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More companies from China have expressed their intention to learn about the halal industry in Malaysia, said One Belt One Road Chamber of Commerce (OBORCC) president Datuk Seri Tan Thian Lai.

He said many companies in China’s food and beverage, pharmaceutical, and cosmetic industries are beginning to realise the importance of halal certification, and they view halal certification in Malaysia as one of the best in the world.

“They (the Chinese companies) see Malaysia as a country that places great emphasis on each product that it produces. To them, it is a good opportunity to learn more about these halal standards for their products,” he told Bernama today.

Tan said several countries are ready to invest in setting up preparation and packing facilities for halal goods in Malaysia.

“The halal market is extensive and is not limited to the 1.4 billion people in China alone because, of late, non-Muslim communities have come to understand the importance of halal (certification) on the products they use.

“Because of this, business partners from Guandong, Shanghai and Beijing have expressed their intentions to open their factories in Malaysia so that their halal products can be easily monitored by Jakim (Department of Islamic Development Malaysia),” he said.

In this regard, Tan hopes that the visit by the Prime Minister of China Li Qiang to Malaysia in conjunction with the 50th anniversary of Malaysia-China diplomatic ties beginning Tuesday (June 18) will benefit both countries in the effort to empower the global halal industry.

Malaysia’s Halal Certification, managed by Jakim, has gained international recognition for maintaining the top rank for 10 consecutive years for the halal food sector among 81 countries, as reported by State of the Global Islamic Economy 2023.

The global halal market is projected to reach US$9.71 trillion (US$1=RM4.69) by 2025, with countries like Malaysia expected to lead in the coming years.

In a special address at the Global Forum on Islamic Economics and Finance on May 28, Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the halal industry has proven to be one of the most competitive and rapidly growing sectors in the world, adding that such developments are also expected to be experienced by Islamic financial assets.

Source: Bernama

Chinese companies eager to learn from Malaysia’s halal industry

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The Kerian Integrated Green Industrial Park (KIGIP), bordering Kerian district in Penang and Kedah, has been hailed as a strategically significant initiative by an expert.

Prominent economist Professor Tan Sri Dr Noor Azlan Ghazali said the strategic initiative gives him confidence that KIGIP will form a great northern Malaysia growth triangle; in Batu Kawan-Kulim-Kerian.

“It has the potential to attract high-value investments within the country and also from abroad,” he said in a Facebook post.

“This idea focuses on the green technology industry which is great for our country,” he wrote.

Prime Minister Datuk Seri Anwar Ibrahim launched the KIGIP Master Plan earlier today. Noor Azlan said the announcement marked a historic day for Kerian, the northwestern district of Perak.

Noor Azlan said Kerian district has crucial logistics infrastructure including twin railway tracks, three stations, and access via the PLUS highway at Bukit Merah, Alor Pongsu, and Bandar Bahru.

Meanwhile, Bayan Lepas has become a global hub for electronics and electrical industries, with its success now spreading to Batu Kawan Industrial Park (BKIP) and Kulim Hi-Tech Park.

“Bayan Lepas International Airport will be just 40-50 minutes away now that the Sultan Abdul Halim Muadzam Shah Bridge is being built, and the Penang port is nearby.

“KIGIP will add significant value to this existing infrastructure and complete a new industrial triangle focused on green technology in northern Malaysia,” he said.

Noor Azlan also said a thorough socio-economic study of Kerian is necessary.

“This study should assess the current situation and identify steps to ensure Kerian residents can fully participate in the opportunities created by KIGIP.” he said.

KIGIP is among the key initiatives that are in the New Industrial Master Plan 2030 (NIMP 2030) launched last year.

He said, it also fulfills the four key missions of NIMP 2030, namely; advancing economic sophistication, accelerating the adaptation of technology and digitization, driving net-zero carbon emissions, and ensuring economic security and inclusivity.

Noor Azlan also showed his appreciation towards Anwar and Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz for the idea of a new industrial zone.

Source: NST

KIGIP a strategic initiative, says prominent economist

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The development of the Kerian Integrated Green Industrial Park (KIGIP) is set to offer attractive and high-quality career prospects for local talents in the surrounding area, said Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz.

Tengku Zafrul said that KIGIP will become a hub in northern Malaysia for nurturing talent and innovation, leveraging its strategic location near various high-level educational and technical and vocational education and training (TVET) institutions, as well as the Pusat Latihan Giat MARA.

“This strategic location will ensure an adequate supply of skilled graduates to fill skilled and high-value positions in KIGIP, prioritising and providing opportunities for skilled local workers to further develop,“ he said during his welcoming speech at the launching ceremony of the KIGIP Master Plan officiated by Prime Minister Datuk Seri Anwar Ibrahim here today.

Also present were Deputy Prime Minister Datuk Seri Fadillah Yusof, Perak Menteri Besar Datuk Seri Saarani Mohamad and Penang Chief Minister Chow Kon Yeow.

Tengku Zafrul highlighted that KIGIP is seen as complementing the spillover demand aligned with the rapid growth of industries in Penang and the Kulim High-Tech Park.

According to Tengku Zafrul, he believes that once KIGIP is fully operational, it will make a significant contribution to the country’s economic development.

“With its unique value proposition, KIGIP is not about competition, but rather complementing the existing industrial parks in its vicinity,“ he said.

Meanwhile, Saarani, in his address, noted that KIGIP, which will soon take root in the northern part of the state, will strengthen the industrial ecosystem in Perak.

He said that in the southern part of the state, the Automotive High Technology Valley (AHTV) is already established in Tanjong Malim, while on the west coast, there are the Lumut Maritime Industrial City (LuMIC) and the Perak Halal Industrial Park (Perak HIP), along with the Silver Valley Technology Park (SVTP) in Kinta.

“With a robust industrial ecosystem, we hope to bring abundant benefits to the people through the creation of new economic centres that provide employment opportunities, as well as spaces and opportunities for entrepreneurship and livelihoods,“ he said.

“The presence of KIGIP also brings along the construction of a new Water Treatment Plant (LRA), which will undoubtedly bring new hope to the residents, especially in the Kerian district, who have long suffered from water scarcity issues, including farmers who toil to cultivate agricultural lands,“ he added.

Source: Bernama

KIGIP offers attractive, quality career prospects – Tengku Zafrul

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The government has agreed to speed up the implementation of the New Industrial Master Plan (NIMP), the National Energy Transition Roadmap (NETR) and the Hydrogen Economy and Technology Roadmap (HETR) ) to achieve net zero carbon emissions by 2050,

Minister of Natural Resources and Environmental Sustainability Nik Nazmi Nik Ahmad said new policies such as the National Climate Change Bill (RUUPIN) would also be expedited to achieve the target.

He said the decision was reached yesterday at the Fifth Meeting of the National Climate Change Action Council (MTPIN) chaired by Prime Minister Datuk Seri Anwar Ibrahim.

“The meeting also agreed to establish a National Decarbonisation Committee to monitor the implementation of the action plan to achieve the target,“ he said in a statement today.

Nik Nazmi said he presented three papers to MTPIN where the main points discussed were on the proposed setting of the country’s net zero greenhouse gas (GHG) emission target in 2050 based on the outcome of the Nationally Determined Contributions (NDC) Development Direction and Action Plan and the Long Term Low Carbon Development Strategy (LT-LEDS).

MTPIN also agreed to approve the National Climate Change Policy 2.0 to complement other initiatives such as the RUUPIN, the National Adaptation Plan and the National Carbon Market Policy.

To ensure Malaysia’s active participation in international conferences, Nik Nazmi also tabled the development plan for the Malaysia Pavilion at the 2024 United Nations Climate Change Conference in Baku, Azerbaijan, and COP-30 in Brazil in 2025.

“At the meeting, Bank Negara Malaysia and the Securities Commission presented the financial sector’s response to climate change led by the Joint Committee on Climate Change (JC3).

“This initiative is a manifestation of the government in dealing with the issue of climate change comprehensively by reducing GHG emissions, strengthening the country’s resilience to the effects of climate change and encouraging a shift towards more sustainable and low-carbon development,“ he said.

At the meeting, Nik Nazmi also shared the outcome of his courtesy call on Thai Deputy Prime Minister and Minister of Natural Resources and Environment General Phatcharavat Wongsuwan during his short working visit to Bangkok last June 12.

The Thai government expressed its support for Malaysia for the 2025 ASEAN Chairmanship and agreed to establish cooperation to share expertise in the carbon market mechanism, he said.

Source: Bernama

Govt agrees to speed up NIMP, NETR, HETR to achieve net zero carbon emission by 2050

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Malaysia is second in Asean and 23rd in the world in terms of artificial intelligence (AI) readiness, said CyberSecurity Malaysia, an agency under the Ministry of Digital Malaysia.

CyberSecurity Malaysia, Digital Forensics Department specialist Nazri Ahmad Zamani said Malaysia is ready to attract more technology and AI-related investment which will create more demand for a highly skilled workforce in the future such as data centres.

He said that based on research conducted by Oxford Insights for the year 2023, Malaysia’s government AI readiness stood at 79.99 per cent, data infrastructure readiness at 72 per cent, and AI readiness (total score) at 68.71 per cent.

“As Malaysia continues to gear up its initiatives to become the regional hub for cloud computing and related technologies, such as generative AI, the country has cemented its position as second in Asean for AI readiness,” he told Bernama in conjunction with the Palo Alto Networks flagship event, Ignite on Tour, here, recently.

According to the research, Malaysia is ahead of other Asean countries except Singapore and has climbed from the 29th spot in 2022 to the 23rd this year with improved marks across all categories.

Nazri said that in light of this, Malaysia has attracted investments such as Google, Microsoft and Amazon Web Services (AWS), proving that Malaysia is on the right track.

Recently, Prime Minister Datuk Seri Anwar Ibrahim said that Malaysia has approved RM114.7 billion worth of investments in data centres and cloud services between 2021 and 2023.

The prime minister said these investments have created 2,325 high-value jobs in specialised fields such as data scientists, data analysts, data engineers, cybersecurity analysts, and network engineers.

Anwar also said the Madani government is committed to positioning Malaysia as a sustainable AI data centre destination in Southeast Asia, as part of its efforts to strengthen the country’s position as a leading global investment destination.

Meanwhile, asked about the initiatives to further enhance education on AI, Nazri said that the government’s initiative to kickstart the “AI Untuk Rakyat” programme is a stepping stone and more advocacy needs to be done moving forward.

“As we are heading towards an AI future, we need to prepare our next generation on this not just at the tertiary level but also at primary and secondary schools, so that we will have more talent to cater to future demand,” he said.

Curb cyber threats with education

In line with the increasing AI advancement, Palo Alto Networks regional vice-president for Asean, Steven Scheurmann said that as AI and digitisation become a must in daily necessities, there has been an increase in cyber threats globally leading to financial losses.

“Phishing and ransomware are becoming a threat by the minute as attacks can now be done by AI bots. They can impersonate others, and create ransomware in minutes compared to weeks before.

“This is a global problem and we need to start educating the public that we need to be less trusting in what we receive online,” he said.

Scheurmann also said many elderly people have fallen victim repeatedly as they have a deep trust in everything that is said or shared with them, making them the most vulnerable.

“Thus, we need to continue educating them about the danger of clicking on everything they receive to ensure we do not fall for the trap,” he said.

In addition, Scheurmann said that the Cyber Security Bill that the government passed recently is a stepping stone in safeguarding Malaysia’s cybersecurity which is rapidly growing.

The Bill was approved by parliament on March 27, 2024, to improve and protect the cybersecurity environment in Malaysia.

It introduces requirements for the designated entities within the National Critical Information Infrastructure (NCII) sectors to comply with the code of practice, specific standards, measures, and processes when handling cybersecurity incidents.

Source: Bernama

Malaysia’s AI readiness 2nd in Asean, 23rd globally: Cybersecurity Malaysia

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Malaysia’s largest car maker by sales, Perusahaan Otomobil Kedua Sdn Bhd (Perodua), plans to set up an East Coast regional hub for spare parts, taking advantage of the highly anticipated East Coast Rail Link (ECRL).

Its president and chief executive officer, Datuk Seri Zainal Abidin Ahmad, said the hub could likely be in Kuantan, Pahang, although other locations in the East Coast are also being considered.

“This will help our customers in the East Coast, not only with a vehicle hub but also a spare parts and pre-owned vehicle hub.

“Hence, there can be quite a big development there. As such, collaborations with the Malaysia Rail Link Sdn Bhd (MRL) and some parties in Pahang can help to create and spur economic development around the area,” he said during the panel session titled “East Coast Rail Link (ECRL): ECRL@Selangor – Economic Benefits & Opportunities” at the National Investment Seminar yesterday.

Earlier this week, Perodua inked a memorandum of understanding with MRL, the project owner of the 665-km ECRL, allowing it to leverage the rail network to transport cars from its plant in Serendah, Selangor to the East Coast, and Sabah and Sarawak.

The ECRL encompasses 20 passenger stations and 10 freight stations. A notable one is the Puncak Alam ECRL station in Selangor as pointed out by MRL head of strategy Mohd Zaidi Sharif.

He said a potential steel products distribution hub as well as the manufacturing of steel finished products may be established there.

“We will bring all the raw steel products from Kemaman and Kuantan to the Puncak Alam ECRL station for distribution to the Klang Valley area,” Mohd Zaidi said.

On this note, Zainal said the proposed steel hub at Puncak Alam could potentially help attract investments in auto-related steel based activities such as tools, moulds and dies which are a subset of stamping and injection moulding processes required by the local automotive industry.

“For the automotive industry, we manage to bring in vendors from Japan, China and South Korea to invest in Malaysia and set up joint ventures with our local vendors.

“However, the one thing that we are unable to do is to attract investments to make automotive-grade steel.

“During discussions with Japanese vendors, they said that while incentives from the Malaysian Investment Development Authority are important, a total logistics supply chain is also crucial.

“Hence, this is another area where some promotions can be done for the automotive industry, to bring investors to Puncak Alam so that they can invest in the steel industry, mainly on tools, moulds and dies for our stamping and injection moulding processes,” he said.

Zainal said “a lot of cost savings” are expected from transporting its cars, parts and components via the railway instead of by road.

Currently, Perodua moves its cars out of Port Klang to customers in Sabah and Sarawak via the Straits of Malacca. He also said the ECRL will help “regional integration” of the East Coast, Sabah and Sarawak with the West Coast.

“We used to transport our completely built-up (CBU) vehicles using trucks and lorries. However, this poses challenges not in regards to efficiency but safety.

“Efficient transportation infrastructure is a key factor in attracting investors. Currently, we do not have vendors in Sabah and Sarawak due to logistical difficulties.

“Most of them are also situated in Shah Alam and Penang.

“As such, with the ECRL, more suppliers will be able to come and invest in Pahang and Terengganu,” he said.

Domestically, Perodua has a 40% market share and it aims to increase this figure to 45% this year. It also plans to grow exports in the next few years.

“We want to increase our exports but we still have about 120,000 outstanding bookings to fulfill domestically. So we have to deliver those bookings first before we can export. Based on our plan, our exports are supposed to be about 10% of our total production requirement.

“Our production now supports 350,000 units, so we are looking at 35,000 units or so for export. We used to export to Sri Lanka but Sri Lanka is not accepting any CBU imports due to their economic circumstances.

“We have shipped our cars to African countries and we are looking at countries like Mozambique. In fact, we do not only export new cars but also used cars to Fiji and some other countries,” he said.

The ECRL railway line from Kota Baru to the Gombak Integrated Terminal is projected to finish construction by December 2026 and become operational starting January 2027.

Similarly, the alignment extending from Gombak to Port Klang is slated to be completed by December 2027, with full operations expected to begin from January 2028 onwards.

Mohd Zaidi said the project is progressing according to plan and is targeted to be completed slightly ahead of schedule.

“Those familiar with the construction industry understand that a project of this scale and size, a 665-km linear project, involves more than 1,400 construction sites, is a mega challenge to keep on track,” he said.

Source: The Star

Perodua plans East Coast spare parts hub

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Sarawak’s bold investment in hydrogen-powered public transportation is expected to generate tremendous spillover into the local economy, said international and local renewable energy industry players.

They said the rolling out of hydrogen-powered vehicles such as the autonomous rapid transit (ART) system and buses, along with the establishment of hydrogen refuelling stations, would position Sarawak as a regional hydrogen power hub.

“I think Sarawak is a fascinating prospect for hydrogen. It’s excellent. I mean it’s great to see a lot of green energy, also with hydropower but you (Sarawak) have got the prospect here of manufacturing in a green way too,” said Dr Michaela Kendall, a green energy expert from the United Kingdom.

She spoke to The Borneo Post when met during a technical visit to Petroleum Sarawak Berhad’s (Petros) multi-fuel station at Darul Hana, and to Sarawak Metro’s ART assembly facility, here yesterday.

Kendall was one of the participants at the three-day Asia Pacific Green Hydrogen (APGH)

Conference and Exhibition 2024 at Borneo Convention Centre Kuching, which ended Wednesday.

The conference brought together 611 delegates, 72 speakers and presenters, and 96 participating companies from more than 19 nations.

Describing the visits as insightful, Kendall said the move by the Sarawak government to tap the field would leverage its potential and exponential growth within the hydrogen ecosystem once the technology becomes commercially viable in the future.

“The exciting thing here is, this is the first time I’ve been on a fully electrified autonomous vehicle, so it’s a hydrogenelectrified autonomous vehicle. I can see that the system is good.

“I can see and understand the technology because I know the providers of the fuel cells. Also, I’ve seen the hydrogen refuelling station, which is great,” she said.

Kendall also expressed her interest in exploring the hydrogen market in Sarawak, adding that her company produces green energy technology and is now looking for a place to manufacture its technology.

“Also with hydropower, you’ve got the prospect of manufacturing in a green way too. So we would like to manufacture our solar oxide fuel cells using green energy.

“We have a green product and we want to use green energy to produce it. Sarawak offers a very good option for manufacturing, so this is the future technology.”

Agreeing with Kendall was Dr Nuttapong Hariwongsanupab from Thailand, who leads the hydrogen business development team of PTT Public Company Limited Thailand.

He said yesterday’s visits provided deep insights in developing hydrogen’s ecosystem.

He said the hydrogen-powered ART would leverage Sarawak holding the highest prospect in hydrogen market throughout Southeast Asia “During the ART visit, we gained deep knowledge about the tram. We discussed this as well and went into detail on how they gather the hydrogen, how they fill it, and how to put it inside.

“To me, the ART is the very most promising one is Sarawak, even in Southeast Asia, because this is the first time that I have seen the tram which has already run in the last few months,” he said.

Meanwhile, Swagelok Malaysia service manager Mohd Hafifi Ismail said Sarawak’s hydrogen development would open up more opportunities to local entities and the economy.

He said while it may be a while before the local hydrogen export market picks up, he foresees tremendous positive spoil effects from the green hydrogen investments in the near term, as many local energy industry players including Swagelok are eager to explore Sarawak’s hydrogen development.

“I think it’s a great development and business opportunity, especially on this new hydrogen development. It’s a great opportunity for local companies like us, Swagelok.

“It also opens up more opportunities in terms of supplying and supporting local development, especially on hydrogen production as well as fuel cells.

“On top of that, it will be a great opportunity in terms of skills and manpower that can be further developed by the people here. This definitely will bring a great opportunity to build up Sarawak in terms of infrastructure as well as facilities,” he said.

Source: Borneo Post

Investment in hydrogen to generate spillover into Sarawak’s economy, say industry players

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Investments from technology companies in Malaysia will definitely improve and enhance the artificial intelligence (AI) ecosystem in the country, said Minister of Science, Technology and Innovation (Mosti) Chang Lih Kang.

He said this in response to questions from reporters regarding TikTok owner ByteDance’s plan to invest RM10 billion in Malaysia.

“When technology companies invest in Malaysia to expand their operations, they will help us enhance the AI ecosystem.

“This means more computing power and more data centres. I believe this will help us build infrastructure and encourage the adoption of AI,” he told reporters after officiating at the National Science Week Carnival 2024, today.

Regarding Nvidia’s investment, Chang mentioned how the government could utilise its investment in terms of technology and expertise.

“Nvidia is investing with Malaysian partners. We foresee a transfer of technology, which will help us in terms of infrastructure. They will establish data centres using GPUs (graphics processing units) with high computing power. This will help us push AI development in our country,” he said.

Additionally, he said Mosti, through the Malaysian Research Accelerator for Technology and Innovation (MRANTI), has established an AI sandbox in collaboration with Nvidia to benefit from its expertise.

“Nvidia has also discussed and agreed to provide cloud credits to Malaysia for AI start-ups in our country,” he added.

Source: Bernama

Tech giants’ investments to boost Malaysia’s AI ecosystem, says science minister

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The New Industrial Master Plan 2030 (NIMP) which requires RM95 billion worth of investment over the next seven years offers new opportunities for banks and the capital market to innovate and offer the right financing products to finance new sectors and technologies.

Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said the government would like the financial sector to take on a more active role in achieving the missions outlined by the NIMP 2030, and the most recent policy, the National Semiconductor Strategy launched in May 2024,

“As a former banker, I’m fully convinced that this will be a “win-win” for financial institutions,” he said in his opening remark at the Sasana Symposium 2024 via a recorded video here today.

He said while financial institutions are always looking at shorter-term gains, the whole sector must also take a more long-term perspective in funding these structural reform agendas.

“The hallmark of successful reforms and true nation building is a win-win end-game for all stakeholders. Securing Malaysia’s future sustainable growth is also securing future income streams of banks and financial institutions,” he said.

He explained that the NIMP 2030 has been designed to guide Malaysia’s industries towards technological advancement, sustainability and greater integration into the global value chain.

“In achieving this, the government has also recognised the importance of small and medium enterprises and the need to scale up to increase their contributions to the sector and the overall economy.”

Together these efforts will undoubtedly raise income levels, benefitting Malaysians across all income segments, he said, adding that the investments in targeted sectors are also meant to create more high-skilled, higher-paying jobs.

He said that unlike the past Industrial Master Plan, Malaysia’s approach this time is to be “mission based”.

“This means placing every stakeholder’s focus on four key missions, which are increasing economic complexity; teching up with best-in-class technologies; pushing for net zero and promoting economic security, resilience and inclusivity.”

The structural changes envisaged by NIMP are both critical and necessary to ensure benefits from additional economic activities truly cascade down to the masses, said Tengku Zafrul.

Source: Bernama

NIMP 2030 offers significant opportunities for banks, capital market – Tengku Zafrul

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Malaysian Investment Development Authority (Mida) aims to create a robust and sustainable economic environment to attract and retain significant investments, driving Malaysia towards a prosperous future.

Chairman Tan Sri Sulaiman Mahbob said the global investment environment has become increasingly competitive, leaving no room for complacency.

“The authority’s primary focus is on the comprehensive implementation of all government initiatives and mandates to achieve the desired outcomes aligned with the national agendas namely the 12th Malaysia Plan, Madani Economy Framework, New Industrial Master Plan 2030, and National Energy Transition Roadmap,” he said at the National Investment Seminar: Re-energising Domestic Investment, jointly organised by Mida and Federation of Malaysian Manufacturers (FMM) today.

Sulaiman said Mida is aligning its strategies with environmental, social and governance principles to attract high-value, innovative, quality, and sustainable investment projects. “Mida is keen to collaborate with partners focused on ‘impact investing’ and the goal is to empower the local supply chain, support companies in automating processes and enhance cost-efficiency while meeting industry demands and mitigating social and environmental impacts.”

He said foreign investment and domestic investment performance should be seen as opportunities not only to unlock financial returns but also to enhance social and environmental outcomes.

In addition, Mida is dedicated to empowering small and medium enterprises due to the crucial role they play in Malaysia’s economy.

“Mida has successfully organised 14 programmes and has reached out to more than 420 SMEs between January and March,” Sulaiman said. “With the SME investment desk, Mida will continue to work closely with companies and businesses as well as key partners such as FMM, to foster a more conducive business environment and increase growth opportunities.”

FMM vice-president Jacob Lee highlighted the importance of strong domestic investments, saying that strong domestic demand results in more foreign investment, and healthy domestic investment is essential for successful foreign investment.

“Domestic investments usually create more jobs, and this arises from the small and medium industries which provide employment opportunities and provide continuous opportunities to local industry players to expand their businesses,” he said.

Lee observed that foreign and domestic investments work together effectively, which highlights the exchange of knowledge from foreign investors, coupled with the necessity for a strong domestic industry to cater to foreign enterprises, foster innovation and the expansion of local businesses.

“Given adequate time and support, these domestic businesses can evolve beyond merely supporting foreign investments and can instead compete on a global scale, contributing to the international recognition and growth of the Malaysian brand,” he said.

Source: The Sun

MIDA to create robust, sustainable economic environment to attract investments

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TH Plantations Bhd has partnered with Cenergi SEA Bhd to undertake the development, construction and operations of a 1.2 megawatts (MW) biogas power plant in Kluang, Johor.

The project will be executed through a joint venture between THP Applications & Services Sdn Bhd and Cenergi RE Sdn Bhd.

TH Plantations chief executive officer (CEO) Mohamed Zainurin Mohamed Zain said the biogas power plant is targeted to be operational in 2026.

Once operational, he said the electricity generated from this biogas power plant will be sold to the national grid managed by Tenaga Nasional Bhd (TNB) under the SEDA’s (Sustainable Energy Development Authority) Fit Scheme.

“At TH Plantations, we are always looking for ways to enhance Tabung Haji’s investment value while prioritizing environmental sustainability,” he said at the signing ceremony here, today.

The biogas power plant is set to generate enough electricity to power up to 1,500 homes annually.

In term of environmental impact, this biogas power plant could help avoid about 20,000 tons of carbonemissions annually, which is equivalent to 4,760 cars driven in a year.

Mohamed Zainurin said the project aligns with TH Plantation’s Al-Falah 22/22 strategies, aimed at optimising the treatment of palm oil mill effluent and reducinggreenhouse gas emissions.

He said the introduction of green technology initiatives will enhance the existing factory treatment system without causing environmental harm.

“Renewable Energy (RE) is poised to play an increasingly significant role in Malaysia’s electricity generation, given the abundance of biomass and biogas resources. TH Plantation is committed to exploring opportunities to become a reliable supplier of bio-stock for the RE industry,” he said.

Meanwhile, Cenergi group CEO Hairol Azizi Tajudin said through this partnership, the company will offer its expertise and services to support TH Plantations with its sustainability journey, particularly in reducing carbon emissions.

“As part of our strategic collaboration with TH Plantations, we should collaborate more not only on biogas but in other areas such as biomass pellets and solar.We are also open to explore other areas of RE technology with TH Plantations should the opportunity arise, and the time is right,” added Hairol.

Source: NST

TH Plantations to work with Cenergi SEA for 1.2MW biogas power plant in Kluang, Johor

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Careplus Group Bhd (KL:CAREPLS) plans to raise up to RM10.57 million through a private placement to finance the construction of a manufacturing hub in Negeri Sembilan for its electric vehicle business.

In a bourse filing, the glove maker said the exercise entails the issuance of 63.31 million new shares, equivalent to 9.04% of its total number of issued shares.

Of this, about 25 million new shares, representing 3.57% of the company’s total number of issued shares, will be allocated to Ten Sang, a Seremban-based contractor responsible for the structural and infrastructure components of the manufacturing hub. The remaining new shares will be offered to third-party investors to be identified at a later date.

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“However, in an event Ten Sang does not take up the 25 million placement shares, the expected gross proceeds to be raised from the proposed private placement is approximately RM17.47 million and the total gross proceeds raised will be channelled towards the NEV (new energy vehicle) manufacturing hub,” the company said.

Careplus said the assumed price for the placement shares is 27.60 sen per share, representing a discount of about 9.95% over Careplus’ five-day volume weighted average market price of 30.65 sen up to June 7, the latest practicable date.

The proposed private placement is anticipated to conclude by the end of 2024, according to the loss-making company.

The NEV manufacturing hub, situated in Chembong, Rembau, is slated for completion by 2028.

Once operational, the hub aims to have an annual capacity of 30,000 vehicles, with one-third dedicated to assembling NETA models through the joint venture (JV) between Careplus and Intro Synergy Sdn Bhd, a subsidiary of Go Auto Group Sdn Bhd.

In January, Careplus announced that the JV company has been tasked with constructing the RM600 million green technology facility for the manufacture and assembly of NEVs in Chembong.

At end-March, Careplus had RM22.96 million cash and bank balances against RM52.41 million total borrowings.

Shares of Careplus rose two sen or 6.56% to close at 32.5 sen on Thursday, valuing the company at RM227.68 million.

Source: The Edge Malaysia

Careplus to raise up to RM10.6 mil via private placement to fund EV manufacturing hub

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Sarawak’s tenacious spirit in pushing boundaries in hydrogen technology and carbon management has propelled progress in pioneering clean energy, said Datuk Seri Fadillah Yusof.

The Deputy Prime Minister said this was particularly evident in hydrogen innovation through the state’s electrolyser and membrane technologies collaborations.

“Blessed with abundant hydropower and natural gas resources, Sarawak has seized the opportunity to emerge as a regional leader by leveraging its unique advantages,” he said in his special address for the Asia Pacific Green Hydrogen (APGH) 2024 Conference and Exhibition closing ceremony here today.

He said the state has positioned itself as a trailblazer in the hydrogen economy and cited Sarawak Energy Berhad’s launch of Southeast Asia’s first integrated hydrogen production plant and refuelling station.

“Powered by renewable hydropower, this facility not only produces hydrogen through electrolysis but also facilitates hydrogen-powered vehicles, fostering emissions reduction and sustainable urban mobility.

“Furthermore, Sarawak’s proactive stance in exploring hydrogen as a potential export commodity underscores its prominence in the regional clean energy landscape.

“Collaborations with international partners in research, technology exchange, market development and subsequently embarking in building large scale production facilities fortifies its leadership position in this space,” he said.

Fadillah said he is confident Sarawak’s success will inspire other states and drive advancement nationwide.

“With its forward-looking clean energy initiatives, Sarawak exemplifies sustainable development, showcasing the harmony between economic growth and environmental stewardship,” he said.

The Energy Transition and Water Transformation Minister pointed out hydrogen is recognised as one of the key levers of the National Energy Transition Roadmap (NETR) and plays a pivotal role in Malaysia’s energy transition strategy.

“Under the NETR, we aim to elevate our renewable energy capacity mix from 40 per cent in 2035 to an ambitious 70 per cent by 2050. This entails upscaling solar, hydro, and other renewables programmes while phasing out coal generated power.

“Moreover, reforms in the power sector are realigned in facilitating third-party access to the grid and cross-border renewable energy trade,” he said.

As such, he said strong government support for the hydrogen economy is crucial and is evident in the recently launched Hydrogen Economy and Technology Roadmap, which aims to position Malaysia as a leading hydrogen economy by 2050.

“The roadmap addresses key challenges across the hydrogen value chain, emphasising governance, technology commercialisation, and human capital development in driving this agenda,” he said.

In recognising hydrogen’s potential to revolutionise multiple sectors, he said the government will prioritise an innovation-friendly environment through financial support, incentives for hydrogen technology adoption, and multiple stakeholder collaboration.

“We are also mindful of infrastructure development and investments which are crucial for widespread hydrogen adoption and utilisation, encompassing refuelling stations for hydrogen-powered vehicles and integration of hydrogen into existing industrial processes in reducing carbon emissions.

“Our vision extends to positioning ourselves in the region as a leader in hydrogen technology and innovation by supporting research and development and nurturing an ecosystem conducive to idea generation and business growth,” he said.

In this regard, he said the federal government reaffirmed its unwavering commitment to harnessing hydrogen power for a sustainable future, through investment, incentives, infrastructure development, innovation, and collaboration in paving the way for a hydrogen economy, which is beneficial for everyone in mitigating climate change.

Among those present were Deputy Energy and Environmental Sustainability Minister Datuk Dr Hazland Abang Hipni; Deputy International Trade, Industry and Investment Minister Datuk Dr Malcolm Mussen Lamoh; Sarawak Economic Development Corporation chairman Tan Sri Datuk Amar Abdul Aziz Husain; and Borneo Business Connect chairman Tan Sri Asmat Kamaludin.

Source: Borneo Post

Fadillah: Sarawak a trailblazer in hydrogen economy, pushing clean energy boundaries

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WITH the implementation of the China Plus One strategy, expansion of third-party logistics (3PLs) and space upgrades, along with growth in sectors such as electrical and electronics (E&E), pharmaceuticals and medical devices, cold chain logistics and automotive, the demand for industrial warehouses has surged.

PTT Synergy Group Bhd (KL:PTT), a construction company that also provides warehouse solutions and distribution centres, is planning to distinguish itself from other players in the logistics space by transforming into a high-tech total intralogistics and industrial solutions provider.

Its founder, joint controlling shareholder and managing director Teo Swee Phin says demand for warehouse space remains high, with manufacturers being the main drivers as they expand their logistics space.

“We wish to transition to a company with sustainable earnings for our stakeholders and become an ‘A’ Class industry leader in high-technology industrial solutions, not just locally but also regionally,” he tells The Edge in an interview.

PTT has three main business segments: (i) construction; (ii) industrial property development and warehouse and logistics; and (iii) trading of building materials.

The group specialises in developing built-to-suit automated industrial warehouses featuring Automated Storage and Retrieval System (ASRS) technology, which consists of a variety of computer-controlled systems for automatically placing and retrieving loads from defined storage locations.

“As a construction company specialising in earthworks and infrastructure works, we leverage our expertise to enhance the cost efficiency of our industrial warehouse development projects,” says Teo.

PTT staged a turnaround with an annual profit of RM8.41 million in the financial year ended June 30, 2022 (FY2022), from a net loss of RM1.09 million in FY2021. However, its bottom line declined by a sharp 81% to RM1.59 million in FY2023. In the nine months ended March 31, 2024 (9MFY2024), the group reported a net profit of RM7.68 million,which is 16.68% lower than a year ago.

Teo says the significant drop in PTT’s earnings in FY2023 was primarily due to the accretion of interest on deferred trade payables of RM3 million — associated with the group’s industrial development projects — and a one-off corporate exercise cost for the acquisition of Pembinaan Tetap Teguh Sdn Bhd (PTTSB).

“Looking ahead, we anticipate a positive revenue and profit growth over the next three to five years, driven by enhanced operational efficiencies and the maturity of our ongoing industrial property developments,” he says.

In FY2023, PTT’s construction division remained the group’s largest revenue contributor, accounting for 70% of its turnover. The trading division accounted for 29% of its total revenue, while the industrial property development and warehouse and logistics division contributed 1%.

“We expect our construction division to continue to be the main driver for our core earnings in the short term. In 9MFY2024, the construction division accounted for 82% and the trading division 18% of total revenue.

“We expect construction to contribute 70% to FY2024 total revenue; with 15% from industrial property development and warehouse and logistics; and another 15% from the trading division,” Teo estimates.

On the construction front, PTT clinched a RM299 million contract in March to build a bridge and connecting roadworks from Tumpat to Kota Bharu, Kelantan, before it went on to secure two earthworks contracts from Sime Darby Property Bhd (KL:SIMEPROP) totalling RM169.8 million in May. On average, gross margins for the group’s construction division are between 15% and 20%.

For FY2025 to FY2027, PTT expects its industrial property development, warehouse and logistics segment to grow as there are more industrial property projects featuring advanced technology in the pipeline, supported by increasing demand for efficient supply chain solutions and warehouse spaces.

“We remain highly focused on industrial development projects as they are a core part of the group’s businesses. Our strategic pivot and investment in these areas are in line with government initiatives to promote advanced technologies and automation in order to reduce reliance on labour,” says Teo.

Apart from the ongoing Tropicana Industrial Park in Johor, PTT has five more industrial property development projects in the pipeline, consisting of smart warehouses equipped with ASRS technology and other automated solutions, with a monthly capacity of 237,000 pallets, over the next two years, which could accelerate the group’s earnings in the coming years.

System pallet serves as the structural foundation for the efficient handling and storage of unit load systems. Tenants for these projects are diversified across growing sectors in the 3PLs providers, fast-moving consumer goods (FMCG), semiconductor, E&E and commodity space.

In March, the group held a groundbreaking ceremony to launch its first smart warehouse development in PTT Logistics Hub 1 at Sime Darby Property’s Elmina Business Park, Shah Alam, Selangor. With an estimated gross development value of RM145 million, the project is expected to be completed in the fourth quarter of next year.

On May 23, PTT announced it had entered into a non-binding letter of intent with a prominent multinational corporation (MNC) based in the northern region of Peninsular Malaysia that specialises in semiconductors.

Under this agreement, PTT will develop a built-to-suit automated warehouse equipped with comprehensive Internet of Things and artificial intelligence technology and lease it to the MNC in Penang. This state-of-the-art infrastructure, encompassing a built-up area of 401,701 sq ft, will feature an ASRS with an annual capacity of 552,000 pallets.

Change of ownership in 2020

PTT, previously known as Grand Hoover Bhd, saw a change of ownership in 2020/21.

Aim Tetap Teguh Group Sdn Bhd (ATTG) — jointly owned by Teo, his elder brother Teo Swee Leng (PTT deputy chairman) and Datuk Abd Rahim Jaafar (PTT executive chairman) — surfaced as a substantial shareholder of the company with a 17.07% stake in October 2020.

Following a rights issue, which raised RM30 million in September 2021, ATTG became the controlling shareholder of PTT with a 57.91% stake.

As at Oct 2 last year, the trio’s private vehicle owned 55.96% equity interest in the company. At the same time, the Teo brothers collectively owned direct stakes of 18.08%.

PTT’s top 30 largest shareholders include Fortress Capital Asset Management (M) Sdn Bhd and Tradeview Capital Sdn Bhd.

Teo says PTT’s management team has been “continuously laying strong fundamentals” since the new major shareholders took over the company in 2021.

“We position ourselves differently from other Bursa Malaysia-listed stocks, as a unique total intralogistics solutions provider specialising in developing industrial warehouses featuring ASRS technology.

“Coupled with our strategic growth initiatives, we are optimistic that if the company continues to demonstrate strong financials, growth potential or strategic initiatives, it could support further appreciation in stock price,” he says.

Shares gaining traction

Over the past month, shares of the Main Market-listed PTT jumped 77.24% to close at RM2.18 last Thursday, giving it a market capitalisation of RM436.9 million.

“From the perspective of market trends, if there is rising interest in construction and property stocks on Bursa Malaysia, it could positively impact PTT’s stock price, especially if investors perceive it as belonging to a similar sector or benefiting from similar market dynamics,” Teo says.

As at end-March, PTT’s net debt stood at RM319.8 million, with net gearing at 1.76 times.

Teo acknowledges that PTT’s increased borrowings over the past years were due to “strategic borrowing aimed at accelerating the development” of the group’s key projects, as well as the acquisition of PTTSB in August 2023.

“We are vigilant about our leverage and are considering optimising our debt profile through ongoing private placement and land disposal exercises when the time is ripe,” he says.

In March 2023, the group completed a private placement and raised RM9.63 million cash by issuing nine million new shares at RM1.07 apiece.

In August that same year, PTT acquired the entire equity interest in PTTSB for RM152 million. The acquisition was deemed a related-party acquisition given the substantial ownership and directorial overlap between PTT and PTTSB.

Later in October, PTT proposed a private placement of up to 36 million new shares, representing 20% of its share base. The issue price for the third tranche of the placement shares was fixed at RM1.11 each.

PTT said the acquisition was to consolidate the private construction business and construction-related assets of major shareholders into the group. The move effectively eliminated the potential conflict of interest between the group and its major shareholders while aligning the interests of the group and PTTSB in future construction projects.

Source: The Edge Malaysia

PTT Synergy aims to be a high-tech industrial solutions provider

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The sustainable design approach, which emphasises the use of recycled materials and environmentally friendly technologies, needs to become the primary agenda of the country’s manufacturing industry.

This is to reduce negative impacts on the environment and ensure the preservation of natural resources for future generations, said Investment, Trade, and Industry (MITI) Minister Tengku Datuk Seri Zafrul Abdul Aziz.

In a speech read by MITI deputy secretary-general (Management and Investment), Datuk Bahria Mohd Tamil at the Malaysia Good Design Award 2023/2024 here today, he said that the National Energy Transition Roadmap is among the government’s initiatives to create new sustainable-oriented business opportunities.

This initiative focuses on the use of sustainable and efficient energy, as well as carbon reduction, which is crucial in combating climate change and promoting sustainable development.

He added that the MADANI Government’s main focus this year is to further accelerate the country’s economic growth by prioritising efforts to attract both domestic and foreign investors to invest in Malaysia.

“To this end, various initiatives are being intensified to strengthen investment infrastructure so that Malaysia becomes a leading global investment destination,” he said.

Tengku Zafrul also said that the government strongly encourages the use of artificial intelligence (AI) in all manufacturing industries in Malaysia to provide significant competitive advantages, create new economic opportunities, and improve the quality of life for the people.

“The government believes that a country that masters this technology will lead in global innovation and set new standards in technological development.

“In the design sector, AI applications have transformed the way designers work. It is now used to automate repetitive design tasks or generate complex visual innovations,“ he said.

Tengku Zafrul noted that this technology enables designers to explore various design options more efficiently, simulate usage scenarios, and provide personalised solutions to meet customer needs more accurately, saving time and increasing productivity.

Source: Bernama

Sustainable design should be manufacturing industry’s main agenda – Tengku Zafrul

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Negeri Sembilan’s Halal Malaysia Industrial Park (HALMAS) has received an encouraging response, including a recent request from a New Zealand pharmaceutical company expected to invest RM300 million in the state, said Negeri Sembilan Menteri Besar, Datuk Seri Aminuddin Harun.

“Halal Park in this state is one of the most highly sought-after. I just returned from New Zealand, where a pharmaceutical company is committed to investing and obtaining a halal certificate,“ he told reporters after chairing the state government’s EXCO meeting.

Aminuddin said the state’s HALMAS has attracted several major investors, including Mahsuri Food Sdn Bhd, Ajinomoto (M) Bhd from Japan, Sunshine Bread (M) Sdn Bhd from Singapore, Coca-Cola Bottlers (M) Sdn Bhd and Kellogg’s Malaysia (United States), particularly in Bandar Enstek, Nilai.

“The demand for halal investment is high. There are no new industrial areas and the development of the Techpark@Enstek Phase 3 in Bandar Enstek is almost sold out,” he said.

Aminuddin added that the state government is working to enhance the halal industry among small and medium enterprises to improve the quality of local products.

Deputy Prime Minister, Datuk Seri Dr Ahmad Zahid Ahmad Hamidi, previously reported that the utilisation and development of the 14 Halal Parks across the country remain low, at 11 per cent of the total 5,484 hectares developed so far.

In another development, Aminuddin said that the construction of the Institute of NeuroScience (INS) in Pedas, Rembau which was announced in 2019, had been cancelled due to the COVID-19 pandemic.

Earlier, the media reported that the private medical centre, costing RM1.02 billion, was expected to offer neuro-related health services and generate a development value of RM1.7 billion within five years.

Source: Bernama

New Zealand pharma firm to invest RM300 million in Negeri Sembilan – Aminuddin

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Prime Minister Datuk Seri Anwar Ibrahim has called on investors to participate in the proposed Johor-Singapore Special Economic Zone (JS-SEZ), a move that will further enhance trade and investment linkages between the two neighbouring countries.

Anwar, who is also Finance Minister, said that while JS-SEZ was a collaboration between the state of Johor and Singapore, the idea for such a project originated from the federal government, which it has strongly endorsed.

To this end, he encouraged investors to take part in the JS-SEZ project and take advantage of the Johor Bahru-Singapore Rapid Transit System Link to be completed in 2026.

The RTS Link is a four-kilometre light rail transit shuttle service connecting Bukit Chagar station in Johor Bahru and the Woodlands North station in Singapore.

“We’re just waiting to finalise this and I would even drop into Singapore to meet the potential investors to encourage them. But we have to get the parameters and issues resolved.

“And from the initial briefing by (Economy) Minister Rafizi (Ramli) and (Minister of Investment, Trade and Industry) (Datuk Seri) Tengku Zafrul it seems that we’re very close to a final agreement,” he said in a joint press conference with his counterpart Lawrence Wong.

The establishment of JS-SEZ is expected to further boost trade between Johor and Singapore, akin to the Chinese city of Shenzhen, a success story of a special economic zone.

The JS-SEZ was mooted by Rafizi after a meeting with the Johor state government at Iskandar Puteri in May last year and both countries agreed to take a step further by setting up a special task force to study the establishment of the special economic zone two months after that.

On Jan 11 this year, Malaysia and Singapore signed a memorandum of understanding on the JS-SEZ.

This is Wong’s first overseas trip since being sworn in as Singapore’s fourth prime minister on May 15.

His two-day working visit to Malaysia which ended today at the invitation of Anwar aimed to discuss efforts in strengthening ties and bilateral cooperation between Malaysia and Singapore as well as to exchange views on regional and international issues of mutual concern.

Source: Bernama

Malaysia invites investors to participate in Johor-Singapore Special Economic Zone

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TIONG Nam Logistics Holdings Bhd (KL:TNLOGIS) is confident that the group’s financial situation will improve over the next two quarters as warehouse rental rates in Johor and Kulim hit all-time highs, owing to higher demand for logistics services.

At the same time, the group’s investments in new warehouses, especially the one in Senai Airport City near the Senai International Airport in Johor, have matured and are providing steady returns to Tiong Nam.

“We foresee in the next quarter and the quarter to come that things should get better because we have come to a point where we can leverage the new warehouses [for growth],” says Tiong Nam deputy managing director Victor Ong.

Victor, 43, is the son of Ong Yoong Nyock, founder and largest shareholder of Tiong Nam, with a 53.4% stake.

“Warehouse prices now are at a high, I would say, even in Shah Alam and especially in Kulim. Johor is very good now because of the RTS (Johor-Singapore Rapid Transit System) and property prices.

“In terms of warehousing, we are at a high level [of rental rates across the country],” Victor tells The Edge in a recent interview at the group’s headquarters in Johor Bahru.

The Senai Airport City warehouse — a 1.1 million sq ft mega-warehouse facility — was built at a cost of RM200 million. It is the largest warehouse in Tiong Nam’s portfolio and is leased to Mercedes-Benz for its regional parts logistics.

The warehouse was completed and handed over to Mercedes-Benz in August 2023 and the lease started in November 2023.

According to Victor, warehouse rental rates in Johor Bahru have been rising from roughly RM1.40 psf before the pandemic to between RM1.80 psf and RM2.00 psf currently. Meanwhile, the rates are higher in the ports; Johor’s major ports are Johor Port and Port of Tanjung Pelepas (PTP).

Meanwhile, warehouse rental rates in Kulim shot up from around RM1.20 psf prior to the pandemic to between RM2.50 and RM2.80 psf currently, owing to a severe shortage of warehousing space, says Victor.

Owning warehouses could prove to be a boon for Tiong Nam today, but the group has taken on a lot of debt to build its portfolio. The company operates 96 warehouses and distribution centres across Malaysia, Thailand, Singapore and Laos, with a total warehousing capacity of 7.7 million sq ft as at March 31, 2024.

Tiong Nam had incurred additional costs while the Senai Airport City warehouse was being built due to rising interest rates on the loans taken to build it as well as manpower getting expensive.

“The higher interest rate had cost us an increase of more than RM10 million in finance costs [compared with when interest rates were low during the pandemic],” says Victor.

Indeed, Tiong Nam’s finance costs in the financial year ended March 31, 2024 (FY2024) jumped 44.9% year on year to RM67.45 million from RM46.55 million. Its long-term debts increased by 27.5% y-o-y to RM1.174 billion from RM920.85 million and its short-term debts rose by 6.87% y-o-y to RM400.39 million.

Repayment of term loans increased by 77.17% y-o-y to RM65.59 million from RM37.02 million. At the same time, the group’s bread-and-butter integrated logistics business suffered from razor-thin margins.

For FY2024, Tiong Nam reported a net profit of RM56.97 million, compared with RM28.07 million in the corresponding period. The surge was due to an RM75.47 million fair value gain on several warehousing assets in Johor, including the Senai Airport City mega warehouse.

Stripping the one-off revaluation gain, the logistics and warehousing segment made a pre-tax loss of RM5.94 million in FY2024.

According to Victor, high borrowings should not be an issue for the group, as they are used to grow the business.

“We cannot miss the moment,” he says, when asked about the group’s rather aggressive warehouse building plan and land banking, fuelled by both long- and short-term borrowings.

“We have a bit of an advantage in logistics now because we purchased [warehouses] all the time in the past; so, it can have a direct influence on our pricing. If you rent, the impact [on Tiong Nam’s profitability] would be even bigger [than the impact from the holding costs].

“At least for now, we own most of our properties so that we can have better control over our pricing and become competitive. That’s why we cannot wait; when we have money, we will reinvest in the business.”

Tiong Nam has been investing, betting big on the demand for warehouses in Malaysia, especially in its home state of Johor, where it is building a warehouse on a 9.99-acre site in the PTP with a total built-up area of 820,148.08 sq ft.

In Kedah, Tiong Nam is building a warehouse with a total built-up area of 211,383.85 sq ft on a 10.82-acre tract in Mukim Padang China, Kulim, and a 121,722.58 sq ft warehouse on a 14.73-acre site in Bandar Kulim.

The PTP facility is expected to be completed in September and the Mukim Padang China warehouse is expected to be completed soon. The construction of the Bandar Kulim facility began in March and is expected to be completed within 14 months.

Tiong Nam is also developing a five-storey warehouse in the Sembawang Planning Area in Singapore. The warehouse will have a total built-up area of 228,767.27 sq ft on a 2.47-acre site and is expected to be completed by October.

Victor says the term loans are backed by the rental rates of the warehouses, and now that the Senai Airport City mega warehouse has been completed and is generating revenue for Tiong Nam, the loans are safe.

“All our borrowings are for reinvestment into the business; we use them to grow our business,” he says, adding that while Tiong Nam is operating at a tight margin at the moment, over time, the value of its properties will go up, while the outstanding loan will be reduced.

Tiong Nam managed to maintain its interest coverage ratio above 1.3 times in the last five years, even though finance costs spiked to RM67.45 million in FY2024 from RM47.21 million in FY2020.

In FY2024, however, Tiong Nam’s Ebit (earnings before interest and taxes) was inflated by the revaluation gain to RM141.11 million. Stripping the one-off gain, Ebit would have been RM107.07 million, a level at which Tiong Nam’s interest coverage ratio stood at 1.59 times in FY2024, which is higher than its historical level. This means the company has been able to manage its debts and finance costs over the last five years.

Victor says: “Logistics is a business where you need time — I would say eight to 10 years — to recover your investments … Of course, [we have short-term loans], as we need to roll the business, but why are banks willing to give us long-term loans? Because they know the nature of our business. So, our loan range will not be less than 20 years, sometimes even 30 to 35 years.”

As the group has amassed huge long-term debts, the question of whether it will be spinning off its assets into a real estate investment trust (REIT) has come up again. Talk of Tiong Nam’s undertaking such an exercise had been reported as recently as 2015.

Victor says while the group continues to look at REITs as a possible venture, it has other ways to pare down debts, if needed.

Tiong Nam’s share price has risen nine sen, or 11.43% year-to-date, closing at 78 sen on May 30, valuing the group at RM401 million and 7.12 times its trailing 12-month earnings per share.

Its closest competitor, Swift Haulage Bhd (KL: SWIFT), saw its share price rise 7.14% year-to-date to 57.5 sen, valuing the group at RM507.7 million, with a trailing 12-month price-earnings ratio of 6.79 times.

Source: The Edge Malaysia

Tiong Nam confident of better times ahead as warehouse rental rates soar

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The Malaysia-Singapore Special Economic Zone and the proposed Johor-Singapore Rapid Transit System (RTS) that will be finalised by both countries can have a positive impact on the relationship between the two neighbours that are like brothers.

Economic analyst Dr Oh Ei Sun said Malaysia and Singapore are able to attract investments in the computer and chip industry in addition to having a mature workforce.

“Singapore needs to find a bigger location to invest and build its factories while Malaysia can take advantage of the technology transfer. So, there is potential for the two countries to cooperate in a very broad field.

“If Malaysia and Singapore could cooperate in advanced fields, such as artificial intelligence (AI), it would make both countries a centre of high technology development in Southeast Asia,” he said as a guest on the Malaysia Petang Ini programme, broadcast live on Bernama TV on Wednesday.

Oh said this when commenting on the strengthening of Malaysia-Singapore bilateral relations in conjunction with Singapore Prime Minister Lawrence Wong’s maiden visit after being appointed as premier of the republic on May 15.

According to Oh, detailed information about the special economic zone needs to be clarified such as whether there will be tax exemptions and so on to encourage investment.

He hoped that the details of the Malaysia-Singapore special economic zone would be one of the focuses at the 11th Malaysia-Singapore Leaders’ Retreat at the end of the year.

Oh said another issue between Malaysia and Singapore that needs to be resolved is the congestion at the Johor Causeway due to the high number of Malaysians working in Singapore and commuting daily.

“This problem may be resolved by extending the MRT from Singapore to Johor Bahru. But all this needs coordination,” said Oh.

On global issues such as climate change, he said the problem affects Malaysia’s agricultural sector and Singapore’s position as an island city. Therefore, cooperation in dealing with climate change can benefit both parties.

As for issues at the Asean level, Oh said the cooperation between Malaysia, Singapore and possibly involving Indonesia in dealing with the crisis in Myanmar could increase the spirit of togetherness in the bloc.

Wong arrived in Malaysia for a two-day working visit on Tuesday at the invitation of Prime Minister Datuk Seri Anwar Ibrahim.

Source: Bernama

Malaysia-Singapore Special Economic Zone able to become global high-tech hub: Analyst

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As Malaysia’s digital and technology market surged in 2017, PPG strategically positioned itself to leverage this momentum, aiming to bolster its market presence through innovative digital solutions.

PPG is a US$18.2 billion Pittsburgh, United States-based paints, coatings and specialty chemicals company and one of the largest in the world. PPG’s manufacturing facility in Petaling Jaya was incorporated on Nov 5, 1996.

This was further exemplified by PPG’s investment in its Malaysia Global Technology Centre in 2018.

Since then, the techn o logical hub has grown from 25 information technology (IT) professionals of O ra c le and systems, applications and products (SAP) to more than 160 employees across different IT functions.

PPG chief information officer Bhaskar Ramachandran anticipates robust growth ahead for the Malaysia Global Technology Centre and for it to become a global hub for innovation and expertise.

“With strategic focus on data analytics, artificial intelligence (AI), machine learning, SAP, infrastructure and cloud development, we envision expanded investment and heightened growth opportunities. “Looking beyond Asia Pacific, which currently contributes 16 per cent to our global revenue, we eagerly look at Kuala Lumpur to support our different businesses across the globe, driving transformative solutions and fostering ternational collaboration,” he said.

According to Bhaskar, PPG’s data analytics centre of excellence handles data from major enterprise resource planning (ERP) systems like Oracle, SAP and QAD, while the SAP centre of excellence continues to expand with teams across operations, basis, development, integration and testing.

He said that through collaborative efforts with the company’s digital centre of excellence’s research and development, the science and technology centre of excellence continued to leverage AI and machine learning tools to standardise colour formulations and connect PPG laboratories across its global platforms using its range of colour tool software.

“Our telecommunication, networking and global service desk teams, under the Infrastructure centre of excellence, are continuously working towards network modernisation, automation development and cloud-only strategy. “While PPG’s IT security and compliance play a pivotal role in safeguarding our assets and information by assessing current cybersecurity trends, we optimise risks and compliance through our investments in hybrid cloud protection, asset and data protection as well as identity management,” he added.

InvestKL chief executive officer Datuk Muhammad Azmi Zulkifli said: “Greater KL has emerged as a beacon of innovation and collaboration, providing fertile ground for the expansion and transformative endeavours of global corporations like PPG.

With a focused strategy aimed at nurturing innovation and cultivating a dynamic business ecosystem, PPG’s presence in Greater KL, notably its global technology centre, serves as evidence of the region’s capacity to catalyse transformative solutions and facilitate international collaboration.

“Through harnessing the capabilities of data analytics, AI and machine learning, Greater KL rises not just as a regional hub but also as a global epicentre of innovation and technology.” Bhaskar said PPG, with a mission to protect and beautify the world, had always prioritised sustainability in its business. He said the company’s dedicated sustainability organisation focused on advancing environmental, social and governance (ESG) goals.

“After an assessment in 2022, we have set 2030 ESG targets. Currently, 39 per cent of our sales come from sustainably advantaged products, and we’re committed to reaching 50 per cent sales from such products by 2030. “Looking ahead, PPG’s products aim to contribute to a more sustainable future by extending the useable lifespan of bridges and buildings, reducing energy use and greenhouse gas emissions by eliminating curing stages in automotive coatings and sealants, enabling infinitely recyclable aluminium food and beverage packaging, and even improving the fuel efficiency for airplanes and cargo ships.

“PPG, in collaboration with the PPG Foundation, remains committed to community efforts in advancing education, delivering community sustainability and encouraging employee volunteerism,” he said.

Bhaskar said PPG had completed more than 500 projects in 50 countries since 2015, through initiatives such as the global “COLORFUL COMMUNITIES” that aimed to brighten community spaces.

Closer to home in Malaysia, Bhaskar said PPG had just transformed Pusat Pemulihan Dalam Komuniti in Kuala Kubu Baru.

He noted that as part of its educational goals to build the nextgeneration of diverse and innovative science, technology, engineering and mathematics leaders, the company had partnered with 42KL, an educational subsidiary of Sunway Educational Group.

42KL, now expanded to 42Malaysia, aims to deliver educational opportunities to individuals residing in Malaysia regardless of socioeconomic status and educational background.

PPG has pledged an initial grant of RM150,000 and continues to engage with 42Malaysia to support the pioneering development in technological education.

PPG, incorporated in 1883, operates primarily in two segments, namely performance coatings and industrial coatings.

For more than 140 years, the company has been dedicated to developing and delivering paints, coatings and specialty materials that have earned the trust of its customers.

Like most global businesses, PPG explored regional strategic flexibilities to streamline operations, leading to the creation of the Malaysia Asia Pacific shared service centre.

Partnering with government agencies like InvestKL, PPG’s shared service centre, which initially focused on finance, now handles multiple functions including finance, human resources, IT, master data, security, procurement and supply chain.

The shared service centre employs more than 400 diverse professionals, and PPG believes that its greatest strength lies in the diversity of its people.

Bhaskar said the company prioritised their wellbeing by ensuring they were safe, healthy, engaged and valued by continuously delivering improvements on its 2025 targets on diversity, equity and inclusion.

This includes a commitment to achieve 34 per cent to 36 per cent representation of global female professionals and total global employee resource network and diversity, equity and inclusion capabilitybuilding participation of 50 per cent by 2025.

In addition, PPG has almost 55,000 courses currently available for all employees.

Source: NST

Greater KL powering PPG’s success

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Singapore Telecommunications Ltd, commonly known as Singtel, is believed to be the latest international company to be setting up a data centre in Johor, Malaysia.

Singapore-listed Singtel, via its regional data centre business Nxera, is said to be in talks with Malaysian authorities to set up a data centre in Iskandar Puteri in the southern state, sources told The Edge.

According to its website, Nxera currently operates two data centres in its home country of Singapore, namely DC West and Kim Chuan 2. Another data centre, DC Tuas, is currently under construction and is expected to be operational in 2025.

Besides that, Nxera is also currently constructing a data centre in Thailand, and another one in Indonesia.

Interestingly, property developer UEM Sunrise Bhd (KL:UEMS) said on Tuesday that it is selling land for RM144.9 million cash for the development of a data centre in Johor.

Coincidentally, the two parcels of freehold land measuring about 11.7 hectares (28.9 acres) are also located in Iskandar Puteri.

UEM Sunrise did not disclose the identity of the buyer, merely referring to it as “a leading global data centre industry player”.

Notably, Malaysia has taken a somewhat liberal approach in welcoming companies from around the world to set up data centres in the country to boost its ambition to become a regional data centre hub.

From 2021 to 2023, Malaysia approved RM114.7 billion worth of investments in data centres and cloud services, creating 2,325 high-value jobs in specialised fields such as data scientists, data analysts, data engineers, cybersecurity analysts, and network engineers, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

The minister announced on Tuesday that his ministry is developing special incentives for AI data centres, as part of the government’s show of commitment to accelerate the nation’s digital transformation agenda across all sectors, while also facilitating the transition to a high-income economy.

Last month, Google announced that it has committed to investing US$2 billion (RM9.43 billion) in Malaysia to develop its first data centre and Google Cloud region in the country, which will be located in Sime Darby Property Bhd’s (KL:SIMEPROP) Elmina Business Park in Selangor.

Earlier in May, Microsoft Corp unveiled its plan to invest US$2.2 billion (RM10.38 billion) over the next four years in cloud and AI infrastructure in Malaysia.

Bridge Data Centres, a firm backed by Chinese tech firm ByteDance, had also in February announced its expansion to Cyberjaya with the development of its third data centre, MY02.

Meanwhile, China-based GDS Holdings had in March announced that it has already invested RM14.33 billion in Johor with the opening of two data centres in Nusajaya Tech Park and Kempas Tech Park.

Back in 2023, Amazon Web Services said it planned to invest US$6 billion (RM28.16 billion) in Malaysia by 2037 to strengthen its cloud services infrastructure in the country.

In the same year, YTL Power International Bhd (KL:YTLPOWR) confirmed that it is collaborating with Nvidia Corp to build an AI infrastructure that will be powered by the US-based chip giant’s technology, with the first phase of the data centre expected to commence operations by the middle of this year.

Source: The Edge Malaysia

Singtel in talks to build data centre in Johor — sources

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Malaysia’s window of opportunity to develop itself into a semiconductor powerhouse is deemed small, as the period spans just five to 10 years amid the realignment of the global supply chain, according to Deputy Minister of Investment, Trade and Industry Liew Chin Tong.

Due to the current US-China trade war and the reorganisation of the global supply chain, Malaysia now has a once-in-a-generation opportunity to grow at a high speed, Liew said in his speech at Invest Asean 2024 held in Penang on Monday. Liew’s speech is also available on his website.

“Malaysia has a second chance and a small window of opportunity to develop itself into a more dynamic, resilient and ‘sticky’ supply chain that would bring more technology owners to invest here, and to grow more Malaysian technology owners,” he said.

Liew said that over the past several months, Malaysia’s semiconductor industry, specifically the Penang-Kulim cluster, has been in the global limelight.

He noted that Malaysia contributes to 7% of global semiconductor trade, 13% of global back-end trade, and 23% of the US’ semiconductor trade.

“We want to be a nation getting rich by developing technologies, and not just getting rich by buying and selling lands or oils or minerals,” he said.

Liew said the government’s newly announced National Semiconductor Strategy (NSS) showcases the current administration’s effort to raise the game for the semiconductor industry, and to place the attention of everyone, including the government-linked companies (GLCs) and government-linked investment corporations (GLICs), on the sector.

“At the same time, we are clear-eyed. The Penang and Kulim experience will guide us into the future: that we need quality FDIs (foreign direct investments), we need to build an even stronger ecosystem as today’s corporations care very much about supply chain resilience, and to grow to greater heights, we need to unleash the entrepreneurial spirit in technology,” he said.

Source: The Edge Markets

Deputy Miti minister: Malaysia has five- to 10-year window to seize opportunity from global supply chain reorganisation

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Malaysia should seek alternative energy sources to replace diesel in light of the subsidy rationalisation exercise, says Sarawak Premier Tan Sri Abang Johari Openg.

He said Sarawak is now actively exploring hydrogen as a renewable energy, including reducing its production cost.

“Find an alternative to diesel, then you don’t need any subsidy.“Why should we be talking about diesel when we have hydrogen?” he told reporters after opening the Asia Pacific green hydrogen conference yesterday.Abang Johari was asked about the Federal Government’s decision to float the diesel price in Peninsular Malaysia effective yesterday.

The price of diesel in the peninsula is set at RM3.35 per litre, based on the unsubsidised market price according to the Automatic Pricing Mechanism formula for last month.

Finance Minister II Datuk Seri Amir Hamzah Azizan revealed that the weekly retail price of unsubsidised diesel will subsequently be announced every Wednesday, based on the formula.

In Sabah, Sarawak and Labuan, the diesel price remains at the subsidised rate of RM2.15 per litre.

Abang Johari also said there would be no need for petrol and diesel once the cost of hydrogen could be reduced.

“That is the solution. If we are still using diesel, people will keep asking for subsidies.

“Why can’t you have cheap alternative energy so you don’t have to use diesel?” he said.

In his speech earlier, Abang Johari said the Sarawak government, in collaboration with PETRONAS, had lowered the electricity requirement to produce 1kg of hydrogen from 60kW to 38kW.

“This advancement aims to cut hydrogen production cost by 50% and beyond, significantly enhancing its viability and competitiveness as an energy source,” he said.

Abang Johari also unveiled the Sarawak Energy Transition Policy (SET-P), which incorporates renewable energy sources and technology to ensure a clean and sustainable future.

He said it would focus on four main sectors comprising power, transportation, industry and buildings, as well as eight types of energy and technologies.

“These include renewable energy, hydrogen, energy efficiency, green mobility, synthetic fuels, bioenergy, oil and gas, and carbon capture, utilisation and storage (CCUS),” added Abang Johari.

Source: The Star

Abang Jo: Seek alternative energy sources such as hydrogen

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Malaysia has approved RM114.7 billion worth of investments in data centres and cloud services between 2021 and 2023, said Prime Minister Datuk Seri Anwar Ibrahim.

In a post on X (formerly known as Twitter), he said these investments have created 2,325 high-value new jobs in specialised fields such as data scientists, data analysts, data engineers, cybersecurity analysts, and network engineers.

He said that the MADANI Government is committed to positioning Malaysia as a sustainable Artificial Intelligence (AI) Data Centre destination in Southeast Asia, as part of its effort to strengthen the country’s position as a leading global investment destination.

Earlier on, Anwar, who is also the Finance Minister, had chaired the 4th National Investment Council (NIC) meeting for the year.

He said the NIC had agreed for the Ministry of Investment, Trade, and Industry (MITI) to enhance the current incentive framework for AI data centres via the Malaysian Investment Development Authority (MIDA).

This includes the mechanism on the usage of energy and water-efficient equipment, as well as collaboration with the Ministry of Energy Transition and Natural Resources to provide sufficient renewable energy for AI data centres, the Prime Minister said.

“During the meeting, I had emphasised a whole-of-government approach in the ongoing efforts to encourage investment in AI-based data centre sectors, particularly in boosting economic benefits through digitalisation and increasing the economic complexity of various sectors in Malaysia.

“The framework will also include matching data centre players with local companies for the development of local vendors, especially small and medium enterprises, as well as fostering industry-academia collaborations to drive innovation in the development of energy-efficient equipment and software,” he said.

Earlier today, MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz posted on X that MITI, via MIDA, will develop a special incentives framework for AI data centres.

Source: Bernama

Malaysia approved RM114.7 bln investments in data centres, cloud services from 2021 to 2023

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Malaysia needs to integrate technology into its economy to escape the middle-income trap, said Deputy Investment, Trade and Industry Minister Liew Chin Tong.

He said Malaysia must prioritise acquiring and incorporating technology into its economy beyond just attracting foreign direct investment to advance.

“Investment is important, but we need to infuse … infusion of technology is important, and we have to move to innovation. In the New Industrial Master Plan (NIMP), we use the word ‘tech-up’. Tech-up in our vocabulary, we mean more digitalisation, more automation, more AI and more innovation,” he told reporters at the Keynote Lecture: Economic Growth in Middle Income Countries: How Can Countries Escape the Middle-Income Trap today.

He explained that this means adopting technology across all sectors and eventually emerging as innovators.

“This is a trajectory that we have to go through,” he said.

He mentioned that the World Bank defines high-income as earning around US$15,000 (RM70,800) per person which Malaysia is almost reaching.

“It is not difficult to achieve because you’re talking about US$15,000. It can just be the ringgit appreciating that you already reached, because we are already almost there. But it is not so much of just achieving numerical high-income. It is really about the economy becoming a very dynamic, vibrant and technological base,” he said.

Liew explained that this means Malaysia does not just follow others in the economy, but leads as a trendsetter and innovator in technology.

“At that point of time in 1994, the question was, can Malaysia in terms of technology become more like South Korea or Taiwan? We are still asking the same question. We are still dealing with the same question, whether we can be a lot more like South Korea or Taiwan in terms of technology,” he said.

Liew stated that China has rapidly advanced in technology, “leapfrogging” ahead, and has now become an innovator in the field.

“We have to be an innovator, but in order to be an innovator, we need to infuse technology, we need to have a cross-support adoption of technology, and of course we need investment,” he reiterated.

Liew pointed to Malaysia’s comprehensive economic policy framework aimed at modernising and advancing the economy under Prime Minister Datuk Seri Anwar Ibrahim.

He stated that Malaysia aims for its economy to advance in technology, becoming both wealthier and more technologically driven as a society.

“With the Economi Madani framework, followed by the National Energy Transition Roadmap, and followed by, recently Prime Minister launched the National Semiconductor Strategy, together with the new industrial master plan 2030 (NIMP 2030). These are all policy frameworks that we want to guide Malaysia to green transition, to technological upgrade, and hopefully play a very important role in the global semiconductor industry,” he said.

He noted Malaysia’s first economic boom from 1988 to 1997 and hopes for a new period of strong economic growth.

“If we can play a very important role in the global semiconductor industry, which is the frontier industry, and if we can move up from the back end of a semiconductor to more front end, a lot more design, and a lot more technological input, a lot more innovation, we will be moving up not just numerically, not just in the measurement of a high-income country, but genuinely we want to see a second economic takeoff for Malaysia,” said Liew.

Source: The Sun

Liew: Malaysia needs to integrate technology into economy to escape middle-income trap

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