Malaysia’s booming chip manufacturing sector has attracted interest from Pakistani investors.

The semiconductor industry is one of the key areas of new collaboration between Malaysia and Pakistan following Prime Minister Datuk Seri Anwar Ibrahim’s visit to Islamabad in October.

“Malaysia is poised to become a global chip hub and Pakistani investors are invited to invest in Malaysia,” Malaysian High Commissioner to Pakistan, Datuk Mohammad Azhar Mazlan, told Bernama.

Earlier this month, more than 50 prominent Pakistani industry leaders attended a dinner reception hosted by the high commissioner at the Malaysian High Commission in Islamabad.

The focus of this engagement was on enhancing trade, investment and business collaborations between the two countries, taking advantage of the momentum in bilateral relations created by Anwar’s visit.

The high commissioner encouraged Pakistani business people to use Malaysia as a gateway to the Asean market of 680 million people.

Expanding bilateral agricultural trade, Malaysia plans to import US$200 million worth of halal meat and 100,000 tonnes of basmati rice from Pakistan.

Source: Bernama

Pakistani investors show interest in Malaysian chip sector

The Sarawak government has endorsed the establishment of the Kota Petra Green Technology Park (KPGTP) with Special Economic Zone status, said Deputy Premier Datuk Amar Awang Tengah Ali Hasan.

The state International Trade, Industry and Investment Minister said this initiative is a collaboration between Sarawak Digital Economy Corporation (SDEC), Centre for Technology Excellence Sarawak (Centexs), and the private sector to create a high-tech industrial hub.

“This development is expected to generate RM12 billion investments and create 10,000 jobs during the construction phase in 2030,” he said when winding up his ministerial speech at the State Legislative Assembly (DUN) here today.

He said the KPGTP is designed as a modern industrial park, which focuses on attracting investment in green technology sectors.

“The park will serve as a hub to foster collaboration among industry leaders, research institutions and startups through a supportive ecosystem,” he added.

He said for 2025, a total budget of RM40 million has been allocated to develop 14 industrial estates in Sarawak including Kuching High-Tech Park as an expansion for Sama Jaya Free Industrial Zone.

“This park will create attractive investment opportunities in the electrical and electronics (E&E) sector, drive innovation in semiconductor and advanced manufacturing,” he said.

Awang said his ministry has established the Industrial Park Management Committee (IPMC) to effectively manage, resolve issues and improve conditions in industrial parks in the effort to promote long-term sustainability.

“To begin with, we have formed IPMC for Sama Jaya Free Industrial Zone and Demak Laut Industrial Park.”

He said IPMC will forge strong rapport, close collaboration and coordination between government and private entities located in the industrial parks.

“IPMC will act as a liaison platform to address tenant concerns and facilitate communication with the relevant government agencies.

“This initiative will be extended to encompass all other government-developed industrial parks throughout Sarawak,” he said.

Source: Borneo Post

Awg Tengah: Sarawak to develop Kota Petra Green Tech Park, generate RM12 bln investments

Dutch Lady Milk Industries Bhd is expected to leverage its new manufacturing hub in Bandar Enstek, Negri Sembilan for growth opportunities despite a challenging cost environment.

BIMB Research, which maintained the stock’s target price at RM34, has upgraded the stock to a “buy” call from “hold”.

“We are positive about Dutch Lady’s outlook, which is underpinned by stable demand as well as long-term earnings growth, supported by the efficiency and capacity enhancements from the new facility in Negri Sembilan,” the research house said.

Noting that Dutch Lady’s long-term prospects remained intact, the research house said: “The uptrend in global dairy raw material prices and currency fluctuations, coupled with the rise in the minimum wage in Malaysia, remain key challenges moving forward.

“Additionally, Dutch Lady’s commitment to supporting local dairy farmers and adapting to evolving consumer preferences positions the company well to strengthen its presence in the Malaysian dairy market,” the research house said.

The company, which released its results for the third quarter ended Sept 30, (3Q24) on Tuesday, moved to its new manufacturing hub in late May and completed the transition to full operations in 3Q24.

Net profit over the nine-month period of Rm103.4mil was in line with forecasts for its financial year ending Dec 31, 2024 (FY24), accounting for 78% of net profit while 3Q24’s net profit declined 13.3% to Rm30.4mil primarily due to the unavailability of some non-core Dutch Lady products for sale during the transition to its new factory and the absence of sales campaigns.

Dutch Lady also declared a second interim dividend of 25 sen per share, bringing dividends for the year to date to 50 sen per share.

In a statement on its latest financial results, Dutch Lady said it expects the business landscape in Malaysia for the remainder of 2024 to face continued challenges, due to a range of domestic and international uncertainties.

The company said it would continue to focus on optimising costs and cashflow and would be implementing organisational improvements to increase effectiveness.

It also aimed to lower its fixed-cost base to battle the current inflationary and exchange rate headwinds, as well as securing internal financing for building and transitioning to its new manufacturing and distribution facility.

Source: The Star

Stable demand to bolster Dutch lady

The Kota Kinabalu Industrial Park (KKIP) has generated investments worth RM11.2 billion since its establishment in 1994, the Sabah State Legislative Assembly was told today (Nov 19).

Sabah Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe said 341 companies have operated in the industrial park, creating 14,608 full-time jobs, especially for Sabah locals.

“Industrial development in KKIP continues to run smoothly,” he said as he wrapped up the debate on the state Supply Bill (2025) for his ministry here today (Nov 19).

He said in the latest development, the construction of the Integrated Building System (IBS) factory, 100 per cent owned by KKIP Sdn Bhd, is in the trial production run stage and is expected to be fully operational in January next year.

“Phase 1 of the construction of this factory generated an investment of RM50 million and created 90 full-time job opportunities,” he said.

Phoong said next year, KKIP will focus on preparing a master plan for a new industrial park in Kota Belud, given that the remaining unused land in KKIP comes to only 101.17 hectares, located in separate areas.

Apart from Kota Belud, he said his ministry is planning the development of new industrial parks in Kudat and Kimanis next year. “The development of these industrial parks is expected to begin in the 13th Malaysia Plan.

These new industrial parks will not only support investment in high-tech industries but will also support industries based on the blue economy and food safety,” he said. 

Source: Bernama

KK Industrial Park generates RM11.2 billion investment, over 14,000 jobs

The largest South American country Brazil is strategically located for Malaysian semiconductor industry’s “Plus One” strategy to de-risk their supply chain resiliency.

Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said it is more than just a precautionary measure.

“It’s a forward-thinking approach that will help Malaysian semiconductor companies not only de-risk their supply chains but also expand their reach to new markets,” he told the Malaysian media here on Monday.

So, many Malaysian companies who want to look at Latin America, Central America and North America, this is where they can find synergies, said Tengku Zafrul, who is part of Prime Minister Datuk Seri Anwar Ibrahim’s contingent on an official visit here.

“In terms of size, Brazil’s semiconductor industry is relatively small, but it is very advanced especially in integrated circuit (IC) design and some of the tools for integrated circuit design,” he explained.

Malaysia has a comprehensive semiconductor ecosystem and is strong in back-end and outsourced semiconductor assembly and test (OSAT) activities. Malaysia is currently the sixth largest semiconductor exporter globally with exports exceeding US$85 billion (RM380 billion).

On the other hand, Brazil’s semiconductor export value stands at US$1.2 billion (2022) with a competitive edge IC design.

Malaysia’s ecosystem includes global giants such as Intel, Infineon, Micron and Texas Instruments as well as homegrown champions like Carsem and Inari, known for their expertise in OSAT activities.

He said that by forging closer ties with Brazil or other regions, Malaysia can strengthen its position as a global semiconductor leader while ensuring that its industry is resilient, diversified and prepared for future challenges.

Asked about the possibility of disruption from the change of President in the United States, Tengku Zafrul said: “So far we have not received any information. President-elect (Donald Trump) will be sworn in on Jan 20, 2025.”

“At the same time, we are discussing with companies involved in the supply chain around the world, especially in strategic sectors such as semiconductors. We also need to hold engagement sessions with those companies to discuss with the United States, China and Europe how we can ensure that this supply chain continues to be strong.

“However, their concern is not in terms of the supply chain, but in terms of tariffs. During the recent election campaign, President-elect Trump said he wanted to raise tariffs in sectors such as semiconductors and other strategic sectors.

“Even though we don’t know yet, we have to always be ready and engage with multinational and local companies. It is still early days,” he said.

“There are always pros and cons. The geopolitical tension was positive for Malaysia as countries like China and other countries took plus one strategy to ensure resilience of their supply chain, which ASEAN and Malaysia benefitted from.

“Especially the electrical and electronics (E&E) sector in Malaysia, which benefit most in the plus one strategy given the country has over 50 years of experience,” he said.

“But in the long term, if the tariff is increased, our concern is in terms of demand, the price will become expensive, so if it becomes expensive, consumption may decrease.”

“However, this is just an expectation,“ he added. “We don’t know yet if this will happen or not.”

Source: Bernama

Brazil at sweet spot for Malaysian semiconductor industry to de-risk supply chain – Tengku Zafrul

Keyto MY Sdn Bhd, a subsidiary of China’s Shenzhen Keyto Fluid Technology Co Ltd, has inaugurated its advanced fluid technology manufacturing plant in Batu Kawan, Penang.

The facility, which is projected to generate a revenue of RM65mil over the next three years, will be Keyto’s first overseas manufacturing plant, located in South-East Asia.

The new 3,540 sq m manufacturing facility will produce fluid management systems and precision components vital for medical devices, life science instruments and environmental monitoring.

The first phase of the facility will focus on manufacturing a range of fluid management solutions, including high-performance pumps, valves and fluid systems.

Malaysian Investment Development Authority chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the investment will attract additional foreign investments and foster innovation.

The facility will also create high-quality job opportunities for Malaysians and strengthen the country’s position in the global value chain.

Source: The Star

Keyto launches Penang advanced fluid technology plant

The government has introduced various initiatives and incentives to enhance the capacity of the local automotive industry, aiming to increase exports of vehicles, including spare parts and components, according to the Ministry of Investment, Trade, and Industry (Miti).

The ministry emphasised that fiscal and financial incentives, including reductions in both direct and indirect taxes, have been maintained alongside the provision of trade financing facilities and services for exporters through EXIM Bank.

“Among the initiatives taken is the signing of free trade agreements (FTAs) to obtain reductions in import duties when exporting to FTA partner countries,” Miti stated on the Parliament website on Monday.

It was replying to Datuk Indera Mohd Shahar Abdullah (BN-Paya Besar) regarding the development of the local automotive industry.

Miti also said that the import duty reductions obtained by local industry players also provide a cost-competitive advantage, offering greater market opportunities for local automotive companies.

“In addition, Malaysia is undertaking strategic cooperation under the Asean Mutual Recognition Arrangement (AMRA) to facilitate local automotive companies wishing to export their products.

“With AMRA, technical trade barriers, as well as certification and testing requirements, can be addressed or minimised,” it added.

Miti also shared that based on information provided by vehicle manufacturers Proton and Perodua, the total number of vehicles exported by both local brands from 2019 to September 2024 stood at 24,272 units.

Of this total, 17,118 units were Proton models, while the remaining 7,154 units were Perodua models.

Source: Bernama

Govt offers various initiatives, incentives to drive local automotive industry, says MITI

Prime Minister Datuk Seri Anwar Ibrahim has urged the electrical and electronics (E&E) and semiconductor industries of Malaysia and Brazil to leverage each other’s strengths and enhance collaboration, particularly given the increasing prominence of the Global South.

“Although we are from distant lands, the potential is immense. Brazil is a key pillar of the Latin American economy, while Malaysia is rapidly establishing itself as a semiconductor hub and an attractive destination for data centres and artificial intelligence,“ Anwar said.

Speaking at a roundtable meeting with representatives from the semiconductor industry and captains of industries here, today, he underscored the importance of this partnership for driving innovation and progress among nations in the Global South.

“So, the collaboration with Brazil, to me, is very critical at this point, as it will enable countries in the South to harness their expertise, knowledge, and research to excel in areas where they can make a significant impact,“ he said.

He also highlighted opportunities for cooperation beyond traditional sectors.

“In the context of the Global South, it is important for us to strengthen collaboration while continuing open trade engagements with major economies like the United States and China,“ he said.

The event was attended by 34 corporate leaders from 20 prominent companies across various industries.

Also present was Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz.

Acoording to Anwar, although the volume of semiconductor trade and export from Brazil is relatively small compared to Malaysia, the industry in Brazil has excelled in some areas that can be advantageous to both countries.

Malaysia has a comprehensive semiconductor ecosystem covering front-end and back-end activities, and it is currently the sixth largest semiconductor exporter globally with exports exceeding US$85 billion.

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

Meanwhile, Brazil’s semiconductor export value stands at US$1 billion, and the country’s competitive edge lies in the manufacturing of integrated circuits.

Anwar, who is also Malaysia’s Finance Minister, said that the potential collaboration in the semiconductor industry was one of several topics discussed during his meeting with Brazilian President Luiz Inácio Lula da Silva on Sunday.

“We are both very neutral on trade and development, and we take a very independent view of international issues and conflicts. We are not dictated by any superpower, and that makes our stance quite similar in terms of our foreign policy interaction.

“And to me, what is especially significant is that both of us want to focus on the economy, developments and new technologies,” he said.

Anwar arrived in Rio de Janeiro on Saturday for his first official visit to Brazil on da Silva’s invitation, after participating in the APEC Economic Leaders’ Week in Lima, Peru.

Malaysia was among 17 guest nations invited to the G20 Summit in Brazil, alongside countries like Chile, Qatar, Egypt, and Singapore.

In 2023, Brazil, the largest country in South America, was Malaysia’s 20th largest trading partner, 29th largest export destination and 17th largest import source.

Among Latin American and Caribbean countries, Brazil is Malaysia’s second-largest trading partner, second-largest export destination and largest import source.

Source: Bernama

Malaysia-Brazil partnership holds huge promise for E&E, semiconductor industry – PM Anwar

The government, through the Ministry of Investment, Trade and Industry (MITI), will soon release the findings of a report examining the impact of excess capacity from China, particularly in the iron and steel sector.

Deputy Minister Liew Chin Tong said the report was prepared by an independent committee established by MITI.

He added that the issue of dumping Chinese-manufactured products, driven by the country’s economic slowdown, especially in the construction and real estate industries, is a concern not only for Malaysia but globally.

“Capacity in Southeast Asia for iron and steel is set to rise over the next five to six years. In 2021, total capacity in the region was 75 million metric tons, with the potential to more than double to 150 million metric tons by 2026.

“The independent committee has prepared the relevant report for MITI, which will provide direction on addressing the issue of excess capacity in the iron and steel industry,“ Liew said in response to additional questions from Datuk Seri Saifuddin Abdullah (PN-Indera Mahkota) during an oral question and answer session in the Dewan Rakyat today.

Saifuddin sought details on the government’s specific plans to address the dumping of iron and steel products and their production in China.

Liew also noted that between 2015 and 2023, the government imposed nine anti-dumping measures and three protective measures against products imported from China, including iron and steel, plastics and construction materials, which have caused significant harm to Malaysia’s domestic industry.

“The government is also investigating four iron and steel products and plastics for potential anti-dumping violations arising from overcapacity in China’s manufacturing sector.

“The investigation aligns with Malaysia’s domestic laws and regulations, as well as with agreements under the World Trade Organisation,“ Liew explained, responding to a question from Datuk Seri Utama Ir Hasni bin Mohammad (BN-Simpang Renggam).

Hasni had inquired about the measures taken by the government to protect the local industry from the effects of China’s overcapacity, including price pressures on local products and the potential hindrance to the growth of Malaysia’s manufacturing sector, as well as strategies to ensure the long-term competitiveness of the Malaysian industrial sector.

Liew said MITI has also announced the revision of Act 504 and the Countervailing and Anti-Dumping Duties Regulations 1994 to better align with current international trade practices.

This revision aims to create a more conducive regulatory environment, positioning Malaysia as a sustainable business hub.

Additionally, MITI has launched the Trade Remedies Investigation Management System (TRIMA), a digital Single Window platform designed to modernise trade remedy investigations.

TRIMA will streamline the investigation process and reduce inquiry durations, potentially shortening the current statutory nine-month timeframe.

Source: Bernama

MITI to unveil report on China’s iron and steel overcapacity impact – Liew

Malaysia is poised to become a regional industrial gateway following its collaborations with Brazil in the semiconductor sector, said Malaysia’s Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

“By leveraging our Asean chairmanship, we can position the region as a global hub for semiconductor innovation and manufacturing, benefitting not only Malaysia and Brazil but all Asean member states,” he said during the Malaysia-Brazil semiconductor industry meeting here on Sunday (Nov 17).

In his opening remarks, he said the meeting was not only a platform to showcase Malaysia’s strengths but also an opportunity to forge meaningful partnerships.

Also present were MIMOS Bhd’s chief executive officer (CEO) Dr Saat Shukri Embong, Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai, Brazilian Association of the Electrical and Electronic Industry president Dr Humberto Barbato, and the Brazilian Association of the Semiconductor Industry president Rogério Nunes.

Zafrul said that Malaysia aims to attract RM500 billion in investments by 2030, and establish 10 local semiconductor industry champions with revenues exceeding RM1 billion each.

These targets, including the training and upskilling of 60,000 engineers, are part of the National Semiconductor Strategy.

During the meeting, Tengku Zafrul also witnessed the signing of two memoranda of understanding (MOUs) involving the semiconductor industries of Malaysia and Brazil.

The first MOU was inked by Saat and Eldorado Institute CEO Roberto Soboll, while the second MOU was signed by Wong and Barbato. 

Malaysia has a comprehensive semiconductor ecosystem that spans front-end and back-end activities. 

The country is currently the sixth largest semiconductor exporter globally, with over US$85 billion (RM379.45 billion) worth of semiconductor exports.

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

These players have turned Malaysia into a trusted hub for various industries, ranging from automotive to medical devices.

Source: Bernama

Tengku Zafrul: Semicon collab with Brazil poised to make Malaysia a regional industrial gateway

The government will continue to provide incentives for the development of electric vehicle (EV) charging infrastructure, even though these incentives were not specifically mentioned in Budget 2025.

The Ministry of Investment, Trade and Industry (Miti) said among the incentives are Green Investment Tax Allowance (Gita) programme whereby the charging point operators (CPOs) who meet the tax incentive criteria can receive a 100% tax exemption in the form of an investment tax allowance for a period of five years.

This allowance can be used to offset up to 100% of statutory income for each assessment year.

“In addition, incentives in the form of income tax exemptions are also being offered to companies manufacturing EV charging equipment in the form of a full income tax exemption on statutory income starting from the assessment year 2023 until the assessment year 2032,” said Miti.

The ministry said this in a written reply on the Parliament website on Monday in response to a question from Tan Kok Wai (PH-Cheras) regarding the specific allocations for the development of EV charging infrastructure in the current budget.

Miti also said the government expects the total number of electric-powered vehicles (xEV) on the road to reach at least 400,000 passenger and commercial vehicles by 2030.

As of Sept 30, 2024, the total annual sales for vehicles, including hybrid, plug-in hybrid, battery electric vehicles (BEVs), and fuel cell electric vehicles (FCEVs), amounted to 33,319 units. For the whole of 2023, the sales rate was 4.12%, or 35,723 units.

Meanwhile, in supporting the development of EV charging bays (EVCBs), the ministry said that Petronas’ subsidiary Gentari and Tenaga Nasional Bhd (KL:TENAGA) have committed to making investments and had spent around RM76 million up to June 2024.

With the significant financial involvement of both companies, more EVCBs are expected to be built across Malaysia, supported by other CPOs that also provide EV charging services to the public.

“This positive development has helped boost the confidence of EV enthusiasts in purchasing and using these vehicles,” according to Miti.

Currently, there are about 30 CPOs operating in the local market.

Source: Bernama

MITI: Govt provides incentives for EV charging infrastructure development

Malaysia is poised to become a regional industrial gateway following its collaborations with Brazil in the semiconductor sector, said Investment, Trade and Industry Minister, Tengku Datuk Seri Zafrul Abdul Aziz.

“By leveraging our Asean chairmanship, we can position the region as a global hub for semiconductor innovation and manufacturing, benefiting not only Malaysia and Brazil but all Asean member states,” he said during the Malaysia-Brazil semiconductor industry meeting here today.

In his opening remarks, he said the meeting was not only a platform to showcase Malaysia’s strengths but also an opportunity to forge meaningful partnerships.

Also present were MIMOS Bhd’s chief executive officer (CEO), Dr Saat Shukri Embong; Malaysia Semiconductor Industry Association president, Datuk Seri Wong Siew Hai; Brazilian Association of the Electrical and Electronic Industry president, Dr Humberto Barbato, and the Brazilian Association of the Semiconductor Industry president, Rogério Nunes.

Tengku Zafrul said Malaysia aims to attract RM500 billion in investments by 2030 and establish 10 local semiconductor industry champions with revenues exceeding RM1 billion each. These targets, including the training and upskilling of 60,000 engineers, are part of the National Semiconductor Strategy.

During the meeting, Tengku Zafrul also witnessed the signing of two memoranda of understanding (MoU) involving the semiconductor industries of Malaysia and Brazil. The first MoU was inked by Saat and Eldorado Institute CEO, Roberto Soboll, while the second MoU was signed by Wong and Barbato.

Malaysia has a comprehensive semiconductor ecosystem that spans front-end and back-end activities.

The country is currently the sixth largest semiconductor exporter globally, with over US$85 billion worth of semiconductor exports. Malaysia’s semiconductor ecosystem includes global giants such as Intel, Infineon, Micron, and Texas Instruments, as well as homegrown champions like Carsem and Inari.

These players have turned Malaysia into a trusted hub for various industries, ranging from automotive to medical devices.

Source: Bernama

Tengku Zafrul: Malaysia-Brazil semiconductor collaboration to drive regional industry

As we enter the final two months of 2024, what are the expectations for the semiconductor industry? TechInsights’ 2025 semiconductor manufacturing outlook estimated that integrated circuit (IC) sales will witness increases of 17% and 14% in silicon demand and semiconductor capital expenditure respectively. Second, there will be a 20% rise in equipment sales, driven by strong demand from China. Third, the glass substrate business continues to optimise cost and performance in advanced packaging. Fourth, the subsystem market will grow 15%, driven by continued investment and overall market growth. Fifth, there will be significant advancements in the semiconductor testing market, with strong growth in probe cards, test and burn-in sockets, and interface boards.

In short, strong semiconductor manufacturing expectations in 2025 will be driven by robust semiconductor sales growth in 2024. As at 3Q2024, global semiconductor sales grew 23% to reach US$166 billion (RM745 billion). This substantial growth driven by rising demand for artificial intelligence (AI), 5G and electric vehicles in turn led to a significant production surge for logic and memory chips, and specifically graphic processing units and high-bandwidth memory. The new chips not only provide higher computing power but also enormous data storage capacity and faster read/write speeds that enable AI to pull data much faster than a traditional hard disk drive in the data centre.

As more IC units are being sold, they are driving better sales in semiconductor equipment. According to SEMI’s latest data, IC equipment sales reached US$53 billion in the first half of 2024 and are projected to reach US$128 billion in full-year 2025. The sales forecast comes from strong equipment investment in Asian regions. China’s purchases alone exceeded US$24 billion, driven by the country’s ambitious goal to develop its own AI chatbots, independent of Western influence. Although Taiwan’s and South Korea’s semiconductor equipment investments are insignificantly smaller compared with China’s, TSMC and Samsung foundries are focused on developing advanced chips, whereas China is heavily invested in 300mm fabs.

The top five leading front-end equipment vendors — Advanced Semiconductor Materials Lithography (ASML), Tokyo Electron, Kokusai Electric, Applied Materials, and Lam Research — accounted for 74% of the total IC equipment sales in the first half of 2024. ASML was the market leader in the wafer fabrication equipment segment, producing top-of-the-line extreme ultraviolet (EUV) lithography machines that are critical to producing the smallest and most powerful chips to support AI applications. Three weeks ago, ASML revealed that the number of machines it ordered in 3Q2024 was lower than expected, resulting in US$56 billion being wiped off its market cap, larger than Intel’s loss of US$30 billion in August.

In 3Q2024, China accounted for almost 50% of ASML’s total sales, purchasing US$2.8 billion worth of equipment, which is more than double its revenue from the US. This equipment can only be used for production of chips used mainly in consumer appliances such as refrigerators, phones, toys and automobiles. For comparison, ASML’s sales to Taiwan and South Korea were US$951 million each, where Taiwan is a leading producer of logic chips, while South Korea is a major manufacturer of memory chips. Investment in foundries has slowed, as companies realised that the EUV machines are very expensive. Each of the latest EUV machines cost US$350 million, equivalent to the price of an Airbus A350! As TSMC senior vice-president of business development Dr Kevin Zhang remarked, “I like the high-NA EUV’s capability, but I don’t like the sticker price.” Buoyed by export controls and market dynamics, ASML finds itself balancing the immediate revenue boost from China’s demand for less advanced machines with the slow uptake of cutting-edge machinery in Taiwan and South Korea. Despite this, analysts expect capital spending to likely increase again in 2025.

As ASML’s sales slow down, the back-end equipment sector is experiencing growth. Quarterly revenue grew 8.5% year on year, reaching US$1.3 billion in 2Q2024, driven by strong growth coming from wafer and die preparation and packaging equipment for advanced packaging solutions. The world’s leading back-end equipment suppliers — Hanmi, Hanwha, Semes, ASMPT, and Kulicke and Soffa (K&S) — together contributed 22% of the total IC equipment market. While front-end equipment sales are stronger, back-end equipment suppliers face fewer restrictions from export controls. Yole Group’s analysts forecast that back-end equipment revenue will reach US$1.74 billion in 1Q2025, with China as the largest buyer.

Malaysia also played a significant role in this segment of back-end equipment revenue. The Herfindahl-Hirschman Index, which measures market concentration, reveals that Malaysia hosts a sufficient number of vendors to sustain the supply of back-end equipment. This suggests that Malaysia has the ability to create a diverse and competitive equipment market, capable of supporting the needs of both local and foreign chipmakers. In 2022, Malaysia sold US$171 billion worth of industrial manufacturing equipment. Of this total, Malaysian Bursa-listed semiconductor manufacturing equipment suppliers, including Aemulus Holdings Bhd (KL:AEMULUS), Edelteq Holdings Bhd (KL:EDELTEQ), Elsoft Research Bhd (KL:ELSOFT, Greatech Technology Bhd (KL:GREATEC), Mi Technovation Bhd (KL:MI), MMS Ventures Bhd (KL:MMSV), Pentamaster Corp Bhd (KL:PENTA), TT Vision Holdings Bhd (KL:TTVHB), VisDynamics Holdings Bhd (KL:VIS) and ViTrox Corp Bhd (KL:VITROX), accounted for 34% of industrial machinery sales. China is not only the largest buyer of such machines from the West, but also one of the most attractive markets for Malaysian suppliers.

Despite harsh export controls implemented under the Biden administration, the semiconductor trade remains relatively stable. The return of Donald Trump as president-elect on Nov 5, 2024, raises some concerns about erratic decisions. In an interview in October with an American podcaster, Joe Rogan, Trump said that he did not like the CHIPS Act, and criticised the US CHIPS Act, saying that he would implement tariffs on chips from Taiwan if elected president. “You know, Taiwan, they stole our chip business … and they want protection,” Trump said.

Nevertheless, once Trump settles down, the semiconductor business in the short term should remain robust, as demand for powerful chips to drive artificial intelligence and military equipment and data centres needed by the great and middle powers would keep demand strong. In the medium term, there is worry about oversupply arising from the upturn in overall capacity. The market leaders seem to have their markets intact, whereas those with lagging technology may be the losers.

Tan Sri Andrew Sheng writes on Asian global issues. Loh Peixin is a research associate at the George Town Institute of Open and Advanced Studies, Wawasan Open University. The authors are engaged in a major study of the tech industry in Penang.

Source: The Edge Malaysia

Outlook for semiconductor manufacturing equipment market remains fair

Amid current headwinds, the local manufacturing sector is anticipated to stabilise as it enters 2025 with the global electronics downcycle projected to bottom out.

According to the latest World Semiconductor Trade Statistics, the global semiconductor market is forecasted to grow by 12.5% next year, reaching an estimated valuation of US$687bil.

It said this growth is expected to be driven primarily by the memory and logic sectors, which are on track to each soar above US$200bil in 2025, representing an increase of more than 25% for memory and over 10% for logic compared to the previous year.

This bodes well for the Malaysian manufacturing sector, particularly the semiconductor business, industry experts noted.

OCBC senior Asean economist Lavanya Venkateswaran told StarBiz that the bank anticipates Malaysia’s manufacturing sector to stabilise in 2025, following the expected bottoming out of the global electronics downcycle in 2024.

“The growth rate for the global semiconductor market is expected to moderate to 12.5% year-on-year in 2025, versus 16% in 2024.

“This will likely imply a stabilisation of semiconductor production, even for Malaysia, by next year,” she added.

The manufacturing sector is one of the key drivers of the economy, which expanded by 5.3% in the third quarter of 2024.

The growth was primarily due to strong investment activity and continued improvement in exports.

Meanwhile, TA Research is optimistic about the outlook for domestic manufacturing, noting that the Purchasing Managers’ Index (PMI), a key indicator of the sector’s future business conditions, is expected to continue expanding at a sustained pace despite sentiment easing slightly.

The brokerage noted that the average PMI reading for the first 10 months of the year remained resilient, reflecting sustained improvement in the growth of the manufacturing sector.

“Looking ahead, new-order growth is expected to continue over the coming year, bolstering optimism about the 12-month outlook for manufacturing production.”

TA Research was referring to the improvement seen in the average PMI for the first 10 months of 2024, which stood at 49.4, compared with 47.7 during the same period last year and the 47.8 average recorded in 2023.

The seasonally adjusted S&P Global Malaysia manufacturing PMI held steady at 49.5 even though the sector experienced a slowdown in October with subdued business conditions, as production volumes were scaled back more significantly compared to September.

The manufacturing PMI gauges the prevailing economic trends in the sector. A reading above 50 signals expansion, while a reading below 50 indicates contraction.

Economist and Williams Business Consultancy Sdn Bhd founder Geoffrey Williams said the manufacturing PMI has been below 50 for the past five months, from June to October 2024, signalling a contraction in the sector.

However, Williams noted that manufacturing sales have been growing this year, after contracting from June to December last year.

He explained that sales in the first half of 2024 are likely to be sales from inventory stocks, while actual sales have slowed from July onward.

Given this trend, the signal is that manufacturing sales will continue to contract or will be sustained by inventory stocks in 2024, but may improve in 2025 as the PMI is only slightly below 50, he added.

“There may be some push from higher exports but the appreciation of the ringgit makes exports more expensive.

“Thus, any extra export sales will depend on global economic growth, which is likely to improve in 2025 but the picture remains cautious.”

Williams highlighted that headwinds for the manufacturing sector may arise from caution related to possible US tariffs, which might hold back sales until the situation becomes clearer.

On the whole, this might benefit Malaysia but many are still in a “wait and see” mode,” he said.

Commenting on the manufacturing PMI, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the index is a reflection of sentiment among the manufacturers, which has mostly remained below the 50-point threshold.

Generally, he said manufacturers are pessimistic because the cost of doing business is rising, such as logistics, raw material and labour costs.

On top of that, there is a sense of anxiety over the global environment, especially geopolitical tensions, which are affecting supply chains.

“However, judging from the manufacturing sector’s Industrial Production Index, production activities have picked up pace from a 2.1% growth in the first quarter of 2024 (1Q24) to 4.9% and 5.8% in 2Q24 and 3Q24, respectively.

“On that note, manufacturers have been busy. So, we have a situation where manufacturers remain guarded and with Trump helming the United States presidency, we can expect the PMI to remain muted,” he pointed out.

Therefore, he said the PMI for 2024 and 2025 could linger around 50, or slightly lower.

On the headwinds that could impact local manufacturing activities this year and next, Mohd Afzanizam said these challenges would be externally driven.

“Trump’s policies on tariffs, China’s slowdown and geopolitical risks (relating to Ukraine and in Gaza) are likely to wreak havoc on the global financial and commodities markets, which could impact local manufacturing activities,” he said.

OCBC’s Lavanya agreed, stating that the biggest risks to Malaysia would be from external factors.

“The potential imposition of tariffs by the United States on key trading partners, geopolitical risks and lower-than-expected demand for semiconductors are key challenges to Malaysia’s industrial production outlook,” she said.

Source: The Star

Manufacturing to stabilise in 2025

The second Malaysia Semiconductor IC Design Park in Cyberjaya, Sepang will be launched early next year, said Selangor Menteri Besar Datuk Seri Amirudin Shari.

Amirudin said the launch of the second integrated circuit (IC) design park was a follow-up to the successful establishment of such a park in Puchong by the Selangor Information Technology & Digital Economy Corporation (SIDEC) which successfully attracted the participation of seven local and international IC companies.

He said, the initiative was the result of close cooperation between the state government and the federal government.

“For that purpose, the Selangor government will contribute RM50 million, which is RM10 million a year from 2024 until 2029, while the federal government through the Ministry of Economy is estimated to channel RM100 million,” he said when tabling the Selangor Budget 2025 at the Selangor State Legislative Assembly here today.

At the same time, Selangor Digital School (SDS) will be upgraded to Advanced Semiconductor Academy of Malaysia (ASEM) which will develop an 80,000 square foot campus in the second IC design park, Amirudin said

Meanwhile, Amirudin said the Selangor AI Incubator Centre, which is a facility in the field of artificial intelligence (AI), will be developed with the first phase conceptualised as a technology training centre to be equipped with facilities for the AI incubator programme as well as offering specific education and certification programmes in the field.

He said the overall allocation for all these AI initiatives amounted to RM5 million, which reflected the commitment of the state government to prepare Selangor to enter the gates of AI.

“The state government is also always ready to cooperate with other AI service providers to expand the scope of the technology in Selangor,” he said.

Source: Bernama

Selangor MB: Second Malaysia Semiconductor IC Design Park to be launched early next year

Selangor is ready to work closely with industry players to reap the benefits of new technologies such as artificial intelligence (AI).

Menteri Besar Datuk Seri Amirudin Shari said the state is planning to leverage the use of AI to increase the productivity of workers and enhance the government’s efficiency.

He said this was the guiding philosophy behind the launch of the Speed Selangor Policy which will kick off next year, adding that the policy will reduce the processing and wait times businesses currently face when dealing with planning permission or acquiring a business license after receiving the certificate for completion and compliance (CCC).

“Beginning next year, we aim for local authorities to provide business licenses within 24 hours upon ticking all the CCC boxes,“ he said in his speech at the Selangor International Business Summit (SIBS) 2024 Appreciation Dinner, here today.

Amirudin also highlighted Selangor’s ambitious targets for the semiconductor sector, supported by a substantial investment planned for 2025.

“We are keen to attract more companies from China and Taiwan to establish their presence in Selangor, particularly those investing in the design phase of integrated circuits,” he said.

Commenting on SIBS 2025, Amirudin emphasised Selangor’s commitment to continue evolving and improving the summit even further.

“Our next focus for SIBS will be on promoting high-growth sectors, embracing technological innovation, and cultivating a highly skilled international workforce capable of meeting the evolving demands of the global industries.

“With a strong foundation in place, the summit is well-positioned to continue building upon these successes and remain a beacon of opportunity, where businesses thrive, partnerships deepen, and innovation reaches new heights,“ he added.

SIBS 2025 will return to the all-in-one format and will be held in a single week from Oct 8 – 11, 2025, at the Kuala Lumpur Convention Centre (KLCC), added Amirudin.

Source: Bernama

Selangor ready to work with industry players to leverage AI benefits – Amirudin

Malaysia is expected to become Southeast Asia’s packaging for manufacturing hub within 10 years, said Reed Exhibitions (RX) China chief operating officer Josephine Lee.

Lee said that with strategic changes in the global manufacturing industry, Southeast Asia has become one of the most dynamic and promising regions for economic development.

“Malaysia, as a key player in the Southeast Asian packaging market, is experiencing significant growth and transformation, particularly in the food and beverage, e-commerce, and healthcare sectors.

“The Southeast Asian packaging market is expected to see rapid growth, with the regional gross domestic product forecast to expand by 4.7% in 2025-2026,” she told reporters at the launch of Wepack Asean 2024 yesterday.

Regarding the performance of Malaysia’s packaging industry this year, the Malaysian Corrugated Carton Manufacturers’ Association (MACCMA) chairman Henry Low anticipated a more robust industry performance recovery around March or April 2025.

“This is due to regional and seasonal factors as well as global economic pressures, which are key contributors to the current trend.

“This recovery may be spurred by anticipated improvements in MalaysiaChina relations following upcoming political developments, which could influence investment flows and trade conditions,” he added.

Wepack Asean 2024, organised by RX in collaboration with MACCMA, is the most professional exhibition on packaging container manufacturing and its applications in Southeast Asia.

The trade show, which is the second edition in Malaysia held at the Malaysia International Trade and Exhibition Centre from Nov 14-16, is expected to receive more than 5,000 delegates from around the world to explore and learn the latest technologies in the industry, sustainable solutions, and opportunities for transformational growth. 

Source: Bernama

Malaysia set to become SE Asia’s packaging for manufacturing hub: Reed Exhibitions

Petroliam Nasional Bhd has made new investments totalling RM7.5 billion at the Pengerang Integrated Complex (PIC) near Kota Tinggi.

Johor Menteri Besar Datuk Onn Hafiz Ghazi said that the investment includes a 40-megawatt solar energy project, a collaboration between Petronas Chemicals Group Bhd (PCG) and LG Chem, for the production of nitrile butadiene latex, a state-of-the-art chemical recycling plant for plastics, and the development of a bio-refinery, which is expected to begin operations by 2028.

He said various development plans have been outlined for the Pengerang Integrated Petroleum Complex (PIPC), which covers approximately 9,268.9 hectares and will be developed in four phases to create a downstream oil and gas chain in Johor, from 2012 to 2037.

“Alhamdulillah, I had the opportunity to meet with Petronas management to discuss the latest progress at the PIC. I was also informed that the PIC has completed the Integrated Performance Test (IPT) for 54 of their plants.

“I hope that these developments will bring economic spillovers and attract new investors so that Johor’s aspiration to become a developed state by 2030 can be achieved. Insya-Allah,” he said in a Facebook post today.

PIC is located within the PIPC, an industrial development under the jurisdiction of Johor Petroleum Development Corporation Bhd (JPDC), which is a government agency mandated to coordinate, facilitate, and promote the development of the downstream oil and gas industry in Johor.

Source: Bernama

Petronas pumps RM7.5b into Pengerang complex for solar energy project, bio-refinery development, says Johor MB

The Ministry of Economy is committed to ensuring that phase one of the Kedah Rubber City (KRC) development will be completed within a year, said Economy Minister Rafizi Ramli.

“I am confident that within a year we will be able to successfully complete phase one (of KRC) and it will allow the Ministry of Economy to assess whether we can build or upgrade the road from Padang Terap to Alor Setar,“ he told Parliament today in wrapping up the debate on the Supply Bill 2025.

In addition, Rafizi said the Ministry of Finance (MoF) is also in the process of developing and implementing a new incentive package for KRC.

He said the ministry was aware that the existing incentive package would expire on Dec 31, 2024 when he chaired the exco meeting of the Northern Corridor Economic Implementation Authority (NCIA) recently.

“The MOF is in the process of developing and implementing a new incentive package but it will be more about location and the focus will be on certain industries,“ he said.

Source: Bernama

Govt committed to ensuring phase one of KRC development completed within a year – Rafizi

SBH Kibing Solar New Energy (M) Sdn Bhd has signed a deal for a RM7.2 billion solar glass manufacturing plant in Kimanis.

Sabah Chief Minister Datuk Seri Hajiji Noor said the new investment, signed with two government-linked companies, was significant. He said it would boost economic growth for Sabah and create jobs for the local communities.

Hajiji oversaw the exchange of the sublease agreement between SBH Kibing and Fokasrama Sdn Bhd, a wholly owned subsidiary of the Sawit Kinabalu Group.

The sublease agreement will pave the way for the development of a state-of-the-art solar glass manufacturing plant, set to become one of the largest facilities of its kind in the region.

This development is part of SBH Kibing’s plans to expand Sabah’s renewable energy infrastructure, enhance its global solar energy market position and complement the China-based company’s existing plant at the Kota Kinabalu Industrial Park (KKIP).

The new solar glass facility also highlights Kibing’s commitment to renewable energy growth in Sabah and establishing a key manufacturing site in the state.

Representing Fokasrama Sdn Bhd was Sawit Kinabalu Group managing director and chief executive officer Datuk Victor Ationg, while chairman William Chen represented SBH Kibing Solar New Energy.

The second exchange of documents was for the Heads of Agreement between SBH Kibing Solar New Energy and Sabah Energy Corporation Sdn Bhd (SEC) to supply 45 million standard cubic feet per day of natural gas to support the new factory’s operations.

As Sabah’s primary natural gas provider, SEC continues to play an important role in driving regional economic growth through reliable and cleaner energy solutions.

Representing SEC was chief executive officer Datuk Adzmir Abd Rahman while deputy managing director Celine Li represented SBH Kibing Solar New Energy.

Present were state Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe, SEC chairman Datuk Annuar Ayub, State Secretary Datuk Seri Haji Safar Untong and senior officials.

Hajiji later chaired the Sawit Kinabalu and Borneo Samudera board of directors’ meeting.

Source: NST

SBH Kibing inks RM7.2 billion deal for solar glass plant in Kimanis

Leveraging expertise in manufacturing, semiconductor

Malaysia aims to transition from its long-standing role as a manufacturer of automotive components to become a key player in designing chips for the automotive industry.

This grand ambition is achievable, according to Investment, Trade and Industry Deputy Minister Liew Chin Tong, by leveraging the country’s expertise in both car manufacturing and semiconductor technology.

It can also reduce Malaysia’s dependence on petroleum and promote sustainability.

Liew said Malaysia not only has 40 years of experience in car manufacturing, but it also has a strong semiconductor cluster.

“We are hoping that there will be a horizontal crossing between the automotive and semiconductor industries, so that one day we will also be known for designing chips for the automotive sector,” he told reporters after the opening ceremony of E-mobility Asia 2024.

“Electrification has a big role to play. If we can deal with that, we can address subsidy issues, petroleum consumption and balance of payments as the import bill is huge,” he added.

According to the National Energy Transition Roadmap, Malaysia targets electrified vehicles (xevs) to account for 20% of total industry volume (TIV) by 2030, 50% by 2040 and 80% by 2050. While these goals are ambitious, Liew said they are achievable with a “concerted effort.”

Citing a report by the International Energy Agency, Liew noted that in 2018, xevs made up only 2% of global TIV.

By 2022, this figure had risen to 14% and by 2023, it stood at 18%.

Having produced local automotive brands since 1983, Liew said Malaysia has a solid foundation and now is the time to “think big” to drive the exponential growth required for electrification.

Malaysia Automotive, Robotics and IOT Institute (MARII) chief executive officer Azrul Reza Aziz noted that the rise of electric vehicles (EVS) has spurred the development of a new sector and supply chain driven by innovation, particularly in battery technology and charging infrastructure.

He said MARII will be organising the Global Automotive Technology Exchange (Gate) expo, which is set to launch in 2025.

“Gate is an ambitious platform designed to establish Malaysia as a regional and global hub for automotive technology, specifically in the areas of EVS, connected mobility and next-generation vehicle (NXGV) innovations,” he noted.

EMA will operate under the pillars of Gate, providing a focused platform for EV production and green e-mobility awareness. Gate will take a broader approach, emphasising after-sales services, ensuring long-term support and innovation in the lifecycle of EVS and NXGVS.

Meanwhile, Prof Azizan Ahmad, a member of Universiti Kebangsaan Malaysia’s battery technology research group, urged the government to establish clear policies, considering both macro and micro perspectives.

“On the macro level, the government should look at policies, incentives for green batteries, and research and development,” Azizan said during a panel discussion.

He suggested Malaysia set its own standards to ensure that imported batteries meet quality and environmental criteria.

Source: The Star

Pioneering car chip design

The government is strengthening ties with developed countries and leading multinational companies in the semiconductor industry in an effort to increase technological collaboration, said the Ministry of Investment, Trade and Industry (Miti).

“Through this approach, the government hopes to increase technology and knowledge transfer, gain expertise in high-tech chip production as well as attract more investments from multinational companies that want to take advantage of the country’s market potential and infrastructure,” it said.

Miti was making a written reply on the parliament website today to a question by Datuk Seri Amirudin Shari (PH-Gombak) regarding the latest status and details of the National Semiconductor Strategy and support measures to increase the potential of the semiconductor industry, especially at the high-end level.

Miti said that as of the third quarter of 2024, several important advancements had been achieved in the country’s semiconductor industry, among which a total of 500 engineers and 557 technical workers had been trained to strengthen Malaysia’s technical expertise in integrated circuit (IC) design and semiconductor production while a total of 4,673 individuals had been employed.

The government has successfully attracted investments worth RM34.6 billion as of the third quarter of 2024, of which RM0.97 billion was from domestic investments while RM34 billion was from foreign investments and as many as three local IC design companies had been established during that period, it said.

Miti also said the annual total sales rate for electric vehicles (EVs) including hybrid, plug-in hybrid, battery-powered electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs) achieved as of September 2024 was 5.11%, while for the entire year 2023, the rate was 4.12%.

It said the total usage of new passenger and commercial BEVs is higher in 2024 with 15,876 units and 13,513 units in 2023, compared to 3,146 units in 2020.

“This achievement is the result of the joint efforts of ministries and government agencies with the industry to help ensure the formation of the EV industry ecosystem is more planned and orderly.

“Before 2018, the usage of EVs was low and had not developed widely in Malaysia and the region,” it said.

From the planning aspect, the government has set a target of 10,000 public charging points by 2025 covering all states including strategic locations, whether based on demand or access, MITI said in a reply to Zahir Hassan’s (PH-Wangsa Maju) question regarding the ministry’s strategy to increase the use of EVs in Malaysia.

Source: Bernama

Govt expands collaboration with global semiconductor players — Miti

US-based medical devices company Dexcom Inc has officially opened its new manufacturing facility, also its first offshore manufacturing site outside the US, in Batu Kawan, Penang.

Penang Chief Minister Chow Kon Yeow said the RM2.83 billion strategic investment will bring more than 3,000 jobs to the state, contributing to a workforce set to positively impact the lives of over three million people worldwide. 

Dexcom, founded in 1999, is a global leader in continuous glucose monitoring (CGM) technology for individuals living with diabetes. 

“The establishment of this new facility highlights Dexcom’s continued commitment to taking control of health through innovative CGM systems. 

“It also reaffirms Penang’s reputation as a global hub for advanced technological industries, reinforcing its position as a preferred destination for high-quality manufacturing and innovation,” the chief minister said in his speech at the opening ceremony here on Tuesday.

Penang Development Corporation chief executive officer Datuk Aziz Bakar, InvestPenang CEO Datuk Loo Lee Lian, and Dexcom chief operating officer Jake Leach were also present at the event.

Chow said Penang is on the right path towards becoming the medical technology (medtech) hub of Southeast Asia by leveraging the state’s over 50 years of industry excellence.

“Housing the largest number of medtech companies nationally and regionally, Penang remains a highly attractive location for its infrastructure availability and ecosystem that meet the needs of the medtech industry. 

“For the past five years (2019-2023), Penang garnered a total of RM5.8 billion worth of investments in the scientific and measuring equipment sector, representing 45% of the nation’s total investments in this sector, involving 33 projects and generating an estimated 4,630 employment opportunities,” he said.

Dubbed the Silicon Valley of the East, Penang has reportedly the highest concentration of medtech companies in Malaysia and Southeast Asia to date. 

Chow added that Penang maintained its lead as the nation’s top exporter in September, with a 37.5% share or RM46.5 billion of total trade.

Meanwhile, in a statement on Tuesday, Malaysian Investment Development Authority (Mida) CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said Dexcom’s establishment in Malaysia signifies a pivotal moment for the country’s medical devices sector. 

He highlighted that the state-of-the-art facility would drive advancements in Malaysia’s point-of-care segment, which would create high-value job opportunities and facilitate technology transfer. 

“This project aligns with the objectives of our New Industrial Master Plan 2030, particularly in fostering economic complexity through innovation and nurturing a skilled talent pool. 

“Mida is confident that the country’s supply chain resilience will further bolster Dexcom’s growth trajectory in Malaysia by enhancing the local supplier ecosystem,” he added.

Source: Bernama

Dexcom opens Penang manufacturing facility with RM2.83b investment

Malaysia has significant potential to become a regional hub for electric vehicle (EV) manufacturing in Asean, thanks to its 40-year history in automotive production since 1983 and its strong semiconductor cluster, said Deputy Minister of Investment, Trade and Industry Liew Chin Tong.

He said the country aims to foster greater integration between the automotive and semiconductor industries, with the goal of becoming a leading hub for designing chips specifically for the automotive sector.

“Malaysia is a very interesting place; we are the sixth largest exporter of semiconductor products in the world. While we may not have a homegrown brand, we play a very big role especially in the backend,” he said in a keynote address before officiating the E-Mobility Asia exhibition here, on Tuesday.

He shared that during his visit to Detroit, US, last year, US Secretary of Commerce Gina M Raimondo remarked in a meeting that when Malaysia went into lockdown during the Covid-19 pandemic, automotive factories in Detroit were forced to shut down.

“This is because the chips they relied on came from Malaysia and some semiconductor companies in Malaysia contributed substantially in global automotive chips.

“Therefore, when talk about automotive industry, especially the electrification of mobility, it is important that we do not work in silos or focus solely on individual verticals.

“I would like to see this industry cross in the horizontal manner, (fostering the) creation of new products, integrated circuit designs, and automotive chips that are proudly Malaysian. This will enable us to not only export automotive parts but also automotive chips,” he added.

Meanwhile, Liew said the other aspiration is to reduce the overall national consumption of petroleum through the electrification of mobility.

“If you ask around, most people would think that this country is a net exporter of petroleum, which is not true. We are the net importer of petroleum and the 21st largest net importer of petroleum.

“I encourage you to think boldly and offer new ideas to help us explore different approaches, so that electrification becomes not just a business opportunity for manufacturers, but a national agenda aimed at reducing overall petrol consumption,” he said.

The Malaysian government has set a target for EVs to make up 20% of the total industry volume (TIV) by 2030, 50% by 2040, and 80% by 2050.

“While it looks ambitious especially given that we are starting from a low base, the International Energy Agency’s annual Global EV Outlook highlights some key trends — EVs made up just 2% of the TIV globally in 2018.

“By 2022, this had risen to 14% of TIV globally, and by 2023, it reached 18%. Therefore, achieving 20% of TIV by 2030 is not a far-fetched target, but it will require a lot of concerted effort. It will require us to be bold and think outside the box,” he said.

Source: Bernama

Malaysia poised to become Asean’s regional hub for EV manufacturing, says Liew Chin Tong

Pentamaster Corp Bhd’s prospects for the year ahead are expected to be underpinned by high-growth segments of the semiconductor industry, such as artificial intelligence (AI) and medical manufacturing.

This comes amid the automation systems and services provider taking a guarded outlook for the first half of 2025 (1H25) due to the sluggish automotive sector.

According to RHB Research, Pentamaster revealed that there was continued weakness in the automotive segment, with the group’s order book growing only 5% quarter-on-quarter to Rm420mil.

“Management, in its briefing, said it now projects that the sector will contribute 25% to 28% to overall 2024 revenue, with expected softness persisting into 1H25,” the brokerage said.

“Against this backdrop, Pentamaster is shifting its focus towards high-growth segments (such as advanced packaging within semiconductor manufacturing), viewing 2H24 as a transitional period,” it wrote in its report yesterday.

RHB Research maintained its “buy” call on Pentamaster, with a lower target price of RM5.10, compared with RM5.95 previously.

This came after the brokerage cut its earnings forecasts for Pentamaster by 8% for 2024, 14% for 2025, and 12% for 2026 on lower anticipated automotive sector contribution.

“Management noted a more cautious 1H25 outlook, largely due to a slower-than-anticipated performance in the automotive sector.

“Nonetheless, we remain optimistic on Pentamaster’s prospects, as it stands to benefit from the expansion of power semiconductor devices driven by AI advancements, and from medical manufacturing automation due to stringent industry standards,” it explained.

RHB Research pointed out that medical devices would remain primary revenue driver for Pentamaster at 45% to 48% of 2024 revenue.

“The group is working to expand its customer base in anticipation of a slowdown from its main client. New customers currently represent a relatively modest 10%15% portion of the medical devices topline,” it said.

“In 2025, Pentamaster expects the segment to contribute 40% to 45% of revenue, with its key customer as the largest contributor.

“It is also seeing momentum from new customers and expects expansion plans from these clients,” it added.

Meanwhile, RHB Research noted that the semiconductor space showed signs of recovery with revenue growth in the third quarter of 2024, and is expected to represent around 10% of total 2024 revenue.

Similarly, the electro-optical industry is projected to sustain its growth momentum, contributing 10% to 12% to total revenue, it said.

Source: The Star

Pentamaster to shift focus to high-growth segments