Manufacturers must adopt sustainable practices to meet environmental regulations 

SINCE 2010, the number of Malaysian companies focusing on factory automation has doubled, with the top 10 firms now boasting a combined valuation exceeding RM25.8 billion, according to Malaysian Investment Development Authority. 

Automation has proven to be a game-changer, reshaping how industries approach operation scalability, production optimisation, engineering efficiency and sustainability. It is especially important for Malaysia’s manufacturing sector, which is projected to grow by 4.5% next year, according to the recent Economic Outlook 2025 report from the Ministry of Finance. 

With the rise of IR4.0 or Smart Factory technologies, manufacturers around the world are also increasingly adopting Internet of Things, artificial intelligence and robotics to create more interconnected and intelligent systems that optimise resource management and enhance decision-making processes. To support local manufacturer’s growth, the Malaysian government has set a target to convert 3,000 factories into smart factories by 2030 under the New Industrial Master Plan 2030. 

However, the manufacturing sector faces unique hurdles in embracing digital transformation. 

According to industry experts, one of the challenge lies with IT. Many legacy systems may include outdated or unnecessary software licenses that are no longer relevant in today’s digital landscape. The drive towards sustainability adds another layer of complexity. 

With environmental concerns at the forefront and regulations in place, manufacturers are compelled to weave sustainable practices into the very fabric of their operations. This shift is not merely about compliance; it’s about securing a competitive edge and ensuring viability in a market that increasingly values environmentally conscious practices. 

Enter universal automation — a transformative approach that revolutionises the integration of digital technologies in manufacturing. This strategy employs a modular, plug-and-produce software ecosystem, reminiscent of an app store for industrial applications, which significantly simplifies the adoption of the best available solutions. This not only enhances operational flexibility but also reduces overhead costs, positioning universal automation as a key enabler in the digital transformation of manufacturing. 

Overcoming Digital Transformation Challenges 

Universal automation simplifies the integration of new technologies into existing systems, offering a seamless approach that allows manufacturers to enhance their operational frameworks without the need for a full-scale overhaul. This streamlined integration preserves existing investments while accelerating the adoption of innovative practices. 

A key component of this strategy is the decoupling of automation software from hardware, as exemplified by the adoption of the IEC 61499 standard. This standard introduces an open, event-driven architecture for distributed control systems, enabling seamless integration across diverse equipment from various vendors. 

Platforms like Schneider Electric’s EcoStruxureTM Automation Expert, which are built on this standard, represent the first brand-agnostic software solutions. They facilitate digitalisation while minimising costs and operational disruptions. Developed Schneider Electric and supported by UniversalAutomation.org, an independent, non-for-profit association, the shared runtime execution engine based on the IEC 61499 standard. 

By embracing this software-defined approach, the industrial sector can overcome the limitations of traditional, closed automation systems. This shift fosters greater adaptability, allowing companies to innovate and evolve more rapidly in an increasingly interconnected and dynamic global environment. 

The scalability and flexibility inherent in universal automation solutions are also vital for manufacturers aiming to grow and adapt over time. These solutions can be tailored to expand and evolve in tandem with a company’s changing needs, offering a durable advantage in a rapidly advancing technological environment. 

Universal automation also directly addresses the prevalent skills gap in the industry. By introducing user-friendly interfaces and streamlined processes, these systems reduce the reliance on highly specialised training, allowing existing employees to upskill and adapt to new technologies more effectively. 

Driving Sustainability Through Universal Automation

Driving sustainability through universal automation is one of its standout benefits, particularly its potential to significantly enhance energy efficiency. By optimising the operational dynamics of machines and systems, universal automation ensures that energy consumption is minimised, reducing the environmental footprint associated with manufacturing processes. 

Beyond energy management, universal automation excels in resource management. It enables precise control and monitoring of material use, promoting the efficient utilisation of resources and minimising waste production. This precision not only helps conserve valuable materials but also leads to cost savings, creating a dual advantage for manufacturers committed to sustainable practices. 

Moreover, the integration of universal automation generates a vast pool of data from daily operations. This wealth of information provides deep insights into every aspect of the manufacturing process, enabling manufacturers to make more informed decisions. By analysing this data, manufacturers can refine their energy usage, optimise material consumption and improve waste management practices. 

As Malaysia continues its digital transformation journey, the integration of universal automation into manufacturing practices is becoming increasingly crucial. This technological integration, coupled with a robust emphasis on sustainability, is setting the stage for businesses to not only meet but exceed industry standards. 

Universal automation is not about replacing the human workforce but enhancing it, fostering environment where technology and human ingenuity coexist to propel the manufacturing sector towards a more efficient, sustainable and innovative future. 

Schneider Electric champions this vision with a comprehensive suite of industrial automation solutions, including advanced Programmable Logic Controllers, Variable Speed Drives, Signals and Relays, and cutting-edge software from AVEVA. These tools are designed to enhance operational efficiency and adaptability, empowering industries to excel in the evolving business landscape. 

• Ng Wei Jie is Schneider Electric Malaysia business VP of industrial and process automation.

Source: The Malaysian Reserve

Universal automation to power Malaysia’s digital manufacturing future

In alignment with Malaysia’s National Semiconductor Strategy, Micron Technology Inc is enhancing its role as a leading provider of semiconductor assembly and testing, contributing to both the local economy and the development of high-tech skills in the country.

In an exclusive interview with Bernama, Micron senior director of global human resources operations Moorthy Murugaiah said the US chip maker’s ongoing investment in Malaysia goes beyond its manufacturing capabilities and the company is committed to playing a pivotal role in nurturing local talent, particularly in advanced packaging and high-tech semiconductor back-end processes.

“As part of its strategy, Micron is focused on increasing the skill levels of Malaysian workers, offering opportunities for upskilling in complex, high-precision semiconductor operations; and since we started operations in Penang, our contribution has been clear not just in terms of products, but in fostering a skilled workforce capable of managing advanced semiconductor technologies.

“As talent mobility increases globally, it’s important for Micron to attract, retain, and develop local talent, which in turn strengthens Malaysia’s position in the global semiconductor supply chain,” he said.

He said Micron’s continued presence and investment in talent development are expected to have a lasting impact on the local ecosystem, providing a skilled workforce that will help drive Malaysia’s growth as a global semiconductor hub.

In addition to its operations in Penang, Moorthy noted, Micron’s broader strategy involves contributing to the advancement of Malaysia’s semiconductor sector by increasing the complexity of the products being manufactured and this shift will not only create high-value jobs but also foster innovation, positioning the country as a leader in the high-tech manufacturing sector.

Therefore, he said, the company’s investment in talent development is key to its strategy and Micron is particularly focused on attracting fresh talent from universities, with nearly 80% to 85% of its new hires being recent graduates.

“To ensure these new employees thrive, Micron invests heavily in structured development programmes, preparing them to take on key roles in the company’s operations. For existing employees, Micron has developed a range of upskilling programmes, in partnership with local and government agencies, to help them stay competitive in the rapidly evolving semiconductor industry,” he said.

Moorthy pointed out that this focus on talent development and continuous learning is set to make Micron’s Penang operations a cornerstone of the company’s global network, as it looks to foster a skilled workforce capable of driving the next generation of semiconductor advancements in Malaysia.

Meanwhile, he said, in a concerted effort to address the growing demand for technical talent in the region, Micron has teamed up with Penang Science Cluster to boost science, technology, engineering, and mathematics (STEM) education from the ground up.

He said this collaboration, which began in 2019, aims to ignite interest in STEM fields among students and build a robust pipeline of skilled workers to meet the needs of both new and expanding businesses in Penang.

Source: Bernama

Micron nurtures talent in Malaysia’s semiconductor ecosystem

Electric vehicles (EVs) should be seen as a crucial step in Malaysia’s green transition and a means to reduce national petrol consumption, according to Investment, Trade and Industry Deputy Minister Liew Chin Tong.

Liew emphasised that Malaysia’s focus should extend beyond the current level of petrol usage, highlighting the broader goal of electrifying the automotive sector to cut overall petrol consumption and position Malaysia as a net exporter of petroleum once again.

“There is a great urgency to populate Malaysian roads with EVs to deal with the various challenges we face, namely reducing the fiscal burden of petrol subsidies, re-establishing Malaysia as a net exporter of petroleum and building a more climate-friendly nation.

“For Malaysia to achieve energy security, we will have to restore Malaysia as a net exporter of petroleum. In 2022, Malaysia imported US$12.2 billion of crude petroleum,” he said during the launch of Chery Malaysia’s OMODA E5, its first locally assembled vehicle here, today.

Liew said that in 2022 and 2023, the nation’s total amount of fuel subsidy (RON95, diesel and liquefied natural gas) stood at about RM50 billion, about one-eighth of the national budget.

He added that as of Sept 30 this year, there are 32,543 registered Battery Electric Vehicles (BEVs) on Malaysian roads, 98 per cent of which were imported as Completely Built-Up (CBU) units.

However, EV adoption in Malaysia lags behind neighbouring countries with BEVs representing just 1.2 per cent of total vehicle sales in 2023, while EVs count for 12 per cent of vehicles in Thailand, Vietnam (15 per cent), and Singapore (18 per cent).

“In 2023, Malaysia sold 799,731 cars, of which only 1.2 per cent were BEVs (10,159 units). Indonesia’s share of EV sales in 2023 was also at 1.2 per cent.

“At 1.2 per cent in 2023, and 2.6 per cent of total industry volume (TIV) in the first half of 2024, Malaysia is still quite far from the 20 per cent target for 2030.

“If we get our act together, Malaysia can also see the exponential growth of EVs on our roads in the next five years, reaching the target of EVs forming 20 per cent of TIV in 2030,” he said.

Meanwhile, Chery Auto Malaysia president Leo Chen noted that the launch of OMODA E5 Completely Knocked Down (CKD) units demonstrates Chery’s commitment to improving local manufacturing capabilities, promoting Malaysia’s industrial growth, and contributing to the country’s transition to a sustainable, electrified automotive future.

“By assembling our cars locally, it not only allows us to provide more competitive pricing but also signifies Chery’s long-term commitment in Malaysia, fostering job creation and skill development within the local workforce,” he said.

Chen added that the move also is in line with the government’s policy of localisation compliance and supports Malaysia’s ambition to become a regional hub for EVs. 

Source: Bernama

EVs the way forward to green transition, reduces petrol dependence

The Penang government is dedicated to establishing a foundation rooted in technological
excellence and industrial expertise, positioning itself as a leader in hightech manufacturing and a key player in the global supply chain.

Penang Deputy Chief Minister II Jagdeep Singh Deo said the state’s focus is on creating an ecosystem that supports the entire innovation journey – from university research through to commercialisation and market entry.

“Recognised as Malaysia’s Silicon Valley, Penang’s strength provides a powerful platform for advancing
technology and developing human capital,” he said.

The State Human Capital Development, Science, and Technology Committee chairman emphasised that initiatives like Universiti Sains Malaysia (USM)’s INNOZILLA 2024 align with Penang’s broader vision by nurturing future talents and spurring innovation across various sectors.

“By integrating INNOZILLA into this vision, we reinforce our commitment to supporting industries, empowering youth, and sustaining Penang’s competitive edge,” he said during the launch of USM INNOZILLA 2024 at Dewan Utama Pelajar, USM, yesterday.

Jagdeep said Penang is well positioned to attract cutting-edge technology and high-value investments, particularly as a hub for semiconductor and electronics industries, adding that Penang’s strengths make it an ideal location for transforming innovative ideas into practical applications that can serve global markets.

USM INNOZILLA 2024, which runs until today, is a dynamic innovation exhibition and competition aimed at advancing the United Nations Sustainable Development Goals.

The event features 188 projects (143 physical and 45 virtual) from schools, colleges, universities, and startups across Penang and several other Malaysian states, as well as participants from Indonesia and
Singapore.

The event has also attracted over 30 industry players and government agencies, showcasing their support in helping academia and innovators transform their inventions into market-ready products.

Source: Bernama

Penang remains focused on maintaining tech, industrial excellence

PLANS are afoot by SIRIM National Precision Tooling (NPT) for the establishment of a Centre of Excellence (COE) to cater for bumiputra-owned industries that utilise tools, dies and moulds (TDM).

With this centre, these companies in the TDM segment can have ready access to a Smart Factory that employs Industry 4.0 technologies.

It would serve as a hub of innovation, offering a scalable and adaptable environment where small and medium enterprises (SMEs), industry leaders and even academic institutions could collaborate seamlessly under one roof.

Recent developments with more modern manufacturing machines such as 3D printers would allow companies to combine such resources and utilise smart manufacturing technologies like the Internet of Things, artificial intelligence (AI) and machine learning to improve their manufacturing processes.

It would also be possible for them to monitor production in real-time, predict maintenance needs and optimise resource use with the use of these latest factory technologies.

These plans follow the success of the TDM 2.0 Project which saw selected beneficiary bumiputra-owned companies undergo capability developments under SIRIM NPT’s Coaching and Certification Building Program, Equipment Acquisition Program and Design Capability Development Program.

“Initially we started with the automotive sector, but now we are expanding it to cover three other industries – aerospace, medical devices and rail.

“So far, NPT has helped more than 40 companies – mainly SMEs from these four sectors – by providing access to modern equipments or machine tools such as the Computer Numerical Control (CNC) machine, which is crucial in the TDM sector,” NPT’s chief executive officer Ts. Mohd Fauzi says.

The planned COE is to be equipped with modern facilities which can communicate over the Internet cloud for product development.

“This serves as a heart for innovation, where the industry can collaborate seamlessly through a digital platform – the design can be done elsewhere and be manufactured here, for example.

“It will also be a centre for learning, especially for younger talents, to acquire knowledge and new technologies in the various industries,” Ts. Mohd Fauzi says.

SIRIM NPT also highlights its aim to develop 1,000 high-skilled talents in the TDM sector within five years.

“Let’s say there are 100 companies and each one develops two talents per year – in five years this will be 10. So from 100 companies, this will amount to 1,000 talents. The plan is for NPT to subsidise half of their salaries during the one-year period,” Ts. Mohd Fauzi says.

He notes that companies which hire talents from Technical and Vocational Education and Training (TVET) centres may find this useful.

“With this type of training, these are considered high-value added kind of jobs. This would also help to attract younger talents to the industry to ensure its sustainability moving forward,” he adds.

Ts. Mohd Fauzi hopes these initiatives can start in the year 2026.

“This is planned under the 13th Malaysia Plan. We have grown from 15 companies when we started this under TDM 1.0.

“And these latest plans will see NPT aim for 100 companies,” he adds.

Source: The Star

Enhancing skills in manufacturing

The government plans to leverage Sabah’s local strengths and capabilities to attract investors in the high-tech manufacturing industry, with a focus on downstream activities.

Deputy minister of Investment, Trade and Industry Liew Chin Tong said that this aligns with Mission 4 of the New Industrial Master Plan (NIMP) 2030, which emphasises harmonising development plans between the federal and state governments.

Liew highlighted several potential downstream industrial activities in the Palm Oil Industrial Cluster (POIC) in Lahad Datu, covering sectors such as palm oil, biomass, and petrochemicals.

“POIC Lahad Datu has the potential to become a hub for palm oil-based products like oleochemicals, nutraceuticals, plastics, biofuels, and cosmetics. It also has potential for biomass-based products like biochemicals, biofuels, bioplastics, electricity, fuels, paper, pulp, and fibre,” he said during the question-and-answer session in Dewan Rakyat today.

Liew also noted that POIC Lahad Datu’s integrated port facilities including liquid, dry, and container terminals, support the handling of various types of cargo in the petrochemical industry cargo, such
as oil refineries, bulk storage, and product distribution.

He was responding to Riduan Rubin (Independent-Tenom), who inquired about the Ministry of Investment, Trade and Industry strategic framework to attract investors to Sabah’s high-tech
manufacturing sector.

The deputy minister pointed out that the initiative could create job opportunities for Sabah’s Technical and Vocational Education and Training (TVET) graduates, helping to strengthen local economic development.

Liew also said POIC Lahad Datu has the potential to become a logistics and transhipment hub, with facilities including a free trade zone, bonded warehouses, cold storage, food processing, oil and
gas storage, bunkering and bulking, and a supply base.

In the halal industry, POIC Lahad Datu has been recognised as the first industrial park with HALMAS status in Sabah, making it attractive to halal-based industries such as food, pharmaceuticals, and cosmetics.

“Its location near the container port also facilitates import and export activities,” he said.

According to Liew NIMP 2030 also emphasises skill development and job creation, targeting 3.3 million jobs in the sector, with three million aimed at high-skilled and semi-skilled jobs.

To support TVET graduates in Sabah, the government is taking steps to develop talent in the solar industry, with companies like SBH Kibing Solar New Materials (M) Sdn Bhd involved, he said.

“The Kota Kinabalu Industrial Training Institute (ILP) has conducted internal interviews to match skilled labour with job opportunities in the related industrial sectors.

“ILP Kota Kinabalu has also been designated as a talent development centre in solar technology, while ILP Sandakan focuses on talent for the electric vehicle and hydrogen industries,” he added.

Source: Bernama

Government to leverage Sabah’s strengths, capabilities to attract high-tech manufacturing investors – – MITI

Prime Minister Datuk Seri Anwar Ibrahim has extended an invitation to Jiangsu Longda Superalloy Co Ltd to expand its business into Malaysia.

Based in China’s Wuxi, Jiangsu Province, the company is a leading manufacturer specialising in superalloys, which are essential for high-demand industries such as aerospace, gas turbines, and petrochemicals.

Anwar had extended the invitation following his meeting with the company’s founder, Pu Yi Long.

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

“I am impressed by the company’s work in producing high-temperature alloys for major aerospace players,” Anwar said after the 30-minute meeting.

The Prime Minister said Jiangsu Longda’s presence in Malaysia will strengthen the nation’s position as a key player in the global aerospace industry, boosting Malaysia’s local supply chain and creating high-skilled jobs.

Anwar is currently on a working visit to China from Nov 4 to 7 at the invitation of his Chinese counterpart Li Qiang to attend the 7th China International Import Expo (7th CIIE).

Aside from Tengku Zafrul, members of his delegation include Foreign Minister Datuk Seri Mohamad Hasan and Human Resources Minister Steven Sim Chee Keong.

Source: Bernama

Anwar invites Jiangsu Longda to expand business into Malaysia

The impending rise in U.S. tariffs on China-made gloves presents an opportunity for Malaysian manufacturers to ramp up production. 

However, Tradeview Capital fund manager Neoh Jia Man anticipates that the glove sector’s overall performance will likely remain subdued in the coming months, with variations among individual companies.

He said with the planned United States (US) import tariff hike on Chinese gloves taking effect in January 2025, Chinese manufacturers are likely to ramp up their marketing efforts in non-U.S. markets such as the European Union. 

“This shift creates potential opportunities for local players that can expand their exports to the US, positioning them to benefit from increased demand in this key market. 

“On the other hand, players who are unable to take advantage of higher U.S. demand might see a net negative impact from downward pressure on glove prices in non-US markets,” he told Business Times. 

Neoh said volume increases may vary across local players, depending on differences in production capacity and pricing power. 

“However, with no Malaysian firms currently facing export restrictions to the US, most players are likely to experience a boost in US-bound shipments, though this may come at the expense of reduced sales in other regions,” he added.

Hartalega Holdings Bhd expects its sales volume of generic medical nitrile rubber gloves to rise from 1.9-2.0 billion pieces per month in the second quarter of 2024 (Q2 2024) to 2.1-2.2 billion pieces per month in Q3 2024. 

This volume is anticipated to increase further in Q4 2024, reaching 2.3-2.4 billion pieces per month, primarily due to trade diversion from U.S. customers spurred by tariff changes.

Hong Leong Investment Bank Bhd (HLIB Research) said that Hartalega has an edge over other local manufacturers due to its stable business relationship with the U.S. 

The bank also noted that Hartalega has not been subjected to Withhold Release Orders (WRO) by U.S. Customs and Border Protection (CBP).

“Historically, Hartalega’s revenue exposure to the US was 40-50 per cent, but it expects this to increase to 60-70 per cent from January 25 onwards. 

“We view the increasing US exposure positively given the more favourable pricing vs non-US customers,” it said in a note. 

The research firm observed that Hartalega has seen a resurgence in the “US premium” for October and November orders, with a slight premium of under US$ 1 per 1,000 pieces over European orders. 

Hartalega expects this premium to become more pronounced in December ahead of a US tariff increase on Chinese imports, rising from 7.5 per cent to 50 per cent in January 2025, which is likely to reduce the cost-effectiveness for Chinese producers.

“Consequently, Hartalega is quoting its December orders at US$22 to US$23 per 1000 pieces (versus US$24-26 per 1000 pieces in the pre-pandemic era) for its US customers, subject to acceptance. 

“This price point implies a premium of US$3 to US$4 per 1000 pieces compared to its ex-USA customers in order to fully pass on the recent forex impact faced and potentially expand its margins.

For non-US markets, Hartalega has maintained competitive pricing at US$18 to US$19 per 1,000 pieces since May 2024, as Chinese manufacturers continue to offer lower prices at US$ 16 to US$17 per 1,000 pieces.

Before the pandemic, Hartalega was able to charge U.S. customers a premium due to stricter acceptable quality levels (AQL). 

However, this premium plummeted in January 2023 due to intensified regional competition from Malaysia, Thailand, and China.

HLIB Research maintained its earnings forecasts for Hartalega for financial year 2025 (FY25)-FY27 as it believes the expected upcoming weaker Q2FY25 financial performance will be offset by a stronger Q4FY25. 

It also maintained “Buy” on the stock with an unchanged target price of RM3.62.

Source: NST

‘Good opportunity to ramp up production’

The government has initiated an administrative review of anti-dumping duties with regard to imports of cold rolled stainless steel in coils, sheets or any other form from China, Indonesia, South Korea, Taiwan, Thailand and Vietnam, said the Ministry of Investment, Trade and Industry (Miti).

The ministry said in a statement that the initiation of the administrative review is based on information received by the government and pursuant to Paragraph 28(1)(c) and (f) of the Countervailing and Anti-Dumping Duties Act 1993 (Act 504), and Regulation 34 of the Countervailing and Anti-Dumping Duties Regulations 1994.

“Interested parties who wish to participate in this administrative review may provide their views in writing and additional supporting evidence to Miti by Nov 15, 2024.

“In the event the interested parties do not provide the necessary information, or the information and views are not received in an adequate form within the specified time limit, the government may make its determination based on the available facts,” it said.

Source: Bernama

MITI initiates administrative review of anti-dumping duty for stainless steel imports

KULIM Hi-Tech Park (KHTP) will double its total area to 12,000 acres, from 5,557 acres currently, with the development of a new industrial park — KHTP 2.

Currently, all 2,161 acres of the industrial land in KHTP, comprising Industrial Zone Phase 1, 2, 3 and 4 are fully leased. Land clearing and infrastructure development of the next phase — Industrial Zone Phase 4A, measuring 247 acres with 10 industrial lots — are being carried out.

“The deals [for the Industrial Zone 4A lots] are expected to close by 2025, and taking into account the period for construction by the investors, the manufacturing operations may commence as early as year 2026,” says Kulim Technology Park Corp Sdn Bhd (KTPC) group CEO Datuk Mohd Sahil Zabidi.

KTPC is the developer and manager of KHTP and is wholly-owned by the Kedah State Development Corporation.

The 2,161 acres exclude non-industrial components allocated for recreational, residential, research  and development training, and public institutions.

In March this year, The Edge reported that Boustead Plantations Bhd, a wholly-owned subsidiary of Lembaga Tabung Angkatan Tentera-controlled Boustead Holdings Bhd, is in talks to sell 1,200 acres of plantation land in Kulim to KTPC at RM7.50 to RM7.80 per sq ft, bringing the total price to about RM400 million for the 1,200 acres.

On the progress of the land acquisition, Mohd Sahil says negotiations are ongoing, while the business model and development concept for the new area being worked on. “We are bound by confidentiality on the arrangement. However, we are currently exploring a few other locations for our expansion and are not limited to the KHTP-adjacent area.”

In 2016, it was reported that the Kedah government had identified 2,800ha for KHTP 2, which would complement KHTP that was reaching its maximum capacity.

KHTP’s appetite for land now stands out in contrast to when it was established in 1996, with Intel Corp as its first tenant. Approved investments going into KHTP never surpassed RM5 billion annually until 2021 with multi-year investments by China’s Risen Solar Energy Co Ltd (totalling RM42.2 billion) and AT&S Austria Technologie & Systemtechnik AG (RM10.8 billion).

“We used to get maybe two to three investors each year. But in the last five years, we have had at least seven or eight each year,” says Mohd Sahil.

Following the extraordinary investment activity, to the tune of RM65.5 billion in 2021, KHTP’s approved investments for 2022 and 2023 amounted to RM10.8 billion and RM20.1 billion respectively. For 1H2024, it attracted approved investments of RM30.3 billion.

Like its more established neighbour Penang, KHTP has benefited from the diversion of trade due to geopolitics and the China+1 strategy.

However, Mohd Sahil adds that there is more to it than geopolitics and that there are also those who are in Kulim because of its proximity to their customers. “Some are here because they want to expand their products to Asian countries or they want to have another production facility outside China. We don’t have many companies that want to be here just because they want to relocate from China.

“But there are also those who … supply to other multinational companies (MNCs) that are already here in Malaysia or in Singapore. So for these companies, the secure business is already here.”

Mohd Sahil shares that the first Chinese investor in KHTP was the Jinjang Group back in 2018 through G-Crystal — a glass panel manufacturing company that counts US-based First Solar Inc as its customer.

While KHTP is getting its share of attention from global investors today, Mohd Sahil says the industrial park — the brainchild of the former prime minister Tun Dr Mahathir Mohamad as a means to develop Kedah — cannot yet match Penang’s status as the Silicon Valley of the East.

“It is fair to say that Penang is a preferred destination compared with KHTP as the former shares certain characteristics with the development of Silicon Valley. This may be due to the historical fact that Penang’s first industrial master plan was established in 1970, whereas KHTP only launched its plan in 1990.

“Penang’s manufacturing hub was established much earlier, followed by its continuous development over time, making Penang recognised as the Silicon Valley of Southeast Asia. The proximity between Penang and KHTP creates a good ecosystem where the strength of each area contributes to the overall growth and success of the industry on a national scale,” he says, adding that KHTP does not see Penang as a competitor.

KTPC is also thinking beyond the expansion of the industrial zones with plans to strengthen the surrounding ecosystem to further facilitate the growth of KHTP. Within the park, it has centralised labour quarters for the local workers at KHTP and is collaborating with housing developers for residential development. It is also working on bringing in a well-known hotel brand to accommodate the needs of the investor flow to the park.

KTPC’s role as manager

KTPC’s role as a manager and developer of the industrial park covers a wide range of activities. It not only develops the industrial land and infrastructure, and promotes the 12 selected industries for the park, it also manages investment properties within KHTP and provides advisory services for investors looking to set up a plant there and assists with project management.

Mohd Sahil describes KTPC as a “one-stop centre” for investors, especially those new to investing in Malaysia. The industrial park manager takes pains to ensure investors’ experience in setting up their plants in KHTP is a smooth one.

“We assist the investor with the incorporation of the company, getting the necessary licences, state [government’s] consent and even opening a bank account. We take around six months to get all these done, when in other states it could take up to 12 months.

“We don’t want investors to just make announcements of the investments that they are doing, we want them to get started as soon as possible to create jobs. So, the sooner they plan and start operations, the better for us,” he says.

As manager of the park, KTPC also takes on the responsibility of seeking new investors for projects that hit speed bumps and cease operations before their 60-year land lease is up.

For example, Aspen Group’s glove manufacturing plant — a joint venture with CMY Capital Sdn Bhd, an investment holding company founded by businessman Tan Sri Chua Ma Yu — that was set up in 2020. It ceased operations within two years due to falling average selling prices of rubber gloves, stiff competition and high inventories.

“We found an investor from Germany (Schott Glass AG) to take over from them [Aspen]. Schott Glass had been in Perai, Penang, for over 50 years and they wanted to expand. We managed to convince them to take over [the leased land],” shares Mohd Sahil.

As for the recent case of ams Osram AG’s new micro LED plant, where the Austrian-German company put the brakes on plans to operate a mirco LED plant at KHTP due to the cancellation of the plant’s micro LEDs by a key customer, Mohd Sahil says KTPC “is working towards assisting them”.

It has been reported that the company is seeking an investor to take over the lease of the micro LED plant. The plant, part of Osram’s US$1 billion multi-year investment, currently lies idle.

It is worth noting that Permodalan Nasional Bhd, the Employees Provident Fund and Kumpulan Wang Persaraan came into the picture when they signed a 10-year sale and leaseback agreement worth RM2.03 billion with Osram.

“We don’t want land to be left idle. If any of our investors have problems, what we will do is to convince them to allow us to get other investors to come in or give back the land to us,” says Mohd Sahil on KTPC’s business philosophy.

While KTPC has ambitious plans for KHTP, funding the planned expansion is a major challenge, hinging on KTPC’s ability to secure adequate funds from the federal government.

“As KHTP seeks to enhance its infrastructure and attract high-tech industries, insufficient financial support can limit its growth and competitiveness in the market,” says Mohd Sahil.

“The rapid development of KHTP also necessitates improvements in public utilities, such as healthcare and education. Speedy allocations and implementation [are needed] to ensure it is in line with rapid development of KHTP to ensure that essential amenities keep pace with industrial growth,” he adds.

The good news for KTPC is that under Budget 2025, Prime Minister Datuk Seri Anwar Ibrahim has proposed the allocation of funds for the expansion of Kulim Hi-Tech Park. The federal government is also proposing to allocate funds for the construction of an auxiliary building at the Kulim Hospital.

The amounts involved have yet to be disclosed. 

Source: The Edge Malaysia

Kulim Hi-Tech Park eyes expansion, doubling its area to 12,000 acres

The Investment, Trade, and Industry Ministry (Miti) will help Malaysian solar manufacturers and related companies affected by the United States (US) tariff hike on solar exports to get more information on the move by Washington.

Its minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the higher tariff has affected many production lines of these solar companies not only in Malaysia but also manufacturers in Thailand, Cambodia, and Vietnam.

“So we are now helping the companies by getting more information and then engaging the United States Department of Commerce to see how we can support these companies,” he told the press after a briefing on Malaysia’s chairmanship of Asean (Economic Pillar) at the ministry today.

Previously, it was reported that the US Department of Commerce increased duties on solar equipment exported by Cambodia, Malaysia, Thailand, and Vietnam, following its initial findings of unfair government subsidies used to produce solar equipment sold by companies in these four countries.

Washington plans to increase US import tariffs on Chinese solar cells and panels from 25 per cent to 50 per cent among a host of other products, over claims alleging unfair Chinese business practices.

Source: Bernama

Miti to continue engaging with US authorities on solar export tariff hikes

Chenbro Micom Co Ltd has chosen Malaysia as its first investment in Southeast Asia.

The company, via wholly-owned Chenbro Malaysia Sdn Bhd, today signed an agreement with Senai Airport City Sdn Bhd to buy 6.09 hectares of industrial land at Senai Airport City Free Industrial Zone. 

Chenbro manufactures integrated solutions for rackmount and tower servers and personal computer chassis.

“The establishment of Chenbro is in tandem with its strategy to further enhance this current industry cluster in Senai Airport City,” Senai Airport chairman Tan Sri Che Khalib Mohamad Noh said in a statement. 

Chenbro chairman Maggi Chen said it will actively continue to create global localised production with lean technological capabilities and low-carbon green facilities for the rising demand of the Artificial Intelligence (AI) industry.

“I am grateful to the government’s support and Senai Airport City’s professionalism with its well-planned industrial park, ready infrastructure and our partners and stakeholders,” she said.

To date, Senai Airport City has developed Phase 1 and 2, totalling 607,03 hectares of industrial development.

It is ready to launch its Phase 3 of  141 hectares, providing ready infrastructure for more quality investments in 2025 with final stage negotiations with numerous high-value foreign direct investment.

Source: The Star

Chenbro picks Senai Airport industrial zone as maiden investment in Southeast Asia

Suling Hill Development Sdn Bhd, a joint-venture between AME Elite Consortium Bhd and Majestic Gen Sdn Bhd, officially launched Northern TechValley @ BKE in Seberang Jaya, Penang on Monday. 

Spanning 176 acres, the RM1.3 billion industrial park will be equipped with high-speed fibre-optic internet, recreational areas such as sports hall and a managed workers’ accommodation, according to a press statement on Monday.

The development will also be designed with sustainable features such as the usage of reflective glass that minimises heat transmissions, translucent sheets for natural lighting and solar photovoltaic panels for energy efficiency.

In the press statement, Suling Hill Development director Dylan Tan Teck Eng said: “Northern TechValley @ BKE reflects Penang’s vision to lead in the global technology sector. By leveraging the strengths of AME Elite and Majestic Gen, we are establishing a vibrant industrial park that supports the growth of advanced manufacturing and high-tech industries. As AME Elite’s first industrial park outside Johor, Northern TechValley marks a significant milestone in its expansion strategy. We believe this project will drive innovation and contribute to Penang’s reputation as a global hub for advanced industries.”

Tan added that the Suling Hill Development aims to attract leading companies from various sectors of semiconductors, electronics, medical technology and logistics into Northern TechValley @ BKE.

Meanwhile, Suling Hill Development director Ta Wee Dher said: “This project presents a unique opportunity to enhance Penang’s industrial landscape by integrating Majestic Gen’s commercial development expertise with AME Elite’s strengths in industrial space solutions. By creating a conducive environment that meets the needs of global and domestic companies, we aim to generate job opportunities and strengthen the local supply chain. This initiative is essential for enhancing Penang’s investment appeal and positioning the state as a prime destination for high-quality investments and innovation in the region.”

Northern TechValley @ BKE is expected to be completed in 2029.

Source: The Edge Malaysia

Suling Hill Development launches RM1.3 bil Northern TechValley @ BKE industrial park in Penang

Petronas Chemicals Group Bhd has won the silver award in the industrial products and services category at The Edge Malaysia ESG Awards 2024.

One of the company’s most significant achievements over the past year is the progress made on the advanced chemical recycling plant in Pengerang, Johor. The plant, when operational, will transform end-of-life plastics into pyrolysis oil, which can be used as chemical feedstock for producing sustainable plastics, reducing the dependency on virgin materials.

“Guided by our New Plastics Economy framework, the construction of the advanced chemical recycling plant is part of our conscious effort to drive the transition from a linear to circular waste plastic management process,” says Mazuin Ismail, managing director and CEO of PetChem.

“We are also driving innovation across the plastics value chain in Malaysia, while creating opportunities for all parties through collaborations with different players, from waste collectors to manufacturers, to jointly contribute to the circular plastics economy.”

Despite its successes, PetChem has faced significant challenges in maintaining its ESG performance in the past year, particularly in the area of greenhouse gas (GHG) emissions.

“The reduction of GHG emissions is a key priority for PetChem and its progress is guided by our Net Zero Carbon Emissions 2050 Pathway. Last year, our plant operations encountered reliability challenges that led to a rise in GHG emissions from flaring, which we have addressed through enhanced operational control processes and by implementing programmes to improve plant reliability,” says Mazuin.

Alongside these operational movements, PetChem continues to explore energy efficiency measures and low-carbon technologies within its assets. These efforts include a shift towards integrating more renewable energy into the mix, as well as improving energy efficiency across all operations.

“In 2023, we achieved an overall GHG emission reduction of more than 146,000 tonnes carbon dioxide equivalent through flare reduction, efficiency improvement measures and purchase of renewable energy,” he says.

Source: The Edge Malaysia

PetChem drives innovations in plastics circularity

Amphenol DC Electronics Malaysia Sdn Bhd, a global provider of engineering, design, and manufacturing services, has opened its new 70,000 square feet (sq ft) facility in Penang, with the potential for an additional 60,000 sq ft in the second phase.

In a statement today, the Malaysian Investment Development Authority (MIDA) said this expansion significantly increases Amphenol’s footprint in the region to over 130,000 sq ft, demonstrating its commitment to growth and innovation in Malaysia while greatly enhancing its capacity and capabilities.

MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the company’s decision to establish a presence in the country underscores Malaysia’s strong reputation in the global electrical and electronics industry.

‘I extend my warmest congratulations to Amphenol on the launch of their new manufacturing facility in Malaysia.

‘We are committed to attracting high-tech, high-value investments that drive innovation and create skilled job opportunities for
Malaysians,’ he said.

Meanwhile, Amphenol plant director Chan Chee Wey said the new facility will enable the company to meet growing demand, accelerate innovation, and further contribute to Malaysia’s economy.

According to the statement, the new facility, which is equipped for cable assembly and box build, will serve as a major hub for manufacturing, creating 300 jobs and fostering local talent in Malaysia’s semiconductor industry.

This state-of-the-art facility underscores Amphenol’s commitment to innovation, sustainability, and regional growth, it added.

Source: The Star

Amphenol Opens New Facility In Penang

Competition in the automotive sector is expected to heat up as Malaysia aims to raise electric vehicle (EV) adoption to 15% of total industry volume (TIV) by 2030 compared with 5% as of September 2024.

According to Affin Hwang Investment Bank Research (Affin Hwang Research), advancements in battery technology and safety, advanced EV safety features and transition to a low-carbon economy have resulted in greater motivation to adopt EVS.

By 2025, it expects EV adoption to rise to 80% compared with the current adoption of 5% or 33,319 units of TIV as at September this year.

“Domestically, we expect heightened competition in the EV space, with lower prices in the coming years driven by an influx of new brands and aggressive competition from existing players,” the research house said in a report after hosting the Affin EV Day event recently. There are challenges ahead though. The research house said that to-date, general insurers have not been able to accurately establish the cost of the EV battery because the EV industry is being heavily subsidised.

The battery, which is the most critical component of an EV, is also one of the factors determining risk assessment and structuring of an EV policy.

The risk assessment is being made more complex as even minor damage to an EV battery pack may require a full replacement.

“As such, EV insurance premiums are inevitably priced 20% to 30% higher as the industry continues to gather individual driving insights and behaviour, as well as statistics on accidents,” research house said.

It added solid state batteries could be a game changer with positive environmental, social, and governance impact.

Most EVS today use lithium-ion batteries or similar technologies, which feature a liquid electrolyte.

Solid-state batteries, as their name implies, replaces this with a solid electrolyte.

“This shift is expected to bring several benefits, including higher power density, improved safety and lower overall costs for batteries, while significantly reducing environmental impact and thereby lowering carbon footprints.”

In the auto sector, Affin Hwang Research said is it more positive on MBM Resources Bhd due to the group’s diverse EV dealerships and being poised to benefit from its associate, Perusahaan Otomobil Kedua Sdn Bhd (Perodua) as a market leader.

“The spotlight on EVS is expected to grow, especially as traditional original equipment manufacturers face challenges from the upcoming subsidy rationalisation for RON95 petrol that may negatively impact internal combustion engine vehicles.

“Perodua’s introduction of its first EV priced under RM100,000 is poised to be a game changer, targeting first-time EV users in the B40 and M40 demographic segments,” said the research house.

It added that ongoing tax exemptions for both completely-built-up and completely-knocked-down EVS, along with the influx of competitive new EV brands in Malaysia, will drive demand.

In the insurance segment, it likes Allianz Malaysia Bhd for its extensive distribution network and high contractual service margin of Rm3.45bil.

Allianz is currently the market leader in Malaysia’s motor insurance market, with a share of 23%.

Source: The Star

EVs set to catalyse local automotive scene

Malaysia is working with China to establish a government-to-government (G2G) mechanism for capacity management and technology sharing within the steel industry.

Deputy Investment, Trade and Industry Minister Liew Chin Tong said the government is also advocating for discussions on the steel industry’s challenges and potential collaboration with China at the Asean level.

“For the iron and steel industry, this means addressing the imbalance between local long product capacity and imported flat product volume. With investments directed towards building up the local capacity in both manufacturing and utilisation of flat products, we hope to see an improvement in this imbalance and increase the economic sustainability of the industry.

“However, we need to be cautious of the emissions that follow – if all the approved steel capacity comes online, the emissions would be equivalent to having six coal-fired power plants, challenging our commitment to achieve net-zero emissions by 2050,“ he said in his speech at the 14th conference of the Malaysian Iron and Steel Industry Federation here today.

Liew said mechanisms need to be put in place to facilitate the iron and steel industry’s green transition.

“This brings us to the introduction of a carbon tax to the industry, which Prime Minister Datuk Seri Anwar Ibrahim announced in his Budget 2025 speech. Once implemented, among others, the carbon tax collected can be utilised to fund the green transition of the iron and steel industry.”

Touching on the global landscape, Liew said the construction steel consumption, especially in China, is on a downward trend. However, the production capacity built over the years remains, resulting in an excess production volume and the subsequent unloading, flooding, and even dumping of steel products in the global market.

The Southeast Asian steel industry is not spared from these challenges, Liew said.

“Not too long ago, the Malaysian discourse was all about worries concerning the European Union’s carbon border adjustment mechanism (CBAM). Very soon, once Malaysia implements our carbon tax, we will need a CBAM of our own to level the playing field and to ensure foreign steel pays Malaysian carbon tax,“ he added.

Touching on improving the governance structure of the iron and steel industry, Liew said various bodies, such as the Malaysian Steel Council and the Malaysian Steel Institute (MSI), must improve to ensure they meet more regularly and receive more robust input from the industry.

“Similarly, the MSI requires a total revamp of its roles to be a credible source of robust policy input,“ Liew said.

He said the government’s ambition is to ensure that the steel industry remains profitable and environmentally resilient.

“We are optimistic that the industry will thrive, driven not only by infrastructure projects but also by the wave of new investments – a second takeoff – with more advanced manufacturing, including aerospace. We believe this second takeoff will benefit everyone, including the iron and steel industry,“ Liew said.

Source: The Sun

Malaysia, China discussing G2G mechanism to support steel industry

The National Semiconductor Strategy (NSS) provides a more balanced approach that focuses on developing local champions to compete globally unlike earlier strategies that prioritised foreign direct investments (FDIs), according to RHB Research.

The firm said Malaysia is now the sixth largest semiconductor exporter globally and the Investment, Trade and Industry Ministry aims to rise to the third or fourth.

The NSS is designed to help achieve this through a three-phase approach such as building on the nation’s existing strong foundation, moving to the frontier and innovating at the frontier to ensure sustained growth.

“Supporting these ambitions are the various incentives introduced, including pioneer status, investment tax allowances, import duty exemptions, and reinvestment allowances,” RHB Research said in a report after hosting an event recently featuring representatives from the ministry, Dagang NeXchange Bhd (DNeX) and Institute of Strategic and International Studies (ISIS).

RHB Research said the ministry has an ambitious RM500 billion investment target with a moving target of five to 10 years.

The focus is not limited to integrated circuit (IC) design but also includes semiconductor manufacturing equipment, advanced packaging, and front-end semiconductor processes.

Investments could also extend to specialty chemicals, equipment and material.

“In terms of fiscal support, RM25 bilion has been allocated for fiscal incentives and development expenditure to support advance packaging centres or facilities,” it added.

RHB Research said ISIS had emphasised the need to reshape the semiconductor value chain amid global tech rivalries and export controls.

To enable Malaysia to move up the value chain, the institute underscores the importance of bridging research and development (R&D) gaps, pooling resources from research institutes, and focusing on talent development.

RHB Research identified three key NSS issues which are supply chain resilience, ensuring cost competitiveness, and sourcing talent.

“To address talent gaps, initiatives such as Collaborative Research in Engineering, Science, and Technology (CREST) were introduced, collaborating with tertiary education institutions to channel resources more effectively.

“There is also a need to create attractive packages to draw talent into the sector, ensuring the industry has the necessary workforce to grow,” it said.

Meanwhile, environmental, social and governance considerations are being addressed through the development of a green framework, with the Kerian Industrial Park serving as a reference.

Source: NST

NSS gives more balanced approach to develop champions on global stage: RHB Research

Budget 2025 has set aside sizeable funds, both fiscal and non-fiscal, towards ensuring the success of the National Semiconductor Strategy (NSS), which is part of the New Industrial Master Plan 2030 (NIMP 2030).

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said that among the initiatives announced in the budget are the RM1 billion sovereign fund for the electrical and electronics sector and high-value activities as well as training funds allocated for several universities.

Apart from that, he said there are initiatives to support mid-tier companies as well as tax incentives for companies in the industry.

“I think we are on track (to achieve the target set in NIMP 2030). You have seen exports continue to grow in these sectors as well.

“And if you look at the just-announced report card yesterday for our NIMP 2030, we should see positive growth at this year-end, and growth in the manufacturing sector has contributed close to a 5% increase to our gross domestic product this year,” he said this during an interview with CNBC Asia Squawk Box on Tuesday.

Tengku Zafrul was commenting on the progress of NSS and NIMP following the Budget 2025 announcement on Friday.

When asked how the new tax will help finance the bigger budget of RM421 billion, he said that apart from the tax on dividends as well as the larger scope of the sales and service tax, emphasis is given on cost discipline, for instance, via the merging of several agencies under the Ministry of Investment, Trade and Industry.

“Yes, I am quite confident that we will meet the budget estimate. We have been meeting our deficit target, for example, and I think we will hopefully achieve it (fiscal target) in 2024 as well,” he said.

The ministry will also continue with initiatives to drive trade and investments to spur the country’s growth, added Tengku Zafrul.

Source: Bernama

Zafrul: Budget 2025 measures show strong support for semiconductor sector

The Investment, Trade and Industry Ministry (Miti) is confident of achieving the first-year targets of the New Industrial Master Plan 2030 (NIMP 2030), having already fulfilled three of the main indicators set, according to its minister Tengku Datuk Seri Zafrul Abdul Aziz.

Following the launch of NIMP 2030 on Sept 1, 2023, the manufacturing sector’s value added to the gross domestic product rose by 4.7%, or RM4.2bil, in the second quarter of 2024 against the same period in 2023 while the number of jobs increased 0.9%, or 200,000, he said.

Meanwhile, the median salary for the sector improved by RM201, or 8.2% year-on-year, in the first quarter of 2024 compared with the same quarter last year.

Under NIMP 2030, Miti targets to hit manufacturing sector value added of RM587.5bil, the creation of 3.3 million job opportunities and an increase in median salary to RM4,510 by 2030.

“Nearly all key performance indicators have been met for 2024.

“There’s still a lot of work to be done, and while we still have five years to go, time is becoming shorter and the economic situation is getting more challenging,” he told the media after presenting the Miti Report for the third quarter of this year yesterday.

Source: Bernama

Manufacturing sector gains from NIMP 2030

The implementation of the Kerian Integrated Green Industrial Park (KIGIP) development is one of the fastest in history, with planning permission approval obtained in less than three months from the launch date.

Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz said that normally, this process takes more than six months.

“The project is on track and is now closely monitored by the Special Task Force led by MITI (investment wing) and Perak’s Economic Planning Unit,” he said when presenting the MITI Report Card for the
third quarter of 2024 here on Monday.

The KIGIP groundbreaking ceremony was officiated by Prime Minister Datuk Seri Anwar Ibrahim in August.

According to Tengku Zafrul, the land study is being carried out by SD Guthrie Bhd for the soil treatment process, which is expected to start in January 2025.

“We are grateful to the Perak government and the relevant ministries for speeding up the process,” he said.

The KIGIP project is implemented in a whole-of-government approach through collaboration and synergy between the federal government, the state government as well as SD Guthrie and Permodalan Nasional Bhd.

Source: Bernama

KIGIP Industrial Park Development Implementation Among The Fastest In History – Tengku Zafrul

The Investment, Trade and Industry Ministry (MITI) is confident of achieving the first-year targets of the New Industrial Master Plan 2030 (NIMP 2030), having already fulfilled three of the main indicators set, according to its minister Tengku Datuk Seri Zafrul Abdul Aziz.

Following the launch of NIMP 2030 on Sept 1, 2023, the manufacturing sector’s value added to the gross domestic product rose by 4.7 per cent, or RM4.2 billion, as of the second quarter of 2024 against the same period in 2023 while the number of jobs increased 0.9 per cent, or 200,000, he said.

Meanwhile, the median salary for the sector improved by RM201, or 8.2 per cent year-on-year (y-o-y), in the first quarter of 2024 compared with the same quarter last year.

Under NIMP 2030, MITI targets to hit manufacturing sector value added of RM587.5 billion, the creation of 3.3 million job opportunities and an increase in median salary to RM4,510 by 2030.

“Nearly all key performance indicators (KPIs) for 2024 have been met. There’s still a lot of work to be done, and while we still have five years to go, time is becoming shorter and the economic situation is getting more challenging,” he told the media after presenting the MITI Report Card for 3Q 2024 today.

Tengku Zafrul said that under Mission 1 (Economic complexity), MITI has achieved commendable progress in efforts to strengthen the country’s position in the global semiconductor landscape through two key action plans that support this mission — creating global integrated circuit (IC) champions from Malaysia and attracting global firms to establish wafer fabrication facilities.

He said that in 3Q, a total of 500 engineers and 557 technical workers have been trained to strengthen the nation’s technical expertise in IC design and semiconductor production.

“A total of 4,673 people have been hired, comprising 1,130 engineers or technical experts. Technical workers made up 97 per cent of the total hired, reflecting a rise in technical talent.

“This initiative has also attracted large investments totalling RM35.6 billion (in 3Q), comprising RM0.97 billion in direct domestic investment and RM34 billion in foreign direct investment,” he said.

Further, he said, Malaysia saw the formation of three local IC design firms, a major step towards building the nation’s capability in this critical sector.

Under the Chemical Industry Roadmap 2030, Malaysia’s chemical industry attracted investments worth RM3.1 billion in the January-June 2024, up more than 82 per cent from RM1.7 billion in the previous year.

In addition, the chemical sector contributed RM55.3 billion to exports from January-September 2024, a growth of 4.3 per cent y-o-y.

Tengku Zafrul also expressed satisfaction with the performance under Mission 2 — national digital transformation for the manufacturing and manufacturing-related services (MRS) sectors that started with the introduction of the Industry4WRD programme in 2018, including initiatives such as the intervention fund.

“Under NIMP 2030, a new, improved initiative is being introduced — Smart Technology Uptake (Smart Tech Up) Programme which will be launched in the fourth quarter (4Q) of 2024, with the main goal of creating 3,000 smart factories by 2030.

“The new Smart Tech Up technology model will replace the Industry4WRD Readiness Assessment model,” he said.

The minister said that of the 406 companies approved via the intervention fund programme to embrace Industry 4.0, the majority are in a good position to fulfil the definition of “smart factory” as outlined in the Smart Tech Up Programme.

On NIMP 2030’s Mission 2 focused on digital investments, he said there is an increasing trend, with more than 64,000 job opportunities created from the RM185 billion of investments approved from 2021 to 2Q 2024.

Mission 3 targeting net-zero carbon emissions is also going well, according to him.

“Perodua’s plan to produce its first commercial electric vehicle by 4Q 2025 is also proceeding smoothly,” he said.

He also noted that the Circular Economy Policy Framework (CEPF) was launched on Sept 26 to drive more efficient manufacturing process towards reducing waste production.

“To tackle the high emissions for sectors that are hard to terminate, MITI has completed the basic pre-feasibility work for two pioneer projects in the steel and cement sectors.

“For carbon capture, utilisation and storage (CCUS), basic pre-feasibility work has been completed with the actual study to start in 4Q this year,” he added.

Source: Bernama

NIMP 2030 succeeds in raising value added, jobs, median salary in manufacturing sector – Tengku Zafrul

The Ministry of Investment, Trade, and Industry (MITI) is confident that it can achieve the primary targets set for the first year of the New Industrial Master Plan (NIMP) 2030, according to Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He noted that this confidence stems from the fact that three key targets have already shown impressive progress.

“Based on NIMP 2030, launched on Sept 1, 2023, the value-added contribution of the manufacturing sector to the gross domestic product (GDP) has increased by 4.7 per cent, amounting to RM4.2 billion. 

“Employment numbers have also risen by 0.9 per cent or 200,000 workers, as of the second quarter of 2024 (2Q24), compared to 2Q23.

“Additionally, the median salary in the manufacturing sector increased by 8.2 per cent or RM201, as of 1Q24, year-on-year.

“Almost all key performance indicators (KPIs) for 2024 have met their targets,” he told reporters after presenting MITI’s 3Q24 report card today.

However, the minister noted that there is still much work to be done. 

He said while five years remain, time is running short, and the economic environment is becoming more challenging.

Under NIMP 2030, MITI aims to achieve a value-added contribution of RM587.5 billion from the manufacturing sector, create 3.3 million job opportunities, and raise the median salary to RM4,510 by 2030.

According to MITI’s 3Q24 report card, Malaysia has approved RM6.2 billion in green investments through the Malaysian Investment Development Authority (MIDA) in the first half of 2024 (1H24), focusing on renewable energy, energy efficiency, and circular economy initiatives. 

This effort has resulted in 436 projects, creating 3,843 jobs, with 82.1 per cent already implemented. 

MITI also noted that domestic investments have shown promise with significant projects like Asiabina Solar Sdn Bhd investing RM200.4 million in a solar project in Parit Buntar. 

Foreign investments include a new semiconductor manufacturing facility by Silware Precision Malaysia Sdn Bhd in Penang, projected to create around 3,000 jobs.

The ministry also said Malaysia’s trade performance has been robust, with total trade reaching RM2.139 trillion from Jan to Sept 2024. 

This included RM1.115 trillion in exports and RM1.024 trillion in imports, resulting in a trade surplus of RM91.21 billion. 

Notable trade initiatives like the Malaysia International Halal Showcase (MIHAS) have generated significant sales, while the Export Day 2024 reported that 50.63 per cent of companies were actively engaged in exports.

Additionally, regulatory reforms across 27 ministries have led to cost savings of RM561.5 million for businesses.

Meanwhile, Tengku Zafrul said his ministry welcomes the 2025 Budget allocation, which reflects the government’s commitment to strengthening the national economy through strategic investment, industrial, and trade initiatives.

He noted that the budget allocation for MITI was higher than in 2024, with a total of RM2.18 billion allocated to the ministry for 2025.

“MITI is committed to ensuring that every cent of the allocated funds is utilised optimally for the well-being of the people and the economic development of the country,” he said.

Source: NST

Tengku Zafrul: First-year target of NIMP 2030 is attainable

The domestic manufacturing sector is expected to cement firmer footing across industries amid stable global economic growth.

According to the Economic Outlook report, the manufacturing sector is expected to strengthen by 4.5% in 2025, driven by significant policies such as the New Industrial Master Plan (NIMP 2030) and the National Semiconductor Strategy (NSS).

The report said domestic-and exportoriented industries continue to uphold the sector’s performance in line with resilient domestic demand and favourable external environment.

On the domestic front, production in household and consumer goods-related industries such as food, beverages, and textiles is expected to be sustained.

This aligns with supportive policy measures such as salary adjustments for civil servants and the withdrawal of the EPF Flexible Account, which will stimulate consumer spending.

The report said favourable tourist arrivals in conjunction with major international events will also spur the demand for consumer goods.

On the other hand, increasing approved and realised investments signifies a positive outlook for construction activities, thereby propelling growth in manufacturing construction-related materials.

Export-oriented industries are also expected to continue their growth trajectory, which aligns with the higher global demand for electronics components.

The electrical, electronic, and optical products subsector is expected to accelerate further, mainly underpinned by sustained demand for intermediate products, including advanced chips used in next-generation smartphones and other consumer devices.

Furthermore, the rising realisation of approved investment in the semiconductor industry, coupled with concerted efforts by the government to elevate the entire high-tech ecosystem under the NSS, will provide additional support to the subsector’s growth.

The report said the mining sector will likely face a subdued outlook for 2025.

It also noted that the mining sector is forecast to contract by 1% in 2025, following a sluggish performance in key subsectors.

The natural gas subsector is projected to decline as output decreases, mainly due to the planned shutdown of two facilities in Sarawak for maintenance purposes and moderating demand from major importing countries such as Japan, China and South Korea.

The overall natural gas production is expected to remain below the 2024 capacity despite several new plants being scheduled to commence operations.

Source: The Star

Domestic manufacturing industry set for expansion

Sun Bus Tech has already laid a solid foundation for success over the past 12 months even before its official opening, firming up partnerships with industry giants like HESS Switzerland 

Traditional bus maker pioneer Sun Bus Tech Sdn Bhd is set to up the game. 

The leader in bus and bus body recently celebrated the grand opening of its advanced manufacturing facility in Senai Airport City, Johor. 

Designed to produce over 500 commercial vehicles annually, the facility by the subsidiary of Sun Wah Group was expected to create over 150 jobs, driving local and regional economic development. 

With the opening, Sun Bus Tech was set to lead the industry with its revolutionary electric buses, equipped with first-in-Malaysia technology imported from Europe and sustainable manufacturing practices. 

The bus maker has unveiled its work on developing the Model T for electric vehicle manufacturer Foxtron, highlighting its capability to manage sophisticated projects for global leaders in the industry. 

Sun Bus Tech founder/chairman Phang Sun Wah said that the company’s five decades of experience have led it to pioneer bus body manufacturing in Malaysia and beyond. 

“Our partnership with global leaders like HESS and the technology transfer from Scania Sweden has enabled us to implement industry-first advancements, such as our patented Co-Bolt technology. This facility is not just about manufacturing buses, it’s about pushing the boundaries of what is possible in sustainable transportation, setting new standards that extend beyond conventional methods. 

We are excited to have already secured significant contracts from regional and neighbouring governments, positioning Sun Bus Tech as the leader in the industry,” he said in a statement. 

Johor State Public Works, Transport, Infrastructure and Communications Committee chairman Mohamad Fazli Mohamad Salleh mentioned that the establishment of Sun Bus Tech’s manufacturing plant is a good example of Johor’s dedication to becoming a sustainable and eco-friendly state. 

“This venture is not only about creating green jobs and significantly reducing carbon emissions but also aligns with our broader vision for the Johor-Singapore Special Economic Zone (JS-SEZ). Through enhanced connectivity, modern facilities and an increased share of public transportation, we are determined to transition Johor — and Malaysia — towards a low-carbon economy, paving the way for a more sustainable and prosperous future,” said Mohamad Fazli. 

Deputy Minister of Investment, Trade and Industry Liew Chin Tong said as Malaysia outlined its economic strategy for the ASEAN chairmanship, Johor was poised to play a pivotal role in fostering regional trade and investment. 

“The JS-SEZ will also strengthen Malaysia’s position in regional and global supply chains,” he said. 

Reflecting on the strategic partnership, Carrosserie HESS AG CEO Alex Naef said its collaboration with Sun Bus Tech allowed the company to bring top-tier European technology to the region, enabling the production of long-lasting, energy-efficient and recyclable transport solutions. 

“This partnership is a crucial step towards a more sustainable and efficient future in public transportation,” he mentioned. 

Sun Bus Tech has already laid a solid foundation for success over the past 12 months even before its official opening on Oct 11, firming up partnerships with industry giants like HESS Switzerland and secu- ring cutting-edge technology from Scania Sweden. 

The integration of patented aluminium technology represents a significant industry breakthrough, while the facility’s focus on sustainability, including the use of solar panels, rainwater harvesting and energy-efficient systems, has earned the company a Green Building Index (GBI) certification, the company said in the same statement. In addition to bus and bus body manufacturing, Sun Bus Tech has also established a joint venture with the Polish seat manufacturer STER Sp z o o, focusing on the supply of commercial vehicle seats in Asia.

Sun Bus Tech’s journey began in the 1970s when it first ventured into the bus industry by launching a coachwork fabrication business. The early experience laid the ground- work for a larger venture he co-founded in 1989, focusing on bus and bus body manufacturing in Senai, Johor.

Sun Bus Tech’s expertise lies in crafting bus bodies tailored to various chassis configurations to ensure structural integrity and value. It offers solutions for every stage of the vehicle lifecycle — from design and construction to maintenance and digital platforms for real-time fleet monitoring. 

Its initiatives include advanced battery recycling programmes that support a circular economy and reduce environmental impact. 

Source: The Malaysian Reserve

Johor-based Sun Bus Tech opens advanced manufacturing facility