japan, to keep a lid on China’s chip industry.

The US is wary of investing in countries where advanced technology could leak to a foreign adversary’s military, Center for Strategic and International Studies (CSIS) director focused on transatlantic trade Emily Benson said, and export controls are thought of as a springboard for meeting Washington’s trade demands in the future.

Politico said the US$500 million ITSI fund is a drop in the bucket, compared to US$39 billion that the US is investing in American-made chips.

It added that how far the money goes largely depends on countries’ ability to attract private sector investment.

In this global competition, it’s also unclear how long newcomers will be satisfied with just supplying the chip industry rather than developing their own fabrication capacity.

India has already made US$10 billion in subsidies available to build out its domestic semiconductor ecosystem.

Source: The Edge Malaysia

Malaysia among countries US may explore semicon industry growth opportunities with — Politico

FGV Holdings Bhd’s new Fract750 refinery plant at Kuantan Port has allowed the company to expand into premium product offerings such as high IV olein and hard stearin.

Group chief executive officer Datuk Nazrul Mansor said the new facility will strategically position FGV to serve emerging industries, with expected volume production of 150,000 tonnes per annum.

“The inauguration of the new plant represents yet another strategic move for FGV, enhancing cost-efficiency by leveraging high free fatty acid (FFA) feedstock, a by-product of crude palm oil milling and refining to produce palm methyl ester (PME),” he said.

FGV board member Datuk Mohamad Nizar Mohamad Najib said the new refinery not only allows it to explore new areas in specialty fat products but also contributes to the development of a specialised industry in Kuantan.

“This not only diversifies the local economy but also positions Kuantan as a hub for innovative and premium fat products, potentially attracting further investment and business opportunities,” he said.

The new plant will create job opportunities for local youth in Pahang, he added.

“The Pahang government welcomes new developments and investments that help to provide avenues for skilling and training in advanced sectors such as the palm oil and specialty fats industry,” he said.

The new refinery is the first plant in the east coast region to feature the Desmet iConFract system, which incorporates an innovative 30-bar filter press technology.

The technology helps in enhancing efficiency, streamlining premium downstream product production, and enabling precise separation of various fractions during the refining process.

FGV’s operations in Pahang stretch across 136,617 hectares of plantation estate, 28 mills, along with crushing, refining, fractionation and distillation plant, in addition to bulking and warehousing facilities, as well as a strategically positioned logistic depot.

In 2023, FGV bought and processed a total of 4.91 million tonnes of fresh fruit bunches (FFB) in Pahang worth RM3.75 billion.

Of this, 66 per cent of FFB came from Felda smallholders, while the remaining 34 per cent were purchased from independent smallholders.

Source: NST

New Kuantan Port refinery enables FGV to offer premium products

Scientex Bhd via its wholly-owned subsidiary, Scientex Heights Sdn Bhd, has entered into a conditional sale and purchase agreement with Guan Hong Plantation Private Ltd for the proposed acquisition of 24 parcels of freehold land, all situated in Muar, Johor, for RM200mil.

In a filing with Bursa Malaysia, the packaging manufacturer and property developer said it has plans to develop the lands, which has an aggregate area of 442.7566 hectares, into a mixed-property development.

Scientex added it is still currently too early to ascertain the exact total gross development value, development cost, as well as the expected commencement and completion dates of the development and the expected profits to be derived from the development of the lands.

The group said the lands are surrounded by a mix of industrial and agricultural activities, along with notable landmarks such as Muar Furniture Park, Bukit Bakri Industrial Area and Bakri Bukit Muar Airfield.

Scientex said the proposed acquisition will be funded by internally generated funds and bank borrowings.

The group noted that given rising property prices and robust demand for affordable homes from the low and middle-income groups, the proposed acquisition represents a strategic investment opportunity for the group to create greater economic value and increase its earnings potential as it gains a better and stronger foothold in the more established Johor property market.

Scientex noted the lands are also expected to provide a steady and sustainable property development model, as the company continues to focus on affordably priced landed properties where demand continues to remain firm and resilient.

Moreover, the landbank expansion is also in line with Scientex’s goal to build more affordable homes to meet the group’s objective of completing 50,000 affordable homes throughout the nation by 2028.

The proposed acquisition is not expected to have any material impact on the earnings and net assets of Scientex for the financial years ending July 31, 2024 and July 31, 2025.

Source: The Star

Scientex acquires land in Johor for RM200mil

SEDC Energy Sdn Bhd, a subsidiary of Sarawak Economic Development Corporation (SEDC), has signed a Memorandum of Understanding (MOU) with Gallois New Energy Materials (M) Sdn Bhd to build a high-end graphite manufacturing plant in Bintulu, Sarawak.

The plant, which is located in Samalaju Industrial Park (SIP), will be producing spherical natural graphite and synthetic graphite, involving a total investment of US$1.5 billion (RM6.3 billion), said SEDC Energy in a statement in conjunction with the MOU signing ceremony here on Friday.

“This strategic move, as outlined in the MOU, focuses on high-end graphite products, with a planned three-stage development launching in 2025, subject to the 100-megawatt power availability, leveraging Sarawak’s infrastructure advantages, including low-cost and renewable hydropower,” it said.

It said the collaboration would see both parties exploring electric vehicle (EV) industry opportunities, anticipating enhanced capabilities and sustainable growth for the state.

“Simultaneously, Gallois group’s choice of Sarawak for a high-end graphite manufacturing plant in SIP aims to establish the state as a major global graphite source of carbon-neutral, high-purity anode materials outside of China to meet the rising demand for sustainable and cost-effective graphite supply in the expanding EV battery markets.

“China, which accounts for more than 95% of high-end graphite products of global producers, has started to restrict the export of the products since last December.

“As such, there is currently a high demand for high-end graphite manufacturing supply chain outside of China, thus, making Sarawak the major global supply chain for high-end graphite outside China,” it said.

SEDC Energy said the collaboration is poised to generate economic opportunities and job creation, as well as attract EV-related investments, positioning the state as an EV transformation hub.

“This significant initiative is expected to transform Bintulu’s economic landscape, creating more than 1,000 high-skilled job opportunities for the local community,” it added.

The MOU was signed by SEDC Energy chief executive officer Robert Hardin and Gallois New Energy director Chai Ming Chen, as witnessed by Sarawak Premier Tan Sri Abang Johari Tun Openg.

Also present were SEDC chairman Tan Sri Abdul Aziz Husain and Gallois Group of Companies president George Lu.

SEDC Energy, being a frontrunner in sustainable energy initiatives, has engaged in various ventures specialising in new energy and downstream oil and gas marketing and trading, solidifying its position as a key player in Malaysia’s energy landscape.

Among its ventures are the production of crude algae oil, sustainable aviation fuel, biomass, hydrogen supply, downstream and upstream business, and green mobility solutions.

Source: Bernama

SEDC Energy, Gallois New Energy ink MOU to build RM6.3 bil graphite plant in Bintulu

Mah Sing Group Bhd will be developing 185 acres of prime industrial development named Mah Sing Business Park, Sepang, with an estimated gross development value (GDV) of approximately RM728mil.

In a statement, the property developer said Mah Sing Business Park, Sepang will be developed by Fusion Heights Development Sdn Bhd, a subsidiary of Mah Sing South Sea Industrial Development Sdn Bhd (MSSSID), which is 70%-owned by Mah Sing.

“The landowner, Premier Land Resources Sdn Bhd, also grants Fusion Heights Development the option to purchase an additional approximately 376.65 acres for RM12.50 per sq ft within four years of the sale and purchase agreement.

“The potential GDV for the entire 561.65 acres is up to RM2bil, encompassing comparable development components.”

Mah Sing said the land is planned to be an industrial development comprising customised factories, industrial lots, cluster, semi-D and detached factories catering to medium and light industrial businesses.

The development is set to attract industry players from high-tech manufacturing and value creation manufacturing sector to set up their facilities here.

“In line with the group’s quick turnaround strategy and subject to authorities’ approval, the development of Mah Sing Business Park, Sepang is expected to commence in the second half of 2024 and to be developed over a span of three-to-four years.

“The acquisition will fuel the growth of Mah Sing’s industrial development portfolio and strengthen its competitiveness in Malaysia’s industrial development landscape,” it said.

Mah Sing said the acquisition also represents a strategic move for the group, building upon the foundation laid by the formation of joint venture company MSSSID in September 2023.

“MSSSID provides one-stop development solutions for industrial real estate properties, from sales and marketing, leasing, project construction and management, as well as customisation to investors’ need and investment.”

Mah Sing noted that Malaysia has been the focus of foreign investors, adding that its push into industrial projects is timely.

The developer said this is especially with the launch of Malaysia’s New Industrial Master Plan 2030 to build Malaysia’s industrial capacity and resilience for long-term, sustainable growth.

“In the first nine months of 2023, Malaysia recorded RM225bil in total approved investments of which foreign direct investment (FDI) accounted for RM125.7bil or 55.9% of total approved investments.

“The manufacturing sector took the lead for FDI, contributing RM84.8bil or 85% of approved investments in that sector.”

Mah Sing added that the industrial property market is widely lauded as a bright spot for the property market in 2024 and that the group’s acquisition of Mah Sing Business Park, Sepang is a strategic move to capitalise on the country’s industrial growth potential.

Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said it is within Malaysia’s favourable environment that the group makes this strategic acquisition.

“We strongly believe Malaysia and Mah Sing is the preferred country and partner for these enterprises looking to efficiently invest and grow across this region,” he said in the same statement.

Mah Sing said the land is located at the central of Klang Valley and close to populated areas such as Bandar Baru Salak Tinggi, Putrajaya, Cyberjaya, Subang and Shah Alam, which can provide business executives and workers the convenience of living near the city centre and access to ready amenities.

“Mah Sing’s landed residential development M Senyum is located at Bandar Baru Salak Tinggi. Also known as the Airport City, Bandar Baru Salak Tinggi is well connected to major accesses and highways such as KLIA Expressway, Elite Highway, North-South Expressway, Putrajaya-Cyberjaya Expressway, Jalan Banting-KLIA and KLIA Extension Highway.”

Source: The Star

Mah Sing’s industrial development portfolio to grow

THE time is ripe for Malaysian palm oil producers to seize the untapped the potential found in the biomass industry, which is set to be a game-changer for the country in the coming years.

The country’s palm oil industry churns out millions of tonnes of oil palm biomass yearly which that can be turned into hydrogen by breaking down the carbon and hydrogen molecules.

This transformative venture is poised to materialise within the next three years, propelled by several preliminary attempts between Dongguan University of Technology and the Malaysian Palm Oil Board (MPOB). The effort presents a golden opportunity to convert this abundant waste into hydrogen.

This potential strategic partnership not only aligns with the global push for sustainable practices but also positions Malaysia as a pioneer in leveraging its key industry waste using cutting-edge solutions.

Hong-Kong based Dongguan University of Technology and MPOB are in the midst of formulating a collaborative plan to develop big-scale hydrogen production in Malaysia.

Dongguan University of Technology Top Talent Prof Jonathan W.C. Wong said Malaysia, being the second largest global producer of palm oil, had an important role to play.

He said a significant amount of oil palm biomass would be generated with the industry’s growth, leading to the problem of waste.

“Biomass such as oil palm trunks and fronds can be turned into biogas. These are the two big potential biomass sources that have not been tapped currently.

“If we can utilise these resources in the oil palm industry, hydrogen can be produced and added to the supply chain,” he said during his presentation on “Value Addition from Waste Biomass: A Circular Economy Approach” at the MPOB International Palm Oil Congress and Exhibition 2023 (PIPOC 2023) last year.

He said Malaysia would have to first come up with a biomass reactor that could generate hydrogen.

“If we can apply our technology in Malaysia, palm oil producers can use it to generate hydrogen for the biomass industry.

“Currently, we are using a small reactor in the lab because our technology requires a high-pressure condition. The most common and favourable thermochemical process to produce hydrogen is the gasification process in fluidised bed reactors.

“To assess its efficiency on a larger scale, we will need a larger reactor. We can collaborate with MPOB to construct a large-scale reactor to carry out trials. If that is successful, we can then proceed with commercialisation.”

Wong said in the future, hydrogen plants would be built next to either an oil palm plantations or palm oil mills.

However, despite the potential of hydrogen production from oil palm biomass in the production of hydrogen, the high initial capital investment and lack of proven technology have discouraged investors.

According to his findings, an integrated biogas and wastewater treatment system in a typical 60 tonnes per hour mill in Malaysia can export up to an average of 1.9MW of electricity.

An integrated biogas and wastewater treatment system reduces greenhouse gas (GHG) emissions by 50,430 tonnes of carbon dioxideCO2 per year, compared to the typical open ponding system.

In comparison to cur rent hydrogen production methods that rely on coal or natural gas, this biomass-based approach offers cost advantages and environmental benefits.

By using biomass waste powder such as bamboo, waste wood and wheat straw as a raw materials, the hydrogen production yield can reach about 88 per cent of the theoretical yield.

The hydrogen production cost of this technology is lower than that of fossil fuel hydrogen production, and will not bring additional carbon emissions.

Waste biomass valorisation will be a major direction for future energy and bioproducts.

The proposed carbon-energy provided a systematic approach to extract energy trapped in waste biomass, said Wong.

The bio circular economy is important for the palm oil industry in reducing waste generation, and increasing incomes and moving towards the commercialisation of some of the technologies.

On another matter, Malaysia Biomass Industries Confederation (MBIC) president Datuk Leong Kin Mun said feedstock owners were encouraged to unlock the biomass potential ofas commoditised and high-value niche products by lever-aging government incentives.

The biomass industry includes biofertilisers, fuel pellets, bioelectricity, soil erosion control products, mushroom farming and even black soldier fly.

Malaysia generates more than 90 million dry tonnes of solid oil palm biomass in various forms, including empty fruit bunches, palm kernel shell, mesocarp fibre, oil palm trunks and oil palm fronds.

Leong said it was the right timing for stakeholders like feedstock owners, technology providers and offtakers to look into the biomass industry as many companies were embracing environmental, social and corporate governance (ESG) initiatives, especially on GHG emission reduction, to clean the supply chain.

“The stakeholders need to come up with good business strategies to develop a biomass industry model as there is huge potential in this industry that has yet to be optimised,” he said.

“Investment incentives can be structured and enabled to facilitate joint-venture investment between palm oil mill or oil palm plantation companies and biomass technology companies or innovators.

“The concept of cascading use of biomass should be applied to assess the best circular economy model of these biomass. This is to ascertain the best sustainable development benefits in terms of GHG emission reduction, monetary value as well as social economic development.”

The 12th Malaysia Plan has outlined an investment target for biomass as a strategic sector, with expected significant contribution from oil palm biomass and forestry biomass due to their more mature ecosystems as well as large amounts of feedstock, which have been used for the ongoing commercialisation efforts.

The estimated availability of oil palm biomass (dry weight) based on FFB production was 90.53 million tonnes last year, with a total in vestment of RM222.9 million in biomass industry, he said.

Leong added that facilitation from the government was needed to unlock biomass feedstock from the plantation and milling operations.

He pointed out the opportunities of selling biomass products to other countries and stressed how this could be linked to the worldwide eco-friendly supply chain, like selling palm pellets.

The decarbonisation of Malaysia’s electricity sector is primarily propelled by pellets from empty fruit bunches, with biomass co-firing implemented at utility-scale plants like Tenaga Nasional Bhd and Malakoff Corp Bhd.

This initiative aims to significantly reduce GHG emissions in Malaysia. The low-carbon business model, considered as a game changer, is facilitated and support ed through government intervention.

Additionally, the Malaysia Sustainable Palm Oil chain of custody for oil palm biomass was established, particularly for the Japanese feed-in tariff market, said Leong.

Source: NST

Tapping biomass potential

The local automotive industry is set to transform with heightened competition in the local production and distribution chain in the near term as electric vehicle adoption accelerates, and foreign direct investments (FDIs) increase.

Maybank Investment Bank said post-pandemic, Malaysia has emerged as an increasingly attractive destination for FDIs from global automakers establishing their regional headquarters/electric vehicle hubs. This includes prominent names such as Volvo, Stellantis, Tesla, and Chery.

Automotive industry observer Hezeri Samsuri said with the presence of companies like Tesla and Stellantis choosing Malaysia for their expansion, Malaysia could attract more automotive giants to establish their presence here and use the country as their gateway to the Asean or Asia Pacific markets.

“I would say 2024 is looking pretty rosy for us, especially if the government can offer the right package,” he told Business Times.

Malaysia’s competitive edge in the semiconductor supply chain positions it favourably for the automakers’ transition to EV.

Several carmakers, including Mercedes-Benz, BMW, Porsche, Audi, and Dong Feng, have announced local assembly plans for vehicles targeting both domestic and export markets.

Maybank IB said in its note that the influx of FDIs is expected to have a positive long-term impact on the industry, contingent on the position of auto players in the supply chain.

Maybank IB said while clear winners at present include local consumers and certain auto parts suppliers, local players in the production and distribution chain are expected to see intensified competition in 2024, potentially impacting their margins.

“This consideration takes into account numerous new product launches, including scheduled EV brands/ models throughout the year,” Maybank IB said in its note today.

The penetration rate of battery electric vehicles remain low in the local automotive market at one per cent.

Maybank IB said however that the introduction of new EV brands and models is a positive sign, and anticipates that BEV sales in Malaysia will continue to grow exponentially in 2024.

“Our optimism aligns with the national targets revealed by the Minister of Investment, Trade and Industry in late Nov 2023, aiming for 20 per cent/50 per cent/80 per cent of new car sales to be new energy vehicles by 2030/2040/2050 respectively.

The Tesla Model 3 and Model Y, smart #1, BYD Dolphin, Neta V, Hyundai Ioniq 6, and Ora Good Cat are notable launches in 2023.

“We expect the demand growth for xEVs to gain further momentum with upcoming launches in 2024, including the BYD Seal (1Q24), Chery Omoda E5 (1Q24), Dong Feng Nammi 01 (2Q24), Toyota bz4x, and more,” Maybank IB said.

It believes the increased presence of EV brands locally is set to have a positive impact on expediting the transition of the entire EV ecosystem.

This is likely to be facilitated through increased partnerships, collaborations, and mergers and acquisitions between EV automakers and infrastructure/component suppliers.

Furthermore, Maybank IB foresees additional policy announcements, including the next installment of the National Automotive Policy (NAP), which is expected to strengthen the policy focus and facilitations for the EV ecosystem in alignment with the National Energy Transition Roadmap (NETR) and the New Industrial Master Plan (NIMP) 2030.

Hezeri emphasised the need to not only offering incentives to car companies but also to consumers, as a robust domestic market enhances the attractiveness of investments.

“Our forte would be our microchip industry and our highly skilled labour, and language. We also have a bigger portion of consumers who have been proven to accept new technology quicker than the other Asean market. “These are all good for a booming EV market, but the government needs to act fast.

Recently, Stellantis Group announced a big investment in EV where Malaysia will be its hub for not only export, but as a distribution hub for its components and spare parts. 

“Focus should be given to those who have decided to invest here, so that the companies’ objectives can be realised or even beyond their expectation. “As companies need to invest here, Malaysia will also have to invest,” he noted.

Meanwhile, Tradeview Capital Sdn Bhd vice president Tan Cheng Wen said the Malaysian Automotive Association (MAA) had forecasted a total industry volume (TIV) of 740,000 for 2024. However, he believes that this may be an optimistic scenario as vehicle ownership will be costlier due to the rationalisation of targeted subsidies, as well as the higher service tax rates which affects maintenance and vehicle repair services.

“Although the current penetration of battery EVs in the market is low, estimated at around one per cent, we believe that the proactive efforts by the government, exemplified by initiatives like the National Electric Transportation Roadmap (NETR), will only be a huge catalyst in expanding the adoption of EVs.

“The NETR aims to achieve a 50 per cent share of TIV for two-wheeled and four-wheeled EVs by 2040. “The upcoming update to the National Automotive Policy will very likely be accommodative to the NETR framework in facilitating and expanding the EV ecosystem,” he added.

Nevertheless, Tan said local automotive manufacturers have a target market and niche to serve and cater towards as the majority of EVs are targeted towards the upper middle class and above segments. 

He said this can be seen from the price points of the Tesla Model 3, BYD Dolphin and Hyundai Ioniq. 

“Subsidy rationalisation is unlikely to affect the B40 and lower M40 groups which are a huge proportion of customers for local automotive manufacturers, and they could also stand to gain from the upcoming Progressive Wage Policy implementation. 

“We are looking forward to the relatively affordable EV models that will be introduced by Proton and Perodua to ride on this dominant key trend and serve this segment of consumers,” he added.

Source: NST

The local auto industry is transforming with EVs in focus and a rise in FDIs

Malaysia’s semiconductor export is set to reap the benefits from higher global demand, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Aziz.

Malaysia is seeing the benefits coming from the electrical and electronics (E&E) sector, especially from the chips and semiconductor sector, and the nation’s policy on “active neutrality” between the United States (US) and China is very important as Malaysian companies are looking for supply chain resiliency, he said.

“Malaysia has been in this sector for a while now, in the last 50 years, and in terms of global market share of the semiconductor testing sector, we are about 12% to 13%, and we are the sixth largest exporter of semiconductors.

“The E&E sector is so big in Malaysia that 40% of our exports are actually from the E&E sector,” Tengku Zafrul said in an interview with CNN on Tuesday.

There were increased investments into Malaysia and the Southeast Asian region last year against “tough global economic outlook”, he added.

“In 2022, the total FDI (foreign direct investment ) that flowed into Asean increased 5% and if you look at what is happening in the world, the global FDI is down by 12%. But, Malaysia’s investments for the first nine months (of 2023) was a record high in the last decade. That shows that there is opportunity against the tough backdrop of the global economic outlook,” Tengku Zafrul said.

Malaysia attracted RM225 billion of approved investments in the first nine months of last year, exceeding its full-year target for 2023, with FDI accounting for 55.9% of the total.

Tengku Zafrul said the Ministry of Investment, Trade and Industry (MITI) is looking to diversify trade with other countries and regions while also increasing intra-trade within the Asean region, which currently stands at 20%.

“It is something we, as Trade Ministers, in the region are working closely to make sure to increase this number. One of the things that we are looking into is to complete an agreement called the Digital Economic Framework Agreement by 2025 because electronic trade will definitely increase within the region,” he added.

He noted that there was a significant upside of potentials coming from intra-trade within Asean due to its young population aged below 30 years, comprising 50% of the total population of 680 million.  

Meanwhile, the government is cautiously optimistic of Malaysia’s gross domestic product (GDP) to be at 4% to 5% in 2024 and expects the country’s economic growth to be around 4% as well.

“There will be some negative impact from what is happening globally and that is why we are a bit conservative with our GDP forecast of around 4% to 5%. Malaysia is a trading and open economy whereby trade to GDP is 160%.

“We will be watching these (global economic events) closely and we hope the situation will not escalate and have an impact on the region and on Malaysia as well,” Tengku Zafrul said.

On whether the liquidation risk of China’s Evergrande Group could potentially pose a headwind for Malaysia, Tengku Zafrul stressed on the importance of insulating an economy like Malaysia.

“China remains an important trading partner to the Asean region, and to Malaysia as it is the largest, if not the largest to many countries here. And growth in China is going to have an impact on the growth in this region. We all know what is happening in the property sector in China and (that may) possibly impact the whole economy of China.

“We will watch it closely but as I said, insulating an economy like Malaysia is important as China and the US (constitute) 45% of the total GDP. So, these two economic powers are going to influence (the economy of) Southeast Asia, especially Malaysia,” he added.

A Hong Kong court on Monday ordered the liquidation of property giant China Evergrande Group, a move likely to send ripples through China’s crumbling financial markets as policymakers scramble to contain a deepening crisis.

Source: Bernama

Higher global demand to boost Malaysia’s semiconductor exports — Tengku Zafrul

Kulim High-Tech’s strategic location and dedicated focus on high-tech industries attract major technology players 

IN THE ever-evolving tapestry of Malaysia’s real estate market, two prominent players, Iskandar Malaysia and Kulim High-Tech Park Corp Sdn Bhd, emerge as beacons of innovation and transformation for Malaysia’s property sector. 

Among the issues discussed at the PropertyGuru Malaysia Property Market Outlook 2024 Virtual Panel Discussion recently included the dynamic real estate landscape, centring on the pivotal roles these two high-tech hubs play in shaping the country’s economic and property development narrative. 

Iskandar Malaysia: Catalyst for Growth

Iskandar Malaysia, positioned as a key economic development zone in the southern part of the country, stands out as a testament to Malaysia’s commitment to progress. 

As a flagship economic corridor, it serves as a magnet for investors, developers and businesses seeking opportunities in a strategically positioned and well-connected region, particularly Johor being the neighbouring state for Singaporeans to enter Malaysia. 

DataSense head of real estate intelligence Dr Lee Nai Jia predicts Johor to continue experiencing robust property demand from foreigners, particularly driven by a surge in interest from Singaporeans. 

According to the PropertyGuru Malaysia Property Market Outlook Report 2024, Iskandar Puteri in Johor has witnessed the highest proportion of foreign demand, predominantly from Singaporeans. 

The announcement of the Special Economic Zone and the ongoing development of the Johor Baru (JB)-Singapore Rapid Transit System (RTS) Link have been essential in amplifying interest from Singaporeans, Lee noted. 

The soaring property prices in Singapore further contribute to the heightened demand in Johor, particularly for properties priced below RM1 million. 

“We are seeing that (Singaporeans) are not looking at high-end homes priced above RM1 million which ties in well with them buying property in Malaysia. 

“In terms of the Malaysia My Second Home (MM2H) impact, we suspect that potential buyers are still analysing and taking their time before deciding. We observe that Malaysians living in Singapore are also going back and looking at properties,” he said during the panel discussion. 

This group, which frequently commutes between the two countries due to high rental costs in Singapore, represents the first wave of property buyers. 

The second wave comprises potential buyers from Singapore, drawn in by the Malaysian government’s economic development initiatives, leading to increased interest and demand. 

Meanwhile, Knight Frank Malaysia ED of research and consultancy Amy Wong said connectivity plays a pivotal role in attracting interest. 

The development’s proximity to key transportation infrastructure positions it as a hub of economic activity and a hotspot for real estate growth. 

Iskandar Malaysia’s allure extends beyond domestic borders, drawing attention from foreign investors, particularly Singaporeans. 

National Property Information Centre (Napic) director Norhisham Shafie said the recent relaxation of the MM2H programme catalyses increased foreign investment, with Singaporean buyers exploring the real estate landscape Iskandar Malaysia offers. 

“The relaxation was just recently announced so we cannot see a lot of impact on the transaction yet. But, of course, the three tiers will attract a lot of individual foreigners,” he said. 

In December 2023, the government unveiled a revamped version of the MM2H programme which now has three tiers, namely Silver, Gold and Platinum. 

Under the Platinum tier, participants must have a fixed deposit (FD) of RM5 million. After one year, a maximum withdrawal of 50% is allowed for property purchase (with a minimum value of RM1.5mil and above), healthcare and domestic travel within Malaysia. 

The Gold tier sets the FD requirement at RM2 million with similar withdrawal provisions for property purchases (minimum value of RM750,000 and above), healthcare and domestic travel. 

The Silver tier requires RM500,000 in FD with similar withdrawal provisions. 

Meanwhile, Lee said the trend of Singaporeans exploring properties in Iskandar Malaysia might have already begun. 

The connectivity enhancements, economic development announcements, and the MM2H programme create a perfect storm, positioning Iskandar Malaysia as an attractive destination for foreign buyers. 

As the real estate market evolves, the concept of sustainable development takes centre stage. 

Iskandar Malaysia, in its pursuit of innovation, incorporates green features and sustainable practices into its projects, aligning with global environmental consciousness. 

Knight Frank’s Wong said the future of sustainable development in the real estate sector lies in a combination of innovative construction methods, technological advancements, and a shift in consumer preferences. 

Her insights resonate with Iskandar Malaysia’s endeavours, reflecting a commitment to environmentally responsible construction and a vision that goes beyond traditional development paradigms. 

Kulim High-Tech: Magnet for Tech Giants

While Iskandar Malaysia shapes the southern region, Kulim High-Tech emerges as a burgeoning tech powerhouse in the northern part of Malaysia. 

With a focus on high-tech industries, Kulim High-Tech becomes a catalyst for economic growth, innovation and a unique real estate landscape. 

Wong described Kulim as a very strong competitor for Penang, as it is a beneficiary of the spillover from the popularity of the latter as an electrical and electronic (E&E) hub. 

Meanwhile, Lee said Kulim High-Tech’s strategic location and dedicated focus on high-tech industries attract major technology players. The developing neighbouring areas, such as Padang Serai, have witnessed the most significant growth at 59%, compared to other regions. 

“Based on our data at DataSense, Padang Serai has the highest year-on-year (YoY) growth in terms of number of visitors, which is closely linked to the Kulim High-Tech Park,” he said. 

The discussion highlighted the region’s potential to become a tech hub, drawing parallels with Silicon Valley and other global tech-centric zones. 

Green Building Index’s (GBI) accreditation panel chairman Chan Seong Aun said transitioning towards industrialised buildings may entail higher initial costs for the first few projects. However, he emphasised that there could be a notable 20%-30% reduction in construction costs over time as the same systems are consistently employed. 

His insights on industrialised building systems find resonance in Kulim High-Tech’s commitment to innovation besides saving costs. 

As tech giants establish their presence, the demand for cutting-edge, sustainable real estate solutions is set to rise. 

Like Iskandar Malaysia, Kulim High-Tech understands the importance of sustainable development. 

As the tech industry prioritises environmental responsibility, Kulim High-Tech integrates green features into its real estate projects, providing a blueprint for sustainable urban development. 

The panel also discussed preference and options among potential homeowners. 

Lee said Malaysians, faced with higher homeownership costs, are willing to forgo certain amenities to make homes more affordable. 

In response, developers may consider omitting amenities to reduce overall development costs and enhance affordability for consumers. 

“According to our consumer sentiment service, buyers are thinking of giving up some key amenities. We also see that some of them are thinking of shifting to the rental market to accumulate savings,” he said. 

Meanwhile, Chan said another factor that buyers need to consider is their safety against natural disasters such as floods and landslides while encouraging future homeowners to purchase green buildings, which have lower flood risks. 

Source: The Malaysian Reserve

Iskandar Malaysia, Kulim High-Tech reshape Malaysia’s real estate landscape

The AT&S Austria Technologie & Systemtechnik (Malaysia) Sdn Bhd campus at the Kulim Hi-Tech Park (KHTP) which is part of a RM8.5 billion (about €1.7 billion) investment in Malaysia is officially open.

The opening ceremony took place at the AT&S new administration building, which marked the completion of the key production plant of the world’s leading manufacturers of high-end printed circuit board (PCB) and integrated circuit (IC) substrates.

AT&S chief executive officer Andreas Gerstenmayer attributed the successful completion of the construction works in a record time of just over two years to the employees in the Kulim plant and close collaboration with the Malaysian authorities.

“This huge success was made possible by our workers and employees in Kulim. This is your day and also a historic day for AT&S that is worthy of a celebration. I take great pride to bear witness to the achievement of this great milestone.

“The quick progress was facilitated by close collaboration with Malaysian representatives and authorities on the national, regional and local level.

“The authorities in Malaysia, especially Mida and the management of the Kulim High Tech Park and Advantage Austria from the Austrian Chamber of Commerce, supported us a lot,” Gerstenmayer said in his speech at the opening ceremony.

Present was Investment, Trade and Industry deputy minister Liew Chin Tong.

The new campus in Kulim will start delivering high-end Integrated Circuit (IC) Substrates for AMD’s data centre processors towards end of this year.

AT&S board member and executive vice president for business unit microelectronics, Ingolf Schroeder affirmed the company’s decision to invest in Malaysia.

“Our strategic decision in 2021 to choose Malaysia for our first facility in Southeast Asia was absolutely correct, so far we invested just over EUR1 billion in our AT&S Campus in the KHTP.

“We benefit from the excellent conditions here and Kedah as the technology hotspot in this region,” he said.

AT&S’ biggest investment outside Austria has strengthened Malaysia’s position as an international hub for the electronics and semiconductor industry.

Schroeder added that the Kulim Campus plant will commence operations with 2,500 employees under the first phase as the construction of the second phase in ongoing.

“With the AT&S investment in Malaysia, we are creating thousands of high-tech jobs in the region, almost 2,500 until the end of this year.

“This will help to set up the framework for future growth in Malaysia,” he added.

AT&S Malaysia will produce cutting-edge IC Substrates, which are an integral part of high-performance data processors for computers, datacentres and Al-infrastructure.

“AT&S has steadfastly kept its commitment to us and punctually delivered a plant that fully meet AMD’s expectations. We are convinced that AT&S is a perfect additional source of high-quality IC Substrates for our data centres,” said AMD corporate vice president for manufacturing, Scott Aylor.

Meanwhile, in his speech, Liew warmly welcomed AT&S and its positive impact on the local economy to Malaysia.

He also praised the forward-looking concept of the AT&S campus which is built to the highest standards of quality and sustainability, with state-of-the-art machinery, recycling systems and a green energy concept.

Austrian Ambassador to Malaysia and Brunei, Andreas Launer remarked that the AT&S investment in KHTP marked a historic high point of economic cooperation between Austria and Malaysia.

“With the opening of AT&S’s impressive production site, economic cooperation between Austria and Malaysia is reaching a historic high point.

“I am confident that the company’s strong presence in Malaysia will give important impetus to our bilateral relations and will create many new opportunities to work closer together also in other fields such as higher education, vocational training or the development of new technologies.

“I hope that this investment will also put Austria in the spotlight of Malaysian companies as a great business location and tech partner in the heart of Europe.”

Source: NST

First phase RM8.5 billion AT&S Kulim plant opens for operation

PowerChina’s subsidiary China Hydropower (Malaysia) Co Ltd and Semarak Renewable Energy Sdn Bhd have signed a RM1.883 billion deal involving a green hydrogen project in Perak.

The project encompasses green hydrogen production and storage through floating photovoltaic power generation.

PowerChina’s Asia-Pacific Regional Headquarters deputy general manager Ye Haoliang said the project is aligned with the “ecological priority and green development” direction.

The initiative involves the secondary development and utilisation of an abandoned tin ore lake, marking a significant contribution to Malaysia’s green and low-carbon transformation, he said in a joint statement today.

The statement said the project will focus on designing, procuring, and constructing floating photovoltaics, hydrogen production units, and hydrogen storage units.

It is set to become Malaysia’s first large-scale green hydrogen production project utilising floating photovoltaic power generation.

The engineering, procurement and construction contract was signed recently by Ye and Semarak chairman Mohammad Shahil Ishak.

PowerChina, leveraging its strengths in the new energy sector, has pledged to expedite the project’s planning and construction, emphasising its commitment to aiding Semarak in becoming a pioneer in Malaysia’s green hydrogen industry.

Since entering the Malaysian market in 1993, PowerChina has successfully undertaken over 150 projects with a total contract value exceeding US$7 billion (US$1=RM4.71).

Source: Bernama

Powerchina, Semarak ink RM1.88bil green hydrogen deal in Perak

Main Market-listed EP Manufacturing Bhd (EPMB), via subsidiary PEPS-JV (Melaka) Sdn Bhd (PJVM), has been appointed as contract vehicle assembler for Great Wall Motor Co Ltd’s subsidiary, Great Wall Motor Sales Malaysia Sdn Bhd (GWM Malaysia).

With the recent signing of a vehicle assembly agreement, EPMB has become a key player in the assembly and production of selected GWM models in Malaysia for the next eight years.

EPMB group CEO Ahmad Razlan Mohamed said the decision to venture into car assembly reflects its commitment to vertically integrate its operations.

“This move presents a prime opportunity to expand our revenue streams and broaden our business portfolio. Moreover, our involvement in GWM’s inaugural CKD (completely knocked down) project in Asean demonstrates our agility and ability to adapt to global automotive market demand.

“We anticipate a close partnership with GWM as they introduce their renowned brand portfolio to Malaysia, commencing with Haval, a top-selling SUV brand in China,” he said in a statement.

The group will initially focus on assembling and producing the Haval H6, a mid-size sport utility vehicle model, and the Haval Jolion, a compact SUV model. The agreement allows for potential adjustments to the production lineup in the future.

Anticipating a gradual production ramp-up, EPMB aims to achieve an annual output of 20,000 units by 2028. The assembly and production activities will be centred at the group’s automotive manufacturing facility located at the Heavy Industries Corporation of Malaysia Pegoh Industrial Park in Malacca.

In addition, the expansion is poised to contribute significantly to EPMB’s growth and create about 1,000 new job opportunities in Malacca with more than RM100 million committed to ensure the success of the initiative.

Source: The Sun

EP Manufacturing seals vehicle assembly deal with Great Wall Motor

Given that semiconductors are now as central to world economies as oil has long been, it is time for Malaysia to build a world-class electrical and electronics (E&E) cluster in northern Malaysia, said Deputy Minister of Investment, Trade and Industry Liew Chin Tong.

“Going forward, we are seeing Kedah, Penang, Perak and Perlis becoming an important cluster for the semiconductor industry, not just in Malaysia, but also the world. Today, Malaysia is already the sixth largest semiconductor exporter in the world. To me, that is an important milestone.

“But moving forward, I would like to see more collaborations among the state governments and the federal government. We should grow the E&E clusters in Kedah and Penang, and potentially North Perak and Perlis, into one global semiconductor hub. It is already there, but it should be grown even further,” he told a press conference on Wednesday following the official opening of AT&S Austria Technologie & Systemtechnik AG’s (AT&S) new production site in Kulim.

The Leoben-headquartered AT&S is the world’s second largest high-end printed circuit board (PCB) producer, as well as the world’s fifth largest sophisticated integrated circuit (IC) substrates manufacturer.

The Vienna-listed company, which operates seven plants in Europe and Asia, has been building its new plant in Kulim with a planned investment of €1.7 billion (about RM8.5 billion) under phase one of the project. To date, it has invested over €1 billion.

With the presence of AT&S in Kulim, Liew believes Malaysia is closer to making the northern region a global semiconductor hub that is recognised globally.

The idea of creating a northern corridor has always been there, he noted. “Today, Malaysia is in a sweet spot due to geopolitical tension and trade diversion. We have to do more in the northern region. To us, as the federal government, the development of the northern region is not just about Penang and Kedah, we are also including north Perak and Perlis in the cluster,” said Liew.

He also noted that Prime Minister Datuk Seri Anwar Ibrahim had, in his Budget 2024 speech, said that the government planned to open a high-tech industrial area in Kerian, north Perak.

Liew also pointed out that Malaysia used to be a very important high-end manufacturing hub before China became the world’s factory.

“But we are coming back to a full circle now, whereby we are given a new opportunity to become a high-end manufacturer again. I hope that very soon, Malaysia will be seen as a destination for high-end manufacturing, and hopefully, we could build a stronger supply chain in our country and the region.

“In the years to come, I believe Southeast Asia will play a very important role in the world due to the relocation of the global supply chain. We should expect some sort of vertical integration in the region, where Malaysia sits at the high-to-middle part of the value chain,” he said.

Meanwhile, Liew welcomed AT&S’ positive impact on the Malaysian economy, saying its investment, especially in the area of IC substrates, is expected to take Malaysia further into the new era of semiconductor value chain.

Liew, who described semiconductors as “the new oil”, said the industry is anticipated to grow further for various reasons, including the revolution in the automotive industry, the advent of artificial intelligence and the continued development of the healthcare industry.

“The International Energy Agency had said last year that EV (electric vehicles) could account for 18% of total car sales in the world. In 2022, it was 14%. In 2021, it was 9%. And in 2020, it was 5%. We are seeing an exponential growth of the EV industry. I believe this mega trend is likely to benefit states like Kedah and Perak,” he said.

Andreas Launer, the Austrian ambassador to Malaysia and Brunei, believes that the economic cooperation between Austria and Malaysia “is reaching a historic high point” with the opening of AT&S’ first plant and its Malaysian headquarters.

“I am confident that AT&S’s strong presence in Malaysia will give important impetus to our bilateral relations and create many new opportunities to work closer together also in other fields such as higher education, vocational training or the development of new technologies.

“I hope that this investment will also put Austria in the spotlight of Malaysian companies as a great business location and tech partner in the heart of Europe,” he said.

Source: The Edge Malaysia

MITI sees semiconductors as ‘new oil’, eyes further E&E development in northern Peninsular Malaysia

The Ministry of Investment, Trade and Industry (Miti) will review the target of 10,000 electric vehicle (EV) charging stations operating in the country by 2025 as previously set, said its minister Tengku Datuk Seri Zafrul Abdul Aziz.

He noted that until now there are almost 1,500 EV charging stations in operation but the number is far from the initial target outlined under the Low Carbon Mobility Development Plan 2021-2030.

The minister said so far the government is still maintaining the initial target, but he and his Cabinet colleagues will re-examine whether the target can be achieved or not.

“It seems that the target is quite aggressive because there are many issues that we need to address and it involves many processes and agencies such as the approval process and agencies such as the Energy Commission, local authorities, and other parties,” Tengku Zafrul told the media after launching a postpaid subscription plan for e-motorcycle ownership here on Tuesday.

He also explained that the charging station preparation procedures need to be streamlined because there were complaints from companies providing EV charging stations.

“Among the complaints received is about the approval period for setting up a charging station taking a long time. What we need to focus more is how to make it more seamless and faster to get the approval,” he added.

Commenting on the Electric Motorcycle Use Promotion Scheme rebate that was rebranded as MARiiCas, Tengku Zafrul said he had informed the Ministry of Finance (MOF) about the need to increase MARiiCas allocations.

“The MARiiCas application is very encouraging but we also need to see the approval level of the applications. We are still doing research and so far there has been no objection from MOF,” he said.

Meanwhile, CelcomDigi Bhd and Yinson Holdings Bhd subsidiary Yinson GreenTech launched an e-motorcycle ownership plan with the first postpaid subscription plan of its kind from a telecommunications company to drive the adoption of EVs in Malaysia.

Customers can now lease-to-own rydeEV e-motorcycles just by registering with any CelcomDigi Postpaid 5G plan with an Easy360 instalment plan.

Source: Bernama

MITI will review target of 10,000 EV charging stations by 2025 — Zafrul

The Investment, Trade and Industry Ministry (Miti) has set up an Independent and Special Committee for Malaysia’s iron and steel industry to review and realign its direction towards achieving the objectives of the New Industrial Master Plan (NIMP) 2030.

In a statement, Miti said the committee will, among others, assess the short and medium-term outlook for the iron and steel industry and address issues of overcapacity.

The committee will also provide guidance on policy, particularly in green steel production and new product development, to substitute imports, promote exports, and evaluate industry matters linked to national security.

Investment, Trade and Industry Minister Tengku Datuk Seri Utama Zafrul Aziz said the establishment of this independent committee is to ensure the resilience and sustainability of the country’s iron and steel industry.

“What is also important is for them to explore solutions to help the industry keep abreast of the latest green manufacturing technologies, to be in line with Malaysia’s commitment to reduce greenhouse gas emissions by 45 per cent by 2030 and achieve carbon neutrality by 2050.

“Execution is key, and timing is of the essence. As such, I have requested the committee to present their comprehensive study on Malaysia’s iron and steel industry within six months,” he said.

HSBC Bank Malaysia Bhd chief executive officer Datuk Omar Siddiq has been appointed as the committee’s chairman and will be supported by Prof Dr Ong Kian Ming, Datuk Hisham Hamdan, Yeoh Wee Jin, and Chen Li-Kai, while Jarrod Lim Keng Yow has been appointed as the secretary to the committee.

Source: Bernama

Ministry sets up independent, special committee for iron and steel industry

As part of Malaysia Madani Economy framework, the government is prioritising manufacturing as the country new growth engine.

To achieve this, it is becoming increasingly important to adopt digital technologies within and beyond the factory walls.

Digitalisation in manufacturing offers numerous benefits, including improved efficiency, increased productivity, and the ability to monitor, analyse, and resolve production bottlenecks in real-time throughout the entire business process.

Manufacturers are poised to move towards Industry 4.0 and smart factory transformations as they recognise them as key drivers for future competitiveness.

The Deloitte 2024 Manufacturing Industry Outlook suggests that manufacturers should focus on important technology adoption trends, challenges, and preparedness factors as we approach 2024.

Technology trends shaping the manufacturing industry

The implementation of AI is at the core of the smart factory transformation.

By analysing data from factory equipment, it enables robotics to automate manual tasks, reduce errors, and free up hours for employees to contribute to other areas, which fosters value addition.

Additionally, IoT-connected sensors intelligently predict machinery maintenance requirements, thus promoting connectivity across the smart factory, standardisation and a competitive edge through precise business forecasts. These cutting-edge technologies are a significant leap forward in manufacturing capabilities and a strategic step towards a more agile, predictive, and resilient industrial landscape.

Challenges and preparation for the adoption of smart manufacturing technologies

While it is imperative for manufacturers to keep up with smart factory transformations, the adoption of technologies can be a daunting step. With this, partnerships between different stakeholder groups across industries play a crucial role in the successful implementation of smart factory initiatives.

In today’s economic climate, it can be a costly process for manufacturers to invest in infrastructure, equipment, and software.

Manufacturers can explore funding options as well as scalable and cost-effective solutions such as Everything-as-a-Service (XaaS) to adopt digital transformation.

For example, Lenovo’s XaaS approach includes innovative financial empowerment programs, such as flexible lease-to-own options and adaptable loan structures designed to alleviate financial constraints and empower companies to invest confidently in their digital transformation.

This means customers no longer need to take capital ownership of the IT assets, and instead pay for what they use each month as part of their operating expenses.

The process of digitalisation may need more technical expertise for implementation.

To overcome this hurdle, manufacturers can collaborate with industry experts such as Lenovo to assist them in their digital transformation journey.

As a strategic technology partner, Lenovo can serve as a single point of contact for managing all IT infrastructure needs, from consultation to deployment and end-of-cycle service.

With their extensive expertise in the field, Lenovo can provide manufacturers with end-to-end support for their digitalisation efforts.

Ergo, it is essential to choose a technology partner with the right combination of technical experience and industry knowledge to help implement tailored manufacturing solutions that align your unique business needs.

A trusted partner will collaborate with you to offer solutions that are both suitable for the present and future.

*The writer is the country general manager, Lenovo Malaysia. The opinions expressed in this article are his personal views.

Source: NST

Embracing industry 4.0 revolution: trends, challenges, and readiness in Malaysia manufacturing sector for 2024

The manufacturing sector in Malaysia ought to take advantage of the prospects presented by the Industrial Revolution 4.0 (IR4.0) to enhance business performance, according to Tan Siew Jin, managing director of Jabil Penang.

He said that the convergence of technologies in operations, information technology (IT), and the supply chain is causing seismic shifts in manufacturing. 

These shifts create predictable, data-driven environments that facilitate increased productivity and operational excellence, he told Business Times.

Tan said that Jabil Malaysia’s proactive automation adoption and advancement of IR4.0 principles like IoT, connectivity, analytics, and digital visualisation are driven by the company’s dedication to manufacturing excellence and innovation.

“These allow us to deliver cost-effective solutions that enhance machine utilisation and process efficiencies. 

“We leverage state-of-the-art technologies and implement digital transformation initiatives to give customers real-time insights, helping them monitor and optimise operations from anywhere,” he said. 

Tan said industry players need to consider or address capital investment as technology implementation involves varying costs.

“Here, government grants or funding can further catalyse and incentivise adoption, enabling Jabil’s continued efforts in technology transfer opportunities through upskilling and partnerships across our network of local small and medium-sized enterprises (SMEs). 

“This ensures that SMEs are also empowered to build a digitally driven, high-income nation and a preferred regional manufacturing leader by optimising technologies in automation, high-value machining, and digitalisation.”

He pointed out that the combination of the digital and physical worlds is bringing about a shift in how things are done, which is known as IR4.0.

According to Tan, strategies need to be backed by a system of support that equips staff members with the necessary knowledge and abilities and fosters an environment that is ready for the shift to IR4.0.

He said that Jabil had recently pioneered an innovative bidirectional communication system on the manufacturing lines that significantly reduces human dependency and enables automated process adjustments, especially in automated optical inspection (AOI).

The innovation helped to maintain accurate inspection limits and reduce non-value-added or repetitive work.

“Investing in factory automation, robotics, and machine learning has also enabled us to build sustainable operations. Jabil Malaysia saw a 25 per cent reduction in energy usage in 2023, going from 153.4 million kWh in 2022 to 116.8 million kWh in 2023, with the annual carbon dioxide reduction equivalent to planting 40,000 trees a year,” he said. 

Jabil Malaysia’s operations began in 1995. Its Penang facility was the first expansion for the company in the Asia-Pacific region. Today, the company has seven production facilities in Malaysia.

“Bringing breadth and depth of scale across the manufacturing value chain, the rapid factory digitalisation adopted in our local operations is a business differentiator and a sign of the industry to come.

“Influenced by the principles of IR4.0, we are creating “smart factories,” bringing this to life by leveraging our strong digital foundation and continuously applying automation and digital technologies to our entire value chain to drive step-change improvements in safety, quality, delivery, and cost,” added Tan.

Source: NST

‘Adopt, grow with industry 4.0’

The Selangor government plans to establish a right-hand drive (RHD) research centre in the state to support Malaysia’s electric vehicle (EV) industry development.

State executive councillor for investment, trade, and mobility Ng Sze Han said the proposal aims to position Selangor as a key player in the EV ecosystem, offering local residents the opportunity to engage with and contribute to the industry.

The initiative is an integral part of the state’s broader agenda to create skilled, high-income job opportunities via advancements in automation and digitalisation.

“Simultaneously, it can elevate productivity and contribute to Selangor’s gross domestic product. We are optimistic the investment for this research centre can be materialised,” he said when contacted.

Ng is also confident the initiative will yield positive outcomes and deliver significant benefits to various stakeholders, particularly in light of the EV industry’s global expansion.

The current global EV market is primarily dominated by left-hand drive vehicles, owing to large economies like the United States, Europe, and China.

However, there has been positive growth in RHD EVs, particularly in Southeast Asia, as well as in countries like Australia, Japan, the United Kingdom, and India.

Meanwhile, Selangor has pledged to empower the EV industry, having announced ambitious plans to establish a mobility lab and install 10,000 charging stations in the state by 2025 through its First Selangor Plan (RS-1).

In November last year, Prime Minister Datuk Seri Anwar Ibrahim affirmed the Federal government’s commitment to facilitate the EV industry’s growth in the country as part of efforts to promote green technology usage across diverse sectors.

Source: Selangor Journal

Selangor mulls right-hand drive research centre development to boost EV industry

Malaysia’s medical-device market is forecast to record a high-single digit growth over a five-year period, driven by strong government support for the healthcare sector, medical tourism and an ageing population, according to BMI Research, a Fitch Solutions company.

BMI Research said Malaysia’s 2024 health budget will support the medical-devices market growth by focusing on the procurement of medical equipment, upgrading hospitals and clinics and enhancing system capacity.

Domestic medical-device production will continue to rise as the government prioritises boosting production within key strategic sectors, it said.

The research company projected that Malaysia’s medical-device market will expand at a 2023-2028 compound annual growth rate of 9.5% in local currency terms and 8.5% in US dollar terms, which will take the market to a value of RM16.6bil in 2028.

“Key growth drivers include strong government support for the healthcare and medical-device sectors, medical tourism, a rising elderly population and the growing burden of chronic diseases.

“A downside risk to our outlook for the market is Malaysia’s export-oriented economy and ongoing political uncertainty,” it said.

BMI Research highlighted that the Health Ministry has been allocated RM41.2bil for 2024, a 12.6% rise from 2023’s RM36.3bil.

In 2024, RM5.5bil has been allocated for the procurement of medicines, consumables, reagents and vaccines.

“The government will also prioritise healthcare facilities, including allocations to build new hospitals, and modernising other hospitals and health clinics.

“These initiatives will support Malaysia’s medical-device market growth, improving access to services and ensuring solid demand for products,” it added.

Meanwhile, the firm noted that Malaysia’s exports of medical devices rose by 16.3% in local currency terms to RM18.5bil, while exports expanded by 9.5% in US dollar terms to US$4.2bil in 2022.

“Malaysia’s medical-device exports have recorded growth in local currency terms every year since 2012 with the exception of 2016 and 2020.

“US dollar growth has been more volatile due to a depreciating ringgit in certain years, although growth has been broadly consistent,” it added. 

Source: Bernama

Medical device market to benefit from health spending

Sarawak will boost its potential as a green hydrogen production and development hub when it hosts the Asia Pacific Green Hydrogen Conference and Exhibition (APGH 2024) this year.

State Deputy Energy and Environmental Sustainability Minister Datuk Dr Hazland Abang Hipni said Sarawak aimed to attract international investments and become a destination for green hydrogen projects.

He said the state had abundant natural resources, strong political stability and a commitment to successful project commissioning and operations.

“APGH 2024 is set to be a flagship event combining knowledge sharing, business opportunities and the exploration of groundbreaking clean energy solutions,” he said in a statement on Monday (Jan 22).

Organised by Borneo Business Connect Sdn Bhd in collaboration with the state Energy and Environmental Sustainability Ministry, the June 10-12 conference will bring together experts, policymakers, industry players and researchers to discuss advancements in green hydrogen technology, policy formulation, regulation and infrastructure development.

It will also provide networking and collaboration opportunities for clean energy solutions.

Borneo Business Connect chairman Tan Sri Asmat Kamaludin said the event was anticipated to catalyse new projects, investments and partnerships.

“The conference and exhibition will create opportunities for businesses to network, showcase innovative solutions and contribute to the growth of the global green hydrogen industry,” he said.

APGH 2024 is projected to host 100 exhibitors and 500 conference delegates from Japan, South Korea, Chile, Brazil, Germany, Italy and Spain.

It is also expecting some 4,000 trade visitors to the exhibition.

Source: The Star

Sarawak aims to become a green hydrogen hub with Asia Pacific Green Hydrogen conference

BMI, a Fitch Solutions company, said Malaysia’s medical devices market will record high-single digit growth over the firm’s five-year forecast period, driven by factors including strong government support for medical devices and healthcare sectors, medical tourism and an ageing population.

In a commentary last Friday, the firm said Malaysia’s 2024 health budget will support medical devices market growth by focusing on the procurement of medical equipment, upgrading hospitals and clinics, and enhancing system capacity.

It said domestic medical device production will continue to rise as the government prioritises boosting production witihin key strategic sectors.

BMI projected that Malaysia’s medical devices market will expand at a 2023-2028 compound annual growth rate of 9.5% in local currency terms and 8.5% in US dollar terms, which will take the market to a value of US$4.5 billion (RM16.6 billion) in 2028.

It said key growth drivers include strong government support for the healthcare and medical device sectors, medical tourism, a rising elderly population and growing burden of chronic diseases.

Risks

“A downside risk to our outlook for the market is Malaysia’s export-oriented economy and ongoing political uncertainty.

“Malaysia’s export-oriented economy makes it vulnerable to economic slowdowns in key markets, including mainland China, the US and the European Union, which could hinder demand for Malaysia’s exports as well as its ability to import medical devices.

“Political uncertainty stems from the number of parties with differing ideologies that currently make up Malaysia’s unity government, which will challenge policymaking and potentially slow reforms,” said BMI.

2024 health budget

Meanwhile, the firm said the Ministry of Health (MOH) had been allocated RM41.2 billion for 2024, which is an increase of 12.6% from the RM36.3 billion allocated in 2023.

It said this is the largest increase among the ministries, and also marks the second successive year that the MOH received a double-digit increase, highlighting the government’s commitment to enhancing the healthcare system.

“In 2024, RM5.5 billion has been allocated for the procurement of medicines, consumables, reagents and vaccines.

“The government will also prioritise healthcare facilities, including allocations to build new hospitals, and modernising other hospitals and health clinics.

“These initiatives will support Malaysia’s medical devices market growth, improving access to services and ensuring solid demand for products,” it said.

Device production

BMI said in 2022, Malaysia’s medical devices exports increased by 16.3% in local currency terms to a value of RM18.5 billion, while exports expanded by 9.5% in US dollar terms to US$4.2 billion.

“Malaysia’s medical devices exports have recorded growth in local currency terms every year since 2012 with the exception of 2016 and 2020.

“US dollar growth has been more volatile due to a depreciating ringgit in certain years, although growth has been broadly consistent.

“Mostly consistent growth in exports over the previous decade highlights Malaysia’s growing domestic medical devices production base,” it said.

Source: Bernama

BMI: Malaysia’s medical devices market to benefit from health spending in 2024

Tron Bradbury Energy (Malaysia) Sdn Bhd (TBE) will establish a regional electric vehicle (EV) hub in Malaysia.

Towards the hub development, the EV automotive and battery manufacturer signed a memorandum of understanding (MoU) with asset managers Bradbury Asset Management (Hong Kong) Ltd in a ceremony here on Friday (January 19).

The hub will be located in the Malaysia Vision Valley (MVV).

TBE director Mohamad Zam Zalman Tik said the hub would scale up its capacity from an EV assembly operation to include full-scale manufacturing and distribution capacities and a cutting-edge battery research and development (R&D) facility.

“The hub is projected to generate an estimated revenue of more than RM2 billion annually,” he said at the opening ceremony of TBE’s first EV assembly plant at the Port Klang Free Zone (PKFZ) on Friday.

The assembly plant, which will focus on commercial EVs and energy storage systems, was launched by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

In his speech, Tengku Zafrul said TBE is set to transform its current assembly operation in PKFZ into a dedicated manufacturing facility and plans to establish a battery R&D facility in Malaysia.

“These two plans, when realised, will mark a significant step forward, and I am excited to see the positive impact and opportunities it will bring to our people, supporting small and medium enterprises (SMEs) and Malaysia as a whole,” he said.

The minister said despite the EV industry being relatively new in Malaysia, statistics indicate a significant upward trend in the EV demand last year with the sales of battery electric vehicles (BEVs) shooting up by over 200 per cent year-on-year to more than 10,000 BEVs sold, compared to about 3,000 units in 2022.

“If we combine hybrid and full EVs, the volume of electrified vehicles sold last year made up about five per cent of nearly 800,000 units total industry volume (TIV), which is a 70 per cent year-on-year increase.

“Our target is to have EVs reach at least 20 per cent of TIV by 2030, 50 per cent by 2040 and 80 per cent by 2050, and I am confident we are on the right track to reach those targets,” he added.

Source: Bernama

Tron Bradbury Energy to establish regional EV hub in Malaysia