MyPlast Sourcing Summit 2023 held today served as a dynamic platform to facilitate collaboration between small and medium enterprises (SMEs) and multinational companies (MNCs), catalysing growth and fortifying the local plastics supply chain ecosystem.

In a joint statement, the Malaysian Investment Development Authority (Mida) and the Malaysian Plastics Manufacturers Association (MPMA), as the organisers, said the inaugural event held for the plastics industry aimed to empower SMEs to adopt innovative approaches, thereby enhancing their plastic production capabilities.

With a turnout of over 130 participants, the summit brought together 10 MNCs and more than 20 plastics SMEs, including Texas Instruments Malaysia Sdn Bhd, Nestle Manufacturing (Malaysia) Sdn Bhd, Thong Guan Industries Berhad and The Dow Chemical Company.

“Through initiatives like the MyPlast Sourcing Summit, Mida and MPMA are committed to advancing the plastics industry to new heights in high-quality manufacturing, driven by advanced machinery, automation, and sustainable practices.

Mida chief executive officer Datuk Wira Arham Abdul Rahman said the plastic products industry in Malaysia is well-established, supporting the growth of many other important manufacturing industries, such as electrical and electronics, automotive, aerospace, medical devices, and food packaging.

“By nurturing collaboration between MNCs and local plastics manufacturers, initiatives like the MyPlast Sourcing Summit drive the growth of local enterprises, facilitating strides towards innovative and sustainable plastic manufacturing, aligning with the Malaysia Plastics Sustainability Roadmap 2021-2030,” he said.

Source: Bernama

MyPlast sourcing summit offers supply chain opportunities for local plastic SMEs

Efforts by Malaysian companies to push forth the environmental, social and governance (ESG) agenda will be celebrated.

All businesses, from small and medium enterprises (SMEs) to large corporations, that demonstrate exemplary ESG practices can now proudly showcase their endeavours through Star Media Group Bhd’s (SMG) ESG Positive Impact Awards (ESG PIA).

Entering its second edition this year, the ESG PIA – with OCBC Bank (Malaysia) Bhd as the main sponsor – seeks to recognise and showcase Malaysian companies’ journeys and achievements in the ESG space.

The awards also aim to accelerate ESG momentum across 15 categories and inspire greater adoption by businesses to drive lasting change and positive impact for a sustainable tomorrow.

Representing Malaysian Industry Development Authority (Mida) chief executive officer Datuk Wira Arham Abdul Rahman, Mida Investment Policy Advocacy (Manufacturing) executive director Masni Muhammad launched the awards for their second year at Menara Star here yesterday.

Commending SMG, sponsor OCBC Bank, and the programme partners, Masni said the dedication towards heightening awareness of corporate Malaysia’s sustainable practices and long-term impacts is definitely a step towards realising Malaysia’s net zero aspirations.

“This launch recognises individuals and corporations in Malaysia that demonstrate their leadership and advocacy in creating a positive impact on our environment and society.

“More and more small and medium-sized businesses in Malaysia are realising the importance of ESG practices, which go beyond profits to ensure the longevity and sustainability of their businesses and the wellbeing of our planet and people.”

In addition to this, the New Industrial Master Plan 2030 (NIMP 2030) and the National Industry Environment, Social and Governance Framework (i-ESG) were launched under the government’s national strategic policy framework, which focuses on good governance, sustainable development, and racial harmony.

Masni emphasised that the government is proactive in ensuring a just transition towards a low-carbon economy with the introduction of various frameworks and policies.

“Miti launched the i-ESG Framework on Oct 2 to prepare the nation’s manufacturing sector to embrace ESG principles and to tap into a US$12 trillion (RM57 trillion) global market for ESG-focused opportunities,” she said.

Representing OCBC Bank’s chief executive officer, Tan Chor Sen, OCBC Bank’s Wholesale Banking managing director, Jeffrey Teoh, said, “OCBC Bank has been around for more than 90 years, and the hallmark of our existence has been engagement with and service to the communities around us.

“High on the agenda today is our focus on ESG and how we create value for our customers and communities at large.

“This posture builds into the nation’s focus on achieving net zero (emissions) by 2050. This is an ideal that can only be attained when everyone comes together. In many ways, our role in SMG’s ESG Positive Impact Awards is to help this along.

“The broader picture of what OCBC Bank is doing for ESG lies in how we ensure our own practices, premises and posture are sustainable, alongside supporting corporates as well as SMEs and individuals in their ESG efforts,” he added.

Miti’s i-ESG deputy director, Dr Meenachi Muniandy, was also present at the launch.

SMG group chief executive officer Alex Yeow said the inaugural ESG PIA was introduced in 2022 to create a credible platform for companies to demonstrate their unwavering commitment to a sustainable future.

He said the media group is stepping up its game by becoming an enabler in the ESG landscape to help aspiring businesses go beyond just making profits.

“The ESG Positive Impact Awards 2022 allowed businesses to position themselves at the vanguard of their respective industries. It proved to be an excellent platform for companies to transform their achievements into inspiration for peers, investors, and stakeholders.”

Yeow emphasised that the media group has made it its responsibility to strengthen and foster a deeper relationship with the business community by focusing on three key areas.

“Last but not least, to strengthen our position as one of the enablers in pushing the nation’s sustainability agenda,” said Yeow after praising the government and private sector for their efforts in integrating and embracing ESG pillars in their organisational framework.

In conjunction with the launch, an ESG marketplace was held, featuring participation from the Centre for Environment, Technology and Development Malaysia, Cultiveat, Masala Wheels, Gerai OA, Zero Waste Earth Store, Graze Market, and the Green Factory.

The ESG Positive Impact Awards 2023 are organised by Star Media Group Bhd with OCBC Bank (Malaysia) Bhd as the main sponsor. To register your interest in the awards programme, visit staresgawards.com.my.

Source: The Star

Continuing nation’s ESG agenda

Banks have an important role in facilitating stronger trade in the digital trends, transforming the mobility ecosystem.

Citi Malaysia treasury and trade solutions (TTS) business and the Malaysian Investment Development Authority (MIDA) recently held a panel discussion with key automotive players in Malaysia titled Charged Up: Navigating the Transformative Path of Malaysia’s Automotive Industry.

“Automotive and mobility companies are increasingly evolving as they embrace digital transformation, which means an increased need for additional touch points to their end customers. 

“Banking providers are therefore critical in facilitating and supporting this

change. Citi supports over 120 automotive clients in Malaysia. We are proud to be part of their journey and enhance the trade growth prospects in this country,” Citi Malaysia head of treasury and trade solutions Abdul Jalil Jalaludin said in a statement.

MIDA chief executive officer Datuk Wira Arham Abdul Rahman said sustainable development has always been at the core of Malaysia’s narrative. 

He said Malaysia is actively championing electric mobility, and MIDA is committed to nurturing a dynamic ecosystem where both private and public stakeholders, such as Citi, can collaborate and develop

and commercialise innovative mobility solutions that will drive the future of sustainable transportation. 

“In line with the recently launched New Industrial Master Plan 2030 (NIMP 2030), Citi’s commitment to financing innovation and environmentally responsible initiatives acts as a catalyst for advancing our shared vision and propelling Malaysia towards its industrial and economic objectives,” he said.

The panel discussion featured Citi TTS sales sector head for the industrial sector Vincent Couche and MIDA deputy director, transport technology division Sudiana Muhamad Nawati, who shared about the transformation of the automotive industry and how banks can help, as well as insights on where Malaysia is investing and the challenges in adopting a more sustainable automotive industry in Malaysia.

Citi is a strong partner in the mobility ecosystem in Asia, collaborating with more than 100 car manufacturers, suppliers and distributors. 

Growth of trade financing for the sector has also seen a 40 per cent increase since the pandemic in 2020. 

Citi’s solutions to address the changing treasury needs for corporates include payment and collection, financing, liquidity and cash management.

The MIDA-Citi partnership was first inked in 2021 following a memorandum of understanding signed between the two parties. 

The partnership is intended to extend a financial platform and a seamless provision of end-to-end banking services by Citi Malaysia to new and existing foreign investors in Malaysia.

Source: NST

MIDA, Citi Malaysia spearhead transformation of automotive industry

Perak has garnered over RM22.3 billion in realised investments as at end-June this year, from a total of 283 manufacturing projects, creating more than 22,000 jobs, said Malaysian Investment Development Authority (Mida) chief executive officer Datuk Arham Abdul Rahman.

As such, Perak is poised to enhance Malaysia’s electrical and electronics (E&E) sector, particularly in the northern region, with the upcoming high-tech (technology) industrial hub in Kerian, as projected by the government in Budget 2024, he said.

“Based on the Perak Sejahtera Vision 2023, the state government focuses on several sectors, not just high-tech sectors but also based on services, such as the Lumut Maritime Industrial City,” he said to reporters at the “Mida Invest Series — Perak: Unfolding its Business Potentials” event here on Monday.

He said the state government also aims to attract more investors into the halal sector, not only in the halal food sector but also in cosmetics and other sectors.

Meanwhile, in his keynote speech, Perak Menteri Besar Datuk Seri Saarani Mohamad said the state government is committed to encouraging investments into the state, as it is willing and able to consider reasonable incentives or remove obstacles to facilitate investors.

He stated that the recent investment promotion mission to Shanghai, Hangzhou, Nanning and Guangzhou in China from Oct 15-21, 2023, was successful in attracting potential investments into the state.

“(Among others), InvestPerak has signed a memorandum of understanding with Zhejiang Sinopont Technology, a China investment company, for the encapsulation film with an investment of RM2 billion, involving the setting up of new facilities in Ipoh, to be the first Zhejiang manufacturing in Southeast Asia.

“MB Incorporated Perak has also explored potential collaboration with Rare Earth Group Co Ltd, which is based in Nanning, for the latest technology in isolating rare earth elements and the rehabilitation process or conservation of the industrial site,” he said.

During the mission, the state government has strengthened collaboration with strategic trading partners, which included China’s giant automotive company Geely, in ensuring the success of the RM32 billion Automotive High-Tech Valley investment in Tanjung Malim, he added.

Source: Bernama

Perak garners over RM22.3 bil investments as at end-June 2023 — MIDA

The Malaysian Investment Development Authority (Mida) is pivotal in facilitating potential investors to attract overseas investments to the country effectively.

Its deputy chief executive officer Sivasuriyamoorthy Sundara Raja said investments are a top priority for the Federal government, and the agency is actively working to consolidate promotional efforts and meet investment targets.

“When we have investors coming to Malaysia, we ask their requirements, including land size, potential locations, how far from the port, how far from the airport, and energy utilisation, among others,

“With that information, we will try to narrow it down further,” he told Selangor Journal, adding that some companies have their preferred locations, such as near electronic or chemical clusters.

Sivasuriyamoorthy was speaking at the Selangor Asean Business Conference (SABC) event ‘Overview of the Investment Landscape in Asean — Outlook and Challenges’ yesterday, held in conjunction with the Selangor International Business Summit (SIBS) 2023.

He said in some cases, if it is hard to meet potential investors’ requirements, Mida would then propose several locations.

“Ultimately, they will decide where to set up the operation. Mida does not decide where the investment goes. We do not do that.

“Once they determine, ‘yes, this is the location’, then we will evaluate the project, and during the negotiation, they will visit the sites,” Sivasuriyamoorthy said.

To effectively attract investment, he said investment promotional agencies (IPAs) should ensure the availability of enablers, as industrial parks are well-prepared with plug-and-play infrastructure.

Meanwhile, Affin Hwang Capital chief economist Alan Tan highlighted the importance of Asean countries bolstering their economic fundamentals to make the region more appealing to foreign multinational companies.

He also spoke of investors’ concerns about the depreciation of a country’s currency.

“What Asean countries need to improve is their economic fundamentals, and with that, we believe more and more foreign multinational companies will look at Asean as an attractive investment location,” he said, adding that most Asean countries have very solid economic growth, despite global environmental uncertainties.

The seventh edition of the SIBS is held at the Kuala Lumpur Convention Centre from Thursday (October 19) to tomorrow (October 22).

Source: Selangor Journal

SIBS 2023: MIDA actively working to reach investment targets

Malaysia will be able to attract more quality and sustainable investments following the announcement of the Budget 2024 by Prime Minister Datuk Seri Anwar Ibrahim yesterday, said the Malaysian Investment Development Authority (Mida).

In a statement today, Mida chief executive officer Datuk Arham Abdul Rahman said the agency is committed to ensuring Malaysia remains a major investment destination in Southeast Asia.

“Mida welcomes the strategic policies and the introduction of tax incentives as outlined in Budget 2024 that will foster a stable investment climate to attract more direct domestic investments and foreign direct investments that can accelerate the transition towards a sustainable economy based on knowledge that is in line with the New Industrial Master Plan 2023 (NIMP 2030),” he said.

Mida also welcomed the announcement on establishing the Investment and Coordination Action Committee (JTPPP) that will report to the National Investment Council chaired by the prime minister.

It said that the JTPPP, chaired by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, will synchronise investment and trade activities in a more effective, coordinated and holistic manner.

Meanwhile, Mida said the government’s announcement that it will implement the Global Minimum Tax in 2025 is expected to positively impact the country and maintain Malaysia’s ability to attract new investments and ready investments from multinational companies.

“This will also assure investors of Malaysia’s plans concerning GMT implementation,” it added.

Source: Bernama

MIDA: Malaysia can attract more quality, sustainable investments after announcement of Budget 2024

The Ministry of Investment, Trade and Industry (Miti) and its promotion agency Malaysian Investment Development Authority (Mida) have been tasked with easing the process of foreign and domestic direct investments (FDI and DDI) from the application process to the realisation of the investments, said Prime Minister Datuk Seri Anwar Ibrahim.

This extends from their current focus on investment incentive approvals, Anwar said when tabling Budget 2024 in the Dewan Rakyat on Friday.

“For that purpose, the Trade and Investment Coordination Action Committee has been set up, and is responsible to report directly to the National Investment Council chaired by myself,” Anwar, who is also the finance minister, said.

Malaysia is in search of higher private investments to support roll-outs of infrastructure projects, and development of high-growth, high-value (HGHV) sectors, including electrical and electronics (E&E), energy, agriculture, rare earths and digital technology, as underlined in the National Energy Transition Roadmap and the New Industrial Master Plan 2030.

In the first half of 2023, Malaysia saw a net FDI inflow of RM20.9 billion, and RM132.6 billion of approved investments or 60.3% of the target for 2023. The figure was split between DDI (52%) and FDI (48%). 

To support HGHV sectors, the government intends to provide tiered reinvestment tax incentives in the form of investment tax allowances amounting to 70% of 100%.

In the petrochemicals industry, the government also re-emphasised its intention to turn the Pengerang Integrated Petroleum Complex into a chemical and petrochemicals development hub by providing “tax incentive packages in the form of a special tax rate or investment tax allowance”, Anwar said.

As for the E&E sector, the government will launch a new high-tech industrial park in Kerian, Perak Utara, he added.

Supporting start-ups and SMEs

Budget 2024 also touched on measures to support start-ups, including a RM1.5 billion allocation by government-linked companies and investment companies to encourage start-ups to explore the HGHV sectors.

An extension to end-2026 is provided for the angel investor investment tax incentive, Anwar said, as well as a tax incentive for individuals who invest in start-ups through equity crowdfunding. The latter, he said, is extended to individual investors investing through limited liability partnership nominees.

An effort is also ongoing to optimise RM200 million of funds from venture capital under a single platform known as MYStartup, to connect start-ups and smoothen their business activities throughout the companies’ life cycle, he said.

Financial institutions will provide financing for micro, small and medium enterprises, including RM1.4 billion from Bank Simpanan Nasional, RM8 billion from Bank Negara Malaysia, RM330 million from Tekun, and another RM600 million from Khazanah Nasional Bhd, Anwar announced.

The government also announced a RM300 million allocation for G1 and G4 contractors to participate in maintenance projects for federal roads and bridges, he added.

Source: The Edge Malaysia

MITI, MIDA to streamline end-to-end investment process, says PM

Abu Dhabi Future Energy Company PJSC (Masdar), the United Arab Emirates (UAE) clean energy powerhouse is set to invest US$8 billion (US$1=RM4.72) for up to 10 gigawatts (GW) of renewable energy (RE) projects in Malaysia.

According to the Malaysian Investment Development Authority (MIDA), the company had signed a memorandum of understanding (MoU) with MIDA, forming a strategic partnership and marking an important milestone in the pursuit of a sustainable and greener future for Malaysia.

In a statement, MIDA said it would facilitate Masdar to develop the RE projects, which include ground-mounted, rooftop and floating solar power plants, onshore wind farms and battery energy storage systems.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the UAE — through Masdar — has set a commendable example in its national pursuit of sustainability, with its recognised leadership in clean energy, low-carbon and nature-based solutions.

“This MIDA-Masdar collaboration is perfectly aligned with the objectives of the New Industrial Master Plan 2030 and the National Energy Transition Roadmap (NETR) in achieving sustainability and energy security for Malaysia’s industrial transformation,“ he said.

MIDA chief executive officer (CEO) Datuk Arham Abdul Rahman said the partnership underscores its commitment to driving positive change and embracing a greener, more sustainable future.

“MIDA has proactively and enthusiastically engaged with industry partners in the country to foster innovation and cultivate solutions that are aimed at reducing carbon emissions,” he said.

Meanwhile, Masdar’s CEO Mohamed Jameel Al Ramahi said Masdar is proud to play its part in helping Malaysia achieve its ambitious target of 70 per cent RE installed capacity and net-zero emissions by 2050.

“As a global clean energy pioneer with a proven track record in the commercialisation and deployment of renewable and clean energy projects, Masdar is proud to play its part in helping Malaysia achieve its ambitious targets.

“We will bring all our expertise in delivering robust projects that utilise cutting-edge technologies and generate much-needed energy efficiently to advance Malaysia’s RE goals,“ he said.

Established in 2006, Masdar is active in over 40 countries and has invested, or committed to invest in worldwide projects with a combined value of more than US$30 billion.

Source: Bernama

MASDAR, MIDA inks MOU to develop up to 10GB of RE projects

The Malaysian Investment Development Authority (Mida) said it is important to strengthen partnerships within the local manufacturing ecosystem in order to pool resources, share risks and increase adoption rates.

Close collaboration is vital due to the complex and dynamic nature of the future of manufacturing, said Mida deputy chief executive officer (investment development) Lim Bee Vian.

“There are many local companies with capabilities, from serving as contract manufacturers to Original Equipment Manufacturers (OEMs), offering a sophisticated ecosystem with world-class research and development, design, and engineering capabilities.

“While we may not be present in every part of the global value chain, we aim to occupy critical segments where we can add value and remain resilient against competitors who rely solely on cost advantages,” she said in her welcoming remarks at a Mida-organised seminar here today (October 10).

The seminar was held to bolster local Machinery and Equipment (M&E) companies’ competitiveness to enhance the supply chain ecosystem for multinational corporations and large local companies.

Lim also highlighted the government’s latest funds amounting to RM235 million to drive automation, digitalisation, and sustainable environmental, social and governance practices, namely the Domestic Investment Accelerator Fund, Foreign Investment Accelerator Fund and Madani Smart Automation Grant.

“With the facilitation by Mida, these funds will empower businesses, especially local small and medium enterprises and mid-tier companies, to innovate, expand and integrate into the technologically evolving global supply chain while actively contributing to our nation’s economic progress,” she added.

The seminar gathered over 160 participants from the private and public sectors, including financial institutions, to provide information on government facilitation programmes for M&E companies and offerinsights into financial institutions’ support for adopting emerging technologies. 

Source: Bernama

MIDA: Vital to strengthen partnerships within local manufacturing ecosystem

The Malaysian Investment Development Authority (Mida) has launched new funding initiatives aimed at catalysing Malaysia’s industrial growth and fostering economic development.

These initiatives include the Domestic Investment Accelerator Fund (DIAF), the Madani Smart Automation Grant (SAG Madani), and the Foreign Investment Accelerator Fund (FIAF), which are set to play a pivotal role in advancing Malaysia’s economic landscape.

Mida said DIAF and SAG Madani have been strategically designed to offer a variety of tailored solutions that assist in the development of high-value economic activities for local manufacturers and service providers.

“They also encourage our local businesses to upgrade their capabilities and expand their scope of operations, aligning with Malaysia’s commitment to fostering innovation, automation, digitalisation, and the adoption of sustainable ESG practices,” it said in a statement on Monday.

FIAF is tailored for multinational companies (MNC) operating in Malaysia to facilitate the seamless transfer of cutting-edge know-how within the high-technology sector, through research and development (R&D) initiatives and comprehensive training activities.

“This strategic approach is poised to nurture a highly skilled and high-income local workforce, while preserving Malaysia’s competitiveness in an evolving global industrial landscape,” it added.

Mida chief executive officer Datuk Wira Arham Abdul Rahman said DIAF, SAG Madani and FIAF are powerful catalysts propelling the nation towards a sustainable and dynamic industrial ecosystem.

“With the support of Mida, these funds will empower businesses, especially local SMEs and mid-tier companies to innovate, expand [and] integrate into the technologically evolving global supply chain and actively contribute to our nation’s economic progress,” he said.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Mida’s newly launched funds are among the first concrete steps to support industries in upgrading their capacity for higher value economic activities, and facilitating knowledge transfer from foreign investors to domestic companies.

“By nurturing local talent, fostering partnerships, and promoting technological advancement, we are not just catalysing sustainable economic growth; we are also setting the stage for Malaysia to be at the forefront of the global industrial landscape by 2030 and beyond, as well as ensuring the prosperity of our companies and our people,” he said in the same statement.

Source: Bernama

MIDA launches new funds to drive automation, digitalisation and ESG practices

Green technology investments were recorded at RM1.3 billion (US$268 million) between January and June this year, representing a 21.9 per cent year-on-year growth, the Malaysian Investment Development Authority (Mida) said.

Deputy chief executive officer (investment development) Lim Bee Vian told Bernama in an interview recently that this encompasses various green technology initiatives, including renewable energy (RE), energy conservation, waste management, green buildings and services.

Notably, 348 green technology projects and services including RE were approved up to June 2023. This aligns with the objectives of the National Energy Transition Roadmap (NETR).

Malaysia has experienced significant growth with an average annual increase of 35-40 per cent in green projects covering RE, energy efficiency, green buildings and integrated waste management since 2018, Lim said.

“From 2018 to June 2023, Mida approved 3,247 green projects worth over RM17.7 billion, reflecting Malaysia’s promising outlook in green technologies.

“Mida is diligently prioritising green initiatives, with a specific focus on renewable energy projects that adhere strictly to ESG criteria and standards. The remarkable annual growth rate of 35-40 per cent in green projects can be attributed to the favourable government incentives in place.

“We give precedence to our local companies as we understand that although we are moving away from providing incentives and grants, they remain essential,” she said.

She added that Mida manages government incentive packages effectively, which explains the numerous applications received.

“We are pleased to be deeply involved in this work because we recognise that we are assisting the industry in its transition to a greener future,” she added.

Lim drew attention to the progress made in the adoption of electric vehicles (EVs) and hybrids between January and July with the total number reaching 16,257 units on the road, including passenger and commercial vehicles.

Furthermore, she said there were 319 electric motorcycles and 22 electric buses in operation, as well as 1,246 charging stations set up to support the growing EV demand.

“The increasing presence of EVs on Malaysian roads can be attributed to the introduction of a wider range of EV models into the market. Although we have made strides in enhancing the charging infrastructure, there is still work to be done in this area.

“Moreover, the growing awareness and preference for eco-friendly options are driving this trend towards green mobility. The arrival of Tesla, in particular, has significantly raised the visibility of sustainable transportation solutions in the country,” she said.

Lim said the Low Carbon Mobility Blueprint (LCMB) and the National Automotive Policy (NAP) underscore Malaysia’s commitment to sustainable transportation; the initiatives aim to increase EV market share, expand the charging infrastructure network, promote local manufacturing of EV components, and foster research and development in EV technology.

“Malaysia has secured RM22 billion in approved investments for the EV sector through 54 projects from 2018 to 2022 with an additional RM4.2 billion through five projects approved in 1H 2023,” she noted.

Its transition to a low-carbon economy is paramount in order to align with global sustainable development efforts and to harness potential emerging opportunities in the green economy.

Mida is hopeful that the government will undertake additional initiatives to strengthen and further support RE energy in the upcoming Budget 2024.

As the government’s principal investment promotion and development agency, Mida has a pivotal role to support Malaysia’s commitment to reach net-zero emissions by 2050.

“Many companies have already embarked on the sustainability journey; they know that not doing so would risk them losing relevance and market share. We will continue to support industries and enterprises in their transition efforts,” Lim said.

She reiterated that the international tide is undeniably moving in the direction of green and ESG investments and embracing these principles is not a choice but a strategic imperative.

“Failing to do so could mean missing out on the immense potential that this global shift offers. This is the golden opportunity for the private sector and we strongly encourage businesses to leverage the government’s comprehensive initiatives and support.

“Together, we hold the power to steer the wheels towards a more sustainable and prosperous future,” Lim said.

Mida focuses on promoting investments in potential green areas, including green products, electric vehicles, green energy, waste management, waste-to-energy (WTE), green building, and green certification.

Source: Bernama

Green technology investments up 22 pct to RM1.3 bln in 1H 2023: MIDA

The Malaysian Investment Development Authority’s (MIDA) pioneer seminar on solar energy, hosted in conjunction with the International Greentech and Eco Products Exhibition and Conference Malaysia 2023 (IGEM 2023), has clinched RM2.3 billion potential investments.

The investment facilitation agency said the achievement constituted 90 per cent of its target set for IGEM this year.

The seminar, themed “Elevate Your Green Profile: Smart Investment for Sustainable Business Growth”, was organised in collaboration with the Malaysian Photovoltaic Industry Association (MPIA), UOB Malaysia and North Consult Engineering at the Kuala Lumpur Convention Centre (KLCC).

In a statement today, MIDA said the collaborative commitment witnessed at the seminar reinforced the pivotal role of the solar energy industry in reshaping Malaysia’s green energy landscape.

“Malaysia’s Green Plan is a comprehensive, nationwide movement aimed at advancing our country’s sustainable development agenda.

“The recently launched National Energy Transition Roadmap (NETR) and the New Industrial Master Plan 2030 (NIMP 2030) outline Malaysia’s path to a sustainable and inclusive energy future,” deputy chief executive officer (Investment Development) of MIDA Lim Bee Vian said.

Lim said these strategic moves aimed to mitigate economic risks associated with environmental, social and governance (ESG) factors, ensuring exporters maintain access to markets and increase Malaysia’s attractiveness as an investment destination.

Meanwhile, MPIA president Davis Chong said the solar energy industry is at the forefront of reshaping Malaysia’s green energy landscape and, therefore, reckons that collaboration is key.

“Together, we can drive positive change and create a brighter, cleaner future,” Chong said.

UOB Malaysia managing director and country head of commercial banking Beh Wee Khee said he believed that energy efficiency improvements are the low-hanging fruits that businesses could leverage to kick-start their sustainability efforts.

“Whether they are seasoned investors or small companies looking at capitalising on green technology to embark on a green journey, we have tailored the right solutions under our sector-focused financing frameworks to help them achieve their ambitions,” he added.

Source: Bernama

MIDA’s pioneer solar energy seminar at IGEM 2023 garners RM2.3 bln potential investment

The Malaysian Investment Development Authority (Mida) revealed that Malaysia garnered an impressive RM132.6 billion (US$28.3 billion) in approved investments from January to June.

These investments, which span across the services sector (RM82.4 billion), manufacturing sector (RM44.9 billion), and primary sectors (RM5.3 billion), encompass 2,651 projects poised to generate 51,853 employment opportunities.

Mida’s data highlights that domestic direct investments (DDI) constitute a substantial 52.2 per cent of the total approved investments, amounting to RM69.3 billion, while foreign direct investments (FDI) contribute 47.8 per cent, totaling RM63.3 billion.

The five leading sources of FDI are Singapore (RM13.7 billion), Japan (RM9.1 billion), the Netherlands (RM9.0 billion), China (RM8.4 billion), and the British Virgin Islands (RM7.1 billion).

Simultaneously, the top five states that have recorded substantial investment values in proportion to the total approved investments include Kuala Lumpur (RM31.7 billion), Selangor (RM29.7 billion), Kedah (RM14.6 billion), Johor (RM14.2 billion), and Sabah (RM9.0 billion).

Mida reports that the 2,651 projects approved in this investment wave represent a remarkable increase of 34.8 per cent compared to the corresponding period in 2022.

In a statement, Mida expressed that these investments are a testament to Malaysia’s thriving economy, bolstered by pro-business policies and an ongoing commitment to enhancing the ease of doing business in the country.

The agency also attributes Malaysia’s success in attracting these significant investments to its burgeoning innovation capabilities, serving as a trusted hub for supply chains, capital, talent, and the smooth flow of goods and data.

Investment, Trade, and Industry minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz commended Malaysia’s ability to draw in investments despite global demand slowdowns and higher interest rates in key markets.

He expressed confidence in the nation’s ability to achieve its annual target, particularly with expectations of stronger growth in the second half of the year.

Source: NST

Economic Revival: RM132.6 billion new investments to generate over 50,000 jobs

Malaysian Investment Development Authority (Mida) and global sensors and emitters manufacturer ams Osram will continue mutual support for advanced light-emitting diode (LED) manufacturing in Malaysia.

A joint statement said in August 2023, the Ministry of Investment, Trade and Industry (Miti) and Mida officials visited ams Osram chief executive officer Aldo Kamper at the company’s headquarters in Premstaetten, Austria to understand the technology development approaches and the construction progress of its first fully-automated 8-inch microLED manufacturing facility in Kulim, Malaysia.

Miti secretary-general Datuk Seri Isham Ishak and Mida CEO Datuk Wira Arham Abdul Rahman were accompanied by government officials, the statement said. ams Osram has been in Malaysia for over 50 years.

The statement said construction of the state-of-the-art and fully-automated facility started in 2022, making the company a pioneer. The build-out and installation is progressing as planned, the statement said.

The statement said a Mida-ams Osram collaborative agreement solidifies the investment in Malaysia with substantial employment opportunities for Malaysians in the science and technical field. The agreement also facilitates and supports ams Osram to carry out innovation programmes.

“With the support of Mida, ams Osram will continue to closely collaborate with local public research institutes, universities, colleges, and vendor development programmes to advance technologies and implement use cases for Industry 4.0,” the statement said.

Datuk Seri Isham Ishak said ams Osram’s investment underscores the economic partnership between Germany and Malaysia, and that Miti and Mida will seek more wafer fabrication players and their supply chain to consider Malaysia as a production site.

“Malaysia’s aspiration is to become a global hub for business, innovation, and talent in advanced manufacturing, which aligns with our recently launched New Industrial Master Plan (NIMP 2030),” he said.

Datuk Wira Arham said the facility being built currently aligns with the type of investment Malaysia wants to attract.

“It anchors highly sophisticated manufacturing at the cutting edge of technology, positioning us at critical nodes in global supply chains,” he said.

Meanwhile, CEO Aldo Kamper said the company will continue to develop cutting-edge technology and the corresponding manufacturing processes to industrialise these technologies at scale.

Source: Bernama

MIDA, MITI officials pledge support for Ams Osram’s Kulim manufacturing facility

This year, Malaysia celebrates 66 years as an independent nation. We are a young nation by the standards of other countries, but 66 years is not a flash in the pan either. Amidst the centennial celebrations, it is worthwhile recalling the journey that Malaysia has made as a nation since its humble beginnings in 1957 as an agriculture-based economy.

Malaysia’s economic progress in a nutshell

Malaysia has witnessed growth even before independence in 1957. 

The history of agricultural enterprise in Peninsular Malaysia begins in the 1780s with the arrival of the British in Penang. The compositional change within manufacturing was striking.

Industrialisation began in the 1960s where the role of manufacturing was quite minor involving the processing of rubber, tin, timber, foodstuffs. In any case, these labour-intensive industries saw a steady decline through the 1970s.

There were significant changes in the factor intensities in the manufacturing sector due to significant investment in machinery and equipment toward more sophisticated technologies.

The manufacturing sector grew at 26.2 percent in 1970s, coupled with large increases in the prices of petroleum in 1974 and 1979, had led to high economic growth during the period.

Malaysia began to pursue an import substitution development strategy in 1960s and gradually moved toward an export-oriented industrialisation strategy in the 1970s. 

A key element of this strategy was to rely on foreign direct investment to achieve high economic growth through industrialisation. 

In response to this, the Federal Industrial Development Authority (FIDA) Act was incorporated in 1965, culminating in the establishment of FIDA by the end of 1967. On March 1, 1979, FIDA was officially renamed the Malaysian Industrial Development Authority (MIDA) to reflect a more Malaysian identity.  In 2011, it had another name change to the Malaysian Investment Development Authority, retaining the MIDA acronym, to encompass a broader spectrum of activities, other than just industrial matters. 

The manufacturing sector soon became a key driver of Malaysia’s economic growth, with electrical and electronics (E&E), textiles, and automotive industries taking centre stage. The production of E&E goods, in particular, gained prominence, leading Malaysia to become a significant player in the global supply chain, attracting investments and driving economic expansion.

This strategy led to the establishment of special economic zones, such as the Penang Free Trade Zone, which attracted multinational corporations (MNCs) including 500 Fortunes to set up manufacturing facilities.

The first two decades of Malaysia’s economic history could be described as the “take-off” phase. The dominant theme in the third phase of Malaysia’s economic history was the overcoming of resource constraints through a significant restructuring of the economy.

In driving the country’s economic growth, a strategic long-term economic framework known as the Industrial Master Plan has been developed spanning a 15-year horizon and is complemented by shorter-term 5-year plans known as Malaysia Plans. The IMP aims to guide the nation’s industrialisation, economic diversification, and sustainable growth with the focus on fostering innovation, enhancing productivity, and promoting value-added industries.

Today, the Twelfth Malaysia Plan (12MP) further enhances Malaysia’s dynamic industrial landscape into a manufacturing powerhouse with a strong focus on embracing Industry 4.0 through automation and digitalisation. While the manufacturing sector has evolved and moved up the value chain over the last five decades, this was the first time the entire economy was undergoing such a transition.

For instance, Intel’s sprawling semiconductor manufacturing facility in Penang exemplifies the integration of advanced technologies and local talent. The company’s investment not only drives economic growth but also fosters knowledge transfer and skill development, contributing to Malaysia’s long-term competitiveness. The idea of Malaysia as a manufacturing powerhouse was not new, yet it was revitalised, with a newfound determination. 

As the government’s principal investment promotion and development agency under the Ministry of Investment, Trade and Industry (MITI), MIDA assumes its pivotal role to oversee and drive the investments into the country. Its mandate extends beyond the manufacturing sector, now encompassing selected services sectors as well. As of today, Malaysia continues to position itself as a choice location for global investors for manufacturing and services sectors.

Industry 4.0 and the Digital Revolution

Malaysia was well-positioned for the pervasive digitalisation of the global economy that occurred in the 2020s and this led to the digital era marked by Industry 4.0.

Recognising the potential of automation, artificial intelligence (AI), and digitalisation in revolutionising manufacturing processes, the country leverages on this technological advancements and digitalisation to further accelerate its economic transformation. 

The profound synergy established between Industry 4.0 and the digital revolution do not only propel industries forward but also reshapes consumer behaviour, ushering in a new era of online purchases and personalised experiences. 

The convergence of Industry 4.0 and the digital revolution indeed gives rise to a dynamic and ever-evolving landscape that not only redefines conventional economic norms, but also moulds the future of consumption patterns. 

Guided by the implemented framework and policies in place, such as 12MP, the National Investment Aspirations (NIA), New Investment Policy (NIP), National Fourth Industrial Revolution (4IR) and Malaysia Digital Economy Blueprint, or MyDigital, renowned global corporations such as Amazon Web Services, Western Digital, and ExxonMobil have established significant operations in Malaysia. The country’s investor-friendly policies, and well-developed infrastructure have positioned it as an ideal gateway for MNCs seeking to tap into the Southeast Asian market.

The recently launched Madani Economy framework also stands as a robust strategy aimed at elevating the economy and bolstering national competitiveness. 

It envisions to position Malaysia as one of the top 30 major economies within a decade, setting its sights on achieving remarkable global stature. 

Complemented with the New Energy Transition Roadmap (NETR), a strategic blueprint designed to catalyse transformative change, these strategic initiatives are not merely aimed at reinvigorating economic growth, but also serves as a resounding testament to

Malaysia’s commitment to sustainable practices through the pursuit of opening up profitable ventures that are wholesomely good for the environment and economy.

Sustainable Development

As Malaysia advances its industrialisation journey, it remains committed to sustainable development, balancing economic growth with environmental stewardship. 

The government’s comprehensive policies, encapsulated within 12MP and the Green Technology Master Plan, underscore its determination to strike a balance between economic growth and environmental preservation.

Climate change had become the defining issue facing the global economy, including Malaysia. It has been the key driver of the transformation of our economy over the last 20 over years. 

The Global Climate Change Compact of 2030 – with subsequent reviews every ten years – was probably the most important international agreement in history. 

Malaysia’s ambitious target of achieving net zero carbon emissions by 2050 is a testament to its proactive stance in combating climate change and fostering a greener future.

In the area of climate change adaptation, MITI and MIDA have embarked on bold steps towards enabling and achieving sustainable development and positioning Malaysia as an attractive destination for ESG-related investments. In line with this, MITI is finalising the National Environmental, Social and Governance Framework, known as the i-ESG Framework for the manufacturing sector, which is expected to be completed in 2024.

In addition, the National Energy Policy 2022-2040 (NEP) also offers a detailed roadmap for the energy sector. This forward-looking policy is anchored in a visionary goal known as the Low Carbon Aspiration 2040, which envisions a considerable annual contribution of RM13 billion to GDP by attracting investments that spur the growth of low carbon technologies. This paves the way for Malaysia to excel in promising sectors like renewable energy (RE), energy storage, low carbon mobility, and hydrogen economy 5 , potentially creating more than 207,000 new job opportunities and drawing in investments worth RM9.2 billion.

A Cultural Underpinning

Beyond economic factors, Malaysia’s development journey owes much to its rakyat – its people. The resilience, dedication, and spirit of Malaysians have been instrumental in propelling the nation’s progress. Their collective commitment has synergised with the invisible hand of the market and the visible hand of good governance, enabling Malaysia’s remarkable economic transformation.

Source: NST

MIDA: From an agriculture nation to a sustainable Industry 4.0 powerhouse

The Malaysian Investment Development Authority (Mida) today announced the digitisation of three key certificates in the manufacturing sector: the Manufacturing Licence, Permit PDA Certificate and Pioneer Status Certificate.

This initiative is part of the Investment Development Authority’s ongoing digital transformation, which aims to streamline government processes and delivery systems as well as to improve the ease of doing business in Malaysia.

The digitised certificates will be available through the InvestMalaysia portal.

This portal was launched in 2021 and has since assumed an important role in facilitating investments in Malaysia. The digitisation of these manufacturing certificates will further enhance the efficiency and accessibility of the InvestMalaysia portal, making it easier for investors to obtain the necessary approvals and permits.

“The digitisation of manufacturing certificates within the InvestMalaysia Portal is a significant step towards modernising, rethinking and re-engineering public services. This improves the investor’s journey by offering a more inclusive, seamless, and personalised service, which is very much aligned to one of the objectives of the upcoming New Industrial Master Plan 2030.

“Through this digitalisation initiative, the Ministry, through Mida  are also aiming to contribute to improved accountability, transparency and cybersecurity, all of which will further reinforce Malaysia’s positioning as a digital hub for the region.” said Investment, Trade and Industry Minister Tengku Datuk Seri Utama Zafrul Aziz.

Mida chief executive officer Datuk Wira Arham Abdul Rahman said, “Through the implementation of an end-to-end automation application process, Mida aims to achieve shorter processing time, improve our client charter commitment to investors, and complete our digital transformation goals in supporting the industry’s current and future needs.

This is a statement of our ambition to better leverage data and harness new technologies, and to drive broader efforts to build a digital economy. It will allow Mida  to respond to investors’ needs more effectively. Mida  will continue to be innovative and lead the way with supportive facilitation that promotes ease of doing business.”

A standout feature of this initiative is the integration of the Digital Organisation Trustmark seal featuring both the renowned Investment, Trade and Industry Ministry Trustmark featured in the Manufacturing Licence and PDA Permit certificates and Mida  Trustmark featured in Pioneer Status Certificate.

These seals are seamlessly embedded onto the license certificates, strengthening the security of the document which aligns with the provisions of the Digital Signature Act 1997 and the Digital Signature Regulation (DSR) 1998.

Moreover, the digitally enhanced certificates will incorporate a secure QR Code, providing a means of verification that assures these documents’ authenticity, which users can scan using a verification tool.

Source: Bernama

MIDA digitises key certificates to ease doing business in Malaysia

By DATUK WIRA ARHAM ABDUL RAHMAN

IN an extraordinary decade-long transformation, Malaysia has made progress in its transformation towards the digital economy.

With over 30 established data centres and a flurry of upcoming projects, Malaysia is set to revolutionise the digital landscape.

Recognising the potential of the digital economy, the Malaysia Investment Development Authority (Mida) has approved seven data centres, data hosting, and cloud-computing services projects, attracting a total investment of RM75.87bil from 2021 to March 2023, surpassing the target of RM70bil in digitalisation investment set as part of the Malaysia Digital Economy Blueprint’s (MyDIGITAL) strategies by 2025.

Through these approved investments, Mida estimates the generation of 440 new jobs, with more than 80% being niche and specialised positions.

Roles such as data scientists, data analysts, and data engineers, requiring high skills, significant training, and professional qualifications, will drive the digital workforce forward.

Recently, I mentioned that Malaysia is riding on billions of ringgit in investment pledges, including major players like Amazon Web Services, ByteDance System, Bridge Data Centres, GDS IDC, and Malaysia’s YTL Data Centre. Thus, the nation is poised to embark on an exceptionally ambitious investment promotion strategy.

The rapid growth of Malaysia’s digital economy can be attributed to several factors. At the heart of Malaysia’s digital transformation are MyDIGITAL and the Digital Investment Office (DIO).

These strategic initiatives underscore the country’s unwavering commitment to growing the economy through digital technology. MyDIGITAL sets the stage for a holistic digital transformation, while the DIO acts as a catalyst, facilitating investments in digitalisation.

Together, they create an ecosystem that fosters innovation, collaboration, and attracts businesses and investors from all corners of the globe. The country has positioned itself strongly in the digital landscape and has consistently strived to become an innovation-driven economy.

In the 2023 IMD World Competitiveness Ranking, Malaysia secured the 27th spot, with key strengths in prices, basic infrastructure and tax policies.

The opportunities are immense for Malaysia. With deep-rooted bilateral relations with global powers, Malaysia adopts an inclusive foreign-policy approach, positioning itself as a neutral venue for businesses and investments.

This unique advantage creates an attractive environment for global collaboration and paves the way for remarkable growth and opportunities.

In order to be part of the data value chain, from processing, analytics, storage, to security and intellectual property, there is a need for connectivity and data centres to be present in Malaysia. While foreign companies like NEXTDC Ltd, Bridge Data Centre and Amazon have made significant contributions, local players are also making waves.

YTL DC South Sdn Bhd

YTL DC South is a key local player that has joined forces with Sea Ltd for the development of the Sea Data Center.

As part of the 500MW YTL Green Data Center Park, this RM1.5bil investment in Johor, Malaysia, will be a Tier III certified facility equipped with the best-in-class green power and connectivity.

Datuk Yeoh Seok Hong, managing director of YTL Power, envisions this YTL Green Data Center Park to be the largest and most successful of its kind in Asia, contributing to Malaysia’s digital economy initiatives.

Australia’s NEXTDC LtdNEXTDC Ltd, an ASX-listed data centre operator, has unveiled plans to construct its inaugural overseas facility, known as KL1; in the vibrant city of Kuala Lumpur.

Spanning 10ha of land in the heart of the Klang Valley metropolitan region, which is a significant economic centre in Malaysia, the facility aims to cater to the region’s growing digital demands.

This project entails a substantial investment of RM3bil spread over a five to 10-year period, reaffirming NEXTDC’s commitment to bolstering Malaysia’s digital infrastructure and stimulating economic growth in the country.

“Malaysia has been chosen as the first destination for the company’s overseas footprint with the construction of KL1.

“The company will also commit to digital skilling and educational initiatives to help empower Malaysia’s information and communications technology and digital workforce to drive Malaysia’s competitive advantage in Asia,” said NEXTDC.

Elliance Sdn Bhd

Elliance is another local frontrunner, leading the charge in agricultural technology.

Its Smart Farming platform incorporates AI-powered precision farming systems, intelligent fertigation and irrigation systems, and AI machine vision for plant health monitoring and pest and insect detection. This integrated system, including enterprise resource planning capabilities, significantly enhances farmers’ land management efficiency.

“Through our Smart Farming platform, we’re dedicated to revolutionising agriculture and promoting sustainable practices in response to the pressing issues of climate change and food security,” said Cheng Boon Seng, director of Elliance.

Elliance’s commitment to addressing the imminent challenges of global warming, food security, and population growth through Smart Farming technology will contribute to sustainable and environmentally conscious agriculture.

Why Malaysia continues to thrive

Malaysia needs to continuously transform and innovate to become a prosperous and resilient digital nation.

Digitalisation, technology adoption and innovation are essential for sustainable economic growth. The government has set a target in the 12th Malaysia Plan of achieving a digital economy contribution to gross domestic product of at least 25.5% by 2025.

This target is ambitious but achievable with the right policies and investments.

The ability to seize opportunities emerging from innovative technologies and business models plays an important role in driving new engines of the country’s economic growth.

The country’s focus on digital investments, along with its commitment to environmental, social and governance, through the National Investment Aspirations and the New Investment Plan, further reinforces its efforts to leverage innovative technologies and business models for economic growth.

Datuk Wira Arham Abdul Rahman is chief executive officer of Mida. The views expressed here are the writer’s own.

Source: The Star

Malaysia sees rise in digital investments

The Malaysian Investment Development Authority (Mida) is intensifying its initiatives to enhance local talent development to support the industry needs, in line with the Madani Economy aspirations.

Chief executive officer Datuk Arham Abdul Rahman said as the country aimed to be among the world’s top 30 largest economies within the next decade, it is crucial to have a healthy and readily available talent pool, especially in high-tech sectors such as electrical and electronics (E&E), aerospace and medical device.

He said Mida, as the government’s principal investment promotion agency, is actively engaging several stakeholders to facilitate talent development through various initiatives such as industry academia collaboration, internship facilitation programme, upskilling and reskilling programmes, global talent outreach programme and career fair.

“Given the rapid emergence of these thriving industries, a vast array of opportunities beckons our talent pool to engage in sectors that not only promise economic viability but also champion in environmental and social consciousness, nurturing personal and career growth in alignment with sustainable values.

“These dynamic developments offer our local talent the chance to acquire expertise in cutting-edge technologies, empowering them to play an active role in driving the digital revolution forward,” he told Bernama.

Mida recently organised two career fairs known as Eksplorasi Kerjaya Mida, coinciding with the Investment, Trade and Industry Ministry Day 2023 on July 31 and Aug 5, which were held in Penang and Selangor, respectively.

Arham said the primary objective of these career fairs was to provide graduates and job seekers with valuable opportunities to explore a wide range of career options offered by both local and international companies.

He said the programmes, attracting nearly 4,000 participants registration with the majority being graduates, aimed to empower job seekers to make well-informed decisions and establish connections with prospective employers by facilitating information exchange, networking and exposure to potential career paths.

“On the event day, almost 1,000 candidates underwent the interview process. Out of this group, almost 500 candidates were shortlisted for the second round of interviews.

“The day witnessed significant success with 30 candidates securing job offers in technical fields,” he said.

A total of 36 leading companies participated in the event, collectively extending nearly 3,000 job opportunities to job seekers and graduates.

The roster of notable multinational companies includes Jabil, AT&S, Mattel, Fraser & Neave, Novugen, Playstation, Samsung, ams Osram and Stellantis, just to name a few.Arham added that this diverse line-up of participants presented job seekers with a wide array of exciting career options to explore.

Source: The Star

MIDA’s talent development initiatives in harmony with Madani aspiration

Infineon Technologies AG’s latest investment reflects Malaysia’s commitment to fostering an inclusive and vibrant economy, generating various opportunities for local talents and industry supply chains, according to the Malaysian Investment Development Authority (Mida).

Followings Infineon Technologies’ “monumental achievement,” Mida’s chief executive officer, Datuk Wira Arham Abdul Rahman reaffirmed the agency’s commitment to facilitate industry players, including Infineon Technologies AG, to foster further growth in the Electrical and Electronics (E&E) industry.

“Infineon Technologies’ achievement in Malaysia is a source of great pride for Mida. The company’s advanced manufacturing operations and continuous expansion in the country, along with its adoption of new digital capabilities, are truly commendable,” he said in a joint statement by Mida and Infineon.

Recognising that decarbonisation greatly fuels the rapid growth of power semiconductors, in particular those based on wide bandgap materials, Infineon said it is now taking a further step to shape the industry by significantly expanding its Kulim (Kedah) fabrication operations – over and above the original investment announced in February last year.

The company on Thursday unveiled its plan to build the world’s largest 200mm SiC (silicon carbide) power fabrication (Power Fab).

It will invest additionally up to five billion Euros (RM25 billion) over the next five years in Kulim in a second phase of the construction of module three.

“Infineon’s further investments complement the National Investment Aspirations (NIA) and the New Industrial Master Plan 2030’s focus on attracting high-tech and high-value investments to support the country’s economic growth,” the joint statement stated.

The E&E industry is a significant catalyst for the Malaysian economy, playing a pivotal role in its growth and development, contributing nearly 7 per cent of the country’s gross domestic product.

In the first quarter of this year, the industry recorded RM2.06 billion worth of approved investments, initiated from 16 projects which would generate 1,729 higher-paying job opportunities.

E&E exports for the same period were RM142 billion, a 3.3 per cent increase compared to the corresponding period last year, according to Mida.

Source: Bernama

MIDA: Infineon’s latest RM25 bln investment reflects Malaysia’s commitment to fostering inclusive, vibrant economy

Malaysia’s strategic location in the AsiaPacific region and Asean means that it has the potential to be a major hub for electric vehicle (EV) manufacturing and export. Malaysian Investment Development Authority (Mida) CEO Datuk Wira Arham Abdul Rahman says the country has signed 16 free trade agreements (FTAs) with other nations, giving it access to a market of over four billion people.

“Malaysia’s FTAs with Asean offer up to 98% import duty exemptions on most products. This favourable trade environment makes Malaysia an attractive destination for EV manufacturers seeking to export their
products globally,” he explains.

In addition to being a signatory to these agreements, Arham says Malaysia possesses other strengths such as political stability, strong economic fundamentals, pro-business policies, an advanced ecosystem, a robust supporting industry and a talented workforce. These factors enhance the country’s attractiveness as a destination for foreign, local and start-up companies, particularly in high-tech and value-added industries, looking to optimise their operations in a dynamic market.

“Malaysia’s incentives, strategic locationand participation in trade agreements position the country as a promising hub for EV manufacturing and trade, while fostering a conducive business environment for
various industries,” Arham says.

Development of talent is another area to focus on, as the aftercare and handling of EVs are different from that of internal combustion engine (ICE) vehicles. Looking at the talent heat map, Malaysia definitely has a shortage of talent, and while it might take some time to upskill talent with ICE expertise, it is not difficult
to do so, says Azrul Reza Aziz, CEO of Malaysia Automotive, Robotics & loT Institute (MARii).

MARii is working with the Department of Skills Development under the Human Resources Ministry to develop the National Occupational Skills Standards (NOSS) and Malaysian Skills Certificate or Sijil Kemahiran Malaysia (SKM) to include EVs as well as develop standardised educational modules
that can be used by industry players to upskill their workers. Azrul says industry players are being consulted as well so that talent gaps will be narrower

But one area that is often overlooked is educating first responders to address incidents involving EVs. Safety is a very important component of upskilling, says Azrul, especially when the vehicle is involved in an accident.

“Compared to ICE, EVs have batteries and [different parts of the car] will be conducting high-voltage electricity. First responders need to be equipped to handle road accidents on the highway if we want more EVs on the road.”

Shah Yang Razalli, deputy CEO and chief green mobility officer at clean energy company Gentari, says while the government’s policies are leading the country in the right direction, what is also important
now is a clear execution road map with more granular leading and lagging targets that are tracked to drive results.

“In order to drive sustained adoption and supporting infrastructure deployment, the road map needs to also be able to address how the policies can drive the increase of GDP, investment and economic growth via the creation of a local EV industry that will create jobs.”

Source: The Edge Malaysia

Developing an EV manufacturing hub

Malaysian Investment Development Authority’s (Mida) future automotive sector incentives will focus on the electric vehicle (EV) supply chain as the adoption of these automobiles rise while countries in the region also compete for potential knowledge transfer to local talent arising from these investments.

“EV is the way forward for us. The government has put in place very generous tax incentives,” said Mida’s deputy chief executive officer Lim Bee Vian on Monday (July 17) at an investors and vendors convention organised by Proton Holdings Bhd to promote investment into the Automotive Hi-Tech Valley (AHTV) in Tanjung Malim on Monday (July 17).

In relation to the AHTV project, Lim said the government is prepared to offer extended tax incentives for companies that are planning to invest in AHTV with a maximum of 15 years from the conventional five- to 10-year duration.

“It depends on the value of investment. If you’re investing RM10 million to RM500 million, you can get a straight forward of up to 10 years. If [the investment] is anything more than RM500 million, you are getting up to 15 years,” Lim explained.

Subsequently, speaking on non-physical incentives, Lim said that Mida does not currently bestow any grant as no more allocation was made in Budget 2023. Lim said grants are activity-dependent with previous ones being focused on training and research and development (R&D) purposes.

Lim added that the group is in the midst of requesting for additional grants to be given to the private sector to undertake mainly training and R&D activities.

Other than manufacturing factories, Lim encouraged companies to look into setting up operational headquarters in Malaysia, supplementing that in bringing over the support services to Malaysia, as Mida also grants some incentives for supportive activities.

When asked on the possibility of tax incentives being extended to local vendors who intend to relocate into AHTV, Lim commented that it depends on the value creation arising from their activities.

“We will look at whether they are topping up investments or not, or are they just relocating. So, there are a lot of considerations where we look at valuation for tax incentives. We will use criteria like capital investments, job opportunities that they created,” she said.

Source: The Edge Malaysia

MIDA’s future automotive investment incentives to focus on EV supply chain, says deputy CEO

Malaysia is an attractive investment destination for multinational companies (MNCs) because of its outstanding advantages in the global manufacturing supply chain, said the Malaysian Investment Development Authority (Mida).

MNCs eyeing expansion in Asia, particularly, can harness Malaysia’s robust infrastructure, efficient transportation networks, and logistics capabilities to optimise supply chains and unlock diverse markets, Mida chairman Tan Sri Dr Sulaiman Mahbob told Bernama.

“MNCs should capitalise on Malaysia’s strategic location which provides excellent connectivity to regional and global markets. They should leverage this advantage to establish Malaysia as a hub for their regional or global operations.

“By actively engaging with the abundant local suppliers, manufacturers, and service providers, MNCs have the opportunity to create a robust ecosystem to support their endeavour,” he said.

Sulaiman highlighted the Industry Linkage Programme as one such initiative which encourages partnerships between larger and small and medium-sized enterprises (SMEs).

This one-day programme, held in Penang last month, has connected 11 MNCs and 52 SMEs through more than 150 impactful business-to-business (B2B) sessions.

“Collaborating with local partners can help MNCs and SMEs navigate the local business landscape, gain market insights, and access local expertise.

“We have seen the shift towards some SMEs playing a bigger role in the global supply chain. These companies are differentiating themselves by providing value-added services, customised, high quality and lower cost products with faster speed to markets,” he said.

Sulaiman explained that by setting up their supply hub in Malaysia and linking with local SMEs, MNCs could take advantage of the country’s extensive trade links and lower cost of doing business environment.

He referred to the Mida-Xinyi Supply Chain Programme as a successful partnership between local enterprises and MNCs.

China’s leading integrated glass manufacturer Xinyi manufactures high-quality float glass, automobile glass and energy-saving architectural glass, and has a sales network covering over 130 countries and regions around the world.

Sulaiman said that Xinyi Malaysia is operating in Jasin, Melaka, as the first overseas division outside China and the company is now looking to expand its supplier base as part of its localisation plan.

“Up to 98 per cent of products have zero import duties under Malaysia’s free trade agreements (FTAs) with ASEAN, leading to lower costs of doing business.

“This grants companies operating in Malaysia preferential access to capture growth opportunities and immediate markets within one of the world’s largest trading blocs,” he said.

Malaysia has established a robust network of trade links through multiple FTAs such as with Japan, Pakistan, India, New Zealand, Chile, Australia, and Turkey.

On the Asean level, Malaysia is part of the Asean free trade agreement (AFTA), which includes regional FTAs with China, South Korea, Japan, Australia, New Zealand, and India.

“Malaysia will continue to strengthen its logistics and transportation networks to enhance connectivity with global markets to facilitate the seamless flow of goods, services, and information, thus ensuring the country’s position as an ideal Asian supply hub,” Sulaiman said.

Source: Bernama

MIDA: Malaysia remains attractive for MNCs in global manufacturing supply chain

Malaysian Investment Development Authority (MIDA) today announced that US semiconductor giant  Texas Instruments Incorporated (TI) plans to expand its internal manufacturing footprint in Malaysia with two new assembly and test factories in Kuala Lumpur and Melaka with investments that could reach up to RM14.6 billion and create another 1,800 jobs.

Together, these new investments will support TI’s plan to bring 90 per cent of its assembly and test operations internal by 2030 to have greater control of supply.

TI recently purchased the building next to its existing assembly and test factory in Kuala Lumpur that sits on 18 acres of land.

With a potential investment of up to RM9.6 billion, the company plans to convert the building into an assembly and test factory with more than 1 million square feet of cleanroom space.

Construction is expected to start later this year, with production to begin as early as 2025.

The new factory will connect to the company’s existing factory and create nearly 1,300 additional local jobs at full build.

TI is also constructing a new, six-level assembly and test factory next to its existing Melaka assembly and test factory. 

The new factory will include more than 400,000 square feet of cleanroom space and will connect to TI’s existing factory.

With a potential investment of up to RM5 billion, this new factory will support up to 500 local jobs at full build and is also expected to begin production as early as 2025.

Minister of Investment, Trade and Industry Tengku Datuk Seri Utama Zafrul Bin Tengku Abdul Aziz, said, “We are encouraged by Texas Instruments’ continued confidence in the Malaysian investment ecosystem. TI’s plans to expand its assembly and test operations reflect Malaysia’s clear positioning in the global semiconductor supply chain, while complementing our New Investment Policy and New Industrial Master Plan’s focus on attracting hi-tech, high value investments to support our increasingly digitized global and domestic economies.”

“Further, TI’s expanded investment footprint in our country will not only bolster domestic value chains, but also create knowledge-based, high-income employment opportunities for Malaysians.”

TI has 15 manufacturing sites worldwide, including wafer fabs, assembly and test factories, and bump and probe facilities.

Source: NST

MIDA: Texas Instruments to invest up to RM14.6 billion and create 1,800 more jobs in Malaysia

The Malaysian Investment Development Authority (Mida) and the Federation of Malaysian Manufacturers (FMM) aim to connect small and medium enterprises (SMEs) with multinational corporations (MNCs) and large local companies (LLCs) to enable them to become competitive global manufacturers and suppliers.

Mida chairman Tan Sri Dr Sulaiman Mahbob said by helping SMEs overcome high-entry barriers, it does not only contribute value to industrial growth but also to Penang’s economy and the regional economy as a whole.

Mida has forged a longstanding partnership with FMM with a shared mission to accelerate localisation initiatives and strengthen ties between domestic companies, including SMEs, MNCs, and LLCs, he said.

“Our goal is to help many more companies to grow from strength to strength, not just in terms of size but in terms of the capabilities they can bring to the table.

“To fully harness these opportunities, local companies must stay abreast of the rapid technological changes taking place globally, particularly in line with the Industry 4.0 revolution,” Sulaiman told reporters at the MIDA-FMM Industrial Linkage Day (Penang) here today.

He also said that SMEs, MNCs and LLCs have much to gain by joining hands in partnership as each entity brings unique strengths and advantages.

Sulaiman explained that MNCs and LLCs by virtue of their size are able to provide a depth of expertise, economies of scale and access to the latest technologies, while agile SMEs make quick decisions, operate nimbly, and drive innovation.

“It is through these partnerships that we create an unstoppable force, ensuring the robust growth of our nation’s economy.

“Amidst geopolitical developments like the ongoing Russia-Ukraine conflict, the Malaysian government is actively working to safeguard the interests of investors and industries. These stakeholders play a crucial role in providing jobs to our people and supporting our SMEs through their supply chain ecosystem,” he said.

Sulaiman added that the manufacturing sector in Malaysia continues to attract a healthy level of investments, with a substantial value of RM15.6 billion, or 21.8 per cent of the total approved investments.

This commitment is reflected in the approval of 192 manufacturing projects, poised to generate over 11,900 new job opportunities.

Meanwhile, FMM president Tan Sri Soh Thian Lai said 97.2 per cent of business establishments in Malaysia are micro SMEs (MSMEs), responsible for nearly 38.2 per cent of the country’s gross domestic product.

“MSMEs are indeed the backbone of our economy, being a source of foundation to propel growth and support the economic development of our nation,” he said.

Soh added that the main aim of the Mida-FMM Industrial Linkage Day (Penang) programme is held to nurture SMEs to penetrate the global supply chain and create a pool of suppliers who can generate or add value to the economy.

“Given the current scenario where numerous local companies encounter difficulties in establishing partnerships and forging supply chain connections with MNCs due to their limited capabilities, the Industrial Linkage Day (Penang) offers valuable assistance to SMEs to help them gain a head start in their global value chain journey.

“Collaborations with MNCs are a crucial factor in enabling the internationalisation efforts of SMEs, empowering them to expand their presence and play a significant role in the global market. To achieve this, a collective commitment from all stakeholders is needed to improve the overall business environment and strengthen the presence of SMEs in global value chains,” he said.

Soh stated that the programme holds a special focus on three pivotal industries: electrical and electronics (E&E), medical devices, and machinery and equipment (M&E): as these sectors are the driving force behind technological advancements, improved healthcare outcomes, and overall industrial growth.

“Since the launch of the Industrial Linkage Day in 2021, we have onboarded 22 anchor companies and 196 supplier companies.

“Today, we are delighted to have 11 more anchor companies from E&E, machining technology and medical device sectors, as well as 50 registered SMEs ready to supply to MNCs,” he said.

Source: Bernama

SMEs should join hands with MNCs, LLCs in bid to become global players – MIDA-FMM

The RM23.07 billion worth of potential Japanese investments clinched during the recent trade and investment mission (TIM) reflect the confidence that global companies have in Malaysia’s business ecosystem, according to the Malaysian Investment Development Authority (Mida).

Chief executive officer Datuk Arham Abdul Rahman said Mida welcomes the investment plans by the Japanese companies, which include NHK Spring, CKD Corporation, Denso Corporation and Omron, in Malaysia.

“As we focus on high technology, innovation, and sustainable industries, including the electric vehicle ecosystem, we aim to create vast opportunities for growth.

“We are committed to fostering strong partnerships and driving sustainable growth, propelling Malaysia’s position as a preferred investment destination,” he said in a statement.

The TIM to Tokyo and Osaka, Japan, from May 29-June 2 was led by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

The TIM focused on meeting with companies from various sectors including electrical vehicle (EV)-related components; electrical and electronics; machinery parts and components; environmental, social and governance (ESG); metal; and chemical and chemical products.

Mida said NHK Spring, a key player in integrated metal substrates, will expand production in Negeri Sembilan to meet the soaring demand for these substrates, which are essential for the electrification of automobiles.

“With the EV industry projected to grow significantly, NHK Spring’s expansion plans align with Malaysia’s efforts to foster a robust ecosystem for EV development.

“The construction of a new plant and facilities is set to be completed by December 2023, reaffirming the company’s commitment to Malaysia since its establishment in Senawang, Negeri Sembilan, in 1994,” the agency said.

The expansion further solidifies NHK Spring’s role in metal-based printed wiring board manufacturing and enhances Malaysia’s position in the global supply chain, Mida said.

Meanwhile, Omron has outlined its future business investment plan, focusing on manufacturing products using renewable energy to contribute to a carbon-neutral society in Malaysia.

“Omron’s commitment to sustainability aligns with Malaysia’s efforts to promote environmental-friendly practices and green technology,” the agency said.

Meanwhile, Japan Petroleum Exploration Company Ltd (Japex) is collaborating with Petroliam Nasional Bhd (Petronas) on carbon capture and storage (CCS) opportunities, including the exploration of suitable carbon dioxide (CO2) storage solutions in Malaysia.

As a hydrocarbon exploration, production, and transportation company, Japex aims to unlock potential CCS solutions through technical maturation activities, evaluating optimal capture, storage, and transportation methods, Mida said.

The collaboration, announced on Jan 28, 2022, also entails estimating emissions, capture volumes, and monitoring methods of CO2 stored underground.

“Mida will continue to actively promote investment opportunities and provide comprehensive support,” said Arham.

Mida announced previously that in the first quarter (1Q) of this year, Malaysia attracted approved investments in various economic sectors totaling RM71.4 billion (US$16.2 billion).

Of this, a total of 14 manufacturing and services projects with Japanese participation were approved under Mida’s purview, with a total investment worth US$47.0 million.

These projects are expected to generate potential employment for 653 people, positioning Japan as the 7th largest foreign investor in this segment for approved investments in 1Q 2023.

Source: Bernama

Japanese firms’ RM23 billion investment plans reflect confidence in Malaysia’s biz ecosystem