The demand for medical and surgical rubber gloves picked up last month despite the prevailing oversupply situation which is expected to be in equilibrium by 2025.

Malaysia Rubber Glove Association’s former president Denis Low Jau Foo told Bernama recently that the uptick in demand was due to customers replenishing their stock.

“There was aggressive buying during the Covid-19 pandemic, those stocks are facing expiry. Medical gloves have a shelf life,” Low said.

It is this replenishment factor that is pushing up demand, Low said.

With demand on an uptrend, prices are also set to rise.

“We are seeing a significant increase in latex price by as much as 28.7%. This means a higher cost for glove manufacturers and this will be passed on to the buyers,” Low said.

Rubber glove manufacturers are the biggest users of bulk latex, consuming close to 460,000 tonnes per annum, he said.

Weather conditions such as El Nino and La Nina are also instrumental in the price rise and rubber price volatility. Stability is possible from June onwards, Low said.

While the uptick in demand is good news for the sector, many glove makers have “switched off production” because of the oversupply situation a few years ago.

“The glove industry is now running at 50% capacity. It is easy to switch off production. To restart it needs collaborative action by all players.

“The government also has to ensure workers’ return, materials and logistics. All these factors need to work in tandem,” Low said.

Malaysia produced up to 230 billion pieces of gloves at the height of the pandemic and prices soared to crazy levels, Low said.

Between 2020 and early 2022, prices reached US$120 to US$140 per 1,000 pieces versus US$18 and US$20 (RM85 and RM95) per 1,000 pieces today.

“The lowest was US$14 for 1,000 pieces earlier this year in China,” he said, adding that the situation in the sector will be more stable in a few months.

Low’s views are in line with RHB Investment Bank’s outlook on the sector.

The research house said sales are expected to pick up by the second half of 2024 given more balanced demand-supply dynamics, leading to improved profitability.

RHB Investment Bank is overweight on the sector. It sees the industry’s “excess capacity gradually phasing out”.

It should achieve demand-supply equilibrium by the end of 2024/2025, it said.

It also expects price competition from Chinese peers to gradually subside, due to rising quality concerns with “higher rejection rates from the US, and as Chinese players’ pivot towards sustainability”.

Kenanga Research reiterates that the current challenging and competitive landscape will persist throughout 2024. While some players have returned to the black, the tepid profitability does not support lofty valuations, it said.

“The industry will continue to face massive oversupply, predatory pricing by certain overseas players, weak demand and high cost of inputs such as nitrile butadiene rubber and latex. Nitrile butadiene rubber prices have moved up since the fourth quarter of 2023,” the research house said.

On a slightly brighter note, it said further decommissioning of older production facilities locally should help to ease supply pressure.

As for the price of latex, Kenanga expects the price to rise due to low production during the “wintering months between December and May”.

Year-to-date, prices have risen by 8% with buyers walking away whenever there is an attempt to raise prices, Kenanga said.

“Chinese manufacturers are still selling at US$16−US$18 per 1,000 pieces, which means any attempt by Malaysian producers to raise prices is likely to result in losing market share,” Kenanga said.

Source: Bernama

Demand, prices for medical, surgical rubber gloves rising: Expert

Elridge Energy Holdings Bhd, which manufactures biomass fuel products, filed for an initial public offering on Bursa Malaysia’s ACE Market to raise funds for its expansion, including the construction of a new factory.

The IPO involves a public issue of 350 million new shares and an offer for sale of 350 million existing shares, according to a draft prospectus filed with Bursa Malaysia. All in all, the listing offers investors up to a 35% stake in the company at a price to be determined later.

“We intend to expand our production capacity in order to cater for orders from other new and existing customers,” Elridge said. The company currently operates out of a Port Klang factory, which has a capacity of 720,000 tonnes per year, but has hit utilisation rate of nearly 74% by end-2023, it noted.

The company plans to acquire a yet-to-be-identified land in Kuantan Pahang to build a 105,000-square-feet factory that will raise production capacity by 240,000 tonnes. The company has also earmarked proceeds from the IPO to buy equipment for its new factories in Kuantan as well as in Johor and Sabah.

The rest of the proceeds from the IPO will be used as working capital and to defray listing expenses.

Elridge, partly backed by listed electrical distribution equipment firm Mikro MSC Bhd, mainly manufactures and trades biomass fuel products, particularly palm kernel shell and wood pellets, used to generate heat or electricity.

Biomass products are typically a by-product or waste from renewable sources such as plants or organic waste.

Elridge’s net profit more than tripled to RM23.57 million on revenue of RM335.25 million in the financial year ended Dec 31, 2023, the prospectus showed. Gross profit margin was 13.71% while profit-before-tax margin was 8.4%.

The public issue would comprise 80 million shares for the public, 20 million shares for eligible persons, and 250 million shares through private placement to select investors. The offer-for-sale tranche meanwhile will also be done through private placement to select investors.

Proceeds from the sale of existing shares would go entirely to the selling shareholders, including chief executive Yeo Hock Cheong and a group of foreign investors. 

KAF Investment Bank is the principal adviser, sponsor, underwriter and placement agent for the IPO.

Source: The Edge Malaysia

Elridge Energy files for ACE Market IPO to raise funds for new factory

Nextgreen Global Bhd (Nextgreen), a pulp and paper manufacturer, along with IOI Corporation Bhd’s indirect unit, IOI Paper Pulp Sdn Bhd, have signed a shareholders’ agreement to establish Malaysia’s first large-scale zero-waste paper pulp plant.

The plant will be developed within Nextgreen’s 410-acre Green Technology Park in Pekan, Pahang.

Under the agreement, a new private limited company named Nextgreen IOI Pulp Sdn Bhd (NIP) will be formed, with Nextgreen holding a 55 per cent stake and IOI holding the remaining 45 per cent. NIP will operate a paper pulp production facility, initially capable of producing 100,000 metric tonnes per annum of chemical bleached pulp made from oil palm empty fruit bunches (EFB) using Nextgreen’s patented preconditioning refiner chemical-recycle bleached mechanised pulp (PRC-RBMP) technology.

This development phase is expected to take 18 to 24 months and cost approximately RM600 million.

The collaboration aims to transform agricultural waste like EFB into green and sustainable products such as woodfree paper, tissue paper, premium packaging paper, and pulp molded packaging.

Nextgreen managing director Datuk Lim Thiam Huat said the company will contribute its technical knowledge and the rights to use its patented PRC-RBMP technology.

“By adopting the waste-to-value concept, this bio-integrated zero waste process ensures that by-products from every part of the pulp production process is fully utilised through conversion into green products and renewable energy in a closed-loop system.

“This collaborative venture unifies our proactive ESG measures, contributing actively to the nation’s efforts to achieve the United Nations Sustainable Development Goals,” he said in a statement today.

IOI Group managing director and chief executive Datuk Lee Yeow Chor emphasised the significance of utilising palm-based biomass for value-added applications within the circular economy.

He said that alongside the palm wood venture, which utilises oil palm trunks, this joint venture will play a pivotal role in helping IOI Group make significant strides towards achieving its group-wide Net Zero emissions target.

Source: NST

Nextgreen and IOI Paper to set up Malaysia’s first large-scale zero-waste paper pulp plant

Malaysia, a major exporter of agricultural and mining commodities, experienced a significant decline in these exports in 2023.

But economists pointed out that the decline was offset by a surge in exports of manufactured goods. 

This reflects a fundamental shift in Malaysia’s export dynamics, highlighting a progress towards higher value-added industries.

They said the lower export of agricultural and mining commodities mirrors broader shifts in global demand, structural transformations within Malaysia’s economy and mounting environmental pressures affecting key commodities like palm oil.

Sunway University economics professor Dr Yeah Kim Leng said primary agricultural and mining exports accounted for RM192.1 billion or 12 per cent of total exports in 2022.

He said it declined 19 per cent to RM156.1 billion or 11 per cent of total exports in 2023.

“It has been declining steadily, in line with the country’s structural transformation from an agricultural and mining-based economy to a manufacturing-led one since the early 1970s. 

“The current export share remained sizeable at 12 per cent in January and 13 per cent in February.

“The sharp 19 per cent decline in Malaysia’s commodity exports in 2023 typifies the volatility of the global primary commodity sector.” 

According to Yeah, Malaysia’s top primary commodity exports in 2023 were liquefied natural gas or LNG (RM59.6 billion or 4.2 per cent of total exports), palm oil (RM59.4 billion or 4.2 per cent) and crude oil (RM28.7 billion or 2.0 per cent).

These three commodities accounted for 95 per cent of Malaysia’s total primary commodity exports in 2023. 

Yeah said fossil fuels not only face depletion but a steady decline in usage as the economy shifts to renewables and green energy such as solar, wind and hydropower. 

He said LNG is less polluting than coal and crude oil. 

Yeah suggested that investments in new gas fields would have less risk of becoming stranded assets compared to crude oil and coal mining.

In line with the National Energy Transition Roadmap, he said opportunities abound for expanding renewable energy supplies as well as exports to neighbouring countries, especially Singapore.

“Palm oil and its derivatives will continue to be the country’s top exports, although its expansion will be limited by the availability of suitable agricultural land and sustainability concerns over deforestation. 

“Consequently, the growth strategy should focus on increasing yields and productivity under more intensive cultivation to sustain palm oil production and exports.” 

Economic analyst Dr Zulkufli Zakaria said palm oil is the largest agricultural export commodity, contributing more than US$17 billion, followed by rubber with more than US$1.3 billion.

“In ensuring the growth of these commodities, there should be a multi-stakeholder approach involving the government, industries and community. 

“Technology and robotics must be adopted to capture the interest of future generations.”

Tradeview Capital Sdn Bhd vice-president Tan Cheng Wen said the commodities driving Malaysia’s trade and exports are oil and gas (O&G), followed by palm oil-related products. 

Tan opined that a key headwind is the rising rhetoric regarding the environmental, social and governance agenda which may impact demand growth over the long term. 

“Hence, it is essential that the government and the industries work together to improve industry practices.

Primary commodities a decade ago

According to Yeah, Malaysia was heavily reliant on exports of primary commodities such as palm oil, rubber, timber and natural gas a decade ago.

He said recent data indicated a decline in the production and share of these commodities in the export market. 

“Factors such as uneconomical size, low yields, high production costs and labour shortages contributed to this concentration on a few commodities, resulting in their declining significance in total exports,” he noted.

Zulkufli also highlighted the historical prominence of tin, timber and fish. 

However, he underscored the unsustainable practices and lack of commodity growth management, which led to a decline in production for timber and fish exports. 

This paved the way for a reconfiguration of Malaysia’s export portfolio, with a focus on more sustainable and resilient commodities.

Contrary to expectations of diversification, Tan observed that the composition of primary commodities in Malaysia’s exports remained largely unchanged over the years.

“This decline has been offset by the remarkable growth in manufactured goods exports, which accounted for 85 per cent of the total exports in 2023, a substantial increase from 67 per cent in 2013. 

“This surge in manufactured goods exports signals a fundamental shift in Malaysia’s export dynamics, highlighting the nation’s progress towards higher value-added industries and economic resilience,” he said.

As Malaysia navigates the complexities of global trade dynamics, the economists stressed the evolution from primary commodities to manufactured goods, underscoring the importance of strategic diversification and sustainable growth practices. 

They said embracing innovation, enhancing productivity and fostering a conducive business environment will be pivotal in shaping Malaysia’s export trajectory in the years to come.

Sectoral headwinds

On challenges in the commodity sector, Yeah said the main threat to the O&G industry is the shift to renewable energy. 

He said governments around the world are committing to net zero emission targets to combat global warming and climate change.

“The export-oriented palm oil sector faces stiff competition from other palm and vegetable oil-producing countries.

Yeah said the commodity sector has weathered numerous cycles in the past. 

He added that the ability of industry players to cope with demand and price volatilities will determine their survival and the pace of industry consolidation. 

Meanwhile, Zulkufli said there are multiple challenges potentially affecting Malaysia, one of which is the shortage of domestic labour due to the low wages.

The limited adoption of technology in enhancing output is another challenge. 

Consequently, he said there is low productivity due to human limitations compared to mechanical output. 

This situation leads to lower yields and lower quality in the production of goods.

Additionally, Zulkufli said fluctuating prices have historically been a factor, when capitalism and competition were adopted as part of the business model.

“However, Malaysia can mitigate this by improving production through technological advancements and diversifying the end products of commodities, moving away from solely exporting raw materials. 

“This would reduce the vulnerability to commodity price fluctuations.” 

Regarding foreign exchange risk, Zulkufli said there are two perspectives to consider. 

He said while a weak ringgit may seem advantageous, it is not without drawbacks. 

He added that the continuous decline in the ringgit makes Malaysia less competitive, as it affects various factors such as logistics costs, production costs, insurance and equipment maintenance.

“Equipment requires regular servicing and repairs, and costs escalate as the ringgit weakens. 

“Many other hidden costs exist but are not mentioned, impacting the overall sales profit margin of commodities,” he said.

Tan emphasised that price fluctuation is a significant challenge.

He noted that Malaysia also faces challenges such as the lack of cheap labour for the agricultural sector and depleting oil reserves for the mining sector.

CPO price forecast to remain firm in 2024

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the price outlook for crude palm oil (CPO) should be in the range of RM3,800 to RM3,900 per tonne by the end of 2024.

Nevertheless, he said ageing trees, the need for replanting, higher fertiliser costs and labour supply are expected to impact CPO price in the long term.

“My sense is that the price should be fairly stable, although from now until October, the production cycle is expected to increase, which may affect prices due to higher supply. 

“Having said that, there is great potential in the palm oil sector regarding the renewable energy space. 

“Areas such as waste-to-energy and sustainable aviation fuel would mean the greater use of palm oil.” 

Kenanga Research has maintained its average CPO price assumption of RM3,800 per tonne in 2024. 

In a recent note, the research firm said the price is usually firmer in first quarter and weakest in third quarter, mainly due to the third quarter harvests of four major oil crops (palm, soyabean, rapeseed and sunflower)  which make up 70 per cent to 80 per cent of the world’s edible oil production.

FSMOne Malaysia believes that CPO price will stay elevated throughout this year, supported by the El Nino weather, seasonal effects-driven factors and pricing convergence against soyabean oil. 

Besides, it said the extension of low import duties on edible oils in India until March 2025 could provide support for the CPO price in 2024. 

“This could drive the earnings of plantation players in 2024 while the uptrend in CPO price might buoy investors’ excitement in this sector as well. 

“Our forecast for CPO price in 2024 is RM 3,800 to RM4,000 per tonne,” the investment firm said in a report.

The Malaysian Palm Oil Board (MPOB) anticipates a positive trajectory for the country’s palm oil industry in 2024 on the back of better labour supply and stronger price projections.

It forecasts the price of CPO to range between RM3,900 and RM4,200 per tonne. This is driven by the implementation of the B35 biodiesel mandate in Indonesia, which is likely to reduce the global palm oil supply for export. 

MPOB said the mandate could lead to a tightening of the global palm oil supply due to unfavourable weather conditions in 2023 and ongoing tightness in soyabean production until at least this month. Consequently, the country’s palm oil stocks are expected to remain below two million tonnes, helping to stabilise the price.

Source: NST

Economists say decline in export of agricultural and mining commodities shows shift towards high value-added industries

The government has, through the Investment and Trade Action Coordination Committee (JTPPP) meeting today, discussed the proposed revision of the Industrial Coordination Act 1975.

Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz said the Act had never been revised since 1976. The Industrial Coordination Act of 1975 was introduced with the aim of maintaining orderly development and growth in the country’s manufacturing sector.

This Act requires manufacturing companies with shareholder funds amounting to RM2.5 million and above or that employ 75 or more full-time workers to apply for a manufacturing licence from the Malaysian Investment Development Authority (MIDA), an agency under MITI.

“Since I have been at MITI, one of our focuses has been the immediate implementation of investment projects involving industry as well as export commitments,“ he said through a posting on X today.

The sixth JTPPP meeting today also discussed the Kerian Integrated Green Industrial Park.

He said coordination across various ministries including the Ministry of Finance (MoF), the Ministry of Economy as well as other relevant ministries and agencies is important because each project involves different approvals based on the source and jurisdiction of certain ministries, and the type of investment or project.

“For example, matters related to tax incentives are under the jurisdiction of MoF, not MITI. The important thing is that we all work together as a whole-of-government to make sure all bases are covered and we leave no stones unturned.

“Alhamdulillah, ‘good traction’ on JTPPP so far and various projects are already running smoothly,“ said Tengku Zafrul.

JTPPP was established in October 2023.

Source: Bernama

Govt mulling proposal to review Industrial Coordination Act 1975 – Tengku Zafrul

The Investment, Trade and Industry Ministry (Miti), through its agencies, is working with the Entrepreneur and Cooperatives Development Ministry (Kuskop) to address the issue of Bumiputera companies’ low participation in the manufacturing sector.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said among the main challenges is the lack of access to financing facilities for Bumiputera companies as well as small and medium enterprises (SME).“Therefore, in the New Industrial Master Plan (NIMP) 2030, an allocation was provided to Miti to strengthen local companies. The Budget 2024 announcement earmarked a fund of RM200 million to implement NIMP 2030.“In terms of access to financing, the government gives local banks the opportunity to be more proactive in helping SMEs, which represent the country’s largest group of employees and employers,” he said during the question-and-answer session in the Dewan Negara today.He was replying to a supplementary question from Senator Datuk Husain Awang who wanted to know the government’s initiatives to expose Bumiputera startup companies to alternative sources of financing such as equity crowdfunding.Tengku Zafrul said limited access to financing is not the only major issue; another is capacity building.“We have to share our experience and knowledge, and this is being carried out through SME Corporation and other related agencies,” he said.The third challenge is to ensure market access to their products, the minister said, adding that the Malaysia External Trade Development Corporation is also playing its role to ensure the companies can compete at the global level.

Source: Bernama

MITI, Kuskop working to boost Bumiputera participation in manufacturing sector

Semiconductor exports this year will be “better” than the RM575 billion sales in 2023, thanks largely to the relocation and investments in Malaysia by renowned global companies.

Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai said 20 per cent of exports are shipped to the United States (US) — easily making Malaysia its largest supplier.

Rated sixth in the world for semiconductor exports, Malaysia reportedly has 7.0 per cent of the global market share.

The local semiconductor sector showed its tenacity last year when exports dropped only 3.0 per cent from RM595 billion in 2022 when global industry sales dipped 8.2 per cent.

“For Malaysia to maintain this position, it needs to ship RM1.2 trillion worth of exports by 2030 — which is nearly double (from RM575 billion in 2023) as everybody is building wafer fabrication plants globally,“ he said.

A wafer in electronics is a thin slice of semiconductor while wafer fabrication involves repeated sequential processes to produce complete electrical or photonic circuits on semiconductor wafers.

There is no denying that Malaysia faces competition, nevertheless, Wong said.

Vietnam, Thailand, the Philippines, and India are also cashing in on the relocation, taking advantage of the US-China trade tensions by getting into the chip business.

But Wong said Malaysia has stood out well due to the big names that have invested here.

Intel has made known its intention to invest to the tune of US$7 billion (US$1=RM4.7), AT&S 1.7 billion euros (1 euro=RM5.09), and Infineon 5 billion euros.

This excludes companies with smaller investments of between RM1 billion and RM2 billion each, he said.

Austrian semiconductor firm AT&S opened its plant in Kulim, Kedah in January 2024 producing integrated circuit (IC) substrates for next-generation microchips.

Intel has announced two fabrication plants in Ohio, two in Arizona, and another in Germany. Taiwan Semiconductor Manufacturing Co (TSMC) has also announced its plans for a fabrication plant in Arizona, its second one there and it inaugurated its first plant in Japan this year.

Wong said Samsung and Chinese companies also announced plans to build mid- and high-end fabs.

Semiconductor companies are increasing their capacities in anticipation of growth as “everybody is trying to capture a piece of the pie,” Wong said.

The US, European Union, South Korea, Japan, and China are putting money behind it to position themselves to capitalise on this growth, he said.

Source: Bernama

2024 exports to be better than last year: Malaysia Semiconductor Association

Malaysia is emerging as a hotspot for semiconductor factories, as US-China tensions prompt companies to diversify operations.

In a report on Wednesday, CNBC quoted Kenddrick Chan, the head of the digital international relations project at LSE IDEAS, the foreign policy think tank of the London School of Economics and Political Science, as saying that Malaysia has well established infrastructure, with around five decades of experience in the ‘back end’ of the semiconductor manufacturing process, particularly in assembly, testing and packaging.

Semiconductors — critical components found in everything from smartphones to automobiles — have been at the centre of a US-China technology war.

American chip giant Intel said in December 2021it will invest more than US$7 billion (RM33.18 billion) to build a chip packaging and testing factory in Malaysia, with production expected to begin in 2024.

“Our decision to invest in Malaysia is rooted in its diverse talent pool, well established infrastructure, and robust supply chain,” Aik Kean Chong, Intel Malaysia’s managing director, told CNBC.

Intel’s first overseas production facility was an assembly site in Penang launched in 1972 with a US$1.6 million investment. The company went on to add a full test facility, as well as a development and design centre in Malaysia.

Another US chip giant, GlobalFoundries, in September opened a hub in Penang to “support global manufacturing operations”, alongside its plants in Singapore, the US and Europe.

“The forward-thinking policies and strong support from the regional government, together with partners like InvestPenang, have built a strong ecosystem for the industry to thrive,” said Tan Yew Kong, a senior vice-president and general manager of GlobalFoundries Singapore.

Germany’s top chipmaker Infineon in July 2022 said it will build a third wafer fabrication module in Kulim, while Neways, a key supplier to Dutch chip equipment maker ASML, said last month it will construct a new production facility in Klang.

“Malaysia’s edge has always been its skilled labour in packaging, assembly and testing, and lower comparative operating costs, making exports more competitive globally,” said Yinglan Tan, a founding managing partner of Insignia Ventures Partners. He added that the ringgit’s current position makes the country an “attractive location for foreign players”.

Malaysia holds 13% of the global market for chip packaging, assembly and testing services, said the Malaysian Investment Development Authority in a Feb 18 report. Exports of semiconductor devices and integrated circuits increased by 0.03% to US$81.4 billion in 2023, amid global chip demand weakness.

Meanwhile, Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai said many Chinese firms had diversified their production to Malaysia, calling the country China’s “plus one”.

Source: The Edge Malaysia

CNBC: Malaysia a hotspot for semiconductor firms

NCT Group of Companies (NCT Group) today launched the sales gallery of NCT Smart Industrial Park (NSIP), the country’s first managed industrial park.

Its founder and group managing director Datuk Seri Yap Ngan Choy said with today’s unveiling of the sales gallery, the company is providing potential investors with a preview of what the future holds in NSIP.

NSIP is raising the sustainability bar with its goal to become the first net-zero emissions industrial park by 2050 by leveraging artificial intelligence (AI) technologies and a low-carbon industrial framework.

With a gross development value of RM10 billion, the project is taking root within Selangor State’s Integrated Development Region in South Selangor (IDRISS) initiative where NSIP will be introducing clean electrification and other climate-friendly alternative energy sources combined with cutting-edge infrastructure.

Yap highlighted that NSIP is poised to revolutionise the industrial ecosystem in Selangor and Malaysia.

He said the company is redefining industrial standards by setting a new benchmark for excellence in the sector as a net zero park.

“This substantial development will also showcase Selangor’s unwavering commitment to driving the industrial revolution. “We take great pride in being located in IDRISS and plan to work hand-in-hand to elevate the state’s stature as an economic powerhouse, while supporting the nation’s broader goals of climate-friendly growth and attracting solid foreign direct investment.

“It is a testament to our collective determination to forge a better, more sustainable future for all,” he added.

Among the electrification technologies to be spearheaded at the park are rooftop solar photovoltaic (P) installations to power operations by optimising energy systems for maximum efficiency and enhanced mobility.

To support its digitalised industrial and energy system management, NSIP will introduce a digital twin technology deployed on a cloud-based Al loT platform.

With its advanced technology and seamless integration of Environmental, Social and Governance (ESG) principles, the park is the embodiment of the Al-Low Carbon Industrial Park concept.

Other key features of the park include an Al-Managed Centralised Labour Quarter (CLQ), with high-quality accommodation for up to 30,000 workers, rainwater harvesting systems and a ground-breaking 100-year flood mitigation plan.

In addition to its dedication to sustainability and digitalisation, NCT said NSIP will serve as the nucleus and comprehensive one-stop centre.

It said the park will offer a diverse array of services from key entities such as Invest Selangor, MIDA, Human Resource Development Corporation (HRD Corp), Perkeso and Kuala Langat Council, to facilitate the swift establishment of businesses and smooth operations.

NCT also stated it is on track for SIP’s potential inclusion in the prestigious Global Lighthouse Network (GLN) recognised by the World Economic Forum.

Source: NST

NCT Group launches sales gallery of country’s first managed industrial park

Mamee-Double Decker Sdn Bhd will invest as much as RM150 million in a new production facility, using the latest generation of automatic production technology to support its business growth.

Chief executive officer Pierre Pang said with the additional capacity, Mamee can double its business achievements again in the next five years, noting that the company had taken 48 years to record an income of RM780 million. However, in the past five years, Mamee has managed to double this figure thanks to the rapid growth of its export business to more than 80 countries around the world, especially the United States and Europe.

“We have been handling delivery of nearly 300 containers every month from our factories in Malaysia.

“We predict that with the strong support from the Ministry of Investment, Trade and Industry (MITI), the Malaysian External Trade Development Corporation (MATRADE) and the Malaysian Investment Development Board (MIDA), we can double this amount in the next two or three years,” he said at the Ihya Ramadan programme and the breaking of fast with orphans on Monday.

Pang said with the support given, Mamee managed to build strong partnerships with global companies around the world such as The Lotus Biscoff Group based in Belgium, Shinsegae Foods based in South Korea and also business ownership partnerships such as The Good Crisps Company in the United States and The Golden Duck, Singapore.

He said the strong partnerships have allowed Mamee to expand its halal snacks to the world “and further make our company one of the largest snack companies in the world, or at least the largest company in the halal snack segment.”

“We cannot thank MITI, MATRADE and MIDA enough for their contributions in making Mamee a fast-growing and innovative global snack company that champions halal food made in Malaysia,” he added.

He noted that MITI plays a major role in determining the country’s business policy and planning, encouraging and supporting the growth of local businesses such as Mamee to expand to overseas markets.

In addition, MATRADE also plays an important role in promoting and expanding the export market of local Malaysian companies, especially Mamee, at the international level as well as MIDA’s role in ensuring smooth operations and empowering Mamee’s business.

Meanwhile, the director of Mamee affairs and government relations, Ahmad Syukry Ibrahim, said Mamee organised the Ihya Ramadan programme and breaking of fast ceremony in collaboration with MITI to support and donate to the 100 orphans who attended. “This programme proves that the company cooperates with government agencies and also the community to donate something to the needy,” he said.

Mamee has also launched the ‘Junior Monstar Scholarship’ initiative for company employees whose children have the potential to develop their talents to a higher level. 

Source: Bernama

Mamee to invest RM150mil for latest production technology in expansion drive

The government will continue to facilitate the furniture industry’s development in terms of raw materials, productivity and design aspects through various initiatives and programmes, said Deputy Plantation and Commodities Minister Datuk Chan Foong Hin.

Likewise, the furniture industry should continue to work closely with the ministry and its agencies such as the Malaysian Timber Industry Board (MTIB), Malaysian Timber Council (MTC), and Malaysian Timber Certification Council (MTCC), for the betterment of the industry and its exports, he said.

“I urge all industry players to continue working closely with the stakeholders throughout the supply chain and broaden the network to explore new (strategic) possibilities,” he said at the opening ceremony of the Export Furniture Exhibition (EFE) 2024 here today.

He added that such efforts would bring positive outcomes and lead to a better performance of the furniture industry in the future.

Besides, he also reckoned the furniture industry has been playing a prominent role in the timber sector.

“For 2023, the timber sector has exported RM21.85 billion worth of timber and timber products.

“Wooden furniture contributes RM9.1 billion of export value, (contributing) 44.11 per cent of the annual timber and timber product export,” he said, adding that timber has traditionally been the third largest commodity sector after palm oil and rubber.

According to Chan, timber is one of the eight commodities identified under the National Agricommodity Policy 2021-2030 (DAKN 2030) to be transformed in a more sustainable, competitive and market-oriented manner.

“It is to ensure they remain strong growth drivers of Malaysia’s economic growth. We target the export value of timber and timber products at RM28 billion by 2025 and RM32.8 billion by 2030,” he said.

Meanwhile, Malaysian Furniture Council president Desmond Tan said the council is hoping that the government would create a raw material hub for the furniture industry to ensure industry players can obtain their raw materials conveniently and affordably.

“This will assist in keeping the cost of the production as low as possible and preserve our competitiveness in the global market,” he added.

More than 400 exhibitors are participating in EFE 2024, which runs from March 4 till March 7.

Source: Bernama

Govt to continue facilitating furniture industry’s development

Malaysia saw a total of RM152 billion approved investments for the manufacturing sector in 2023, of which RM46.1 billion were realised last year, involving 445 projects, according to the Ministry of Investment, Trade and Industry (Miti).

The achievement, which created 29,693 jobs, is deemed “encouraging”, considering that the projects have been able to be implemented in less than the usual period, which usually takes between 18 to 24 months, Miti told Dewan Negara on Monday.

Throughout 2023, Miti said only one manufacturing investment project was cancelled, involving RM19.2 million, while the implementation of nine projects were deferred, involving some RM455 million.

Malaysia’s approved investment rose 23% to a record high of RM329.5 billion in 2023, of which 57.2% was from foreign capital while 42.8% from domestic.

The services sector constituted the largest portion of total approved investment in 2023, amounting to RM168.4 billion or 51.1%, followed by the manufacturing sector’s RM152 billion or 46.1%, and the primary sector’s RM9.1 billion or 2.8%.

Miti said approved investment refers to investment planning for the capital expenditure of a project in the long term, including the cost of purchasing land, factories, machines, machinery and others.

“Generally, an approved project takes between 18 and 24 months to be implemented or realised, depending on the scale and complexity of the projects concerned,” it said.

Source: The Edge Malaysia

Nearly one-third of 2023 approved investment in manufacturing sector realised, says MITI

The Malaysia Semiconductor Industry Association (MSIA) will visit the Netherlands to attract Dutch semiconductor companies to invest in Malaysia, while many Chinese firms are keen to relocate here.

Semiconductor firms relocating overseas are considering Malaysia as their preferred investment destination as every company is preparing for future growth, driven by the phenomenal increase in the usage of artificial intelligence (AI) in semiconductor chips.

MSIA president Datuk Seri Wong Siew Hai said the mission to the Netherlands follows a high-energy dialogue recently between the association and potential Dutch investors who were exploring business opportunities in the semiconductor sector in the Asia-Pacific region.

“We are now trying to make a trip to the Netherlands and convince them to come here. This is purely an industry initiative,” he said.

“When we see an opportunity like this, it is important to talk to them and tell them the attributes we have in Malaysia, more so since the companies are of high value which will strengthen our ecosystem,” he told Bernama.

The planned visit comes as Dutch firm Neways, a global innovator in mission-critical technology for leading semiconductor, connectivity and smart mobility companies, set up a new state-of-the-art manufacturing facility in Klang with production to start in the fourth quarter of 2024.

Wong also revealed that a lot of Chinese companies “are coming here” to overcome disruptions to their production and exports and avoid US tariffs following the US-China trade war.

As for companies preparing for future growth, he said semiconductor revenue is projected to increase to a staggering US$1 trillion (RM4.7 trillion) by 2030.

“This is driven by the phenomenal growth in the use of semiconductors in every aspect of our lives,” he said.

US companies are coming out of China and looking to relocate while Chinese companies unable to ship to the US due to Washington citing “national security” concerns are also wanting to move abroad to avoid American tariffs.

Malaysia, Wong said, should capitalise on this and the timing now is perfect due to the geopolitical tension between the US and China.

Source: Bernama

Semiconductor industry to woo Dutch, China investors

Northeast Group Bhd, a precision components manufacturer, on Friday filed for an initial public offering (IPO) on Bursa Malaysia’s ACE Market to raise funds for expansion, including on a new factory costing over RM50 million.

The IPO involves a public issue of 168.99 million new shares and offer for sale of 51.8 million existing shares, according to its draft prospectus posted to Bursa Malaysia. All in all, the listing would offer investors up to a 30% stake in the company.

Northeast, based in Penang, mainly manufactures precision engineering components used in the photonics, electrical and electronics, semiconductor, telecommunication and optoelectronics industries for both local and foreign clients including from the US, the UK, Thailand, Singapore, Canada, and Germany.

Further, the company also provides surface finishing, sheet metal fabrication and mechanical sub-assembly. Northeast recorded a profit after tax of RM18.36 million on a revenue of RM93.34 million for the financial year ended Sept 30, 2023.

Out of the 168.99 million new shares, the company is allocating 37 million to the public, 29.6 million for eligible persons, and 102.38 million to select investors and Bumiputera through private placement. The sale of existing shares meanwhile will also be done through private placement for Bumiputera investors.

Proceeds from the new share sale will be used to finance construction of a new factory in Penang with production floor space totalling 79,020 sq ft. Northeast also plans to purchase new computer numerical control machines, or CNC machines, which will raise its operating capacity by 8.5-25%.

Northeast has also earmarked some of the proceeds as working capital, repaying bank borrowings, and to defray estimated listing expenses.

Meanwhile, any money raised from the offer-for-sale will accrue entirely to selling shareholders including managing director Ng Chay Chin and his brother and senior operations director Ng Chai Hee.

Affin Hwang Investment Bank is the principal adviser, sponsor, sole placement agent and sole underwriter for the IPO. 

Source: The Edge Malaysia

Northeast Group files for ACE Market IPO to fund new RM50 mil factory

The Sarawak government will continue to empower downstream industries such as in biomass production, furniture and industries based on bamboo and engineered wood to further increase the production of high value-added wood products.

Sarawak Deputy Premier Datuk Amar Awang Tengah Ali Hasan said this empowerment measure is part of efforts to transform the timber industry in the state which is currently still focused on exporting the main product.

“Therefore, timber industry players are urged to be more committed to implementing the transformation of their activities and operations towards the production of high value-added wood products by using more raw materials from forest and bamboo plantations,” he said.

Awang Tengah who is also Sarawak’s Minister of International Trade, Industry and Investment said this at the Sarawak Timber Industry Development Corporation (STIDC) Annual Donation Ceremony here today.

According to him, the biomass industry has great potential to be explored in the development of the green economy.

“Biomass products such as wood pellets, biochar and charcoal briquettes are in high demand in the global market because they are more environmentally friendly fuels than fossil fuels,” he said.

Awang Tengah said the production of wood pellets from Sarawak has increased by 130 per cent from 35,522 tonnes in 2022 to 81,800 tonnes in 2023.

He said Japan, France and South Korea are the main importers of these wood pellets which also have great potential to generate green energy in Sarawak, in line with the state government’s green energy policy.

“At the same time, players in the timber industry are advised to adopt Industrial Revolution 4.0 (IR4.0) technology which emphasises the use of automation and digital technology to be more resourceful,” he said.

He said STIDC has produced the Engineered Wood Product Blueprint as a guideline for the development of the engineered wood industry in Sarawak, in addition to implementing research and product development initiatives in smart collaboration with local and foreign research and higher education institutions.

“The Sarawak Bamboo Industry Development Plan has been prepared by STIDC to develop this industry in a more planned manner. The global export value of bamboo-based products in 2022 was US$68 billion and is expected to grow at a rate of four per cent per year,” he added. 

Source: Bernama

Sarawak govt empowers downstream industries to produce high value wood products, says deputy premier

National carmaker Perodua is set to lead the charge in making EVs accessible and affordable to the masses.

Slated for the end of 2025, this initiative aligns with the New Industrial Master Plan 2030 (NIMP2030), aiming to transform Malaysia into a hub for affordable EV production.

On March 26, International Trade and Industry Minister (MITI), Tengku Datuk Seri Zafrul Abdul Aziz said on X that Perodua has been picked to be the nation’s lead brand to produce affordable EV.

He said Perodua’s role in breaking the cost barrier, could facilitate a broader adoption of eco-friendly transportation solutions such as EV.

“Yesterday I had a discussion with Perodua to find out more about the development of their EV project and how the government can help to make the project a success for the well-being of the people and the national economy.”

According to Soya Cincau, Perodua was reported developing a prototype EV in collaboration with an undisclosed international car manufacturer.

The anticipated 2025 launch of Perodua’s electric vehicle coincides with the expiration of the RM100K price ceiling for imported completely built-up (CBU) electric vehicles under the MITI’s Franchise AP policy.

The automaker previously unveiled a concept design for an electric vehicle, dubbed the Electric Motion Online (EMO), at the Malaysia Auto Show in May 2023.

It has the size of a Myvi and boasts a 50kWh battery capable of delivering a range up to 350km on a single charge.

Source: The Sun

Perodua to spearhead affordable EV charge in 2025

Malaysia’s export of microchips to the United States has hit 26 per cent, positioning it among the top countries in microchip exports.

Prime Minister Datuk Seri Anwar Ibrahim said that Malaysia is the country of choice for many nations looking to issue microchips.

“We are fortunate because of the decision of many countries to make Malaysia a new hub, particularly in the issue of microchips. 

“Right now, our exports to meet the demand of the United States have reached 26 per cent, one of the highest from any single country. 

“We have major investments in this field, such as those from German chipmaker, Infineon, as well as Nvidia, which is coming with a major programme for artificial intelligence,” he said in his speech at the grand opening of the Cybersecurity Centre of Excellence (CCoE) here today.

On the CCoE, Anwar said it served as a milestone in Malaysia’s journey towards creating a robust cybersecurity ecosystem, necessitating strong partnerships across the public and private sectors.

“We commend Blackberry for helping to upskill our next generation of cyber-defenders, accelerating our goal to bolster national and regional security and innovation.  

“We envision this center as a capacity-building hub for the Southeast Asian region, with a specific focus on enhancing threat intelligence sharing, and fostering regional cooperation in mitigating cybersecurity threats and combating cybercrime.

“As the chosen location for the establishment of the CCoE, Malaysia aims to deliver upon our shared goal to establish a globally competitive skills and learning ecosystem in the Indo-Pacific region,” he said. 

Anwar added that it is important for the country to forge international partnerships, specifically those harnessing advanced technologies like artificial intelligence and machine learning. 

“Through this strategic collaboration, we not only stimulate economic advancement and prosperity but also bolster the resilience of our cybersecurity infrastructure against the risks that pervade the digital landscape, by keeping the nation’s data, conversations, and citizens safe.”

Meanwhile Anwar said the 5G rollout in Malaysia has reached 80.3 per cent coverage as of February in populated areas, while internet coverage has reached 97.07 per cent. 

He noted that communications connectivity will continue to catalyse digital transformation, specifically in industry verticals such as manufacturing, health care, warehousing, agriculture, and more, in addition to spurring the growth of data centers and cloud services.

BlackBerry Limited has opened a world-class CCoE that will deliver cybersecurity training and cyber threat intelligence to help Malaysia and partners in the region better prevent, deter, and respond to cyber threats facing governments and organizations in the Indo-Pacific region.

The company also announced its new BlackBerry Cybersecurity Curriculum is now available for the first time through the new facility, offering a wide range of globally recognized course offerings and certifications to help grow a skilled cybersecurity workforce and ecosystem in Malaysia and the region. 

The new center will provide Malaysians and others in the region with increased opportunities for professional networking, knowledge-sharing, and common skills training, covering everything from cyber fundamentals to leadership and technical areas. 

The CCoE curriculum offers training courses on BlackBerry® cybersecurity products and services to upskill in areas like AI and machine learning, as well as highly-specialized courses delivered by the SANS Institute, Canada’s Rogers Cybersecure Catalyst, and other internationally recognized certification partners. 

It also offers select opportunities for scholarships for women cybersecurity professionals, with further plans to augment existing university curricula with CCoE student education programmes.

Source: NST

Malaysia among top countries in microchip exports

The government is committed to developing the semiconductor industry which is now a strategic source of income for the country, said Deputy Investment, Trade and Industry (MITI) Minister Liew Chin Tong.

In line with the expression, “semiconductor is the new oil”, he said trade and technology competition between China and the United States (US) in the semiconductor industry has benefited Malaysia.

This competition, according to Liew, has led multinational semiconductor companies to make strategic decisions to build a second supply chain and not to focus solely on one country to ensure a secure and resilient supply chain or “derisking”.

He was responding to a question by Datuk Ahmad Amzad Mohamed@Hashim (PN-Kuala Terengganu) who asked about the plans of the ministry in positioning the nation’s Electrical and Electronics (E&E) industry as a major semiconductor production hub to take advantage of the competition between the US and China in the chip war.

“Malaysia should seize the waves of competition between China and the US to provide a policy to create an environment for local companies to excel and generate high income,” Ahmad Amzad said.

Liew noted that many companies have selected Malaysia as a new location for their production facilities and the country has an advantage over other nations with a mature semiconductor industry ecosystem since the 1970s, especially the E&E cluster in Penang and Kulim, Kedah.

“Such investments are expected to continue to position Malaysia as one of the key investment destinations in advancing the global chip industry.

“Malaysia should seize this golden opportunity to expand the country’s semiconductor industry and become a high-value-added semiconductor producer with activities along the value chain, such as Integrated Circuit (IC) design, wafer fabrication, assembly and testing as well as technical marketing,” he said.

Liew emphasised that the government aims to ensure that investments in Malaysia will create value chains that create high-paying skilled jobs.

“We want to create a supply and value chain that encompasses local companies. We aim to create 100 technology companies with an annual revenue of RM1 billion before 2030.

“Currently, we only have nine local technology companies that can generate RM1 billion a year.

Another 10 companies generate between RM100 million and RM1 billion a year,” he said. 

Source: Bernama

MITI: Govt committed to develop semiconductor industry as strategic source of income

The investments entering Penang have yet to exacerbate the labour shortage situation due to the poor global demand.

As the global demand levelled off, the pressure on local companies to engage more workers to ramp production has reduced, according to The Free Industrial Zone, Penang, Companies’ Association president David Lacey.

“However, the manufacturing industry is subjected to cyclical swings, especially the electrical and electronics (E&E) sector, which is volatile.

“The authorities, the federal and the state governments should seize opportunities during this lull to address the labour shortage problem lest the situation returns to normalcy, and labour supply becomes a bigger issue again,” Lacey told StarBiz recently.

He noted that the manufacturing sector provided attractive salaries, bonuses, and compensation packages to workers to compete in the tight labour market in Penang.

“The higher wages come with expectations of improved productivity from individual engineers and also across the different departments in organisations,” he added.

According to Lacey, the semiconductor industry lacks skilled workers in the integrated circuit manufacturing and product design departments.

“These shortages are for skilled engineers with over five years working experience, which will take time to build and is harder to address quickly,” Lacey added.

On the RM35.8bil investment the state attracted for the nine months of 2023, Lacey said it would take at least 12 months, possibly up to 30 months, to implement the projects in phases.

“The new demand for talent grows from now till the end of 2024 and then throughout 2025.

“This can only be addressed by a ‘net migration’ of science and engineering talent to Penang from around Malaysia, creating additional pressures on housing and transportation in the state, as well as economic growth,” he added.

The RM35.8bil investment from 107 projects is expected to create 11,000 job opportunities.

Malaysia’s major competitors are Vietnam and Thailand, while India is the iceberg on the horizon.

“However, Malaysia has a huge advantage over Vietnam and India in the form of the large pool of ‘tacit knowledge’ in manufacturing built up over the last 50 years.

“Manufacturers in Penang have been making price-competitive, high-quality products for decades, and it takes a considerable amount of time and effort to train and develop a workforce who can deliver that.

“The way to boost Penang and Malaysia’s competitive edge is to build upon that strong foundation of tacit knowledge by applying it to advanced manufacturing and new opportunities – continuous change and evolution within companies to find new products and markets,” he said.

According to Lacey, Penang’s niche strength is producing products for markets with high reliability and quality expectations, such as automotive and premium consumer applications.

The opportunity now is to extend that niche into new markets such as medicine.

“For instance, leverage electronics manufacturing to make health monitoring or ‘telemedicine’ products where electronics and software provide wellness info to individuals and doctors via your smartphone,” he added.

Lacey added there was an unexpected surge in demand for industrial land triggered by the pandemic and trade war, causing a short-term shortage, while authorities seek to make ready new industrial parks.

Meanwhile, Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai said the E&E industry faced a labour shortage from 2022 till the first half of 2023.

“Since then, there hasn’t been a shortage due to the slowing down of the global economy.

“We see only strategic hiring currently,” Wong said.

However, there will be a looming labour shortage in the second half.

“As the E&E sector improves, we expect most companies to start hiring again in the second half of 2024.

“Some 15% of our engineers have left to work in Singapore, Australia, the United States and the United Kingdom, reducing local talent supply.

“We are also seeing hiring from Taiwan and China.

“Even those fresh out of university, without any prior working experience, will soon find themselves in demand in our industry,” Wong added.

He also noted the investment would take 18 to 24 months to implement if the new project needed land and building.

“If it is an expansion project with available space, the rollout period will be six to 12 months.

“However, the global economic climate will also determine how fast the project commences and ramps production,” he said.

Wong said the relevant authorities, such as the Economic Planning Unit, Malaysia Productivity Corp, and The Special Task Force To Facilitate Business, helped expedite the approval of expatriate passes for foreigners.

“Before June 2023, the time needed to issue such passes was six months to a year.

“Now, it takes only ten days to issue, which has strengthened our competitive edge,” he added.

Meanwhile, Aemulus Holdings Bhd chairman Datuk Seri Lee Kah Choon said foreign companies were migrating from China because of technically sensitive E&E products (TSP).

“If TSPs are sanctioned, foreign operations in China will eventually be eliminated by the Chinese local competitors too, which is one of the main reasons overseas companies are leaving China.

“The Chinese know that TSPs will be embargoed sooner or later.

“They will need to come out from China to look for alternatives, which is one of the reasons for the surge of Chinese investment overseas.

“Apart from that, the Chinese also need to expand their market overseas for products that have manufacturing advantages, such as solar panels and electric vehicles,” he said.

Lee said Malaysia’s E&E supply chain was manufacturing excellence in the back-end space.

“A non-targeted, general investment flow into Malaysia will not be sustainable because of her limited human resources.

“On the contrary, these non-targeted investments will cannibalise her limited resources,” he said.

Lee said the investment figure might indicate the nation’s attractiveness to investors.

“The figure is based on the Malaysian Investment Development Authority’s approval only.

“The approved projects may still land in other countries.

We need to monitor the implementation rate of these ‘approved’ investments closely,” Lee said.

Source: The Star

Lower pressure on firms to ramp up production

Automation to autonomy is the name of the game in the manufacturing industry. While automation remains important, there is a shift towards achieving manufacturing processes that are truly auto­nomous, says Marcelo Tarkieltaub, regional director of Southeast Asia at Rockwell Automation.

According to Rockwell’s latest State of Smart Manufacturing Report, 44% of Asia-Pacific (Apac) manufacturers plan to adopt smart manufacturing next year. Meanwhile, 88% of Apac manufacturers say they intend to grow or maintain their current level of employment, thanks to smart manufacturing technologies.

Some of the barriers to the adoption of smart manufacturing are employee resistance to technology, lack of skill sets to manage smart manufacturing implementation and lack of a clear definition of the value of smart manufacturing, according to Rockwell’s report.

To meet the demands of smart manufacturing, manufacturers should empower their employees with the necessary skills to adapt to evolving roles and collaborate effectively with artificial intelligence (AI) systems, says Tarkieltaub.

For instance, AI and augmented reality (AR) tools could be used to create virtual environments for experiential learning and knowledge sharing.

“The integration of AI plays a pivotal role in enhancing decision-making capabilities and driving cost-reduction. Although this transformation may not be immediate, cloud technology is emerging as a key enabler, providing a platform for agile and rapid implementation of autonomous solutions,” he says.

“The convergence of autonomy, AI and cloud technology marks a transformative phase in manufacturing, promising increased efficiency and responsiveness in the face of evolving industry demands.”

A couple of technologies are pivotal in the transition to smart manufacturing — cloud technology and generative AI. Cloud technology will facilitate the transition by providing a scalable and interconnected platform. Meanwhile, generative AI will play a significant role in shaping the future of the manufacturing process.

“For many industries, automation has been a game changer. The idea of removing human intervention as much as possible has resulted in faster production of everything and has reduced human errors in production,” Tarkieltaub points out.

Here’s where AI will lend a hand. “While automation has been pivotal in streamlining repetitive tasks, the focus is now expanding to imbue machines with decision-making capabilities, reducing the reliance on constant human oversight,” he says.

“AI is a key player in this evolution, as it empowers machines to analyse data, adapt to dynamic conditions and make informed decisions in real time.”

Rockwell has AI-driven systems capable of real-time parameter adjustments to enhance efficiency and product quality in the manufacturing process.

In collaboration with Microsoft, Rockwell has expanded its partnership to incorporate generative AI, which is Azure OpenAI Service, into industrial automation. Tarkieltaub explains the integration of generative AI will automate routine tasks, improve engineering efficiency, address labour shortages and accelerate time-to-market.

According to Rockwell’s report, 23% of operating budgets are spent on technology, although this varies across industries. This is as the Malaysian manufacturing sector is set to expand by 4.2% in 2024, according to the Fiscal Outlook and Federal Government Revenue Estimates report. The growth is driven by improved performances in both export- and domestic-oriented industries.

“No matter the investment level, budgets must be set with an eye firmly on the future. Manufacturers will need to invest in areas that help to address skills shortages, while increasing automation, machine learning and AI, in order to fully exploit the potential of technology and insights across the organisation,” he says.

This is why Tarkieltaub believes embracing smart manufacturing is not just a choice but a strategic imperative for manufacturers.

He recommends manufacturers start with a comprehensive assessment of current capabilities and set specific goals, build a cross-functional team that ensures collaboration across departments for a holistic approach, and invest in robust connectivity and integration which lays the foundation for seamless communication between devices and systems.

“The adoption of smart manufacturing varies across industries and may take several years as businesses navigate challenges such as technology integration, workforce upskilling and addressing cybersecurity concerns,” notes Tarkieltaub.

He reiterates that generative AI will accelerate the transformation of the manufacturing and industrial sectors. “With its ability to leverage vast amounts of data and predict outcomes, AI can significantly improve decision-making, optimise production lines, enhance product quality and reduce waste,” he says.

“As AI continues to evolve, new applications and capabilities will emerge, further shaping the landscape of smart manufacturing. Keeping abreast of the latest developments in AI is essential for industries looking to leverage these technologies for improved efficiency, innovation and competitiveness.”

Source: The Edge Malaysia

Automation: Focus on skill empowerment to build smart manufacturing workforce

Eco World Development Group Bhd is confident its largest green business park, Eco Business Park V (EBP V) will become a prime investment destination with a strong local and global appeal.

Eco World Development Group Bhd divisional general manager Eco Central Ho Kwee Hong said the impending completion of the RM150 million LATAR Express Interchange by the end of 2024 is set to enhance its connectivity.

“Currently the construction is ongoing at site and is happening very well and construction will be completing by end of this year. And by Q1 2025, basically we will open it for traffic in Q1’25,” she said at the signing for the purchase of industrial land and factories land EBP V involving Central Gate, North Gate and West Gate last Friday.

Ho said EBP V provides business spaces featuring ready-made factories and customisable industrial land, as well as outstanding infrastructure with environmentally friendly amenities and top notch safety features.

“I foresee our business park will be successfully evolving into a hub that is capable of attracting local and also international investors and fostering strategic partnership for mutual growth of everyone who reside in our business park,” she said.

Eco World Development Group Bhd’s 769 acres green business park, EBP V has signed agreements with 11 new companies for the purchase of land and factory lots.

EBP V is part of the Eco Grandeur township that is currently being developed via a joint-venture between EcoWorld Malaysia and the Employees Provident Fund.

A memorandum of understanding (MoU) was also signed between EcoWorld and GoldenHome Living Co Ltd to establish a strategic partnership in providing housing furniture such as kitchen cabinets, wardrobes and innovative product packages for EcoWorld’s residential, commercial and industrial developments.

This is the second signing event of EBP V.

Last year, EBP V held a similar event with more than 15 companies from various sectors signing on to various businesses at the park and some of the industrialists have started their business in EBP V now.

With a total GDV of RM3.5 billion, the green industrial park spans 769 acres across five meticulously planned phases: East Gate, West Gate, North Gate, Central Gate and South Gate.

Since its launch in 2017, EBP V has attracted over 400 diverse enterprises from various industries and its West, North and Central Gates are fully sold out.

Meanwhile, East Gate has been fully completed with an occupancy rate of over 90%.

“As one of our four revenue pillars, Eco Business Parks contributed a record-breaking RM1.04 billion to the Group’s total RM3.6 billion sales in FY2023,“ Eco World president and CEO Datuk Chang Khim Wah said in a separate statement.

“This pillar has seen exponential growth in recent years recording an overwhelming increase in sales of 374% from FY2020, Eco Business Parks will continue to be a magnet, attracting more regional and international investors and industrialists.”

Source: The Sun

Eco Business Park V aims to become prime investment destination

Teladan Group Bhd’s subsidiary Riverwell Resources Sdn Bhd (RRSB) has signed a memorandum of understanding (MoU) with Melaka Corporation (MCORP) to develop a 138 hectare (ha) German Technology Park at Ayer Panas, Jasin, Melaka.

The Melaka-based property developer said the proposed project aims to attract German investment into the state of Melaka and strengthen Malaysia-Germany economic ties. 

It encompasses various industrial developments, including industrial bungalow lots, semi-detached factories, shop offices, and centralised labour quarters.

Under the MoU, Teladan said both parties will collaborate on feasibility studies and development planning of the proposed project. 

It added that the agreement seeks to leverage on the construction expertise of Teladan and its landbank located along Jalan Gapam. 

At the same time, MCORP will lead the development and sales of the proposed project.

Teladan managing director Richard Teo Lay Ban said with a proven track record of developing over RM2.9 billion in combined gross development value (GDV) across residential, commercial, and industrial projects, the company is confident in its contribution to this project’s success.

“Looking ahead, we are optimistic about Melaka’s economic trajectory, driven by the 2024 Budget’s focus in enhancing Melaka’s competitiveness, alongside the government’s commitment to positioning the state as a global tourism hub and trade and investment centre. 

“With Teladan’s deep experience in Melaka, we are well-positioned to explore new development opportunities and unlock significant long-term commercial value,” it said in a statement.

Melaka chief minister Datuk Seri Utama Ab Rauf Yusof said this collaboration strengthens Malaysia’s position as a preferred investment destination within Asean and deepens economic ties with Germany. 

He added that the proposed project aligns with the government’s economic growth initiatives by promoting industrial advancement and attracting high-tech industries to Melaka. 

“By leveraging on Malaysia’s strategic location in Southeast Asia and its robust infrastructure, we aim to drive Melaka’s industry, business, and trade forward. 

“The proposed project represents a significant step towards advancing international trade activities, creating job opportunities, and broadening the country’s market access. 

“At MCORP, we are committed to supporting Malaysia’s economic growth and development,” he said.

This project builds on the robust trade relations between Malaysia and Germany, which have flourished significantly over the past decade. 

Germany has remained Malaysia’s top trading partner in the European Union, while Malaysia is now Germany’s largest trading partner in Southeast Asia. 

Furthermore, Malaysia continues to be an attractive destination for foreign direct investments (FDIs) with German companies investing €8.5 billion (RM43.61 billion) as of 2023.

As of Dec 31, Teladan holds a total of 433.6 ha of undeveloped landbank, with a significant portion located in Melaka with a potential GDV of RM2.7 billion.

Source: NST

Teladan Group to build 138ha German Technology Park in Jasin, Melaka

Neways, a key supplier to Dutch computer chip equipment maker ASML, has said it will build a new plant in Klang.

The facility will begin production in the fourth quarter of 2024, giving the company additional capacity in Asia, where it also has a plant in Wuxi, China.

“Neways will focus on developing and producing advanced modules and cabinets for some of the world’s most renowned players in the semiconductor sector,” the company said in a statement yesterday to announce the decision.

A Neways spokesperson said they could not disclose the size of the investment, but the company intends to grow its operation in Malaysia to 200 employees.

“The choice for Malaysia is largely driven by the country having a well-developed ecosystem…including a well-established mature semiconductor supply chain,” the company said.

Neways, which was de-listed in 2021 after being taken over by investment firm Infestos for €177 million (RM900.9 million), makes electrical control units, power controls, and wiring systems for ASML’s lithography products.

Source: Reuters

ASML supplier Neways to build new plant in Malaysia

Asia Digital Engineering (ADE) is well positioned for substantial growth in the coming years as plans are underway to establish a new maintenance, repair and overhaul hangar facility at the Kuala Lumpur International Airport (KLIA), its chief executive officer Mahesh Kumar says.

ADE is the engineering and maintenance subsidiary of Capital A Bhd.

Mahesh expressed his confidence that revenue will double by 2025 and progressive growth thereafter.

The new hangar facility, spanning 8.19 ha, is being constructed in two phases, with Phase 1 slated for completion in May 2024 and operational by August, while Phase 2 will follow swiftly, with operational readiness anticipated by October this year.

Mahesh Kumar revealed that the hangar facility will also see Phase 3 coming up once Phase 2 is completed, and the company has a first right of refusal with Malaysia Airports Holdings Bhd for a 2.07-ha piece of land near the facility in KLIA.

“The soil testing work has begun (for Phase 3), and we are planning to start construction once the second phase is ready, expecting completion by the end of 2026,” he told Bernama.

Mahesh said the hangar facility’s Phase 3 will accommodate another four lines of narrow-body aircraft.

Upon the completion of Phases 1 and 2, the hangar facility will make ADE the largest service provider in Malaysia and one of the largest in the region.

Mahesh further stated that the new hangar facility would provide flexibility for ADE to service wide-body aircraft such as A330 and B737 types.

Designed in an ‘L’ or boomerang shape, the facility would allow for maximum land use and more hangar lines.

Source: The Star

Capital A’s ADE expects to double its revenue by 2025

More Malaysian companies should consider investing in the semiconductor industry and make the leap to position themselves in the front-end of the global semiconductor ecosystem, said Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz.

In making the call, the Minister said although Malaysia is a prominent player in the global semiconductor sector for over 50 years now, there is still room for improvement.

“We have been a major player in the last 50 years and we now want to move up that value chain from back end to front end, but at the same time we also want more Malaysian companies to participate in the development of this ecosystem,” he said.

He said Malaysia has strengths in both the digital and green economies. While Malaysian companies play a big role in renewable energy, there is the need for improvement in the digital economy, namely in data centres.

“I think we should encourage more Malaysian companies to invest in this sector as well and MITI is actually engaging with local companies, investors, especially the government-linked investment companies, to see how they can participate as well,” he said on the sidelines of Industrial Take Off Year 2024 programme organised by Concorde Club at Wisma Bernama today.

Tengku Zafrul said MITI is working on institutionalising the process and invite local businesses to invest in the sector.

He pointed out that Malaysia has seen favourable flows of capital and investments as a result of trade tensions between two superpowers, the United States and China.

It was reported that Malaysia has emerged as a surprising victor in the global semiconductor business during the current trade war between the US and China.

The news report further said that manufacturers in Malaysia are harnessing the chance to upscale their operations and extend their global market footprint as rival manufacturers from the two global powerhouses face constraints.

source: Bernama

Malaysian firms should consider investing in semiconductor industry to make the leap in value chain – Tengku Zafrul