Malaysia’s semiconductor industry is set to solidify further with various commendable initiatives outlined under Budget 2025, including the Supply Chain Resilience Initiative and the New Investment Incentive Framework.

Malaysia Semiconductor Industry Association (MSIA) director Andrew Chan said the Budget, with a stronger focus on developing talent in the electrical and electronics (E&E) sector, has further solidified the country’s role in the global semiconductor supply chain.

“These efforts aim to bolster the country’s competitiveness in the semiconductor sector and the measures outlined in the budget lay a solid foundation for long-term growth and resilience within the industry,” he told Bernama.

Budget 2025 was unveiled by Prime Minister Datuk Seri Anwar Ibrahim, who is also finance minister, on Friday, with an allocation of RM421 billion, comprising an operating expenditure of RM335 billion and a development expenditure of RM86 billion.

The expansionary budget also involved the introduction of the New Investment Incentive Framework, including a strategic investment fund worth RM1 billion aimed at enhancing the capacity of local talent and encouraging high value activities to be carried out in the country. This framework, which focuses on high value activities as opposed to existing incentives based on specific products, is expected to be implemented in the third quarter of next year.

To enhance the diversification of the E&E sector through high-value-added activities, such as integrated circuit (IC) design services and advanced materials, the government has agreed to expand the tax incentives to boost exports to include IC design activities.

In efforts to reduce the economic gap between regions, special income tax incentives will be offered for investments in 21 economic sectors in Perlis, Kedah, Kelantan, Terengganu, Sabah and Sarawak, subject to the success of economic spillovers.

Meanwhile, commenting on the government’s plan to implement a multi-tiered levy mechanism (MTLM) early next year to reduce dependence on foreign workers, Chan said it is a proactive step by the government.

He reckons that the levy proceeds will be reinvested in the industry for automation and mechanisation, which aligns well with the broader push for digital transformation and increased efficiency. “We look forward to hearing more details of the MTLM,” he added.

Source: The Sun

Budget 2025 set to strengthen Malaysian semiconductor industry: Association

The Federation of Malaysian Manufacturers (FMM) has praised the 2025 Budget for its focus on higher value-added activities, Environmental, Social, and Governance (ESG) initiatives, and net-zero targets, all of which are vital for fostering economic growth.

Its president Tan Sri Soh Thian Lai said the introduction of the multi-tier levy mechanism (MTLM) was designed to drive automation and reduce reliance on low-skilled foreign workers.

“This initiative is crucial for advancing technology adoption and digitalisation, which will increase demand for skilled workers while decreasing reliance on low-skilled labour,” he said.

He said there was a need for the tiered levy system to be implemented transparently, with clear criteria, a pre-announced deadline, and a gradual increase in rates to minimise business costs.

Incentives for businesses that reduce foreign worker usage should also be included, he added.

With RM64.1 billion allocated to the Education Ministry and RM18 billion to the Higher Education Ministry, the budget aims to build a skilled workforce, particularly in STEM and AI fields.

“The RM7.5 billion earmarked for Technical and Vocational Education and Training (TVET), including industry collaborations, will further support this objective,” he said.

Soh expressed optimism regarding the government’s plan to raise the minimum wage to RM1,700 starting February next year, acknowledging the need to balance worker wages with inflationary pressures while ensuring sustainable industry growth.

“FMM looks forward to the thoughtful implementation of these measures to support both employee welfare and business competitiveness,” he said.

However, he voiced concerns over the increase in excise duty on sugar-sweetened beverages, labelling it a “hard policy” that could burden consumers.

He urged a more holistic approach to combating non-communicable diseases (NCDs) through education and community health programmes.

Additionally, the proposed increase in sales tax on premium imported products like salmon and avocados raised concerns about potential administrative challenges and increased consumer costs.

“Any increase in sales tax on premium products should be approached cautiously to avoid unnecessary burdens on consumers, especially as many of these items have become common in households,” he said.

Soh also expressed disappointment that the government did not adopt FMM’s proposal for double tax reductions for companies embracing Industry 4.0 technologies, such as AI, Big Data Analytics, and automation systems, which could enhance manufacturing processes and support local SMEs in their smart manufacturing journeys.

Source: NST

FMM welcomes 2025 Budget: A boost for automation, skilled workforce

The government will introduce a carbon tax on the iron and steel as well as energy industries by 2026.

Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, said the tax is aimed at promoting the use of low-carbon technologies.

“Revenue generated from this tax will be used to fund green research and technology programmes,” he said when tabling Budget 2025 in the Dewan Rakyat here today.

Meanwhile, he said UEM Lestra and Tenaga Nasional Bhd will invest RM16 billion to increase the transmission and distribution network capacity as well as decarbonise industrial areas.

Anwar said the open grid access initiative will be implemented through the Corporate Renewable Energy Scheme (CRESS) to enable corporate users to obtain electricity supply from preferred renewable energy (RE) generators.

The Prime Minister said dual-function RE generation structural designs such as the agrivoltaics concept will be introduced to prevent RE power plants’ negative impact on food production.

Source: Bernama

Budget 2025: Govt to introduce carbon tax on iron, steel and energy industries by 2026

The dynamic global economic landscape and rapid technological advancements require Malaysia to keep abreast of industrial developments, necessitating the formulation of the New Industrial Master Plan 2030 (NIMP 2030).  

The NIMP 2030 sets strategic initiatives designed to position Malaysia as a global leader in industrial development to elevate the manufacturing and manufacturing-related services sectors to greater heights.

This is geared towards capitalising emerging global trends such as artificial Intelligence (AI), advanced robotics and electric vehicles (EVs).  

The plan identifies electrical and electronic (E&E) as one of the priority subsectors that can generate high economic and innovation knowledge spillovers.  

The E&E subsector forms 40 per cent of the nation’s exports of manufactured goods, particularly to Singapore, the US and China. Semiconductor industry constitute 60 per cent of total E&E exports, mostly from back-end activities.  

With strong capabilities and rising global market trends on technological changes, Malaysia aims to move up to higher value-add segments and strengthen both the front and back-end semiconductor ecosystem.

The National Semiconductor Strategy (NSS) was announced in May 2024 as part of the NIMP 2030 with the aim of enhancing the country’s role in the global semiconductor supply chain from design to production of high-value semiconductor products.  

Measures taken include prioritising new investments in advanced wafer fabrication and integrated circuit design activities.  

The extensive initiative of the NSS highlights the nation’s strong commitment towards elevating the entire high- tech industry and enhancing workforce to greater heights as the strategy sets forth five headline targets including fiscal support, training, investment, company growth as well as research and development (R&D) hub.  

The government and industry require strategic actions to advance Malaysia’s semiconductor industry, such as fostering R&D collaboration, continuous technical skill learning programme, establishment of an advanced packaging technology centre and sustainable development. 

Malaysia’s semiconductor industry is at a transformative juncture, buoyed by strategic national initiatives and a forward-looking vision.  

Supportive national policies, such as the Ekonomi Madani framework, which includes the implementation of the NIMP 2030 and NSS, underscoring the government’s commitment to fortify the industry’s global competitiveness and sustainability.  

With all these policies and action plans in place, Malaysia is well-positioned to navigate through the complexities of the global semiconductor market, drive growth and set new benchmarks of excellence in the coming years. 

Source: NST

Government to leverage AI, robotics & EVs to bolster semiconductor sector

The Investment, Trade and Industry Ministry (MITI) expects 10,380 job opportunities to be created via an industrial cluster development in the central region comprising the Federal Territory of Kuala Lumpur, Selangor, Negeri Sembilan and Melaka.

According to MITI, this initiative will raise several macroeconomic measures, including the collective central region’s achievement in 2023, with a RM754.2 billion contribution to the gross domestic product (GDP),  and an estimated annual increase of RM24.5 billion from 2025 to 2030.

According to MITI, the central region’s 2023 gross estimated rise in average investment was RM7.57 billion and this is expected to increase by RM12.5 billion for the 2025-2030 period. 

Earlier, Prime Minister Datuk Seri Anwar Ibrahim chaired an Oct 16 2024 National Investment Council meeting which agreed to take an industrial cluster development approach in line with the objectives of the New Industrial Master Plan 2030 (NIMP 2030).

Meanwhile, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said in a statement that the strategic initiative aims to strengthen Malaysia as an investment, manufacturing and service hub for several focus sectors.

The central region has a high concentration of electrical and electronic, aerospace, pharmaceutical and food technology sectors and the government is determined to develop a targeted industrial cluster, starting with the central region, based on its existing strengths.

“We do not need to create a corridor authority or add new financial burdens on the Federal Government, thus saving administrative costs and fiscal allocations.

“Additionally, we will also be able to leverage existing incentives,” he said.

Tengku Zafrul is also confident that the industrial cluster approach will attract additional investments, create new job opportunities, improve the local economy, and promote fair and inclusive growth with close coordination between MITI, ministries and agencies, and state governments.

This high-performance industrial cluster development model has successfully been implemented in several developed countries.

MITI will ensure whole-of-nation efforts and use best global practices when implementing this initiative, he said.

Source: Bernama

More than 10,000 job to be created with industrial cluster development – MITI

Sarawak is leveraging on cutting-edge digital technologies such as artificial intelligencies (AI), the internet of things (IoT) and data analytics to accelerate its smart and precision farming ambitions.

This is so it can realise its aim to address food security and establish the state as a net food exporter by 2030.

State Utility and Telecommunications Minister Datuk Seri Julaihi Narawi told the International Digital Economic Conference (IDEC) here today that Sarawak was already at the “leading edge of a significant and transformative shift in how farming is conducted”.

“This shift not only enhances our crop yield and productivity but also improves our overall production efficiency and market access,” he said.

Julaihi said these advancements were crucial as Sarawak strives to meet the food security agenda.

He said Sarawak, to achieve its vision to be a developed state by 2030, had launched its Post Covid-19 Development Strategy 2030 (PCDS 2030) in 2021 where it provides strategies for achieving its vision of having a thriving society driven by data and innovation by 2030.

“The PCDS 2030 is underpinned on technology driven economies, namely, digital economy, green economy, and circular economy to drive Sarawak’s economic growth, social inclusivity, and environmental sustainability.”

Julaihi said, to realise the aspirations of PCDS 2030, the Sarawak Digital Economy Blueprint 2030 was launched in October 2023 as the strategic plan to transform the whole-of-economy and society from conventional resource-based economy to environmentally-sustainable, technology-driven economy.

“The world economy is transforming fast because of the rapid spread of new digital technologies, in particular artificial intelligence, with major implications on nations economic growth, social well-being and environmental sustainability.

“The value of being a digitally-ready nation is immediately reflected in the strong correlation against indicators such as GDP per capita, innovation, digital competitiveness and e-commerce amongst others,” he said.

Julaihi said the Sarawak Digital Economy Blueprint 2030 envisions Sarawak becoming a major digital economy powerhouse in the region to achieve inclusive, responsible, and sustainable socio-economic development.

An Oxford Economics report, he said, had stated the average contribution of digital economy to the global economy will be 24.3 per cent in 2025.

“The Sarawak Digital Economy Blueprint 2030 targets the state being able to tap a percentage of the global economy to flow into Sarawak through strategies to grow cross-border data flow by establishing technology parks to attract digital investments such as AI data centres, digital services and technology industries, amongst others.

“The blueprint takes into consideration the foresight and direction of global digital economy strategies and recognises that the Sarawak government plays an enabling role, with the economy driven by public and private sectors and individuals to determine our ultimate measure of success.”

Source: NST

Sarawak going hi-tech to realise ambition to be net food exporter

Experts from integrated circuit (IC) design industry players Skyechip, Weeroc, and Chipsbank have emphasised the potential of Malaysia’s semiconductor sector to enhance Southeast Asia’s technology landscape at the Selangor Smart City and Digital Economy Convention (SDEC) 2024 today.

The first day of the three-day SDEC 2024 featured insightful sessions on Malaysia’s IC design industry and the growing convergence of artificial intelligence (AI) and semiconductors, according to event host Selangor Information Technology & Digital Economy Corporation (Sidec).

“Key discussions focused on the transformative role of semiconductors in industries such as healthcare, mobility, and manufacturing, while other sessions delved into the importance of talent development in cultivating Malaysia’s next generation of semiconductor engineers,” it said in a statement today.

Sidec said that as part of the Selangor International Business Summit (SIBS), this year’s 3-in-1 conference focuses on semiconductors, AI innovation, and small and medium enterprise (SME) digitalisation, exploring their role in driving Malaysia’s digital economy forward.

SDEC 2024, themed “Building a Smarter Malaysia: Unleashing AI & Semiconductor Convergence”, features more than 200 exhibitors and is expected t attract over 18,000 visitors.

Its official opening ceremony was officiated by Menteri Besar Selangor Datuk Seri Amirudin Shari, alongside Deputy Digital Minister Datuk Wilson Ugak Anak Kumbong and Selangor state executive councillor for investment, trade, and mobility Ng Sze Han.

During the event, strategic partnerships were formalised, including a memorandum of understanding (MoU) between Sidec and Cyberview Sdn Bhd.

“This MoU marks a key milestone for Malaysia’s semiconductor industry, focusing on a two-year collaboration to advance investment, ecosystem, and industry development for the IC Design Park Phase 2 in Cyberjaya.

“The dignitaries also witnessed a product preview and company launch by TEASK, a company with a vision for accessible, clean, and interconnected energy,” the statement said.

TEASK offers modular and movable power stations, with the first station installed in Cyberjaya, a collaboration through the Cyberview Living Lab Pilot initiative.

Additionally, NCT Group formalised a strategic partnership with Sidec to foster industrial development and promote community building at the NCT Smart Industrial Park, further supporting business growth and global expansion opportunities.

Sidec said these collaborations are part of Malaysia’s broader efforts to establish itself as a regional leader in semiconductor innovation, digital transformation, and smart city development.

Following the successful launch of day one, SDEC 2024 will continue to explore generative AI innovation on the second day, focusing on global AI talent development, AI in robotics, and the transformative impact of generative AI across various industries.

Day 3 will feature the TikTok SME Digitalisation Conference, which will offer insights and strategies for SMEs to leverage digital platforms and innovative e-commerce solutions to drive growth and success.

Source: Bernama

Malaysia’s Semicon Sector Can Enhance Southeast Asia’s Tech Landscape — IC Design Experts

NCT Group, via unit NCT Land Sdn Bhd, has formed a partnership with Selangor Information Technology & Digital Economy Corporation (SIDEC) on fostering advanced technologies, innovation and community building at the NCT Smart Industrial Park (NSIP).

“The partnership marks a key milestone for NSIP as it solidifies its position as a hub for semiconductors, artificial intelligence (AI) and robotics while supporting NSIP’s evolution into a digitally driven, environmentally sustainable industrial destination in Selangor,” the group said.

NCT founder and group managing director Datuk Seri Yap Ngan Choy said making NSIP future ready will be beneficial for all stakeholders.

“SIDEC’s multifaceted expertise in driving the digital economy and fostering smart city solutions makes them the ideal partner to take NSIP to the next level.

“Together, we are establishing an industrial park that not only meets the infrastructure demands of businesses but also sets the standard as the country’s first tech-centric park with zero emissions by 2050,” he said in a statement.

SIDEC chief executive officer Yong Kai Ping said as Selangor moves towards becoming a leader in digital economy and smart city solutions, the collaboration with NCT aligns perfectly with SIDEC’s vision for innovation and sustainability.

“NSIP will set the standard for smart, sustainable industrial parks, and we are excited to contribute our expertise in digital transformation,” he added.

Key initiatives under the partnership include business matchmaking, where NCT and SIDEC will actively connect local and international companies to create new collaborations and innovative synergies aimed at driving investments for sustainable long-term growth.

Additionally, digital transformation remains a key focus of the alliance, complementing NSIP’s ongoing efforts to strengthen operational efficiency and create an environment conducive to global expansion through the adoption of advanced technologies and systems.

“Ultimately, these multifaceted initiatives are designed to enhance NSIP’s position as a leading industrial hub, fostering a vibrant, sustainable and innovative industrial community,” NCT said.

NSIP is sited within the Integrated Development Region in South Selangor.

Source: NST

NCT Group, SIDEC to ‘future ready’ Selangor’s smart industrial park

More than 10 companies have visited and initiated discussions on potentially investing in the Silver Valley Technology Park (SVTP), Perak, from the beginning of 2023 to the third quarter (3Q) of 2024, said the Ministry of Investment, Trade and Industry (MITI).

MITI said that China’s Jinjing Silicon Technology has committed to invest RM40 million in SVTP on a project to manufacture high-quality glass for solar energy systems.

“Currently, the project is 20 per cent completed, and it is estimated to be completed by 4Q 2025,” the ministry said in its written response posted on the Parliament’s website today.

MITI was responding to a question from Lee Chuan How (PH-Ipoh Timur) concerning plans to attract industries to SVTP while waiting for the Kerian Integrated Green Industrial Park (KIGIP) to be operational.

Regarding KIGIP, MITI acknowledged that comprehensive efforts to realise the green industrial park had been taken through close cooperation between the federal government, the Perak state government, SD Guthrie and Permodalan Nasional Bhd since its announcement in Budget 2024.

The ministry said among the steps taken is to promote KIGIP’s potential as a preferred investment destination for investors. 

“The government believes that KIGIP, based on a green and smart industrial park concept, can generate economic activities and create job opportunities for high-skilled talents.

“The park is expected to attract quality investments, especially in the electrical and electronic, semi-conductor, logistics, information technology and communications sectors, as well as knowledge-based industries,” it added.

Source: Bernama

More than 10 companies looking at investing in Silver Valley Technology Park – MITI

The Selangor Information Technology and Digital Economy Corp (Sidec) had inked a memorandum of understanding (MOU) with Cyberview Sdn Bhd for the advance investment, ecosystem and industry development of the Integrated Circuit (IC) Design Park Phase 2 in Cyberjaya.

This marks Selangor state’s second IC design park, following the launch of its first park in Puchong in August 2024.

Explaining further, Selangor Mentri Besar Datuk Seri Amirudin Shari revealed that the IC Design Park 2 in Cyberjaya is expected to be launched in the first quarter of 2025.

“To further strengthen our position in the semiconductor industry, I am delighted to share that we are planning the development of IC Design Park 2 in Cyberjaya.

This will expand our capabilities and reinforce Malaysia’s role as a key player in this critical global industry,” he said at the opening ceremony of the Selangor Smart City and Digital Economy Convention (SDEC) 2024.

Having seen the success of its first semiconductor IC design park, Amirudin said the move had increased Malaysia’s place on the global stage in the semiconductor space.

He proceeded to call out to international players to be a part of Malaysia’s semiconductor journey and to ensure Selangor remains at the cutting edge of the industry.

“As we move forward, our vision is clear. We want Selangor to be a global leader in digital transformation.

This means shaping a resilient and adaptable ecosystem, investing in the right technologies and empowering our entrepreneurs,” he said.

He stated that the aspects are equally critical to ensure that artificial intelligence (AI) does not end up as a buzzword and instead bring a meaningful change to people’s lives.

He added that cybersecurity awareness is also important to prevent Malaysians from being exposed to threats by those aiming to take advantage.

“We can build a future where Selangor continues to lead in the digital economy, but we must build an ecosystem which is secure, where our businesses thrive and where our people have the security and confidence to not only be users, but shepherds to this field,” he added.

During a special address, Digital Deputy Minister Datuk Wilson Ugak Anak Kumbong said collective efforts by all stakeholders – including the government, businesses, academia and the rakyat, are essential to unlock the full potential of AI, semiconductors and the digital economy.

“As we look forward, it is crucial to remember that digital transformation is a collective effort.

“Together, we can ensure that Malaysia is not just a participant in the global digital landscape, but a leader,” he added.

SDEC 2024, a part of the Selangor International Business Summit, featured sessions on Malaysia’s IC design industry and the growing convergence of AI and semiconductors.

Additionally, a separate strategic partnership was formalised during the event, involving NCT Group with Sidec to foster industrial development and promote community building at the NCT Smart Industrial Park in Sepang.

Source: The Star

Selangor strengthens its position in chip sector

Malaysia is well-positioned to be a hub of innovation and sustainable development in Southeast Asia in the long-term, supported by recently announced German Technology Park in Malacca.

MIDF Research said there are over 700 German companies in Malaysia to-date, which have created over 70,000 jobs for locals.

The firm said that the nation stood as a location of interest, given its strategic location and developed infrastructure.

“Given that German companies adhere strictly to sustainability practices, we believe this project is apt and timely to gain better investments to support the development of the technology park,” it said in a research note today.

German Technology Park is designed to attract leading German technology and manufacturing companies, and aims to be a hub of innovation and sustainable development in the region.

Cypark Resources Bhd, Melaka Corporation (MCorp) and Jakel Capital have signed a memorandum of agreement to jointly explore and develop energy solutions for the industrial park, with the shared goal to manage the planning, generation, and distribution of at least 1,000 megawatt (MW) in the next five to seven years.

The consortium will be structured with Jakel Capital holding a 51 per cent stake, Cypark Resources at 29 per cent and MCorp at 20 per cent, with an estimated RM4 billion capital expenditure.

The project includes the integration of renewable energy sources and modern energy management systems.

This includes battery storage solutions to ensure firm and cost-efficient power supply to the industrial park in consultation with Tenaga Nasional Bhd (TNB) and Suruhanjaya Tenaga via the corporate renewable energy supply scheme (CRESS).

While optimistic over the project, MIDF Research also identified certain risks which includes high upfront cost of infrastructure set up and regulatory changes.

The firm said regulatory risks are the most significant, considering that German companies had to adhere to several regulations when operating abroad.

This includes Supply Chain Due Diligence Act (LkSG) which requires medium-sized German companies to ensure their supply chain comply with human rights and environmental standards.

Meanwhile, the Foreign Trade and Payments Act (AWG) regulates foreign investments in strategic sectors including technology manufacturing and General Data Protection Regulation (GDPR) ensures data privacy and security in both companies and the nation they operate in.

“Nevertheless, regulatory risks could be mitigated through thorough due diligence in tandem with engaging legal experts to ensure the proper navigation between the policies in Germany and Malaysia.”

“Additionally, implementing a robust sustainability and human rights practices could meet LkSG requirements, through job creation and integration of greener solutions to energy generation,” it added.

Source: NST

The German Technology Park in Malacca can help make Malaysia a hub for innovation and sustainability

A total of 6,617 battery-electric vehicles (BEVs) were sold in the first half of 2024 (1H24), up 112 per cent year-on-year (YoY), said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

A total of 3,117 BEVs were sold during the same period in 2023.

Tengku Zafrul noted that the progress brings the country closer to its goal of having electric vehicles make up 20 per cent of total industry volume (TIV) by 2030.

“This remarkable growth not only signals our consumers’ growing interest, but also demonstrates Malaysians’ general buy-in to contribute to the national and global environmental agendas,” he said at the launch of Leapmotor, the latest addition to Stellantis’ portfolio in Malaysia.

He added that as of Sept 30 this year, over 171 charging stations had been installed nationwide, of which 813 were direct current (DC) fast chargers.

“We hope to reach our goal of 10,000 charging stations by end-2025,” Tengku Zafrul said.

The minister highlighted that the automotive industry continues to be a crucial driver of Malaysia’s economic growth, contributing a significant 4.0-5.0 per cent to the country’s gross domestic product (GDP) each year and providing employment for more than 700,000 people.

In comparison to 2023, the sector recorded total imports valued at RM62.14 billion, with RM37.15 billion coming from the import of automotive parts and components.

“On the export side, the sector recorded a total value of RM18.01 billion, with RM13.26 billion from automotive parts exports.

“The significant disparity between imports and exports has led to a trade deficit for the sector,” he said.

Stellantis Malaysia today launched its new electric vehicle brand, Leapmotor, along with its first global offering, the Leapmotor C10 electric SUV.

The company also revealed plans for Malaysia, which include the local assembly of Stellantis brand multi-energy vehicles at its Gurun facility in Kedah, aimed at serving the Asean market.

Additionally, Stellantis said it intends to enhance the local supply chain, support talent development, and create new job opportunities.

Tengku Zafrul said this decision will significantly boost the automotive industry, facilitate advanced technology transfer and contribute to improving exports.

Source: NST

Malaysia inches closer to EV goal

The development of a special industrial cluster in the manufacturing sector in the central region needs to be prioritised as a strategic initiative of the Madani government to strengthen the country’s position as an investment hub, said Prime Minister Datuk Seri Anwar Ibrahim.

The central region includes the Federal Territory of Kuala Lumpur, Selangor, Negeri Sembilan and Melaka.

Anwar, who is also finance minister, said this matter has been agreed upon in principle and that the importance of close cooperation between the federal government and the state governments in jointly promoting the central region should be emphasised.

“This is important in the effort to attract more high-quality investments to the focus areas in each state, speeding up the implementation of projects while improving the ‘ease of doing business’ by reducing bureaucracy,” said the prime minister through a post on X Wednesday.

Anwar chaired the National Investment Council (NIC) meeting number seven for 2024 on Wednesday.

He said the NIC on Wednesday had agreed that the Malaysia Productivity Corporation should continue the implementation of the regulation testing initiative to increase the productivity and efficiency of the delivery of regulations at all levels of government including local authorities.

“This initiative needs to be continued and also expanded based on the excellence shown especially in saving time and cost,” he added.

Anwar said this effort will also increase investments which in turn will increase revenue for local authorities, especially in matters of construction permits and land management through the Industrial Green Lane approach as has been implemented in Kulai, Johor and Kulim, Kedah.

Source: Bernama

PM wants focus on development of manufacturing industrial cluster in KL, Selangor, Negeri Sembilan and Melaka

A total of 6,617 battery-powered electric vehicles (BEVs) were sold in the first half of 2024 (1H2024) marking a significant 112 per cent year-on-year surge in the electric vehicle (EV) market, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

He said 3,117 units of BEVs were sold in 1H2023.

“So I think we should be on track to meet our target of having 20 per cent of our total industry volume (TIV) comprising EVs by 2030.

“This remarkable growth not only signals our consumers’ growing interest, but also demonstrates Malaysians’ general buy-in to contribute to the national and global environmental agendas,” he told reporters after the launch of Stellantis x Leapmotor C10 SUV here today.

Regarding charging stations, Tengku Zafrul said that as of Sept 30, 2024, more than 3,171 charging stations have been installed nationwide, including 813 DC fast chargers.

“We hope to reach our goal of 10,000 charging stations by end-2025,” he added.

He said the automotive industry remains a vital pillar of Malaysia’s economic growth, contributing an impressive four to five per cent to national gross domestic product (GDP) annually, and supporting over 700,000 jobs.

In 2023, Malaysia’s automotive sector recorded a total import value of RM62.14 billion, with RM37.15 billion attributed to the import of automotive parts and components.

On the export side, the sector recorded a total value of RM18.01 billion, with RM13.26 billion from automotive parts exports.

“The significant disparity between imports and exports has led to a trade deficit for the sector,” he noted.

He said that as the world’s fourth-largest automaker and a leading mobility solutions provider, Stellantis’ choice of Malaysia as the first market in South-east Asia for Leapmotor reflects the confidence that global players have in the country’s growing role as a hub for new energy vehicles.

“I was thrilled when Stellantis announced its decision to establish Malaysia as a regional manufacturing hub as part of its ‘Built in Asean for Asean’ strategy, alongside a regional headquarters for Asia Pacific. I am optimistic that this decision will significantly boost our automotive industry, facilitate advanced technology transfer and enhance our exports,” he said.

Stellantis today unveiled its new all-electric SUV, the C10, marking its first major entry into the South-east Asian market with its launch in Malaysia.

The C10 is part of Leapmotor International, a 51:49 joint venture between Stellantis and Leapmotor.

The all-new electric Leapmotor C10 is offered at a limited-time introductory price of RM149,000 on the road, excluding insurance, for bookings made until Nov 30, 2024. After this period, the price will be set at RM159,000.

It is available in four exterior colours — glazed green, pearly white, canopy grey, or Tundra grey — and two interior options: criollo brown (exclusive to glazed green) and midnight aurora.

Source: Bernama

BEV sales surge 112pc in Malaysia, paving the way for 2030 targets, says Tengku Zafrul

Malaysian innovators and manufacturers should seize the opportunity to tap into the immense potential of the global medical devices industry, which is projected to reach nearly US$800 billion by 2030, says Science, Technology and Innovation (MOSTI) Minister Chang Lih Kang.

Chang noted that Malaysia had many high-quality products and innovators in the medical devices sector, with the government continuously encouraging and supporting industry players in research and development (R&D) and commercialisation efforts.

“The market is vast, and we have plenty of room for success. To support R&D, of course, not limited to the medical devices industry, MOSTI offers various funding facilities, grants, matching grants, and equity where we invest in relevant startups,” he said.

Chang said this to reporters after officiating the soft launch of INNOMed: Innovation Pitching Powered by PERANTIM, a key event in the International Medical Device Exhibition & Conference (IMDEC) 2024.

Also present were Medical Device Authority (MDA) chief executive officer Dr P. Muralitharan, Malaysia Medical Devices Manufacturers Association (PERANTIM) president Johari Abu Kasim, and organising chairman of INNOMed, Dr Hyzan Mohd Yusof.

Earlier in his speech, Chang said that under Malaysia’s New Industrial Master Plan (NIMP) 2030, the government aimed to foster synergies between the manufacturing and engineering sectors and the medical devices sector. This includes creating advanced inspection tools, solutions for imaging and endoscopy, implantable devices, and minimally invasive surgical tools.

Meanwhile, Muralitharan told Bernama that, according to figures from the Department of Statistics Malaysia (DOSM), Malaysia’s total trade in medical devices, valued at RM25.61 billion from January to July this year, increased by 23.5 per cent compared to the same period in 2023 (RM20.74 billion).

He added that the export of medical devices was valued at RM20.15 billion, an increase of 25.7 per cent compared to RM16.02 billion in 2023.

In his speech, Dr Hyzan said that medical device innovation presented an opportunity to improve healthcare while boosting the economy, with the industry projected to reach nearly US$2 billion by 2025, making it one of the fastest-growing sectors.

“By focusing on innovation, we can create high-skilled jobs, reduce our dependence on imported technologies, and position Malaysia as a global leader. Last year, we spent US$5 billion on medical devices, with 95 per cent being imports. Our goal is to reduce this to 50 per cent within five years,” he said.

He also emphasised that close collaboration among universities, innovators, manufacturers, clinicians, and government agencies was key to ensuring that ideas and research transitioned smoothly from laboratories to clinical applications and into the hands of healthcare providers.

INNOMed, themed “Unleashing the Power of Medical Technology: Shaping the Future of Healthcare,“ is organised by the MDA and will take place from Dec 10 to 12 at the Kuala Lumpur Convention Centre (KLCC).

Source: Bernama

Malaysia should seize opportunity in global medical devices market – Chang

KEDAH-based electronics manufacturing services (EMS) provider Aurelius Technologies Bhd is riding a wave of robust orders and gearing up for a potentially stronger financial performance this year, driven by its strategic focus on wireless communication technology and operational efficiency.

For its fiscal first half ended June 30, 2024 (1HFY2024), the company reported a profit of RM31.76 million on revenue of RM277.96 million, placing itself in a strong position to improve on last year’s results.

“Achieving good financial results is not just about the numbers. We also place a lot of emphasis on our strategic direction and operational effectiveness,” ATech executive director and CEO Loh Hock Chiang tells The Edge in an interview at the company’s headquarters in Kulim Hi-Tech Park.

“This year’s performance clearly reflects the successful execution of the initial stages of our core strategies. We are not just aiming to meet expectations but also striving to consistently exceed them and set new benchmarks.”

After a change in its financial year end from Jan 31 to Dec 31, ATech only had 11 months in its new financial year ended Dec 31, 2023 (FY2023). Over that period, the company made a profit of RM38.24 million on turnover of RM385.55 million.

According to Loh, ATech firmly believes in the potential of wireless communication technology and, despite the scepticism in some quarters, the company remains confident that wireless solutions will eventually become central to future connectivity needs.

“In today’s world, connectivity is essential for personal, business and security purposes. As communication complexity increases, so too the need for advanced wireless solutions. Our focus on wireless technology positions us well to meet this growing demand for connectivity solutions across industries,” Loh explains.

ATech is an investment holding company whose subsidiary BCM Electronics Corp Sdn Bhd is principally an EMS firm focused on industrial electronics products. In 2019, ATech expanded into the manufacture of semiconductor components in the form of multi-component integrated circuit (IC) for Internet of Things (IoT) applications.

It is one of the first companies in Malaysia to manufacture fifth generation (5G) communication modules and related applications for global clients.

ATech’s customer portfolio currently boasts more than 10 clients, including a global communication solutions giant. ATech  is one of three main contract manufacturers in the world producing top-tier communication devices used in critical public safety systems globally.

Loh, 59, is a chartered accountant with Chartered Accountants Australia and New Zealand and has held various positions, including chief financial officer (CFO) and deputy CEO of Comintel Corp Bhd, where his last designation was executive director, before he left in January 2018.

He assumed his current position of executive director of BCM in 2018 and was appointed group CFO of ATech in March 2021. Following the passing of ATech co-founder and former CEO Lee Chong Yeow in January 2022 — a month after the company was listed on Bursa Malaysia in December 2021 — Loh was made interim CEO before assuming the role of group CEO about seven months later in August.

As at April 9 this year, Loh owned a direct stake of 7.75% in ATech. Together with the late Lee, he had held an indirect stake of 39.4% in the company through Main Stream Holdings Sdn Bhd (20.04%) and Main Stream Ltd (19.36%).

Lee’s daughter Jamie Lee Hwe Ping currently sits on the board of ATech as non-executive director. Hwe Ping’s younger brother Jonathan Lee Ming Chian, who serves as her alternate director, is the administrator of their father’s estate. They each have a direct stake of 1.94% in the company.

ATech executive director and CFO Tan Chong Hin is a substantial shareholder of the company with 6.17% equity interest via Pixel Advisers Pte Ltd.

The company’s latest annual report shows that its top 30 largest shareholders include AIA Bhd and AIA Public Takaful Bhd, three Kenanga funds, Etiqa Life Insurance Bhd and Lembaga Tabung Angkatan Tentera (LTAT).

Interestingly in June, the Employees Provident Fund (EPF) and Abrdn plc emerged as substantial shareholders of ATech, with 7.87% and 7.06% equity interest respectively.

This came in the same month that ATech completed a private placement that raised about RM132.01 million at an issue price of RM3.35 per share. Some RM55 million of the gross proceeds was earmarked for the construction of the company’s new integrated manufacturing plant.

Year to date, the share price of Main Market-listed ATech had gained 14% to close at RM2.94 last Thursday, which translated into a market capitalisation of RM1.27 billion. The counter is trading at a historical price-earnings ratio (PER) of 25 times.

More opportunities coming from automotive sector

Looking ahead, ATech is set to expand its offerings in mobility and communication products, many of which are driven by IoT solutions, especially in the motor vehicle industry.

Loh says ATech’s IoT portfolio includes vehicle telematics, electric vehicle (EV) management systems, energy management and smart asset monitoring devices. A key application is the use of vehicle telematics by automotive insurers in the US and Europe to monitor customer behaviour, he notes.

With the global rollout of 5G infrastructure, demand for 5G-related IoT solutions is expected to surge, creating more opportunities for ATech.

Loh points out that the company’s new automotive segment is gaining traction, particularly with communication modules and monitoring devices for insulation and tyre pressure. “Going forward, we believe more 5G and IoT products will be infused into automotive applications,” he says.

An important aspect of ATech’s growth strategy is its ongoing expansion in Kulim, where it currently operates three plants. The company is in the midst of building a fourth facility, dubbed P5, which is expected to be completed by the end of the year.

“We plan to double the built-up space of our premises to 520,000 sq ft from 260,000 sq ft currently via our expansion project on our 301,874 sq ft freehold industrial land with an investment of RM13.6 million,” says Loh.

P5 will be fitted with a clean room facility and is expected to be fully utilised within two to three years. Loh expects the new facility to double ATech’s production and warehousing capacity as well as its profitability. “Theoretically, our production and warehousing capacity should double by then, as should our profitability.”

Wireless technology will spearhead the utilisation of P5, with increasing focus on 5G products for automotive applications such as autonomous driving and in-vehicle infotainment, he reiterates.

Moreover, the global shift towards the China+1 manufacturing strategy has created significant opportunities for Malaysia as a preferred hub for multinational corporations (MNCs). “We are continuously exploring partnerships or participation in the supply chain to support the localisation efforts of these MNCs,” says Loh.

To mitigate the effects of market fluctuations, particularly due to the tech and semiconductor cycles, ATech has a diversified customer base, spanning industries such as communication, energy, automotive, financial technology and agriculture.

“Engaging with a diverse range of customers across different industries provides us with valuable insights and stability,” he says, adding that this diversification helps the company maintain a stable revenue stream and ensure that no single market trend disproportionately impacts its business.

“We like to maintain our priority to continuously build on our many years of cumulative knowledge and ability to serve different sectors with varying technology demands. Of course, there are still many more new customers from new industries, which we are actively working on to further diversify our customer portfolio.”

Although the semiconductor industry has been a magnet for high revenue opportunities, Loh points out the cyclical and capital-intensive nature of the business.

“We are often asked whether we are investing in the advanced semiconductor industry as it is more glamorous and high-end than the highly competitive EMS sector. We are attracted to the former’s high revenue but it can be cyclical and volatile and its extensive facilities and capital commitments are overwhelming,” he observes.

Instead of venturing into the semiconductor space, ATech remains focused on adding higher-margin products to its catalogue and driving operational efficiency, which the company believes provides it with a competitive edge on the global stage.

“We provide additional value to our customers by offering cost-effective solutions that are comprehensive, agile, faster and more efficient, facilitating cost-down initiatives for customers,” says Loh.

ATech’s net profit margin improved from 6% in the financial year ended Jan 31, 2022, to 7.7% in the financial year ended Jan 31, 2023. It improved further to 9.9% in the financial year ended Dec 31, 2023, and to 11.4% in 1HFY2024.

By comparison, the net margins of V.S. Industry Bhd and SKP Resources Bhd were 4% and 5% respectively in their latest full financial year. Meanwhile, the net margins of Cape EMS Bhd and Betamek Bhd stood at 8% and 9% respectively. 

Source: The Edge Malaysia

Aurelius Technologies stays wired to wireless solutions for growth

The Melaka state government is committed to positioning the state as a leading hub for electric vehicle (EV) production in Malaysia, in line with Sustainable Development Goal 13 (SDG13), which emphasises urgent action to combat climate change and its impacts.

Chief Minister Datuk Seri Ab Rauf Yusoh said the use of EVs is crucial in supporting efforts to promote low-carbon mobility practices among Malaysians, aligning with the government’s aspiration to achieve a carbon-neutral country by 2050.

“It is also a strategic and comprehensive initiative to address climate change and promote the development of renewable energy,” he told reporters after launching the Lytron Malaysia Electric Motorcycle at Encore, Kota Laksamana, here on Monday.

Ab Rauf highlighted that the opening of the first Lytron brand electric motorcycle plant in Ayer Keroh in 2022 aligns with the state’s SDG 13 efforts.

He said the factory, which operates under the supervision of Lytron Sdn Bhd and managed by M Electric Vehicle Sdn Bhd (MEVB), is involved in the production and assembly of electric motorcycles, as well as the marketing and distribution of Lytron electric motorcycles nationwide.

“So far, I understand that 1,000 units of Lytron electric motorcycles will be marketed in Melaka first for the local market, following approval from the Ministry of Investment, Trade, and Industry.

“We have asked Zhejiang Luyuan Electric Vehicle Co Ltd from China to further expand their investment in Melaka through its technology partner, MEVB, to further advance electric technology development in Malaysia,” he said.

Ab Rauf added that the electric motorcycle plant is also expected to create job opportunities for graduates of technical and vocational education and training courses from higher education institutions in the state.

Source: Bernama

Chief minister: Melaka poised to become EV manufacturing hub

For three decades, Dpstar focused on manufacturing heaters, sensors and thermocouples for local businesses. However, when the market was flooded with cheaper products from China, Ken Lim, the chief executive officer of Dpstar Group, saw growing demand for new technologies like data centres, and he swiftly pivoted the business in a new direction.

Before, Dpstar’s local clients leaned towards traditional sectors like steel and ceramic, which only a few years ago began to decline due to cheaper supplies from large exporters.

To overcome this challenge, Lim had to understand the direction of industry growth and digitalisation while moving business alongside it instead of against it. 

He did this by focusing on areas of innovation at the front end of use cases, while “looking at global trends and development, and where those application use cases mostly fit for us and industries that we are in”.

Through this, Lim saw that the focus was shifting towards growth in electronics, with more projects and investments coming into areas like semiconductors and data centres. 

This growth came from the US-China trade war, leading to many US companies seeking suppliers away from China and into the Southeast Asian market, which the local government was quick to capitalise on, implementing initiatives like the Malaysian Investment Development Authority committee.

“The [Malaysian] government is moving more into this direction, with a lot of investments coming from the local industries shifting their operation zone to Malaysia,” says Lim.

With this in mind, Dpstar pivoted towards digitalisation by developing their automation products in areas their business already had a presence in while adapting to new digital trends in government-focused sectors like data centres, semiconductors and life sciences.

This was not easy and something Lim says Dpstar was only able to achieve thanks to its partners and collaborators with stakeholders and industry players, such as contractors, system integrators and building companies.

“There’s an everyday kind of engagement [with these partners] where we talk about design: what works for them, what are the bottlenecks, what are the pain points, where can our products best serve them, [and] where can they optimise costs?” says Lim.

Thanks to these experiences and insights, Dpstar’s products and services have attracted not only local clients but overseas as well, securing several globally competitive contracts and partnerships. 

One example was a UK aeroplane company that adopted Dpstar’s thermal solutions and a US data centre operator that took a contract for thermal sensors in data centres. Lim was unable to share the names of the two companies.

In the latter case, the data centre operator used Dpstar’s leak detection solutions alongside its critical environment monitoring solutions, like temperature sensors, among other sensors — all solutions the company developed since its shift and digitalisation.

Investing in talent as much as technology

Outside of adjusting its business strategy to ride on the global megatrends and digitalisation, another important yet overlooked aspect Lim focused on was nurturing the company’s talent for the present and possible future. 

To him, ensuring employees are adequately trained, remunerated, treated fairly and have the best chance for industry growth is equally important to the business’ pivot, adapting the workforce alongside operations.

An example of this is Dpstar’s plans with the government to build the first cleanroom test facility in Malaysia for upscaling, training and developing local talent. A cleanroom is where electronics are manufactured with minimal dust and other contaminants in the air.

“[It is] a small-scale [facility] that enables students from universities, colleges, industrial professionals, end users, engineers and technicians to come and learn in terms of how they can operate [machines in this cleanroom], how they can manage [and] think about the best practices [in operating it],” says Lim.

This was made in response to how the Malaysian semiconductor industry focuses a lot on addressing the back-end side, like testing or assembly, but not on the front end. This also lines up with Malaysia’s initiative to build up the local ecosystem and talent pool. 

These collaborative efforts are key to Dpstar’s strategy in digitalisation, as it ensures Lim’s team knows the technologies available and how to incorporate them into the company’s operations. 

Lim recognises that other businesses are reluctant to follow this approach, attributing this towards a focus on the return on investment, and he urges other local businesses to look beyond this.

With the cleanroom, for example, Lim sees it more as a corporate social responsibility — upskilling workers, enriching the talent pool, and preparing them for a future where advanced technologies become more democratised.

Source: The Edge Malaysia

Adapting to the market digitalisation shift

Malaysia has immense opportunities and significant responsibilities to capitalise on the rise of electric vehicles, fuelled by the global push towards decarbonisation.

Ministry of Investment, Trade and Industry (Miti) secretary-general Datuk Hairil Yahri Yaacob said industry-developed guidelines for EVs prioritise safety and environmental responsibility, helping the country align with global standards in sustainability while protecting communities and the environment.

Launching the EV and Battery Management Guideline (EVBM Guideline) during the International Greentech & Eco Products Exhibition & Conference Malaysia 2024 (IGEM 2024) on Friday, Hairil said the framework reflects Malaysia’s commitment to advancing green technology and sustainable practices.

He said that with contributions from industry representatives, regulatory bodies and government agencies, the comprehensive framework covers the entire lifecycle of EV batteries – from acquisition, usage, and maintenance to final disposal and recycling.

“The EVBM Guideline represents a cornerstone of our collective efforts to create a robust, safe and sustainable framework for EV and battery management. This is not just a set of rules but a blueprint for industry-led self-regulation, fostering a culture of responsibility, safety and environmental stewardship.

“By outlining best practices for the handling and transportation, particularly EV lithium batteries, we ensure the prevention of fire and explosion hazards. This approach also minimises environmental impact,” Hairil told delegates at the EVBM Guideline’s launch.

He recalled that the idea of having a guideline for managing EVs and batteries was mooted during the Miti Dialogue last year, reflecting the ministry’s focus on addressing the EV industry’s issues and concerns.

The idea of for a guideline was presented to the National EV Steering Committee chaired by Deputy Prime Minister Datuk Seri Fadillah Yusof. The committee recognised the urgent need to address the risks associated with lithium-ion battery handling.

Following the decision, Northport (Malaysia) Bhd, in a strategic partnership with Miti, Malaysia Productivity Corporation and Malaysian Automotive, Robotics and IoT Institute, volunteered to develop the guideline under the principle of self-regulation.

“The guideline aims to ensure public safety, environmental protection and the sustainability of Malaysia’s EV ecosystem. By prioritising safe handling, transportation and disposal of EV batteries, we are not only protecting the environment but also boosting productivity by creating a more efficient and sustainable framework for all stakeholders,” Hairil said.

The initiative is a result of collaborative efforts across the entire industry, he said, adding that it is a self-regulation approach led by the industry, where active business initiatives take centre stage.

“What is crucial here is that we have incorporated valuable input and feedback from businesses, consumers, and regulators. This ensures that the guidelines are comprehensive, effective, and reflective of the needs and concerns of all stakeholders involved.”

Hairil said the EVBM Guideline is designed to evolve with the industry. Miti, he added, looks forward to continuous collaboration with the private sector to ensure Malaysia remains a sustainable mobility leader.

Source: The Sun

Launch of EV, battery management guideline reflects Malaysia’s commitment to green mobility

The Investment, Trade and Industry Ministry (MITI) will launch an anti-dumping duty investigation into steel wire rods originating from or exported by China, Indonesia, and Vietnam. 

In a statement today, MITI said the probe follows a petition filed by Southern Steel Bhd, a domestic producer, which alleges that imports from the countries are being sold at prices lower than domestic products.

Southern Steel also claims that the dumped imports have increased significantly causing material injury to the domestic industry, the ministry said.

The investigation was initiated under Section 20 of the Countervailing & Anti-Dumping Duties Act 1993 and Regulation 7 of the Countervailing & Anti-Dumping Duties Regulations 1994.

“A preliminary determination will be made within 120 days from the initiation date. If the preliminary determination is affirmative, the government will impose a provisional anti-dumping duty at the necessary rate to prevent further injury to the domestic industry,” it said.

MITI will distribute questionnaires and relevant documents to interested parties, including importers, foreign exporters and producers from the alleged countries, their respective governments and relevant trade associations.

Other interested parties wishing to participate in the investigation must request the questionnaires in writing to MITI by Oct 25 and submit their views, responses, and supporting evidence by Nov 9.

Source: Bernama

Miti launces anti-dumping duty probe on steel wire rods from China, Indonesia, Vietnam

More China-based companies have expressed interest in being off-takers to set up manufacturing facilities within UEM Sunrise Bhd’s Renewable Energy (RE) Industrial Park in Gerbang Nusajaya, Iskandar Puteri, Johor.

These companies include China Machinery Engineering Wuxi (CMEC Wuxi) Co Ltd — the manufacturing arm of CMEC, Wuxi Longmax Technology Co Ltd (Longmax), Gotion, Hopewind and Huasun.

According to a press statement issued by UEM Sunrise on Thursday, CMEC Wuxi and Longmax are already in the process of setting up local manufacturing operations here, as well as establishing solar module and combiner box production facilities within the RE Industrial Park.

Meanwhile, UEM Sunrise is in discussions with Gotion, Hopewind and Huasun to invest in the industrial park and serve as RE off-takers here.

Once finalised, together with ITRAMAS Corporation Sdn Bhd (ITRAMAS) and CMEC, these five companies will occupy a combined land size of 40 acres in the RE Industrial Park as the RE off-takers.

This announcement was made on Thursday during an agreement exchange ceremony between UEM Sunrise, ITRAMAS Corporation Sdn Bhd (ITRAMAS) and CMEC. The three parties have signed a memorandum of understanding (MOU) to set up their RE facilities in the industrial park in Beijing back in May 2024. 

“We are committed to fostering an environment that promotes seamless growth, innovation, and excellence in local manufacturing. As we establish Gerbang Nusajaya as a renewable energy hub, UEM Sunrise looks forward to providing the infrastructure, resources, and bring the collaborative spirit required to bring form to this vision in a responsible and sustainable manner,” said UEM Sunrise CEO Sufian Abdullah in the statement.

The RE Industrial Park is part of the one gigawatt hybrid solar power plant project, a flagship catalytic project under Malaysia’s National Energy Transition Roadmap (NETR) to be undertaken by UEM Group through its wholly-owned subsidiary and green industries arm, UEM Lestra Bhd. This project is expected to play a pivotal role in Malaysia’s renewable energy infrastructure, fostering local and regional market growth and positioning Malaysia as a renewable energy hub in Asean.

Source: The Edge Malaysia

More Chinese companies looking to set up facilities in Johor’s RE Industrial Park

Negeri Sembilan has strong potential to emerge as one of Malaysia’s foremost semiconductor hubs with comprehensive planning and decisive action, Menteri Besar Datuk Seri Aminuddin Harun said.

He highlighted the state’s strategic location near the Klang Valley and major national gateways, such as Kuala Lumpur International Airport (KLIA) and Port Klang, which offer key logistical advantages.

Furthermore, Negeri Sembilan boasts robust infrastructure, making it an attractive destination for business, he added.

“We have long-established major semiconductor companies here, such as On Semiconductor, TDK-Lambda, Samsung, and Nexperia, among others. This demonstrates the trust of leading global firms in the semiconductor sector to invest in our country, especially in Negeri Sembilan.

“I am confident that we will attract more major semiconductor companies to invest here in the future,” he said at the groundbreaking ceremony for the Negeri Sembilan Semiconductor Valley (NSSV) here today.

Aminuddin noted that NSSV is designed to support technology development focused on the semiconductor industry in Negeri Sembilan.

He said the initiative aligns with the Malaysian Government’s National Semiconductor Strategy (NSS), the New Industrial Master Plan (NIMP) 2030, and the National Energy Transition Roadmap (NETR).

The development of NSSV, he added, is expected to catalyse an inclusive semiconductor ecosystem by integrating small and medium enterprises (SMEs) into the supply chain, thus stimulating growth across the industry in the state.

Aminuddin also emphasised that the strategy aligns with the growth of Malaysia’s semiconductor industry, which has expanded rapidly this year, ensuring the country remains competitive globally.

“This sector is crucial to the global supply chain, driven by rising chip demand and advancements in artificial intelligence (AI), which will continue to fuel semiconductor industry growth in the years ahead,” he said.

Source: Bernama

Negeri Sembilan Set To Become Major Malaysian Semiconductor Hub -Aminuddin

Malaysia’s impressive economic growth is not solely driven by foreign direct investments (FDIs) but also by domestic investments, said Prime Minister Datuk Seri Anwar Ibrahim.

Speaking at the Associated Chinese Chambers of Commerce and Industry’s (ACCCIM) 78th annual general meeting here on Sunday, he attributed the strong domestic investments momentum to the growing interest, confidence, and commitment shown by domestic players.

“Domestic investments have increased phenomenally, so I thank you (the private sector) for that.

“Following that, if there is an impressive domestic investment [momentum], then I should not tax you (private sector) too highly,” Anwar quipped.

He said the private sector, including businesses, small and medium-sized enterprises (SMEs), and micro SMEs, would be given special focus in the upcoming Budget 2025.

Anwar, who is also finance minister, is scheduled to table the budget in Parliament this coming Friday (Oct 18).

Source: Bernama

PM: There have been robust domestic investments too, not just FDIs

The domestic semiconductor sector remains on track for recovery despite facing short-term headwinds, particularly due to unfavourable foreign exchange (forex) rates, with the ringgit strengthening against the US dollar.

According to RHB Research, the new semiconductor upcycle is in its early stages, citing gradual increase in demand.

“We believe sector demand is showing early phases of recovery, and expect it to gain pace into 2025 with stronger growth visibility,” the brokerage wrote in its report yesterday.

However, it conceded that sector headwinds on unfavourable forex could temporarily derail the recovery, with earnings of semiconductor players likely to be reduced by 1% to 3% for every 1% strengthening of the ringgit against the US dollar.

“Still, it may be partially hedged by their US dollar purchases – typically 40% to 50% of cost of goods sold (for outsourced semiconductor assembly and test or Osat) and 20% to 40% (equipment makers and those with foreign borrowings),” RHB Research said.

“We believe the primary earnings drivers are volume loading and margin compression stemming from negative forex movements that can be passed on to customers via renegotiation, revised quotation, and engineering and process efficiency,” it added. RHB Research maintained its “overweight” stance on the technology sector.

“We advocate investors with a medium-term view to be nimble and build positions amid steep share price corrections to attractive levels,” it said.

RHB Research noted that the Semiconductor Industry Association had recently revised its forecast upward, projecting sales to reach US$611.2bil this year, reflecting a 16% increase with a further 12.5% growth anticipated in 2025.

“This uneven recovery is currently supported by the logic and memory chips, thanks to the boom in artificial intelligence (AI)-related servers and equipment. Going into 2025, a broad-base recovery with growth from all segments is expected,” it said.

“Also, early recovery indications in the automated test equipment space, along with traction in the front-end semiconductor space, bolsters our belief for a sustained sector recovery that is expected to gain pace into 2025 – where the replacement cycle intensifies,” it added.

While the second-quarter ended June 30, 2024 results for the sector were largely a miss, the aggregate core profit after tax and minority interest sustained the year-on-year growth at 11.6% on stronger revenue amid the recovery of the semiconductor space, RHB Research noted.

RHB Research noted that the sector’s valuation was attractive, at only 20-22 times forward earnings, which is around its five-year historical mean.

The brokerage’s top picks are Malaysian Pacific Industries Bhd, Pentamaster Corp Bhd and CTOS Digital Bhd.

Meanwhile, CIMB Research also reiterated its “overweight” stance on the Malaysian technology sector. It recently hosted a panel session on Malaysia’s National Semiconductor Strategy (NSS) policy, featuring expert speakers from across the Malaysian semiconductor value chain.

The discussion covered government initiatives, such as potential RM25bil in fiscal support, aimed at boosting local semiconductor manufacturing, research and development, and advanced packaging capabilities.

CIMB Research noted that panelists at the event emphasised industry collaboration, technology transfer, and the development of a robust talent pipeline to strengthen Malaysia’s semiconductor ecosystem.

“The panellists agreed on the importance of local back-end Osat players remaining competitive and reinvesting their profits to develop advanced packaging platforms.”

Source: The Star

Chip sector upcycle intact

Survey: Improved business performance in the third quarter a positive sign

The semiconductor industry will continue to see growth for the next few months and recover on a gradual basis, Malaysian Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai says.

MSIA’S recent quarterly pulse survey found 46% of respondent companies within the electrical and electronics (E&E) and semiconductor sector had seen an improved business performance in the third quarter (3Q24).

This was up by 39% as compared to 2Q24, signalling a positive trajectory despite slightly moderated optimism across the industry.

A total of 53% of companies are optimistic about 4Q24, indicating continued positive sentiment although this is slightly lower compared to the 60% optimism reported in 2Q24 for 3Q24.

For the next 12 months, 63% of companies expressed an optimistic outlook, a slight decline from the 72% optimism expressed in 2Q24.

Commenting on the performance, Wong said the performance actually varies depending on which business companies are involved in. “For those who are involved in artificial intelligence (AI), we actually see growth in their performance.

“However, for those in other industries (within the sector), you can see that they are recovering but not as good as expected,” he told Starbiz 7.

Supporting this claim, Maybank Investment Bank (Maybank IB) Research stated the sector sales would be increasingly driven by emerging sectors such as AI, high-performing computing, data centres and electric vehicles.

The brokerage said total semiconductor sales would continue to be dominated by consumer electronics such as personal computers and smartphones.

Earlier this year, it was reported that the semiconductor sector is poised for recovery, especially in the second half of 2024 (2H24).

Wong reiterated that the recovery will still happen, however, at a more gradual pace.

He shared that month-onmonth, the industry has seen a positive trend and over the next few months, the industry will continue to see growth.

On the matter of the investment outlook, the survey found 52% of companies are reported to be optimistic for 4Q24 – a marginal decline from 58% in 2Q24.

Companies are also expected to see a slight reduction in hiring engineers and technicians in 4Q24 by 71%. MSIA said talent shortages and market competition continue to be the primary challenge for the industry.

This is in addition to challenges such as cost pressures and supply chain disruptions, as well as a more pronounced inflation.

Hence, in order for these companies and the industry to thrive, Wong said issues on the talent shortage must be addressed, infrastructure must be enhanced and competitiveness has to be strengthened through strategic investments and government support.

“With the right policies in place, Malaysia’s E&E sector will continue to be a major contributor to our nation’s economic growth,” he said, adding the 2Q24 survey results reflect the resilience and adaptability of Malaysia’s semiconductor industry.

“For those who are involved in artificial intelligence, we actually see growth in their performance.” Datuk Seri Wong Siew Hai.

Source: The Star

Chip sector in growth phase