THE Sin Hock Soon Group (SHSG) has marked yet another milestone in its 30 years in the logistics industry with the addition of Volvo’s latest low-emission truck into its fleet.

SHSG general manager Shawn Yew said the investment was not just about expanding the company’s capabilities but also about reinforcing its commitment to a more sustainable and efficient future.

He said Volvo’s new Euro 5 models were engineered for advanced performance and reliability while meeting stringent emission standards set by the European Union.

The trucks are equipped with AdBlue and Selective Catalytic Reduction technology to significantly reduce harmful emissions, making them both powerful and environmentally friendly.

Shawn said the partnership with Volvo (M) Sdn Bhd and Volvo UK underscored SHSG’s dedication to responsible business practices, safety and sustainability.

“By incorporating these trucks into our fleet, we are taking a crucial step towards reducing our carbon footprint, minimising our operation’s environmental impact and helping our customers navigate upcoming regulatory changes,” he said.

Shawn said SHSG had plans to further expand its fleet with over 100 additional eco-friendly low-emission vehicles.

Volvo Malaysia managing director Anthony O’Connell praised SHSG for its vision and foresight towards the country’s sustainable journey to achieve net-zero greenhouse gas emissions by 2050.

“At Volvo, our commitment to the Euro 5 standards is not just about meeting regulatory requirements, it is about making a meaningful impact that is critical to the health of our communities and the preservation of the environment.

“The journey towards sustainability is a collective effort that requires collaboration across the entire industry,” he said.

The handing over of the trucks at Volvo Malaysia, located in Penang’s Prai Free Industrial Zone, was also attended by SHSG managing director Tony Yew.

Founded in 1994, the family- helmed SHSG – with its dedication to innovative practices, customer-focused solutions and sustainable operations – has positioned itself as a major logistics provider across Malaysia, Singapore and Thailand.

Source: The Star

Driving sustainability in the logistics industry

Solarvest Holdings Bhd is still a “buy” despite marginal contribution from segments other than its engineering, procurement, construction and commissioning (EPCC) business and electricity generation from its plants under the government’s fourth phase of the Large Scale Solar initiative, analysts say.

Hong Leong Investment Bank (HLIB) Research said in a report contributions from those segments were expected to be lumpy in nature.

The research house said Solarvest’s runway for order book replenishment currently looks “robust” with a remaining Rm714mil of EPCC work under the Corporate Green Power Programme (CGPP) to be converted – leading to a new high in its unbilled EPCC order book of more than Rm1bil.

“Additionally, we see the company as a prime beneficiary of the upcoming Corporate Renewable Energy Supply Scheme (CRESS) programme due to its quality CGPP off-takers and strong business partners.”

The research house said on the whole, Solarvest’s financial year ending March 31, 2025 (FY25) looked to be a “back-loaded year” given the ramp-up period for CGPP projects and the positive seasonality effect in the fourth quarter.

“The company should also benefit from lower procurement costs due the ringgit strengthening but we anticipate effects filtering through slightly later,” it added.

The research house also noted that the CRESS programme had been formalised with the recent release of guidelines.

“CRESS allows renewable-energy developers to negotiate pricing with consumers with a market-based approach on a rolling basis.

“Conceptually, this can cater to strong demand for renewable energy from Malaysia’s huge data centre pipeline.”

HLIB Research said it was not making any change to its forecasts for the solar-energy group and was maintaining a “buy” call on the stock, with a target price of RM2.

The target price is driven by a price-earnings multiple of 25 times the company’s EPCC business and a discounted cash flow of its recurring income assets.

“We like the stock for its strong position within the growing domestic solar industry, regionalised operations and strong business partners,” the research house said, adding that the risks for the group included project execution, delays from political hiccups, raw-material prices and labour shortages.

Source: The Star

Renewable energy continues to strengthen Solarvest

Malaysia is now more selective in choosing foreign direct investments, with a focus on projects that would greatly benefit the country, especially in the field of artificial intelligence (AI) and data technology, said Prime Minister Datuk Seri Anwar Ibrahim.

He said the opening of a data centre that used to depend on cheap energy and water to move and cool the operating systems, is now no longer sufficient.

“Now, if you want to (establish) a data centre, you must have AI,” he said, referring to projects like Nvidia in Johor, “which is an example of how technology needs to be improved to remain relevant,” he said at the Ilmuan Malaysia Madani Forum here on Wednesday organised by Tenaga Nasional Bhd.

Anwar said universities in this country should also be empowered to produce skilled workforce in the field of AI and engineering in order to meet the needs of high-tech investors.

“So, if the investment is big, we are now more selective in choosing investments that can benefit the country more,” he explained.

Meanwhile, touching on the national budget, he outlined education and health as the main priorities, with the highest allocation given to the education sector, followed by health. 

Source: Bernama

Malaysia to prioritise foreign investments in AI and data tech, says PM Anwar

The Ministry of Trade, Investment and Industry (Miti) will continue to nurture talent, deepen trade relationships and ensure Malaysia remains a leading manufacturing and services hub, contributing to a prosperous and inclusive Asean.

In giving the commitment, its minister Tengku Datuk Seri Zafrul Abdul Aziz said the path towards that would be supported by strong policies, world class infrastructure and a resilient economy.

“Through the New Industrial Masterplan 2030 (NIMP 2030), for example, we hope to create 3,000 smart factories by 2030, by integrating advanced technology, utilising data for strategic insights and delivering personalised services,” he said in his keynote address at a dinner organised by InvestKL Corporation on Thursday.

Zafrul said balancing and integrating both the manufacturing industry and modern services will elevate the manufacturing industry.

In terms of modern services, he highlighted the three sectors mentioned in NIMP 2030, namely digital and ICT, global services and professional services, and manufacturing-related Services (MRS).

“On digital and ICT services, for example, we have been enabling activities such as digital infrastructure, which includes data centres and cloud computing,” he added. “We are thrilled that companies such as Google and Amazon Web Services (AWS) have chosen Malaysia to establish their cloud network.”

Malaysia’s total approved investments in the first half of 2024 stood at RM160 billion, an 18% year-on-year increase, of which the services sector, particularly in technology and digital services, made up RM97.2 billion, or 60.7% of total approved investments.

“The establishment of the AWS world class cloud infrastructure in Malaysia, for example, will digitally enable developers, startups and enterprises, as well as government, educators and even non-governmental organisations (NGOs) to have greater choice for running their applications and serving end-users from AWS data centres located in Malaysia,” he explained.

The key to the success of the country’s modern services sector is talent, so Miti is also taking steps to ensure that its people have the skills to match the demands of a rapidly evolving services sector. “We are fully committed to developing the skilled workforce necessary to support Malaysia’s continued rise as a global player in high-tech industries,” he said.

Through “sub-policies” such as the National Industry Framework for ESG (i-ESG), National Semiconductor Strategy (NSS), the Green Investment Strategy (GIS) and the Circular Economy Policy Framework for Manufacturing, the path towards reindustrialisation is geared towards not just growth, but also sustainable and inclusive growth, he said.

Plans for an inclusive Asean

As chair of Asean next year, Zafrul said the government is currently putting together a solid to-do list to build a more prosperous, sustainable and inclusive Asean.

It includes working towards the substantial conclusion of the Digital Economy Framework Agreement (DEFA), “which is most relevant in the context of our modern services discussion today,” he said. “I would also like to highlight that in a world where supply chain re-configuration has become a high stakes venture, many global companies and multinational companies also need a neutral, peace-loving partner. That partner is Asean.”

During the chairmanship of Asean next year, Putrajaya will not only ensure that the commitment to Asean Centrality is renewed, “but we will strive to defend Asean Neutrality; we have seen the dividends pay off handsomely for us in these challenging geopolitical times,” he noted.

The minister said he is highly optimistic about Asean’s growing role in the global supply chain, and consequently, its growing significance in the global order. “Asean’s proposition as the premier supply chain point and gateway to numerous key markets is still at its nascent stage. Malaysia, in particular, will always remain open to all our friends from within and outside the region.”

Source: Bernama

Malaysia digitally equipped to be regional services hub for global companies — Zafrul

The private sector must play a key role in developing Artificial Intelligence (AI) education in Malaysia, says Prime Minister Datuk Seri Anwar Ibrahim.

He said the private sector’s involvement in Technical and Vocational Education and Training (TVET) could also serve as a model for collaboration in AI education.

Anwar said partnerships between the government and major corporations, including banking institutions and conglomerates are crucial to ensure that AI programmes meet the nation’s future needs.

“Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi has strengthened TVET, but we cannot rely solely on outdated TVET syllabi.

“Private sector cooperation would further enhance its efficiency, especially in AI and technical training,” he said in his keynote address at the Invest Malaysia – Iskandar Puteri 2024 conference held at Sunway Hotel Big Box, here today.

Anwar stressed the importance of collaboration between entities such as Khazanah Nasional, Bursa Malaysia, and major corporations to produce a skilled workforce equipped to handle AI technologies.

“I believe AI technical training will be more effective with private sector involvement compared to traditional education programmes,” he said.

The conference, hosted by Bursa Malaysia and co-hosted by Maybank, CIMB Securities and HSBC Malaysia, focused on Iskandar Puteri as Malaysia’s southern economic gateway.

Themed ‘Where Policy Meets Progress’, it saw the participation of 500 local and foreign delegates.

The conference highlighted key developments, particularly on the Johor – Singapore Special Economic Zone (JSSEZ), and offered insights into Malaysia’s macroeconomic landscape, particularly Johor’s market prospects.

Also present were Johor Menteri Besar Datuk Onn Hafiz Ghazi, Bursa Malaysia chairman Tan Sri Abdul Wahid Omar, and Johor’s Economic Investment adviser Datuk Seri Hasni Mohammad.

Malaysia’s first AI faculty was set up at Universiti Teknologi Malaysia (UTM) with an initial allocation of RM20 million.

Anwar said establishing UTM’s AI Faculty in just four months was a key step towards talent development in line with growth and investment initiatives in Iskandar Puteri’s economic and financial zones.

“I am impressed by UTM’s ability to launch its AI Faculty in such a short time. During my visit to Abu Dhabi, I saw similar AI projects take one to two years to complete,” he said.

Anwar also called for continued efforts to attract international investments through closer collaboration with Asean countries, citing the JSSEZ as an example of effective cross-border partnerships.

“We are witnessing strong collaboration between Johor and Singapore through the JSSEZ, with industry players working together to ensure its success,” he said.

Meanwhile, Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said the Invest Malaysia-Iskandar conference covered a range of topics including data centre investments, Johor’s property market, and the JSSEZ’s potential impact on regional development.

The conference marked its fifth edition of the 2024 series, following conferences in Melbourne, China, Singapore, and Hong Kong.

Source: NST

PM: Private sector involvement key to AI education development

The state government takes pride in the performance of technology and innovation-driven investments entering Selangor, including the opening of Google’s digital and data centre in Elmina Business Park, Sungai Buloh.

Menteri Besar Dato’ Seri Amirudin Shari said this reflects the investors’ confidence in the state’s potential to strengthen the sector and support future technology industries.

“Google’s investment is expected to create 26,500 new job opportunities. The administration is confident that today’s programme will drive innovation growth among youth and create more high-tech job opportunities.

“Simultaneously, the administration also organises various programmes involving primary, secondary, and university students every year. These are carried out in collaboration with state-run universities, Universiti Selangor, and Universiti Islam Selangor,” he said.

Speaking at the Central Zone Malaysia Techlympics 2024’s closing ceremony today, Amirudin said that each year, RM1 million is allocated to run programmes and modules related to science, technology, engineering, and mathematics.

“We are confident that this initiative will not only address employment issues and the shortage of engineers but also help create a nation of inventors.

“By becoming creators, we become stronger because others will use what we create,” he said.

Source: Selangor Journal

Tech, innovation sectors draws investors, creates new job opportunities — MB

Malaysia’s ambition to become a modern services hub is pivotal to its transition towards a sustainable high-income economy, says Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

Speaking at the InvestKL Malaysia, Paving the Way to a Modern Malaysia dinner, he said the nation’s ongoing efforts to attract global investments had significantly transformed its investment landscape over the past two years.

“Despite global challenges, Malaysia has consistently outperformed its regional peers, particularly in terms of GDP growth, political stability, and ease of doing business. We also possess world-class digital and physical infrastructure, which provides a solid foundation for our emphasis on modern services,” he said.

Tengku Zafrul said that the modern services sector, encompassing digital, government, finance, healthcare, and education services, was essential for Malaysia’s progression to a sustainable high-income economy.

“In advanced economies, modern services elevate the manufacturing sector beyond labour-intensive activities. A well-implemented modern services sector will not only complement Malaysia’s manufacturing industry but also drive innovation and economic complexity, while catalysing national development,” he said, adding that the nation’s future as a modern, inclusive, and prosperous country hinged on attracting high-impact investments and strengthening trade relationships.

With strong policies, world-class infrastructure, and a resilient economy, Tengku Zafrul expressed confidence that Malaysia would continue to thrive on both regional and global stages.

Meanwhile, InvestKL chief executive officer Datuk Muhammad Azmi Zulkifli praised Malaysia’s remarkable transformation from an agriculture-based economy to one driven by manufacturing and services.

“Today, 60 per cent of our GDP is contributed by the services sector, reflecting global trends towards automation, advanced technologies, and artificial intelligence. This is the new frontier of modern services, embracing digitalisation, sustainability, and knowledge-based activities,” he said.

He said that Kuala Lumpur was at the forefront of the services industry, bolstered by digital solutions, innovation, and a dynamic talent pool.

“Malaysia’s prime location, robust infrastructure, and skilled workforce continue to position us as a top destination for foreign investments. MITI has been committed to enhancing the ease of doing business and introducing forward-looking policies that have begun to yield results,” he added.

Azmi also pointed to recent investment announcements from prominent tech companies, highlighting Malaysia’s strong value proposition and its ability to attract leading global firms.

“InvestKL has secured investments from over 140 multinational companies, contributing billions of ringgit to the economy and creating more than 30,000 high-skilled executive jobs in Greater Kuala Lumpur,” he said.

These investments, he said, had generated significant economic benefits nationwide, positioning modern services as a major contributor to Malaysia’s GDP.

Malaysia attracted RM160.0 billion of approved investments, which is an 18 per cent increase compared to RM135.6 billion approved investments in the same period last year.

The services sector emerged as the clear frontrunner, commanding a significant share of RM97.2 billion or 60.7 per cent of the total approved investments, an increase of 14.4 per cent from the same period last year.

Source: NST

Tengku Zafrul: Malaysia eyes modern services as key to high-income economy

GDEX Bhd’s recent foray into information technology (IT) is aimed at improving the efficiency of its logistics and last mile delivery operations, said managing director and group chief executive officer Teong Teck Lean.

Speaking to The Edge on Thursday, he said the company is expanding its offerings to include both logistics and technology solutions, which could slightly increase the group’s pricing power in the market.

“A lot of people think we no longer want to focus on courier services. No…in fact, express delivery remains our largest contributor. We see challenges in the courier industry, with too many foreign companies entering the domestic market and too much price pressure.

“We believe the best way to survive is to enhance our customers’ experience with our business solutions so that many brand owners will prefer to use our courier services. Once our last-mile operations recover, we’ll have more cash flow to potentially acquire other businesses,” Teong said.

He is targeting double-digit revenue growth from the IT segment, aiming for 12% in the upcoming financial years though he acknowledged that the growth may not be as significant as that seen in the express delivery segment.

In the first half ended June 30, 2024 (1HFY2024), the group’s IT segment accounted for 10.37% of total revenue, at RM196.3 million. Express delivery remains the largest contributor at 86.03%, while logistics accounted for 3.05%.

To recap, in June, GDEX’s shareholders approved the group’s plan to diversify into IT services and solutions. Back in 2022, the company acquired equity stakes in three IT companies: Web Bytes Sdn Bhd (38%), Sweetmag Solutions Sdn Bhd (51%) and Anon Security Sdn Bhd (60%).

When asked about the potential for further acquisitions in the IT segment, Teong said: “Definitely, the ecosystem can be much better. Beyond these business acquisitions, we also have partnerships, collaborating with other businesses to offer solutions. So, if any future acquisitions make sense for us, we will continue on that journey as well.”

Setting sights on year-end profitability

Teong further shared that the group aims to return to profitability by the end of this year after two consecutive annual losses.

“However, I know it is a bit challenging for us.

“Overall, our second-quarter results (2QFY2024, ended June 30) show that our EBITDA (earnings before interest, taxes, depreciation, and amortisation) and cash flow are quite positive,” he said.

For 2QFY2024, GDEX narrowed its net loss to RM2.92 million, down from RM11.35 million a year earlier, due to effective cost management in express delivery services. Revenue increased slightly to RM96.88 million from RM95.08 million, while EBITDA was RM11.4 million, and free cash flow stood at RM12.9 million.

For 1HFY2024, GDEX reported a net loss of RM5.08 million on revenue of RM196.3 million.

Teong shared this information with The Edge following the signing ceremony on the collaboration between GDEX and the Government-Industry TVET Coordination Body (GITC) on Thursday, which aims to develop a skilled and competent workforce to meet the needs of the courier and logistics industry.

Through this collaboration both parties plan to jointly develop internship programmes and work-based learning opportunities for practical experience.

Both GITC and GDEX will also exchange information and expertise to align technical and vocational education and training (TVET) curricula with industry requirements, as well as explore opportunities for joint projects and initiatives related to TVET and the logistics industry.

GDEX is a homegrown courier and logistics company that was the first in the industry to set up a training academy, known as GDEX Academy, to provide technical and vocational training on courier and logistics curriculum for its employees. These employees, who are mainly school leavers, have the opportunity to obtain their certificates and diploma through programmes that are accredited by Malaysian Skills Certification (Sijil Kemahiran Malaysia).

GITC was established in February 2022 to steer the national TVET agenda by coordinating industry cooperation through an industry-led platform at the national level to articulate skills and manpower requirements across various sectors. Additionally, GITC serves as a unified source of reference for industry input on TVET development and demand to the government.

Source: The Edge Malaysia

GDEX’s diversification into IT to improve efficiency of logistics, last mile delivery operations — CEO

Malaysia is generating enough energy surplus to power new major development projects as well as grow its exports, its prime minister said today, as it looks to court investors to a special economic zone (SEZ) planned with neighbouring Singapore.

The two countries plan to finalise a deal by the end of the year to develop the SEZ in Malaysia’s southern Johor state, just north of Singapore, aimed at attracting investment and freeing up the movement of goods and people.

Prime Minister Datuk Seri Anwar Ibrahim said the government would continue to pursue renewable energy and energy transition initiatives, as it aims to achieve net-zero emissions by 2050, while still focusing on projects like the Johor-Singapore SEZ.

“Taken together with various energy-focused projects in all states and regions of Malaysia … we are confident of a surplus of energy that feeds developments such as the JS-SEZ, as well as have enough to grow our exports of energy,” Anwar told an investment event in Johor.

Johor is expected to see a rise in energy demand, having attracted large investments in data centre facilities in recent years from tech giants such as Nvidia, and China’s ByteDance.

The investment boost has helped propel Malaysia’s economy this year, with growth beating expectations in the past two quarters, and the local stock market becoming the best performing in the region, Anwar said.

Economic performance in the third quarter was similarly “looking promising”, Anwar said. 

Source: Malay Mail/Reuters

PM Anwar: Energy surplus to drive Johor-Singapore SEZ as Malaysia woos investors

Sabah has the potential to become a leader in green hydrogen production through Ocean Thermal Energy Conversion (Otec). Energy Commission of Sabah (ECoS) chief executive officer Datuk Abdul Nasser Abdul Wahid said that the technology could be a game changer for the state’s energy sector.

Citing a marine survey conducted by Universiti Teknologi Malaysia, Abdul Nasser said that Sabah has the greatest potential for Otec throughout Malaysia.

He added that the survey explored the topography and temperature differences of the waters surrounding Sabah, revealing a potential of 20,000 megawatts of Otec energy.

“But assuming that only per cent of this potential has been tapped, there is still a significant amount of energy that can be converted into electricity. And when you have electricity in abundance like that, you can actually generate a lot of other things,” he told the media after launching the commission’s two online applications at a hotel here.

The commission has initiated a two-year feasibility study on the technology in the east coast area.

Abdul Nasser added that Otec can not only produce electricity but also enable the desalination of water to provide fresh water and facilitate electrolysis to generate green hydrogen.

“We’re looking more towards a prime product like green hydrogen. You can generate enough revenue to actually make this a viable business case and develop Otec on a larger scale,” he said, adding that building the Otec facilities would cost double that of a hydroelectric power plant.

He noted that a 100-megawatt gas power plant would cost over RM1 billion, while a hydroelectric plant of the same capacity would range between RM2 billion and RM3 billion.

Abdul Nasser said that following the recent passing of enactments related to energy during the state assembly legislative sitting, Sabah has attracted interest from companies in Australia and the United Kingdom. He said there is a demand for green hydrogen among developed countries, including Japan.

“Because when you say green hydrogen, it must come from a green source. For example, there are other types of hydrogen; they call it grey hydrogen, which is produced from natural gas. They don’t want that. They want green.

“They want green hydrogen for sustainability and their energy transition agenda. We believe that Otec can be a game changer in the future for off-takers like this and for others to follow in order to obtain green hydrogen based on their hydrogen roadmap agendas,” he said.

Source: NST

Sabah aims to lead in green hydrogen production via Otec technology

Iskandar Investment Bhd (IIB) is poised to reap benefits from the Forest City Special Financial Zone (SFZ) incentives, as it leverages its position as a master developer of Iskandar Malaysia.

Iskandar Malaysia’s land area is 2,217 sq km, three times larger than Singapore. It is home to two million people and its population is set to grow to three million next year.

IIB president and chief executive officer Datuk Idzham Mohd Hashim said SFZ, designed to attract high-value investments with its tax incentives and streamlined processes, was expected to generate spillover that would directly benefit IIB’s projects, such as Tech Medini and GBS Iskandar @ Medini.

IIB’s developments in Iskandar Puteri are recognised as a growing hub for technology and innovation.

It is anticipated to see increased demand for premium commercial space, driven by an influx of multinational corporations and financial institutions, he told the New Straits Times today.

“Iskandar Puteri’s proximity to Forest City places it in an ideal position to attract businesses looking for high-quality infrastructure and connectivity.

“The SFZ will accelerate Iskandar Puteri’s transformation into a world-class business district, creating a surge in high-skilled jobs and further boosting our role in Johor’s economic development,” he said.

Khazanah Nasional Berhad (KNB), the Employees Provident Fund (EPF) and Kumpulan Prasarana Rakyat Johor (KPRJ) are the shareholders of IIB.

Idzham said Forest City’s strategic location and its proximity to Singapore would enhance Johor’s competitiveness, while positioning it as a prime destination for global investors.

With infrastructure projects like the Rapid Transit System (RTS) and the potential revival of the High-Speed Rail (HSR) on the horizon, IIB was expecting further investments to flow into Iskandar Puteri.

“The RTS is expected to strengthen connectivity, which will make Iskandar Puteri even more accessible and attractive.

“We see the establishment of Forest City SFZ as a pivotal moment in Johor’s economic landscape, with the potential to cement the state as a key financial hub in Southeast Asia.

“For IIB, SFZ will serve as a catalyst for attracting high-value investments and driving regional growth, which will cement our status as a key player in the country’s economic landscape,” he said.

Last Friday, Finance Minister II Datuk Seri Amir Hamzah Azizan announced that Forest City SFZ would be the first in the country to offer a zero per cent concessionary tax rate on income generated by eligible investments from the Single Family Office Vehicle (SFOV1).

SFOV1 is a corporate vehicle which is wholly owned, directly or indirectly, by one or more individuals from a single family and established solely for the purpose of holding the investments of family members.

Other SFZ’s strategic incentives, include a zero to five per cent corporate tax rate, a flat 15 per cent income tax for knowledge workers and streamlined immigration processes is set to draw multinational corporations and global financial institutions, boosting job creation and stimulating sectors like financial services, technology and logistics.

Idzham said Forest City SFZ would complement Iskandar Puteri’s projects by attracting a new wave of businesses, increasing demand for high-quality commercial space, and driving further investments in infrastructure. This would accelerate Iskandar Puteri’s transformation into a world-class business district and a centre for high-skilled jobs.

Source: NST

Iskandar developer to capitalise on Forest City’s financial zone

Solar District Cooling Group Bhd has teamed up with Sunrise Shares Energy Sdn Bhd (SSE) to promote the adoption of renewable energy solutions and sustainability advisory services across multiple sectors in Malaysia.

In a statement today, Solar District said the collaboration will see both companies jointly offering energy solutions to their respective clients.

Solar District will leverage its expertise in Building Management Systems (BMS), solar thermal systems, and energy efficiency services.

SSE will promote its portfolio of commercial solar panels, solar-powered streetlights, and battery energy storage systems.

“Together, the two companies will work to provide clients with complete solutions for enhancing energy efficiency, reducing operational costs and achieving sustainability goals,” it said.

Under the agreement, Solar District said both companies will also offer joint sustainability advisory services, helping clients obtain green building certifications and low-carbon certifications, as well as promoting sustainable development strategies.

“This collaboration will enable both companies to explore new business opportunities through joint ventures, co-marketing initiatives, and other strategic partnerships,” it said. 

Solar District managing director said Edison Kong said the partnership allows the companies to combine their strengths and offer energy solutions.

“Together, we aim to make a significant contribution to the country’s transition towards a greener economy,” said Kong.  

SSE director Matt Tan said the collaboration presents an exciting opportunity to expand the company’s reach and capabilities in the renewable energy market.

Source: NST

Solar District, Sunrise Shares to jointly promote RE adoption

Tax incentives in the Forest City Special Financial Zone expected to attract huge investments

The tax incentives offered in the Forest City Special Financial Zone (FCSFZ) have the potential to turn Johor into a financial centre in the south and attract investments into the state, especially from family offices and high-networth individuals.

Turning the potential into reality, however, will require a well established and reliable ecosystem, including regulations and infrastructure, upon which a successful FCSFZ can not only help the metropolis shed its “ghost town” image, but also be adopted elsewhere in the country and even abroad depending on its success, said commentators.

Last week, the government announced a few tax incentives to revive the struggling mega-project, among which was a corporate tax rate of 0% to 5%, 0% tax rate for family offices and a 15% personal income tax rate for knowledge workers and returning Malaysians who choose to work there.

Putrajaya also announced financial companies will enjoy incentives such as special deductions on relocation costs, enhanced industrial building allowances and withholding tax exemptions.

“This is a good initiative, especially with a tax regime starting from 0%. However, we await the details on grounds of qualification. Family offices, financial technology (fintech), shared services and digitalisation are the way forward.

“What is needed is the legal framework to ensure efficiency and transparency. What happened to some countries where it was abused must not happen here. And the ecosystem must be right to attract knowledge workers to FCSFZ,” said Olive Tree Property Consultants chief executive officer Samuel Tan.

He added that apart from attracting knowledge workers from abroad, upskilling and reskilling of the existing pool of local talent is an important part of the talent retention initiative.

Lower tax itself is insufficient if the quality of living is not up to expectations, Tan added. In this regard, the stakeholders must ensure FCSFZ offers an environment where people find it safe, convenient and efficient to work.

Tan said the authorities should consider widening the scope of investments to the special economic zone (SEZ) whereby more players can invest. This would make Forest City more vibrant with diverse supporting industries and services.

Tax consultant S M Thanneermalai of Thannees Tax Consulting Services, however, warned the incentives could be trouble for other economic zones in Malaysia as it leads FCSFZ to cannibalise on investments which could, in turn, lead the other state governments to push for similar or even better incentives for themselves from the federal government.

“The incentives will be good for FCSFZ as they could help utilise its existing infrastructure and attract various new economy investments, which will help to improve its occupancy rates, but it could come at the expense of other economic zones in the country,” he told Starbiz.

Kenanga Research noted the tax benefits were very competitive compared to the corporate income tax rate of 17% in Singapore for example. As a result, it may help create a more vibrant fintech ecosystem in the FCSFZ as there are an estimated 1,580 fintech firms in Singapore as at 2022, compared to over 300 companies locally.

Furthermore, the research house noted multinational corporations, which will be subject to the global minimum tax rule of at least 15% effective tax rate from 2025, could view the tax incentives at FCSFZ as offering some potential benefit to them.

Is the offer made attractive enough to attract family offices to consider? High-networth investor Ian Yoong Kar Yin believes the zero tax incentive is very competitive.

“These are undoubtedly very attractive incentives for family offices to relocate to FCSFZ. It will nevertheless take a few years.

“It is highly likely that many family offices will be from ultra-high-net-worth families from North-east Asian countries ex-japan. The proximity of FCSFZ to Singapore will be a major draw, given the much improved logistics and knowledge pool,” he said.

He added the legal and regulatory framework for family offices required fine tuning to bring them in line with Singapore, Switzerland and other counties.

He said Bank Negara could encourage domestic banks to establish multi-family offices in FCSFZ as many banks in Malaysia had private banking arms which were precursor of multi-family offices.

Much like Tan of Olive Tree, Yoong said the concessionary corporate tax rate and individual tax rate were major draws for fintech companies in South-east Asia to relocate to FCSFZ but must be complemented with issues like security, quality of life and amenities.

He, however, believes it’s very likely that FCSFZ will be the sole special financial zone in Malaysia with such incentives for the next few years.

Meanwhile, the Securities Commission (SC) has been tasked with coordinating the single family office incentive scheme.

The regulator yesterday announced the incentive for the family office require such setups to establish and operate a registered office in Pulau 1 of the FCSFZ.

The tax incentive is for a 20-year period covering the initial period of 10 years and additional/subsequent 10 years.

To qualify for the initial 10-year period, the single family office vehicle (SFOV) must be a new investment holding company incorporated in Malaysia and seek pre-registration with the SC on the eligibility of the tax incentives.

The management company or SFO which is a related company of SFOV to be set up and operate out of Pulau 1, should have at

“This is a good initiative, especially with a tax regime starting from 0%. However, we await the details on grounds of qualification. Family offices, financial technology, shared services and digitalisation are the way forward.” Samuel Tan

least one investment professional with a minimum monthly salary of RM10,000.

The SFOV must also hold assets under management (AUM) of at least Rm30mil and meet minimum local investment in eligible and promoted investments of at least 10% of AUM or Rm10mil, whichever is lower. The SFOV must also spend a minimum of RM500,000 annually in operating expenditure (opex) locally.

The SFOV must also employ a minimum of two full-time employees of whom at least one is an investment professional, with a minimum monthly salary of RM10,000, the SC stated. The SFO or management company may not need to get certain licences under the Capital Markets and Services Act 2007 (CMSA) as long as it only provides services for its SFOV.

“Establishing the SFO scheme positions Malaysia to enhance its investor base by attracting regional and Malaysian families to manage their wealth from Malaysia,” SC chairman Datuk Mohammad Faiz Azmi stated in a statement.

“The projected economic multiplier of this initiative from the local substance requirements is estimated to range from Rm3.9bil to Rm10.7bil, which also includes the positive effects on creation of skilled employment and the demand for other ancillary services,” he added.

To qualify for the additional 10 years, the SFOV must hold AUM of at least Rm50mil, employ four full-time employees and spend a minimum RM650,000 annually in opex locally. The incentives come at a time when Malaysia and Singapore are close to finalising an agreement over a proposed Johorsingapore SEZ to be set up in Johor.

Maybank Investment Bank Research believes the boost in economic activity in FCSFZ will drive higher property demand there and its surrounding area which would benefit property companies like S P Setia Bhd, UEM Sunrise Bhd, Eco World Development Group Bhd and Sunway Bhd which have projects in the state.

Forest City, which is located in Tanjung Kupang, comprises four man-made islands and is a joint venture between Country Garden and Esplanade Danga 88 Sdn Bhd, which is a Johor state government subsidiary.

Hong Leong Investment Bank Research added with the special financial zone designation, future developments in Forest City will likely see more government involvement and by local companies.

“It is possible that more local contractors will be involved in building Forest City, unlike in the past where it was largely undertaken by the Chinese. Broadly, we feel that Johor-based contractors such as Kimlun Corp Bhd and Ekovest Bhd as well as Sunway Construction Group Bhd could stand to benefit from this,” it said.

Source: The Star

Johor set to become a financial hub