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Selangor has set up a 0.6 hectare semiconductor intergrated circuit (IC) design park here as part of Malaysia’s plans to move up the value chain in the semiconductor industry and “Made by Malaysia” ambitions.

“We are proud to officially launch the Malaysia Semiconductor IC Design Park, three months after its initial announcement at the KL20 Summit in April. This remarkable progress within such a short time frame highlights the swift execution and unwavering commitment of all stakeholders involved,” Selangor Information Technology & Digital Economy Corporation (Sidec) CEO Yong Kai Ping.

The Malaysia Semiconductor IC Design Park, set up in collaboration with the federal government, international semiconductor firms, and venture capitalists, aims to position Malaysia as a potential powerhouse in the global IC design industry.

The strategic initiative is designed to leverage Malaysia’s technological capabilities and resources, fostering innovation and advancing the country’s reputation in high-tech manufacturing and design.

The park site was meticulously chosen after an extensive evaluation process among the locations in Klang Valley.

The process considered key factors essential for semiconductor companies, such as size, power capacity, building status, office fittings, potential for future expansion, and public transport accessibility.

The park is designed to house more than 400 IC design engineers from five local, international, and JV IC design companies.

It includes anchor tenants Maistorage, Skyechip, Weeroc, AppAsia ChipsBank, SensoremTek Sdn Bhd and supported by ecosystem partners such as BlueChip VC, ARM Holdings, Cadence Design System, Synopsys, Siemens EDA and Keysight and Shenzhen Semiconductor Association.

Economy Minister Rafizi Ramli who was present at the launch, said the country needs to focus on developing its own semiconductor design capabilities rather than just relying on imported chips.

He outlined the federal government’s strategic direction to enhance the entire semiconductor ecosystem, covering both upstream and downstream sectors, with a particular emphasis on original design manufacturers (ODM).

“The country is currently receiving significant investment into data centres, but data centres also require ODM. Therefore, the government is looking at the entire ecosystem to complete it.”

“As this ecosystem takes place, data centers in Malaysia will begin to consider “Made by Malaysia” chips. That is the consideration the federal government is looking for,” he said at the launch.

Selangor Menteri Besar Datuk Seri Amirudin Shari said that Selangor does not aim to be a bit-part player in the semiconductor space, but intends to see semiconductors of the future with the label “Made in Malaysia, Designed in Selangor”.

“This should be our aim. This is our rallying call. This is crucial if we want to make Selangor Malaysia’s first 500 billion ringgit economy in the coming three years,” he said.

“The primary goal of the park is to promote original design manufacturing, encouraging local involvement in product design, prototyping, and production.”

“This project is not just about infrastructure; it is about creating opportunities and driving growth,” he added.

The park’s promoters are actively recruiting skilled candidates with degrees in electrical & electronics engineering, mechanical engineering, mechatronics, and computer science, offering highly competitive salaries.

Entry-level positions start between RM5,000 and RM6,000 for fresh graduates, while individuals with a master’s degree or extensive industry experience can earn up to RM7,000.

Source: NST

Selangor launches 0.6ha chip design park as part of “Made by Malaysia” ambitions

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The East Coast Economic Region Development Council (ECERDC) is poised to exceed its ambitious investment targets for the year, with officials projecting RM15 billion in realised investments by December 2024.

Speaking at Bernama TV’s talk show “The Nation: ECER – Closer Than You Think”, ECER development council chief operating officer Datuk Ragu Sampasivam said it had surpassed its initial RM10 billion target to date.

“We have key performance indicators [KPIs] every year, and two of our major KPIs are to commit and realise investments. We have surpassed our earlier target but we are not resting on our laurels.

“We are also coming up with plans and programmes that could help us reach our vision extending to 2030, under the ECER Master Plan (EMP) 3.0 and increase investment inflows into the East Coast,” he said.

Ragu said with these plans, the ECERDC is set to bolster its economic development and attract further investments, paving the way for sustained growth in the coming years.

Meanwhile, on the available specific investment opportunities within the ECER, he said the economic corridor is opening its doors to investors across multiple sectors, including industrial development, agriculture, infrastructure, tourism and sustainable development.

“Key industrial investments are centred around thematic parks, such as the Pekan Automotive Park, which hosts renowned brands like Mercedes. The Kerteh Biopolymer Park also stands out, focusing on downstream chemical products, benefitting from its strategic location near the Kerteh Integrated Petrochemical Complex operated by Petroliam Nasional Bhd.

“Tourism is another major focus, with new infrastructure like the East Coast Rail Line and the Central Spine Road, which is set to boost the region’s accessibility by 2026,” he added.

Ragu said the ECERDC is developing recreational vehicle (RV) parks to attract RV tourists, offering scenic routes from beaches to the Taman Negara National Park, which spans Kelantan, Terengganu, and Pahang.

Agriculture is another investment frontier, with the corridor positioning itself as the nation’s food basket. The recent Integrated Production and Resource (IPR) programmes also highlighted opportunities in food security and agricultural projects, he said.

“Additionally, the ECER is exploring carbon capture initiatives aimed at supporting hard-to-abate industries, emphasising sustainability,” he added.

Source: Bernama

ECERDC surpasses RM10 bil investment milestone, eyes RM15 bil by year-end

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CIMB Securities Sdn Bhd expects the launch of the Malaysian Semiconductor IC Design Park (MSICP) in Selangor to be a positive catalyst for boosting the Malaysian integrated circuit (IC), or chip, design ecosystem.

CIMB Securities in its note today said it is a positive catalyst towards Malaysia meetings its goals of creating 10 Malaysian companies in design and advanced packaging with annual revenue between RM1 billion to US$1 billion, and 100 companies with annual revenue

of at least RM1 billion.

“Overall, we view the government’s initiative to capitalise on Malaysia’s strategic position as a neutral destination in the global semiconductor supply chain, amid ongoing trade tensions between the US and China, as a timely move to capture potential trade diversions,” CIMB Securities said.

The MSICP was officially launched yesterday at the Puchong

Financial Corporate Centre (PFCC).

The park’s objective is to facilitate the transition from a ‘Made in Malaysia’ to a ‘Made by Malaysia’ initiative, with a focus on high-value front-end IC design. Currently, Malaysia holds a 13 per cent global market share in the backend semiconductor chip assembly and test, and MSICP aims to elevate this position.

“The ongoing trade war between the US and China has created opportunities and reduced the entry barriers for smaller IC design companies to compete with major fabless players due to trade restrictions.”Hence, we see the government’s decision to promote IC design as a shot in the arm for domestic IC design players,” it said in a note today.

To recap, the government is allocating at least RM25 billion (US$5.3 billion) over the next five to ten years in financial support to cultivate local IC design and advanced packaging champions in its efforts to move up the value chain.

The MSICP was developed through a global collaboration between the federal and stategovernments, international semiconductor companies, and venture capitalists.

Overall, CIMB maintained an “Overweight” rating on the technology sector as it believes the sector is in the midst of a new upcycle with a potential valuation re-rating.

This is based on improving earnings visibility led by the proliferation of artificial intelligence (AI), acceleration in supply chain diversification, and RM25 billion fiscal injections by the government in the form of National Semiconductor Strategy.

The firm has picked Inari Amertron Bhd and Malaysian Pacific Industries Bhd (MPI) as its preferred stocks in the sector.

Source: NST

Selangor semiconductor chip design park a positive catalyst for boosting ecosystem – analyst

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Cyberjaya has been identified as the next location for the expansion of the Malaysia Semiconductor IC Design Park, said Selangor Information Technology and Digital Economy Corporation (Sidec) chief executive officer Yong Kai Ping.

“I’m happy to announce that we are currently exploring our ‘Park 2 @ Cyberjaya’. We hope that Cyberview will give us an advanced unit with a good ecosystem that will be able to house more engineers over here. That is our plan,” said Yong.

The newly-launched IC design park is located in Puchong.

According to Selangor Menteri Besar Datuk Seri Amirudin Shari, Puchong was chosen due to its proximity to the Greater Klang Valley and its connectivity to KL International Airport, the soon-to-be-expanded Subang Airport, and its location about 30 minutes from Port Klang.

Consistent and reliable power, potential for future expansion, and ease of public transport accessibility were key factors in selecting Puchong.

For nearly three decades, Putrajaya has attempted to position Cyberjaya in Selangor as its own “Silicon Valley” as part of the Multimedia Super Corridor (MSC) special economic zone and business district.

In April, during the KL20 Summit, Economic Minister Rafizi Ramli announced that the government would establish a new Startup Hub in the heart of the capital, around KL Sentral and Bangsar South.

The hub is part of the Innovation Belt, which aims to gather ecosystem players in geographical clusters, creating a critical mass of startups, talent, investors, corporations, and academia.

Startup founders located around KL Sentral and Bangsar South previously told Malay Mail that public transport accessibility and proximity to the KL city centre are why the area is best suited for their businesses instead of Cyberjaya.

“We hope to achieve what our prime minister has set up in the National Semiconductor Strategy, Malaysia wants to build 10 unicorn IC companies, I believe we can contribute 50 per cent of that from our IC design park,” Yong said.

Source: Malay Mail

Sidec CEO: Cyberjaya identified as the next location for IC design park

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Selangor Menteri Besar Datuk Seri Amirudin Shari today said that the integrated circuit (IC) design park is not meant to compete with Penang’s semiconductor economy.

“Some of you may be wondering and asking the question: Why is Selangor attempting to compete in the semiconductor space?

“Make no mistake, it is a known fact that other states in Malaysia like Penang have had more than half-a-century headstart in the manufacturing of semiconductors. At this juncture, we don’t intend to compete because we do not have all our chips in one basket.

“Selangor’s economy is diverse, with a large share of services being the heartbeat of not only Selangor’s but Malaysia’s economy. But that is not to say that by starting small, we want to remain forever small,” he said in his speech during the launch of the Malaysia Semiconductor IC Design Park: Selangor Hub, here.

Former Penang Chief Minister Lim Guan previously criticised the Penang government for losing the opportunity to host the IC design park to Selangor which led to the state losing investment opportunities.

However, Penang Chief Minister Chow Kon Yeow said that high-tech companies that have shown an interest in Selangor’s IC design park are also in discussions to invest in Penang.

Amirudin said that the state government is taking advantage of the technological battles between the US and China by venturing into this industry.

“These microchips aren’t solely used in our mobile phones. There will soon be thousands of these chips in each vehicle, especially new automotive products using high-end ADAS systems and operating using electric power instead of fossil fuels.

“Generative AI is the preeminent trend of our times, and we haven’t even begun diving into the potential of quantum computing and the clean energy sector as the world unites around building a more resilient planet for our younger generation.

“On the other hand, I believe the battle between the two global giants, the US and China, will not only be about who has more military muscle, but who has a bigger role and intellectual property in the digital world. It will be a technological battle. And semiconductors will be the heartbeat of the global economy moving forward,” he said.

The Malaysia Semiconductor IC Design Park: Selangor Hub, which is the biggest in the Southeast Asia region, spanning 60,000 square feet and located in PFCC Puchong, was officially launched today.

The project is expected to bring in economic returns of RM500 million to RM1 billion.

Source: Malay Mail

Selangor MB: New IC design park not competing with Penang, will diversify economy

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The government will announce guidelines for data centre power usage effectiveness (PUE) and water usage effectiveness (WUE) by the third quarter of the year to boost investments.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the guidelines would ensure data centres built in Malaysia meet the minimum sustainability requirements to achieve net-zero emissions by 2050.

“As data centres consume a lot of power and water, we want to ensure that the data centres built here (in Malaysia) meet the minimum requirements set by global institutions.

“SIRIM and the Department of Standards Malaysia are in the midst of finalising (the guidelines), and we will announce them by the third quarter this year,” he told reporters after the groundbreaking ceremony for Vantage Data Centers’ second campus (KUL2) here today.

Tengku Zafrul said the Ministry of Investment, Trade and Industry Ministry (MITI) will work closely with the Digital Ministry and Malaysia Digital Economy Corporation (MDEC) to incorporate the improvements into the data centre ecosystem.

Meanwhile, Digital Minister Gobind Singh Deo, who was also present at the groundbreaking ceremony, said the two main challenges for data centre investments are power and water.

He said that the guidelines being developed will ensure that the country has a sufficient and sustainable supply of both resources for the next five to ten years to attract more investments.

Gobind said the Digital Ministry and MITI are working together to address concerns about sufficient water and electricity supply due to significant demand from industry players.

“We need to push ahead to ensure we can develop Malaysia as the hub for data centres in this region, particularly as we move towards the country’s ASEAN 2025 chairmanship.

“We want to project Malaysia as a country with clear policies that are attractive not just to data centres but all investments in that ecosystem as well,” he said.

Vantage’s KUL2 is located adjacent to its existing campus in Cyberjaya. It will have 10 facilities across 256,000 square metres.

The US$3 billion KUL2 data centre campus will deliver 256MW of information technology (IT) capacity to meet the growing demand for hyperscale data centre services.

Source: Bernama

Guidelines to help boost data centre investments by 3Q – Tengku Zafrul

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Malaysia is making significant strides in developing its own semiconductor design capabilities, reducing reliance on imported chips.

Economy Minister Rafizi Ramli highlighted the federal government’s strategic initiative to bolster the entire semiconductor ecosystem. The plan encompasses upstream and downstream sectors, with a particular focus on enhancing the role of original design manufacturers (ODM).

“The chips’ data racks require ODM, so the federal government is looking at the overall ecosystem to complete it. We are going to have the federal agencies go down and work directly with the key players,” Rafizi told reporters at the launch of Malaysia Semiconductor IC Design Park today.

Aiming to transition from “Made in Malaysia” to “Made by Malaysia”, Malaysia Semiconductor IC Design Park, in partnership with the federal government, international semiconductor companies and venture capitalists, seeks to establish Malaysia as a formidable player in the global IC (integrated circuit) design industry.

Additionally, the launch of Malaysian Semiconductor IC Design Park sets the stage for the country to become a high-tech semiconductor hub, as this achievement is a notable success of the KL20 Initiative announced in April.

Among those who attended the launch at Puchong Financial Corporate Centre were Selangor Menteri Besar Datuk Seri Amirudin Shari and Selangor exco for investment, trade and mobility Ng Sze Han.

Rafizi expressed Malaysia’s ambition to become a significant force in the global IC design sector.

“This strategic initiative is intended to capitalise on Malaysia’s technological strengths and resources, fostering innovation and enhancing the nation’s standing in high-tech manufacturing and design,“ he said in his speech.

No single nation or region could claim complete control over the entire semiconductor supply chain, as no country possesses expertise in every segment of the value chain, Rafizi said.

“For example, the equipment, materials, electronic design automation, and integrated device manufacturer sectors are divided among the United States, Europe and other parts of the world. Meanwhile, China and Taiwan hold significant shares in fabless, foundries, and outsourced semiconductor assembly and test services.”

Rafizi said this presents an opportunity for Malaysia as it delves into different segments of the value chain, such as IC design, advanced packaging, and advanced equipment.

“A globally dispersed value chain offers a genuine opportunity for established semiconductor ecosystems like Malaysia to compete, as we are not starting from scratch and are not solely competing with mature ecosystems dominating the space,“ he added.

Amirudin highlighted the critical role semiconductors will play in the future global economy.

“I believe the contest between the two global giants, the United States and China, will not only be about military prowess but also about intellectual property and influence in the digital realm. It will be a technological battle.

“In Selangor, we must prepare for all eventualities and enhance our talent pool, nurturing experts in IC design,“ he said.

Selangor Information Technology and Digital Economy Corporation (Sidec) CEO Yong Kai Ping said Malaysia Semiconductor IC Design Park is actively recruiting skilled candidates with degrees in electrical and electronics engineering, mechanical engineering, mechatronics, and computer science and is offering highly competitive salaries.

“Entry-level positions start between RM5,000 and RM6,000 for fresh graduates, while individuals with a master’s degree or extensive industry experience can earn up to RM7,000,” he added.

Furthermore, Sidec is assisting Malaysian and international IC companies in recruiting experienced engineers with four to eight years of experience. These engineers will play a pivotal role in leading the expansion of these companies within Selangor IC Design Park.

Source: The Sun

Rafizi: Malaysia making big strides in enhancing semiconductor design capabilities

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The strengthening of the ringgit reflects the fundamentals of the country’s economy and policies, said Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

Despite tough policy implementation decisions, confidence has grown among both foreign and local investors.

“We look at the capital market and stock market, showing that investors are confident about the prospects of Malaysia.

“Additionally, the first quarter gross domestic product (GDP) growth and the second quarter advanced estimate of about 5.8 per cent. All these are the basis of the ringgit strengthening,” he said when asked about the ringgit’s performance.

Tengku Zafrul was speaking to the press after the groundbreaking ceremony of Vantage Data Centers’ second campus today. Also present was Digital Minister Gobind Singh Deo.

At 8am, the ringgit traded slightly higher at 4.4200/4300 against the US dollar, compared to Monday’s close of 4.4240/4305.

Economists noted that the ringgit has made impressive gains this year, appreciating 4.1 per cent against the US dollar.

The minister is also optimistic about achieving this year’s GDP growth target of four to five per cent, crediting the government’s persistent efforts.

“We have seen trade increase by 8.4 per cent in the first six months of this year, with investments up by 13 per cent. If we can sustain these (trends), we should be able to meet our GDP growth target of four to five per cent this year,” he said.

However, Tengku Zafrul acknowledged that the ringgit’s gains are partly due to a weakening US dollar, following a weak employment report and the prospect of US rate cuts.

Source: Bernama

Tough policy decisions boost investors’ confidence — Minister

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Selangor’s newly-opened integrated circuit (IC) design park in Puchong is offering fresh engineering graduates salaries matching those in its neighbours Singapore and Vietnam, according to the Selangor Information Technology and Digital Economy Corp (Sidec) chief executive officer Yong Kai Ping.

The state is offering undergraduate engineers salaries ranging from RM5,000 to RM6,000, while master’s degree holders can expect to earn RM7,000, as it aims to secure the best talents for the local semiconductor industry.

“Malaysia and Southeast Asia are lacking talent [in the IC design] compared to China, Taiwan and Korea. So, we must offer salaries that match those in Singapore, otherwise, our top talent will [leave] for our neighbours or even to Vietnam,” Yong spoke to The Edge after attending the groundbreaking opening of IC design park in Puchong Financial Corp Centre (PFCC) on Tuesday.

Puchong IC design park, which is set to house over 400 engineers, has so far received 3,300 resumes spanning from junior to senior-level engineers. It is actively recruiting skilled candidates with degrees in electrical and electronics (E&E) engineering, mechanical engineering, mechatronics, and computer sciences.

At the same time, Sidec is also assisting Malaysian and international IC companies in recruiting experienced engineers with four to eight years of experience.

“These engineers will play a pivotal role in leading the expansion of these companies within the Selangor IC design park,” Yong said.

The IC design park in Puchong currently comprise global semiconductor tenants including Maistorage, Skyechip, Weeroc, AppAsia ChipsBank, SensoremTek Sdn Bhd, with several ecosystem partners such as BlueChip VC, ARM Holdings, Cadence Design System, Synopsys, Siemens EDA and Keysight and Shenzhen Semiconductor Association.

Source: The Edge Malaysia

Selangor’s semiconductor park offers fresh engineers on-par salary with Singapore, Vietnam — CEO

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Sabah is ready to transform into a hub for technological advancement by encouraging innovation and the integration of technology, said chief minister Datuk Seri Hajiji Noor.

He said that the government intends to create an ecosystem that supports the growth of small and medium enterprises (SMEs), promotes digital transformation, and foster a culture of innovation.

“The state government’s commitment to economic growth is unwavering and we are also implementing an open-door policy for investors, while exploring new economic resources including the Blue Economy which will bring a new dimension to Sabah’s economy.

“Our focus now is to create a conducive environment for business development, attract domestic and foreign investments, and ensure our workforce is equipped with the skills needed to meet future demands,” said Hajiji.

He was speaking at the opening ceremony of Malaysian Technology Development Corporation’s Road to Growth (R2G) Sabah edition today.

Hajiji said that in the 12th Malaysia Plan and the SMJ Development Direction Plan, Science, Technology and Innovation (STI) have been identified as one of the important catalysts driving socio-economic development.

He expressed hope that the R2G 2024-Sabah programme can help produce more innovative researchers and entrepreneurs.

He said the state government welcomes the move by the Ministry of Science, Technology and Innovation (Mosti) in introducing the Local R&D Products and Services Utilisation Programme (MySTI), an initiative that will benefit entrepreneurs, universities, research institutions and the government in utilising local innovation and R&D products.

Hajiji said the initiative will also stimulate the growth of local industries, especially in Sabah in the field of technology, which is among the new economic resources that have been identified.

“I want all these opportunities to be taken and utilised as best as possible by universities, research institutions and entrepreneurs in this state to register and obtain the MySTI logo marking,” he said.

Hajiji emphasised the importance of adapting to the changing economic landscape and called on universities, research institutions, and entrepreneurs to take advantage of these new opportunities.

He also hoped that the MTDC R2G programme will empower the local workforce with necessary skills for a technology-based economy and drive innovation across various industries in Sabah.

Source: Malay Mail

Hajiji: Sabah set to become technology hub as it targets tech-driven economy

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When SK Group, South Korea’s second largest conglomerate, was looking to expand its copper foil productions overseas, Kota Kinabalu (KK), known more for its sunsets and islands, was not the first place that came to mind.

That was where Malaysian Investment Development Authority (Mida) came in, introducing the group to Sabah’s government who jumped at the opportunity.

In May last year SK Group’s SK Nexilis, the world’s largest copper foil maker, started production at its first overseas factory at the Kota Kinabalu Industrial Park, the biggest copper foil factory in the world.

The factory is capable of producing up to 57,000 tonnes of copper foil annually.

“We have started part production which will be sent to clients and will then be audited. We expect to be fully operational by September or October,” SK Nexilis’s strategy and planning manager Boo Jae-cheol told Malay Mail in a recent interview.

Last October, the Fortune 500 company exported its first shipment of 80 tonnes with an export value of RM1.9 million from Sabah to North America.

At its full capacity, the plant will contribute some RM3 billion to the state’s gross domestic product (GDP).

Its second overseas plant will be in Stalowa Wola, Poland which will have similar or slightly lower capacity.

The company also boasts the world’s longest, thinnest and widest copper foil, as thin as four micrometres, which can be described as one-fifth the thickness of clear food wrap.

SK Nexilis’s copper foil will be used exclusively for electric vehicles globally.

Currently the group has a 22 per cent market share in copper foil, with global demand predicted to grow exponentially with the use of electric vehicles.

Investment in Kota Kinabalu

The factory is set on 100 acres (roughly the size of 75 football fields) in KKIP next to China’s Kibing solar plant which may help with its green energy plans.

“One of the main attractions for us to invest in KK was the readily available land. It was a good size, and already cleared which saved us time and expenses to clear land for construction,” said Boo.

Other considerations were English-speaking labour, and the favourable terms and conditions such as lower electricity tariffs, and corporate tax exemption.

“But I think the biggest reason is the strong commitment and investor friendly policies of the state government,” said Boo.

The RM2.3 billion plant will almost undoubtedly be the state’s largest power consumer with an estimated 70MW power usage with an up to RM122 million power bill per year which gives the state utility company Sabah Electricity Sdn Bhd a 10 per cent sales increase.

In return, SK Nexilis hired 95 per cent of its 350 strong work force from the Malaysian market, mostly Sabahans, with only key management positions held by South Korean nationals.

“It is imperative that we use a local workforce instead of bringing in Koreans from home. But we have to bridge the cultural and language divide, so we have sent some of the staff to Korea for a cultural exchange and help them understand the company better.

“We also have language classes so they can deal with the headquarters on their own sometimes,” said Boo.

The company is also expected to bring in more investment from Korea such as subsidiaries and complementary industries to help maximise the capacity and efficiency of its raw material processing.

“With the growing demand for copper foil worldwide increasing with the use of EV, we wanted to expand our production, but we needed to do it at lower costs.

“The plant in Sabah will make us more cost-effective while our plant in Poland is also strategically located to reach the European market. That will help us be more competitive in this market,” said Boo.

Source: Malay Mail

Great for business: South Korea’s SK Nexillis says Sabah’s investor-friendly policies, ready land makes it ideal location

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Malaysia’s digital investment soared to RM66.22 billion in the first half of this year (1H 2024), demonstrating robust growth and resilience of the digital economy despite global geopolitical tensions.

Digital Minister Gobind Singh Deo said this was a significant achievement, noting that the amount has already surpassed the full-year digital investment for 2023 which stood at RM46.2 billion.

He attributed the strong upward trajectory to stronger investor confidence and the economy’s forecasted growth of 4.0-5.0 per cent this year.

“This investment inflow created 25,498 jobs in 1H 2024, surpassing the 22,258 tally recorded in 2023. The digital sector continues to be a powerhouse for high-skilled, high-income employment,“ he said in a statement today.

As for digital exports, Gobind said the ministry’s efforts via the Malaysia Digital Economy Corporation’s (MDEC) partnerships and business matching programmes generated export opportunities worth over RM1.93 billion.

These involve 228 companies from 11 countries, namely Indonesia, the Philippines, Cambodia, Türkiye, Spain, Saudi Arabia, Japan, Taiwan, Kenya, Tanzania and the United Kingdom.

This represents an increase of over 43 per cent from the export opportunities worth RM1.35 billion generated in 1H 2023, he said.

Gobind said MDEC’s DEX Connex initiatives in the Philippines and Indonesia as well as business missions have significantly contributed to the export opportunities in the first half of 2024.

“It is worth noting that data centres and cloud companies collectively contributed the lion’s share of digital investment value across all sectors.

“Information Technology (Infotech) and Global Business Services (GBS) companies took the lead in digital job creation, as they race to set up their centres of excellence and high-value GBS operations in Malaysia,“ he said.

He added that 451 tech companies have been awarded the Malaysia Digital (MD) Status in 1H 2024 (2023: 256 companies).

“Of these, 39 per cent are foreign companies contributing to foreign direct investments, while 61 per cent are local companies,“ he said.

Gobind said companies with MD Status are entitled to many incentives, rights and privileges from the government, subject to necessary approvals and compliance with applicable conditions.

The benefits include competitive tax incentives and duty import and sales tax exemption on the importation of multimedia equipment, access to local and foreign knowledge workers, exemption from local ownership requirements, and access to funding facilitation.

Source: Bernama

Malaysia’s digital investment soars to RM66.22b in 1H 2024

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THE first phase of the new data centre campus, jointly developed by Telekom Malaysia Bhd (TM) and Singapore’s Nxera, is expected to be completed in 2026 to add to the high-quality digital infrastructure in Malaysia, says Gobind Singh Deo.

The Digital Minister said he was glad to see TM and Nxera, the regional data centre arm of Singtel’s Digital InfraCo unit, joining forces to embark on the data centre venture.

“This win-win and timely partnership brings together the best connectivity providers of Malaysia and Singapore to develop data centres in Malaysia, starting with a sustainable, hyper-connected AI-ready data centre campus in Johor.

“The first phase capacity of 64 megawatts (MW) is expected to be completed in 2026.

“I am confident that with the joint industry expertise, strong track record and extensive network of subsea cables of both telecommunication companies, this collaboration will be a gamechanger for the industry,” he said before the groundbreaking ceremony in EduCity in Iskandar Puteri, Johor.

Beyond digital connectivity, the government intends to leverage AI technology and harness AI for the good of the Malaysian economy, he said.

Gobind said the new AI-ready data centre campus would serve the next-generation AI application providers and enterprises was a welcomed addition to support Malaysia’s ambition as a hub for AI development and innovation.

“While we welcome data centres to set up in Malaysia, we are also cognisant that data centres require power and water.

“As the data centre industry continues to grow and house greater computing power to meet the needs of the digital economy with the rise of AI, the industry must constantly innovate and adopt new, sustainable technologies that drive energy and water efficiencies,” he said.

Gobind said he was also glad that the TM and Nxera development would feature advanced technologies such as liquid cooling to support high-power density AI workloads and operations efficiently.

Singapore’s senior minister of state for trade and industry Low Yen Ling, who was also present at the event, said the joint venture was another example of the shared economic, cultural and bilateral ties enjoyed by both countries for so long.

“The TM-Nxera data centre will power the needs of our digital economy, support AI advancements and foster value creation.

“This joint venture exemplifies the strong collaboration between Singapore and Malaysia in driving digital innovation.

“Our economies are closely linked and initiatives such as the Johor-Singapore Special Economic Zone (JS-SEZ) will enhance cross-border trade and business.

“Singapore looks forward to building an attractive investment ecosystem together with Malaysia in the JS-SEZ,” she said, adding that the event marked another significant milestone in both countries’ economic partnership.

Located just 16km from Singapore, the data centre campus will enable customers to seamlessly expand their infrastructure from the city state and the rest of the region.

The data centre can be scaled up to 200MW in response to market demand.

The groundbreaking ceremony came a month after TM and Nxera announced their strategic partnership.

Also present were TM group chief executive officer Amar Huzaimi Md Deris, Johor investment, trade, consumer affairs and human resources committee chairman Lee Ting Han and Nxera chairman Kai Nargolwala.

Source: The Star

New AI-ready data campus centre in Iskandar Puteri

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Malaysia is proactive in addressing sustainability issues in the energy-intensive data centre industry, said Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir.

He pointed to measures such as the Large Scale Solar Project (LSS Project) and Corporate Renewable Energy Supply Scheme (CRESS) that should address concerns about the sustainability of data centres in Malaysia.

Akmal said the Ministry of Investment, Trade and Industry is ensuring that all incoming investments, particularly in data centres, adhere to the sustainability commitments.

“Investors entering the country, including data centres, must meet the demands or responsibilities of sustainable development goals or ESG commitments. Still, we must also ensure these commitments are met at the implementation level, not just in policy,” he told reporters after delivering his speech at the Accelerating Sustainable Business Action event today.

Akmal said the government places importance on sustainability, noting the launch of the National Energy Transition Roadmap last year attracted investors.

“The government under the leadership of Prime Minister Datuk Seri Anwar Ibrahim has launched the National Energy Transition Roadmap, which outlines several initiatives towards renewable energy. At the federal level, under Petra (Energy Transition and Water Transformation Ministry), we welcome and follow up on these initiatives by enhancing policies and regulation.”

To facilitate investments, he added, Malaysia needs to make the process of renewable energy agreements easier while ensuring the stability of the existing energy system.

Akmal highlighted the recently completed application process for the fifth LSS project. “The application has closed, and now we are in the process of evaluating which applicants will qualify competitively to open new solar farms.”

At the same time, he said, about two weeks ago, the government announced the establishment of CRESS, which is intended to increase corporate consumers’ access to green electricity by allowing them the opportunity to procure green electricity supply directly from a renewable energy power producer.

“CRESS allows arrangements for companies seeking renewable energy to enter agreements with solar energy providers, where they generate renewable energy and only need to pay a charge to the grid system,” he added.

Source: The Sun

Malaysia proactive on sustainability issues in data centre industry: Deputy minister

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Tasco

It seems that Tasco Bhd (KL:TASCO), which is almost 65% controlled by Japanese logistics giant Nippon Yusen Kabushiki Kaisha (commonly known as NYK), is carving quite a comfortable spot in the annals of The Edge Malaysia Centurion Club Corporate Awards, having taken home the honours in 2019, 2022 and again this year.

The cross-border transportation, warehousing and distribution outfit has bagged the Highest Growth in Profit After Tax (PAT) Over Three Years award in the fourth edition of the Centurion awards, based on its impressive compound annual growth rate (CAGR) of 117% from FY2020 to FY2023.

In its FY2020 ended March 30, Tasco raked in a net profit of RM8.9 million, which jumped 364% to RM41.3 million in FY2021. It then rose by about 58% to RM65.2 million in FY2022 and by 39% to RM90.8 million in FY2023.

As its bottom line grew from strength to strength, Tasco’s return on equity (ROE), which was 9.12% in FY2021, jumped to 13.23% in FY2022 and a further 16.3% in FY2023. This gave it an adjusted ROE, based on Centurion awards methodology, of a respectable 14% over the three years.

The logistics company’s share price, which rose 8.6% from 96.7 sen (adjusted) at end-March 2021 to RM1.05 at end-March 2022, shed 22.7% to 81.2 sen at end-March 2023 before inching up 0.37% to 81.5 sen at end-March this year. The movements translate to an adjusted decline of 4.43% over the three-year period.

With its two substantial shareholders NYK and executive chairman Lee Check Poh (owns 9.89%) controlling almost 75% of the company’s stock and are unlikely to sell any shares, it is no wonder Tasco is thinly traded.

To its credit as well, the company has been regularly paying out dividends, which increased from 0.25 sen in FY2020 to 1.5 sen in FY2021, and further to 2.5 sen in FY2022 and 3.5 sen in FY2023.

FY2023 also marked the second consecutive year Tasco has achieved over RM1 billion in revenue, hitting a record RM1.61 billion, up almost 9% from RM1.48 billion in FY2022.

While many local logistics providers tend to offer a single transportation mode or service, Tasco does not appear to be overly reliant on a particular business segment. It has three main revenue generators: contract logistics, which provides warehousing and haulage services, contributed 34% of FY2023’s revenue or RM545.7 million; air freight forwarding, which provided 30% of FY2023 turnover or RM485.8 million; and ocean freight forwarding, which churned out 18% of FY2023 revenue or RM287.4 million.

This ensures that if any one segment falters, it will not overly impact revenue streams and weigh the company down.

Also in its favour is its reach, as the company is part of the global network of 681 locations under the NYK banner, with more than 27 logistics centres domestically.

On the domestic front, Tasco has an asset base of over 500 prime movers, making it among the largest hauliers in the country, with 300,000 sq m of warhehouse space.

In 2017, Tasco ventured into the cold chain logistics segment, which deals with the safe transport of temperature-sensitive goods and has higher margins of low teens compared with other logistics segments’ single-digit numbers. It invested close to RM216 million to acquire Gold Cold Transport Sdn Bhd and MILS Cold Chain Sdn Bhd. Two years later, Tasco hived off a 30% stake in its cold chain logistics segment held under Tasco Yusen Gold Cold Sdn Bhd to Japan Overseas Infrastructure Investment Corp for Transport and Urban Development for RM125 million.

More recently, after several strategic acquisitions, including a 50:50 acquisition of Hypercold Logistics Sdn Bhd in 2021 in Sabah with a local partner as it expanded into East Malaysia, Tasco Yusen Gold Cold has grown to become one of the largest cold chain logistics providers in Malaysia. The acquisition also made Tasco the largest third-party logistics cold chain warehouse facility operator in Sabah.

At the end of March this year, the cut-off date for the Centurion awards, Tasco’s market capitalisation was only RM652 million. Tasco has been largely trading below the RM1 band since mid-March 2021, making it a penny stock.

Considering its strong parentage — NYK is one of the largest transportation companies in the world, a billion-dollar company with a market capitalisation in excess of US$13 billion (RM60.89 billion) — and the strides it has been making on the local and regional front, Tasco should be under the spotlight.

Source: The Edge Malaysia

Cementing its position as a top-notch logistics company

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Malaysia has emerged as the most important country for businesses in the Association of South-east Asian Nations (Asean) and Greater China looking to venture into over the next three years, according to the UOB Business Outlook Study 2024 released today.

The annual study, now in its fifth year, surveyed more than 4,000 small and medium-sized enterprises (SMEs) and large enterprises across seven markets, including over 500 Malaysian businesses and found them optimistic about the country’s growth prospects.

“The UOB Business Outlook Study indicates that local businesses are gearing up for a period of growth as they are bullish on Malaysia’s economic potential.

“Overseas businesses are looking to expand into Malaysia due to the country’s strong economic fundamentals and attractiveness as a regional business hub,” UOB Malaysia CEO Ng Wei Wei said in a statement accompanying the study.

Ng highlighted several factors contributing to this optimism, including the China+1 strategy, the upcoming Johor-Singapore Special Economic Zone, and the upcycle of the global semiconductor industry.

The survey found that more than seven in 10 Malaysian businesses are positive about the current business environment, with 76 per cent expecting improved business performance this year.

The most optimistic sectors include industrials, oil and gas (90 per cent), and manufacturing and engineering (80 per cent).

Despite the positive outlook, many businesses are still recovering from the economic slowdown and are concerned about inflation and higher operating costs.

The survey also revealed that almost 80 per cent of Malaysian businesses aim to expand overseas to boost profits and enhance their international reputation.

Asean and mainland China were highlighted as the top two markets for expansion, with Indonesia being the most important country for local businesses to venture into, followed by Singapore, Thailand, and Brunei.

The survey emphasised the importance of sustainability, with over eight in 10 local businesses acknowledging its significance in attracting investors.

However, only 39 per cent of these businesses have implemented sustainability practices, with the manufacturing and engineering sector leading the way at 53 per cent.

The UOB survey found that companies are requesting more financial support, such as tax incentives, sustainable financing options, and easier access to funding to encourage better adoption of sustainability.

They are also seeking training programs to reskill employees on sustainability initiatives, which are vital for attracting investment and fostering growth.

Source: Malay Mail

UOB study shows Malaysia is top country for Asean and Greater China businesses

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United States (US) chip-maker Intel is continuing with its Penang expansion plans, which suggests that retrenchment is not on the table as part of its cost-cutting efforts as reported, said Chief Minister Chow Kon Yeow.

“We did not visit Intel during my recent trip to the United States (US) and the state has not been informed of any retrenchment plans.

“We do not know how it will impact Penang but they are building their expansion here now. So we would expect them to recruit rather than retrench staff,“ he told reporters after a few agreements were signed between IJM Perennial Development and Maxis Broadband Sdn Bhd, GlobalComm Telecommunications Sdn Bhd, Hyatt International – Asia Pacific and Galaxy Minyoun Hotel at The Light City here today.

Earlier this month, the foreign media reported that chipmaker Intel had announced plans to slash more than 15 per cent of its workforce under a restructuring plan.

It was also reported that the California-based company will shed about 15,000 jobs as part of efforts to cut costs by US$10 billion in 2025.

Intel reported a revenue of US$12.8 billion in the second quarter of financial year 2024, down one per cent from a year ago and a US$1.6 billion net loss.

On his recent official US visit, Chow said Penang has received affirmation from existing investors that they have plans to continue expanding their operations.

“A majority of the companies we visited comprised existing investors who are thinking of expansion plans,“ he said.

He noted that the mission led by him together with InvestPenang delegates focused on renewing ties and strengthening relationships with American investors in Penang.

The Aug 4-14 mission involved 22 official strategic meetings and site visits to encourage further expansion of their Penang operations and to attract new investments.

The delegation visited MKS Instruments, Brooks Instrument, Lattice Semiconductor, AMD, Synopsys, Efinix, Agilent, Coherent, SambaNova and Western Digital, Centific, Monolithic Power Systems (MPS), Dexcom, Cohu, UST, TTM Technologies, Mattel and potential investors.

Source: Bernama

Intel continuing with Penang expansion plans – Chow

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Malaysia’s target to achieve high-income status is realistic, given its solid growth trajectory, economic stability and strong investor confidence.

Its economic growth will continue to be driven by contributions from key states such as Selangor, Sarawak, Kuala Lumpur, and Penang over the next three to six years, said Juwai IQI global chief economist Shan Saeed.

“Selangor currently contributes 25 per cent to the nation’s gross domestic product (GDP), Sarawak is set to rise strongly and become a major contributor to the economy, while Penang remains as the manufacturing hub,” he told Bernama.

Overall, he expects Malaysia’s GDP growth to be around 4.0-5.0 per cent in the next three to five years, supported by a stronger ringgit, as the local note is expected to range between RM4.10 and RM4.40
versus the US dollar.

“The budget deficit target remains under 3.5 per cent with disciplined fiscal policy,” said Shan.

He opined that growth in information and communication technologies (ICT), oil and gas (O&G), real estate, electrical and electronics (E&E), e-commerce, and logistics sectors will support Malaysia’s bid for high-income status.

Malaysia is already a significant player in the E&E market, exporting to countries like China, the United States, Singapore, Hong Kong, and Japan.

At the same time, the O&G sector continues to be crucial to the nation’s economy, with a strong ecosystem supporting both domestic and regional value chains.

Under the New Industrial Master Plan 2030 (NIMP 2030), the country aims to transform into a high-technology nation by 2030,positioning itself as a dynamic ICT hub in Southeast Asia.

Recently, World Bank Malaysia lead economist, Apurva Sanghi said five Malaysian states, namely Selangor, Sarawak, Penang, Labuan and Kuala Lumpur, have surpassed the 2023 high-income threshold of US$14,005 (US$1=RM4.56).

According to his posting on X, Kuala Lumpur has the highest at US$29,967 gross national income (GNI) per capita, followed by Labuan (US$19,117), Penang (US$16,660), Sarawak (US$16,650) and Selangor (US$14,291).

Meanwhile, states with the lowest GNI per capita are Kelantan (US$3,850), Perlis (US$5,490) and Kedah (US$6,027).

He noted that Malaysia could reach high-income status by 2030, emphasising the need for faster reforms to speed up the transition.

Economy Minister Rafizi Ramli recently said Malaysia could attain high-income nation status from 2027 if the national economy grows 4.0-5.0 per cent every year and the ringgit strengthens to around RM4.20 against the US dollar.

Source: Bernama

Malaysia On Track For High-income Status

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Malaysia and the United Arab Emirates (UAE) have reached an agreement that would improve bilateral trade and investment between the two nations.

The Malaysia-UAE Comprehensive Economic Partnership Agreement (MY-UAE CEPA) is anticipated to be implemented by the end of 2024.

“The MY-UAE CEPA, a comprehensive CEPA, encompasses areas such as trade in goods; trade in services; investment facilitation; digital trade; micro and small medium enterprises; economic cooperation, and others.

“Notably, it introduces Malaysia’s first chapter on Islamic Economy in a CEPA, paving the way for collaboration with UAE in the areas of Halal certification, Islamic finance, and digital,” it adds.

Malaysia’s delegation was led by Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz, while the UAE was represented by His Excellency Dr. Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade.

Tengku Zafrul stated that this agreement represents Malaysia’s first Free Trade Agreement with a country from the Gulf Cooperation Council (GCC).

“Given the robust trade growth and rising industrial linkages between our countries, particularly in the areas of renewable energy, digital economy, and electric mobility,.

“I am confident this CEPA will further strengthen our bilateral trade and investment ties. I look forward to the agreement entering into force by the end of 2024,” he said.

In 2023, the UAE became Malaysia’s second-largest trading partner in the West Asia region, with bilateral trade increasing by 5.4 per cent to US$8.67 billion (RM39.63 billion) compared to the previous year.

Malaysia’s main exports to the UAE included electrical and electronic products, jewellery, palm oil and palm oil-based agricultural products, palm oil-based manufactured products, and processed foods.

On the other hand, major imports consisted of crude petroleum, petroleum products, jewellery, metal manufactures, and chemical products.

In terms of investment, 2023 saw 34 manufacturing projects in Malaysia involving Emirati participation, valued at US$0.4 billion (RM 1.5 billion).

These projects, covering sectors such as machinery and equipment, Halal pharmaceuticals, chemicals and chemical products, and food manufacturing, have created 2,039 jobs in Malaysia.

Dr. Thani mentioned that Malaysia is a long-standing and trusted trade partner, similar to the UAE, as both countries aim to boost their economic prospects through expanded trade and targeted investment.

“As the fourth largest economy in the Southeast Asia region, and with economic growth in 2024 set to outstrip forecasts, Malaysia offers substantial opportunity for our exporters, industrialists, and business leaders, especially in high-growth sectors such as energy, logistics, manufacturing, and financial services.

“I look forward to working together with Tengku Zafrul to secure a swift ratification of the CEPA and to realise long-lasting benefits for us both—and our respective regions,” he added.

Source: NST

Malaysia, UAE to increase bilateral trade and investment

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Malaysia is advancing steadily to emerge as a leading global healthcare destination in 2025, with the success of the healthcare tourism sector chalking up a RM2.25 billion revenue in 2023.

In just a year before the completion of the Malaysia Healthcare Travel Industry Blueprint 2021-2025, the aspiration to fulfil the “Best Malaysia Healthcare Travel Experience” by 2025 can be achieved following a growing number of health tourists making their way to Malaysia.

Malaysia Healthcare Travel Council (MHTC), an agency under the Ministry of Health (MOH), told Bernama that the country recorded 584,468 health tourist arrivals for the first half of 2024 (1H2024).

The agency said, in comparison, Malaysia recorded more than one million health tourist arrivals in 2023, up by a significant 15% from 850,000 in 2022, firmly entrenching the country as a fast-growing medical destination.

MHTC said Indonesia was the highest contributor of health tourists to Malaysia, comprising 70% to 80% of the total number last year.

As a background, the Malaysia Healthcare Travel Industry Blueprint 2021-2025, which, among others, touches on the role of public and private sector stakeholders within the healthcare travel ecosystem, has managed to provide a framework of cohesive end-to-end experience to the health tourists with a high emphasis on the Malaysia healthcare brand.

Among key touchpoints of the blueprint are medical services, teleconsultation, access to information, insurance, accommodation and immigration, which will drive the industry forward and make Malaysia a focal point to showcase the “Best Malaysia Healthcare Travel Experience” by 2025.

The agency said the health tourism industry aims to generate RM2.4 billion in revenue for the whole of this year, and thus far, the sector has generated RM954.90 million in revenue for 1H2024.

MHTC said this is expected to contribute to an economic spillover to other industries to the tune of RM9.6 billion.

The Malaysia External Trade Development Corporation (Matrade) should also be credited as having a role in this journey, based on a recent statement that the agency is actively supporting the international expansion of Malaysia’s healthcare industry via its vast network of global offices, to ensure the industry’s competitiveness and secured future-proof growth.

With 49 offices worldwide, Matrade has connected Malaysian companies, including healthcare firms, with foreign importers through export missions, business match-making programmes, as well as market intelligence reports, all of which have promoted Malaysia’s healthcare tourism industry.

These efforts reflect Malaysia’s commitment to advancing healthcare innovation and excellence, positioning the country as a key hub for global healthcare partnerships and business opportunities, according to Matrade.

Sunway Healthcare Group among key healthcare players

Sunway Healthcare Group (SHG) is among players in Malaysia’s medical tourism sector, receiving a higher number of international patients seeking high-quality and affordable healthcare solutions.

SHG managing director (hospital and healthcare operations) Dr Khoo Chow Huat said the group attracted a substantial number of international patients, with the highest number coming from Indonesia.

International patients in SHG grew by more than 40% in the first half of this year, from the same period in 2023.

“Cultural similarities, comprehensive range of services, high standard of care and lower costs in comparison to neighbouring countries are among advantages that attracted them to seek medical treatment here.

“Some come for a few days for health screenings or simple outpatient consultations. Others may stay one- to three weeks, or even longer, depending on their medical treatments such as surgery, chemotherapy and rehabilitation,” he told Bernama.

Comprehensive patient support services

Khoo said the adoption of advanced technologies and increased awareness of medical tourism led SHG to receive international patients, especially in its flagship quaternary hospital, Sunway Medical Centre (SMC), Sunway City Kuala Lumpur.

Quaternary care is the extension of tertiary care in reference to advanced levels of medicine, which are highly specialised, not widely accessed and usually only offered in a very limited number of national or international centres.

SHG also expanded its footprint to include tertiary hospitals, namely Sunway Medical Centre Velocity, Cheras; and Sunway Medical Centre, Penang. The three hospitals have a combined capacity of over 1,700 beds and more than 400 specialist consultants.

He said SHG invested in its International Patient Centre, which is a one-stop centre that handles everything from translation and visa processing, to billing and appointments, in addition to setting up 10 representative offices in Indonesia to provide support and assistance for medical treatment in Malaysia.

“We have 10 offices located in different regions to help patients in all matters related to the treatment, such as assisting in admission and discharge for patients, booking hotels, as well as medical transfers to Malaysia,” he said.

International patient experience

Yusof Fuad, 61, from Jakarta, has been undergoing hip replacement treatment at SMC since March 2024, after contracting an infection from a previous hip replacement surgery performed seven years ago.

He underwent two major surgeries from March to June earlier this year, and is expected to return for follow-up treatment in August.

“Looking at the costs of the two major surgeries I underwent, I am grateful that they are still covered by insurance because SMC is one of the hospitals that cooperates with international insurance companies, especially in Indonesia.

“Plus, my wife and children have been able to accompany me for over five months in Malaysia, due to the affordable currency exchange rate and the close location,” he said.

Meanwhile, Cynthia Hamdani, 35, from Bandung, Indonesia, has also decided to send her four-year-old daughter to SMC after her daughter experienced digestive issues.

“In Bandung, SMC is well-known, and I learned about it through a friend who received treatment there. She introduced me to a staff member at SMC and began coordinating with them over the phone to facilitate my daughter’s arrangements to seek treatment.

“I chose Malaysia because there are direct flights available, and the cost of treatment is more affordable,” she said.

Sunway Sanctuary

An added incentive is that Sunway Sanctuary, which is Malaysia’s premier senior living community, also provides accommodation for short-term stays for international patients who receive treatment at SMC.

The facility has welcomed residents not only from Malaysia, but Singapore, South Korea, China and Canada as well within its first year of operation since its launch a year ago.

“Located adjacent to SMC, we encourage international patients to stay here post-treatment, so that they will have a peace of mind that their healthcare needs are well taken care of (given the proximity),” Khoo said.

Meanwhile, Sunway Sanctuary general manager Leonard Theng said Sunway Sanctuary has achieved a 30% to 35% occupancy rate within its first year.

He said Singaporeans were a significant segment of the group’s target market, primarily due to the strong value of their currency.

“The facility has about 70 residents at the moment and the group aims to double its number of residents to between 140 and 150 in the coming year,” he said.

A part of pioneering a new era of aged care, Theng hopes Sunway Sanctuary will balance the healthcare and hospitality segments via its offerings for international patients.

Source: Bernama

Malaysia sets sight on emerging as leading healthcare destination by 2025

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Chief Minister Chow Kon Yeow is leading Penang’s investment and trade mission to the United States (US) from Sunday until Aug 14, to renew ties and forge relationships with the corporate headquarters of American investors in Penang.

Penang Chief Minister’s Office said in a statement that the mission organised by InvestPenang, the Penang state investment promotion agency, also aims to encourage the expansion of their Penang sites and attract new investments.

“Additionally, the mission seeks to update American companies on the latest developments and opportunities available in Penang, including information on recent advancements in infrastructure and policy changes, to facilitate investment.

“By enhancing visibility and further promoting Penang as a prime location, the mission also targets potential investors in the electrical and electronics (E&E), semiconductor, equipment, medical devices, integrated circuit (IC) design, digital global business services (DGBS) and digital economy industries,” the statement said on Sunday.

Throughout their visit, Chow and delegates will participate in a series of meetings and site visits to the corporate headquarters of American investors, to showcase the state’s strengths, innovations and commitment to being a resilient and sustainable investment location.

Meanwhile, Chow, who is also the finance, economic development, land and communications state executive councillor, expressed enthusiasm on the investment and trade mission, besides looking forward to strengthening relationships with American investors.

“[I] eagerly anticipate the positive outcomes resulting from this mission,” he added.

According to the statement, during the chief minister’s absence due to this investment and trade mission, Penang’s administrative affairs will continue to operate seamlessly.

Dubbed as the “Silicon Valley of the East”, Penang recorded RM71.9 billion in investment inflows in 2023, the highest in Malaysia, driven by foreign direct investments, which accounted for RM61.7 billion or 85.8% of state’s manufacturing investment inflows.

Source: Bernama

Penang CM leads investment and trade mission to US

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JP Morgan says the Johor-Singapore special economic zone (SEZ) will likely be a multi-year growth story just as how Shenzhen SEZ has developed over the past 45 years.

It also said the Johor-Singapore SEZ provides high-growth sector specific opportunities, outside of property land bank play.

The SEZ is promising given a more conducive regulatory and policy environment with proactive collaboration, the US investment bank added.

The firm expects regulatory harmonisation and tax incentives to pave the way.

“The JS-SEZ has had several working visits by the country officials, and government agencies have been involved in discussions and feedback sessions with private-sector representatives, with proactive follow-up actions.

“If the JS-SEZ moves ahead, it is likely to be a multi-year growth story with refinements along the way, just as how Shenzhen SEZ has developed over the past 45 years,” it said.

JP Morgan noted that the development of the SEZ aligned with its increasingly constructive outlook in Malaysia.

“The positive response to the Johor-Singapore SEZ initiative is evident in rising property share prices, with the KL Property index overall up 65 per cent since July 2023 and companies with large land-banks in Johor having seen two to four times share price increases,” it said in a note.

The firm highlighted five sectors that have value proposition and growth potential namely real estate investment trusts, infrastructure and transportation, healthcare, renewable energy and tech-related.

It also noted that connectivity via the Rapid Transit System (RTS) Link marks the start of more infra projects to unlock the full economic potential of the SEZ.

The Johor-Singapore SEZ officially commenced with a Memorandum of Understanding (MOU) signed on Jan 1 this year.

Negotiations are in their final stage for a legally binding Memorandum of Agreement expected in September, with fiscal package incentives to be incorporated into the 2025 Budget announcement on Oct 18.

Source: NST

Johor-Singapore SEZ may turn into multi-growth story like Shenzhen: JP Morgan

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To propel the Malaysian economy to a high level amid uncertainty in the global economic landscape, investment in infrastructure is needed to attract long term foreign investment as this will have spillover effects on the other economic sectors, economists say.

Bank Muamalat (M) Bhd chief economist Mohd Afzanizam Abdul Rashid said infrastructure investment is important to ensure the inflows of long term foreign investment.

Furthermore, he says investing in infrastructure also has positive spillover effects to other economic sectors.

“Infrastructure is very capital intensive and it’s project based.

“It would easily create excitement among investors as there will be various players to be involved in the projects.

“To some degree, it would be a source of attraction just like in Indonesia when they decide to shift the capital city to Kalimantan i.e. the Ibukota Nusantara. It’s about a spark but it has to be realistic and credible,” he told StarBiz.

He said the local economy has yet to reach the advanced economic stage.

Therefore, he said investing in key infrastructure such as expressways, rail related projects, telecommunication, renewable energy (RE) and electric vehicle (EV) charging stations and many more are critical for improving the growth potential for the country’s economy.

Afzanizam said infrastructure projects would help to increase the country’s productivity level which, in turn, would translate into higher income as there would be more skilled labour to be employed.

He said, for example, the Mass Rapid Transit projects have garnered a lot of interest in the Malaysian market as they are expected to have spillover effects on other sectors.

Similarly, projects like the east coast rail line which is supposed to focus on the transportation of cargo between Kuantan port and Port Klang.

The spillover effects, he said would be felt in the construction, building material and services sectors like the financial, architecture and engineering consulting.

“These projects become a spark which has resulted in strong interest among foreign investors in the Malaysian capital markets. And we saw the foreign ownership in listed shares at one time was in excess of 20% for considerable periods,” he noted.

Malaysia’s gross domestic product (GDP) grew 5.8% in the second quarter from a year ago, according to advance estimates released by the Statistics Department.

This follows a 4.2% expansion seen in the first quarter of this year, which reflects the economy is on track, and possibly to surpass the government’s projection of between 4% and 5% economic growth this year.

Juwai IQI global chief economist Shan Saeed said an important economic strategy in the modern era is infrastructure. He added global investors have found a new way of analysing the country’s ability to invest in infrastructure, the new asset class for sustainable growth parameters.

“All the governments basically, among others, are focusing on reducing debt and improving their fiscal side of the balance sheet (fiscal discipline) to entice the global investors for long term investments.

“Countries like China, Indonesia, Australia, Vietnam and India are investing heavily into infrastructure and treating it as an asset class where pension, endowments and institutional investors can park funds to get solid returns.

“Asean needs US$1.2 trillion, Africa needs US$2.5 trillion in infrastructure investment in the next three to five years and that makes the regions very attractive for global smart and sophisticated investors,” he said.

Shan said overall Malaysia has done well in terms of maintaining macroeconomic stability and focusing on infrastructure investment.

Highlighting the importance of infrastructure investment, he said such investment would send positive signal to the market, adding that debt reduction, fiscal management and prudent monetary policy play the groundwork in the macro equation.

“We at Juwai IQI project that Malaysia should be able to achieve a GDP growth of between 4.3% and 4.8% in 2024. One of the Nobel laureates, the late Robert Fogel, advocated about infrastructure in 1964 and how it has a positive impact on the GDP growth equation.

“Now infrastructure is the new asset class for the governments to focus upon to attract global investors. The Belt and Road Initiative is a good live example in the modern era for global connectivity, lifting masses out of poverty and offering good dividends for economic growth in the long run.

“In my opinion, Asean would become the growth story for the global economy in the next three to five years due to its demographics (young population), strong consumption pattern and above all economic stability at the macro level,” Shan said.

On the measures needed to undertake firm investments into infrastructure, Afzanizam said the government needs to strategically arrange the narratives so that the investors would clearly see the end game.

“The end game for investing in infrastructure is to be urbanised without compromising the sustainable features. So, this would include how RE and EV would come into the picture. Another end game would probably be on improving connectivity between the two nations , Singapore and Malaysia, such as the Kuala Lumpur-Singapore High Speed Rail project.

“Energy security could also be the end state as Sarawak for example is aiming to export to the regional market. The narratives would allow the investors to connect the dots and would be able to appreciate which ultimately would make them more convinced to invest in Malaysia.

“Establishing a clear and credible storyline of our economic development is crucial in attracting the foreign capital. It’s like a sales pitch but with a broader scale as we are looking at the country’s development and endeavor to transition towards an advanced nation,” he added.

Source: The Star

Infra investment key to sustaining growth, FDI

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Sabah is full of investment opportunities, according to a business delegation from Wuhan, China.

The delegates, who were in Sabah for business exploration, plan to revisit the State to seek more cooperation and investment opportunities.

They will bring China’s excellent educational resources, courses, teachers, and equipment to Sabah.

The aim is to cultivate Malaysian students, familiarize them with Chinese culture and technology, help them secure higher wages in China enterprises in Malaysia, and increase their employment rate.

The Wuhan business delegation whose visit to Sabah was hosted and arranged by the Sabah China Chamber of Commerce (SCCC), sees potential in various fields such as agriculture, seeding, human resource education and capital investment.

They believe Sabah is a place full of opportunities and plan to revisit to explore more cooperation opportunities.

The delegates included Cai Qin, Chairman of Wuhan Junyijia Property Management Co., Ltd.; Xie Canhui, General Manager of Wuhan Tianhong Exhibition Co., Ltd.; Li Yuanyuan, Partner of Mingde Capital (Wuhan) Operation Center; Miiya, Business Director of Shenzhen UFO Power Technology Co., Ltd. (Malaysia); Shelly, Marketing Manager of Shenzhen UFO Power Technology Co., Ltd. (Malaysia); Deng Changjing, Operations Director of Jingrui Technology Cross-border E-commerce Co., Ltd.; and accompanying staff Zhou Lingzi.

With the assistance and arrangements of Datuk Frankie Liew, President of the SCCC, they recently paid courtesy visits to Datuk Dr Roland Chia, Political Secretary to the Chief Minister of Sabah, and Datuk Frankie Poon Ming Fung, Chairman of Sabah Development Bhd, to express their views on Sabah after this visit.

“In view of the lack of information about Malaysia in Hubei, Wuhan, we initially had no knowledge of East Malaysia and West Malaysia,” said Li Yuanyuan.

“After Datuk Frankie Liew and others visited us to promote Sabah-China cooperation in May this year, we realized that Sabah also has excellent talents and resources, which led to the planning of this study tour.

“After our exchanges here, we found that although the Sabah market has certain limitations, Hubei, Wuhan might be 10 to 15 years ahead of Sabah in economic development. “However, from the perspective of investors, Sabah is a place full of opportunities. We definitely will revisit multiple times in the future,” Li Yuanyuan added.

Cai Qin expressed gratitude to Liew for leading the delegation and providing strong support during this period.

She revealed that her company focuses on human resources services for Chinese enterprises, including human resource education.

During this visit, they also discussed cooperation with educational institutions such as University Malaysia Sabah (UMS), Sabah Institute of Arts, and SM Tshung Tsin.

“We will bring China’s excellent educational resources, courses, teachers and equipment to Sabah in the future, collaborating with vocational and technical colleges in Sabah to jointly cultivate Malaysian students.

This will help them understand Chinese culture and technology, secure higher wages in Chinese enterprises in Malaysia, and improve their employment rate,” said Cai Qin.

During the trip, the Wuhan business delegation, arranged by Liew, also visited the Kota Kinabalu Hardware Association.

Cai Qin mentioned that after understanding the needs of the hardware industry in Sabah, they plan to bring hardware industry players from Wuhan for future visits and exchanges.

Source: Borneo Post

Sabah full of investment opportunities – Wuhan delegates

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Sarawak may expect inflow of US$20bil in investments into potential large-scale solar power projects by multinational companies from China and United Arab Emirates (UAE).

Shanghai Electric and China Three Gorges International Ltd are mulling to invest US$10bil and UAE’s state-owned clean energy provider, Abu Dhabi Future Energy Company, widely known as Masdar, may invest US$10bil to produce solar power from hydroelectric dams in Sarawak, according to Sarawak Premier Tan Sri Abang Johari Tun Openg.

Top executives of these companies expressed their strong interest to make such investments in proposed solar power projects in Sarawak to Abang Johari during their meetings here late last month.

“The combination of the two is expected to produce an estimated three gigawatts (3GW or 3,000MW)) of solar power,” Abang Johari said at the Natural Resources and Environment Board’s 30th anniversary celebration dinner here.

He said Sarawak is capable of producing at least 3,000MW of electricity from floating solar panels’ installation on existing hydroelectric dams, including Bakun and Murum.

The 2,400MW Bakun dam and 944MW Murum dam in the upper Rejang basin in Kapit Divisions have the potential to produce 500MW and 600MW respectively via floating solar farms on their reservoirs.

Another major dam, the 1,285MW Baleh dam project currently under construction is targetted for completion in fourth quarter of 2028, according to developer Sarawak Energy Bhd (SEB).

Abang Johari recently toured the SEB’s floating solar farm project on Batang Ai hydro dam reservoir in Sri Aman Division. The 50MW floating solar farm, Malaysia’s largest and the first major hybrid generation facility combining hydro and solar, is expected to be commissioned in October this year.

The solar farm project is a joint venture between SEB, China Power International Holdings (a wholly-owned subsidiary of State Power Investment Corp) and solar energy firm, Trina Solar.

SEB, according to its group chief executive officer (CEO) Datuk Sharbini Suhaili, is conducting studies on the feasibility of a Phase 2 floating solar facility at Batang Ai with a capacity of up to 160MW. The 108MW Batang Ai dam, the first hydro power plant in Sarawak, was commissioned in 1985.

The 50MW Batang Ai floating solar farm project occupies merely about 3% or 86 ha out of the 8,500 ha of the dam’s reservoir.

Sharbini said SEB is evaluating proposals from potential independent power producers keen to invest in solar energy projects in Sarawak.

Abang Johari said UAE’s Masdar is interested to invest in solar energy development.

Masdar and SEB inked a memorandum of understanding to collaborate on developing clean energy in Sarawak during the 28th Conference of Parties to the United Nations Framework Convention on Climate Change in Dubai in December 2023.

Masdar, with its presence in more than 40 countries, is one of the world’s largest renewable energy companies and a green hydrogen leader that has placed the UAE in the forefront of energy transition,

In a follow-up meeting with SEB’s top officials and Sarawak Premier in Kuching recently, Masdar CEO Mohamed Jameel Al Ramahi said Masdar was committed to working with the Sarawak government and its local partners to invest and develop large-scale renewable energy projects.

According to him, Masdar aims to develop gigawatts of renewable energy capacity in Malaysia and across other Asian countries.

On the other hand, Shanghai Electric Malaysia director Zhang Xiaohui said his company and China Three Gorges’ experience and success in working with companies in Sarawak had given them the confidence to increase their investments.

“We from Shanghai Electric and China Three Gorges want to participate in green energy development and we plan to invest US$10bil in Sarawak.”

Zhang said the two companies would extend their support to Sarawak Premier’s aim to turn Sarawak into a green energy hub.

Three Gorges was the main contractor for the Murum dam, which commenced construction in 2008 and became fully operational in 2015.

Source: The Star

Foreign firms keen on renewable energy business in Sarawak

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