Malaysia’s electric vehicle (EV) industry is accelerating, with over 100,000 electrified vehicles recorded and more than 3,300 charging stations established nationwide to date, positioning the country as a key regional hub for EV innovation.

The government’s commitment aligns with its ambitious Net Zero Goals for 2050, as it strengthens collaboration with China to drive manufacturing, research, and sustainable growth in the automotive sector, said Malaysia Automotive Robotics and IoT Institute (MARii) chief operating officer Mohd Sharulnizam Sarip.

Speaking at the Malaysia-China EV Forum, he highlighted the nation’s strategic initiatives to build a robust EV ecosystem via collaboration, including memorandums of understanding (MoUs) with various Chinese organisations focusing on joint ventures in manufacturing, research and development, and technology transfer.

“Such efforts aim to elevate Malaysia’s role in the regional and global EV value chain. The National Automotive Policy (NAP) 2030 remains the cornerstone of Malaysia’s EV agenda, promoting the production of eco-friendly vehicles, battery recycling facilities, and infrastructure development,” he said.

The forum, held in conjunction with the Malaysia-China Summit 2024, from Dec 17-19, was organised by China EV100, a third-party think tank, alongside Qube Integrated Malaysia Sdn Bhd and the Malaysian Chamber of Commerce China.

Mohd Sharulnizam said MARii has outlined plans to develop EV battery recycling capabilities, including hydrometallurgy facilities in Perak, to support sustainable resource management in the growing EV sector.

He noted that China’s involvement in Malaysia’s automotive ecosystem brings advanced technologies and investment into the local market, boosting demand in the electronics and electrical (E&E) sector.

“These initiatives are expected to complement Malaysia’s standing as the world’s sixth-largest semiconductor exporter, further enhancing high-value manufacturing activities such as wafer fabrication and integrated circuit development.

“With growing government support, industry participation, and international collaborations, Malaysia is well on track to becoming a leading EV innovation hub in Southeast Asia,” he said.

He noted that the ongoing partnerships and sustainable practices are expected to foster a cleaner, technology-driven future, benefitting Malaysia and its global partners.

Meanwhile, during a panel session, Proton Holdings Bhd senior director of corporate strategy Yusri Yusuf emphasised the critical need for strong partnerships to ensure the success of EV adoption, highlighting collaboration as key to addressing challenges in areas such as charging applications and upstream component development

“To accelerate the industrialisation of EVs in Malaysia, we need reliable partners for technology, business, and infrastructure,” he said.

Highlighting Proton’s journey in EV development since 2009, Yusri said the company’s long-term commitment to this emerging sector, has positioned it to compete in the growing EV market, driven by supportive government policies and increasing consumer demand.

“Key areas such as technology integration, policy support, and industry expectations were also highlighted as central to driving EV industrialisation,” he added.

Yusri stressed the pivotal role of policies in encouraging EV adoption while meeting consumer expectations through collaborative development efforts.

Proton is committed to building a comprehensive EV ecosystem by partnering with industry players, including charging infrastructure and technology providers, following the launch of its first EV model, the EMAS 7, he added. 

Source: Bernama

Malaysia accelerates EV growth with China collaboration to boost regional hub ambitions

Worldwide Stainless Sdn Bhd has revitalised Malaysia’s stainless steel industry with its US$95 million (RM424.4 million) acquisition of Bahru Stainless Sdn Bhd.

The reopening of this iconic Pasir Gudang facility not only restores operations but positions Malaysia as a key player in the global stainless steel market.

“This acquisition is more than a restart. It’s a transformation,” said CEO Danny Tan. “We are combining innovation, sustainability, and efficiency to create a future-ready plant that meets global standards.”

Worldwide Stainless is implementing a streamlined production process to enhance efficiency and sustainability. This strategy aligns with its goal to make Bahru Stainless a leader in cold-rolled stainless steel manufacturing.

The plant’s annual capacity of 300,000 metric tons will be ramped up gradually, ensuring operational stability and quality consistency.

Tan explained, “This is not just a cosmetic overhaul. We’re investing in workforce upskilling and adopting innovative technologies to secure long-term growth. Bahru Stainless is set to be a global benchmark of excellence.”

The plant has rehired 90% of its retrenched workforce, reinstating skilled professionals with decades of expertise.

This rehiring underscores the company’s commitment to retaining talent and ensuring continuity in operations. Worldwide Stainless is focused on balancing domestic and international market demands.

As Malaysia’s sole producer of cold-rolled stainless steel, the company will support local industries, including construction, automotive, and manufacturing. Globally, it aims to penetrate high-growth markets in Europe, the US, and emerging regions.

“Our dual strategy ensures we contribute to Malaysia’s economy while expanding our footprint internationally,” said Tan. “We’re delivering quality products to meet the demands of diverse industries.”

The company is also diversifying its portfolio to include high-value sectors such as renewable energy, medical equipment, and advanced manufacturing. This strategic move positions Bahru Stainless to address the evolving needs of modern markets while enhancing its competitive edge.

The company is integrating eco-friendly practices into operations while fostering strategic alliances to promote Malaysia’s industrial capabilities on a global stage.

Participation in international trade exhibitions and collaborations with key players are paving the way for Bahru Stainless to become a symbol of reliability and innovation.

“We are committed to elevating Malaysia’s position in the global market,” said Tan. “Through quality, sustainability, and innovation, we aim to set new benchmarks in the stainless steel industry.”

Backed by AmBank Group, which financed 80% of the acquisition, Worldwide Stainless’ leadership team brings decades of expertise to this ambitious venture.

Their vision ensures Bahru Stainless’ resurgence as a symbol of Malaysia’s industrial prowess.

Source: The Sun

Worldwide Stainless revives Bahru Stainless with US$95m acquisition

Ningbo Deye Technology, a Chinese producer of power inverters, has announced plans to invest up to US$150 million (RM668 million) in a new manufacturing base for solar equipment in Malaysia.

In an exchange filing in Shanghai on Monday, the company revealed it will establish a subsidiary in Malaysia to produce solar photovoltaic (PV) equipment and energy storage products, according to a report published in South China Morning Post today.

A power inverter is a critical component of a solar panel system.

“With constant changes in the international situation and trade environment, the necessity of deploying overseas capacity is increasingly urgent,” the company stated.

“Setting up a subsidiary in Malaysia will help the company expand into overseas markets and respond to the potential adverse effects of the macro environment and international trade more flexibly.”

The investment, however, is subject to approvals from both the Chinese and Malaysian governments.

Chinese solar and electric vehicle (EV) companies have been looking to South-east Asia as a strategic hub to expand internationally and navigate trade restrictions imposed by the US and European Union.

These measures aim to protect local industries and curb the influx of lower-cost imports.

However, recent tariffs from Washington have added challenges.

The US imposed anti-dumping duties on solar products imported from four South-east Asian countries — Cambodia, Malaysia, Thailand, and Vietnam.

These anti-dumping duties cover solar cells and modules.

For example, Shanghai-based Jinko Solar faced duties of 21.31 per cent for products made in Malaysia and 56.51 per cent for goods from Vietnam.

Jiangsu-based Trina Solar received tariffs of 77.85 per cent for its Thailand-made products and 54.46 per cent for those manufactured in Vietnam.

These tariffs have created further uncertainty for Chinese solar companies, which control over 80 per cent of the global solar panel supply chain but are grappling with a domestic price war exacerbated by weak demand.

Gu Yu, deputy director of the Trade Remedy and Investigation Bureau under China’s Ministry of Commerce, recently addressed these challenges at an annual solar industry conference in Sichuan province.

“Geopolitical conflicts, protectionism, and the efforts of some countries to decouple from China are impacting the operation of global supply chains and trade systems,” Gu said.

He urged solar PV manufacturers to collaborate with local firms in Belt and Road Initiative countries, explore solar power project investments, and increase research and development to enhance global competitiveness.

Source: Malay Mail

Chinese solar giant Deye to invest over RM650m in Malaysia for solar equipment manufacturing

Companies in the manufacturing sector will continue to be exempted from a 80:20 employment requirement ratio until the multi-tier levy mechanism (MTLM) is fully implemented.

The Ministry of Investment, Trade, and Industry (MITI) said this extension provides flexibility for industries to adjust their workforce requirements more flexibly, without compromising the government’s goal of reducing dependence on foreign workers.

The extension was made taking into account various factors and feedback from the industry sector.

Human Resources Minister Steven Sim in response to a parliamentary question in December said, the multi-tier levy mechanism (MTLM) for all sectors, except plantation and agriculture, will be effective Jan 1, 2025.

“MITI will continue to focus on enhancing the skills of local workers as a key step to ensure that the local workforce can compete in an increasingly high-tech global economy.  “This skill enhancement aims to provide more capable workers who can contribute to dignified income and drive sustainable economic growth,” it said in a statement today.

Meanwhile, MITI also noted that it will continue to work with the industry to ensure the manufacturing sector can continue to grow sustainably and contribute to the country’s economic growth.

During the 2025 Budget presentation, the Prime Minister announced that the government would implement MTLM early next year to encourage automation and reduce dependence on foreign workers gradually.

For the manufacturing sector, MTLM will replace the 80:20 policy stipulated in the manufacturing license conditions.

The government also announced that levies collected would be channeled back to the industry.

It will be used to increase the use of technology and automation, improve productivity, reduce dependence on foreign workers, thereby contributing to Malaysia’s increased competitiveness globally.

Source: NST

MITI: Suspension of foreign worker ratio in manufacturing extended until multi-tier levy is enforced

EVE Energy Malaysia Sdn Bhd (EVE), a global lithium battery manufacturer, inaugurated its new manufacturing facility in Padang Meha, Kedah, which will serve customers in the power tool and electric two-wheeler sectors across Southeast Asia, Europe, and North America.

In a joint statement between the Malaysian Investment Development Authority (MIDA) and EVE today, they said that when fully operational, the facility will employ 2,000 Malaysians with a majority in technical field background.

MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid congratulated the company on its impressive milestone, stating “we extend our congratulations on the significant breakthrough achieved in the construction of the Malaysian factory. In the face of the increasingly severe challenges posed by climate change, energy transition and low-carbon development will be at the core of future industries.”

He said “the Malaysian government places great importance on this issue and is moving forward in partnership with EVE Energy Co Ltd.”

“Together, we are committed to promoting local economic growth and technological innovation while driving Malaysia’s energy transition and sustainable development,” he added.

EVE Energy senior vice president Vincent Wong noted that the Malaysia plant had been completed in just 16 months since the groundbreaking in August 2023, marking significant progress in bringing equipment into the field.

“It is anticipated to commence operations in the first quarter of 2025 and will serve as the first overseas factory to achieve mass production and delivery of EVE Energy,” the statement said.

EVE Energy co-founder and CEO Liu Jianhua said “the construction of EVE Energy’s Malaysian factory will further promote cooperation and exchange between China and Malaysia in the field of new energy,” he said.

Liu noted that the Malaysian factory already possesses mature technical reserves and production capabilities and that once completed and operational, EVE Energy’s ability to “manufacture globally, deliver globally, and cooperate globally” will be significantly enhanced, better meeting the delivery and service demands of clients worldwide.

At the ceremony, EVE Energy Co Ltd signed strategic cooperation agreements with several companies such as Greenworks, Chervon, and JTI, “marking a significant step forward in their partnership,“ according to the statement.

The launching ceremony was attended by Huizhou Municipal Government Deputy Mayor Li Junling, Sikh Shamsul Ibrahim, Kedah State Executive Council member Professor Dr Haim Hilman Abdullah, and Liu Jianhua.

Source: Bernama

EVE Energy Malaysia launches advanced battery manufacturing facility in Kedah

The construction of MTD Nexus 28 Industrial Park, characterised by modern and sophisticated industrial premises, is expected to boost economic development in Melaka, particularly in attracting more investors from outside and within the state.

MTD acting group chief executive officer Reime Rizal Abdul Aziz said the construction of 86 units of modern factories in the strategic location namely Taman Tasik Utama, Ayer Keroh is seen as a potential attraction for investors, considering that the ecosystem of the project is built based on the concept of future business and enterprise.

He said the latest real estate project will develop 46 semi-detached factory units and 40 units of one-and-a-half-storey terrace factories in the mature commercial and residential area of Taman Tasik Utama.

“Apart from the strategic location, the provision of solar PV installation structures, smart infrastructure systems, and rainwater harvesting systems will also add significant value, as these elements are among the main drivers for investors in searching for premises to conduct their businesses,” he told Bernama here today.

“More importantly, this project does not lag behind in empowering sustainable development, which not only boosts the local and state economy but is also expected to create more job opportunities, especially for the local community.”

Earlier he officiated at the pre-launch of MTD Nexus 28 Industrial Park, which was also attended by MTD Properties chief operating officer Dr Nik Fauzan Nik Faizul, at the MTD Properties sales office and gallery in Taman Tasik Utama, Ayer Keroh here today.

He said the project, on 2.472 hectares (ha) of land, is expected to be fully completed in by 2027, thereby completing MTD Properties’ achievements in the real estate market in Melaka, including the housing project, Phase 23 Cinerea Heights, that has now recorded over 80 per cent of units sold even though the project is still ongoing.

“MTD Nexus 28 is a ‘starter kit’, however, we believe it will reflect MTD Properties’ credibility in industry-related premises and we certainly have high hopes that this project will bear fruit for other projects.

“As a property developer that has been operating for three decades, MTD Properties’ focus is certainly not only on physical development but also in line with the state government’s development blueprint in building sustainable communities, green technology, and better quality of life, while the projects we undertake are carried out more systematically and meet investors’ demands,” he added.

Meanwhile, MTD Properties will also continue their social responsibility to the community, especially the residents of Taman Tasik Utama, with a total of 65.761 ha of land provided and developed in collaboration with the local government, including primary and secondary schools, religious schools, mosques, an 8.09-ha green area, recreational parks, and a centralised sewage tank. 

Source: The Star/Bernama

MTD Nexus 28 industrial park expected to boost Melaka economic development

Proton Holdings Bhd is confident the momentum that drove up total industry volume (TIV) sales forecast for 2024 could be sustained going into next year, says its deputy chief executive Roslan Abdullah.

Commenting on the recently upgraded TIV forecast by the Malaysian Automotive Association (MAA) that 2024 should see sales touch 800,000 units, Roslan said there is a chance the number can be exceeded, with the sector also seeing a similar 2025 provided the country’s economic situation remains stable.

“Salary increases among civil servants, coupled with the amended minimum wage policy should attract more vehicle buyers, which bodes well for the automotive sector. These wage increases also open the path for financial institutions to provide more loans,” he said.

Roslan was speaking to StarBiz on the sidelines of the launch of Proton’s first electric vehicle (EV) model, the e.MAS 7, an event officiated by Prime Minister Datuk Seri Anwar Ibrahim yesterday.

Proton chairman Tan Sri Syed Faisal Albar had mentioned the e.MAS 7 is a fully green vehicle with zero carbon emissions, which is aligned with the nation’s net-zero commitment, before adding that the group had opened a new research and development (R&D) centre in China’s Hangzhou Bay back in April to strengthen its EV initiatives.

He said the R&D centre has a total of 60 local engineers responsible for the Proton’s e-MAS range in the future, including the e.MAS 7.

“Global auto sales had reached 92 million cars last year and one third of them were in China alone, and therefore, we are glad our partner is a global original equipment manufacturer from China.

“Geely has provided us with the impetus needed to bring us to another level, not just in Malaysia but also in the export markets,” said Syed Faisal.

Meanwhile, Geely Auto Group chief executive officer Jerry Gan said the partnership between Proton and Geely is a representation of pragmatic cooperation and shared success between the companies.

He remarked that Proton’s R&D centre in China marked a deeper integration of both companies R&D’s systems, significantly enhancing Proton’s research and innovation capabilities.

“The e.MAS 7 is a testament to the depth of collaboration between Proton and Geely. Over 700,000 man hours of R&D were invested, with over 100,000km of localised vehicle durability testing conducted,” added Gan.

At the same event, DRB-Hicom Bhd signed a memoranda of understanding (MoU) with the Malaysian Investment Development Authority (Mida) and Malaysia Automotive, Robotics and IoT Institute (MARii) to promote the enhancement and transformation of Malaysia’s automotive industry in the Automotive Hi-Tech Valley (AHTV) project in Tanjung Malim, Perak.

The agreements were inked together with DRB-Hicom’s joint-venture partner, China’s automotive group Zhejiang Geely Holding Group Co Ltd, and carry the objective of transforming the AHTV into a global automotive hub, focusing on the production of next generation vehicles (NxGV) and high-tech automotive components.

The collaboration with Mida, which is valid for two years, will focus on exploring potential areas of cooperation and collaboration to promote investments specifically in the development of the AHTV, with the objective of fostering growth, capabilities and competitiveness of the Malaysia automotive industry.

Key areas of collaboration include promoting the transformation of Malaysia’s automotive industry and Industry 4.0, helping the country to become a leader for energy efficient vehicles in Asean, while also focusing on the production of NxGVs and high tech automotive components.

Concurrently, the agreement with MARii would be for the purpose of exploring areas of cooperation and collaboration in the areas of R&D and talent development as a global strategic project that contributes to the enhancement and transformation of Malaysia’s automotive industry.

Looking back at the e.MAS 7, Proton revealed that the base Prime variant is priced at RM109,800, while the top Premium costs RM123,800 each excluding insurance.

The first 3,000 buyers will get a RM4,000 discount, making the respective prices RM105,800 for the Prime and RM119,800 for the Premium.

Stopping short of disclosing Proton’s sales targets for the e.MAS 7, Roslan said that the group is working closely with Geely for more upcoming EV models, while pledging its support to the government’s net-zero agenda.

When asked if the next models will gravitate towards the more affordable segment, he acknowledged the group is indeed looking into pricing as one of the key factors in its next models after the launch of the e.MAS 7.

Source: The Star

Proton positive about prospects for first EV

Ningbo Deye Technology Co, a Chinese inverter producer, plans to invest up to US$150 million (RM667.5 million) in building a solar equipment manufacturing base in Malaysia.

The company will set up a subsidiary in the Southeast Asian country and plans to make photovoltaic equipment and energy storage products there, it said in an exchange filing in Shanghai on Monday. The investment needs approvals from both the Chinese and Malaysian governments, it added.

“With constant changes in the international situation and trade environment, the necessity of overseas capacity is increasingly urgent. Setting up a subsidiary in Malaysia will help the company further expand into overseas markets and respond to potential adverse impacts of the macro environment and international trade in a more flexible manner,” the company said.

Chinese firms have been tapping Southeast Asian countries to circumvent US restrictions on their products, but Washington has also imposed duties on panels from the region to protect its own industry.

Source: The Edge Malaysia/Bloomberg

Chinese inverter maker plans US$150m solar base in Malaysia

Texchem Resources Bhd will grow its polymer engineering and industrial divisions in 2025 in its effort to tap into the expanding medical, life sciences and wafer semiconductor segments.

President and group chief executive officer Dr Yuma Konishi told StarBiz that the group plans to create synergies between its manufacturing and distribution divisions to widen its product portfolio.

“In 2025, we will harvest the rewards from data memory, data storage, and medical and life sciences-related products that have been successfully launched in the past few years,” he stated.

“Malaysia has also benefitted from substantial foreign direct investment in data centres, semiconductors and medical technology industries.

“We are excited about the potential synergistic impact on our polymer and industrial divisions,” he added.

Konishi noted that Texchem’s collaboration with global fast-moving consumer goods brand owners uniquely positioned the group to drive sustainability with its proprietary product, TEXa – a bio-composite material developed and manufactured in Malaysia.

This aligns with environmental, social and governance challenges, offering solutions that support the circular economy.

“In the medical and life sciences segment, the group will further focus on single-use medical device contract development and manufacturing as our strategic business model.”

He said the group will also focus on the data memory and semiconductor sectors through its series of innovative cleanroom static control packaging products, namely the Wafer Shipper.

“The product’s polymer processing technologies and patented designs will meet the growing demands and needs of the artificial intelligence and data industries, domestically and globally,” he added.

For its industrial trading division, Konishi highlighted that the group will continue to strengthen its long-established business relationships with principals and customers.

The industrial segment focuses on the distribution of chemical products.

“We will help our principals penetrate the Asean markets. That is the reason why they work with us.

“Our strength is our market presence, and we know the market very well. As such, we will work on broadening our products and customers.

“We plan to expand our operations in Indonesia and want to grow geographically in Asean.

“We are currently exploring some options at this stage,” he explained.

According to Konishi, the group expects continued challenges in its food division, primarily driven by foreign-exchange controls in Myanmar.

“While Myanmar remains a relevant country of operation, we recognise the need to manage our risk for business sustainability.

“That is why the natural path is to look at operating from Thailand.

“Thailand has the necessary infrastructure, and its fishery industry is mature.

“We will start by working with a contract manufacturer to move towards a longer-term collaboration.

“However, we need to meet our customers’ high standards, which takes careful planning and resource allocation,” Konishi said.

Besides marine product processing, the group operates a food processing plant in Prai, which serves as the central kitchen for its restaurant chains and external parties.

“We will work on developing ready-to-eat and ready-to-cook products to cater to the current lifestyle needs,” he stated.

Konishi noted that the group plans to strengthen the Sushi King brand, a process that will take time due to its scale.

“The necessary structures are in place. Sushi King has a strong base of over 1.2 million members.

“And the group has witnessed consistent growth in its member base and transactions year after year.

“Our renewed investment in brand building, brand loyalty, top-of-mind awareness and brand relevance will help us capture new customers and keep loyal customers coming back,” he said.

Source: The Star

Texchem to grow polymer and industrial businesses

Sabah’s vision to tap into the billion-ringgit waste-to-wealth industry potentials in oil palm biomass is set for a huge take-off at the POIC Lahad Datu industrial park.

This follows the signing of a sale and purchase agreement for a 19.5-acre land at POIC Lahad Datu for the production of sustainable aviation fuel, biodiesel, and carbon-based products such as carbon black, activated carbon and biochar.

(Carbon black – derived from partially combusting oil palm waste. It is used as pigments and colourants in rubber products, such as tyres.

Activated carbon is used to filter contaminants in air and water. It has also many pharmaceutical applications.

Biochar is made by burning biomass through pyrolysis. It is mainly used in agriculture to restore soil health, raise yield, remediating polluted soil.)

Sabah-based Legenda Biomass Sdn Bhd, which has a sister company operating a waste management and recovery operations at POIC Lahad Datu, seeks to invest RM400 million leading to a comprehensive utilisation of the estimated 20 million metric tonnes of biomass generated mainly by about 124 oil palm mills spread all over Sabah.

From oil palm plantations to oil palm processing mills, the industry is known for producing biomass in the form of trunks (when old trees are fell for replanting, fronds (cut in the process of harvesting oil palm fruits), empty fruit bunches (EFB), when fresh fruit bunches (FFBs) are stripped of their fruits, mesocarp fibres (waste left after oil is squeezed, and palm kernel shells (PKS) are hard shells left after the oil palm kernels are squeezed off their oil. Mills also produced POME (palm oi mill effluent) which has nutrients, residue oil but emits harmful methane.

Although the potential of oil palm biomass is well-established, its full utilization remains elusive. Palm kernel shells (PKS), with their high combustibility, are being exported for green power generation in Thailand and Japan, and some local mills use PKS for energy. There are also limited applications for empty fruit bunches (EFB) and fibers, as well as power generation through methane capture. However, overall biomass utilization remains relatively low.

Sabah’s adoption of a the Sabah Biomass Policy and the imposition of 7.5% export tax on biomass are expected to have a major bearing on sentiments and direction of the biomass industry going forward.

The development of biomass industry in Sabah has been hampered mainly by supply chain challenges although its economic potentials were recognised since the launch of the National Biomass Policy in 2011.
Legenda Biomass’s latest ventures are expected to catalyse an uptake in port operations at POIC Lahad Datu as most of its products are for the export market. POIC Lahad Datu is serviced by a container terminal, a liquid bulk terminal, dry bulk terminal and a barge berth.

“Aside from taking today’s signing as a statement of confidence in POIC Lahad Datu, we see Legenda’s investment in biomass utilisation as a potential game-changer because it represents a major pivot in oil palm value chain in Sabah,” said Datuk Fredian Gan, the Group CEO of POIC Sabah Sdn Bhd who signed the sales and purchase agreement on behalf of the state-owned company, POIC yesterday.

Datuk Tan Pek Chian, the Managing Director of Legenda Biomass, signed on behalf of his company.
The signing held at the POIC Sabah office here was witnessed by POIC Sabah chairman Datuk Seri Panglima Yong Teck Lee and members of the Board.

“Today marks a significant milestone for POIC, as several key agreements are being signed, paving the way for exciting developments ahead,” said Yong.

Tan whose Bumimas business group has waste management-related operations in Kota Kinabalu, Labuan and Lahad Datu, stressed his company’s desire to see wider compliance of the environmental, social and governance (ESG) concept.

“We hope that our biomass centre at POIC Lahad Datu will provide a one-stop solution for biomass downstream processing, and hopefully our entry will attract more investment to POIC Lahad Datu,” he said.

Source: Borneo Post

Sabah`s biomass industry set for major take-off

NCT Group has formed a partnership with the Malaysia Enterprises Investment Association to draw investments and collaborations to accelerate growth of its smart industrial park in Selangor.

The partnership is centred on advancing the NCT Smart Industrial Park (NSIP), positioning it as a global industrial hub by attracting foreign direct investment (FDI) and fostering innovation.

With a specific focus on collaboration with stakeholders from China’s Guangdong province, the partnership includes investor relations programmes, targeted marketing campaigns, knowledge-sharing initiatives and business development opportunities with key cities such as Foshan and Guangzhou. 

NCT Group founder and executive director Datuk Joe Yap Fook Choy said the collaboration with MEIA is instrumental to the development of NSIP.

“MEIA’s expertise in fostering trade and investment partnerships, particularly with stakeholders in China, strengthens NSIP’s position as a global industrial hub.”

“By streamlining business establishment processes and aligning with regional development plans, NSIP is fully equipped to attract foreign investors and encourage sustainable FDI into Malaysia.” 

MEIA chairman Million Lo Wei Hong said it aim to position NSIP as a model for industrial excellence that attracts investments and fosters economic progress on a global scale.

Lo underscored the importance of leveraging advanced technologies such as IoT and AI to ensure operational efficiency and sustainability within NSIP. 

Situated within the Integrated Development Region in South Selangor, NSIP is a trailblazing industrial park combining advanced technologies and sustainable practices with the aim to achieve net-zero carbon emissions by 2050.

Speaking at the signing, Selangor executive council for investment, trade and mobility Ng Sze Han reiterated the state government’s commitment to fostering partnerships that drive industrial progress.

Initiatives like NSIP, he said, is key in generating economic opportunities and enhancing Selangor’s reputation as a center for innovation and global trade.

Source: NST

NCT Group, MEIA to attract investments, collaborations to smart industrial park

Malaysia is strategically positioned as it hosts a significant presence of global solar panel producers and benefits from abundant sunshine, said Deputy Investment, Trade and Industry Minister Liew Chin Tong.

He said Malaysia needs to enhance its capabilities in battery storage to complement its solar energy initiatives.

However, he noted that few countries outside the United States (US), China and Europe possess a well established solar panel supply chain.

Solar panel manufacturers in Malaysia previously concentrated primarily on the US market.

“But it is now time to use their Malaysian capacity to deliver green transition in Malaysia and Southeast Asia at an affordable rate.

“Malaysia should use the sweet spot we are in, such as the manufacturing capacity and the sunshine, to speed up on popularising the adoption of household solar solutions, hastening the pace of green transition,” he said at the launch of Senheng Electric (KL) Sdn Bhd’s solar solutions today.

Additionally, Liew hoped Malaysia will soon adopt a ‘popularising the green transition’ mentality so that the masses or the ordinary people would adopt solar solutions and many other green technologies.

“There is so much we could do to change through the adoption of green technologies,” he said.

Meanwhile, he said climate change is not going to go away and it will remain a major challenge the world will have to grapple with in the decades to come.

The government has stated Malaysia’s net zero commitment from “as early as 2050” to “reaching net zero by 2050”. It is a significant pledge, he said

“One of the key documents guiding the current government is the National Energy Transition Roadmap (NETR), which aspires to align capital, finances and green transition,” he added.

Source: Bernama

Malaysia positioned as key player in solar panel production – Liew

Malaysia is well-positioned to establish itself as a regional leader in the development and production of Sustainable Aviation Fuel (SAF), supported by government initiatives and ongoing policy enhancements, according to the International Air Transport Association (IATA).

The association’s director for energy transition Hemant Mistry said Malaysia’s push toward SAF is part of its broader ambition to achieve net-zero carbon emissions by 2050, led by the Climate Change Action Council.

“The government’s plans under the National Energy Transition Roadmap (NETR), aimed to accelerate energy transformation and create a high-value green economy, is a key step to accelerating SAF production.  

“To develop the SAF ecosystem further, the recent publication of the Malaysia Aviation Decarbonisation Blueprint (MADB) outlines a whole-of-government and whole-of-society approach to work together to do what is needed in addressing climate action,” he told Bernama on the sidelines of IATA Global Media Day 2024, here on Wednesday.

These measures are an innovative and essential element to start a new ecosystem, Mistry added.

Additionally, the Ministry of Plantation and Commodities has also signalled its commitment to boosting SAF production through ongoing discussions about tax incentives.

These measures are expected to attract foreign investment and establish Malaysia as a hub for SAF production in the region, said Mistry.

“The introduction of targeted incentives and the formalisation of policies to support the transition from renewable diesel to SAF at existing facilities are crucial steps.

“This will not only enhance current production but also attract private sector investment to harness the region’s sustainable feedstock potential,” he said.

It was reported that Plantation and Commodities Ministry is collaborating with the Ministry of Investment, Trade and Industry (MITI) to develop a document on a national strategy for SAF to support Malaysia’s SAF production and consumption industries.

As the world’s second-largest palm oil producer, Malaysia is in a strategic position to become a leading global SAF producer, said KPK minister Datuk Seri Johari Abdul Ghani.

He said this aligns with the MADB and supports the nation’s goal of becoming Southeast Asia’s leading SAF producer.

Meanwhile, Petronas is set to establish Malaysia’s first SAF production facility by 2028, marking a major step forward in meeting the rising demand for SAF within the region.

Source: Bernama

IATA: Malaysia poised to become regional leader in sustainable aviation fuel development

South Korean engineering firm Samsung E&A said on Thursday that it has been awarded a contract to build a refinery in Malaysia to produce sustainable aviation fuel (SAF) and other biofuels.

The contract from Italian oil supermajor Eni SpA on behalf of a joint venture with Malaysia’s Petroliam Nasional Bhd (Petronas) and Japan’s Euglena Co Ltd, is valued at US$955 million (RM4.43 billion), Samsung E&A said in a statement. The contract is expected to be signed by the end of January 2025.

The engineering, procurement, construction and commissioning (EPCC) contract’s completion date was not specified, though the Euglena has previously said the biorefinery is expected to be operational by the second half of 2028.

The EPCC contract follows a final investment decision made by Petronas and its partners to develop the project, which is worth over RM6 billion. Petronas and Eni will each initially hold a 47.5% stake in the joint venture, while Euglena will start with 5%, with the option to raise its stake to 15%.

This biorefinery will be located within the Pengerang Integrated Complex in Johor, and upon completion, handle up to about 650,000 tonnes per year of raw materials to produce SAF, hydrogenated vegetable oil, and bio-naphtha.

The planned feedstock will comprise used vegetable oils, animal fats, waste from the processing of vegetable oils, and other biomass, including microalgae oils, which will be explored in the mid-term.

The project comes at a time when major economies are mandating the adoption of SAF.

The European Union (EU) will require at least 2% SAF blends in aviation fuel at the region’s airports from next year onwards, while Singapore will introduce a 1% or higher SAF requirement by 2026. South Korea also plans to introduce mandatory SAF blending from 2027.

Source: The Edge Malaysia

Samsung E&A to build biofuel refinery in Johor worth over RM6b

TMK Chemical Bhd is doubling down on its core business with strategic acquisition plans and the construction of a new plant to meet growing market demand.

Non-independent executive director and deputy chairman Leong Chao Seong revealed that the company is in the early stages of evaluating acquisition targets closely aligned with its existing operations.

“We are not looking to diversify but rather to integrate further within our industry,” he said at a press conference following TMK’s listing on Bursa Malaysia’s Main Market today.

While specifics of the acquisition targets remain under wraps, it has been confirmed that the company’s focus is on bolstering its existing strengths rather than entering new markets.

In addition to the potential acquisition, Leong said, the company is progressing with the construction of a plant slated for completion by 2026.

“Once operational, the new plant will double the current production capacity to 352,254 tonnes of chlor-alkali derivatives, which has already reached the rate disclosed in the prospectus. The plant expansion reflects our commitment to meeting growing market demand and maintaining our competitive edge.”

Leong said the company remains bullish on its growth prospects, citing Malaysia’s robust economic recovery and increased foreign direct investment (FDI) as key drivers. “We see a strong manufacturing rebound over the next two years, supported by new factory developments and industrial activity,” he added.

While remaining optimistic, Leong said, the company acknowledges challenges, particularly in scaling operations beyond its existing markets in Malaysia, Singapore and Vietnam. “Expansion into Indonesia is on the radar, though it will proceed cautiously.”

Leong highlighted Malaysia’s strategic advantage amid global shifts such as the China-Plus-One strategy, noting strong demand for industrial land. “We are seeing real demand with industrial land prices climbing significantly. This reflects investor confidence in Malaysia as a manufacturing hub,” he said.

TMK Chemical shares made a commendable debut on Bursa Malaysia, opening at RM1.97, a 12.6% premium over the initial public offering (IPO) price of RM1.75. The opening price valued the chemical trading and storage company at RM2 billion. The shares closed at RM1.92 on volume of 47.49 million units.

The IPO attracted significant interest, with the public portion oversubscribed by over 14 times. Institutional investors also fully subscribed to the offering, underscoring confidence in the company’s growth potential. The IPO raised RM385 million in fresh capital.

Source: The Sun

TMK Chemical evaluating acquisition targets, proceeding with capacity expansion

FEYTECH Holdings Bhd has entered into a joint venture agreement (JVA) with Wuhu Ruitai Auto Parts Co Ltd, a subsidiary of China’s Chery Group, to jointly design, manufacture, and assemble automotive seat components for domestic and international markets.

A new entity, JV Co, will be established with Feytech holding a 51% stake and Ruitai 49%.

The joint venture involves an initial investment of RM6 million, followed by an additional RM7.73 million in the second year, funded proportionally.

Feytech will utilise internally generated funds for its share.

Feytech CEO Connie Go emphasized the partnership’s alignment with Malaysia’s National Automotive Policy, which aims to foster technology transfer, create high-value jobs, and boost exports.

The collaboration positions Malaysia as Chery’s Southeast Asian manufacturing hub, enhancing Feytech’s reach in international markets.

The JV Co will supply complete knock-down components for automotive seats, primarily for Chery Automobile Co Ltd and its affiliates, marking a strategic move to elevate Malaysia’s role in the regional automotive industry.

Source: The Malaysian Reserve

Feytech partners with China’s Ruitai for RM14m automotive seat JV

Malaysia is on track to become global medical technology (medtech) hub with the country’s strong policies in attracting and executing the right investments, including the New Industrial Master Plan 2030 (NIMP 2030), said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the ministry will continue with the industrial reforms to ensure the resilience and sustainability of Malaysia’s medtech growth to realise this ambitious vision.

“Strengthening Malaysia’s position as a medtech hub, as provided for in NIMP 2030, is not just a strategy. It is also Malaysia’s commitment to safeguarding lives, contributing to Asean’s growth, as well as supporting the global health and wellness sector,” he said in his keynote speech at the International Medical Device Exhibition and Conference in conjunction with Malaysia’s hosting the 28th annual meeting of the Global Harmonisation Working Party here today.

He invited stakeholders to join his ministry in this transformative journey.

Tengku Zafrul emphasised that medtech plays an important role in enhancing healthcare delivery, improving patient outcomes, and driving economic development, and therefore, medtech is clearly an industry that transcends borders in addressing global health challenges.

The global medical devices market size was valued at more than US$518 billion (RM2.3 trillion) in 2023, and it is projected to grow from US$542 billion in 2024 to almost US$887 billion by 2032, representing a compound annual growth rate of 6.3% during the period.

The minister pointed out that Malaysia’s medtech industry is well-supported by the right policies to grow sustainably through NIMP 2030.

For the medtech sector, Tengku Zafrul said, the ministry wants industries to focus on personalised medicine, digital health, and medical robotics to drive economic complexity, efficiency and value-added growth.

He called fon industries to embrace Industry 4.0 technologies such as artificial intelligence, Internet of Things and robotics.

Tengku Zafrul also urged industries to foster more strategic partnerships, in which global medtech companies collaborate with domestic industry leaders to strengthen the local ecosystem and help companies access global supply chains.

“Our medical device industry is currently host to over 200 manufacturers, who collectively generated RM28.15 billion of exports of medical devices in 2023. Thirty of those companies are multinational companies that have made Malaysia their manufacturing base, including renowned brands such as Abbott and B-Braun,” he added.

Tengku Zafrul said the total export of medical devices was valued at RM27.2 billion, a 30.0% increase year-on-year from January-September 2024, which means that exports for 2024 are set to surpass last year’s figure by a comfortable margin.

Source: Bernama

Malaysia on track to become global medical technology hub: Tengku Zafrul

Malaysia has become the preferred destination for over 200 medical device manufacturers and more than 30 multinational companies in the healthcare industry.

Health Minister Datuk Seri Dr Dzulkefly Ahmad said the medical device sector contributed approximately RM18 billion to the country’s economy in 2023.

“This sector has also created approximately 95,000 jobs locally since 2012. Under the New Industrial Masterplan (NIMP) 2030, the medical device industry has been identified as a crucial sector that enhances our country’s investment value.

“As an example, we cater to 60 per cent of the global demand for gloves, (thus) making Malaysia the world’s number one producer of gloves and rubber-based products,” he said during the opening ceremony of the International Medical Device Exhibition and Conference (IMDEC) 2024 here today.

Dr Dzulkefly added that IMDEC 2024 highlighted Malaysia’s commitment to embracing technological advancements while promoting regulatory harmonisation across borders.

“It is a vital platform dedicated to aligning global medical device regulations, fostering international cooperation and establishing unified standards,” he said.

Held alongside the 28th Global Harmonisation Working Party (GHWP) Annual Meeting, IMDEC 2024 brought together more than 600 international delegates and 10,000 visitors from various sectors of the healthcare industry.

The event, themed “Unleashing the Power of Medical Technology, Shaping the Future of Healthcare”, serves as a platform for industry dialogue, knowledge sharing and collaboration in addressing critical challenges, as well as exploring technological advancements transforming healthcare systems.

One of its highlights is the Innovation Presentation Session (INNOMed), which empowers local entrepreneurs with financing and collaboration opportunities to develop locally-made medical devices tailored to Malaysia’s healthcare needs.

Source: Bernama

Malaysia emerges as preferred hub for medical device manufacturers – Dr Dzulkefly

Some 32,535 units of Battery Electric Vehicles (BEV) passenger and commercial vehicles (excluding buses) have been registered in the country and are eligible to receive the benefits of the full road tax exemption incentive as at Sept 30 this year, says Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

The Investment, Trade and Industry minister said to encourage the use of BEV, the government has offered an incentive of full exemption from road tax for four years, starting from Jan 1, 2022, to Dec 31, 2025.

“Based on the registration records from the Road Transport Department (RTD) up to Sept 30, 2024, for passenger and commercial vehicles, approximately 32,535 units of BEV passenger and commercial vehicles (excluding buses) have been registered in Malaysia and, generally, are eligible to receive the benefits of this full road tax exemption incentive,” he said in a parliamentary written reply to a question from Datuk Muslimin Yahaya (PN-Sungai Besar), who asked the ministry to state number of road tax exemptions for Electric Vehicle (EVs).

He also wanted to know what are the measures taken by the government so that the B40 group of income earners can enjoy the use of EVs.

In terms of electric vehicle usage by the B40 group, Tengku Zafrul said the ownership of such vehicles is more focused on the use of electric motorcycles rather than electric cars, considering the lack of locally manufactured electric car options at competitive prices in the local market.

“To cater to this market potential, both national car manufacturers, Perodua and Proton, are planning to produce electric cars to meet domestic demand in the near future,” he said.

Aside from that, Tengku Zafrul said through full exemption incentives for various other taxes, some vehicle manufacturing companies from other brands have also started producing and selling their respective electric cars, offering competitive prices compared to internal combustion engine cars.

To encourage the use of electric motorcycles in Malaysia, he said his ministry, through its agency MARii, has implemented the Electric Motorcycle Use Promotion Scheme (MARiiCas)

“This scheme offers a rebate of RM2,400 for the purchase or subscription of electric motorcycles, specifically for Malaysians with an annual income below RM120,000.

“The scheme was introduced in 2024 with the aim of encouraging the public to seize the opportunity to switch to fully electric-powered vehicles as their daily mode of transportation.

“Under Budget 2025, this scheme has been extended for another year until 2025,” said Tengku Zafrul.

The Ministry, through MARii, he assured will continue to promote this scheme so that more Malaysians, including the B40 group, can take advantage of this incentive opportunity to own at least one electric vehicle, such as an electric motorcycle, as an alternative mode of transportation.

Source: The Star

More than 32,000 BEVs registered as at Sept 30, eligible for benefits, says Tengku Zafrul

Chinese manufacturers have significantly contributed to the Malaysian economy via sectors such as electronics and electrical, automotive and transport since Malaysia-China diplomatic relations were established in 1974.

The Southeast Asia Research Centre for Humanities (Search), in an analysis report, said through the adoption of advanced technologies, innovation, and support for SMEs, these companies have strengthened Malaysia’s industrial value chain, enhanced export competitiveness, and established the country as a regional hub for advanced manufacturing.

“Chinese construction firms have also made substantial contributions by developing high quality infrastructure using advanced building technologies, with a strong emphasis on safety and environmental sustainability.

“These efforts have bolstered Malaysia’s sustainable development capabilities and global competitiveness, attracting foreign investment while creating local business opportunities and jobs,“ said Search’s senior research fellow Dr Ong Sheue Li at the presentation of a report titled “Assessing the Roles of Chinese Enterprises in Malaysia’s Economic Development” here recently.

The report was jointly released by the China Enterprises Chamber of Commerce in Malaysia (CECCM).

Ong said green industries, renewable energy initiatives and the digital economy, including e-commerce and technology, play a pivotal role in driving Malaysia’s high growth and sustainable economic transformation. At the same time, Chinese firms in Malaysia have made significant contributions to human capital development.

Search CEO Ian Neo Chee Hua said the proportion of Malaysian high-skilled employees of Chinese enterprises operating in Malaysia exceeded 56% in 2024 and is expected to surpass 62% by 2030. The proportion of local semi-skilled employees in Chinese enterprises operating in Malaysia exceeded 70% in 2024 and is expected to reach 74% by 2030.

“The growth in high-skilled jobs was largely driven by Chinese enterprises’ strong focus on talent development and the continuous adoption of digital technologies.

“By leveraging technological advancements, facilitating technology transfer, and nurturing local talent, these enterprises are playing a vital role in Malaysia’s economic transformation,“ he said.

Neo noted that the creation of numerous semi-skilled jobs by Chinese companies underscores a robust localisation strategy, reflecting their deep integration into the local economy.

These efforts provide stable employment and income opportunities for Malaysia’s middle- and low-income households, fostering economic growth and improving social mobility.

“Additionally, the analysis report also showed that 70% of Chinese enterprises hired Malaysian fresh graduates, while 51% employed Malaysian graduates who had completed upskilling or reskilling programmes, with these figures expected to reach 89% and 79% by 2030,“ said Neo. He added that Chinese enterprises also actively champion green initiatives by investing in energy-efficient technologies, recycling waste, and adopting sustainable materials.

Neo highlighted that safety remains a top priority, with top management assuming key responsibilities, maintaining transparent reporting channels for safety issues, and regularly providing safety training to employees.

Since 2009, China has been Malaysia’s largest trading partner, with bilateral trade steadily increasing over the years, according to Malaysia’s Ministry of Foreign Affairs Malaysia this year.

In 2023, Malaysia’s total trade with China amounted to about RM450 billion.

Source: Bernama

Significant contributions by China manufacturers to Malaysian economy since 1974: Research centre

The Penang Silicon Design @5km initiative has received significant backing with Prime Minister Datuk Seri Anwar Ibrahim’s approval of RM50mil for the programme.

Anwar stated that the allocation is crucial to positioning Penang and Malaysia as a regional hub for the semiconductor industry, particularly in global IC Design and AI.

“The project is a major initiative which will establish our country as an important semiconductor hub for the region,” he said during the official launch of the Penang Silicon Design @5km+ Initiative at Eastin Hotel on Saturday (Dec 7).

Anwar mentioned that the approved allocation will be spread over five years (RM10mil per year) and will help Penang elevate its position as a key player in the global semiconductor industry.

He noted that Chief Minister Chow Kon Yeow had requested modest funding of about RM12mil per year but remarked that if he were the chief minister, he would have asked for RM200mil.

He explained that he views the initiative as a source of pride for Penang and Malaysia, showcasing the country’s strength and economic resilience.

“However, Chow understands our government’s constraints, so I’ve approved RM50 million to support and ease this initiative,” he said.

He assured that the federal government will assist InvestPenang and encouraged them to continue working hard to make Penang great.

Led by the state government through its main agency, InvestPenang, this new initiative marks a significant leap forward in advancing the semiconductor value chain, accelerating artificial intelligence (AI) developments, and positioning Malaysia at the forefront of global technological innovation.

The initiative aims to create a unique and interconnected ecosystem for Integrated Circuit (IC) design and technology enterprises within a 5km+ radius of the Bayan Lepas Industrial Park.

Spearheaded by InvestPenang, this ambitious initiative will be supported by attractive incentive packages worth up to RM2mil annually for each company over a three-year period, alongside the establishment of a governance structure to oversee project implementation.

Earlier in his speech, Chow stressed the state’s commitment to strengthening Penang’s position in the global value chain in line with the New Industrial Master Plan 2030 (NIMP 2030) and the National Semiconductor Strategy (NSS).

He said attracting strategic investments remains a priority while creating infrastructure and a conducive environment to support high-impact activities.

“With over 350 multinational corporations (MNCs) and 4,000 small and medium enterprises (SMEs) operating in Penang, the state now hosts more than 30 integrated circuit (IC) design companies—the highest in Malaysia.

“This sector is projected to reach a value of USD84.16bil by 2030,” he said.

He added that Penang also recorded nearly RM20 billion in service sector investments from 2019 to 2023, contributing 9% of the state’s total investments.

Recognising the sector’s vast potential, Chow said that Penang Silicon Design @5km+ was introduced as a proactive measure to bolster the state’s position in the IC design industry.

“This unique concept integrates all IC-related activities and ecosystems within a 5-kilometer radius+, driving economic growth through the creation of high-skilled jobs, increased investments, and sustainable technology development,” he said.

Present during the launch were Investment, Trade, and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz, Finance Minister II Datuk Seri Amir Hamzah Azizan, Human Resources Minister Steven Sim Chee Keong, and Deputy Finance Minister Lim Hui Ying.

Source: The Star

Penang semiconductor hub project to get RM50mil federal support

An accelerating influx of tech investment is transforming local economies in Malaysia and Vietnam.

Caravans of sand-filled trucks and bright red cranes punctuate the skyline of a rapidly expanding industrial complex in northern Vietnam. Further south in Malaysia, quiet villages and palm oil plantations are metamorphosing into heavy-duty technological manufacturing estates.

As multinationals, governments and startups rush to develop AI, establish chipmaking hubs and carve out access to raw computing power, the fallout from escalating Beijing-Washington tensions is seeding the tech nerve centres of the future in Southeast Asia and transforming the towns that surround them.

More than US$100bil in foreign direct investment has coursed through Malaysia and Vietnam from 2020 through 2023, with tens of billions more to come. The growth is resulting in job gains and rising incomes. But property prices and demand for power are increasing, and many of the best jobs are going to foreign workers.

“The US-China tensions under Trump 1.0 increased incentives for multinationals to have a China +1 strategy,” said Ong Kian Ming, a former Malaysian trade and investment deputy minister.

The region is at the heart of a shift that began during the Covid-19 pandemic and is changing the way the world’s smartphones, computers and data centre servers are made. Washington’s clampdown on Beijing’s tech ambitions drove companies to explore production in places as close as Mexico and as far as Southeast Asia, enriching countries where labour is abundant and governments are supportive.

“Covid-19 and the business environment in China expedited these moves, with Trump 2.0 letting the holdovers know that there is no turning back,” Ong said.

That optimism comes despite much broader tariff threats from President-elect Donald Trump this time around, which are complicating the investment environment beyond China. The US president-elect has vowed to impose universal tariffs, and his nominees for key economic positions have proposed targeting Chinese companies that set up shop in third countries, including those in Southeast Asia.

Governments across the region are already moving to shield themselves from Trump’s tariffs. Vietnam, one of the biggest beneficiaries of Chinese off-shoring, has already pledged to buy more aircraft, liquefied natural gas and other products from the US. A Malaysian official this week said he warned Chinese companies against investing just to avoid American tariffs.

At the same time, nations are continuing to do everything they can to boost a region set to collectively become the world’s fourth-largest economy.

“Malaysia sees this as a once-in-a-lifetime opportunity of escaping the middle-income trap and soon achieving its aspirations as a high-income nation,” Chow Kon Yeow, the chief minister of Malaysia’s Penang state, told Bloomberg.

Labelled an upper middle-income nation by the World Bank, with the highest GDP per capita in Southeast Asia by a wide margin after Singapore and Brunei, Malaysia accounts for 13% of the world’s share of chip testing, packaging and assembly. It is now expanding its chip manufacturing capacity.

Just across Vietnam’s border with China and about an hour’s drive from Hanoi, the province of Bac Ninh allows for an easy flow of people and trade. With more than 37,000 new jobs in the four years through 2023, it is fast evolving into a high-tech industrial hub.

Foxconn and GoerTek Inc., key suppliers to Apple Inc., Microsoft Corp. and Sony Group Corp. are among companies that have poured more than US$20bil into this town in the last decade, making critical products that range from AirPods to printed circuit boards.

GoerTek is building out its 127-acre (51-hectare) complex that will employ 50,000 workers. Advertisements abound on local websites, seeking a spectrum of candidates from low-skilled part-time work to senior engineering management positions.

Businesses in Bac Ninh sought candidates for 15,500 jobs through the local employment service platform in the first quarter of this year, up more than 50% from a year ago.

But a qualified workforce remains a challenge, and many of the lucrative assignments are going to Chinese expats.

“A new workforce with new skills is needed in order to meet the requirements of those firms,” said Nguyen Duc Cao, deputy head of Bac Ninh Industrial Zones’ management board.

A pre-requisite for a chip engineer is a bachelor’s degree, but most workers in Bac Ninh are high-school graduates with some vocational training, Cao said.

Vietnam aims to have 50,000 chip engineers by 2030 and is encouraging people to enrol in upskilling programs. Provinces are providing incentives, such as better access to social housing and medical services, to instructors and students in training programs.

The government is also rushing to stabilise power supplies a year after outages caused losses of hundreds of millions of dollars to multinational manufacturers. Large-scale solar rooftop panel projects and programs to generate power from water and waste are underway, while coal plants remain a large part of the solution.

Penang Island sits on the Strait of Malacca, one of the world’s busiest shipping routes and the main channel between the Indian Ocean and the Pacific Ocean. It links major regional economies such as India, Singapore, China, Japan, Taiwan and South Korea.

Not far from its capital George Town, a bustling port with twisting alleys and pastel-painted rowhouses that double as storefronts, Penang ships out more than half of Malaysia’s chip exports.

Since the 1970s, Malaysia has embraced technological advancement and invited foreign investment by attracting major players including Californian chip equipment makers Intel Corp. and Lam Research Corp. The country established a free-trade zone in Penang, provided tax incentives, and offered an affordable English-speaking labour force.

“The key thing is that Malaysia wants to have the best,” said Wong Siew Hai, President of Malaysia Semiconductor Industry Association. “To have that, we have to make sure that, number one, we stay neutral. Not aligned, without any constraints or hesitation, invite, attract and collaborate with any country.”

Much of Southeast Asia is trying to steer clear of picking sides in the US-China divide. The region is even courting Chinese companies affected by the US curbs on chip exports that have made the most advanced AI and memory chips increasingly inaccessible for developers in China.

Moving out of China could also allow companies to bypass origin-specific trade restrictions, further accelerating a bifurcation in the global supply chain.

“Trump’s escalation to target nationality of firms rather than their location could soon result in a world where there are two supply chains for many products – one for the US and other markets that penalise value addition in China, and another for the rest of the world,” said Jayant Menon, a senior fellow at the ISEAS-Yusof Ishak Institute.

“This is a highly inefficient outcome as the gains from scale economies will be compromised, leading to higher prices for all,” Menon said.

Inbound foreign investment in the long-standing electronics manufacturing hub of Penang has accelerated since 2019, nearly tripling from the decade before RM195bil (US$44bil).

Intel is close to completion on its first overseas facility for advanced 3D chip packaging as part of its US$7bil expansion plan. Lam Research’s 800,000-square-foot campus is set to become its largest in terms of capacity and processing capability.

“The most obvious place to see this difference is in Batu Kawan,” said Lee Lian Loo, the chief executive of Penang’s investment agency. The adjacent mainland, formerly home to lush rubber plantations, is now home to American data storage companies Western Digital Corp. and Micron Technology Inc. Its maiden industrial park is expanding.

The residential property market is also booming; it is now home to the only IKEA store in Malaysia’s northern region, and houses the nation’s largest outlet mall.

Previously home to low-value processes for less advanced chips, the nation is now hosting manufacturers for more advanced chips used in smartphones and AI servers.

Living standards and wages are rising, at least on paper. The state’s gross domestic product per capita has grown 38% since 2018.

The neighbouring and largely agricultural state of Kedah, less than an hour’s drive from the crowds of Penang island, is also an emerging home to factories. Infineon Technologies AG in August opened a €7bil (US$7.8bil) plant to churn out silicon carbide power-management chipsets there.

Malaysia has ample power, at one of the smallest price tags in Southeast Asia and a third of the rates for commercial electricity in Singapore.

This makes it an attractive destination — a ChatGPT request can require 10 times more power than a Google search, according to the International Energy Agency. To cope with the increasing power demands, some of the nation’s biggest palm oil producers such as SD Guthrie and IOI Corp. are turning swathes of plantations into large-scale solar plants.

“The people of Penang will benefit from high-skilled jobs created as well as improving infrastructure within the vicinity,” said Chow, Penang’s chief minister. “Moreover, our emphasis in this realm will also create multiplier effects across different sectors, including logistics, transportation, manufacturing, and services.”

But even as labour costs are significantly lower in Southeast Asia than in China, suppliers face challenges. Malaysia has pledged to train 60,000 engineers to fill the hundreds of thousands of new jobs that will emerge in the coming years. In northern Vietnam, many of the high-skilled workers are Chinese.

Ninh last year, when his manager asked him to help the circuits board firm in Dongguan — an electronics manufacturing hub in China — to set up a new plant in the Vietnamese province one-third the size of his home city.

His employer is one of many Chinese suppliers moving operations due to mounting pressure from their American customers, or to keep pace with supply-chain partners who are moving into Southeast Asia. The 27-year-old arrived in Bac Ninh to find himself surrounded by Chinese component makers, assemblers and logistics firms, earning it the moniker ‘Little Dongguan.’

With a rough count of 10,000 expats, China accounts for the largest proportion of foreigners living in Bac Ninh.

Meanwhile, Malaysia’s southernmost state Johor, with a capital that is walkable from neighbouring Singapore, is the next boomtown in the making.

Its western suburbs are quietly powering some of the world’s most sophisticated artificial intelligence models. Rows of vivid green palm trees laden with crimson fruit have given way to boxy concrete buildings, humming with tens of thousands of Nvidia Corp. GPUs. “We are building the backbone of a technology boom,” said Lee Ting Han, an executive council member in charge of investments in Johor.

Its emergence as a data centre market was triggered by Singapore’s temporary moratorium on new data centres at the turn of the decade, a move that was aimed at dealing with energy constraints. “Now Johor is seen as a market on its own and no longer the effects of Singapore’s spillover,” said datacenterhawk analyst Joelyn Chong.

Nvidia is partnering with a local conglomerate to create a US$4.3bil artificial intelligence cloud and supercomputer facility. Microsoft is investing US$2.2bil in cloud computing and AI services.

While a few thousand new jobs have emerged, officials say a bigger transformation is on its way. A Special Economic Zone under development with Singapore, which would be nearly twice the size of China’s Shenzhen, is expected to create 100,000 new jobs.

“We have an advantage in the sense of 50 years,” said Wong of the Malaysia Semiconductor Industry Association. “However we cannot be complacent.”

Source: The Star/Bloomberg

US-China tech war fuels Asia boomtowns built on AI, chips

Industry leaders, policymakers, innovators and consumers must work together to establish Malaysia as a regional hub for electric vehicle (EV) production and innovation, says Datuk Seri Fadillah Yusof.

The Deputy Prime Minister highlighted the importance of collaboration among all stakeholders to realise Malaysia’s potential as a regional EV hub.

“We are committed to building a sustainable future for the generations to come.

“By working together, we can position Malaysia as a leader in the global automotive landscape while driving economic growth and environmental sustainability,” he said in his speech at the opening of the Kuala Lumpur International Mobility Show (KLIMS) 2024 on Wednesday.

Also present was Transport Minister Anthony Loke.

Describing KLIMS 2024 as a significant platform to advance this vision, he said that bringing together stakeholders from across the globe will foster collaboration and lead to impactful solutions.

He also emphasised the substantial opportunities the mobility sector provides for local manufacturers and small and medium enterprises (SMEs).

“Malaysia has the potential to become a global supply chain hub by attracting high-quality investments and enhancing local capabilities.

“Our focus is on integrating local manufacturers and SMEs into global supply chains to drive economic growth and competitiveness,” he added.

He said transportation remains one of the largest contributors to greenhouse gas emissions, making the sector critical to Malaysia’s energy transition plan.

“Consumer adoption of EVs and hybrid vehicles will bring us closer to achieving our sustainability goals. Initiatives like KLIMS spark interest, collaboration and action,” he said.

Fadillah, who is also the Energy Transition and Water Transformation Minister, said Malaysia’s National Investment Aspirations aim to position the country as a global supply chain hub.

“This strategic initiative will not only strengthen our economy but also prepare Malaysia for a sustainable energy future as we take on the Asean chairmanship in 2025,” he said.

He also emphasised the importance of advancing technology supported by Budget 2025, which aligns with Malaysia’s goal of achieving net zero emissions by 2050.

“By integrating local industries into global supply chains and fostering innovation, we can achieve a greener, more prosperous future,” he said.

KLIMS 2024 chairman and Malaysian Automotive Association (MAA) president Mohd Samsor Mohd Zain said the event serves as a vital platform to connect local manufacturers with global industry leaders. This interaction, he said, facilitates valuable information exchange and fosters business collaborations, which are essential for advancing Malaysia’s automotive ambitions.

“Malaysia’s leadership in South-East Asia’s automotive industry is steadily gaining momentum, thanks to significant strides in technology, infrastructure development and government policy support for electrification,” Mohd Samsor said.

He added that the automotive sector remains a key driver of Malaysia’s economy, contributing 4% to the national gross domestic product annually and employing over 700,000 people.

“Total industry volume has increased from 200,000 units in 1994 to a record 799,731 units in 2023. This year, we are poised to surpass 800,000 units,” he said.

Despite its achievements, Mohd Samsor acknowledged the significant challenges ahead as the industry undergoes rapid transformation.

“MAA members will have to navigate stringent environmental regulations, electrification and digitalisation.

“We will work closely with the government to ensure a balance that sustains both the economy and the industry,” he said.

He also highlighted Malaysia’s exploration of transformative trends such as EVs, eco-friendly solutions, autonomous driving, smart infrastructure and sustainable innovations that are shaping the future of mobility.

“These advancements underscore the importance of government support and collaboration within the industry to ensure Malaysia remains competitive,” he added.

Organised by MAA and managed by Qube Integrated Malaysia Sdn Bhd, KLIMS 2024 provides a platform for innovation, business partnerships and technological advancement in the mobility sector.

Held from Dec 5 to 11 at the Malaysia International Trade and Exhibition Centre (Mitec), the event billed as Malaysia’s largest automotive industry showcase takes on the theme “Beyond Mobility”.

KLIMS 2024 features 70 exhibitors, nine new car launches, eight concept car displays, along with innovations from two- and three-wheelers, last-mile mobility solutions, and advanced autonomous driving technologies.

Source: The Star

Fadillah: Let’s make Malaysia the regional hub for EVs

The value added gross domestic product (GDP) for the manufacturing sector increased to RM97.4 billion in the third quarter of 2024 compared to the same period in 2023, said the Ministry of Investment, Trade and Industry (Miti).

The ministry said the amount showed an increase of 5.5% or RM5.1 billion from the RM92.3 billion recorded last year.

“Since the New Industrial Master Plan 2030 (NIMP 2030) was launched over a year ago, Malaysia has achieved impressive success in the manufacturing sector.

“The number of jobs also increased by 1.4% or 40,000 in the third quarter of 2024 compared to the same period last year,” it said in a written reply on the Dewan Negara website on Thursday to a question by Senator Dr A Lingeshwaran on the achievements of the NIMP 2030 so far.

Miti said the median salary also increased by 5.6% or RM145 to RM2,745 in the first half of 2024 compared with the same period in 2023, which was RM2,600.

In addition, Miti said several projects and flagship initiatives under NIMP 2030 have also started and are showing progress.

Among them is the launch of the National Semiconductor Strategy (NSS) in May 2024, which has successfully attracted investments of RM34 billion involving 22 semiconductor-related projects.

Also starting and showing progress are chemical and petrochemical based products which recorded an investment of RM3.1 billion between January 2024 and August 2024, compared with RM1.7 billion in the same period in 2023, making it the country’s fourth largest investment subsector.

Source: Bernama

Value added GDP of manufacturing sector increases 5.5% to RM97.4 bil in third quarter of 2024 — MITI

Pahang aspires to become the assembly and manufacturing hub for electric vehicles (EVs) in the East Coast, said State Investment, Industry, Science, Technology and Innovation Committee chairman Datuk Mohamad Nizar Najib.

He said the latest statistics from the Department of Statistics Malaysia showed a dramatic increase in EV sales and in the first half of 2024, as many as 10,663 electric cars were sold, double the 4,409 EVs sold over the same period in 2023.

“The surge in EV usage marks a clear shift in the automotive market. In fact, states on the West Coast such as Selangor, Negeri Sembilan and Melaka have become the choice of electric vehicle manufacturers to build assembly and manufacturing plants due to logistics factors.

“We also want to see Pahang become a hub for the assembly and manufacturing of electric vehicles in the East Coast. If logistics is a major criterion, then we will strengthen the promotion of the logistics network and the East Coast Rail Link (ECRL) which connects Port Klang and Kuantan Port,“ he said.

He said this when winding up debate on the 2025 Pahang Budget at the State Legislative Assembly at here today.

Additionally, Mohamad Nizar informed that this year saw a collaboration between Perbadanan Setiausaha Kerajaan Pahang to develop 50 EV charging stations throughout Pahang with an estimated investment of RM250 million.

He said the Bentong district was chosen as the pilot district with the construction of the first charging station out of 12 stations to be built in the district.

Meanwhile, Pahang Consumer Affairs and Human Resources Committee chairman Sim Chon Siang said the amount of local rice produced in Pahang is 14,000 metric tonnes per year and is insufficient for the state’s population.

“Sufficient rice for the people of Pahang is 130,000 metric tonnes, this is not including foreign workers working here,“ he said.

Elaborating further, he said to meet the difference in the amount of rice produced, the government has taken the approach of importing 45 percent of the required rice compared to 55 percent of the existing amount marketed by producers in the country.

Meanwhile, he informed that the number of MADANI Rahmah Sales Programmes in Pahang so far is 433 with 156 locations implemented on-premises, off-premises (33) and mobile (244).

Source: Bernama

Pahang aims to be East Coast’s EV assembly, manufacturing hub