Kedah received 71 approved projects with total investments of RM9.7 billion from Jan to June 2022, of which RM8.9 billion were from foreign sources, said the Malaysian Investment Development Authority (MIDA).

Chief executive officer Datuk Arham Abdul Rahman said these projects will be instrumental in creating over 3,209 job opportunities.

“Despite the challenging global economic environment, Kedah has been one of the top five states for investment by the business community,” he said in his welcoming speech at the MIDA Invest Series: Unfolding States Business Potential (Kedah).

Arham revealed that the Project Acceleration and Coordination Unit or PACU@MIDA, which facilitates the speedy implementation of investment projects in the country, has also facilitated Kedah with a total of 277 approved manufacturing projects from 2017 to July 2022.

“A total of 188 projects (68 per cent) have been implemented, while 68 projects (24 per cent) are in active planning stages, such as site acquired and discussion/negotiation with relevant stakeholders, and 21 projects (8 per cent) are yet to be implemented,” he said, adding that MIDA had facilitated 1,600 projects in terms of implementation as of today.

He said for many years, the northern region of Malaysia has been driving the growth of the manufacturing industry by being a preferred destination for offshore semiconductor manufacturing activities, and a thriving electric and electronic regional hub.

“From the proposed Kedah Aerotropolis to the various industrial parks, Kedah has the potential to become a global industrial hub.

“The move to introduce the Express Construction Permit known as E10 clearly indicates Kedah’s aspiration to be an ideal destination for global business expansion,” he added.

He said Kedah has been making great advancements recently, proving that it is more than just a “Rice Bowl State” of Malaysia.

The E10 initiative speeds up the process of allowing investors to operate within a 10-month period from the average of 24 months.

“In fact, E10 was first implemented in Kedah, specifically by the Kulim Municipal Council and has been acknowledged by the Special Task Force to Facilitate Business (PEMUDAH) as an example of best practices that should be emulated by other states and local authorities,” he said.

Meanwhile, Arham said there are notable companies leveraging Kedah’s well-established infrastructure and network of experienced support services.

Among the companies that have set their footprint in Kedah are Intel, Risen Solar Technology, Infineon, First Solar, and Fuji Electric.

“These companies hold much promise for further collaborations and opportunities for our local businesses,” he said.

Source: Bernama

Kedah records RM9.7 bln total investments from Jan to June 2022 – MIDA

Swedish medical products company, Mölnlycke Health Care AB (Mölnlycke) has opened a new surgical glove plant in Kulim Hi-Tech Park, Kedah with a total investment of 50 million euros (EUR 1= RM4.54).

In a statement, the Malaysian Investment Development Authority (MIDA) said that the new facility is part of Mölnlycke’s sustainability roadmap – WeCare, to meet the increasing demand for surgical gloves.

Spanning 29,164 square metres, the facility is fully equipped with cutting-edge automated glove production and packaging line, and is expected to create some 400 new jobs.

MIDA chief executive officer Datuk Arham Abdul Rahman said Mölnlycke’s new production facility in Malaysia is a mark of confidence in the continuous sustainable growth of the Malaysian economy and will be a boon for Malaysia to maintain its leadership position in the glove manufacturing sector.

“We are committed to supporting industry leaders like Mölnlycke and we hope to see the company grow to greater heights in the years ahead,” he said.

The new manufacturing plant was officiated by Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor, Swedish ambassador to Malaysia, Joachim Bergstrom and Mölnlycke chief executive officer Zlatko Rihter yesterday.

MIDA said Malaysia is core to Mölnlycke’s surgical gloves business, and the company currently has three other factories in the country, two of which are for the manufacturing of surgical gloves and another for packing.

With business in over 100 countries, Mölnlycke entered the Malaysian market in 1990 and currently employs over 2,500 Malaysians.

The new plant is part of Mölnlycke’s sustainability strategic roadmap that is aimed at creating shared values for all stakeholders, including contributing significantly to Malaysia’s sustainability goals, such as energy usage reduction, economic growth and innovation in infrastructure.

Source: Bernama

Mölnlycke opens surgical glove plant in Kulim Hi-tech Park

The Malaysian Investment Development Authority (MIDA), together with the Kedah state government, will be promoting the state as an investment-friendly location through the MIDA Invest Series: Unfolding States Business Potential initiative. 

Invest Kedah Bhd chief executive officer Muhamad Mahazi Ibrahim said he would present the facilities provided by the state government, including strategic areas for investors to invest in, at the programme scheduled to take place tomorrow in Kuala Lumpur.

“We have industry, tourism, agriculture… we have more than 20 industrial sites. For example, in Kulim, Sungai Petani, Bukit Selambau, Gurun, Bukit Kayu Hitam and KRC (Kedah Rubber City). Those are all our industrial sites.

“I will inform tomorrow’s audience, consisting of embassy representatives, business chambers, and industry players, among others, and they will know what Kedah has to offer and what we have prepared,” he told Bernama today.

Regarding investments in the tourism sector, Muhamad Mahazi said Kedah is more focused on health tourism whereby investors have the opportunity to invest in the state to develop a private hospital in Langkawi in addition to Kulim where there is an industrial area which is the Kulim Hi-Tech Park (KHTP).

He said Kedah is trying to become an investor-friendly state by simplifying administrative matters such as land matters and also at the local authority level where there is an Express Construction Permit or E10 initiative that speeds up the process of allowing investors to operate within a 10-month period from the average of 24 months.

“Come to Kedah, we have everything to give to investors. A friendly, conducive state, the cost of living is cheap, Kedah itself is a green area, we want them (investors) to come and see our vast paddy fields,” he said.

Meanwhile, Kedah Industry and Investment Committee chairman Datuk Ku Abd Rahman Ku Ismail said Kedah recorded a total manufacturing investment of RM9.7 billion for the first six months of this year.

“We will offer our best to investors. For the first six months of this year, we are number one in manufacturing industry investment. 

“The manufacturing sector creates many job opportunities and we are confident that we are on the right track,” he said.

Source: Bernama

Kedah set to promote state as investment-friendly through MIDA Invest Series

DATA centres are in vogue

Due to a growth of cloud computing, demand for data centres is growing exponentially and Malaysia is fast becoming a hub.

The Malaysian Investment Development Authority (Mida) is pursuing such investments.

Lim Bee Vian, Mida deputy chief executive officer (investment development) says: “The data centre colocation market has been witnessing very steady growth due to the ever increasing volume of data generated and the increased usage of Internet-based services.”

She cites the case of Microsoft Corp, which last year announced plans to establish its first data centre in the country to deliver cloud services locally.

Then came another Nasdaq-listed company, Chindata Group Holdings Ltd.

The company late last year announced the construction of its fourth hyperscale data centre in Johor, with an investment value of about Rm2.5bil over the next five years.

Malaysia has also attracted Hong Kong-listed GDS Holdings Ltd, which broke ground in Johor on April 25 this year for the development of a data centre with a total investment value of Rm1.38bil.

In the second half of this year, Google said it plans to include Malaysia as its new Google Cloud region, an investment that will involve a data centre.

More recently, YTL Power International Bhd, through its subsidiary, YTL Data Center Holdings Pte Ltd, said it is investing Rm1.5bil for the first phase of the YTL Green Data Centre Park in Johor.

Sea Ltd will become the anchor tenant for the YTL Green Data Centre Park.

Japan-listed Nippon Telegraph and Telephone Corp also has plans to invest over Us$50mil (Rm227mil) for its sixth data centre in Cyberjaya.

Mida’s Lim cites a report by Technavio, a market research firm, that says that the data centre market in Malaysia is expected to increase by Us$2.08bil (Rm9.43bil) from 2021 to 2026.

This translates to a compound annual growth rate of 15.72%.

But data centres are not without controversy.

Detractors point out a few problems with this type of investments coming into the country.

One concern regarding data centres, especially the hyperscale ones, is environmental-related.

This is because data centres tend to use up a lot of electricity as well as water.

“In Malaysia, our electricity and water tariffs are pretty low in comparison with many countries. So that’s why data centres like it here, ” says an industry observer.

However, he adds, “But is it right to bring in such investments that use up so much of our resources while not creating suf­ficient jobs.

“There is also the issue that almost all the hardware and software for data centres will be imported into the country.

“Furthermore, these projects don’t employ that many people as the data centres are largely software and artificial intelligence (AI) driven, ” he points out.

Notably, Singapore had in 2019 imposed a moratorium on the construction of new data centres.

Singapore’s senior minister of state, ministry of communications and information Janil Puthucheary said one of the reasons the moratorium was imposed was because data centres are “intensive users of water and electricity”.

This has led to neighbouring countries such as Malaysia and Indonesia benefiting as data centre investments went there.

However, earlier this year, Singapore removed the moratorium and is now welcoming the construction of new data centres again.

Puthucheary pointed out that there are new post-moratorium measures which are intended to “facilitate the calibrated growth of data centres that possess the best in-class technologies and practices for energy efficiency and decarbonisation”.

Mida’s Lim, though, disputes the theory that data centres do not create much employment.

”One of the benefits or spillovers of data centre projects in Malaysia is the creation of job opportunities,
” she says.

She says data centres not only create direct employment in facilitating the operation of the data centre which requires high-skilled, well-remunerated roles that require significant training and educational and professional qualifications, but also indirect employment.

These include construction-related jobs and the maintenance of the data centre infrastructure.

In regards to the acceleration towards digitalisation, Lim says: “Data centres are a critical digital enabler.”

According to her, the investing environment is evolving in Malaysia, making it totally different compared to years ago.

“Those days, Malaysia used to be heavily involved in manufacturing, ” she says.

“Now, there is more emphasis on services, ” she adds.

However, she says that currently the focus is on both services and manufacturing, as they complement one and another.

Source: The Star

Data centre investments – good or bad for Malaysia?

The Malaysian Investment Development Authority (MIDA) has appointed Tan Sri Dr Sulaiman Mahbob as chairman effective Sept 3, 2022.

Ministry of International Trade and Industry (MITI) senior minister Datuk Seri Mohamed Azmin Ali said MIDA’s role demands a creative, innovative and comprehensive approach and it has to be competitive and resilient in order to attract quality and high-tech investments into the country.

“Indeed, Sulaiman’s appointment will provide a fresh perspective to raise MIDA’s dynamism, building on his invaluable expertise and vast experience, especially in the areas of economic planning, strategic business modelling, and global trend analysis,” he said in a MIDA statement today.

This is the second time Sulaiman has been elected as the chairman. His first stint was from 2009 to 2012. 

Sulaiman has a distinguished career in the public service, having served in various ministries and departments.

He is currently the chief executive officer of the National Recovery Council, a board member at   the Institute of Strategic and International Studies and Perbadanan Tabung Pendidikan Tinggi Nasional.

He is also Malaysian Institute of Economic Research chairman, and a board member at Perbadanan Insurance Deposit Malaysia and the Malaysian Communications and Multimedia Commission.

Sulaiman graduated with an economics degree at the University of Malaya and obtained his PhD at Maxwell School, Syracuse University, USA.

“A veritable thought leader in the fields of economic policy, public finance and development as well as on a broad range of subjects, Sulaiman has regularly articulated his views via op-eds and lectures at home and abroad,” MIDA said.

Source: Bernama

Sulaiman Mahbob appointed as MIDA Chairman effective Sept 3

Malaysia has attracted RM123.3 billion (US$28.0 billion) worth of approved investments in the manufacturing, services and primary sectors involving 1,714 projects from January to June 2022 and 57,771 job opportunities are expected to be created in the country. 

In a statement today, the Malaysian Investment Development Authority (MIDA) said foreign direct investments (FDIs) remained the major contributor — at 70.9 per cent, or RM87.4 billion (US$19.9 billion) — while investments from domestic sources contributed 29.1 per cent amounting to RM35.9 billion (US$8.2 billion).

In this period, the services sector assumed a significant role in driving the country’s economic recovery, accounting for 63.3 per cent of total approved investments with RM78.0 billion (US$17.7 billion) from 1,351 projects.

This translates into a 48.8 per cent rise against the RM52.4 billion (US$12.6 billion) worth of investments for the first six months a year ago, the statement said.

A total of 22,569 new jobs are expected to be created in the services sector for 2022, the statement said.

The manufacturing sector came next, with RM43.1 billion (US$9.8 billion) worth of approved investments, accounting for 34.9 per cent of total approved investments versus RM75.8 billion (US$18.3 billion) for January-June 2021.

MIDA cited a mega project approval for the high total approved investments in the manufacturing sector in the 2021 period.

Of the total FDIs approved, MIDA said China dominated with investments totalling RM48.6 billion (US$11 billion), followed by Germany (RM9 billion) (US$2 billion), Singapore (RM6 billion) (US$1.4 billion), Brunei (RM5.1 billion) (US$1.2 billion), and The Netherlands (RM4.1 billion) (US$900 million).

For state-approved projects, MIDA said five major states — Johor, Selangor, Sabah, Kedah and Penang —  contributed RM103.5 billion (US$23.5 billion), or 83.9 per cent of the total investments approved.

 International Trade and Industry (MITI) Senior Minister Datuk Seri Mohamed Azmin Ali said Malaysia is on the right trajectory to secure more high-quality, high-impact and capital-intensive projects, with services being the economy’s key growth driver and the largest contributor for approved investments for the first half of this year. 

“In maintaining the momentum, MITI will continue to strengthen the country’s competitiveness by developing economic complexity, nurturing a strong industrial ecosystem with innovation intensity, enhancing inclusivity by creation of high-income jobs and promoting opportunities to participate in the regional and global supply chains. 

“Driven by the National Investment Aspirations, we will intensify our focus towards sectors such as the digital economy, electrical and electronics, pharmaceutical, chemical and aerospace with significant economic potential and sustainable long-term growth,” he said.

MIDA said that the government has lined-up strategic and focused trade and investment missions targeted to capture investments in high technology, innovation and research-driven industries that will complement and further strengthen the Malaysian industrial ecosystem.

MIDA said that foreign investments made up the largest portion, recording RM50.4 billion (US$11.5 billion), or 64.6 per cent of total approved investments for the services sector, while the remaining 35.4 per cent, or RM27.6 billion (US$6.3 billion) were from domestic sources.

Source: Bernama

Malaysia attracts RM123.3 bln worth of approved investments for Jan-june 2022 period — MIDA

Malaysian Investment Development Authority (MIDA) has partnered AP Moller-Maersk (Maersk) to drive high-quality investments into Malaysia, contributing to the growth and development of the supply chain sector in the Malaysian economy and boosting it as one of the logistics hubs in ASEAN.

MIDA investment promotion and facilitation deputy chief executive officer Sivasuriyamoorthy Sundara Raja said both parties would work together to attract high-tech and high-impact investments in sectors including automotive, electrical and electronics, machinery and equipment, medical devices, aerospace, renewable energy and consumer technology.

“The collaboration with Maersk will bring more targeted global investments into Malaysia through strategic and value-added engagement approach to multinational companies,” he said during the MIDA-Maersk memorandum of understanding (MoU) and strategic partnership to promote investments in Malaysia signing here today. 

He also said that by leveraging Maersk’s capabilities in integrated logistics, the strategic partnership could transform Malaysia into a regional logistics hub in ASEAN, further boosting infrastructure development and free trade.

“I hope that making full use of services provided, it will attract more manufacturing or trading companies, particularly multinational companies, into Malaysia,” he said.

He noted that MIDA has also facilitated Maersk’s International Integrated Logistics Services (IILS) status application, which will be only granted to logistics companies that were capable of offering, as a single entity, regional or global integrated and seamless door-to-door logistics services, along the value chain.

“With the approval of the IILS status, Maersk will now be issued the Freight Forwarding Agent and Customs Agent licence by the Royal Malaysian Customs Department and can undertake freight forwarding activity by itself,” he said. 

Currently, Maersk has seven warehouses in Peninsular Malaysia for their consolidation and fulfilment activities with a capacity of up to 68,000 square metres, with over 300 staff members in 12 locations nationwide.

Sivasuriyamoorthy said the logistics industry has grown rapidly in Malaysia in recent years amidst the COVID-19 pandemic and it is expected to reach US$55 billion by 2026 at a compound annual growth rate (CAGR) of over four per cent.

Meanwhile, Maersk Thailand, Malaysia and Singapore area managing director Rupesh Jain said the collaboration with MIDA would bring more targeted global investments to Malaysia and provide an integrated supply chain solutions through a value-adding engagement approach to multinational companies, while facilitating their investment entrance or expansion in the country. 

Source: Bernama

MIDA partners Maersk to drive high quality investments into Malaysia

Terengganu has recorded a total investment of RM2.3 billion with 29 manufacturing projects approved from 2017 to June 2022, said Malaysian Investment Development Authority (MIDA) deputy chief executive officer, investment promotion and facilitation, Sivasuriyamoorthy Sundara Raja. 

In his welcoming speech, he said more than half of these investments were from foreign sources, recording a total of RM1.27 billion. 

“These projects have been instrumental in creating over 1,727 job opportunities, mainly in the fields of petroleum products (including petrochemicals), chemicals and chemical products, non-metallic mineral products, wood and wood products, as well as machinery and equipment.

“Additionally, from January to March 2022, investments worth RM7.2 million were approved, in the food manufacturing and wood and wood products industries,” he said at the MIDA Invest Series: Unfolding States Business Potential – A Briefing by Invest Terengganu here today. 

Sivasuriyamoorthy said MIDA was pleased to see notable companies leveraging Terengganu’s well-established infrastructure and network of experienced support services.

He said among the companies are JXR Manufacturing Sdn Bhd, CJ Bio Malaysia Sdn Bhd, Kemaman Bitumen Company Sdn Bhd, Arkema Thiochemicals Sdn Bhd, Encompass Industries Sdn Bhd and Eastern Steel Sdn Bhd.

“These companies hold much promise for further collaborations and opportunities for our local businesses.

“MIDA will continue to work closely with companies and businesses to provide a more conducive business environment to increase growth opportunities,” he added. 

Meanwhile, Terengganu state committee chairman for trade, industry, regional development and administration wellbeing Datuk Tengku Hassan Tengku Omar said Terengganu has been making great strides forward recently with the Kerteh Biopolymer Park, a bio-economy hub for specialty chemicals that spans over 140 hectares with both Phase 1 and Phase 2 fully taken up.

He said the third phase of the park opened last year to accommodate growing demand from investors. 

“To date, the total accumulated investment in Kerteh Biopolymer Park has increased to RM5.6 billion, with more than 5,000 employment opportunities created for the people of Terengganu.

“Terengganu has committed to improve economic growth by adding more industrial parks from the current 25 industrial areas covering a total of 4,158.26 hectares inclusive of Kerteh Terengganu Industrial Park, Pulau Kerengga Industrial Park and Terengganu Silica Valley,” he said. 

Tengku Hassan said this is another step towards making sure that there are good prospects not only now but in the future in Terengganu.

Source: Bernama

Terengganu records RM2.3 bln investments from 2017-June 2022 – MIDA

Panasonic Group of Companies in Malaysia commemorated the 40th anniversary of Malaysia’s Look East Policy (LEP), which has been instrumental in driving the country’s industrialisation.

In the presence of Japanese parliamentary vice-minister of economy, trade and industry Iwata Kazuchika, Japanese Ambassador to Malaysia Takahashi Katsuhiko and Malaysian Investment Development Authority (Mida) chief executive officer Datuk Arham Abdul Rahman, the occasion brought together LEP alumni who have contributed to Malaysia’s social and economic development through learning from Japan.

Since 1965, Panasonic has contributed to about 1% of Malaysia’s gross domestic product (GDP) and created some 20,000 jobs through the 21 companies under Panasonic Group of Companies in Malaysia.

In addition, Panasonic started the Human Resources Development Fund-certified in-house education and training institution in Malaysia, coaching some 5,000 employees every year for the past 25 years.

From 1996 to March 2020, a total of 375 excellent employees, 61 of whom were Malaysians, graduated from the Panasonic Manufacturing College in Osaka, Japan – a core manufacturing human resource development institute offering a one-year programme.

The LEP, introduced by former prime minister Tun Dr Mahathir Mohamad, placed great significance on the development of infrastructure and human resource.

As a company that had grown its business through human resource development for over a century, Panasonic was well placed to co-lead the charge in building human capital.

“Panasonic’s Basic Business Philosophy and the practice of 5S (sort, set in order, shine, standardise and sustain) concentrates on producing employees who can contribute to society, especially in the manufacturing sector,” said Panasonic Malaysia Sdn Bhd (Panasonic management division) managing director Hiroyuki Imizu.

“Our training programmes are rooted in fostering work ethic and cultivating an independent and responsible mindset, which has led to employee development and the pride of job ownership.

“As a result, this mindset is a source of profit and has contributed to the realisation of the LEP.

“By further developing our business with a focus on human resource development, we hope to continue making meaningful contributions where Malaysia is richer both socially and economically.

“Malaysia, in particular Mida, has been supporting Panasonic for the past 57 years in its capacity as a one-stop solution centre and we are immensely grateful for the cooperation,” he said.

Arham said the commemoration was a testament to strong bilateral relations between Malaysia and Japan since 1957.

“Matsushita Corporation, known as Panasonic Corporation today, was one of the earliest Japanese companies that established their footprint in Malaysia.

“It began operations in 1965 and never ceased to consider Malaysia as part of its growth opportunity.

“The 40th anniversary is a great opportunity to publicise the significant role the LEP has played.

“It also aims to encourage Japanese and Malaysians to walk hand-in-hand towards the future, through mutual understanding and friendly cooperation in various fields,” said Arham.

Since the Malaysian government adopted the LEP in 1982, more than 26,000 promising Malaysian youths have gone to Japan for studies and training.

They have been active in the front line of various fields in Malaysia, playing an important role in connecting both countries.

Many of these former students had also played a critical role in the start-up of Panasonic’s operations.

Seventy-five of them are still working within the group, with one rising through the ranks to become deputy managing director of Panasonic Industrial Devices Malaysia Sdn Bhd.

To date, some 1,500 Japanese companies, including Panasonic Group of Companies, are operating in Malaysia, with over 400,000 Malaysians in their employment.

Source: The Star

Honouring Look East Policy alumni

Located strategically at the heart of Asean, Malaysia remains an attractive investment destination for business growth and global expansion. In the last 50 years, the continuous inflow of foreign direct investment (FDI) has been the catalyst of Malaysia’s booming economic development. Such mileage has also fuelled Malaysia’s export-oriented growth strategy and accelerated socio-economic transformation throughout the nation.

As we look forward amidst new challenges, we must zero in on what we can uniquely contribute to the development of Malaysia. The opportunity ahead requires us to reimagine our work done in the past, to execute strategic approaches that will elevate our beloved nation. We have been actively involved in the promotion of Malaysia’s competitive economy, which is paramount in order to provide a stronger foundation for the attainment of sustained growth and development, particularly in the process of transformation towards becoming a developed nation.

Our efforts are focused and concentrated on developing new clusters and industry capacities aligned to global changes and demands, to ensure our position as a regional leader is maintained and strengthened. We achieved RM42.8 billion in approved investments recorded for the first quarter of 2022. Malaysia received the highest ranking by Milken Institute as the No.1 destination for FDI in the Southeast Asia region. This is one of the testaments to the confidence our stakeholders have in our capabilities to attract and facilitate high-value, knowledge-intensive investments.

We aim to create a sustainable investment ecosystem with the right landscape, technology, talent and growth strategies to position Malaysia as a competitive investment destination for global players. The nation, through its long-term strategies like the Twelfth Malaysia Plan (12MP) and the National Investment Aspirations (NIA), is mapping a new path towards economic diversity and complexity. Achieving this objective would also mean the development of domestic investments and facilitating the growth of Malaysian companies. We aim to develop Malaysian conglomerates, help Malaysian companies rise up in the global value chain, scale local companies to achieve international standards and deliver technology acquisition support for Malaysian-owned companies.

Gaining Insights

Malaysian Investment Development Authority (MIDA), through its presence via its 20 global offices, gathers valuable information and insights on emerging industries and sectors that can be leveraged by Malaysia.

Identifying emerging industries is the initial step, which then leads to a wider process of identifying Malaysia’s capabilities and readiness to support these industries in this region.

Our exploratory efforts have consistently led to Malaysia’s expanding economic sectors. From advancing the growth of heavy industries to meeting the demand of a global electrical and electronics supply chain, we have now transitioned our focus to realising a robust digital economy. 

The idea is not only to create a conducive environment for investors in existing and emerging fields, but also to develop sustainable industry ecosystems.

The ecosystem must include investment incentives for the long run, growth policies and roadmaps for each industry, a highly capable workforce, R&D (research and development) capacity, and global supply chain access and quality.

Our unique propositions to the world players extend beyond our geographical and economic strengths to our access and industrial leadership within the region, growth support, homegrown talent and digital landscape, which assures investors that our role extends beyond approving investments. We are invested in the growth and expansion of our investors.

Progressive Growth Targets

The National Investment Aspirations, as announced in 2021, outlines some key structural growth needs for Malaysia to remain competitive in the global market as an investment destination.

The efforts under the NIA will look at increasing economic complexity by exploring the entry of more complex and high-value industry clusters. This has been actively undertaken since 2019 and even through the pandemic, by identifying new clusters that can expand our economic prowess. During the pandemic, sectors which continued to grow and expand included digital economy sectors, medical devices, pharmaceuticals, electrical and electronics (E&E) and food technology.

In support of these new clusters, the talent pool in Malaysia needs to be future-ready. Educational and skill-based development are underway, with emphasis placed on technological capabilities.

The nation’s talent ranked 26th out of 88 countries in the Global Talent Competitiveness Index 2020 (GTCI 2020). NIA aims to provide high-value job opportunities through strategic investments to a growing and ready talent pool in Malaysia.

Another aim is to extend domestic linkages by increasing local vendors’ participation in the global supply chain. Local R&D and innovation efforts will be expanded, alongside negotiated opportunities by investors through proactive vendor management programmes.

Malaysia must adopt new comprehensive approaches to reinvigorating the investment ecosystem, respond adequately to emerging megatrends and the evolving needs of our investors, and drive Malaysia’s economic competitiveness.

The NIA has been central to revitalising Malaysia’s investment climate, attracting high-quality investments into the country and creating high-income jobs. NIA will be the catalyst for Malaysia’s transformation into an ideal regional investment hub. Through the development of the five sectors, identified as economic propellers, namely E&E, pharmaceuticals, digital economy, aerospace and chemicals, we would be able to accelerate the production volume of sophisticated products and services and R&D activities to innovate our offerings, thus increasing our export output and economic diversity.

Moving ahead of our regional counterparts, Malaysia is fully committed to Environmental, Social and Governance (ESG) compliance. In virtue of doing business in Malaysia, we aim to lead our investors and local industry players to adopt and implement ESG proactively. Bound by our zero-carbon commitment, our roles as investment promoters and economic frontliners include efforts to zoom in on investors who can contribute to a better world.

Constant Growth

Transcending the idea of merely being a mill space to churn out mass production, Malaysia has over the last two decades built a stronger foundation to position ourselves as knowledge partners and a regional base for global players in the fields of E&E, medical, automotive, aerospace, chemicals, global service delivery and more.

Some global innovators whom we have had the honour of facilitating the deployment of their new investments recently include Infineon Technologies, Intel, AT&S, Risen Solar, Smith+Nephew, Porsche, Mercedes Benz, SK Nexilis, Nexperia, Dexcom and Microsoft.

MIDA, with over five decades of experience and adaptability, understands the needs of investors and fosters collaborations with relevant and supportive partners in developing an industrial ecosystem and reliable supply chains to cater to business requirements.

Supporting networks like licensing, financing, local suppliers, talents, state government support and more, are carefully cultivated and mobilised for our existing and potential investors, as happy investors mean growing investments and more job opportunities for Malaysians. 

While bringing in global players is a focus, we also want to initiate new Malaysian conglomerates through local investments. Increasing participation of local companies in global supply chains will help strengthen our local ecosystem for each industry. However, in our quest for continuing high growth, we are also taking steps to ensure that ESG considerations are not neglected, in line with our philosophy of sustainable development, as envisaged in the United Nations’ Sustainable Development Goals (UNSDG). A holistic investment ecosystem creates the ability to regenerate and sustain our economic diversity in the long term.

Datuk Arham Abdul Rahman is the Chief Executive Officer of the Malaysian Investment Development Authority (MIDA). 

Source: The Edge Markets

Malaysia’s capabilities as a preferred global investment hub

The Malaysian Investment Development Authority (MIDA) and local carmaker Perodua have today officially launched a strategic partnership, MIDA-Perodua Digital Transformation Ecosystem Programme, aimed at upgrading local automotive suppliers through the adoption of Industry 4.0.

MIDA chief executive officer (CEO) Datuk Arham Abdul Rahman said the agency’s initiative to facilitate local companies to adopt digitalisation and Industry 4.0 has successfully contributed to the immense growth in Perodua’s manufacturing volume.

He said the first phase of the programme has identified three potential Perodua partners, and moving towards phase two, another five local companies have been identified to participate in the programme that have shown much potential and growth opportunities.

“The initiation of the MIDA-Perodua collaboration back in 2020 was crucial to ensure a steady development of our local player’s capabilities in the automotive industry.

“These companies have been granted Domestic Investment Strategic Fund (DISF) of up to RM10 million as part of the government’s initiative to assist local companies to embark into the global supply chain,” he said during the launch today.

According to Arham, apart from funding assistance, the government via MIDA will be extending its support services to help these companies obtain growth in terms of productivity, talent and bridging financial and technology gaps.

“We are confident that through such facilities and empowerment measures, these automotive players will be able to increase their business offerings and expertise to innovate its products and services and climb the supply chain ecosystem,” he added.

Meanwhile Perodua president and CEO Datuk Seri Zainal Abidin Ahmad said the company is fully committed to achieve the objective of the programme to facilitate its supplier in adopting the digitalisation and Industry 4.0 in a guided manner.

“The implementation of Industry 4.0 is not only for the automotive supplier’s benefit, but the impact of this programme will contribute greatly to the nation’s digital transformation agenda,” he said.

Zainal Abidin noted that the support given by MIDA is crucial as this programme will nullify any need for financing cost that will be passed to the customer.

“For the rest of 2022, Perodua has decided to absorb any price increase of our manufacturing materials and continue to help our vendors to survive in their businesses,” he added.

Source: Bernama

MIDA, Perodua launch partnership to facilitate digitalisation of local automotive suppliers

The Ministry of Finance (MOF) and the Malaysian Investment Development Authority (MIDA) are studying the special incentives for the investment made by Dagang NeXchange Bhd (DNeX) and Hon Hai Precision Industry Co Ltd (Foxconn) from Taiwan.

Senior Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali said his ministry is considering it as the joint effort between the two companies can draw high technology investments.

“The finance ministry and MIDA are studying the said investment. It is being discussed and I believe it will be considered by the MOF as it can attract new investments as at present we want to introduce more innovative investments to draw in high technology and quality investments,” the minister told Dewan Negara today in reply to questions about the latest development on the cooperation between DNeX and Foxconn.

On May 17, DNeX signed an MOU with Foxconn subsidiary  Big Innovation Holdings Limited (BIH) to set up a joint venture to build a wafer fabrication plant in Malaysia.

The facility can produce up to 40,000 wafers a month on 28-nanometer and 40-nanometer technology.

According to the minister, in 2021 MIDA had approved 94 projects in the electrical and electronics sector worth RM148 billion.

“Of that, 64 per cent, or RM95 billion, is from new projects and expansion by multinational companies such as  Infineon, Fuji Electric, Intel, Onsemi, Nexperia, AT&S, and others,”  he added.

Source: Bernama

MOF, MIDA studying special incentives for DNeX, Foxconn investment

The Malaysian Investment Development Authority (MIDA)  expects more Environmental, Social and Governance (ESG) investments to be secured this year, helping the country’s overall investment target for 2022 to be achieved.

MIDA chief executive officer Datuk Arham Abdul Rahman said the ESG investments not only involved new foreign direct investments (FDI) and domestic direct investments (DDI), but expanded investments from existing companies in Malaysia.

“I am not only referring to the new investments that will be coming to Malaysia, but also companies that are already operating here. Multinational corporations (MNCs) that are already operating in Malaysia have to ensure that when they export back their products, they have to be ESG-compliant.

“We are here to support these MNCs in order for them to be ESG-compliant. We want to put in place all the policies, facilitation, and support to ensure that Malaysia is ready to host new greenfield investments coming in for the next few years,” he told the media after a MIDA networking event and panel session on Malaysia’s ESG agenda, in line with the National Investment Aspiration (NIA).

Last year, Malaysia approved 889 green technology and green efficiency projects with an investment value of RM3.7 billion.

From January 2022 to March 2022, the government through MIDA has successfully approved 212 green technology projects and services activities amounting to RM433 million.

From 2001 to March 2022, MIDA approved investments related to green projects and green services amounting to RM35.5 billion with 3,186 projects in total.

In his welcoming remarks, Arham said the green technology incentives have been well received since their launch in 2014.

“The extended Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) until December 2023 have continued to receive overwhelming responses from the industrial and commercial sectors.

“As such, companies are encouraged to invest in harnessing renewable energy (RE) sources, including solar, biomass, biogas, and mini-hydro, to use energy efficiency (EE) equipment and qualifying green services,” said Arham.

He added that there are many untapped opportunities for services related to RE, energy efficiency, electric vehicles (EV) support services such as services for EV charging stations, operation of EV charging stations and maintenance, repair and overhaul of EVs, green buildings, green data centres, green certification and verification, and green townships, to name a few.

Commenting on the 2021 investment performance where Malaysia achieved RM306.5 billion in approved investments, Arham said it was mainly due to electrical and electronic products (E&E) and semiconductor players ramping up their production.

“They increase their investments to meet the shortage of supply because of the increasing demand due to COVID-19.

“Last year was a very exceptional year because of the big projects in the semiconductor and E&E sectors. Nevertheless, this year I am very optimistic that the number of FDI investments in total for the whole of 2022 will still be a good number,” he said.

Meanwhile, the United Nations Global Compact Network Malaysia & Brunei director of programmes Shanta Helena Dwarkasing said sustainability is imperative to a country that wants to be globally competitive and attractive.

“Many European and ASEAN countries showed their commitment to climate pledges with proactive measures, as ESG will be a value-add that investors are looking for.

“Hence, we can expect Malaysia, especially with more companies such as small and medium enterprises (SMEs), to embrace ESG standards,” she said during the panel session.

Source: Bernama

MIDA expects more ESG-related investment this year

The Malaysian Investment Development Authority (MIDA) has praised Jabil Penang’s efforts in accelerating automation and digitalisation initiatives through its partnerships with local vendors in Malaysia.

MIDA Chief Executive Officer Datuk Arham Abdul Rahman said following Jabil’s lead, he hopes to see more collaborations, within and across industries, so that the potential of technology can be fully harnessed in their operations.

The digital economy is expected to comprise 22.6% of Malaysia’s gross domestic product (GDP) and create over 500,000 jobs by 2025.

“Through innovations and contributions in the areas of IR4.0 (Fourth Industrial Revolution) technologies like artificial intelligence, robotics, virtual reality, the Internet of Things, and big data analytics, the manufacturing sector plays an empowering role in building a digitally driven, high-income nation and a regional leader in the digital economy,” he said in a statement here on Monday (Aug 1).

Jabil, a global manufacturing solutions provider, hosted an automation and digitalisation workshop in its Batu Kawan facility to strengthen its automation capabilities for greater operational and resource efficiencies.

The two-day scenario-based workshop saw Jabil Penang project leaders submit automation and digitalisation proposals which were then put through simulations and demonstrations by equipment partners and subject matter experts.

The workshop is part of a series of curated, specialised programmes that empower the existing workforce to upskill and reskill to meet evolving market demands and establish digitally-led creative approaches to address common operational issues on the shop floor.

Jabil Penang Managing Director Tan Siew Jin said while automation and digitalisation enable Jabil to unlock new potential in the areas of operational excellence, people or human labour continues to be a critical element in its ability to deliver the most progressive factories. 

“With proper upskilling, development, and training programmes, our trained and certified automation engineers and technicians will continue to give us the edge in technical competencies, so we may deliver differentiated customer, supplier, and employee experiences,” he said.

He said the pandemic has created a community of engineering and operations leaders who are now armed with a greater understanding of modern enterprise solutions, collaboration tools, and cloud-based capabilities.

“We have seen the strengthened ability to enhance production systems and the manufacturing value chain since furthering our adoption of automation and digitalisation.

“With a predictable operating environment where skilled talents work safely alongside machines that can learn, think, and act, I am heartened that our initiatives across manufacturing, industrial and test engineering are in line with MIDA’s push towards high-end manufacturing and services,” he said.

Tan said Jabil looks to continue playing a visible role in collaborating via public-private and academic partnerships, creating employment opportunities for Malaysians, and actively leveraging technology transfer opportunities across its global operations.

Source: Bernama

MIDA applauds Jabil Penang’s efforts in accelerating automation, digitalisation in Malaysia

• Operationalize US-M’sia Memorandum of Cooperation on semicon supply chain
• Industry-Academia link to upskill 30k Malaysians on supply chain automation

In the presence of the Malaysian Investment Development Authority (MIDA) and Microsoft Malaysia, Silicon-Valley-based Seeloz Inc signed Memorandum of Understanding (MoU) with Collaborative Research in Engineering, Science and Technology Centre (CREST) to launch Empower Malaysia, a national initiative to boost resilience within major value chains in Malaysia through AI-Driven Supply Chain Automation.

The initiative enjoys the full support of MIDA in collaboration with the American Malaysian Chamber of Commerce (AMCham) and major academic institutions in Malaysia including Universiti Teknologi Malaysia (UTM), University of Malaya (UM), Universiti Malaysia Pahang (UMP), Universiti Sains Malaysia (USM), and University Malaysia of Computer Science and Engineering (UniMY).

Empower Malaysia will be centered around two key objectives:

1. Upskill 30,000 Malaysian talent in AI and AI-Driven Supply Chain Automation.
2. Boost the resilience of key value chains within the Malaysian economy through AI-driven supply chain automation. This covers both national infrastructure value chains such as energy and utilities and major manufacturing sectors in Malaysia including automotive, Electrical & Electronics (E&E), palm oil, medical devices and medical supplies.

“Empower Malaysia is a definitive step forward for Malaysian manufacturers, introducing a comprehensive platform that spearheads supply chain transformation without neglecting the need for an accompanying wave of aggressive talent development,” said Jaffri Ibrahim, CEO of CREST. “In line with our aspirations under Malaysia’s Digital Economy Blueprint and AIRmap, we hope to further propel collaboration between the participating technology providers and academic institutes to gradually localize this technology and reach a level where our manufacturing industries and enterprises are transformed towards success in both the regional and global economy through technologies predominantly developed by Malaysian talent.”

Aimed at enabling Malaysia to leapfrog regional competition, Empower Malaysia will revamp the country’s ability to attract previously untapped foreign direct investments in the manufacturing sector.

“Malaysia is well-positioned to become one of the major manufacturing hubs globally. In a post-pandemic world where global value chains are being redefined to optimize multinational, and regional manufacturers’ ability to cope with skyrocketing logistics costs and supply chain disruptions, we’re proud to partner with the Government of Malaysia and key stakeholders across both industry and academia to position the country as the regional hub for autonomous supply chains and Lights-Out manufacturing,” said Amir Razelan, co-founder and COO, Seeloz.

“Through upskilling Malaysian supply chain operators in Supply Chain Automation and aligning major academic institutions to collaborate with Seeloz to further advance its Autonomous Requirements Planning (ARP) technology, Empower Malaysia will be the starting point for us to elevate Malaysia to becoming a global leader in end-to-end supply chain resilience,” Amir adds.

One of the key objectives under Empower Malaysia is the formation of a comprehensive ecosystem that will operationalize the Memorandum of Cooperation on semiconductor supply chain resilience that was signed between Malaysia and the US in May 2022.

“The manufacturing sector is one of the key contributors to Malaysia’s GDP and it’s important to identify key technological advancements as well as upskill talents that will help build resilience within the sector. We welcome Empower Malaysia as it aligns with our existing collaboration with Seeloz to support Malaysia’s digital ambitions,” said Lim Bee Wah, General Manager, Small, Medium & Corporate Group, Microsoft Malaysia.

“Malaysia is an ideal location for industry players looking to newly introduce or ramp up their capacity in this part of the world. Therefore, Empower Malaysia showcases an important collaboration model spearheaded by the private sector. In line with the rapid evolution of the global economy, the next frontier for industry players is to expand the integration of equipment, systems and networks within their business locations, especially their manufacturing plants to further connect with suppliers, customers and broader business communities,” said Arham Abdul Rahman, MIDA CEO.

Source: Digital News Asia

Academia-Govt-Industry launch Empower Malaysia to power supply chain automation with AI

Malaysian Investment Development Authority (MIDA) has approved Smart Automation Grants (SAG) totalling RM138.5 million to 238 companies up to June 30, 2022, following the SAG’s launch in December 2020.

Chief Executive Officer Datuk Arham Abdul Rahman said the recipients include small and medium enterprises (SMEs) from labour-intensive industries such as plastics, wood, furniture and textile, while the rest were from services-related industries.

“New companies should leverage the growing opportunities in the country and establish their presence in Malaysia.

“As Malaysia’s principal investment promotion agency, MIDA will continue to work closely with the companies to provide a more conducive business environment for business to grow,” he said in his welcoming remarks at the MIDA’s Domestic Investment Seminar Series I (Central Region) on Tuesday (July 26).

This year, MIDA continues its initiatives through domestic investment virtual seminars, engagement with national associations and chambers of commerce, industry linkage/supply chain programmes, and domestic coordination platform commitments, Arham said.

He added that MIDA will coordinate business-matching sessions between anchor companies and potential local suppliers or providers within specific industries, from networking arrangements for companies and potential funders and technology providers. 

“MIDA has also launched a dedicated SME Investment Desk in all its state offices to facilitate and coordinate its support services for Malaysian businesses.

“Our digital portal is constantly updated to help decision-makers and potential investors obtain guidance and advice regarding business setups and expansion plans in Malaysia,” he added.

Meanwhile, the National Chamber of Commerce and Industry Malaysia (NCCIM) and Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) President Tan Sri Low Kian Chuan said domestic direct investment (DDI) is an important driver of private investment to complement foreign direct investment.

He said that with SMEs making up 98.5% of total establishments in Malaysia, this has reaffirmed their role as the backbone of the Malaysian economy and industrial development.

“Reviving domestic investment is crucial in raising the economy’s productive capacity, accelerating technological progress, creating employment opportunities and expanding exports with the implementation of the Regional Comprehensive Economic Partnership (RCEP),” he said.

Low said the government has a major defining role in strengthening the conducive environment to facilitate business investment and doing business in Malaysia.

According to him, Malaysian businesses and industries are here to stay, given the more familiar local business conditions, while diversifying their investments outside Malaysia.

“While a favourable tax regime and investment incentives help boost DDI, the effect is stronger if augmented with a good investment climate and better investment facilitation, as well as predictable regulatory environment, backed by stable economic and political conditions,” he added.

Source: Bernama

Smart automation grants worth RM138.5 mil approved by MIDA as at June 30

Samsung SDI Energy Malaysia Sdn Bhd’s (Samsung SDIEM) RM7 billion investment underscores the confidence multinational companies have in Malaysia, the Malaysian Investment Development Authority (MIDA) said.

Its chief executive officer Datuk Arham Abdul Rahman said in a statement that MIDA is constantly seeking opportunities to collaborate and facilitate the growth plans of companies bringing advanced technology here to further elevate the electric vehicle (EV) industry and its ecosystem.

The cumulative RM7 billion investment, RM1 billion in phase one and RM6 billlion in phase 2, is its first production location in Southeast Asia and the first EV battery cell facility in Seremban, Negeri Sembilan.

Negeri Sembilan Chief Minister Datuk Seri Aminuddin Harun said the state government has always encouraged the entry of high-tech and high-impact investments such as Samsung SDIEM to drive economic growth, as outlined in the Negeri Sembilan Integrated Concept Master Plan 2021-2045.

The state government also uses investor-friendly policies to attract new investments / expansion via  INVEST NS, he said.

The state’s total investments rose to RM5.76 billion in 2021 from RM1.41 billion in 2017, he said, adding that Negeri Sembilan is the destination of choice for investors.

Source: Bernama

Samsung SDIEM investment shows MNCs’ confidence in Malaysia — MIDA

Source: The Edge Markets

Cultivating a more sustainable future through green technology

The Malaysian Investment Development Authority (MIDA) has been working with economic representatives such as chambers of commerce from different nations and valuable partners like Italia ASEAN to understand the needs of global counterparts and facilitate their business.

MIDA deputy chief executive officer (investment promotion and facilitation) Sivasuriyamoorthy Sundara Raja said ASEAN has been placing great priority on the region’s digitalisation transformation agendas such as the launching of the Bandar Seri Begawan Roadmap and the Consolidated Strategy on the 4IR for ASEAN to provide necessary policy direction for the region’s transformation. 

“Much support in terms of capacity building and technology transfer has also been garnered from advanced extra-ASEAN partners to help the region embrace and benefit from the 4IR (Fourth Industrial Revolution),” he said in a statement released in conjunction with the ‘High-Level Dialogue on ASEAN Italy Economic Relations’ today.

He said Italy is at the forefront of 4IR and digitalisation in many ways. 

“As one of the countries with the most high-tech companies, it reflects Italy’s capability in adopting advanced technology and digitalisation in their manufacturing and businesses.

“In this regard, technology transfers by Italian firms by setting up firms in ASEAN that offers vast markets and growth opportunities to the Italian firms is a mutually beneficial equation,” he said.

He said the one-day dialogue gave MIDA a wider opportunity to share a two-way conversation with the multiple industry players and understand their expectations from investment perspectives.

Organised by The European House in collaboration with MIDA and Italian Trade Agency, the dialogue is the reference event in the ASEAN region for strengthening economic and strategic ties between ASEAN member countries and Italy.

Source: Bernama

MIDA works closely with economic representative to understand global counterparts needs

Malaysia is on the right trajectory to secure more high-quality and capital-intensive projects, with the electrical and electronics (E&E) segment to continue being a key growth driver for the economy.

Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Arham Abdul Rahman said Malaysia is the sixth largest exporter of semiconductors and integrated circuits (ICs) in the world, accounting for 6.3% of the world’s total exports, and this will continue to support the E&E industry as it represents 61.7% of export products.

“Based on current negotiations with potential investors, many of which are multinational companies (MNCs), we are optimistic that the investment figure for 2022 will also be big, albeit not at last year’s record level and that the E&E segment will continue to be the largest contributor of investment approved this year.

“The global shortage of semiconductor is expected to last until the end of December 2023 and consumer demand continues to be high. Therefore companies are looking to invest to ramp up their production to meet the demand,” he told Bernama on the sidelines of the recently concluded SEMICON Southeast Asia 2022, which was held from June 21 to 23.

Arham said foreign investors’ confidence continues to grow because Malaysia has one of the most comprehensive ecosystems in the region in the E&E, machinery and equipment, aerospace, automotive, and medical device industries, while the National Investment Aspirations will certainly pave the way towards attracting more quality investments.

He said MIDA foresees more foreign investors coming to Malaysia, following footsteps of the world’s largest and most cutting-edge electronics companies, namely Intel, ST Microelectronics, Infineon, Micron, Texas Instruments, TF-AMD, and Osram.

The approved investments for the E&E industry were valued at RM18.6 billion in the first quarter of this year and a total of 13,700 job opportunities are expected to be created from these projects, while in the long run, the E&E industry is targeted to contribute RM120 billion to gross domestic product and generate RM495 billion in export earnings by 2025.

Meanwhile, Arham highlighted that there are two particular challenges faced by the E&E industry, namely shortage of skilled talent and land scarcity.

To address the talent issue, he said MIDA is working closely with local universities and training centres to meet the demand of both local and MNC players to establish more industrial training and learning programmes.

“Land scarcity is another challenge that we are working to overcome. Penang Chief Minister Chow Kon Yeow has announced that the state government is currently identifying new areas to accommodate the needs of the industry and support the E&E ecosystem,” he said.

On overall foreign direct investment, Arham said Malaysia attracted a total of RM42.8 billion approved investments in the manufacturing, service, and primary sectors involving 910 projects from January to March 2022.

Moving forward, MIDA had identified 446 high-profile investment prospects including Fortune 500 companies in the manufacturing and service sectors with a combined potential investment value of RM150.4 billion as of June 1, 2022.

“Malaysia’s stellar performance despite the challenging years is a strong testament to Malaysia remaining as an attractive investment destination due to its cohesive business environment, friendly investor policies, and effective pandemic measures.

“MIDA will continue to introduce innovative measures to ease the challenges of operating businesses in the country while encouraging and facilitating the adoption and adaptation of technology, innovation, and research by companies,” he added.

Source: Bernama

E&E segment will continue to be key growth driver for Malaysia — MIDA

The Malaysian Investment Development Authority (MIDA) has collaborated with Malaysia Productivity Corporation (MPC) and Intel Malaysia for the Artificial Intelligence (AI) for Small and Medium Enterprises (SMEs) (AI4S) Programme.

The collaboration has launched the Productivity Through Digitalisation – AI4S Programme Proof-of-Concept Projects Compilation Booklet which features 31 successfully completed pilot projects.

MIDA chief executive officer Datuk Arham Abdul Rahman said companies that adopt and adapt Industry 4.0-related technologies such as AI can optimise productivity and grow in the face of rapid changes in technology cycles.

“Hence, MIDA is committed to building a resilient and sustainable Malaysian electrical and electronics (E&E) supply chain through the development and enhancement of our very own SMEs through this AI4S Programme.

“This perfectly aligns with our National Investment Aspirations in encouraging the innovative transformation of our industries through proactive and guided measures,” he said in a statement today.

Arham said the AI4S Booklet is a testament to the relevance of AI applications for business processes, including SME companies.

“Notably, the AI4S Programme saw 63 per cent of the participants utilise the AI kit for detection for quality assurance (QA); approximately 13 per cent integrated AI into their system for detection for traffic; another 10 per cent of the participants utilised the AI kit for on-site monitoring; another 10 per cent used the AI kit for detection for counting, whereas the remaining four per cent used the kit for entry control and recognition,” he added.

Meanwhile, MPC director Dr Mohamad Norjayadi Tamam said he was confident the Proof-of-Concept Projects contained in the booklet can serve as lessons learned in charting the transformation of their own Industry 4.0 journey.

“As the operation partner for this AI4S programme, MPC is in charge of the training and implementation delivery programme management for all the five training batches of the 100 companies,” he said.

Intel Malaysia managing director AK Chong said through the collaboration, Intel is pleased to be able to equip SMEs with skills in AI and help them to create solutions for their businesses.

“We are confident that this experience will catalyse innovation and growth for many of the participants, and we look forward to seeing what they achieve next,” she said.

Last year, a total of 100 SME companies were selected to participate in the AI4S Programme, whereby each company was awarded with an AI kit.

These SMEs underwent comprehensive technology enabling process and training to empower them to implement personalised pilot projects for their businesses to jump-start their AI technology adoption journey.

Upon the completion of AI4S Programme that began in the first quarter of 2021, 31 successfully completed pilot projects have been selected to be featured in the AI4S Booklet.

The launch of the booklet was officiated by Ministry of International Trade and Industry (MITI) senior director Datuk Hanafi Sakri.

Source: Bernama

MIDA collaborates with MPC, Intel Malaysia in AI for SMEs Programme

The Malaysian Investment Development Authority (MIDA) will stay committed to build a resilient and sustainable electronics supply chain in Malaysia and among members of the Association of Southeast Asian Nations (Asean).

In a statement, chief executive officer Datuk Arham Abdul Rahman said MIDA will pursue high-quality and technology-driven investments to boost socio-economic development and trade growth.

“Apart from local industry players, we are expanding the benefits of our manufacturing ecosystem to global businesses and brands,” he said at the launch of SEMICON Southeast Asia 2022.Credit : MIDA

Arham said digitalisation and expanding consumer demand for electronics will drive continuous change in the years ahead because the opportunities are boundless.

“As mapped out in the National Investment Aspirations (NIA) initiative, there is more space for us to grow.

“Developing new clusters and innovation in the existing areas will create highly skilled jobs, expand regional and global supply chains and increase our effort to bring about socio-economic development,” he said

Arham noted that Malaysia is home to over 5,000 investors from more than 40 countries.

“In the first quarter of 2022, Malaysia continued to attract a total of RM42.8 billion approved investments, of which the electrical and electronics (E&E) industry contributed RM19 billion with 13,700 new job opportunities,” he added.

Meanwhile, Penang chief minister Chow Kon Yeow said the state’s significance in the E&E industry is well-attested as the state accounted for over five per cent of global semiconductor sales, making up close to 60 per cent of Malaysia’s E&E exports.

“With an all-time high export value of RM364 billion, Penang topped the nation’s list in 2021. 

“Penang is also known as a regional hub for front-to-back-end equipment manufacturing, serving the needs of E&E industry along the value chain,” he said.

SEMICON Southeast Asia 2022, the region’s premier gathering of the semiconductor and micro-electronics industry from June 21 to 23 is held at the Setia SPICE Convention Centre, Penang.

Themed “Forward as One – Building A Resilient and Sustainable Electronics Supply Chain in Southeast Asia”, the event commemorates Malaysia’s 50th year of manufacturing excellence and celebrates Penang’s reputation as the Silicon Valley of the East, built on decades of manufacturing excellence and industrial experience.

Source: Bernama

MIDA commits to building resilient and sustainable electronics supply chain in ASEAN – CEO

LEARNING from their experiences at the height of the Covid-19 pandemic, companies are increasingly integrating technology into their operations as an imperative, as they embark on their respective digital transformation journeys to regain lost ground and reinvigorate the growth of the economy.

It comes as no surprise that the global industrial automation market was valued at US$191.89bil in 2021, while it is projected to grow at a compounded annual growth rate of 9.8% to reach US$395.09bil by 2029.

In 2020, the World Economic Forum published a report revealing that although the rise of the machines and automation would eliminate 85 million jobs by 2025, it also expects 97 million new jobs to be created.

This means that with a focus on job creation, efforts towards rationalising automation and digitalisation is a critical progressive move forward.

On one hand, this helps businesses effectively use their resources and on the other, it also equips their manpower with the capability to improve productivity, technology deployment and speed.

In turn, automation helps to not only achieve cost-competitiveness, but also ensure that the current workforce remains relevant in targeted highly skilled and higher income job segments, in line with Malaysia’s move towards achieving a high-income economy.

In Malaysia, the state of industrial revolution in the manufacturing sector hovers between Industry 2.0 (IR2.0) and IR3.0 – made up predominantly of small and medium enterprises (SMEs).

Given that these SMEs form more than 90% of all Malaysian business establishments and contribute approximately 38% to the Malaysian gross domestic product (in 2020) and 48% to the country’s total employment, it is a crisis for the nation if they remain unaware of the importance of embracing automation to improve their competitiveness, moving forward.

Companies, especially SMEs, often cite lack of understanding about automation technologies and the perceived high cost of equipment as barriers to the adoption of automation.

Among the biggest misconceptions are the high cost of adopting such technology and that they have to automate the entire production line.

In order to address these issues, companies need to first identify the specific processes in their production lines that can be improved through automation.

Mida’s API is focused on enabling Malaysian businesses adapt to the new normal.

Alternatively, they can start with low hanging fruits for quick wins, within a short period of time, such as adopting simple devices like sensors to enable data collection and analytics.

Gradually, they can then enhance to more sophisticated machinery and equipment that is aligned with artificial intelligence and other cutting edge technology.

In seeking to encourage smart manufacturing, the government has introduced the Industry4WRD policy, among other initiatives.

This framework includes three core elements and eight core thrusts, which are designed to create a pathway for enhanced productivity, job creation and to grow a high-skilled talent pool in the manufacturing sector.

Getting help from experts

In today’s day and age, companies that want to stay ahead of the game must ensure that their systems are able to work synchronously, as integrated systems are key to boost the speed of information flow throughout the process, thereby reducing operational costs.

Conversely, systems that are not integrated will result in significant increases in cost and resource consumption.

While there are always trade-offs when considering the level of automation for a facility, the critical aspect to keep in mind is to ensure that experts have a seat at the table early on in the process and to carefully consider all available options.

Datuk Arham Abdul Rahman is the chief executive officer of Mida.

Thus, materialising the success of the automation journey means that companies should identify and work with factory automation providers or system integrators (SI).

These experts – who have inherent exposure to different industries and a wide range of projects that enables them to explore innovative solutions to resolve a client’s challenges – play a significant role in integrating systems, equipment and machinery to create a manufacturing solution, enabling the business to improve its productivity and quality of operations at the same time.

Locally, there are approximately 50 companies including Malaysian-owned companies that have grown and established themselves as internationally recognised providers of factory automation systems, including names such as Pentamaster, ACM, Greatech Integration, Genetec, Cheng Hua, TXMR, Vepro and XTS Technologies.

As compared to 2010, where there were about 25 local factory automation companies with RM234mil in total market value, there are more than 50 factory automation companies that provide different kinds of solutions required by their clients today – the top 10 have an accumulated total market value of more than RM25bil.

While different companies require different solutions when it comes to automation, there are varying challenges to successful adoption, even within the same industry.

It is critical to find a factory automation provider or SIs who can offer the right support to enable a smoother journey.

This is where the Malaysian Investment Development Authority (Mida) comes in, as it can assist to connect companies with the right factory automation providers or SIs.

Govt support and facilitation

In support of automation within the manufacturing sector, Mida has launched the Automation Project Initiatives (API), which is focused on enabling Malaysian businesses to adapt to the new normal in the post-pandemic era.

A physical platform that serves to connect labour intensive and low productivity companies with potential factory automation or SI players, API is an ongoing project.

Its objectives are to assist companies in automating their processes, particularly those heavily dependent on unskilled or foreign labour; as well as to disseminate the latest information on government facilitation and programmes for automation or Industry4WRD projects.

Under the initiative, Mida has organised a series of API programmes for industry players with various business associations, since it commenced on Sept 15, 2020. Several webinars on government facilitation for companies undertaking automation and digitalisation initiatives with reputable Malaysian factory automation providers and SIs were also held during the same period.

Through these initiatives, Mida aims to promote the importance of automation among local companies to transform their facilities towards becoming more competitive and cost-effective, while ensuring the success of their automation journey in Malaysia.

Apart from the Industry4WRD policy, the government is also committed to assisting businesses via its Industry4WRD Readiness Assessment and the subsequent Intervention Fund, by:

> Assessing their capabilities and readiness to adopt IR4.0 technologies and processes

> Understanding their present capabilities and gaps

> Preparing feasible strategies and plans to move towards effective IR4.0 adoption

The Industry4WRD Intervention Fund, for one, offers a matching grant of 70:30 on a reimbursable basis for up to RM500,000 for eligible expenditure.

In addition, as of May 31, 2022, Mida approved 444 applications for the Automation Capital Allowance (Automation CA), which provides a 200% tax deduction on the first RM4mil expenses incurred within eight years of assessment (2015 to 2023) for Category 1 (labour intensive industries) and a 200% tax deduction on the first RM2mil expenses incurred within eight years of assessment (2015 to 2023) for Category 2 (other industries).

Companies that have leveraged on these facilities have invested more than RM685.6mil.

As a result, the companies reported cost savings due to the reduction of over 2,448 unskilled foreign workers and contributed an average of 201.7% improvement in production volume.

For new and existing companies planning to relocate or incur new investment, the government has also provided a special tax facility.

Under Penjana, a 0% special tax rate for 10 years for new investments is offered to new companies in the manufacturing sector with capital investment between RM300mil to RM500mil; a 0% special tax rate for 15 years for new investments is also offered to company in the manufacturing sector with capital investment above RM500mil.

Meanwhile, existing companies in Malaysia that are relocating their overseas facilities into the country with a capital investment of above RM300mil may apply for 0% Investment Tax Allowance for five years, which is offset against 100% of their statutory income for each assessment year.

Moreover, Mida has also established a Project Acceleration and Coordination Unit, better known as PACU, to facilitate all necessary approvals, in addition to the 12 Mida state offices to assist and facilitate investors who are not based in Kuala Lumpur.

By doing so, Mida thus acknowledges the importance of factory automation providers or SIs in supporting the country’s IR4.0 vision, as well as supporting these factory automation providers or SI players – particularly local companies – to bolster their capabilities and capacity in the manufacturing and services supply chain.

Undeniably, the path to survival and competitiveness lies in manufacturers incorporating digital manufacturing into their business roadmaps, in order to serve as a sustainable long-term growth strategy and enable them to compete at the global level.

Companies interested in connecting with factory automation providers or SIs can visit www.mida.gov.my or email [email protected] today.

Source: The Star

Gearing up for IR4.0

Malaysia has attracted a total of RM42.8 billion (US$10.2 billion) approved investments in the manufacturing, services and primary sectors, involving 910 projects between January and March 2022.

In a statement today, Malaysian Investment Development Authority (MIDA) said foreign direct investments (FDIs) remained the major contributor, at 65 per cent or RM27.8 billion (US$6.6 billion), while investments from domestic sources contributed 35 per cent amounting to RM15 billion (US$3.6 billion).

“The approved investments for this period will create 24,906 new jobs in the country,” the statement said.

The manufacturing sector continued to assume an important role in driving the country’s economic recovery during the period, accounting for more than half (70.1 per cent) of total approved investments of RM30 billion (US$7.1 billion), followed by the services sector at RM12.7 billion (US$3 billion, 29.7 per cent) and the primary sector at RM100 million (US$40.4 million, 0.2 per cent).

“Of the total FDIs approved, Germany dominated with investments totaling RM8.9 billion (US$2.1 billion, 32 per cent), followed by Brunei at RM 5.1 billion (US$1.2 billion, 18.3 per cent), the US RM3.9 billion (US$900 million, 14 per cent), Hong Kong RM3.3 billion (US$ 800 million, 11.9 per cent), and Japan RM3.2 billion (US$800 million, 11.5 per cent),” it said.

For projects approved by state, it said five major states, namely Kedah, Penang, Selangor, Sabah and Johor, contributed RM31.8 billion (US$7.6 billion, 74.3 per cent) of the total investments approved from January to March 2022.

Senior Minister of International Trade and Industry (MITI) Datuk Seri Mohamed Azmin Ali said Malaysia remains an attractive investment destination for global investors with the manufacturing sector maintaining its position as a key pillar of the economy for 2022 generating significant multiplier effects on the nation’s growth.

“Today, we are proud to have over 5,000 companies from more than 40 countries that have made Malaysia their location for manufacturing and related services operations,” he said.

He said that Malaysia will continue to focus on high growth and high value-added sectors which offer Malaysians exciting job opportunities.

“Aligned to the 12th Malaysia Plan, Malaysia has been securing new investments that position well with the country’s National Investment Aspirations (NIA) and environmental, social and governance (ESG) principles.

“This will stand us in good stead to capture more economic opportunities. We look forward to seeing more significant growth for the second quarter of 2022,” he added.

Source: Bernama

Malaysia records RM42.8 bln approved investments between Jan-March 2022 – MIDA

The Malaysian Investment Development Authority (MIDA) will continue to provide facilitation services to industry in realising sustainable and inclusive investments that will create new industrial chains.

MIDA chief executive officer Datuk Arham Abdul Rahman said this following the groundbreaking ceremony for the Phase 1B plant at Green Technology Park (GTP) Pekan, Pahang by Nextgreen Global Bhd (NGGB).

The groundbreaking involved the construction of three buildings to manufacture tissues, animal feed and fertilisers for a new investment worth RM162 million.

“In Malaysia, the pulp and paper industry is driving towards the use of empty fruit bunches from oil palm because it provides a lot of raw materials for the production of pulp and paper.

“In the past five years (2017 to 2021), MIDA has approved 48 biomass-related projects with a total investment of RM1.24 billion,” he said in a statement today.

Arham said such services would create positive spillover as well as high value jobs in line with the National Investment Aspirations (NIA).

“MIDA hopes that more industry players will participate in producing higher value bio-based products, apart from exporting only raw materials.

“This is seen as one of the solutions in addressing the issue of climate change and also promote rural development and socio-economic activities,” he said.

The ceremony was officiated by Pahang Menteri Besar Datuk Seri Wan Rosdy Wan Ismail at the Green Technology Park (GTP) Pekan with a total investment of RM80 million for a tissue factory, RM50 million (animal feed factory) and RM32 million (fertiliser factory).

Wan Rosdy said that in terms of production, the tissue plant is expected to produce 10,000 tonnes, while the other two factories will produce 30,000 tonnes of animal feed and 30,000 tonnes of organic fertiliser.

“The state government hopes that with the investment from NGGB, it can attract more investors towards projects based on environment, social and governance and in line with the Sustainable Development Goals (SDG) for the sustainable development of Pahang.

“Through this investment, the state government hopes to create more employment opportunities and further improve the individual’s income and the state economy,” he said.

Source: Bernama

Sustainable investments will create new industrial chains – MIDA