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MIDA eyes RM134 mln investments for aerospace industry by end of 2023

The Malaysian Investment Development Authority (Mida) is setting its sights on attracting RM134 million in investments for the aerospace industry by the end of 2023.

Mida CEO Datuk Wira Arham Abdul Rahman said the agency met with prospective aerospace companies, both foreign as well as domestic, with potential investment projects related to aero-manufacturing and maintenance, repair and operations (MRO) during the Langkawi International Maritime and Aerospace Exhibition (LIMA’23).

“Potential investment for these projects is estimated to be RM900 million in the next three to five years. Mida’s strategic vision and dedication are poised to revolutionise the future of Malaysia’s aerospace industry,” he told Bernama.

He outlined the possibilities for manufacturing critical components, expanding MRO services, developing aircraft conversion and modification capabilities, and strengthening the local supply chain. With the projected growth in the Asia Pacific air travel market, Malaysia has a unique opportunity to position itself as a regional aerospace hub.

“To support the aerospace industry’s growth, Malaysia could focus on strengthening its local supply chain ecosystems, which includes developing engineering capabilities, electronics manufacturing, advanced materials production, and systems integration.

“By building a robust supply chain, Malaysia could provide a comprehensive range of components and services to the aerospace industry,” he said.

He further expressed that the investor sentiment in the aerospace industry in Malaysia has been generally positive and optimistic, especially with the presence and collaborations between global and local companies that have fostered the development of an industry ecosystem.

Indeed, the aerospace industry in Malaysia has witnessed a significant upward trend in approved investments from 2017 to 2019, in which approved investments surged from RM649.9 million in 2017 to RM2.07 billion in 2019.

“As for 2022, the number of approved investments in the aerospace industry amounted to RM146.8 million, with two projects from wholly-Malaysian-owned companies, while a total of 42 employment opportunities were created,” he said.

In the shipbuilding and ship repairing (SBSR) industry, Arham revealed that investments in the pipeline for the year 2023 include the establishment of shipbuilding and ship repairing facilities for the defence, commercial, and offshore oil and gas industries.

“The total potential investment for these projects is estimated to be around RM2 billion which will be undertaken in phases over the next five to ten years,” he pointed out.

From January to March 2023, Arham said Malaysia recorded a total export value of RM133.5 million for maritime products, with the top five exports being tugs and pusher craft (RM52.6 million), cruise ships, cargo ships, and barges (RM33.1 million), yachts and other vessels for pleasure or sports (RM31.6 million), floating structures (RM15.8 million), light vessels, dredgers, floating docks, and floating or submersible drill platforms (RM0.3 million).

“Meanwhile, the top export destination during the same period were Indonesia (RM44.6 million), United Arab Emirates (RM22.1 million), United States (RM18.9 million), Singapore (RM13.8 million), and Brunei (RM6.2 million),” he said.

He also said that Mida hopes to attract more investments from both domestic and foreign companies, not only for the shipbuilding and ship repairing activities but also for parts and components and other related services including technology providers.

“Malaysia welcomes investments from foreign and local companies in the SBSR industry, providing vast opportunities for investors to engage in activities such as constructing shipyards, dry docks, and repair facilities to meet the growing demand in the country,” he added.

Source: Bernama

MIDA eyes RM134 mln investments for aerospace industry by end of 2023

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Malaysia attracted approved investments worth RM71.4 billion in the manufacturing, services and primary sectors for the first quarter (1Q) of 2023, according to the Malaysian Investment Development Authority (Mida).

The government’s principal investment promotion and development agency said this involves 1,265 projects that are expected to generate 23,977 new job opportunities.

“With its conducive investment landscape, Malaysia continues to capture more foreign direct investments (FDI) than domestic direct investments (DDI).

“FDI contributed RM37.5 billion, representing 52.5 per cent of the total approved investments,” Mida said in a statement today.

Singapore leads with approved investments totalling RM11.5 billion, followed by the British Virgin Islands (RM7.1 billion), China (RM6.5 billion), Hong Kong (RM2.9 billion), and South Korea (RM2.5 billion).

Meanwhile, DDI accounted for RM33.9 billion, reflecting domestic investors’ renewed confidence in Malaysia’s economic progress and prospects, the agency said.

On approved projects by state, Mida said the top five states that attracted a significant portion of the approved investments were Kuala Lumpur with RM21.8 billion, followed by Johor (RM10.6 billion), Selangor (RM7.4 billion), Perak (RM7.1 billion), and Sabah (RM6.3 billion).

In terms of sector, the services sector drew the lion’s share of approved investments at RM53.6 billion (with over 12,000 job opportunities), followed by the manufacturing sector (RM15.6 billion, over 11,900 new jobs) and the primary sector (RM2.2 billion).

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia’s ability to attract RM71.4 billion in approved investments for the quarter underscores the country’s continued appeal as an investment powerhouse.

“Both foreign direct investments and domestic investments almost match each other in value. From a domestic perspective, this clearly reflects renewed confidence in Malaysia’s growth prospects.

“All these will have a positive spillover impact, particularly on the small and medium enterprises in our domestic supply chain, and on the rakyat in terms of better-paying jobs, which will help support our economy in the face of various global challenges this year,” he said.

Malaysia’s investment landscape presents bright prospects with a pipeline of proposed investments and leads projects overseen by Mida.

It said there are currently 878 projects with proposed investments amounting to RM35.9 billion for pipeline projects and RM150.4 billion for lead projects.

The manufacturing sector took the lead with 78.8 per cent (RM28.3 billion) of pipeline projects, while the services sector accounted for 21.2 per cent (RM7.6 billion), showcasing a diversified investment portfolio.

Mida chief executive officer Datuk Arham Abdul Rahman said this robust pipeline and lead project portfolio solidify Malaysia’s reputation as an attractive and thriving investment destination, fueled by its strategic location, robust infrastructure, skilled workforce, and supportive business policies.

He said that Mida, as the main investment promotion agency in Malaysia, remains committed to fostering a conducive environment for businesses and investors, and these impressive figures reflect the confidence they have in Malaysia’s potential for long-term growth and success.

“Moving forward, the Ministry of Investment, Trade and Industry and Mida aim to sustain this momentum by attracting new investments that are aligned to the objectives of the New Investment Policy, towards sustainable and inclusive economic growth for Malaysia,” he added. 

Source: Bernama

MIDA: Malaysia attracts RM71.4bil in approved investments for 1Q

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Malaysia aims to strengthen its position as Asia’s shipbuilding and ship repair (SBSR) hub through collaboration and innovation to shape a vibrant future for the industry, said the Malaysian Investment Development Authority (Mida).

In a statement today, it said the SBSR industry thrives within a dynamic ecosystem where diverse stakeholders collaborate to design, construct, maintain, and upgrade vessels.

“This interconnected network forms the foundation for resilience and growth, while their expertise contributes to a robust and competitive shipbuilding and ship repair sector,” Mida said.

Its chairman Tan Sri Sulaiman Mahbob said the industry is poised for continued evolution and growth as Malaysia aspires to become Asia’s premier SBSR hub by leveraging smart solutions, seamless technologies and industry 4.0 advancements to construct modern and eco-friendly vessels.

“With the extension of tax incentives and import duty exemptions until December 31, 2027, as announced by the government, the SBSR industry is poised to attract more investments and enhance its capacity and capabilities,” he said.

Sulaiman noted that these measures reflect the government’s commitment to supporting the maritime industry and establishing Malaysia as the premier SBSR hub.

According to Mida, the SBSR industry attracted RM363 million in investments from five projects in 2022, marking a significant increase of 451.7 per cent from the previous year’s RM65.8 million investment figure.

“These projects are expected to generate 183 employment opportunities, further solidifying the industry’s growth and impact on Malaysia’s economy,” it said.

Furthermore, Mida said the Langkawi International Maritime and Aerospace Exhibition (LIMA’23) serves as a platform to foster growth and development in Malaysia’s SBSR industries while showcasing the country’s competitiveness, resilience, and commitment to innovation and sustainability in these sectors.

Meanwhile, Mida chief executive officer Datuk Arham Abdul Rahman said Malaysia has approved a total of 131 projects in the aerospace industry, attracting investments worth RM16.7 billion from 1985 to 2022.

“This remarkable track record highlights Malaysia’s success in attracting significant investments and fostering continuous growth in the aerospace sector,” he said.

Source: Bernama

Malaysia aims to strengthen position as Asia’s SBSR hub — MIDA

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The National Investment Council’s (MPN) recent decision to empower the Malaysian Investment Development Agency (Mida) as the country’s main investment promotion agency (IPA) will ensure a holistic government approach for more orderly, efficient, focused, structured and systematic
promotional activities.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said it would also allow Malaysia to optimise available resources and overcome overlapping IPA responsibilities, leading to more efficient services.

Moreover, it would ensure a more structured IPA governance, which is an important factor for investors when making decisions and evaluating Malaysia as a preferred investment destination, the minister said in a statement today.

Tengku Zafrul said the move to empower Mida was also aimed at increasing and retaining foreign direct investment (FDI) as well as domestic direct investment (DDI) and ensuring these investments had positive spillover effects on the economy and domestic supply chain, local small and medium enterprises, and the people in line with the goals of the National Investment Aspirations.

The MPN, in its maiden meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim, recently agreed to empower Mida as the nation’s main IPA as part of the government’s effort to reorganise the PIA ecosystem, which will kick off with the streamlining of the functions and roles of IPAs as well as of regional economic corridors in relation to phased investments.

Tengku Zafrul said the strengthening of administrative functions and centralisation of reporting on the latest investment data under a single dashboard would allow for a more agile handling of investor-related issues.

Spurce: Bernama

MIDA’s empowerment as main investment promotion agency to bring many benefits –Tengku Zafrul

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The Malaysian Investment Development Authority (Mida) is committed to preparing homegrown companies for global reach.

Citing Tesla’s investments in Malaysia as an example, Mida deputy chief executive officer for investment development Lim Bee Vian said the agency could bring Malaysian companies to broader international markets.

“We disseminate information on investment opportunities in targeted countries for internalisation and then we also encourage cross-border investments.

“We have 21 overseas centres globally. These centres not only help us bring in foreign direct investments (FDIs) but also help gather information on certain policy settings and incentive offerings of the countries that they cover.

“If you have the intention to invest abroad, you can leverage our presence internationally,” she said in a session on attracting investments at the National Economic Forum 2023 today.

Lim said attracting FDIs is very important for Malaysia as it involves not only capital but also advanced technology, knowledge transfer, and high-value job opportunities as well as prospects for local businesses.

“These investments promote economic diversification, facilitate industrial upgrading and enhance our competitive edge on the global stage.

“The development of the high-tech sector is crucial to maintain our economic momentum and remaining competitive in the new and sustainable global industrial investments,” she added.

To ensure quality and high-impact foreign investments, Lim said Malaysia has adopted a targeted and selective investment approach and no longer accepts investments that entail low-end assembly-type operations or labour-intensive projects due to its little value addition for Malaysia.

Source: Bernama

MIDA committed to preparing homegrown companies for global reach

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TO strengthen the economy, a lot of focus is being placed on attracting foreign direct investment (FDI).

Malaysia adopts focused, targeted and selective approaches towards attracting investment inflows to ensure quality and high-impact investments.

While intensifying the promotion of foreign investments, it encourages long-term, sustainable investments and facilitates the development of Malaysia as a digital hub.

For 2023, one primary strategy is based on a country and industry focus; the country focus takes advantage of trade diversions due to uncertain geopolitical tensions that include the United States-China trade conflict and the Russia-Ukraine crisis.

“Within the shift in the global supply chain, Malaysia is promoted as an alternative hub for manufacturing and distribution activities,’’ said Malaysian Investment Development Authority (Mida) CEO Datuk Wira Arham Abdul Rahman.

The industry focus approach emphasises investments in new development areas – electric vehicles, smart factories using 5G technology, supply chain ecosystems and green technology.

FDIs in 2022 accounted for 61.7% of total investments or RM163.3bil.

Foreign investors were mostly concentrated in information and communications, electrical and electronics, mining, transport equipment as well as chemicals and chemical products.

China led the way in total approved investments with RM55.4bil, followed by the United States (RM29.2bil).

With RM264.6bil in approved investments in 2022, Malaysia’s manufacturing and primary sectors have shown resilience in the face of a challenging economic landscape.

Mida has a number of promising projects with potential investments of RM14.6bil.

The manufacturing sector has 31 projects with potential investments of RM10.6bil; investments in services amounted to RM4bil.

The recent commitment by Tesla and Amazon Web Services to invest in Malaysia is testament to its political stability and institutional strengths.

“In line with Malaysia’s aim to become Asia’s investment gateway, Mida is making every effort to quickly emerge as Asean’s digital hub,’’ said Arham.

This is based on Malaysia’s highly developed information and communication technologies infrastructure, talented science, technology, engineering and mathematics pool, strong intellectual property protection framework and rule of law.

The revised New Industrial Master Plan will set the tone for Malaysia’s industrial development by outlining new growth opportunities, improving ease of doing business and attracting high-quality digital investments.

To reduce Malaysia’s carbon footprint and promote sustainable development, Mida will prioritise investments that benefit the people, planet as well as funding for green projects and renewable energy.

With the rise in environmental, social and governance (ESG) investing, Mida together with the Investment, Trade and Industry Ministry (Miti), is pushing for targeted policies and initiatives in sustainability.

Currently, a key initiative is the ESG framework for the manufacturing sector as a guide for businesses and to encourage speedier adoption of ESG principles.

This is to attract FDI and integrate local companies into the global chain.

Mida will continue to support and facilitate investments in the adoption of clean energy sources and technologies as well as the development of the halal and farming sub-sectors.

Other ESG considerations are deforestation, labour standards, corporate governance and transparency in labour sources.

Miti, through Mida, will also further intensify the promotion of foreign investments in 2023 by engaging in more promising activities and direct discussions with potential companies.

Following the recent trade and investment to South Korea, more of such missions are in the pipeline to Japan, Europe, the United States and other parts of the world.

‘Strike force’ sessions, special project missions and specific working visits will be carried out by heads of government, ministries and Mida officials to world-renowned companies with high investment potential.

“Strike force” sessions, led by the Mida management, are targeted one-to-one meetings with potential investors to finalise their investments into Malaysia; the topics discussed are technical and specific in nature.

These topics include, among other things, the terms of incentives, local sourcing opportunities and training for staff.

Intensified engagement sessions will be conducted with new and existing investors via seminars and webinars, roundtable meetings, working visits, one-on-one meetings and networking events by Mida Overseas Centres.

There will also be further strengthening and diversifying of co-operation with chambers of commerce, other investment promotion organisations and agencies, banks and the international business community.

Foreign companies will be assisted via placement of experts in Malaysia to continue contributing to Malaysia’s economic development.

To promote Malaysia’s advantages as a regional investment hub, media promotions will be improved via international and local media as well as electronic platforms.

To ensure that Malaysia remains attractive to investors, the National Investment Aspirations (Nia) which provides the framework for the New Investment Policy (Nip), is set in motion to review investment-related policies.

The Nia aims to restructure the country’s investment strategies to secure more high quality, high impact and capital intensive projects.

Meanwhile, the Nip is expected to propel long-term growth for Malaysia through the flow of sustainable, quality investments in new and complex growth areas.

To help small and medium enterprises, the Domestic Investment Co-ordination Platform (DICP) provides support in terms of:

> Bank co-ordination; DICP will partner a bank to co-organise an event that provides financing facilities to small and medium enterprises.

> Venture capital and private equity: Local champions will be identified for further growth, and assisted in preparing funding proposals and connected to the relevant funding sources.

> Initial public offerings (IPOs); Local champions that are ready to go for IPOs will be identified and assisted in the preparation of their IPO prospectus, identification of underwriters and connection to the relevant authorities.

The government continues to adopt pro-business policies; among the efforts to transform Malaysia into a high income nation driven by the services sector, is the exemption of the 30% bumiputra equity condition.

“It is anticipated that this policy could further catalyse digital investments into Malaysia and contribute towards the government’s target of attracting RM70bil of digital investments by 2025,’’ said Arham.

This exemption applies to purchases of land for data centre projects that are approved by the Malaysian cabinet for land acquisitions valued above RM20mil.

Data centre projects benefiting from this policy must be implemented within two years after the completion date of the title transfer.

The year 2023 promises to be an exciting year for the promotion of foreign investments into Malaysia.

Yap Leng Kuen is a former StarBiz editor. The views expressed here are the writer’s own.

Source: The Star

Attracting more foreign direct investment

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By Tan Sri Dr. Sulaiman Mahbob

It can be said that the recent visit by our prime minister to China, sealing memoranda of understanding with total proposed investments of about RM170 billion, was a success.

It indicates that the investment environment in the country is still attractive.

While the quantum seems large — and it is — one may also reflect on the total investment approvals by the Malaysian Investment Development Authority in 2021 and 2022 — RM264 billion and RM306 billion, respectively. For those two years, the approved investment total is RM570 billion.

Thanks to the Malaysian Investment Development Authority, International Trade and Industry Ministry and Finance Ministry for working hard to secure these proposed investments in these challenging and uncertain times.

What does this tell us? While it suggests that our country is still attractive to investors, it also means we will face a major challenge in meeting the expectations of investors and ensuring that the majority of the approvals are realised in the years to come.

Let’s say 80 per cent of the proposed investments, or RM456 billion, materialises within three years, and let’s apply a simple income multiplier of three, we may generate RM1.37 trillion in income — a big number.

The potential income and employment effects of the investments is very large and can be very impactful.

This can boost our economic growth to beyond the middle income trap numbers. This may not be easy. Much remains to be done at many levels; by state and local governments, for sure.

Additionally, we have to greatly improve infrastructure quality at industrial parks and roads leading to ports, as well as access to power in many locations, such as Sabah. There is also another constraint — the availability of talent and skilled workforce for high-tech industries.

The Economy Ministry, previously the Economic Planning Unit, has the tough task of delivering during the review of the five-year development plan to enhance the quality of infrastructure to assist in the materialisation of the proposed investments, as well as working with other departments to bring about a more liberal regulatory investment and business climate.

We have to speed up the transition of the country’s socio-economy to overcome the middle-income trap, which many nations have struggled with, and to reach high-income per capita status, which our nation has been working towards for much too long.

Political developments have temporarily waylaid us from pursuing solid economic transformation that could have turned us into a high-income economy, the way South Korea has done.

The unity government under the leadership of Datuk Seri Anwar Ibrahim, with its policy of zero tolerance for corruption and abuse of power and emphasis on good governance, augurs well with the younger generation and investors’ expectations for greater transparency and efficiency in the nation’s policymaking and delivery.

As competition for capital and investments grow, especially in the Asean region, which is known for its political stability, Malaysia has to move forward with greater dynamism, and the high quantum of proposed private investments gives us the rationale to do so.

The civil service at all levels — federal, state and local — must be in sync with the government’s long-term Malaysia Madani initiative aimed at bringing about a modern and ethical society with zero corruption, efficient administrative machineries and socio-economic justice where absolute poverty and extreme inequity, in structural and spatial terms, are absent.

This article started with the role of private investments and its significance to income and job creation and ends with a call to not lose sight of the importance of good governance, a clean society and socio-economic justice.

Both are important in our pursuit of achieving long-term sustainable economic growth and development. Indeed, it is, as history may have taught us.

The writer is adjunct professor at the International Institute of Public Policy and Management, Universiti Malaya, and chairman of the Malaysian Investment Development Authority

Source: NST

Malaysia must step up to realise potential of investments

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Source: The Star

Mida: More than 20 China companies show interest

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The increased interest of Chinese companies in Malaysia bodes well for the nation and has elevated Malaysia-China bilateral relations onto the next level, bolstered by renewed confidence in the country’s Unity Government, said International Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz.

In a statement issued by the Malaysian Investment Development Authority (Mida), Tengku Zafrul said the Ministry of International Trade and Industry (Miti) will prove Malaysia to be pro-industry, pro-trade and pro-investment by continuously enhancing the investors’ journey and ease of doing business in this country.

“I would like to congratulate Mida and all related agencies in helping to secure these potential investments (worth RM170 billion).

“Now, the hard work begins for Miti, Mida and other agencies to follow up on and realise these investments within the shortest possible timeline,” said the minister.

Mida chief executive officer Datuk Arham Abdul Rahman meanwhile said through the recent trade and investment mission in China, at the final count, over 20 companies had expressed keen interest to invest in Malaysia’s thriving economy, spanning areas such as petrochemical products, solar and glass products, international data centres, and electric vehicles related parts and components.

Among the companies that are highly interested to invest in Malaysia are Zhejiang Zhink Group, LONGi, GDS, Shanghai DC Science, and ZTE Corporation, all of which have acknowledged the immense potential in Malaysia.

“This accomplishment showcases the government’s commitment to attracting top-tier investments from the world’s leading digital technology adopters and home to one-third of the world’s unicorn,” said Arham.

In 2022, Malaysia recorded RM264.6 billion (US$59.9 billion) in approved investments across the manufacturing, services, and primary sectors.

Out of this, RM55.4 billion (US$12.5 billion) came from China involving a total of 91 projects.

“These ventures have the potential to create 11,545 new job opportunities for the Malaysian workforce, further strengthening the nation’s economic fabric,” said Mida. 

Source: Bernama

Increased Chinese companies’ interest in Malaysia elevates bilateral relations – Tengku Zafrul

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The Malaysian Investment Development Authority (Mida) has entered into a memorandum of understanding (MOU) with DHL Express Malaysia to strengthen the country’s position as an ideal destination for high-quality foreign direct investment (FDI).

Mida deputy chief executive officer of investment promotion and facilitation Sivasuriyamoorthy Sundara Raja said the partnership is aimed at further consolidating Malaysia’s position as an alternative supply chain hub in the region.

“This collaboration is important to Mida. When we do our investment promotion activity around the world, we need to position Malaysia as a global production house, as well as a regional and global distribution hub,” he said.

“The collaboration with DHL Express, which is a world-class service provider, adds value to our proposition when we negotiate for more investments into the country,” he told the media after the signing ceremony here on Thursday (March 30).

Earlier, the MOU signing ceremony was formalised between Sivasuriyamoorthy and DHL Express Malaysia and Brunei managing director Julian Neo, witnessed by Mida chairman Tan Sri Sulaiman Mahbob.

Sivasuriyamoorthy noted that DHL Express provides comprehensive services, including air freight and sea freight, and a data centre as well as upcoming state-of-the-art facilities that would help Mida in attracting more FDI into Malaysia.

“As an investment promotion agency, Mida will also be able to work with DHL Express’ clients globally, and convince them to come and set up their operations in Malaysia,” he said.

In addition, he highlighted that the collaboration will also pave the way for more investment opportunities, in line with 16 free trade agreements implemented, including the recent Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

“The RCEP and CPTPP opened up new markets altogether in countries such as Mexico, Canada, Peru, and Chile. Having DHL Express to export to these markets is a direct advantage of this collaboration,” he added.

Meanwhile, Julian noted that the MOU underscores the shared commitment to strengthening Malaysia’s position as a preferred destination for FDI by deepening the contribution of the logistics industry.

“As the world’s leading international express service provider, we enable greater ease of doing business, as well as provide companies with greater access to the lucrative Southeast Asian and Asia-Pacific markets.

“We continue to leverage our unique position to assist foreign enterprises and multinationals to tap into opportunities here and around the region,” he said.

Source: Bernama

MIDA inks MOU with DHL Express Malaysia to attract high-quality foreign direct investment

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Semicon Southeast Asia (Semicon SEA 2023), the region’s premier gathering for the semiconductor and microelectronics industry, will focus on critical growth areas of the industry.

The areas include sustainability, smart manufacturing, smart mobility, smart medical technology and workforce development.

Semiconductor Equipment & Materials International (Semi) president for Southeast Asia, Linda Tan said the event will also gather industry leaders to explore ways for the electronics industry to build a more robust supply chain, as it navigates the current economic downturn and ongoing disruptions.

“With global electronics supply chains being redrawn as a result of geopolitical forces, more global players are shifting their attention to Southeast Asia, where much of the world’s semiconductor manufacturing capabilities are concentrated.

“We look forward to hosting industry leaders at Semicon Southeast Asia 2023, as they gather to discuss how they can build on Southeast Asia’s strengths to help increase global supply chain resilience, and better position the industry to seize the innovation and growth opportunities ahead,” she said in a statement on Wednesday (March 22).

Themed “Boosting Agility and Resiliency for the Electronics Supply Chain”, the event will be held at the Setia SPICE Convention Centre, Penang from May 23-25, 2023.

Among highlights of the event will be roundtable discussions on investment opportunities in Southeast Asia, forums, and start-up showcases featuring the latest innovative semiconductor manufacturing solutions that are available in the market.

It is organised in partnership with the Ministry of International Trade and Industry (Miti), the Malaysian Investment Development Authority (Mida) and InvestPenang.

Mida chief executive officer Datuk Arham Abdul Rahman said that Malaysia, as Southeast Asia’s semiconductor hub, has vast potential to leverage global demand and expand its already robust existing semiconductor ecosystem in the coming years.

“Semicon Southeast Asia presents a great platform for businesses to connect, engage and widen their strategic networks.

“With the presence of international firms at the event, Malaysia will showcase the vibrancy of its electrical and electronics (E&E) industry and offer more opportunities for global industry players to expand their supply chains to include this key sector,” he said.

Arham noted that this sector continues to contribute significantly to the Malaysian economy and had in 2022, recorded a total of RM84.3 billion or 31.9% of total approved investments in various economic sectors.

E&E remained the top-performing industry in the manufacturing sector, with total approved investments of RM29.3 billion.

Source: Bernama

Semicon SEA 2023 to spotlight electronics supply chain resilience, sustainability

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A consortium of companies from South Korea are in its final investment decision process on making an investment in the hydrogen sector in Malaysia for the upcoming years, said Malaysian Investment Development Authority (MIDA).

MIDA chief executive officer Datuk Arham Abdul Rahman noted that the interested parties have indicated their intention to come to Malaysia and start investing in building infrastructure for the production of hydrogen in the country.

He said the investment leads in the hydrogen energy sector are part of the secured RM24 billion potential investment during the recent trade and investment mission (TIM) led by the Ministry of International Trade and Industry (MITI) to South Korea.

“Since the state of Sarawak has initiated its focus on hydrogen economy, there is very positive traction, especially from South Korea, Japan and other countries that have the technology and are interested in investing here,” he told the media after the opening of the inaugural Hydrogen Economy seminar here today.

During the recent TIM, he said there was a consortium comprising two to three South Korean companies that are working together and indicated their interest to invest in Malaysia, particularly in Sarawak.

“This is not in the long term, but quite immediate within two to three years,” he said.

Meanwhile, Deputy International Trade and Industry Minister Liew Chin Tong said during his keynote address that MITI is ready to engage with relevant stakeholders to identify the right incentives and facilities to attract investments in hydrogen production, infrastructure and ecosystem development.

He said this includes tax breaks, capital allowances, financial assistance as well as research and development that will facilitate the country’s transition to a hydrogen economy.

“The hydrogen economy is just at the beginning. Much as there are still too many unknowns, there are many opportunities ahead too,” he added.

Liew said the Ministry of Science, Technology, and Innovation together with the National Nanotechnology Centre are currently drafting the National Hydrogen Strategy.

“Once agreed upon and implemented, MITI will engage with relevant stakeholders,” he said.

Earlier during the opening ceremony, Liew also officiated at the launch of the Malaysian Association of Hydrogen Energy (MAHE) membership to industry players, allowing stakeholders to exchange views and provide inputs as well as advocate policy recommendations relating to the hydrogen economy.

The one-day conference themed ‘Hydrogen Economy – Building a sustainable ecosystem in shaping the future of energy, materials and infrastructure’ aimed to promote investments in the hydrogen economy in support of the government’s agenda in attracting quality and sustainable investments.

Source: Bernama

MIDA: Consortium of South Korean companies in final decision to invest in Malaysia’s hydrogen sector

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The Malaysian Investment Development Authority (MIDA) and Johor government organised the Johor leg of MIDA’s ‘Invest Series: Unfolding States Business Potential’ programme to showcase the investment opportunities in the state.

The event at MIDA’s headquarters attracted 400 participants, including captains of industry, government officials, entrepreneurs and senior managements from various sectors.

The programme started with a welcome address by MIDA chief executive officer Datuk Wira Arham Abdul Rahman and a keynote address by Menteri Besar Datuk Onn Hafiz Ghazi.

Onn Hafiz spoke about the latest Johor Development Plan and the state’s investment aspirations, calling the state the “southern jewel of Malaysia”.

“Johor’s total approved investments for last year reached an all-time high of RM 70.6 billion, which is the highest in the country.

“Since taking over the helm of the state government last year, my colleagues and I have worked tirelessly to enhance our economic resilience by assisting the people in cushioning the impact from price increases and facilitating business recovery.

“We have sought to generate quality investments, secure more job opportunities and put in place the building blocks of a more dynamic, inclusive and sustainable economy.

“We are consistent in our efforts to ensure the rapid recovery of our economy, while strengthening its resilience to new challenges posed by the changing landscape of the global economy.

“There is a lot still to be done and we must keep focused on the bigger picture and the longer game of creating a dynamic, inclusive and sustainable economy for Johor and Malaysia,” he said.

Arham highlighted the country’s investment performance this year.

“Malaysia has attracted RM264.6 billion in approved investments in the services, manufacturing and primary sectors last year, creating 140,370 jobs in the country.

“Johor played a significant role, accounting for a substantial portion of approved investments at RM70.6 billion.

“Congratulations to Johor for showcasing its economic potential through its attractive investment climate and strategic location, and for its outstanding contribution to Malaysia’s economy.”

He added: “As part of its commitment to boosting domestic investment, the government, in collaboration with MIDA, has undertaken several initiatives aimed at attracting investment to Johor and other states.

“From the MIDA Invest Series to the Domestic Investment Coordination Platform, the SME Investment Desk and joint programmes with local industry associations and chambers of commerce, these efforts are designed to create a conducive environment for businesses to thrive.

“The Domestic Investment Seminar, Domestic Specific Project Mission, Industry Linkage Programme and Supply Chain Programme are also in place to help foster partnerships and drive innovation.”

Over the years, Johor has remained a crucial gateway for the country, thanks to its advanced infrastructure projects.

Some of the most vital infrastructure developments in Johor are the connections to Singapore, including the Johor-Singapore Causeway built in 1924 and the Tuas Second Link bridge constructed in 1998, both of which have played a significant role in linking Singapore and Malaysia via Johor.

Johor also offers other excellent infrastructures for investors, such as the Senai International Airport and three ports — Pasir Gudang, Tanjung Pelepas and Tanjung Langsat — positioning Johor as a hub for investments.

MIDA continues to promote the digital tech sector, including data centres, cybersecurity, artificial intelligence and creative and digital content, such as gaming and animation, as well as system integrators and solution providers, to make Malaysia the region’s tech launchpad.

Data centre investments in Johor totalled RM51.1 billion last year. MIDA welcomes investments from leading data centre companies to tap into the vast market demand for such services by building a critical presence in Malaysia.

Source: Bernam

MIDA, Johor collaborate to highlight state’s investment potential

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Malaysia needs to develop new growth areas, including the renewable energy and electric vehicle (EV) sectors, to increase the demand for semiconductor chips in this country.

Malaysian Investment Development Authority (MIDA) deputy chief executive officer (investment development) Lim Bee Vian said the demand would strengthen Malaysia’s economic growth as one of the main suppliers in the global semiconductor chain.

“Malaysia (despite) being a small country contributes between 12 per cent and 13 percent to the global chip supply. So we are important in that sense.

“We should promote the EV sector as a new growth area because this sector will help increase the demand for chips,” she said during a press conference and a meeting between EG Industries Bhd and MIDA on Smart Warehouse and International Procurement Centre (IPC) here today.

She said IT infrastructure services and solutions another area that needed focus to ensure that the demand for chips remained high.

Lim said the awareness among industry players on the need to adopt smart warehousing is growing because it improves efficiency.

“The investment for smart warehousing is high. Big companies are moving toward that direction, especially big logistic companies. Small companies may have certain elements of smart warehousing but these are not fully integrated.

“MIDA encourages companies to upgrade their warehouses because this will help decrease the need for foreign labour to run their warehousing operations and also to raise efficiency,” she said. 

Source: Bernama

Develop new growth areas to raise semiconductor demand: MIDA

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Malaysia has attracted a total of RM163.3 billion of foreign direct investment (FDI) or 61.7 per cent in last year’s total approved investments while domestic direct Investment (DDI) contributed RM101.3 billion or 38.3 per cent of the total sum, said Malaysian Investment Development Authority (Mida) in a media statement today.

According to Mida, China has dominated 33.9 per cent of foreign investments with RM55.4 billion.

This is followed by the United States with 17.9 per cent or RM29.2 billion, the Netherlands with 12.5 per cent or RM20.4 billion, and Singapore with 8.3 per cent or RM13.5 billion.

The statement also said that five states have seen significant investment activity, with Johor having the most approved investments, totalling RM70.6 billion.

This is followed by Selangor with RM60.1 billion, Sarawak with RM28.2 billion, Kuala Lumpur with RM25 billion, and Penang with RM16.3 billion.

Meanwhile, the national investment agency said that FDI accounted for 55.1 per cent or RM84.9 billion of total approved investments in the service sector and 78.3 per cent or RM66 billion of total approved investments in the manufacturing sector.

The only sector in that DDI has played a major role is the primary sector, which saw a contribution of RM13.9 billion or 52.9 per cent, while DDI accounted for the remaining 47.1 per cent or RM12.4 billion.

Earlier today, Minister of Domestic Trade and Industry Datuk Seri Tengku Zafrul Abdul Aziz said Malaysia recorded a total of RM264.6 billion in approved investments last year which translated to 4,454 projects creating 140,370 job opportunities.

Tengku Zafrul added that the service sector dominated last year’s total approved investments which recorded 3,581 projects worth RM154 billion, or 58 per cent of the total sum.

Source: Malay Mail

MIDA: China leads FDI contribution with one-third of total RM163b, while Johor the biggest beneficiary

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Malaysia’s approved investments amounted to RM264.6 billion in 2022, with the services sector accounting for the largest share of the pie, followed by the manufacturing and primary sectors.

The services sector saw approved investments totalling RM154 billion or 58.2% of the total approved investments for the year.

Meanwhile, approved investments in the manufacturing sector stood at RM84.3 billion (31.9%) and primary industry at RM26.3 billion (9.9%), said International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He noted that the total approved investments were the second-largest print ever recorded after 2021.

“There were two large one-off investments that happened in 2021 from Intel and China’s Risen Energy Co Ltd,” he told reporters during the Malaysian Investment Development Authority (Mida) media conference on Malaysia’s investment performance for 2022.

Earlier in his speech, Tengku Zafrul said foreign direct investments (FDIs) accounted for 61.7% or RM163.3 billion of the total approved investments, while domestic direct investments (DDIs) contributed 38.3% or RM101.3 billion.

He added that last year’s approved investments are expected to create 140,370 jobs in the country.

China accounted for the biggest FDIs at RM55.4 billion, followed by the United States (RM29.2 billion), the Netherlands (RM20.4 billion), Singapore (RM13.5 billion) and Japan (RM11.4 billion).

A large proportion of the approved investments took place in Johor (RM70.6 billion), followed by Selangor (RM60.1 billion), Sarawak (RM28.2 billion), Kuala Lumpur (RM25.0 billion) and Penang (RM16.3 billion), he said.

“This must be improved further in the near future, especially with our renewed focus on an effective economic policy, favourable investment environment, political stability, and more coordinated investment promotion by all agencies, both at the federal government and state levels,” Tengku Zafrul said.

In his speech, Tengku Zafrul highlighted that Malaysia’s New Investment Policy reforms are consistent with the 12th Malaysia Plan (12MP), which is aimed at resetting the nation’s economy by enhancing security, promoting well-being and inclusivity, and advancing sustainability.

“Malaysia is also putting in all efforts to emerge rapidly as Asean’s digital hub, driven by several key factors, including its highly developed information and communications technology infrastructure, strong intellectual property protection framework and talent pool,” he said.

Tengku Zafrul said the International Trade and Industry Ministry (Miti)’s “Academy in Factory” initiative under Budget 2023 will also ensure a steady stream of skilled labour that matches industries’ needs.

“Such measures will continue to make Malaysia an appealing destination for businesses looking to expand their digital capabilities and regional footprint,” he said.

As for the investment outlook for 2023, he said the moderation in global economic growth may impact investment decisions globally. 

“The International Monetary Fund (IMF) and the World Bank projected a positive but slower economic growth compared to the previous years, so investments will also be impacted, as it also depends on demand.

“Investment decisions are a little different from trade as (they are) based on long-term plans. The important thing is the country’s fundamentals,” he said.

Tengku Zafrul added that despite global challenges such as inflationary pressures, economic uncertainty, and climate change, Malaysia’s economy is expected to remain resilient this year.

He noted that the World Bank has forecasted a positive outlook for Malaysia, with an estimated growth rate of 4.0%, while the IMF is anticipating a growth of 4.4%, which is in line with the government’s recent growth forecast of approximately 4.5%.

“In addition to our ongoing targeted trade and investment missions, we have continued to take part in  multilateral free trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). 

“This will increase investors’ confidence in our country and in turn, enhance the livelihoods of Malaysians and the business communities,” he said.

Source: Bernama

Zafrul: Malaysia attracted RM264.6b approved investments in 2022, second largest ever recorded

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The Malaysian Investment Development Authority (MIDA) has a number of promising projects in the works with potential investments totalling RM14.6 billion.

The manufacturing sector has 31 projects with a potential investment of RM10.6 billion, while the services sector has 218 projects with a potential investment of RM4 billion.

Chairman Tan Sri Dr Sulaiman Mahbob said, despite the global economic landscape’s challenges, Malaysia has shown unwavering determination in navigating these difficult times.

This reflects the Ministry of International Trade and Industry( MITI) and MIDA’s commitment to promoting sustainable economic growth and job creation in Malaysia, he said during the MIDA annual media conference on Malaysia’s investment performance for 2022 here, today.

“We are focused on attracting more high-quality and sustainable investments. Hence, we are expanding our presence into new high-value clusters so as to create a high return to the economy,” he said.

Sulaiman said to transform Malaysia into a supply chain hub in Asia, MIDA aspires to entice new high-value investments in the technology sector, accelerate the digital economy to innovate service and commercial products, extend domestic linkages, and build new bilateral and trade relations to ensure the country remains as an ideal destination for Fortune 500 companies and emerging unicorns.

“Malaysia has seen immense success over the past five decades, and we are determined to keep pushing forward for new markets and empowered communities,” he noted.

Source: Bernama

MIDA has 249 projects with potential investments of RM14.6 bln in pipeline

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The Malaysian Investment Development Authority (MIDA) is expected to announce its foreign direct investment (FDI) target next Wednesday (March 8), said International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

“MIDA will be there to announce the investment numbers. I am pushing MIDA for an aggressive target because I think we should be aspirational,” Tengku Zafrul said at the book launch of Mengharungi Badai Ekonomi: Mengemudi Bahtera Menelusuri Gelombang Covid-19 in Kuala Lumpur on Friday (March 3).

When asked about Malaysia’s political readiness for investments, Tengku Zafrul highlighted that one of the reasons Amazon had committed to make its massive investment of RM25.5 billion here is due to the country’s political stability.

“The stability of the economy and the stability of the country are important to them,” he said.

On Thursday (March 2), Amazon Web Services (AWS) announced its AWS infrastructure in Malaysia to increase the country’s digital adoption, by investing RM25.5 billion in the next few years until 2037.

Meanwhile, Tengku Zafrul acknowledged that the launching of New Industrial Master Plan 2030 was delayed as further reviewing is needed.

“Because of the changes after the pandemic, the geopolitics have changed, [such as] the trade wars, the war in Ukraine. We have to refocus to make the plan relevant and to make it more current with the global [situation],” said Tengku Zafrul, adding that the change of government did not influence the review.

Source: The Edge Markets

MIDA to announce ‘aggressive’ FDI target on March 8, says Zafrul

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Green technology projects worth RM4.9 billion have been approved by the Malaysian Investment Development Authority (MIDA) from January 2021 to September last year.

International Trade and Industry Minister Senator Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the investments, mostly in renewable energy (RE) and energy-efficiency projects, were expected to see 1,500 new jobs created.

He said the ministry, through MIDA, was proactively encouraging investments which emphasised sustainable development based on environment, social and governance (ESG) in line with the New Investment Policy launched on Oct 6, last year.

He said the ministry, in collaboration with other agencies under its jurisdiction, was drawing up the i-ESG framework for the manufacturing sector, expected to be completed next year.

“(The framework is a measure) to encourage the sector to adapt ESG with four main components, namely, standards, financing and incentives; capacity building and marketing mechanism, including carbon trade and carbon pricing,” he said in parliamentary written reply to a question from Datuk Indera Mohd Shahar Abdullah (BN-Pay Besar).

Tengku Zafrul said among the initiatives and grants to encourage investors to explore projects that support sustainable development and adopt the ESG principles were Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE).

The tax reliefs, he said, would encourage companies to undertake green technology projects such as RE, including solar and mini hydro with energy-efficient equipment and solar panel rental service.

He said other measures under the Investment Incentives Act included encouraging investments in circular economy or recycling, use of palm oil biomass for added value and production of biodegradable household items, as well as incentives for automotive sector to produce parts for energy efficient vehicles (EEVs) and electric vehicles (EVs).

He said sustainability was a core policy under Malaysia Madani, a main theme under the 12th Malaysia Plan.

“The five-year development plan for 2021 to 2025 with the objective ‘Malaysia Makmur, Inklusif dan Mampan’ (Prosperous, Inclusive and Sustainable Malaysia) to reduce Greenhouse Gas (GHG) emission intensity based on Gross Domestic Product by 45 per cent in 2030, is in line with the government’s aspiration to achieve net zero GHG by 2050.”

Source: NST

Green projects worth RM4.9bil approved, will create 1,500 jobs – Tengku Zafrul

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By : Malaysian Investment Development Authority

Malaysia’s energy sector has come a long way since its early years. Over the last 50 years, we have moved from oil to natural gas for cleaner power generation. We have also seen more solar energy use, particularly on rooftops, ground mounts and floating.

With challenges brought about by climate change, we will need to change the way we use and produce energy. This is particularly so if our energy demand continues to rise with our economic development.

Advancing Malaysia’s Energy Transition towards a More Sustainable Manner

Climate change is a global existential threat and Malaysia is doing its part to reduce emissions for a more sustainable future. Malaysia is harnessing natural gas and solar energy, and embracing low carbon emissions – to transform its energy supply, while promoting energy efficiency. At the 26th UN Climate Change Conference of the Parties (COP26), 2021, the world targeted to limit temperature rise to 1.5°C, with over 100 countries making net-zero 2050 commitments, including Malaysia alongside the US, Australia and Europe.

MIDA emphasised, “We need to significantly reduce the power sector’s emissions, while ensuring that the power system remains secure, reliable and sustainable. Malaysia is, therefore, harnessing natural gas and solar energy, and embracing low carbon emissions – to transform its energy supply while strengthening energy security, environmental quality and economic vitality”.

Why is renewable energy in Malaysia so essential?

[1]The Twelfth Malaysia Plan (12MP) recognises the importance of environmental sustainability and the implementation of green initiatives that will be accelerated to ensure sustainable, responsible and resilient socio-economic growth.

Aligning with 12MP and the nation’s pledges made collectively at COP26, Malaysia has demonstrated a strong commitment to the adoption. By outlining the Green Technology Master Plan (GTMP), it will provide strategic direction for achieving goals set for economic growth. [2]The GTMP aims to identify potential economic contributions, outline ways to shift from technology adoption to technology production, and aims to reduce greenhouse gas (GHG) emission intensity by 45 per cent across the economy, based on the Gross Domestic Product (GDP), by 2030.

In 2021, the then Ministry of Energy and Natural Resources of Malaysia (KeTSA) set a target to reach 31 per cent of RE share in the national installed capacity mix by 2025[3]. Renewable energy is currently contributing 23 per cent to Malaysia’s energy mix[4] dominated by hydropower generation.

As such, renewable energy plays one of the most important roles in reducing greenhouse gas emissions. It is one of the few clean, safe, and viable forms of alternative resources to fossil fuels. As more investments emphasised on renewable energy research and development in Malaysia towards a lower carbon pathway, it will evolve into a much more competitive product as technology advances, making it more accessible and affordable for the masses.

The lower environmental impact that comes from using hydropower, solar power, and other viable forms of sustainable energy is pivotal in ensuring a significant reduction in pollution being emitted from commercial production and consumption of and for the population.

Areas of Opportunity in Renewable Energy

The industries listed below are some that MIDA has identified as offering excellent investment opportunities to foreign and local investors in Malaysia (6).

Biomass/Biogas: Malaysia produces at least 168 million tonnes of biomass, including timber and oil palm waste, rice husks, coconut trunk fibres, municipal waste and sugar cane waste annually[5]. As a major agricultural commodity producer in the region and thriving forest sector, Malaysia is well positioned amongst the ASEAN countries to promote biomass as a renewable energy source[6].

With more than 451 mills in Malaysia, processing an average of 95.5 million tonnes of fresh fruit bunch (FFB) annually[7], the waste from palm oil processing can be utilised as feedstock for bioenergy power generation through biomass combustion or biogas capture technologies.

Apart from that, fast-growing cities and the ballooning population in Malaysia contribute to the increase in the production of municipal solid waste. It is estimated that 14 tonnes of garbage are expected to be collected in 2022, nearly 40,000 tonnes a day, and 95 per cent will end up in landfills[8]. This can potentially be used for bioenergy power generation, leveraging Waste-to-Energy (WTE) technologies. To accelerate the transition of solid waste management from a linear economy to a circular economy, the government could leverage available bioenergy feedstock from municipal solid waste to develop WTE facilities as a two-pronged strategy in addressing the waste management issue and supplying energy to the national grid.

Solar Photovoltaic (PV): Malaysia’s proximity to the equator provides strong solar irradiance in the range of 1,575 – 1,812 kWh/m2 throughout the year,[9] making Solar PV to be considered a viable renewable energy option in Malaysia. It is estimated that there is 269 GW potential for solar PV, dominated by ground-mounted configurations (210 GW), including considerable potential from rooftop (42 GW) and floating configurations (17 GW)[10]. Malaysia has successfully promoted the growth of investments in renewable energy (RE), particularly in solar PV. The investment has contributed towards developing the entire value chain industry, from manufacturing of RE equipment to installing RE equipment to generate energy.

Moreover, investment in RE from solar PV has also catalysed the growth of local RE developers and PV service providers capable of implementing project implementation in the design, installation, testing, and commissioning of solar PV projects in Malaysia. More than 200[11] PV service providers have registered with the Sustainable Energy Development Authority (SEDA).

Mini Hydro: Malaysia has numerous river basins with excellent hydrogeological conditions for hydropower generation. It is estimated that a 2.5 GW resource potential for small hydro with 189 rivers can support small hydropower generation[12]. Hydropower could contribute significantly to the reduction of GHG emissions and to the security of energy supply. Its development requires a relatively high initial investment but is offset by a long lifespan with very low operation and maintenance costs[13].

Geothermal: A study commissioned by the Minerals and Geoscience Department of Malaysia in 2009 has identified 67 MW of geothermal resource potential in Tawau, Sabah. A separate study in 2016, by the Minerals and Geoscience Department of Malaysia, found an additional 162 MW of geothermal resource in Ulu Slim, Perak[14]. The availability of geothermal sources could be developed and considered a potential RE in the long run.

Wind: Wind speed in Malaysia is generally low on average, less than 5 m/s. A few locations in Peninsular Malaysia and northern Sabah were found to have sufficient strong wind conditions that may be suitable for wind turbine installation[15]. Low electricity yield, scarce site accessibility and high installation cost make wind power generation in Malaysia uneconomical. However, continued development in low wind speed technology may improve the economics for wind turbine installation in the future.

With all of these opportunities, MIDA believes Malaysia has a great chance to draw more investors and complete its mission by 2025. Additionally, there are a number of incentives and policies available to investors in Malaysia that can be used to their advantage. Having said that, MIDA will keep facilitating and luring top-notch investments in renewable energy that will produce high-paying jobs for the nation.

Source: Bernama

[1] MIDA RENEWABLE ENERGY (Industry Brief as at 31 Dec 2021)

[2] MIDA Malaysia’s renewable energy outlook 2022

[3] https://www.seda.gov.my/reportal/myrer/

[4] Page 106, MyRER 

[5] https://www.bioenergyconsult.com/bioenergy-developments-malaysia/

[6] https://www.bioenergyconsult.com/bioenergy-developments-malaysia/

[7] Page xiii, MyRER 

[8] Can Malaysia achieve 40 per cent recycling rate by 2025?

[9] Page xiii, MyRER 

[10] Page xiii, MyRER 

[11] Latest figure provided by SEDA Malaysia.

[12] Page xiii, MyRER 

[13] https://www.waterpowermagazine.com/features/featureharnessing-hydropower-in-malaysia-8396270/

[14] Page 42, MyRER 

[15] Page 43, MyRER 

Malaysia’s Approach towards Renewable Energy

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The Malaysian Investment Development Authority (MIDA) approved total foreign direct investment (FDI) of RM392.9 billion between 2018 and 2021, of which RM300.5 billion or 76.5% had been realised as at end-2021. 

“The Ministry of International Trade and Industry (MITI) will not just focus on increasing the value of approved FDI, but also intensify the strategy to realise FDI, which will translate into economic activities that deliver positive impact on the country,” said Deputy Minister Liew Chin Tong in the Dewan Rakyat on Tuesday (Feb 14). 

Liew was responding to Titiwangsa Member of Parliament Datuk Seri Johari Abdul Ghani, who asked MITI to state the amount of FDI realised each year versus the amount of investment approved by MIDA for 2018 to 2022. 

Of the total FDI approved between 2018 and 2021, RM350.6 billion were under the manufacturing sector, followed by RM42.3 billion under the services sector, said the Iskandar Puteri MP. 

The DAP lawmaker also said the main FDI projects realised under the manufacturing sector were within the electrical and electronic industries, while the major drivers for realising FDI in the services sector in 2018-2021 were sub-sectors like the establishment of principal hubs, support services and healthcare services. 

“Normally, execution of these projects takes one-to-two years to be realised depending on the project’s scale and the ongoing economic situation,” he said, adding that the official data for approved FDI in 2022 will only be finalised by end-March this year. 

Liew also listed some of the high-profile projects approved below: 

Projects in January-September 2022:

  1. Samsung SDI Energy Malaysia Sdn Bhd’s establishment of an electric vehicle battery cell manufacturing facility in Malaysia, with a combined investment of RM7 billion in two phases, where the first phase involves RM1 billion investment, followed by the remaining RM6 billion in the second phase.   
  2. TF-AMD Microelectronics Sdn Bhd announced plans to expand its manufacturing facilities at the Batu Kawan Industrial Park in Penang, with capital expenditure of almost RM2 billion, expecting to create over 3,000 jobs in fields like semiconductor engineering, design and technology processes for high-performance computing solutions. 
  3. Ferrotec Holdings Corp announced an investment of over RM500 million for the construction of new manufacturing facilities in the Kulim Hi-Tech Park, Kedah, for electro-mechanical assembly work and fabrication of advanced materials for semiconductor equipment. 
  4. Smart Glove Holdings Bhd, which produces various types of medical gloves from nitrile, natural rubber, polychloroprene and other synthetic rubber, expanded its production capacity with investment amounting to RM2 billion.

Projects in 2021: 

  1. Risen Solar with RM42.2 billion investment for design development activities and manufacturing of solar modules and cells. 
  2. RM30 billion investment approved for Intel Electronics. 
  3. RM8.5 billion investment approved for AT&S, an Austrian company, for design development and manufacturing of integrated circuit substrate at the Kulim Hi-Tech Park, Kedah. 
  4. SK Nexilis announced its first overseas production base in Sabah, with approved investment of RM4.29 billion. 
  5. Infineon Technologies (Malaysia)’s RM3.25 billion investment in Melaka.
  6. Taiyo Yuden’s RM680 million investment for production of multilayer ceramic capacitors in Sarawak.

Source: The Edge Markets

MIDA-approved FDI at RM392.9b for 2018-2021, says deputy minister

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Malaysia can position itself as a regional logistics hub as the industry is recognised as essential to stimulating trade, facilitating business efficiency and spurring economic growth.

Logistics in Malaysia has evolved in recent years, underpinned by strong growth enablers such as improved infrastructure, rising freight volumes and structural growth in e-commerce. The logistics industry is also the backbone of Malaysia’s supply chain ecosystem.

While the current market landscape is still fragmented with a large number of players across the value chain, market consolidation is expected with two broad categories of logistics providers emerging — large integrated logistics players that capitalise on their scale and reach and niche market players.

National logistics industry overview

The Transport Ministry has formulated the National Transport Policy (2019-2030) to improve logistics connectivity to cater to the e-commerce boom, continuous ports upgrade and expansion plans, and enhance productivity and increase competitiveness.

Being the world’s 24th largest trading nation in 2021, logistics plays an integral role to enable Malaysia’s supply chain growth, and with the rise of e-commerce, companies are capitalising on this emerging trend.

Companies’ interest in emerging areas, such as cold chain logistics, last-mile delivery services and so on is growing, due to high margins and rising demand.

In this vein, the Malaysian government has laid out various efforts and plans to assist local players to move up their value chain to increase their global competitiveness.

FDI and international integrated logistics services

A government initiative to promote logistics industry growth is the international integrated logistics services (IILS) status. It is granted to companies capable of providing integrated and seamless logistics services door-to-door along the value chain as a single entity on a regional or global scale.

The IILS status does not impose any equity restrictions and encourages foreign direct investment (FDI) inflows into Malaysia through direct establishment or collaboration with local players.

Malaysian Investment Development Authority (Mida) services development executive director Zuaida Abdullah said initiatives such as the integrated logistics services (ILS) incentive and IILS status are seen as stepping stones for local companies to provide comprehensive services to further expand their market, serving both domestic and global markets.

“Mida has enlisted the help of several multinational ILS providers to collaborate on the development of the local industry. Through these engagements, several memoranda of understanding (MoU) were signed to strengthen these collaborations. Partnerships and co-innovation will be increasingly vital to transform the industry,” she told Bernama at Mida headquarters recently.

Mida has signed MoUs with AP Moller-Maersk (Maersk) and DHL to drive high-quality investments into Malaysia as an Asean logistics hub. The memoranda aim to create better synergies and value-added services for customers, as well as contribute to the growth and development of the supply chain sector in the local economy.

Furthermore, these MoUs are expected to benefit local players by leveraging multinational companies’ (MNCs) capabilities in integrated logistics ecosystems.

Zuaida said Mida continues to promote the industry’s development through the ILS incentive and the IILS status programmes and aspires to nurture more local companies to become future regional or global players.

“Since the introduction of the IILS status in 2008, Mida has issued approvals for 259 IILS status, the majority of which were Malaysian-owned logistics companies. Out of the total, 223 were local companies, while the remaining 36 were foreign companies.

“As for tax incentives, 105 projects with a total investment of RM10.15 billion were approved,” she said.

Zuaida also said that between January and September 2022, Mida issued approvals for 19 IILS status, with a total investment of RM156.59 million. Two projects, with total investments of RM874.24 million, were given tax incentives.

Further boost to logistics services

Mida will continuously scout, attract and facilitate high technology, knowledge-based, and capital-intensive investments to generate multiplier effects for the economy.

The pandemic has accelerated the need for digitalisation across the business landscape. As logistics is key to a wide range of sectors, the rate of digital disruption to traditional supply chain processes will intensify alongside other sectors’ progress.

Zuaida highlighted that programmes and initiatives are aimed at strengthening digital connectivity, enhancing the capability of existing workforce, and developing new talents and skills, among others.

“During this period of change, Malaysia has all the necessary ingredients to succeed. Continuous efforts to further improve logistics infrastructures, reduce red tape, and enhance trade relations between the partnering countries are crucial as well as providing a seamless experience for logistics players in their supply chains,” she said.

Challenges and strategies moving forward

Mida encourages local companies to partner global players to leverage their vast experience, capacity, and capabilities.

Through such collaborations, local companies could tap into MNC expertise to bring about know-how and technology transfer.

Zuaida said that Mida’s supply chain programme aims to create opportunities for domestic companies and also support MNCs to outsource manufacturing activities to domestic companies.

“It develops and upgrades domestic companies for domestic investment growth, and encourages the adoption of automation and the Fourth Industrial Revolution (4IR) by MNCs and their vendors.

“Mida also organises supply chain conferences with selected anchor companies involving MNCs and domestic companies on a regular basis.

“Among the anchors that Mida has collaborated with in 2022 include AT&S and VAT Manufacturing Malaysia. The objective of this conference was to increase the benefits provided by MNCs to the local business community,” she said.

Malaysia wants to ride on the environmental, social and governance (ESG) principles as part of today’s global megatrends.

“The New Investment Policy outlines significant strategies to reinvigorate and catalyse Malaysia’s investment ecosystem to achieve sustainable economic growth, provide high-quality and high-tech employment opportunities, and improve people’s lives and livelihoods as well as secure shared prosperity,” she added. 

Source: Bernama

MIDA: Malaysia poised to become major regional logistics hub

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The Malaysian Investment Development Authority (MIDA) is on track to achieve its RM70 billion target for digital-related investments in line with the Malaysia Digital Blueprint’s (MyDIGITAL) strategies.

With robust strategies in place to ensure that digital-related investments remain competitive in the country, the Digital Investment Office (DIO), a collaborative platform between MIDA and the Malaysia Digital Economy Corporation (MDEC), has successfully facilitated a total of RM66.47 billion investments as of September 2022, which is over 99% of the target under the MyDIGITAL initiative.

Notable data centre and data hosting projects approved, including the People’s Republic of China’s Bridge Data Centres Malaysia III Sdn Bhd and ByteDance System Sdn Bhd, as well as Malaysian public-listed company YTL Power International Bhd, is a testament to Malaysia’s readiness to host more digital investments projects.

MIDA executive director (services development) Zuaida Abdullah said digital adoption among businesses in the country is accelerating, although it is still low among small and medium enterprises (SMEs) due to barriers such as technology costs and the absence of digital strategies.

“Digitalisation by businesses is more common today. Although the journey can be challenging for SMEs, they should embrace technological advancements such as artificial intelligence (AI), Internet of Things (IoT) and Big Data.

“To this end, MIDA is facilitating industry players in their digital transformation journey in order to reduce the digital divide between Malaysian SMEs and multinational companies (MNCs) in Malaysia,” she told Bernama in an exclusive interview recently.

MIDA collaborated with the Malaysia Productivity Corporation (MPC) and Intel Malaysia to launch the ‘AI for SMEs (AI4S) Programme’ proof of concept project compilation booklet on June 22, 2022, which featured 31 completed pilot projects.

A total of 100 SMEs were selected to participate in the AI4S programme whereby they underwent a comprehensive technology-enabling process and training to implement personalised pilot projects for their businesses to jump-start their AI technology adoption journey.

Setting up of MIDA’s Digital Investment Office (DIO) and Domestic Investment Coordination Platform (DICP)

MIDA and MDEC had set up the DIO in 2021 to attract, coordinate, promote and facilitate all digital investments in Malaysia, in addition to strengthening coordination among all investment promotion agencies (IPAs) in the country.

The move was endorsed by the National Council of Digital Economy and the Fourth Industrial Revolution (MED4IR).

According to Zuaida, the setting up of the DIO was timely and in line with the global investment shift towards digitalisation and Industrial Revolution 4.0 (IR4.0), creating unique and interesting value propositions to attract more digital-related projects.

“The DIO engages and collaborates with the federal and state governments, service providers, IPAs, technical agencies and other related departments.

“It leverages MIDA’s global network of 21 offices overseas and 12 regional offices throughout Malaysia to meet investors on the ground and assist them with the implementation of their projects,” she added.

Meanwhile, the DICP was set up in 2018 to assist and facilitate local companies, especially SMEs, in bridging financial and technology gaps as well as gaining market access through strategic collaborations or joint ventures with potential partners.

Its scope includes technology business matching, project financing, capital raising (debt and equity), merger and acquisition, divestments and takeover and initial public offerings (IPOs).

“Currently, the DICP unit, which comes under the purview of MIDA’s Domestic Investment Division, oversees three main initiatives — establishing greater connections with existing banking sectors, linking up with alternative financing funders and engaging with companies that are ready for IPO,” said Zuaida.

Strategies to encourage digital investment

Zuaida said Malaysia is always ready to welcome quality investments and encourage companies to embrace new and advanced technologies to strengthen the industry ecosystem by raising productivity levels, increasing efficiency and enhancing local capabilities.

“As digitalisation is a fast-evolving segment and becoming a new norm, we also welcome new technologies that can enhance Malaysia’s capability as a digital nation.

“In the wake of IR4.0, businesses are keener to acquire the knowledge and expertise they need,” she said.

Key strategies outlined by MIDA to encourage digital investments include Industry4WRD: National Policy on Industry 4.0; Industry4Wrd Intervention Fund and the Automation Capital Allowance.

Zuaida also noted that the government’s initiative in expediting the 5G network rollout via Digital Nasional Bhd will be a key driver of Malaysia’s economic growth.

“The adoption of 5G technologies is projected to increase Malaysia’s gross domestic product by 5% or RM122 billion and create 750,000 high-skilled jobs by 2030; driving efficiencies, increasing productivity and creating new opportunities for Malaysia’s economy,” added Zuaida.

As of December 2022, Malaysia’s 5G rollout has achieved almost 50% coverage of populated areas nationwide.

2023 outlook

MIDA will continue its promotions and execute its action plans to further enhance the adoption of digitalisation in businesses, with more focus on the environmental, social and governance (ESG) agenda in the project pipeline.

Zuaida said that bridging the ESG agenda and digital transformation is vital, noting that now is the time for businesses and technology to come together to plan a sustainable future.

“The data centre companies, for example, have corporate targets to reduce their carbon footprint and set ambitious goals to achieve net zero carbon emissions over the next 20 to 30 years.

“Ultimately, forward-looking ESG practices matter as it benefits the environment and society. By taking a proactive role in promoting and implementing sustainability initiatives, the data centre industry will be best positioned to serve its essential role in connecting the global economy,” she said.

Additionally, MIDA has urged the MNCs to invest in upskilling, reskilling and cross-skilling their talents in order to bridge the skills gap as part of the social elements of ESG.

Citing Microsoft as an example, she said the technology giant has announced its commitment to upskill one million Malaysians by the end of 2023 through the ‘Bersama Malaysia’ initiative.

“As of August 2022, Microsoft has achieved over 60% of its skilling target or 600,000 talents,” added Zuaida.

Source: Bernama

MIDA on track to secure RM70 bil target for digital investments

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Prime Minister Datuk Seri Anwar Ibrahim will be witnessing the signing of a memorandum of understanding (MoU) between the Malaysian Investment Development Authority (MIDA) and the Brunei Investment Agency (BIA) during his two-day official visit to Brunei, starting tomorrow.

Foreign Minister Datuk Seri Dr Zambry Abdul Kadir said the MoU is a follow-up to the Sultan of Brunei’s Special Visit to Malaysia on Nov 28, which took place just after Anwar was officially appointed as the country’s 10th prime minister.

“It will provide an opportunity for both countries to explore potential investments that are of mutual interest,” he told reporters in a briefing here today.

Zambry said the trade between Malaysia and Brunei recorded an increase from 2021 to 2022 and the latter is the country’s 26th largest trading partner and sixth largest in ASEAN with total trade amounting to RM13.22 billion in 2022.

“For the January-December 2022 period, Malaysia’s exports to Brunei increased by 33.3 per cent to RM7.4 billion (US$1.68 billion).

“Imports from Brunei were recorded at RM5.82 bilion (US$1.21 bilion), an increase of 154.8 per cent from the previous year,” he said.

The official visit to Brunei is the second foreign visit for Anwar since assuming the position of prime minister.

He is expected to arrive at Brunei International Airport at approximately 3.30 pm tomorrow.

Source: Bernama

PM to witness signing of MoU between MIDA, BIA in Brunei

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The Malaysian Investment Development Authority (MIDA) and the Brunei Investment Agency (BIA) have inked a memorandum of understanding (MoU) for both Malaysia and Brunei to explore potential investments that are of mutual interest.

The MoU was signed by MIDA chief executive officer Datuk Arham Abdul Rahman and BIA acting managing director Sofian Mohammad Jani at Istana Nurul Iman today, witnessed by Prime Minister Datuk Seri Anwar Ibrahim and Sultan of Brunei Sultan Hassanal Bolkiah.

The signed document provides a preliminary understanding for both parties to hold negotiations towards the implementation and preparation of further agreements on bilateral investments, to be implemented by certain parties between Brunei and Malaysia.

The MoU entails bilateral cooperation and investment in the downstream oil and gas sector, digital economy, smart manufacturing, smart agriculture, artificial intelligence, tourism and the halal food industry.

Earlier on, Anwar held a four-eye meeting with Sultan Hassanal Bolkiah.

The prime minister has been in Brunei for a two-day official visit which started yesterday.
This is his second official visit abroad after being appointed as Malaysia’s 10th Prime Minister in November last year.

Source : BERNAMA

MIDA, BIA ink MOU to explore potential investments

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