The electrical and electronics (E&E) segment has recorded the highest realised investment performance of RM4.8 billion during the period from January to June 2024, according to the Ministry of Investment, Trade and Industry (Miti).

The ministry said the investment performance was equivalent to 69.5% of the investment value realised for the manufacturing sector which recorded a total of RM9 billion manufacturing projects realised in the same period.

Miti also said that for future-driven industries involving green technology, from 2021 until June 2024, a total of RM42 billion projects involving renewable energy was approved.

It said of that amount, RM28.2 billion projects (equivalent to 67.1%) have been realised.

“From the perspective of digital investments involving digital infrastructure, based on current records, from 2021 to 2023, a total of RM68.9 billion investment has been implemented,” it said in a written reply published on the Dewan Negara website to Senator Datuk Lim Pay Hen’s question regarding the percentage of investments involving future-driven industries that have been realised so far.

In the meantime, Miti and the Malaysian Investment Development Authority (Mida) will continue to be proactive in introducing policy reforms to further increase investor confidence and strengthen Malaysia’s position as a preferred investment destination.

“The implementation of the various initiatives will help the country achieve the goal of highly competitive investments which in turn can benefit the people and the country,” it added.

Source: Bernama

E&E segment records realised investments of RM4.8 bil as of June 2024

Perusahaan Otomobil Kedua Sdn Bhd (Perodua) aims to produce 500 units per month of its electric vehicle (EV) called eMO-II starting next year.

Its president and CEO Datuk Seri Zainal Abidin Ahmad told the media the EV model is expected to be priced between RM50,000 and RM90,000 after revealing the eMO-II EV prototype at the Kuala Lumpur International Mobility Show 2024 (KLIMS 2024) yesterday.

“We will make further announcements regarding the charging system as we plan to have an EV charging station every 40km to 50km, whether it is a fixed permanent charger or a mobile charger, which is still under study. We are also looking at the resell value, as I mentioned before, we would like to maintain its second-hand value,” he said.

Zainal Abidin said Perodua aims to produce the cheapest EV in Malaysia, given the new model’s low but competitive price range. “Based on our study, in the first quarter of 2025, the other EV companies that are selling EVs now would not be able to sell at lower prices (than us), since it might compromise other things. So for us, we still hope we can sell the cheapest EV around (in Malaysia),” he added.

Before this, the Ministry of Investment, Trade and Industry said it would help Perodua produce Malaysia’s first EV priced under RM100,000. Its minister Tengku Datuk Seri Zafrul Abdul Aziz said the ministry was optimistic that Perodua would reach its target of producing the EV by the end of 2025.

The Perodua EV project was fully developed in-house by the carmaker’s research and development team in 2023.

Zainal Abidin said the eMO-II prototype has been improved from its predecessor in terms of styling and features and is more defined as the company charts its EV future. “Please keep in mind that this is still a prototype model and there are plenty of other features and improvements that we will add to our finished product, which we will introduce in the near future,” he said.

Source: Bernama

Perodua aims to produce cheapest EV in Malaysia, build 500 units of eMO-II each month

DSR Taiko Bhd, a trailblazer in Malaysia’s durian industry, is strategically positioning itself to expand its global footprint, focusing on value-added products to meet growing international demand.

The company recently achieved a significant milestone by obtaining the Malaysia Standard (MS) certification for its Musang King Durian and downstream products.

The innovation lies in the Musang King Integrated Tracking System (MKITS), a traceability system verified by Musang King Standard requirements to ensure consumer safety.

This certification underscores DSR Taiko’s commitment to delivering what is being termed Origin Matters, which offers high-quality, authentic durian products to consumers worldwide.

“As the first company to secure the MS certification for durian, we are proud to assure our customers that they can now enjoy genuine Musang King durian products with verified origins,” said its chief executive officer Datuk Ng Lian Poh.

He highlighted that many competitors claim to offer authentic Musang King products, however, their offerings may include other durian varieties, potentially misleading consumers.

“The journey ‘Durian Sudah Runtuh’ (DSR) to achieve this certification, granted by SIRIM QAS International, required significant time and investment. We wanted to ensure that buyers are confident in the originality and quality of our Musang King products,” he told Bernama.

DSR Taiko is a corporate sponsor and will participate in the upcoming Malaysia-China Summit (MCS 2024), scheduled from Dec 17-19 at the Malaysia International Trade and Exhibition Centre (MITEC).

Legacy of Excellence in Durian Agribusiness

Established in 2017, DSR Taiko is an integrated durian producer specialising in the entire agribusiness value chain. From plantation and cultivation to retail and production, the company has cemented its reputation as a leader in the industry.

“Our plantation spans approximately 46 hectares in Pahang’s highlands, specifically Raub and Bentong. Over 70 per cent of our durian trees are over 25 years old, producing the exceptional quality and flavour that Musang King is renowned for,” Ng shared.

To sustain growth, he said the group is actively identifying matured durian plantations in Raub and Bentong to expand its land bank. On the production front, the company has developed a diverse
range of durian-based products, including the highly sought-after D.MasKing Musang King Gelato.

Ng noted that the gelato, which recently earned a Gold Medal for F&B Innovation at the CAEXPO 2024 in Nanning, China, for its new, unique, and excellent criteria, is a testament to its potential in the Chinese market, where demand for premium durian products continues to grow.

Driving Global Expansion

He said China remains DSR Taiko’s largest export market, contributing significantly to the company’s RM18 million revenue last year.

Ng is also optimistic about future growth, citing strong demand and effective marketing campaigns targeting Chinese consumers. “Our strategy is to tap into China’s appetite for Musang King, known
for its unique flavour profile and premium appeal. With certifications and promotions, we are confident of driving substantial revenue growth,” he said.

Beyond China, DSR Taiko has penetrated markets in Australia, the United States, and Europe, introducing innovative products like Musang King pizza to cater to Western tastes.

Upcoming Showcase at Malaysia-China Summit 2024

Looking ahead, Ng said DSR Taiko is gearing up for the MCS 2024, describing it as “an unparalleled platform and a carefully curated event that attracts top-tier international trade visitors”.

MCS 2024 is organised by Qube Integrated Malaysia Sdn Bhd in association with the Malaysia External Trade Development Corporation (MATRADE), with the strong support of the Malaysia Convention and Exhibition Bureau, an agency under the Ministry of Tourism, Arts and Culture.

Commemorating 50 years of diplomatic and trade relations between Malaysia and China, MCS 2024 will provide DSR Taiko with an opportunity to showcase the potential of Malaysia’s “King of Fruits” to a global audience.

By leveraging its achievements, certifications, and participation in flagship events like MCS 2024, Ng said DSR Taiko continues positioning itself as a leader in driving Malaysia’s durian industry to greater heights.

Source: Bernama

DSR Taiko to elevate Malaysia’s durian industry with certification and quality

Malaysia has the potential to become a regional hub for electric vehicle (EV) production and innovation, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

He said the growth of the mobility industry presents immense opportunities for local manufacturers and small and medium enterprises to integrate into the global supply chain.

Fadillah, who is also the Minister of Energy Transition and Water Transformation, added that Malaysia’s National Investment Aspirations aim to position the country as a global supply chain hub by attracting high-quality investments and enhancing the capabilities of local industries.

“This strategic initiative focuses on integrating local manufacturers and SMEs into the global supply chains, thereby boosting economic growth and competitiveness,” he said at opening ceremony of the Kuala Lumpur International Mobility Show 2024 (KLIMS 2024) today.

Also present was Transport Minister Anthony Loke.

KLIMS 2024, themed “Beyond Mobility”, is organised by the Malaysian Automotive Association (MAA), and managed by Qube Integrated Malaysia Sdn Bhd.

Fadillah emphasised that KLIMS 2024 is an important event to accelerate the vision, bringing together stakeholders from around the world, and collaborating as well as creating solutions that benefit everyone.

In addition, he said, KLIMS 2024 serves as an excellent platform to witness firsthand the advancements in automotive technology, bolstered by Malaysia’s regional collaboration through the Asean Power Grid initiative, which aligns with Malaysia’s leadership as Asean chair in 2025 to secure a sustainable energy future.

Fadillah called on stakeholders, particularly the mobility industry leaders, policymakers, innovators and consumers, to work hand-in-hand in driving the mission.

“Malaysia is committed to building a sustainable future for the generations to come. Transportation, being one of the largest contributors to greenhouse gas emissions, is a critical area in our national energy transition plan.

“Consumer adoption of EVs and hybrid vehicles will drive the nation closer to its sustainability goals, with transformative initiatives like KLIMS playing a pivotal role in sparking widespread interest, collaboration, and action,” he said.

Meanwhile, KLIMS 2024 chairman Mohd Samsor Mohd Zain said the event brings together global and local players to showcase their products and ideas.

He said it showcases a diverse range of cutting-edge automotive technology and solutions, including two- and three-wheelers, last-mile mobility solutions and future-focused innovations that are paving the way for smarter and more sustainable transportation.

“The exhibition also provides a platform for local manufacturers and suppliers to connect with global industry leaders, facilitating information sharing and business collaborations. Such interactions are essential for Malaysia’s ambition to become a regional hub for automotive manufacturing and innovation,” Mohd Samsor, who is also MAA president, said in his speech.

He added that Malaysia’s leadership in Southeast Asia’s automotive industry is steadily gaining momentum, thanks to the significant strides in technology, infrastructure development and government policy support.

Mohd Samsor noted that the automotive industry is one of the key engines of Malaysia’s economic growth as its contribution is immense with significant linkages in manufacturing to the service sector.

He said the industry contributes 4% to Malaysia’s gross domestic product annually, and it is estimated that over 700,000 are employed in the automotive industry.

“Over the years, the automotive industry has expanded tremendously in tandem with the country’s economic growth and the increasing standard of living.

“The total industry volume for the automotive industry has grown in leaps and bounds over the last three decades, from 200,000 units in 1994 to an all-time high of 799,731 units in 2023,” Mohd Samsor said, adding that it is expecting to achieve a record of above 800,000 units this year.

“Much of the successes and achievements of our local automotive industry would not have been possible without the strong support, assistance and encouragement from the government,” he concluded. 

Source: Bernama

Malaysia has potential to become regional hub for EV production, innovation: Fadillah

Sarawak’s Acacia Power Sdn Bhd (Acacia Power) today signed a Memorandum of Understanding (MoU) with NextChem SpA, a sustainable technology solutions provider under Italy’s Maire Group, to develop a large capacity wooden chips power plant in Sarawak.

Signing the MoU in the presence of Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg were Acacia Power director Tan Sri Datuk Amar Abdul Aziz Husain and NextChem SpA Corporate and Business Strategy senior vice president Giovanni Sale.

Abang Johari in his speech said the collaboration between the two companies will be able to contribute to global efforts in combating climate change.

“We feel that there are solutions to renewable energy, one of which is our rich weather where we can plant acacia.

“We can have renewable plantation of acacia within one block which is divided into sub-blocks and upon its maturity within three to four years, this then becomes feedstock for biomass,” he said at the ceremony which was held at Hikmah Exchange Event Centre here.

He expressed confidence that with NextChem SpA‘s years of experience, they will be able to innovate through new technology which will result in high productivity.

“I am sure that by collaborating with your experience and our experience in planting acacia, we can meet the challenge of addressing the global climate change,” he said.

Abang Johari also mentioned that although Sarawak may be a small, emerging economy from Borneo, the state strives to do its part to combat climate change through the various resources it has.

“We provide renewable energy through hydro, and we migrated to solar where the cost of solar has reduced over the 10 years by 80 per cent.

“We are also exploring hydrogen economy and people were initially sceptical because of its high cost. But perhaps now is the right time where there will be mass production of hydrogen and advancement of technology on electrolysers.

“When that happens, then there is a possibility as predicted by the International Energy Agency (IEA) that by 2030, the cost will be reduced by 50 per cent and I think we may be able to achieve that,” he said.

Under the MoU, NextChem SpA, renowned for its expertise in low-carbon technologies and energy transition solutions, will lead the technical and feasibility studies for the project.

The collaboration will include pre-feasibility and feasibility studies covering feedstock availability, site location, technology, market dynamics, cost estimates, and financial modelling; and advanced engineering design, where pending approvals both parties will proceed with Front-End Engineering Design (FEED) to prepare for the final investment decision.

Through this collaboration, Acacia Power and NextChem SpA aim to deliver an efficient, innovative solution that aligns with Sarawak’s ambitions to integrate renewable energy as a cornerstone of its socio-economic growth.

Also present were Italian Ambassador to Malaysia Massimo Rustico, Deputy State Secretary (Economic Planning and Development) Datu Dr Muhammad Abdullah Zaidel and Acacia Power director Dato Muhammad Ibrahim.

Source: Borneo Post

Sarawak’s Acacia Power partners with Italy firm to develop wooden chips power plant

Brazil and Malaysia’s collaboration in the semiconductor industry will involve the development of joint initiatives in integrated circuit (IC) design next year, according to sources from the Brazilian Embassy in Malaysia.

The sources are optimistic about the potential collaboration and growth following a recent Malaysia-Brazil semiconductor industry meeting in Rio de Janeiro in the presence of Prime Minister Datuk Seri Anwar Ibrahim as part of its recent official visit to Brazil.

Currently, Malaysia is the sixth-largest semiconductor exporter globally, with exports exceeding US$85 billion (US$1 = RM4.44), while Brazil’s semiconductor export value stands at only US$1.2 billion as of 2022.

However, the largest country in South America has a competitive edge in IC design.

“IC design is definitely an area we will focus on, and there have already been initial contacts between stakeholders from both countries to develop joint initiatives,” one of the sources told Bernama when contacted.

During Anwar’s official visit, a memorandum of understanding (MoU) was signed between Mimos Bhd and Brazil’s Eldorado Institute and a second between the Malaysia Semiconductor Industry Association, the Brazilian Association of the Electrical and Electronic Industry, and the Brazilian Semiconductor Industry Association.

The sources indicated that concrete initiatives might include joint ventures between Brazilian and Malaysian companies, which would present mutual investment opportunities; joint research and development projects between institutions like MIMOS and Eldorado; and initiatives aimed at talent development in both countries.

While no specific details have been finalised, the sources noted that significant discussions are underway to bring the signed agreements to life.

The discussions around Brazil-Malaysia cooperation began in 2023, following the Brazil-ASEAN and Semiconductors: Unveiling Global South Synergies event, organised by the embassy in October 2023. This event marked the beginning of dialogues between stakeholders from both nations.

Malaysian and Brazilian organisations had been in active contact over the past year, and the agreements signed during Anwar’s visit to Brazil marked a key milestone in strengthening ties between the two countries.

“As the collaboration progresses, trust-building remains crucial to identifying specific areas of cooperation,” the sources added.

Malaysia’s semiconductor ecosystem includes global giants such as Intel, Infineon, Micron, and Texas Instruments, as well as homegrown champions like Carsem and Inari.

Anwar’s working visit consisted of two main components: first, a bilateral meeting with the President of Brazil, Luiz Inacio Lula Da Silva, on Nov 17, 2024, and second, participation in the G20 Summit under the presidency of Brazil from Nov 18-19, 2024.

The prime minister’s inaugural visit to Brazil generated export potential worth RM6.8 billion over the next three to five years.

Anwar, who is also the finance minister, attributed this success to discussions with 58 industry leaders representing 28 leading companies and business associations in Brazil.

Source: Bernama

Brazil-Malaysia to set up joint development on IC design in 2025

The Ministry of Investment, Trade and Industry (Miti) is ready to be involved in an engagement session to examine the amendment of the Mineral Development Act 1994 (Act 525), particularly in facilitating the development of the rare earth elements (REE) industry from the upstream to the midstream and downstream levels.

Deputy Minister Liew Chin Tong said the amendment by the Ministry of Natural Resources and Environmental Sustainability (NRES) is important to ensure that legislation related to minerals is up-to-date and relevant to the current situation of the minerals industry.

“Miti is ready to look at the obligation aspects of international trade agreements to ensure that the development of the downstream REE industry is given priority based on national interest. An effective amendment to the Act will provide clarity in policy because investors need certainty and clarity in the legal framework to make investment decisions,” he told the Dewan Rakyat on Thursday.

Liew said that the amendment of the Act that deals with environmental issues, resource management and governance will signal to investors that Malaysia is committed to the sustainable and responsible development of the REE industry.

To ensure the comprehensive development of the REE industry value chain, Liew said the government will focus on developing a more holistic and integrated industrial ecosystem. For that purpose, Liew said a special task force had been established this month to discuss the issues and set the direction for developing the REE industry in Malaysia.

“This special task force is responsible for looking at aspects related to investment, technology, and incentives including research, development, commercialisation and innovation,” he added.

Source: Bernama

MITI to scrutinise legal amendments in bid to empower rare earths industry

The government will ensure the development of the rare earth element (REE) industry progresses, simultaneously encompassing the upstream and downstream sectors to meet industrial needs, said Economy Minister Rafizi Ramli.

He said the government’s strategy to ensure the simultaneous development of the industry is aimed at enabling industry players, including international companies, to prepare and seize opportunities available in Malaysia.

Rafizi said the government has outlined plans to establish two processing plants in the next three years.

“I’m hoping that our colleagues, especially investors from around the world, understand that this is Malaysia’s plan, because a lot of new investments, especially those built around processing plants or more downstream industries like battery factories and manufacturers, take at least two or three years to come to fruition,” he said.

“For example, if Japanese companies understand this national plan, the federal government will work to implement it at the government-to-government level. I’m hoping this information will be valuable for investment planning in the next two to three years,” Rafizi told reporters here today.

Earlier, he delivered his speech at a conference themed “Accelerating Net-zero: Opportunities for Hard-to-abate Industries in ECER” organised by the East Coast Economic Region Development Council (ECERDC).

Rafizi said Malaysia currently lacks the technological expertise to process REE raw materials and needs to attract investments from advanced nations, such as Japan, to develop this capability.

He emphasised that the government’s policy of banning the export of unprocessed REE is designed to ensure the country gains higher revenue from these raw materials.

“But as we pointed out, our biggest challenge is the processing technology, which is predominantly controlled by China,” he said.

He also acknowledged the challenges posed by state governments, which might push for a resumption of REE exports if processing plants are not established quickly as they depend on royalties from the industry.

“However, the federal government is concerned that allowing exports could quickly lead to the exhaustion of our raw material reserves,” Rafizi said.

Source: Bernama

Malaysia seeks advanced technology, investments for rare earth processing

The Investment, Trade, and Industry Ministry is working with the Selangor and Johor state governments to ensure that every district in these two states is equipped with direct current (DC) electric vehicle (EV) charging points.

Deputy Minister Liew Chin Tong said the ministry is focused on this initiative to guarantee that each district has multiple DC charging stations.

“We hope that after the pilot projects in Johor and Selangor, we will be able to expand it to all states, ensuring that every district across the country has accessible EV charging points,” he said in response to Datuk Dr Ku Abd Rahman Ku Ismail (PN-Kubang Pasu).

Ku Abd Rahman had inquired if the ministry plans to increase the number of charging stations, particularly in rural areas.

Liew said the move is part of Malaysia’s broader strategy to enhance EV infrastructure and accelerate the adoption of electric vehicles nationwide.

He said the ministry is still maintaining its target of 10,000 EV charging stations operating in the country by 2025.

“But, what we want to emphasise is the DC charging points, which we have increased the target from 1,000 to 1,500 units by next year. At present, we have 500 DC charging points.”

Meanwhile, as of Sept 30, a total of 33,319 EVs have been sold in Malaysia, accounting for 5.11 per cent of the country’s total annual vehicle sales.

Liew said this figure includes hybrid, plug-in hybrid, battery electric and fuel cell electric vehicles.

“As of Oct 31, 3,354 charging stations have been installed nationwide, ensuring that the growing number of EVs can be conveniently charged,” he said in response to the initial question from Khoo Poay Tiong (PH-Kota Melaka).

Khoo inquired about the government’s efforts to encourage local industry players to boost EV production and meet local demand, while also working towards the Sustainable Development Goals for 2030.

Source: NST

MITI working with Selangor, Johor governments to expand EV charging infrastructure

The government is optimistic about the investment target set in the National Semiconductor Strategy (NSS), considering the encouraging performance of current investments in Malaysia’s semiconductor sector.

The Investment, Trade, and Industry Ministry (Miti) reported that throughout 2023, this sector contributed RM69.4 billion (82 per cent) of the total RM84.5 billion in approved investments for electrical and electronics projects.

For the first half of 2024, the government successfully attracted investments worth RM34.6 billion, of which RM0.98 billion was domestic investments, while RM33.63 billion was foreign investments.

“In addition, three local integrated circuit design companies were established during this period.

“As of the third quarter of 2024, NSS has created job opportunities for 4,673 individuals, with 97 per cent of the recruitment constituting technical workers, thus contributing to the country’s talent pool,” it said in a written reply published on the Parliament website today.

Miti was responding to Kubang Pasu MP Datuk Ku Abd Rahman Ku Ismail’s query on the progress made by implementing the New Industrial Master Plan 2030 and NSS.

Source: Bernama

Govt optimistic National Semiconductor Strategy investment target can be achieved

Malaysia aims to produce two million tonnes of hydrogen annually by 2030., scaling up to 16 million tonnes by 2050, under the Emission Driven Scenario (EDS), according to Science, Technology and Innovation Minister Chang Lih Kang.

He said the successful implementation of the Hydrogen Economy and Technology Roadmap (HETR) will enable Malaysia to tap into this lucrative market, with potential revenue estimated to be at least RM905 billion by 2050 under the EDS.

“The global green hydrogen market is projected to reach a staggering US$189.19 billion (RM840 billion) by 2050, with Asia-Pacific accounting for 43% of this market, followed by Asean with 13%, and Malaysia at 2%. As we transition to cleaner energy, hydrogen will play a key role alongside other renewables in Malaysia,” Chang stated in his keynote speech at FMM Energy Efficiency & Conservation Conference 2024 organised by the Federation of Malaysian Manufacturers today.

He said embracing hydrogen is not just about tackling climate change but it is also about reducing the country’s dependence on fossil fuels and protecting publics’ health. “The shift will help decarbonise critical sectors like power generation and transportation, reducing greenhouse gas emissions by up to 10%.”

Through the HETR, Malaysia plans to phase out fossil-fuel-based grey hydrogen in the short term and transition towards green hydrogen in the long term.

“To bridge the gap, blue hydrogen will play a crucial role by leveraging existing fossil fuel infrastructure while incorporating carbon capture to reduce emissions,” Chang said.

From 2030 to 2040, he added, efforts will focus on making green hydrogen more cost-competitive by improving technology and efficiency to pave for a sustainable future. “Blue hydrogen will be critical for industries like metal, steel, oil and gas refining, and ammonia production, where emissions are harder to reduce.”

However, Chang said, the main challenge is cost where hydrogen is currently twice the price of unsubsidised RON 97 fuel and much higher than subsidised RON 95.

“While the HETR projects that hydrogen will become cheaper than diesel by 2050 as subsidies shift, we believe it’s time to start redirecting energy subsidies towards renewables like hydrogen now. This gradual shift, alongside financial incentives for cleaner fuels, can help accelerate the transition towards a sustainable energy future,” he said.

Chang pointed to key strategies to accelerate the adoption of green hydrogen, including offering financial incentives such as Green Investment Tax Allowance and Green Income Tax Exemption for hydrogen-related projects, alongside e-dana support for innovation and commercialisation.

“Plans are also under way to make fuel cell electric vehicles more affordable through subsidies and tax exemptions on sales, imports, and road use.”

Chang said financing mechanisms such as low-interest loans, venture capital funds, and public-private partnerships are being explored to support hydrogen infrastructure and projects. Capacity building is another priority with training programmes designed to equip industry professionals, researchers and policymakers with the necessary skills to drive the hydrogen economy forward, he added.

“Demonstration projects in transportation, power generation, and industrial processes will also receive support to showcase the potential of hydrogen technologies across various sectors,” said Chang

Source: The Sun

Malaysia aims to produce 2 million tonnes of hydrogen annually by 2030

BMW AG is still focused on driving sustainable mobility across Southeast Asia and making Malaysia a regional leader in automotive transformation.

The German automaker delivered over 8,700 vehicles across BMW and Mini brands in Malaysia as of the third quarter of 2024.

This included 1,600 electrice vehicles (EVs), which accounted for 19 per cent of the group’s total deliveries. This makes BMW the leading premium EV brand in the country.

Based on the latest Road Transport Department data as at October this year, the BMW i5 is currently the group’s most popular model with 410 units registered this year so far. This was followed by the BMW iX2 with 352 units, Mini Countryman with 253 units, BMW i4 with 218 units and BMW i7 with 204 units.

BMW Group Malaysia managing director Benjamin Nagel said the country’s role as a strategic hub for the world’s leading premium brand in Southeast Asia has been the main catalyst for its growth in the region.

He said it was proven through the group’s assembly facility in collaboration with Sime Darby Bhd at Kulim Hi-Tech Park, Kedah and the regional component distribution centre in Senai, Johor.

“Our local assembly facility has shipped more than 10,000 vehicles to the Philippines and Thailand, making us the largest exporter of automotive vehicles in Malaysia,” he said during the group’s brand strategy media roundtable here on Wednesday.

“Next week, we will officially open the expanded facility in Senai that is currently supports 23 countries in the Asia Pacific region. With the additional 20,000 square metres, it will increase the space from 45,000 to 65,000 square metres,” Nagel added.

BMW also wants to assemble its EVs in Malaysia but says the plan will require long-term planning, as well as policy certainty from the government.

BMW Group senior vice president sales region in Asia Pacific, Eastern Europe, Middle East and Africa Jean-Philippe Parain said it is engaging with the government and preparing for the locally-assembled (CKD) of the EVs, in line with the country’s recent changes to tax exemptions post-2026 to ensure sustainable adoption.

Parain said reducing subsidies can impact EV adoption, as seen in other markets. Hence, it is essential to approach the transition carefully.

“Based on my experience with the company, which has a presence across many countries, once the government reduces the subsidy, the choice of electromobility has been reduced.

“For example, in South Korea, as soon as the subsidy was reduced, the number of people choosing EVs also declined, and the situation can also be seen in Europe,” he added.

The government will reportedly phase out tax breaks on fully-built imported (CBU) EVs by end of 2025 and CKD models by end of 2027.

There are currently more than six EV models from BMW in fully imported forms here, with the cheapest is the i3s, which is priced at about RM268,824-RM278,800, and the most expensive is the i7 at about RM742,950.

Source: NST

BMW on an EV high

Hyundai Motor Co announced on Tuesday its plan to invest nearly US$480 million in Malaysia over the next five years from 2025 to enhance its production capacity in the Southeast Asian nation, Yonhap news agency reported.

The South Korean automaker stated it would collaborate with its local partner, Inokom Corp, to upgrade its complete knockdown (CKD) unit assembly plant, which currently produces the older-generation Santa Fe SUV model.

The upgraded CKD plant is set to commence production of Hyundai’s multipurpose vehicle and the Staria minivan by mid-2025, with plans to expand the range to include mid-to-large SUVs.

The company noted that the production scale will initially begin at 20,000 units per annum, with plans for gradual expansion.

Vehicles manufactured at the facility are expected to be marketed in Malaysia and other Southeast Asian countries.

Hyundai also reaffirmed its commitment to supporting the development of Malaysia’s electric vehicle (EV) ecosystem, including the expansion of EV sales, the construction of charging infrastructure, and the establishment of battery production facilities.

“We made this investment decision considering the growing importance of Southeast Asia and the Malaysian market,“ Hyundai said.

“We aim to contribute to the economic and social development of the region through job creation and local talent development.”

Source: Bernama

Hyundai Motor to invest US$479 million in Malaysia to increase local production capacity

Hyundai Motor will start a strategic partnership with Inokom for the automotive assembly of several new models in Malaysia next year through an investment worth RM2.16 billion.

This investment includes efforts to upgrade Inokom’s existing assembly capacity to meet Hyundai’s automotive needs.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said it was the company’s biggest investment in Malaysia for a period of six years (2025-2030) which will offer hundreds of high-paying and high-tech job opportunities to locals.

The investment involves the assembly and production of six car models including hybrid electric vehicle (HEV) models as well as an EV battery pack assembly factory in Kulim, Kedah, Zafrul told reporters in conjunction with Prime Minister Datuk Seri Anwar Ibrahim’s official visit to South Korea.

The prime minister also held a closed door meeting with several South Korean conglomerates including Hyundai Motor, Lotte, OCI Holdings, Samsung, SK Nexilis and Posco.

The prime minister and delegation arrived in Seoul on Sunday in conjunction with a three-day official visit to further strengthen the existing bilateral relations between Malaysia and South Korea.

Malaysia and South Korea will celebrate the 65th anniversary of diplomatic relations between the two countries next year.

South Korea is Malaysia’s seventh largest trading partner while Malaysia is South Korea’s 11th largest trading partner.

Source: Bernama

Hyundai to invest RM2.16 bil in Malaysia through strategic partnership with Inokom

Malaysia is positioning itself to become a global hub for innovation and manufacturing

Malaysia will continue to strengthen its ties with international markets in the semiconductor industry following the return of Donald Trump as the president of the United States.

This comes with the anticipation of protectionist measures following Trump’s re-election.

Deputy Investment, Trade and Industry Minister Liew Chin Tong said Prime Minister Datuk seri anwar ibrahim and the malaysian delegation have worked hard to build ties between the Malaysian semiconductor industry and the Brazilian semiconductor industry.

Two memoranda of understanding (MOU) were inked between the two countries following Anwar’s recent working visit to the Latin American country, allowing Malaysia to position itself as a global hub for semiconductor innovation and manufacturing.

“The Malaysia Semiconductor Industry Association (MSIA) is also in talks with its counterpart in the Netherlands, while the government is working with Asean member states on the semiconductor industry.

“We are also talking to Saudi Arabia in a very serious manner. This is so that we can avoid a strict bifurcation of the global supply chain,” he told the media at the MSIA National Electrical and Electronics (E&E) Forum 2024 here, yesterday.

Liew said as the world’s sixth largest semiconductor exporter, Malaysia holds a 7% share of the global market and contributed to 23% of US semiconductor trade in 2022.

“The world is still very much exporting to the United States, and we hope that we can work with the United States in a very close

“We have received strong E&E investments this year and our E&E exports for the first 10 months, from January to October 2024 is Rm491bil, which is up 1.5% compared to last year. I am still hoping that it will breach Rm600bil by the end of the year.” Liew Chin Tong

manner,” he added.

According to him, there is a “huge middle power” where Malaysia can play a role within the global semiconductor supply chain. And in the coming 10 to 15 years, Malaysia has to be clear in its strategy and goal.

“We need to work with partners to build that strong middle power, so that we can be a centre in which global business in the semiconductor industry can be conducted from”.

He added local players should continue moving up the value chain by creating its own technology – especially within the artificial intelligence (Ai)-realm.

This is to be coupled with horizontal expansion and innovation, which he said “so that whatever capability we have at multiple levels in the semiconductor industry can also be used to solve daily problems and therefore creating Malaysian innovation”.

He proposed adopting a flexible industrial policy framework, stressing that it does not need to be comprehensive.

Recognising Malaysia’s constraints as a trading nation with an open economy, he urged for broader strategies to leverage tools from the industrial policy “toolbox.”

He also advocated for blending public and private funds, emphasising that investments should not rely solely on grants but include collaborative financing approaches.

He gave an example of which the Malaysian government has directed government-linked investment companies to work on a gear-up programme, which channels Rm120bil into Malaysian technologies over the span of five years.

“I think this is the direction that will work and I hope this can actually become into something that is able to create Malaysian technologies. So, having the private and public coming together to find ways to fund technology is important,” he said.

Despite global challenges, he remains optimistic, noting that the semiconductor industry is a strategic industry not only for Malaysia, but for the whole world because of the increasing uses of AI technology, which requires semiconductors.

When asked about the outlook on E&E exports for 2025, MSIA president Datuk Seri Wong Siew Hai said there will be more clarity on where the industry is heading in the first quarter of financial year 2025, once policies by the United States government have been decided. He told Starbiz that the local semiconductor industry may experience single-digit growth in 2025 in line with the global economic trends.

“We have received strong E&E investments this year and our E&E exports for the first 10 months, from January to October 2024 is Rm491bil, which is up 1.5% compared to last year. I am still hoping that it will breach Rm600bil by the end of the year,” he said.

Sharing a similar view, Tradeview Capital chief investment officer Nixon Wong also anticipates a rather muted growth from the end of 2024 entering next year.

Malaysia’s E&E export is very dependent on the semiconductor recovery globally – which is anticipated to kick in somewhere around the second half of 2025.

“There is some chance of earlier recovery, with all eyes on potential restocking from the United States front as well as economic growth recovery from the China front.

“We may also need to factor in the movement of the ringgit against the US dollar as well.”

Hence, Wong is of the view that companies with more US exposure may tend to benefit more than those with exposure to China. With Trump ‘s being pro-us, capital expenditure growth is expected to come from US companies, while trade policies may cap China’s export.

“The situation is fluid and depends on how aggressive the United States trade tariff on China and also on the rest of the world, which may cap overall demand growth,” he added.

On a separate note, two MOU signings were completed between Elliance Sdn Bhd and Skyechip Sdn Bhd, as well as between Elliance, Kaitech Sdn Bhd and Estek Automation Sdn Bhd at yesterday’s event. The parties will form a strategic partnership to design and produce Malaysia’s first Edge AI system.

Source: The Star

Elevating the chip industry

The Penang government has applied for a RM60mil allocation from the Federal Government to support development and attract investors under the National Semiconductor Strategy (NSS).

However, Chief Minister Chow Kon Yeow said the state’s investment promotion agency, InvestPenang, had yet to receive a favourable reply.

“The request is modest compared to the billions of ringgit announced under the NSS to attract more investments into the sector,” he said after tabling Penang Budget 2025 during the state assembly sitting at Lebuh Light, George Town.

Chow (PH-Padang Kota) was responding to a supplementary question by Lee Khai Loon (PH-Machang Bubok), who asked about commitments or allocations given to Penang to develop the NSS.

Chow added that federal assistance for semiconductor development will also focus on infrastructure as traffic congestion remains a key constraint for investors seeking reliable mobility.

He thanked the Federal Government for approving the RM3bil Juru-Sungai Dua elevated highway project, which will help alleviate congestion.

Construction for the project is scheduled to begin next year and be completed in 2029.

“We hope Putrajaya will allocate more funds to Penang, given that the state is the biggest semiconductor contributor in the country,” he said.

The NSS was announced by Prime Minister Datuk Seri Anwar Ibrahim during Semicon South-East Asia 2024 in May.

Through it, the country aims to attract RM500bil of investments in integrated circuit (IC) design plus advanced packaging and manufacturing equipment for semiconductor chips, as well as to create at least 10 local design and advanced packaging companies with revenues ranging from RM1bil to RM4.7bil.

It also aims to make Malaysia a global hub for semiconductor research and development.

It was reported that the government had planned to allocate RM25bil to the NSS.

On another matter, Chow said Penang is set to earn an additional sum of between RM50mil and RM100mil in annual revenue by increasing land taxes for the first time in 30 years.

He was responding to a question by Lee Boon Heng (PH-Kebun Bunga) on the state’s budget deficit.

Chow said the changes are expected to take effect in January 2026 once approval is obtained from the National Land Council, adding that land-related taxes contribute about 45% of the state’s revenue.

“We have received approval to review the rates that have remained unchanged since 1994.

“The review process by a task force involving the Land and Mines Office and District and Land Office is ongoing.

“It involves 370,000 land ownership records in Penang,” he said.

Source: The Star

Seeking RM60mil for semiconductor sector

Malaysia is strengthening ties with international markets to avoid a strict bifurcation of the global semiconductor supply chain, particularly as more protectionist measures may be in store following Donald Trump’s victory in the United States (US) presidential election.

Deputy Investment, Trade and Industry Minister Liew Chin Tong affirmed that Prime Minister Datuk Seri Anwar Ibrahim and the Malaysian delegation have worked hard to build ties between the Malaysian semiconductor industry and the Brazilian semiconductor industry through Anwar’s recent working visit to the Latin American country.

“The Malaysia Semiconductor Industry Association (MSIA) is also in talks with its counterpart in the Netherlands, while the government is working with ASEAN member states on the semiconductor industry.

“We are also talking to Saudi Arabia in a very serious manner. (This is the strategy), so that we can avoid a strict bifurcation of the global supply chain,” he told reporters on the sidelines of the MSIA National Electrical and Electronics (E&E) Forum 2024 here today.

Liew also said that as the world’s sixth largest semiconductor exporter, Malaysia holds a seven per cent share of the global market and contributed to 23 per cent of US semiconductor trade in 2022.

“The world is still very much exporting to the US, and we hope that we can work with the US in a very close manner,” he said.

President-elect Trump, who is set to be inaugurated on Jan 20, is expected to prepare for a second act. His first administration saw him swiftly implementing tariffs to protect the US economy and address trade imbalances.

Asked on the possibility of a drop in semiconductor export numbers to the US due to protectionism, Liew noted that the government will continuously monitor the situation.

Meanwhile, MSIA president Datuk Seri Wong Siew Hai said the association expects the industry to achieve a single-digit growth next year, driven by global economic trends.

“We have received strong E&E investments this year. Our E&E exports for the first 10 months – from January to October 2024 – totalled RM491 billion, up 1.5 per cent compared to last year. I am still hoping that it will breach RM600 billion,” he said during his opening speech at the forum earlier.

It was reported that global semiconductor sales dipped 8.2 per cent to US$527 billion (US$1 = RM4.47) in 2023. Malaysia’s E&E sector exports decreased by 3.0 per cent last year to RM575.45 billion after a record year of 30 per cent growth in 2022 to RM593 billion.

Source: Bernama

Malaysia boosts global semiconductor ties as protectionists measures loom

Hyundai Motor will open its first plant in Malaysia next year with an investment valued at RM2.16 billion.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said it will be the South Korean automaker’s largest investment in Malaysia and provide many job opportunities.

“This is a huge investment. A total of seven car models will be produced within five years. The plant will be opened in Kulim (Kedah) next year,” he told the Malaysian media covering Prime Minister Datuk Seri Anwar Ibrahim’s official visit to South Korea here today.

Meanwhile, Anwar today held a closed-door meeting with South Korean conglomerates Hyundai Motor and OCI Holdings.

The Prime Minister and his delegation had arrived in Seoul last night for a three-day official visit to strengthen bilateral relations between Malaysia and South Korea.

Next year, the two countries will be celebrating the 65th anniversary of the establishment of diplomatic relations with each other. 

Source: Bernama

Hyundai to invest RM2.16 bil to set up a plant in Kulim

US electric vehicle (EV) maker Tesla has used components from about 45 local suppliers directly or indirectly to date, which also involves technology transfer to the suppliers, according to the Investment, Trade and Industry Ministry (MITI).

The local producers are used mainly for the provision of semiconductor components, machinery inspection and factory automation system, it explained.

“Although Tesla has never given any commitment to undertake local assembly for its vehicles, MITI, through its agency Malaysian Investment Development Authority, is always discussing the potential of Tesla using the local supply chain for its manufacturing components,” MITI said in a written reply posted on the Parliament’s website today.

The ministry was responding to a query from Datuk Awang Hashim (PN-Pendang) on the government’s stance and strategy following reports that Tesla has scrapped plans to build factories in ASEAN countries, including Malaysia.

MITI said Tesla’s presence in the Malaysian market demonstrates Tesla’s confidence in the local EV market as well as in policies promoting EVs implemented by the government.

The government, it continued, will continue striving to attract foreign and local investors in the automotive and related sectors to carry out operations in the country.

“This move will help boost the local supply chain’s capabilities and promote automotive component localisation activities,” it added.

Tesla’s entry into Malaysia in 2023 was through the BEV Global Leaders AP programme, which was established specifically to attract multinationals that are top battery electric vehicle (BEV) producers to set up business and invest in Malaysia.

Several conditions were imposed on Tesla to participate in the programme, including the commitment to instal at least 50 ultra-fast chargers with capacity exceeding 180 kilowatts, ensure at least 30 per cent of the ultra-fast chargers are open for public use for EV brands other than Tesla, and cooperate with at least 10 local firms to develop the EV charging technology here.

Source: Bernama

Tesla using components from local suppliers, involved in technology transfer – MITI

JAPANESE machinery manufacturer CKD Corp has opened a new manufacturing facility in Kulim Hi-Tech Park, Kedah, exactly four decades after it opened its maiden oversea base in Malaysia.

The facility, spanning 80,000 sq m, has a 16,000 sq m portion dedicated to advanced manufacturing operations, according to a statement released by Malaysian Investment Development Authority (MIDA) today.

CKD, headquartered in Komaki in Aichi, Japan, is a comprehensive machinery manufacturer engaged in development, production, sales and service of automated machinery and equipment products for industrial use.

Based on automation and fluid control technologies, CKD supports a wide range of manufacturing sites producing a wide variety of products.

“Through this new plant, we will work together with government officials, customers and our employees to realise the further development of Malaysia and the future we are aiming for,” said CKD chairman Kazunori Kajimoto.

Present at the plant unveiling was CKD president/CEO Katsuhito Okuoka and Kedah Mentri Besar Datuk Seri Muhammad Sanusi Md Nor. 

Source: The Malaysian Reserve

CKD opens new manufacturing facility in Kulim Hi-Tech Park

The government is focusing on key aspects of the semiconductor value chain, particularly front-end research and development (R&D) such as integrated circuit design and wafer fabrication, to boost the industry’s growth.

The Ministry of Investment, Trade and Industry (Miti) said these initiatives are part of a wider strategy to strengthen Malaysia’s semiconductor sector, with a primary goal of enhancing domestic chip development and production.

“Various programmes are planned to achieve this, including efforts to modernise existing outsourced semiconductor assembly and test (OSAT) companies, which are a critical component of the semiconductor value chain.”

“The government is confident that Malaysia’s semiconductor industry has the potential to expand its value chain into the front-end segment, creating highly skilled job opportunities and driving stronger growth for the national economy,” Miti said.

The ministry provided this response in a written answer published on the Parliament website on Thursday.

The statement was made in response to a question from Datuk Ahmad Amzad Mohamed @ Hashim (PN-Kuala Terengganu) regarding the government’s focus on establishing Malaysia as a semiconductor industry hub.

Source: Bernama

Govt targets front-end R&D to drive semiconductor industry growth — Miti

A total of 10 investment projects have been approved for the country’s aerospace industry from 2020 to 2023 with an investment value of RM513.4 million, creating more than 700 jobs during this period.

The Ministry of Investment, Trade and Industry (MITI) stated that various strategic initiatives have been outlined to foster a competitive and sustainable aerospace industry, including through the Malaysian Aerospace Industry Master Plan 2030, the Aerospace Industry Framework under the 12th Malaysia Plan, and the New Industrial Master Plan 2030.

MITI noted that Malaysian aerospace companies have successfully secured new aerospace manufacturing work packages valued at RM5.7 billion within two years after the COVID-19 pandemic hit the world.

Additionally, the ministry highlighted that this positive development is supported by ongoing expansion projects in the maintenance, repair, and overhaul (MRO) sector, valued at over RM600 million, which have entered the implementation phase.

MITI said this in a written reply on the parliament website today to a query from Datuk Mohd Suhaimi Abdullah (PN-Langkawi) regarding steps to strengthen local aerospace players in the MRO sector amid competition from entrants like SIA Engineering Company Ltd.

The ministry also noted that the National Aerospace Industry Corporation Malaysia and the Malaysian Investment Development Authority have established strategic collaborations with original equipment manufacturers and Tier-1 suppliers to strengthen the local value chain, through seminars, forums and ongoing business matching sessions.

“As an example, the MyAERO Talent Johor programme at SMK Kota Masai 2 in Johor aims to inspire interest among the younger generation in pursuing careers in the aerospace field,” the ministry said.

Source: Bernama

10 aerospace-related projects worth over RM500m approved until 2023 – MITI

Globetronics Technology Bhd has formed a strategic partnership with Taiwan-based ChipMOS Technologies Inc for Integrated Circuit Services.

ChipMOS is a global leader in semiconductor assembly and testing services, listed on both Taiwan’s stock exchange and Nasdaq. The company specialises in memory and mixed-signal integrated circuit testing, as well as advanced packaging.

Under the agreement, Globetronics will provide cutting-edge dicing, packaging, and testing services for integrated circuit products delivered by ChipMOS.

ChipMOS, as the supplier of these products, will be responsible for furnishing Globetronics with the necessary wafers, detailed specifications, and production forecasts to facilitate efficient processing.

Globetronics said this partnership is expected to strengthen both companies’ capabilities in semiconductor backend services, enabling the delivery of high-quality solutions to meet the growing demands of the global market.

“With a total estimated contract value for the three-year agreement amounting to a minimum of RM145mil, this partnership aims to enhance production efficiency and product quality, solidifying their competitive positions in the semiconductor supply chain,” it said in a statement.

Source: The Star

Globetronics Partners with Taiwan’s ChipMOS for Integrated Circuit Services

THE Malaysian government continues to support the growth of electric vehicle (EV) charging infrastructure, offering various incentives despite the absence of specific provisions in the 2025 Budget.

Key Incentives for Charging Site Operators (CPOs)

The Ministry of Investment, Trade, and Industry (MITI) highlighted several incentives available to encourage the development of EV charging stations:

Green Investment Tax Allowance (GITA):

– CPOs meeting the eligibility criteria can benefit from a 100% Investment Tax Allowance for five years.

– This allowance allows deductions of up to 100% of statutory income annually.

Income Tax Exemption for Manufacturers:

– Companies producing EV charging equipment are granted full income tax exemptions on statutory income from 2023 to 2032.

EV Growth Projections

– By 2030, the government anticipates at least 400,000 electrified vehicles on Malaysian roads, spanning passenger and commercial vehicles.

– As of September 30, 2024, the total sales volume of electrified vehicles (including hybrids, plug-in hybrids, battery electric vehicles, and fuel cell electric vehicles) stood at 33,319 units.

– The estimated total for 2023 was 35,723 units, accounting for 4.12% of all vehicle sales.

Private Sector Investments in EV Charging Infrastructure

MITI reported significant investments by major companies to support EV charging bay (EVCB) expansion:

– Gentari (a Petronas subsidiary) and Tenaga Nasional Bhd (TNB) are committed to spending approximately RM76 million by June 2024.

– These investments, combined with efforts from 30 other active CPO companies, aim to build more EVCBs across Malaysia, increasing accessibility for EV users.

Impact on EV Adoption

This collaborative effort between government incentives and private sector investments aims to boost consumer confidence, encouraging more Malaysians to adopt EVs. The expanded infrastructure and financial support are expected to drive the transition toward sustainable transportation and support Malaysia’s environmental goals.

The ongoing development reflects Malaysia’s strategic vision for a greener future, ensuring that the country remains competitive in the global EV market.

Source: The Sun

Government bolsters EV charging infrastructure development with key incentives

Zecon Bhd has entered into a strategic collaboration agreement with Pelaburan Hartanah Bhd (PHB), Sarawak Digital Economy Corporation Bhd (SDEC) and Global Network Inc (GNI) to develop and invest in projects at Kota Petra Green Technology Park in Sarawak. 

In a filing with Bursa Malaysia Securities, Zecon said the parties agreed to explore further possibilities at the technology park by developing any of the properties belonging to each company and the third party at the park.

“In the event the parties have come to a consensus and agree to proceed with a particular purpose and/or project, and it shall be recorded by separate definitive agreement(s) which include amongst others, roles and responsibilities of the parties, transaction amount payable by the respective party and specific purpose of the development,” it said. 

PHB will not enter into direct negotiation and/or investment arrangement with any of the industrial investors in the technology park, unless with prior written consent of ZECON, SDEC and GNI.

Zecon’s share price stood unchanged at 47 sen at midday with a market value of RM69.55 million.

Source: NST

Zecon to work with PHB, others to develop projects in Sarawak green technology park