English
contrastBtngrayscaleBtn oku-icon

|

plusBtn crossBtn minusBtn

|

This site
is mobile
responsive

sticky-logo

MIDA keeps close tabs on China, Taiwan PV makers.

MIDA keeps close tabs on China, Taiwan PV makers.

MIDA Deputy Chief Executive Officer Datuk Phang Ah Tong told StarBiz that
this was because MIDA did not want Malaysia to be used as a transhipment point
for China and Taiwan-made PV cells and panels to enter the United States, as
the latter had imposed anti-dumping duties on PV products originating from
China and Taiwan.

The US
International Trade Commission had recently imposed a minimum 70% tariff rate
on China PV modules, and an 11.45% to 27.55% rate for Taiwan PV manufacturers.

The fear
is that China and Taiwan PV products will be exported from Malaysia using
generalised system of preferences (GSP) issued for companies in Malaysia and
made-in-Malaysia certificate of origin (COO) documents.

Phang said
that so far there were no significant PV investments from China and Taiwan in
Malaysia.

“However,
we are still pursuing investments in alternative renewable energy such as
bio-mass, bio-gas and small hydro plant projects.

“We want
renewable energy to comprise at least 11% of the energy consumed in Malaysia by
2020,” he added.

Phang said
MIDA was currently negotiating for foreign direct investments in advanced
electronic and aerospace manufacturing.

“Penang
should focus on advanced electronic and medical device manufacturing
activities, taking advantage of the weakened ringgit, which makes Malaysia-made
products attractive to the United States, whose currency is strong,” he said.

Phang
added that there would be a slowdown in oil and gas investments this year,
especially in upstream activities, in view of the declining oil price.

“Companies
involved in downstream production like plastic resin are expected to do well
this year,” he said.

According
to Exim Bank Global Advisory and Research’s latest report on the solar panel
industry in Malaysia, the country will gain from the recent imposition of
anti-dumping duties by the United States on imported China and Taiwan solar
products through greater market share in America.

“Malaysia
will also stand to benefit from more investments from China and Taiwan as the
US-China trade dispute will motivate Chinese and Taiwanese producers to move
production outside China to avoid the anti-dumping measures,” the report said.

It said as
a result of the foreign investments, Malaysia was the third largest solar
module producer in the world after China and Japan, and the fourth largest
producer of solar cells in 2013.

The major
corporations in Malaysia involved in PV manufacturing are First Solar and
Panasonic Corp in Kulim Hi-Tech Park, Hanwa Q Cells in Cyberjaya, AUO Sunpower
in Malacca and IRM Group Bhd in Ipoh.

Malaysia
has been known as a transhipment point for China-made products using the GSP
and COO documents issued for companies in Malaysia to enter Europe.

In December 2010, carbon steel
fastener manufacturers in Malaysia exporting to European Union had to declare
and were investigated by the European Commission to clear themselves from any
involvement in the transhipment of China-made carbon steel fasteners to the EU
to avoid anti-dumping duty using the GSP and made-in-Malaysia COO documents.

04 February 2015
TwitterLinkedInFacebookWhatsApp
wpChatIcon
X