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Malaysia to achieve high-income status soon: OECD director

Malaysia has enjoyed five decades of rapid and inclusive economic growth, bringing the country within reach of high-income status, said a chief economist.

Organisation for Economic Cooperation and Development (OECD) Economics Department director Dr Luiz de Mello said the economy has achieved an impressive average yearly growth of over six per cent since the 1960s. 

He added that Malaysia has been ahead of regional peers in terms of per capita incomes and has been able to consolidate this lead. 

Luiz said while incomes were only one-third of the World Bank’s threshold for high-income countries in 1989, they are set to surpass that threshold by 2028.

“Significant policy reforms in the 1980s allowed Malaysia to attract large inflows of foreign direct investment, turning it into a global chips and electronics manufacturer.

“Growth and productivity could be strengthened further by easing restrictive regulations and creating a more level playing field between state-owned enterprises and private firms. 

“This would bring particular benefits for services and for small and medium enterprises (SMEs),” he said in a presentation at the launch of the 2024 OECD Economic Survey of Malaysia today.

Luiz noted that with higher incomes, however, surging demands for better public services require different policies from those that were successful in the past. 

He said the public sector will have to deliver more and become more effective, which calls for improved economic governance.

He also emphasised that filling the substantial gaps in the current social protection system requires increased expenditure. 

On Malaysia’s growth, Luiz said the country’s growth is accelerating, mostly driven by expanding domestic demand. 

He added that exports are set to rebound amid stronger external demand, and inflation has fallen below historical averages but is expected to rise as energy subsidies are withdrawn.

“The economy has shown resilience in the face of shocks, including the pandemic, supply chain bottlenecks, and the economic implications of Russia’s war of aggression against Ukraine.

“Growth is projected to reach 4.9 per cent in 2024 and then 4.7 per cent in 2025. 

“Buoyant domestic demand and new opportunities in technology-intensive sectors and the expected rebound in exports will encourage private investment despite higher financing costs,” he said.

On monetary policy, Luiz said the monetary authorities started a tightening cycle in 2022 as inflation approached five per cent, driven by global energy prices and currency depreciation.

“With inflation near its two per cent long-term average, the current monetary policy stance seems adequate and provides room to accommodate a temporary increase in inflation as energy subsidies are withdrawn. 

“At the same time, monetary authorities should stand ready to raise rates to counter possible second-round effects from higher energy prices,” he noted.

Source: NST

Malaysia to achieve high-income status soon: OECD director


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Artificial intelligence-ready talent is crucial for industries and Malaysia’s economic future, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz

He said the ministry (Miti) has already discussed this issue with the Ministry of Higher Education.

“We are collaborating to ensure that the talent pipeline, starting from universities, is well-trained in AI. This will ensure that as industries adopt AI, they will have skilled professionals ready to join their companies,” he told reporters at the AI Conference 2024 today.

Tengku Zafrul said Miti is actively working on this initiative and plans to present its ideas to the finance minister, particularly for the upcoming budget, to support AI development and adoption in the country.

“The AI incentives mentioned are crucial for fostering talent. Under the National Industrial Master Plan (NIMP 2030), there are initiatives aimed at enhancing tech adoption, with a target of reaching 3,000 companies.

“These companies need to be AI-ready, and support is essential, especially for local small and medium enterprises, to adopt the latest technologies, including AI. This forms part of the broader plan.”

Separately, Tengku Zafrul highlighted the pivotal role of semiconductors in supporting Malaysia’s reindustrialisation under NIMP 2030 and the digital economy.

He noted that, as of July 2024, almost 40% of Malaysia’s exports, amounting to RM51.78 billion, were from the electrical and electronics (E&E) sector, largely due to semiconductors.

“Malaysia’s E&E industry produces 13% of the world’s back-end semiconductors, driving 40% of the country’s export output and contributing approximately 5.8% to the GDP in 2023,” he said in his speech.

AI Conference 2024, themed ‘AI Driving the National Economy: Opportunities & Challenges’, was held at Brickfields Asia College. The event brought together industry leaders, government officials and AI experts to discuss the transformative impact of artificial intelligence on Malaysia’s economy and productivity.

Malaysia Productivity Corporation director-general Zahid Ismail highlighted the significant productivity gains driven by AI, noting a 2.05% year-on-year increase in productivity as of March.

“Sectors more exposed to AI are experiencing nearly five times greater labour productivity growth. Despite Malaysia slipping in the World Competitiveness Ranking to 34th place, recent improvements in trade, with a 10% increase as of May 2024, demonstrate the country’s resilience and potential for recovery,” he said.

Zahid stressed that AI-driven growth is key to enhancing national productivity and economic strength.

Source: The Sun

AI-ready workforce crucial for Malaysia’s economic future, says Tengku Zafrul


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The Pahang government is considering expanding the Fast 8 (F8) initiative, which accelerates the approval of high-impact investment project permits from 24 months to eight months.

This initiative, originally introduced by the Kuantan City Council, is proposed to be extended to other local authorities in the state.

State Local Government, Housing, Environment and Green Technology Committee chairman, Datuk Mohammad Fakhruddin Mohd Ariff said this effort is also part of a broader move to facilitate business management and improve existing systems and procedures.

“Efforts to enhance business processes have been carried out with dedication, including the establishment of the Ease of Doing Business (EODB) Committee chaired by the State Secretary (Datuk Seri Zulkifli Yaacob).

“We understand that the business world is increasingly challenging, and a state’s ability to streamline business processes is crucial in attracting investors and ensuring continuous economic growth,“ he said when opening the EODB Planning Clinic organised by PlanMalaysia Pahang here today, which was attended by over 200 participants including developers, consultants and stakeholders..

Meanwhile, Mohammad Fakhruddin noted that Pahang is one of the top-performing states, ranked second nationally for facilitating the development permit process according to the Doing Business in Malaysia 2020 report.

“However, we cannot be complacent with this achievement. We must continue striving to improve our ranking over time and remain responsive to the needs and expectations of investors and entrepreneurs,“ he said.

Source: Bernama

Pahang plans to expand Fast 8 initiative to expedite investment permit approval


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The Northern Corridor Economic Region (NCER) attracted RM15.26 billion in investments and added 1,700 job opportunities in Kedah during the first seven months of this year.

Northern Corridor Implementation Authority (NCIA) chief executive Mohamad Haris Kader Sultan said the figure significantly surpasses the RM5.43 billion in investments realised during the same period last year.

He said this was made possible through the collaboration of the NCIA, the Malaysian Investment Development Authority (MIDA), and the Kedah government.

“This strong performance is evidence of the effectiveness of the NCER Strategic Development Plan, and NCIA is confident that the overall performance this year will surpass Kedah’s 2023 performance.

“This year, NCIA also introduced the FaCi@NCER initiative to expedite the investment realisation process in the NCER by connecting various stakeholders through a comprehensive approval chain process,” he said in a statement today.

Haris said the announcement of NCER’s investment performance in Kedah was made during the State Steering Committee meeting chaired by Menteri Besar Datuk Seri Muhammad Sanusi Md Nor.

Following the meeting, Sanusi officiated the NCIA’s Kedah Medical Device Ecosystem Appreciation Ceremony, recognising the contributions of industry players, including Richter Rubber, KHTP Sterilisation, Diptech Industries, and Ideal Care.

Haris said the medical device industry is a crucial component of the high-value manufacturing sector, which has seen significant growth in Kedah, particularly in Kulim High Technology Park (KHTP) and the industrial areas surrounding Sungai Petani.

“Since 2019, NCIA has successfully garnered RM34.8 billion, creating over 16,000 job opportunities in the high-value manufacturing sector in Kedah. Of this amount, RM1.56 billion was contributed by the medical device industry, generating more than 1,600 skilled and semi-skilled job opportunities,” he added.

Haris said Kedah is poised to become a preferred medical device manufacturing hub, not only locally, but also globally in future, under the NCER strategic development plan.

Source: NST

NCER attracts RM15.26 billion in investment, adds 1,700 jobs in Kedah


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Sarawak is making significant strides in sustainable forest management and renewable energy, positioning itself as a leader in environmental stewardship, says Deputy Premier Datuk Awang Tengah Ali Hassan.

Speaking at the Asia-Pacific Regional Conference on Forest Landscape Restoration, Awang Tengah said that Sarawak’s titles of “Asean Battery” and “Green Energy Hub” were not just rhetoric. 

“Sarawak has the necessary resources and is actively working towards realising these visions.

“Our unwavering commitment to sustainability is clearly reflected in our comprehensive green economy initiatives,” he said.

Sarawak is at the forefront of Malaysia’s transition to a low-carbon economy, pioneering efforts in Sustainable Aviation Fuel (SAF) production and exploring advanced carbon capture, utilisation, and storage (CCUS) technologies. 

“By embracing these innovative solutions, Sarawak is not only mitigating climate change impacts but also creating new industries and high-quality jobs,” he added.

Awang Tengah, who is also Sarawak’s Second Minister for Natural Resources and Urban Development, said the state had shown its dedication on sustainable development, prioritising environmental, social, and governance (ESG) principles. 

This commitment is central to Sarawak’s goal of becoming a developed region by 2030.

Regarding forest conservation, Awang Tengah stressed on Sarawak’s dedication in protecting its 130-million-year-old rainforest which is rich in biodiversity. 

Under the Sarawak Land Use Policy, 7 million hectares of forest are allocated for sustainable forestry and conservation purposes.

Despite the challenges posed by climate change and deforestation, Sarawak is committed to sustainable forest management (SFM) and has implemented best practices in this area. 

“SFM is crucial for balancing economic, social, and environmental well-being, enhancing local livelihoods, creating employment, and safeguarding the environment,” he said.

To ensure adherence to international sustainability standards, Sarawak has mandated that all long-term forest timber licences obtain Forest Management Certification (FMC). 

To date, 26 Forest Management Units (FMUs) and eight Forest Plantation Management Units (FPMUs), covering 2.38 million hectares and 122,800 hectares respectively, have been certified.

Awang Tengah also highlighted Sarawak’s leadership in the Greening Malaysia Campaign, a national initiative aiming to plant 100 million trees by 2025. 

Sarawak set a goal to plant 35 million trees by 2025 and achieved this target a year ahead of schedule. 

“This achievement is a testament to Sarawak’s commitment to environmental stewardship,” he said.

Source: NST

Sarawak leads green revolution with bold environmental initiatives


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Sarawak’s pumped hydro energy storage (PHES) potential is high and could potentially contribute to the focus on renewables and green solutions for the state, said Dato Sri Julaihi Narawi.

The Minister for Utility and Telecommunication said two potential sites have been identified for proof-of-concept studies, and a successful first model will assist in identifying more sites.

“One of the facilities is envisioned to be developed between our Bakun and Murum hydroelectric plants. The other facility will be built in the Padawan area of Kuching,” he said in a statement yesterday.

Julaihi, who is currently leading a Sarawak delegation to Australia, believes the potential application of PHES in the state, once proven to be feasible, ‘is large’.

The delegation is in Australia to study the country’s energy transition and sustainable development journey, specifically its experience with PHES.

“Even beyond PHES, Sarawak and Australia can learn from one another with potential areas of collaboration and partnership driving the energy transition in the respective regions.

“Sarawak will potentially apply these relevant aspects to the state’s own energy transition policy and plan with the support ofP4I,” he said, following a meeting with Australia’s Department of Foreign Affairs and Trade and Partnerships for Infrastructure (P4I) in Australia.

With the support of Sarawak Energy Berhad (SEB) as the implementing agency, the Ministry of Utility and Telecommunication has been driving the shift to renewables with an emphasis on renewable hydropower development, he added.

Julaihi informed the delegation host that Sarawak had first embarked on its energy transition programme with the launch of the Sarawak Corridor of Renewable Energy (SCORE) in 2008, harnessing the state’s hydropower potential to power Sarawak’s growth and development.

“In 2021, Sarawak also launched the Post Covid-19 Development Strategy (PCDS) 2030, which has identified renewable energy as a key enabler for Sarawak’s transformation into a high-income society by 2030. Under PCDS, Sarawak is also exploring various renewable energy resources or technologies available.

“To progress, we have been tasked with achieving 10 gigawatts by 2030, from 5,745 megawatts of energy as of December 2023,” he said.

The Sarawak government is confident that it will achieve the goal by continuing to advance sustainability and renewable strategies, including leveraging resources such as solar, biomass, and hydropower, with the latter being the foundation of the state’s energy transition.

Among those present were SEB chief operating officer James Ung and Australian National University Prof Andrew Blakers.

Source: Borneo Post

S’wak’s PHES potential high, could boost renewable focus, says Julaihi


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Pantech Group Holdings Bhd’s (KL:PANTECH) planned listing of its two manufacturing units will allow the company to monetize the business, Phillip Capital said on Monday.

The listing of Pantech Global Bhd — the special purpose vehicle housing Pantech Stainless & Alloy Industries Sdn Bhd (PSA) and Pantech Steel Industries Sdn Bhd (PSI) — will unlock value, raise funds for capacity expansion, and strengthen its global market presence, said Phillip Capital.

“We view this deal positively,” said Phillip Capital, one of only two research houses covering the stock, and maintained its “buy” call on the stock and a target price of RM1.42. “Investors looking to invest into a regional manufacturer may find Pantech Global’s listing to be compelling.”

Shares of Pantech Group have racked up a 16% gain so far this year. TA Securities, the only other research house covering the stock, also has a “buy” call on the stock.

Under the proposed listing, Pantech Global will acquire PSA and PSI from Pantech Group for RM294 million in shares. A total of 587.77 million new shares of Pantech Global at 50 sen apiece will be issued to the holding company for the acquisition.

Upon completion of the proposed acquisitions, Pantech Global will undertake an initial public offering (IPO) of 262.23 million new shares, representing 30.85% of its enlarged issued share capital. The issue price will be determined later.

If IPO shares are priced at 50 sen, Pantech Global would be valued at 8.5 times the earnings in the financial year ended February 2024 (FY2024) and in line with the main holding company’s own valuations at nine times, according to Phillip Capital’s estimates.

The increase in minority interest following the reduced stake in Pantech Global is expected to reduce the house’s earnings projection for FY2026-FY2027 by 7%-8%.

“However, the capital raised for expansion is expected to drive future earnings growth, which has yet to be reflected in our earnings forecasts,” Phillip Capital added.

Source: The Edge Malaysia

Pantech’s planned listing of manufacturing units positive, compelling — Phillip Capital


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China-based manufacturer of electronic test equipment, RIGOL Technologies Co Ltd, has established its first overseas plant, research and development (R&D) centre and service centre in Penang, with a total investment of over RM100 million.

In a joint statement on Monday, Malaysian Investment Development Authority (Mida) and RIGOL said the new facility is located on 2.07 acres (3,365 square metres), with a factory footprint of 7249 square metres.

Mida chief executive officer (CEO) Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the investment offers an opportunity for Malaysia to move up the supply chain ladder, while also generating high-value jobs.

“We are excited that RIGOL chose Malaysia for its first manufacturing plant outside of China.

“At Mida, we are fully committed to facilitating developments like this that take Malaysia’s manufacturing sector to the next level,” he said in the statement.

Phase one of the new facility, which has already commenced operations, consisted of multiple production lines, focusing on the production of electronic test and measurement instruments. 

Phase two will have additional production lines and will focus on establishing an advanced R&D centre, as well as a comprehensive overseas service centre to support RIGOL’s ongoing commitment to innovation and customer service. 

Meanwhile, RIGOL Technologies (Malaysia) Sdn Bhd CEO Wang Ning said the Penang facility is a significant milestone in its global expansion strategy, and underscores the company’s dedication to delivering exceptional service to its international customers.

By enhancing its service capabilities in overseas markets, RIGOL is positioning itself to better meet the growing demands of clients, while maintaining steady growth within the industry. 

InvestPenang CEO Datuk Loo Lee Lian said: “Penang, also known as the Silicon Valley of the East, has over half a century of industrialisation experience, making it a natural hub to attract players within the electrical and electronics sector”.

Source: Bernama

Rigol Technologies sets up RM100m Penang facility — MIDA


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The Ministry of Finance (MoF) urges the electrical and electronics (E&E) sector to approach skilled talent development holistically to ensure Malaysia pulls ahead of competitors.

Finance Minister II Datuk Seri Amir Hamzah Azizan said sustaining a strong talent pipeline remains a key challenge not only for Malaysia but also for other countries vying for space within the sector.

“I believe that if we can resolve this issue, we will pull ahead of the competition. Therefore, we need a long-term view when it comes to talent development.

“This includes instilling interest in science, technology, engineering, and mathematics (STEM) in schools as well as ensuring that career options are appealing so that students choose to pursue pathway towards the industry,” he said in his speech at the Malaysia Semiconductor Industry Association (MSIA) Merdeka celebration 2024 here today.

Amir Hamzah said the government recognised the importance of the sector given that the E&E sector currently made up over 40 per cent of the country’s total exports, a clear indication that the sector plays a pivotal role in contributing to Malaysia’s economic growth.

He added that the government is committed to supporting the industry whereby it recently announced an MoF-led programme, GEAR-uP, that is designed to boost growth in crucial economic sectors.

Under the programme, six government-linked investment companies (GLICs) have committed to investing RM120 billion in domestic direct investments (DDI) over the next five years, Amir Hamzah said.

The six GLICs involved are Khazanah Nasional Bhd, the Employees Provident Fund (EPF), Kumpulan Wang Persaraan (Diperbadankan) [KWAP], Permodalan Nasional Bhd (PNB), Lembaga Tabung Haji (TH), and Lembaga Tabung Angkatan Tentera (LTAT).

At the MSIA event, Penang Chief Minister Chow Kon Yeow said being one of the top global semiconductor hubs, the state must not be dependent solely on foreign direct investment (FDI) but place importance on domestic direct investment (DDI) too.

“Now we must begin departing from the term ‘Made in Malaysia’ to ‘Made by Malaysia’ by nurturing local startups, capable of producing Malaysia’s very own intellectual property (IP) such as in chip design.

“Penang intends to create a comprehensive chip manufacturing ecosystem that allows the expansion of larger chip manufacturers while nurturing the growth of future global champions to ensure Malaysia remains a global leader in this critical industry,” he noted.

Source: Bernama

MoF urges E&E industry to develop skilled talent holistically


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Based on projected advancements in energy transition technology, Malaysia needs 62,000 skilled workers to achieve the goal of generating up to 70% or 56 gigawatts of renewable energy by 2050, said Deputy Prime Minister and Minister of Energy Transition and Water Transformation Datuk Seri Fadillah Yusof.

He said that this is a continuous process and new competent workers for the energy sector will be produced each year.

“The deputy minister will be tasked with focusing on these training programmes. They will go to every corner, especially in the peninsula, to attract more young people to get involved in these fields (gas and energy),” Fadillah told reporters at after the launch of TVET Competent EC – Energy Transition Catalyst today.

He said that achieving the goals of the Net Energy Transition Roadmap requires not only investors but also skilled workers to implement the energy transition goal effectively.

“If we don’t have knowledgeable and skilled workers in these technical fields, we will not be able to achieve this, including the wireman installing solar panels on rooftops, the chargeman for installing cables, and so on. We need skilled workers,” he said.

Fadillah said that unlike the construction sector, where he was previously involved in, specialised fields such as energy and gas offer higher salaries due to the need for specific expertise.

“TVET, especially in the energy and gas fields, is specialised, and because it is specialised, their salaries are better than in other sectors. They can’t get a job if they are not competent. This is different from a general plumber.

He added, “The demand in the market is quite high.”

A memorandum of understanding between the Energy Commission and the Energy Commission of Sabah (ECoS) was signed during the event, aiming to harmonise governance and regulation concerning competencies, electrical equipment and gas between the federal and state governments.

“In Malaysia, we have three energy authorities: the Energy Commission in Peninsular Malaysia, ECoS and Sarawak Energy Sdn Bhd.

“We want to ensure there is cooperation between the federal level in Peninsular Malaysia and Sabah and Sarawak so that it can be harmonised. It’s not just about standardisation, but the whole competency process should be unified; it shouldn’t be different in Sarawak, Sabah and Peninsular Malaysia,” he said.

The Energy Commission organised the TVET Competent ST event as part of its initiative to strengthen technical and vocational education and training programmes in the country, particularly activities related to electrical and gas pipeline competencies.

As of August, a total of 140 institutions across Malaysia have been accredited to conduct electrical and gas pipeline competency courses.

The event also aims to build professional relationships between regulatory agencies and institutions, and to reinforce the platform for continuous education in line with green technology advancements and government directions.

Source: The Sun

Fadillah: 62,000 skilled workers needed to achieve renewable energy generation goal


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MMS Ventures Bhd is expected to return to the black in 2024, mainly driven by the medical device industry.

Group managing director T K Sia told StarBiz that the group’s bespoke automation manufacturing system for the medical industry would generate about 40% of its 2024 turnover.

“We are currently supplying to multinational corporations or MNCs involved in the medical device manufacturing business. Some of these are in Malaysia.

“The demand is steady and will gradually improve. We believe our strategy to be profitable this year should be achievable, barring unforeseen circumstances,” Sia said.

In the first quarter ended March 31, 2024, the group posted RM454,708 in net profit on the back of RM5.2mil in revenue against RM407,805 and RM5mil, respectively, in the same period a year ago.

“Malaysia is hosting the Asian Medtech 2024 in Kuala Lumpur in December this year to attract medical investments into the country that will help support the growth of local medical device companies,” he said.

Sia said the mainstay of the group’s business for the past few years has always been associated with smart devices.

“When the industry underwent a downturn, we forayed into other sectors, mainly the medical equipment and energy storage business.”

Sia said the group’s earlier investments in these businesses have essentially paid off, as seen in the current quarter’s commendable results.

“We intend to keep this momentum going. With these new businesses mentioned above, which have kept us busy, we are cautiously optimistic that our prospects for the rest of the year will remain positive,” he said.

For the group’s six months of the 2024 financial year, MMS posted RM1.22mil in net profit on the back of RM10.69mil in revenue, compared to RM115,312 and RM7.99mil, respectively, in the 2023 corresponding period.

According to the Medical Device Authority (MDA), the Asean region with a growing population of over 600 million and a gross domestic product of over US$2.76 trillion, has vast potential for a quality healthcare industry driven by a rise in the middle-class population.

The MDA also said the region would likely see a 10% annual growth in the demand for medical devices.

“Revenue in the medical devices market in South-East Asia is projected to reach US$10.92bil in 2023.

“The market’s largest market is cardiology devices with a projected market volume of US$1.60bil in 2023,” the MDA added.

The MDA said medical device revenue was expected to show a 7.59% compounded annual growth rate (CAGR) from 2023 to 2028, resulting in a market volume of US$15.74bil by 2028.

Sia said the group has also ventured into battery storage systems.

“We are supplying to a US-based company in Malaysia,” he said.

According to Precedence Research, the global battery market was US$125.35bil in 2023, calculated at US$146.20bil in 2024 and is expected to reach around US$680.85bil by 2034, expanding at a CAGR of 16.6% from 2024 to 2034.

The report added that the Asia-Pacific battery market size, estimated at US$70.36bil in 2023, is expected to increase to around US$392.17bil by 2034 at a CAGR of 16.9% from 2024 to 2034.

“In 2023, the Asia-Pacific region was the world’s primary market, accounting for a large share of global battery sales.

“In view of many factors such as urbanisation, industrialisation and increasing household income in emerging countries, supported by desired regulations to attract regional investments, residential, commercial or grid storage is estimated to grow strongly.

“During the forecast period, North America has emerged as the next largest regional battery market,” the report said.

Source: The Star

MMS Ventures set to return to profitability in 2024 on high demand


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Seventeen more data centres will be operational in Selangor by next year, with a development cost of RM52 billion, said state executive councillor for Islam and innovation Dr Fahmi Ngah.

He said many firms are looking to invest in the industry as nearly the whole state is covered by the 5G network, improving ease of business.

“This figure (17 data centres) is a new application and we will complete it. This will not include the data centre developed by Google at Elmina Business Park, worth over RM9 billion.

“We have an extensive 5G network, which increases investor confidence. Many businesses deal in the digital world and we must utilise it,” he said during the Sembang Santai programme organised by the Malaysian Digital Economy Corporation (MDEC) here today.

He said he expects 100 per cent 5G network coverage in the state next year, in line with Selangor’s status as the nation’s largest economic contributor.

“This is essential infrastructure. We must provide various facilities to contribute to and drive the economy,” he added.

Last year, the Selangor State Development Corporation signed a memorandum of understanding with Singapore firm RDA Ventures Pte Ltd to build three data centres in Cyberjaya.

With stakeholders including MDEC and the Malaysian Investment Development Authority, the data centres will create jobs in the fields of electronics, computer science, statistics and administration.

Previously, state executive councillor for investment, trade and mobility Ng Sze Han said various parties are interested in Selangor, which hosts 18 data centres, but the state must look into aspects such as energy supply.

Source: Selangor Journal

Backed by extensive 5G network, Selangor to build 17 more data centres


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In line with the growing popularity of Japan as one of the top travel destinations in the world, Japanese companies are now striving to incorporate halal into their products and services.

Nihon M&A Center senior deal manager Ryosuke Sakamoto said Malaysia is one of the main countries it is partnering with to bolster this demand.

Malaysia offers diverse investment opportunities for Japanese companies, particularly within the promising halal ecosystem, he said.

“This ecosystem presents significant prospects in various sectors, including food and beverages, personal care, cosmetics, nutraceuticals, logistics, and tourism.

“Japanese companies, renowned for their high standards and innovative approaches, are well-positioned to leverage these opportunities, expanding their market reach and contributing to the growth and development of the halal industry globally,” Sakamoto told Bernama.

He also said that the Japanese Exchange Group, one of the leading exchange groups in the Asia-Pacific region, valued the global halal food market at US$2.468 trillion (RM10.8 trillion) in 2023, with projections suggesting a surge to US$5.81 trillion by 2032.

Within this market, Malaysia stands out as a compelling investment destination, Sakamoto said, adding that Japanese companies also view Malaysia as an attractive investment hub and are eager to do business in the country.

For eight consecutive years since 2015, Japan has been Malaysia’s fourth largest investor, highlighting its significance to Malaysia’s economy.

In 2022, Japanese foreign direct investment in Malaysia reached an impressive US$27 billion, leading to the creation of 336,000 jobs, according to Malaysia’s Ministry of Finance.

“Recent visits by Prime Minister Datuk Seri Anwar Ibrahim to Japan have further bolstered this positive outlook, securing investment potentials worth RM6.56 billion (as of 2023),” he said.

Nihon M&A Center senior consultant Law Sem Liang said that for decades, Malaysia has been a steadfast trading and technology ally for Japan.

“Now, as Japanese companies aim to expand in the global halal markets, Malaysia’s position as a halal gateway is invaluable. According to Malaysia External Trade Development Corporation, Malaysia’s halal market is projected to reach US$113.2 billion by 2030.

“Thus, Japanese investors are increasingly looking to establish a presence in Malaysia’s growing consumer market through merger and acquisitions, tapping into a wealth of regional prospects,” he said.

Law noted that major food and beverage companies such as Ajinomoto, Asahi Beverage, Kewpie and Umakane have already set up operations in Malaysia, with trade destinations extending to the Middle East and also back to Japan.

“It is not just halal food and beverage that attract Japanese companies; there are substantial opportunities in halal logistics, cosmetics, and personal care. These sectors offer ample potential for joint ventures with local small and medium enterprises, enabling technology transfers that benefit both countries,” he said.

Law also said that a prime example is Kewpie Malaysia Sdn Bhd, a wholly owned Japanese company that, in 2011 became the first Japanese multinational food manufacturer producing halal food in Halal Hub Industrial Park in Serkam, Malacca.

Nihon M&A Center provides financial services focusing on mergers and acquisitions related services such as reorganisation and management buy out, especially for small and medium-sized enterprises.

Source: Bernama

Japanese companies keen on halal industry collaboration with Malaysians


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The Ministry of Investment, Trade, and Industry (MITI) is pivotal in strengthening national unity by driving efforts to attract and secure investments for the country.

Citing investment examples, MITI Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the ministry will ensure that each of the billions in investments brought into the country will result in prosperity that can be felt by all levels of society.

He said this while speaking at a solo exhibition by Muhamad Zaim titled “Resolute”.

The minister said the art exhibition emphasises the importance of unity, strength, and national pride as the pillars of a strong Malaysia.

“A country that is independent, free, and sovereign can easily be empowered to build wealth and prosperity for its people.

“For me, freedom in Malaysia means that no matter where we come from, what our race is, or where we are in life, we need to be treated as ‘free’ or ‘Merdeka’, so that we can build our prosperity,” he said.

Tengku Zafrul said the exhibition conveys an important message: without unity, it is indeed difficult to build a strength that can be proud of and to build a strong, prosperous, and sovereign Malaysia.

Tengku Zafrul also cited his first book, “Weathering the Economic Storm”, which discusses the Responsive, Responsible, and Reformist approach.

He said that good governments must be “Responsive” to the needs of all their people – nurses, teachers, artists, and others – to enable everyone to contribute to achieving the country’s MADANI vision in their unique way.

“This must always be coupled with the need to be “Responsible” – to do the right thing to fulfil the dreams, aspirations, and potential of the rakyat.

“Finally, we must also be “Reformist” to ensure Malaysia can continue to prosper for future generations,” he said.

Source: Bernama

MITI plays key role in national unity by spearheading investment initiatives – Tengku Zafrul


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Malaysia and India are looking to enhance their economic relationship through an upgraded Free Trade Agreement (FTA) following Prime Minister Datuk Seri Anwar Ibrahim’s recent visit to New Delhi.

During their bilateral meeting, Anwar and his Indian counterpart Narendra Modi discussed close cooperation in several areas such as the digital economy, semiconductor manufacturing, artificial intelligence, infrastructure, food security and tourism.

“We will elevate whatever cooperation that we have towards a more comprehensive cooperation to cover all these pillars,” Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz told Bernama.

He said the Malaysia-India Comprehensive Economic Cooperation Agreement (Miceca), which was signed in 2011 and covers mainly trade and investment, will be upgraded.

“Both prime ministers have given us the timeframe of three months to revert on what are the areas that we want to focus on, and establish the parameters for the upgrade,” said Zafrul, who travelled to India with Anwar.

The range of topics discussed between Malaysia and India during Anwar’s visit also creates significant potential business opportunities in emerging technologies, renewable energy, chemicals and petrochemicals and manpower development.

Trade between Malaysia and India topped US$16.5 billion (RM72.2 billion) last year.

India is Malaysia’s 11th largest destination for exports and 12th largest source of imports.

In changing trade trends, Malaysia’s exports of electrical and electronics products to India have grown significantly while the share of primary commodities has declined from two-thirds two decades ago to one-third of all exports now.

Similarly, Indian exports, which had a big share of agricultural items earlier, now have a large amount of petroleum products and engineering goods.

The semiconductor sector holds huge potential for cooperation with India, Anwar emphasised in his speech at the Indian Council of World Affairs think-tank on August 20.

Anwar said Malaysia is the world’s sixth largest semiconductor exporter and “our country’s expertise lies particularly in the assembly, testing, and packaging segments of the semiconductor value chain” whereas India’s capabilities in software are “almost unparalleled”.

Source: Bernama

Malaysia, India to upgrade bilateral FTA — Zafrul


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Sabah plans to have an industrial park here to bring development to the district, said Chief Minister Datuk Seri Hajiji Noor today.

He said Kudat could be developed as it had many facilities, including deep seas and a port.

He also said the district was strategically located near China, South Korea and Japan.

“So we should build an industrial park in this district. About 5,000 acres (2,023ha) are needed, and the area has been identified.

“We need cooperation from the representatives, members of parliament and the people whose land may be involved.

“We will have discussions with the state industrial development and entrepreneurship minister and members of parliament in this district.”

He said this at the Bakti Bakti Madani Kudat Programme here.

Earlier, he presented 444 land grants of 1,130.09ha to constituents in the Kudat parliamentary area.

Source: NST

Sabah to build industrial park in Kudat


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The collaboration between Nvidia Corporation and YTL Power International can strengthen the artificial intelligence (AI) infrastructure and ensure that AI technology in Malaysia is in line with the needs and cultural values ​​of the country, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Tengku Zafrul said through a post on social media platform X that this collaboration could open up opportunities to develop a large language model in Bahasa Melayu and bring the fastest supercomputer to Malaysia, which will be located at the YTL Green Data Center Park, Johor, which is generated by solar energy.

“With its hi-tech AI infrastructure, Malaysia is on the right track to become a regional AI hub,” he said.

This effort is in line with the country’s aspirations under the New Industrial Master Plan 2030 (NIMP 2030) to become a ‘cloud-first’ country, strengthening the local AI ecosystem.

Initiatives like this will harness innovation, create opportunities for local talents in the technology sector, as well as attract more international investments and expertise, thus strengthening Malaysia’s position on the global stage in the field of AI.

Source: Bernama

Nvidia-YTL tie-up to boost Malaysia’s AI infrastructure – Tengku Zafrul


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Malaysia has emerged as a rising star in Southeast Asia, with investors increasingly drawn to the country thanks to the MADANI government’s business-friendly policies, said Housing and Local Government Minister, Nga Kor Ming.

He said that improving economic growth, political stability, and strengthening currency are also factors that attracted investors to Malaysia.

“The ringgit has outperformed its regional counterparts to become the best-performing Asian currency thus far this year, after appreciating over five per cent year-to-date,” he said in a statement today.

Meanwhile, the stock market has demonstrated strong momentum, with the FBM KLCI climbing more than 12 per cent year-to-date.

Malaysia’s economic growth has also exceeded expectations, expanding by 4.2 per cent in the first quarter of 2024 (1Q 2024) and 5.9 per cent in 2Q 2024, fuelled by robust private spending, foreign investment influx and strong export performance.

“Malaysia is now back on the right track,” added Nga.

Source: Bernama

Malaysia emerges as a bright spot in ASEAN


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The latest investments by Amazon Web Services (AWS) underscore that Malaysia has much to offer to foreign businesses that go beyond tax incentives, said an economist.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said its strategic location, infrastructure, talent pool, and pro-business policies are among its key attractions.

This has resulted in the government not having to rely too much on tax incentives to attract foreign investors and businesses.

“Having said that, the type of the incoming investments have to be well diversified. In the best possible way, the government has to avoid over-concentration in sectors because this leaves the country vulnerable to a sudden change in the investment waves,” he told Bernama.

Yesterday, AWS announced a US$6.2 billion (RM29.2 billion) investment in Malaysia as part of its long-term commitment through to 2038.

This investment accompanies the launch of its AWS Asia Pacific (Malaysia) Region, providing developers, start-ups, entrepreneurs, and enterprises in Malaysia with greater options to run applications and serve end users from local AWS data centres.

The construction and operation of the new AWS Region is estimated to add approximately US$12.1 billion (RM57.3 billion) to Malaysia’s gross domestic product and will support an annual average of more than 3,500 full-time jobs through to 2038.

Today, Prime Minister Datuk Seri Anwar Ibrahim said that as part of this new relationship, AWS has signed a cloud framework agreement with the government to boost cloud adoption within the public sector.

Afzanizam added that the proliferation of data centres suggested that Malaysia could create a niche technology space and the country has already established its footprint in the semiconductor industries.

“There has been a move to uplift skillsets by promoting integrated circuit design. On that note, Malaysia has the potential to be Asia’s data centre hub, given its land mass and infrastructures,” he said.

Meanwhile, Malaysian University of Science and Technology’s economics professor Geoffrey Williams said Malaysia has the space to host more data centres; the real issue is to ensure there were spillovers to the local economy.

“Data centres are largely automated and will not create many long-term jobs. The profits will be repatriated by the foreign owners so the benefits may not stay here,” he said.

On concerns about data centres’ high usage of water and electricity, which are cheaply available in Malaysia, Afzanizam said this should be viewed from a holistic approach with the country’s green economy transition.

“This means rationalising electricity subsidies and promoting renewable energy. Perhaps, carbon trading and carbon tax are policy options that can be leveraged to have a win-win solution.

“I am sure data centre operators are well aware of this development,” he said, adding that there is common ground between the government and data centre operators.

Similarly, Williams said recent the foreign direct investment inflows have been mainly in the technology sector and these require specific resources.

The National Energy Transition Roadmap will raise renewable energy generation and because renewable energy is cheaper, this will help foreign companies to use low-carbon electricity which they cannot get at home.

“So they may be environmentally sustainable if they use renewable energy but this will put pressure on local resources which could raise costs for local communities. In that sense, they may not be socially sustainable,” he said.

Source: Bernama

Amazon Web Services investment underscores Malaysia’s many attractive offerings


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The long-term investment made by Amazon Web Services (AWS), a subsidiary of Amazon.com Inc, shows investors’ confidence in the stability and policy of the MADANI Economy, said Prime Minister Datuk Seri Anwar Ibrahim

Anwar, via his X social media account, welcomed AWS to Malaysia and said “we are excited about the potential of this new investment and the potential for innovation resulting from tech transfer and learnings.”

Yesterday, AWS announced that it has launched the AWS Asia Pacific (Malaysia) Region with plans to invest about US$6.2 billion (about RM29.2 billion) in Malaysia through 2038.

The company said developers, startups, entrepreneurs and enterprises, as well as government, education, and non-profit organisations, will have greater choices for running their applications and serving end users from AWS data centres located in Malaysia.

Anwar, who is also the finance minister, said AWS’s investment is among the largest investments made by global technology companies in Malaysia.

“This follows a number of other recent investments announced since December 2023 by global technology leaders such as NVIDIA, Google, Microsoft, Infineon and many more. These investments recognise the achievements made by the MADANI government to create and curate an attractive, open and transparent investment environment,“ he added.

Furthermore, Anwar said as part of this new relationship, AWS has signed a Cloud Framework Agreement with the government to boost cloud adoption within the public sector.

Through the announcement by AWS, he said the global cloud technology company would invest to build physical data centres in Malaysia as the country becomes one of Amazon’s trusted 34 launched regions across its global infrastructure map.

“Over 3,500 Malaysian jobs will be directly created from these new data centres. These jobs, including construction, facility, maintenance, engineering, telecommunications and others within our broader economy, will be part of the high value AWS supply chain,“ he added.

Source: Bernama

AWS investment in Malaysia shows confidence in MADANI Economy – PM Anwar


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President of the Sabah China Chamber of Commerce (SCCC), Datuk Frankie Liew, pointed out that it is now the best time for China businessmen to invest in Sabah due to favorable timing, geographic advantages and human factors.

He said this is specially under the current protectionist and trade-war attitudes of Western countries, global free trade is increasingly narrowing. Malaysia, Sabah and China need to establish closer relationships to enhance their economic and food security through diplomatic and trade networks and supply chains.

Liew stated this on Friday at a trade and economic seminar in Yanbian Korean Autonomous Prefecture, Jilin Province, with Yanbian Prefecture’s enterprises, SCCC and the Sabah Economic Advisory Council.

He expressed great honor for being able to once again receive the endorsement of Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe to lead the SCCC and represent the business community of Sabah in this official delegation.

“We believe that this visit will not only facilitate direct connections with strong and sincere political and business enterprises but also precisely align with potential projects and industries. We hope to learn from the local leaders and with their guidance and advice, ensure a fruitful and beneficial trip. China, with its vast territory and rich resources, complete industrial and supply chains, ample capital, high-level research, and excellent talent, is currently one of the global economic engines, a leader in Southeast Asia, and a partner we look forward to learning from and collaborating with,” he pointed out.

He noted that since China’s rise, it has been the largest trading partner for Southeast Asia, including Malaysia and Sabah. This year marks the 50th anniversary of diplomatic relations between Malaysia and China, a milestone for further deepening and broadening overall trade cooperation.

He emphasized that the current Malaysian unity government led by Prime Minister Datuk Seri Anwar and the Sabah People’s Alliance (GRS) government led by Chief Minister Datuk Seri Hajiji Noor uphold a neutral “pro-China” stance, resolutely defending friendly and partnership relations with China despite pressures and temptations from Western powers.

“Our advantage lies in our multilingual and multicultural background, relatively mature educational levels, and good interactions and diplomatic relations with ASEAN and Western countries. Sabah is also a gateway to the nearly two billion population market of China and ASEAN. Sabah has a predominantly small and medium-sized economic system, with major sectors in services, tourism, oil palm cultivation, and mining of oil and natural gas. Recently, under the new government and with the strong promotion by Hajiji and Phoong, Sabah is rapidly industrializing, attracting substantial investment and technology from China and South Korea, making us optimistic about future development. Additionally, Sabah has significant development potential in agriculture, fisheries, food industry, new energy, and infrastructure. We are also an important base for bird’s nest production, with abundant herbal resources, a summer-like climate, ample rainfall, and no major natural disasters.

“We believe there are many points of intersection and complementary advantages. Currently, electric vehicles are not yet widespread in Sabah. Leveraging ASEAN and regional free trade advantages, we hope to establish bases or centers for new energy vehicles in Sabah to serve as a hub for the ASEAN region.”

Liew also mentioned that although SCCC’s core service is to promote investment and trade between Sabah and China, it also strengthens its advantages by maintaining close ties with ASEAN countries, including Indonesia, the Philippines and Brunei, to form partnerships and share resources and information. With these conditions, we can not only facilitate investment from Chinese enterprises and investors into Sabah but also assist in entering the ASEAN market, helping sincere and capable enterprises maximize their benefits.

SCCC will actively participate in domestic and international conferences and exhibitions to showcase Sabah’s advantages and potential, connect with international business networks, and achieve mutual benefits and prosperity.

Liew announced that the Sabah government will hold the first Sabah-China Expo and Sabah-China Business Summit from November 22 to 24 at the Sabah International Convention Centre (SICC) in Kota Kinabalu.

SCCCis honored to be a co-organizer and will invite representatives from various provinces and cities in China to participate and discuss future business opportunities in Sabah, known as the “Land Below the Wind.”

Liew emphasized that they will continue to fully cooperate with the policies and directions of the Malaysian and Sabah governments, promote investment and recruitment, and assist Chinese enterprises in establishing technology, production capacity, and resources in Sabah to become a crucial link in the global industrial and supply chains, bringing greater economic benefits and a better life to both regions.

“Many people may have heard of Malaysia and know that China and Malaysia have been close partners for 50 years, but many are not very familiar with our small Southeast Asian country and mistakenly think that Kuala Lumpur is the capital of Malaysia and that all matters can be handled through Kuala Lumpur.

“In fact, Malaysia is a federal country consisting of Peninsular Malaysia, Sabah and Sarawak, geographically divided into West Malaysia (the Malay Peninsula) and East Malaysia (Sabah and Sarawak), separated by the South China Sea. It takes nearly three hours to fly from Kota Kinabalu, the capital of Sabah, to Kuala Lumpur in West Malaysia.

“Due to this geographical separation, valuable information between China and Sabah is often delayed or not fully communicated, causing missed opportunities and suboptimal investment cooperation. Under the Malaysia Agreement 1963 (MA63), the Sabah government has a high degree of autonomy, with many important powers, including land, natural resources and immigration rights, directly managed and approved by the Sabah government. A few years ago, the Malaysian and Sabah new governments were working to restore the equality of the ‘Malaya, Sabah and Sarawak’ partners.

“In 2019, with the encouragement and support of the Sabah government, various industries in Sabah, especially those with ideas and initiatives to promote trade and investment between Sabah and China, were called upon to establish a specialized business organization to represent and safeguard bilateral interests between Sabah and China, and proactively promote and implement trade and investment activities, information and resource interaction, assistance and communication,” he said.

The objectives of the Sabah China Chamber of Commerce are as follows:
Promote economic, trade and other industrial and commercial exchanges and cooperation between Sabah and the People’s Republic of China;
Provide members with information related to bilateral economic, trade and other industrial and commercial activities between Sabah and the People’s Republic of China;
Offer a platform for business information, financial and trade information exchange, including organizing various exhibitions, forums, training activities and investment guidance services, to establish and develop business cooperation;
Jointly safeguard the legitimate rights and interests of members and provide assistance and suggestions for problem-solving when needed;
Promote a healthy business culture and foster a prosperous and harmonious society.

The core members of the Chamber come from various sectors in Sabah including real estate development, plantations, agriculture, tourism and hospitality services, construction sector, building materials, creative design, media, education, e-commerce, and cultural industries.

SCCC has two main wings: the Young Entrepreneurs Committee and the Women Entrepreneurs Committee, bringing together local young talents and female elites, nurturing future successors. The Chamber also has branches in Hubei and liaison offices in Guangzhou, Shengzhou, and other places to assist in promoting cooperation and communication and delivering timely and accurate information.

SCCC has signed a partnership memorandum with Jin Lihua, chairman of Hunchun Huairui Ginseng Bioengineering Co Ltd and has established a liaison office in Jilin Province, with chairman Chen Pengyu appointed as the representative.

Meanwhile, Park Cheol, a researcher from the Yanbian Korean Autonomous Prefecture Foreign Affairs Office, mentioned that the visit by SCCC will enhance understanding and relationships, and contribute to industry exchanges and business opportunities in Yanbian Korean Autonomous Prefecture.

SCCC deputy president Brett Chua invited Yanbian enterprises to participate in the Sabah China Economic Forum and Sabah China Expo to showcase their products.

Meanwhile, Datuk Thomas Logijin, the permanent secretary of the Industrial Development and Entrepreneurship Ministry, visited Hunchun City to observe the production process of Huairui Ginseng Bioengineering Co Ltd.

He welcomed Huairui Ginseng Bioengineering to invest and set up factories in Sabah, and promised to provide all necessary assistance, including coordination with various departments.

Jin Lihua, chairman of the Jilin Functional Foods Association and Huairui Ginseng Bioengineering Co Ltd, stated that Changbai Mountain in Jilin Province and Heilongjiang, which is connected to Russia, is the source of ginseng. He plans to invest in Sabah and establish contact. He expressed that the visit by the Sabah delegation will deepen understanding of ginseng and encouraged cooperation.

Source: Borneo Post

Now best time for China to invest in Sabah


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Amazon Web Services (AWS) says it has launched the AWS Asia Pacific data centre in Malaysia to help local businesses and organisations run their applications closer to home and serve their users more efficiently.

As part of its long-term commitment, AWS is planning to invest an estimated US$6.2 billion (about RM29.2 billion) in Malaysia through 2038.

The construction and operation of the new AWS data centre is estimated to add anout US$12.1 billion (RM57.3 billion) to Malaysia’s gross domestic product (GDP).

It will also support an average of more than 3,500 full-time equivalent jobs at external businesses annually through 2038, AWS said in a statement today.

These jobs – including construction, facility maintenance, engineering, telecommunications, and others within the country’s broader economy – will be part of the AWS supply chain in Malaysia.  

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the launch of an AWS infrastructure data centre here provides access to new and emerging technology for Malaysian entities and businesses of all sizes, boosting the country’s capabilities for digital innovation.

“This milestone is a significant step towards fulfilling the vision of Malaysia’s New Industrial Master Plan (NIMP) 2030 to build a highly skilled, innovative, prosperous, inclusive, and sustainable economy,” he said in the statement.

“We recognise the transformative power of digitalisation, cloud computing and AI as key drivers in Malaysia’s effort to become a manufacturing and services hub within Asia.  

“As the largest investment made by an international technology company in Malaysia, the AWS infrastructure data centre will help ensure Malaysia remains competitive on the global stage,” he added.

AWS vice president of infrastructure services Prasad Kalyanaraman said the new AWS data centre in Malaysia enables organisations across Asia Pacific to unlock the full potential of the world’s most extensive and reliable cloud.

This will help customers deploy advanced applications with a broad set of AWS technologies like artificial intelligence (AI) and machine learning (ML). 

“Malaysia’s rapidly growing digital economy requires access to secure, resilient, and sustainable cloud infrastructure.

“With today’s launch, AWS is proud to support Malaysia’s digital transformation and help accelerate its role as a regional hub for AI,” he noted.

With the launch of the AWS Asia Pacific (Malaysia) data centre, AWS now has 108 availability zones across 34 geographic regions.

The company has also announced plans to add 18 more availability zones and six additional AWS data centres in Mexico, New Zealand, the Kingdom of Saudi Arabia, Taiwan, Thailand and the AWS European Sovereign Cloud.

AWS data centres are composed of availability zones that place infrastructure in separate and distinct geographic locations.

The AWS Asia Pacific (Malaysia) data centre consists of three availability zones located far enough from each other to support customers’ business continuity, but near enough to provide low latency for high availability applications that use multiple availability zones.

Each availability zone has independent power, cooling, and physical security, and is connected through redundant, ultra-low-latency networks.

AWS customers focused on high availability can design their applications to run in multiple availability zones to achieve even greater fault tolerance.

Source: NST

Amazon launches data centre in Malaysia, part of US$6.2bil investment here


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Chinese battery maker Gotion High-Tech Co Ltd (Gotion) is planning to set up a battery pack assembly plant in Malaysia to boost its presence in Southeast Asia, said its senior vice-president and Asia-Pacific business unit president Dr Qian Cheng.

Speaking to Bernama on the sidelines of the 2nd Asean Battery Technology Conference (ABTC 2024) here on Thursday, he said the project is currently in the discussion stage, but remains tight-lipped about the details.

“The battery cells will come from China. For now, it’s yet to be finalised, so I cannot reveal much,” he said.

The company currently has battery assembly plants in Indonesia and Thailand. Additionally, its first battery cell factory in Asean, located in the Ha Tinh province, Vietnam, is set to begin production in October. 

Gotion also has eight research and development centres around the world, including in Silicon Valley and Singapore.

Qian Cheng said the company is confident about the Asean market, especially with aggressive electrification efforts in the region.

“We are also very interested in setting up cell manufacturing facilities in Southeast Asia. I think now is the time for Asia, especially for the Asean region,” he added.

Held this Wednesday to Friday in Sentosa, the ABTC 2024 is attracting over 320 participants from 16 countries.

The three-day event features discussions on battery safety regulations, cell-to-pack technologies, and recycling strategies across Asean, among others.

The event is hosted by the Singapore Battery Consortium and co-organised by NanoMalaysia Bhd, the Thailand Energy Storage Technology Association, Indonesia’s National Battery Research Institute and National Centre for Sustainable Transportation Technology, and the Electric Vehicle Association of the Philippines.

Source: Bernama

China’s battery maker Gotion High-Tech mulls plant in Malaysia


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Penang’s holistic electrical and electronics (E&E) ecosystem is seen as a huge advantage by multinational corporations (MNCs) when making investment decisions to expand their existing operations in the state.

Chief Minister Chow Kon Yeow said his recent investment and trade mission to the United States on August 4-14 mostly focused on visiting companies that already have operations in Penang as well as some companies that have the potential to invest.

“A lot of these companies have plans to expand their business by constructing new facilities on vacant land at their current sites.

“From our visits there, I gathered that they are satisfied with what Penang has to offer because our ecosystem can support their growth plans,” he told a press conference after officiating the Malaysia MADANI Penang Indian E&E SME Summit 2024 here, today.

He added that Penang, also known as the Silicon Valley of the East, has established a strong foundation for the E&E industry to thrive given its strong talent pool, supportive government, infrastructure and enabling policies.

Nevertheless, Chow said the state would not rest on its laurels and will continue to introduce new initiatives in the coming months to further invigorate our E&E industry ecosystem.

Towards this end, he said the state government is introducing the ‘Penang Silicon Design @ 5km+’ initiative which comprises four major projects, namely the IC Design and Digital Park, Penang Chip
Design Academy, Silicon Research & Incubation Space, and the Penang STEM Talent Blueprint.

“With such efforts in place, we aim to position Penang as a leading hub for semiconductor innovation and design, reinforcing our strategic role in Malaysia’s ambitious goals.

“By advancing our capabilities and fostering a robust ecosystem, we seek to attract global investments, create high-value jobs, and drive technological advancements that will benefit our state and nation,” he said.

Commenting on the one-day event today, Chow said the summit provided a unique opportunity to shape the future of local small and medium enterprises (SMEs), particularly Indian-owned businesses, and served as a catalyst for meaningful change, thereby helping to steer Penang towards greater economic
diversity and technological innovation.

Source: Bernama

Penang’s Holistic E&E Ecosystem Main Factor For Reinvestment By MNCs -Chow


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The launch of the Amazon Web Services (AWS) Asia Pacific (Malaysia) Region will allow local businesses to store and process their data within the country, said AWS Malaysia country manager Pete Murray in an interview with Digital Edge. This will facilitate faster application performance and better user experience can be achieved through reduced latency.

The AWS Region will enable businesses of all sizes to access cloud-based services, which empower them to scale and compete at a global scale, said Murray. AWS also plans to collaborate with local technology partners to develop solutions and services.

The total investment associated with the AWS Region from 2024 to 2038 will be RM29.2 billion. This investment is estimated to contribute RM57.3 billion in gross domestic product during the same period. Additionally, more than 3,500 jobs are expected to be created.

The region consists of three availability zones, which are data centre clusters that have independent power, cooling and physical security that are connected through ultra-low latency networks.

“Large enterprises, critical industry participants [and] regulated industries like financial services, healthcare [and] the public sector are now able to localise the data that they use…. In addition, we’ve also seen this as very exciting for start-ups and digital native community who are able to leverage the lower latency as well as data localisation here in Malaysia but be able to go global,” said Murray.

“One of the key and critical strengths of public cloud technologies is this concept of being able to go global in minutes.”

Industries that will benefit from the AWS Region include telecommunications, data centre operations, non-residential construction, electricity generation and security services for the data centres, which consequentially will have a ripple effect on the country’s broader economy, said Murray.

Murray also reiterated AWS’ commitment to provide training and resources to help local businesses to utilise the technology. Currently, AWS Malaysia has trained over 100,000 individuals in cloud skills.

The company will also take measures to reduce energy consumption and carbon emissions. AWS also aims to power their operations with 100% renewable energy by 2025 and achieve net-zero carbon emissions across its operations by 2040.

“AWS has multiple initiatives to reduce the carbon impact of the concrete required in the construction of data centres. Our new design standards require concrete that has 20% reduction of embodied carbon versus standard concrete in our US data centres. We expect to expand this requirement globally,” said Murray.

Source: The Edge Malaysia

AWS Region: Boosting local data storage and reducing latency for businesses


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