The upcoming ENERtec Asia 2024 will enhance its focus on Battery Energy Storage Systems (BESS) with the introduction of a new segment: battery and electric vehicle (EV) tech (energy storage and EV technology and solutions).

ENERtec Asia, organised by Informa Markets, will be held from 26 to 28 June 2024.

Informa Markets Gerard country general manager Leeuwenburgh said including battery and EV tech marked a turning point for Southeast Asia’s BESS industry.

“This positions Malaysia as a leader in the region’s energy transformation by accelerating innovation and attracting investment in BESS solutions,” he said.

Malaysian Investment Development Authority (MIDA) chief executive officer Sikh Shamsul Ibrahim Sikh Abdul Majid said the transformative power of BESS in Malaysia extends far beyond environmental benefits.

“With incentives like the Green Investment Tax Allowance (GITA), we’re creating an enticing platform for both local and international renewable energy investors.

“The integration of BESS is a monumental leap forward for Malaysia, propelling us toward a future powered by green energy,” he said in a joint statement from MIDA and Informa Markets today.

Sikh Shamsul said they anticipate significant emissions reductions, enhanced grid reliability, and a surge in green investments. Malaysia is on track to become a global hub of sustainable development and environmental stewardship.

The statement said that aligned with Malaysia’s ambitious goal of becoming a net-zero emission nation by 2050, MIDA has formed a strategic collaboration with Informa Markets to drive innovation, attract investment, and position Malaysia as a leader in the region’s energy transformation.

“The nation is also strategically positioned to leverage BESS to achieve its 2050 renewable energy target of 70 per cent.

“Under the Malaysia Renewable Energy Roadmap (MyRER), the nation outlines targets and investments for BESS projects as part of its energy transition plan,” the statement added.

Source: Bernama

ENERtec Asia 2024 enhances focus on BESS by introducing battery and EV tech segment

A CHINA-owned company, Tenpower, that manufactures lithium-ion batteries, held a topping-out ceremony in Banting, Selangor.

The company’s growth is expected to create numerous job opportunities for Malaysians living in Selangor.

State investment, trade and mobility committee chairman Ng Sze Han said the new facility would help people acquire new skills and boost productivity, ultimately leading to higher wages for Malaysian workers.

“We will try our best to provide workers with training to develop their technical skills and professionalism.”

Ng emphasised the importance of combining cutting-edge technology with professional training to enhance production, which would result in higher wages.

Source: The Star

New lithium-ion battery factory in Banting to create jobs for locals

As the National Semiconductor Strategy (NSS) sets out to transform Malaysia into a global powerhouse in the semiconductor industry over the next decade, industry players are eager and ready to propel themselves upward.

Industry players, both local and international, believe there are tremendous business opportunities offered under the NSS that need to be exploited strategically rather than being left out.

Malaysian Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai said the NSS will not only support and further boost the country’s value chain globally, it will also spur its advanced packaging, equipment and automation technology.

He said Prime Minister Datuk Seri Anwar Ibrahim’s NSS announcement at Semicon Southeast Asia 2024 on Tuesday demonstrated Malaysia’s seriousness in developing its semiconductor industry to greater heights.

“The fact that the government has allocated RM25 billion to support all NSS’ efforts is a real testimony that our country is very committed to the semiconductor industry and wants it to grow.

“The opportunity is huge, given this industry is projected to grow to U$1 trillion (RM4.71 trillion) (in revenue) by 2030 globally. There are even forecasts that it (the revenue) will go beyond that by the time it reaches 2050,” he told Bernama when met at Semicon Southeast Asia 2024, the largest congregation of supply chain companies in the semiconductor and electronics industry.

Therefore, Wong urged local players to seize all the advantages and opportunities resulting from the NSS.

Meanwhile, Daan de Cloe, managing director of foreign investments and international trade at Dutch public organisation Brabant Development Agency (BOM), said the announcement of NSS highlighted Malaysia’s strong ambition to grow further in the industry.

De Cloe said that Dutch semiconductor industry players possess ample knowledge and technologies and are ready to build an ecosystem together in Malaysia and contribute to its growth.

He noted that Malaysia’s semiconductor industry has grown significantly over the past few decades.

“It (the Malaysian semiconductor industry) has shown significant growth, and looking at the current ambition (through the NSS), it will continue to grow for the upcoming years.

“It will increase the attractiveness for foreign companies to come here and invest and share their knowledge about semiconductors,” he said.

De Cloe hoped Malaysia could produce more high-skill labour to fulfil its needs and requirements.

“We hope that we will get sufficient talents and also build the required skill labour that we need to establish the supply chain, the high technology supply chain that is required to build a complex machine,” he said.

Echoing de Cloe, Zilian (Malaysia) Sdn Bhd executive director Kon Qi Yau agreed with the government initiative to develop a global research and development (R&D) hub for semiconductors, featuring world-class universities, corporates, and centres of excellence and train and upskill 60,000 highly skilled Malaysian engineers.

“Previously, some people might think that in terms of R&D (the adoption) of new and advanced technology, Malaysia is slightly behind Singapore,” he said, adding that this perception can be overturned via this initiative.

Kon also hopes that this initiative will include students at the primary, secondary, and tertiary levels.

“We need skilled labour because, for the past 15 years, Malaysia has only focused on outsourced semiconductor assembly and testing.

“So when we want to go to the front-end wafer fabrication, we definitely need more technical people on the wafer fabrication side,” he elaborated.

Meanwhile, Invest Penang chief executive officer Datuk Loo Lee Lian said that when mapping Asian countries’ strengths across the semiconductor value chain, it is evident that Malaysia’s competitive advantages lie in integrated circuit (IC) design, advanced packaging, and equipment manufacturing.

“We applaud the NSS for accurately identifying these as the strategic verticals for Malaysia to build on.

“We need to be strategic with the targeted RM500 billion foreign direct investment to ensure it includes opportunities for local participation in the supply chain, equity, technology and intellectual property (IP) ownership and that the RM25 billion allocation in fiscal support will be directly used to spur local startup and entrepreneurship,” she said.

Loo added that the human resource vertical should take a holistic approach to addressing the current technical shortages and building a sustainable pipeline for science, technology, engineering, and mathematics (STEM) talents.

Anwar, while unveiling the NSS last Tuesday, said that among the businesses Malaysia aimed to focus on in the NSS are IC design, advanced packaging and manufacturing equipment, and wafer fabrication.

NSS, which is described as a robust, agile, inclusive and forward-thinking strategy for the semiconductor industry, is structured in three phases to foster collaboration with companies across Asean, Asia, and the global stage.

Source: Bernama

Industry players poised for growth under National Semiconductor Strategy

As the ‘Silicon Valley of the East’ with business friendly policies and a robust electric and electronic (E&E) ecosystem, Penang is ready to anticipate more high-impact investments from China in the years to come, said Chief Minister Chow Kon Yeow.

He said China’s approved investment in Penang as of 2023 had amounted to an astonishing RM1,799.6 million, with the presence of more than 50 Chinese multinational corporations (MNCs) across the state.

He said this had the potential of providing almost 2,000 job opportunities to the people of Penang.

“In tandem with missions stated in the National Industrial Master Plan 2030 (NIMP 2030) and National Energy Transition Roadmap (NETR), China has the potential to assist in the nation’s agenda of resetting industrialisation and attracting high quality investments.

“China’s ‘X-factor’ may be potent in the field of manufacturing including E&E and Semiconductor (IC Design and Wafer Fabrication), digital technology investments such as big data analytics, Artificial intelligence and robotics,” he said during a reception in celebration of the 50th Anniversary of the Establishment of Diplomatic Relations between China and Malaysia here on Friday night.

Touching on tourism, Chow noted that China was ranked top five within the tourist arrival chart in Penang with a total of 37,711 Chinese tourists recorded through Penang International Airport (PIA) while 10,864 recorded through the Swettenham Pier Cruise Terminal here.

He said availability of direct flights from Penang to China including China Southern Airlines (Guangzhou), Xiamen Airlines (Xiamen), Cathay Pacific and Airasia (Hong Kong), had eased the connectivity between two countries.  

Meanwhile, China’s consul-general in Penang, Zhou Youbin said China had full confidence and expectation on Penang to strengthen cooperation with China’s provinces and municipalities.

“Projects such as the Penang Second Bridge, Teluk Bahang Dam and the expansion of the Mengkuang Dam are the successful examples of pragmatic cooperation between China and Malaysia at the subnational level,” he said.

Zhou concluded that since its establishment in 2015, the Chinese Consulate General in Penang had always been committed to deepening local exchanges and cooperation between China and Malaysia, besides striving to provide a source of driving force for the development of China-Malaysia relations.

China is Malaysia’s largest trading partner and a major foreign direct investment (FDI) source. In 2023, China was among the five largest sources of foreign investment into Malaysia with a total investment worth US$3.15 billion.

Source: Bernama

With robust E&E ecosystem, Penang anticipates more high-impact investment from China

Malaysia can remain a significant player in the global semiconductor market by ramping up capacity and attracting more investments into the sector, technology company Siemens Malaysia Sdn Bhd said today.

President and chief executive officer Tindaro Danze, said ongoing technological developments and investments are essential as many sub-industries depend on semiconductors, reflecting the interconnected nature of modern technology and manufacturing.

Morever, the semiconductor industry is a major contributor to Malaysia’s economy, contributing between 25 per cent to 30 per cent of the country’s gross domestic product (GDP).

“This indicates that a significant portion of Malaysia’s economic output is tied to the semiconductor sector,” he told reporters on the sidelines of the Semicon Southeast Asia 2024 conference.

He said there are set to be 74 semiconductor fabrication plants (fabs) in Southeast Asia between 2023 and 2027, and it is expected that eight of the fabs will be established in Malaysia, demonstrating
the country’s important position within the regional semiconductor landscape.

“Malaysia needs to keep pace with these trends to avoid falling behind other countries,” he added.

Malaysia chalking up significant investments

Danze said that Malaysia is chalking up significant investments this year, from companies like Infineon Technologies AG, which indicates positive prospects for the country.

“Global players are very mindful where they put their investments (and) they want to diversify.
“They learnt from the COVID-19 (times). They do not want to put all the eggs in one basket, so they are looking for alternatives.

Malaysia makes a pretty good alternative because the ecosystem needed to feed the semiconductor is already here,” he said.

In talks with Selangor state government

Danze said Siemens is not only a manufacturing company but is also looking into utilities, such as the water industry. It is in talks with the Selangor government to resolve state water woes.

According to Danze, Selangor has an extensive water piping network of about 35,000 kilometres.

He emphasised that these pipes are old, which could lead to frequent bursts, leaks and non-revenue water which refers to water that is produced but not billed to customers due to leaks and waste.

He said non-revenue water accounts for 25 per cent to 30 per cent of treated water loss in Malaysia versus five per cent in some other countries (European countries).

Danze also said Siemens has proposed to the state government to use digital twin technologies to create a digital model of the water network and detect potential leaks by monitoring changes in pressure and flow rates.

Hence, the idea of creating a digital twin involves making a digital replica of a physical system — in this case, the water piping network.

He said this technology can be applied across various applications and industries.

A digital twin is a virtual representation of a physical device or fab, and it can be used to simulate and optimise operations for quicker identification and leak repairs, significantly reducing water wastage.

The software can also predict potential pipe bursts, enabling preemptive maintenance. There are a lot of savings to be derived from the technology because it can reduce water loss and improve the efficiency of the water supply system; quick detection and repair of leaks prevent prolonged water wastage.

Source: Bernama

Boosting semiconductor capacity, investments vital to maintain global market position – Siemens

The project is said to be broadening its scope to encompass talent development, R&D and urbanisation efforts 

ONCE dubbed a ghost town, Tanjong Malim, Perak is set to emerge as a global automotive hub. 

The strong belief in Tanjong Malim’s potential to achieve the status of “Motor City Detroit” and Wolfsburg in Germany aligns with the development of the Automotive High Technology Valley (AHTV) Project, which includes plans to produce new energy vehicles. 

In fact, the project is also reported to expand to include talent development, research and development (R&D), and urbanisation. 

Universiti Pendidikan Sultan Idris (UPSI) Faculty of Human Sciences’ Department of Geography and Environment lecturer Assoc Prof Dr Yazid Saleh said this is realistic although it seems distant. 

According to him, the development of Tanjong Malim as the nation’s automotive hub will be driven by two major factors: The relocation of Proton Holdings Bhd factory operations from Shah Alam, Selangor by 2027 and the AHTV, a RM40 billion joint venture between China’s auto giant Zhejiang Geely Holding Group Co Ltd and DRB-HICOM Bhd. 

“Following Proton’s relocation to Tanjong Malim, according to Perak Mentri Besar Datuk Saarani Mohamad, a total of 3,000 Proton workers have been transferred from Shah Alam to Tanjong Malim, with the number expected to increase to 10,000 workers by 2027. 

“By 2027, a total of 50,000 people, including Proton workers and their families are expected to be relocated from Shah Alam to the Proton City area. 

“The relocation will also attract existing and new Proton vendors to Proton City,” he told Bernama. 

For the record, Proton City was established circa 1990 and is located between the towns of Tanjong Malim and Slim River. Car production at the factory was supposed to start in 1998 but was postponed due to the 1997 Asian financial crisis, with factory operations only beginning around November 2003. 

New Gen Car Manufacturing 

Elaborating on AHTV, Yazid said the project explores new areas of collaboration, including new-generation car manufacturing through a project covering an area of 404.69ha, complementing previous national planning such as the National Physical Plan (2005). 

“Tanjong Malim-Proton City is categorised as a city with its own unique characteristics under the Special Industrial City category along with Peramu (Industrial Estate) and Kulim (Hi-Tech Park). 

“This is detailed through the Perak State Structure Plan (2001-2020), which designates Proton City-Tanjong Malim-Behrang as the state’s Silicon Valley (in the context of the automotive industry). It also ranks as a Sub-Regional Centre of the state. 

“Again, the emphasis on Tanjong Malim as an automotive city is reflected in the Perak State Structure Plan 2040 through the Northern Corridor Economic Region’s Regional Strategic Growth Sector, where one of its strategies is to develop Tanjong Malim as a leading automotive centre in South-East Asia,” he said. 

He explained that according to the latest plans, Proton and Geely will produce electric vehicles (EVs), hence drawing more EV vendors to Tanjong Malim due to this new technology. 

“Geely is also said to be interested in setting up a university to train and develop young talents in technical and vocational education and training and automotive technology. 

“If all goes smoothly, this will create tens of thousands of job opportunities for local youth and contribute to the development of Tanjong Malim in particular, through the chain of workers-salary-spending-economy- development,” he said. 

Proton City’s Limited Success 

Commenting on the failure of the Proton City project, which is seen as unsuccessful in elevating Tanjong Malim, Yazid said Proton, as Malaysia’s first car manufacturer (an endeavour that dated back in 1984), recorded high profits until 2010 due to the lack of competition and the high import automotive policy (import tax) imposed. 

“However, with Asean Free Trade Area 2010, the National Automotive Policy was amended, leading to the liberalisation of car prices in Malaysia. 

“Inefficient policy management and the previous government’s decision to open the domestic market to all cars without giving Proton a chance to enter foreign markets made it difficult for Proton to compete with major automotive companies from other countries. 

“Proton was hard hit by the presence of these giants in the market, with declining sales due to questionable product models and quality,” he said. 

He added that a significant drawback was that Proton Tanjong Malim only assembled a few models in the past, namely Gen 2, Persona and Preve (less popular models). 

Tanjong Malim’s Development Progress

However, Yazid said that the latest investment developments indicate Tanjong Malim is on the path to development, albeit at a slow pace. 

“Four main indicators can explain this situation. First, population growth based on the 2010 census showed an increase 10 years later (2020), from 50,575 to 76,688 people. 

“Second is employment changes; the number of employees in the manufacturing sector grew at only 6.7% in 1980, with a 7.4% growth in 1991; it rose further to 10.6% and 18.5% in 2000 and 2010 respectively. The number is expected to rise to 20 to 21% by 2020,” he said. 

Commenting further, he said the services 

sector in 1980 only contributed 5.7%, but in 2000, it increased to 15.5%, 17.3% in 2010 and an estimated 18% to 19% by 2020. 

“The next indicator is land use changes. Although 51% of the Muallim District is agricultural, land use has since changed significantly with the focus on the development of Tanjong Malim-Proton City. Commercial and residential areas have sprouted, replacing agricultural land with industrial land being primarily utilised for Proton City. 

“Fourth, changes in the supply of goods and services; small towns usually offer basic goods for the population and the agricultural sector, but in Tanjong Malim, the situation is different. Recently, high-level goods and services have started to make their presence here,” he said. 

UPSI’s Role 

“Without a doubt, UPSI plays a crucial role in boosting the development of Tanjong Malim, hence shedding the district’s ‘ghost town’ image,” Yazid said. 

“It is unfair to call Tanjong Malim a ‘ghost town’ because a ghost town is a town that has lost its function and population. 

“Examples of ghost towns are towns that were initially tin mining areas like Temoh and Chenderiang in Perak and Sungai Lembing in Pahang, among others. 

“It’s just that Tanjong Malim’s development is relatively slow and not drastic,” he said, adding that UPSI in this context has brought about fundamental changes in Tanjong Malim’s economy from primary industry (the main) to services. 

He explained that this was brought about by the presence of the workers and students, leading to a multiplier effect that eventually brought many changes in terms of physical offerings and services to Tanjong Malim. 

“Overall, the presence of many UPSI students and staff accelerates Tanjong Malim’s population and economic growth. 

“UPSI generates income from outside the area because a significant portion of the salaries received by workers is sourced from the federal government,” he said. 

According to him, students also play a role in bringing in income from outside the area, mainly through their education loans. 

If a student receives assistance from the National Higher Education Fund Corp, the loan amount received by each student (before deducting tuition fees) for each semester over eight semesters at UPSI is approximately RM3,500 per semester. 

UPSI’s existence also helps propel the growth of ancillary sectors such as catering, cleaning and local employment. 

“In terms of spending contributions, take a simple calculation, if an UPSI student spends RM10 a day for daily expenses x 30 days = RM300, with 21,558 Bachelor’s Degree students and 2,424 diploma students, totalling 23,682 students, round it up to 23,000, so RM300 x 23,000 = RM6.9 million a month spent in Tanjong Malim (excluding staff), hence UPSI provides spin-offs for the supply of goods and services in Tanjong Malim,” he said. 

Proton Needs to Go Global 

However, he said, in line with the investments made, Proton itself needs to have future plans, including by preparing itself for the global stage (becoming a world brand). 

Meanwhile, UPSI Faculty of Human Sciences’ Department of Malaysian Studies lecturer Muhammad Nadzir Ibrahim believes that Proton’s strategy to become one of the top three automotive companies in Asean by 2027, with plans to re-enter two of the region’s largest markets, Indonesia and Thailand, is excellent and forms the basis for this aspiration. 

“If this succeeds, the goal will be achieved, and Proton itself must be prepared to produce products that can compete internationally,” he said. 

Commenting on Tanjong Malim’s development plans, Muhammad Nadzir believes the focus should be on providing infrastructure for the community and other facilities such as affordable housing and new schools, which need to be expedited from now. 

Additionally, local authority services need to be improved, and environmental issues such as waste, drains and grass should not be taken lightly. 

“Although current dissatisfaction with services may be low, preparation is crucial because as the population grows, so will their demand. 

“All these play a role in supporting the needs and providing comfort to the expected growing population. 

“Currently, small urbanisation issues such as flash floods and river pollution have begun to be detected, and related parties need to be prepared to address these issues,” he said. 

He added that there are many more special features of Tanjong Malim that can be developed as eco-tourism, such as the UPSI Adventure Park, Ujana Muallim and Sungai Bil.

Source: Bernama

AHTV poised to transform Tanjong Malim into global automotive hub

Taiwan-based semiconductor companies are optimistic about business prospects in Malaysia’s semiconductor industry, given its solid foundation and thriving semiconductor ecosystem that offers potential long-term growth.

Semiconductor integrated circuit (IC) design solutions provider, FusionSIP Technology Pte Ltd’s general manager, Eigen Fu said the company is planning to open its first design service centre in Malaysia this year.

He said the company is in the midst of surveying potential locations that would house its centre in the country.

“We want to set up the biggest design centre in Southeast Asia, maybe somewhere near Kuala Lumpur due to its logistics advantages,” he told Bernama on the sidelines of SEMICON Southeast Asia 2024

Fu added that FusionSIP also plans to collaborate with local universities while at the same time providing the students with employment opportunities and hire local workers to strengthen its presence in the country.

Recently, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia is offering itself as the “bridge” to connect countries open to tech collaboration.

Anwar said Malaysia is already a melting pot of local and international tech talent, making it easy for companies rooted here to be regionally and globally competitive.

Meanwhile, another Taiwanese semiconductor player, Delta Electronics Inc, hopes its newly launched product DIASECS solution will be widely used in semiconductor facilities in Malaysia.

DIASECS is Delta’s comprehensive solution for semiconductor equipment communication and control, complementing the company’s existing solution products, said Delta Electronics Industrial Automation country manager Quah Soon Kooi.

He said the solution could be used in semiconductor’s equipment interface and communication protocol for equipment-to-host data communications, such as the semiconductor equipment communication standard.

Delta Electronics, through its subsidiary Eltek Power (Malaysia) Sdn Bhd, has been present in Malaysia since 2016.

At the same time, computer supplier company, Bossmen Inc’s manager Lewis Liu also expressed his optimism over the tremendous potential for business growth in Malaysia.

He noted that several international giants have set foot in Malaysia, including Intel Corporation and Micron Technology from the United States (US), Bosch from German, and ASE Group from Taiwan.

“Concurrently, the demand for advanced storage solutions is expected to increase significantly,” he said when met at SEMICON Southeast Asia 2024, the largest congregation of supply chain companies in the semiconductor and electronics industry.

Liu said Bossmen’s innovative technology – the Nanoscale Photomask Storage Cabinet – was a highlight during the three-day event which ends today.

“It provides each photomask pod-on-die (POD) with purified intake air, constant humidity, temperature, and nitrogen flow, along with radio frequency identification (RFID) personnel access management and POD load/unload selection to meet Class 1 clean room standards for nanoscale photomask storage,” he said.

He added the technology comes with five essential features – filtration, monitoring and control, active purge, alarm, and security – which make it a reliable storage solution, offering cost efficiency and saving up to 80 per cent on nitrogen usage.

In 2023, Malaysia’s electrical and electronics (E&E) trade surged to an impressive RM931.39 billion.

A substantial part of this trade, totaling RM575.45 billion, stemmed from exports, underscoring the crucial role of the E&E industry in Malaysia’s economy

Semiconductor devices, ICs, transistors, and valves exports collectively made up 67 per cent of Malaysia’s total E&E exports in 2023, amounting to RM387.45 billion.

Major export markets include Singapore, the US, China, Hong Kong, and Taiwan.

Source: Bernama

Taiwan semiconductor players confident on business prospects in Malaysia

Semiconductor industry players should offer higher wages and attractive packages to lure lost talents back home, said Deputy Minister of Investment, Trade and industry (MITI) Liew Chin Tong.

He stressed that the neighbouring countries are offering more attractive salaries to skilled workers in the industry.

“I always said that Malaysia doesn’t have a shortage of talents because our talents are actually working in Singapore. So, we need to find a balance,” he said in his address at the closing ceremony for the SEMICON Southeast Asia 2024 here today.

Liew said industry players must play their role to keep the best talents in the country to ensure that Malaysia is able to create a strong semiconductor ecosystem and achieve the goals outlined in the National Semiconductor Strategy (NSS).

He said Prime Minister Datuk Seri Anwar Ibrahim has set a clear vision and deliverable actions under NSS, and that the government is keen to work on collective action with stakeholders.

“As a nation, we will have to work with you closely, with all our partners, in order to create some form of semiconductor diplomacy,” he said.

While the government is looking forward to boost foreign direct investments, it also aims to localise innovation and create domestic technology giants.

“We want to localise innovation as much as possible in order to create a strong Malaysian presence as well as regional cooperation for the sector,” he said.

In addition to attracting RM500 billion in investments during the first phase of the plan, the nation aims to establish at least 10 Malaysian companies in design and advanced packaging, each with revenues ranging from RM1 billion to RM4.7 billion.

It also hopes to nurture at least 100 semiconductor-related companies with revenues approaching RM1 billion, thereby creating higher wages for Malaysian workers.

Source: The Star

Liew calls on semiconductor sectors to offer higher wages