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Dutch Lady Milk Industries Bhd (DLMI) has today inaugurated its new RM540 million state-of-the-art manufacturing hub here.

Deploying eight production lanes, the Halal manufacturing facility is integrated with Industry 4.0 technology to meet Malaysian and regional demand for the long-term.

DlMI said the new manufacturing hub with export capacity will introduce new skills relevant to the new generation of Malaysians to spur new opportunities for growth in terms of innovation, improved efficiencies and overall sustainability.

“We will be operational by this year, after several years of hard work together with relevant stakeholders to bring this project to fruition,” DLMI managing director Ramjeet Kaur Virik said.

The Yang Di-Pertuan Besar of Negri Sembilan Tuanku Muhriz Tuanku Munawir officially inaugurated DLMI@Enstek.

Also present were the state’s senior executive councillor Datuk Seri Jalaluddin Alias (representing Menteri Besar Datuk Seri Aminuddin Harun) and ambassador of the Netherlands to Malaysia Jacques Werner.

FrieslandCampina, the main shareholder in DLMI, was represented by chief executive officer Jan Derck van Karnebeek.

Ramjeet noted that this important milestone in the company’s history is made possible by collaborating with the federal and state government.

They included agencies such as the Malaysian Investment Development Authority, Invest Negri Sembilan and Negri Sembilan Islamic Religious Affairs Department.

DLMI said the significant investment is a strong commitment towards building long-term public-private partnerships to help improve Malaysia’s dairy sector particularly in raw milk production as well as combat the triple burden of malnutrition in different segments of society.

As part of FrieslandCampina in the Netherlands, Ramjeet emphasised that the DLMI@Enstek will be a critical hub in FrieslandCampina’s global supply chain network and concurrently demonstrate the company’s confidence in Malaysia’s present and future economic opportunities.

“DLMI@Enstek is our strong commitment to nation-building and at the same time, rapidly embracing the latest food technologies on par with global best practices,” she added.

The facility is also expected to increase Negri Sembilan’s competitiveness as a magnet for new investments and further help create new spin-off economic benefits to the local economy.

The company’s strong Dutch dairy expertise link further cements its leadership role in the country.

Van Karnebeek said the facility will enable DLMI to continue producing high-quality dairy products for Malaysians and the region.

He added that FrieslandCampina has consistently aided and supported Malaysian dairy farmers with the latest techniques and technology in cooperation with the government.

“Our dairy heritage and know-how continues to support Malaysian dairy farmers in learning new methods to help improve the quality and quantity of local raw milk production and contribute to the food security of Malaysia,” he said.

The inauguration of DLMI@Enstek was held in conjunction with World Milk Day which falls on June 1, with this year’s focus being on celebrating the goodness of dairy in providing better nutrition such as protein and calcium for the world.

Source: NST

Dutch Lady inaugurates new RM540mil manufacturing facility in Bandar Enstek

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The latest significant investment of US$2 billion (RM9.4 billion) by technology giant Google in Malaysia will elevate the country’s appeal as a data centre hub in the region, said an analyst.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the government should leverage on this opportunity to attract further investments that can enhance the complexity and diversity of the Malaysian economy.

“Google’s entry is expected to significantly enhance Malaysia’s appeal as a preferred destination for data centres. Malaysia offers extensive land, sustainable energy supply and a skilled workforce, creating an ideal ecosystem for companies looking to establish data centres,“ he told Bernama.

Google has announced its new investment of US$2 billion (RM9.4 billion) in Malaysia, including the development of its first data centre in the country and Google Cloud region to meet the growing demand for cloud services locally and around the world, as well as artificial intelligence (Al) literacy programmes for students and educators.

“This development will positively impact various industries including real estate and generate demand for power cables, substations, mechanical and engineering procurement, ventilation and air conditioning systems,” he added.

Mohd Afzanizam reiterated that the establishment of data centres will have a positive spillover effect on the economy, especially in fostering a stronger technological ecosystem, spur innovation and encourage local startups to collaborate with Google. “Collaboration between the government, educational institutions and industry players will be the key to ensure that the benefits of Google’s investment are fully realised, driving sustainable economic growth and technological advancement in Malaysia,” he said.

Meanwhile, the dean of Universiti Teknologi Malaysia’s (UTM) Faculty of Artificial Intelligence (FAI), associate professor Dr Mohd Naz’ri Mahrin, said Google’s investment in Malaysia is poised to significantly enhance the country’s AI capabilities, driving both innovation and economic growth.

“The establishment of advanced data centres will bolster Malaysia’s cloud computing infrastructure, providing a solid foundation for AI development and deployment. This investment is expected to catalyse the creation of AI-driven services and products, boosting efficiency across various sectors and accelerating Malaysia’s digital transformation,” he added.

The associate professor anticipates a thriving AI ecosystem, with startups and tech companies benefitting from Google’s accelerator and incubator programmes. “This will foster a vibrant entrepreneurial environment, encouraging innovation and growth,” he said.

Mohd Naz’ri said enhanced AI infrastructure and a skilled talent pool will make Malaysia more attractive to global tech giants and investors, potentially improving its position in the Global Innovation Index. “Partnerships with academic institutions like UTM will further promote research and development in AI and machine learning, embedding these advancements into Malaysia’s tech landscape,” he added.

Source: Bernama

Economist: Google’s US$2 billion investment set to elevate Malaysia’s appeal as data centre hub in region

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Google’s latest investment of RM9.4 billion for its first data centre and cloud region will significantly advance the digital ambitions outlined in the country’s New Industrial Master Plan (NIMP) 2030.

Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said the establishment of the Google data centre and Google Cloud region in Greater Kuala Lumpur will empower the country’s manufacturing and service-based industries to leverage artificial intelligence (AI) and other advanced technologies to move up the global value chain.

“We also welcome Google’s plan to help us develop a robust talent ecosystem by facilitating the growth of our people’s digital skills, businesses and careers. As this attracts further investments, it will spur innovation and drive growth for organisations of all sizes.

“We are confident that Google’s partnership and continued investment will accelerate our nation’s digital transformation, contributing to the Madani vision towards a more prosperous, technologically advanced Malaysia,” he said in a statement issued by the Investment, Trade and Industry Ministry (Miti) today.

The minister said Malaysia’s steadfast commitment to robust digital infrastructure has convinced many multinationals to come to Malaysia’s shores, resulting in RM144.7 billion of digital investments approved from 2021 to 2023.

“As Miti actively nurtures an empowering digital ecosystem that will drive technology-based solutions across various sectors, it will also strengthen our value proposition that Malaysia is the place to be for companies to strengthen their regional and global operating success,” he added.

Google’s new commitment is expected to support 26,500 jobs across various sectors in Malaysia, resulting in a huge total economic impact estimated at RM15.04 billion.

“The Malaysia cloud region will join 40 regions and 121 zones currently in operation around the world to meet the growing demand for cloud services locally and globally, as well as AI literacy programmes for Malaysian students and educators.

“This latest commitment by yet another global tech giant to Malaysia represents a key milestone in the Madani government’s vision to attract more digital investors into the country, to help build a digitally enabled economy that is both strong and safe,” the ministry said.

It added that the increased capacity of, and reliability on, cloud services will support various sectors, including healthcare, education, and finance, to foster a more connected and resilient world.

This announcement was made after a series of engagements involving Prime Minister Datuk Seri Anwar Ibrahim with Alphabet and Google’s president, chief investment officer and chief financial officer, Ruth Porat.

A memorandum of understanding was also signed between the Malaysian Investment Development Authority (Mida) and Google on November 14, 2023.

Porat, meanwhile, said this investment was built on its partnership with the Malaysian government to advance its ‘Cloud First Policy,’ which includes best-in-class cybersecurity standards.

“With today’s announcement, Malaysia and Google are partnering to advance our shared work to create a supportive ecosystem for innovation and unlock the potential of digital transformation.

“In line with the Madani Economy Framework, which encourages innovation and inclusivity to help propel Malaysia into the top 30 of global economies by 2033, transformative technologies such as machine learning, natural language processing, and predictive analytics powered by cloud and AI services by global tech giants have the potential to empower businesses of all sizes,” she said.

This includes start-ups and micro, small and medium enterprises (MSMEs), whose potential could be unlocked by technology to drive differentiation and market competitiveness, Porat added.

The Google data centre will power Google’s popular digital services, such as Search, Maps, and Workspace, while also playing an essential role in enabling Google to deliver the benefits of Al to users across the country.

When operational, Malaysia will join the 11 countries where Google has built and currently operates data centres to serve users worldwide.

Meanwhile, the Google Cloud region will deliver high-performance and low-latency services to large enterprises, startups, and public sector organisations, enabling their access to services such as data residency, and specific data storage requirements, built around security and legal compliance standards.

Source: Bernama

Zafrul: Google’s RM9.4 bln investment to boost Malaysia’s digital future

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Google’s US$2 billion investment (RM9.4 billion) is proof that the government’s clear planning, in addition to Malaysia’s economic strength and resources, is attractive to existing and new investors, said Prime Minister Datuk Seri Anwar Ibrahim.

“Undoubtedly, this places Malaysia as one of the leading countries in the provision of support services for digital technology-based services,“ he said in a post on Facebook today.

Google announced today an investment commitment of RM9.4 billion in Malaysia, including the development of Google’s first data centre in Malaysia and the Google Cloud Region to meet the growing demand for cloud services, both locally and globally, as well as an artificial intelligence (AI) literacy programme for students and educators in this country.

Anwar said Google’s investment will support the government’s agenda in accelerating the country’s digital transformation. “This investment is expected to have a multiplier impact on the Malaysian economy of around US$3.2 billion (RM15.04 billion) and the creation of 26,500 jobs by 2030,“ he added.

Anwar also revealed that in a virtual meeting with Google’s senior management on May 6, he emphasised that in addition to support for the use of AI in general, strategic cooperation should be focused in the fields of education, health and agriculture. “This is important to ensure that Malaysia can take advantage of the latest technology-based skills and approaches,“ he said.

Source: Bernama

Google’s RM9.4 bln investment shows clear govt planning attracts investors – PM Anwar

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“We also welcome Google’s plan to help us develop a robust talent ecosystem by facilitating the growth of our people’s digital skills, businesses, and careers. As this attracts further investments, it will spur innovation and drive growth for organisations of all sizes.

“We are confident that Google’s partnership and continued investment will accelerate our nation’s digital transformation, contributing to the MADANI vision towards a more prosperous, technologically advanced Malaysia,” he said in a statement issued by the Ministry of Investment, Trade and Industry (MITI) here today.

“As MITI actively nurtures an empowering digital ecosystem that will drive technology-based solutions across various sectors, it will also strengthen our value proposition that Malaysia is where global starts, the place to be for companies to strengthen their regional and global operating success,” he added.

Google’s new commitment is expected to support 26,500 jobs across various sectors in Malaysia, resulting in a huge total economic impact estimated at RM15.04 billion.

“The Malaysia cloud region will join 40 regions and 121 zones currently in operation around the world to meet the growing demand for cloud services locally and globally, as well as artificial intelligence (Al) literacy programmes for Malaysian students and educators.

“This latest commitment by yet another global tech giant to Malaysia represents a key milestone in the MADANI Government’s vision to attract more digital investors into the country, to help build a digitally enabled economy that is both strong and safe,” the ministry said.

It added that the increased capacity of, and reliability on, cloud services will support various sectors, including healthcare, education, and finance, to foster a more connected and resilient world.

A memorandum of understanding was also signed between the Malaysian Investment Development Authority (MIDA) with Google on Nov 14, 2023.

Porat, meanwhile, said this investment was built on its partnership with the Malaysian government to advance its ‘Cloud First Policy,’ which includes best-in-class cybersecurity standards.

“With today’s announcement, Malaysia and Google are partnering to advance our shared work to create a supportive ecosystem for innovation and unlock the potential of digital transformation.

“In line with the MADANI Economy Framework, which encourages innovation and inclusivity to help propel Malaysia into the top 30 of global economies by 2033, transformative technologies such as machine learning, natural language processing, and predictive analytics powered by cloud and AI services by global tech giants have the potential to empower businesses of all sizes,” she said.

This includes start-ups and micro, small and medium enterprises (MSMEs), whose potential could be unlocked by technology to drive differentiation and market competitiveness, Porat added.

When operational, Malaysia will join the 11 countries where Google has built and currently operates data centres to serve users worldwide.

Source: Bernama

Google’s RM9.4 bln investment to advance digital ambitions outlined in NIMP 2030

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Technology giant Google is set to invest US$2 billion (RM9.4 billion) in Malaysia, including the development of its first Google data centre and Google Cloud region to meet the growing demand for cloud services locally and around the world, and artificial intelligence (Al) literacy programmes for students and educators.

Alphabet Inc (Alphabet) president and chief investment officer, who is also Google’s chief financial officer, Ruth Porat, said Google’s first Malaysian data centre and Google Cloud region is the group’s largest planned investment so far in Malaysia – a place Google has been proud to call home for 13 years.

“This investment builds on our partnership with the Malaysian government to advance its ‘Cloud First Policy,’ including best-in-class cybersecurity standards.

“With today’s announcement, Malaysia and Google are partnering to advance our shared work to create a supportive ecosystem for innovation and unlock the potential of digital transformation,” she said in a statement today.

Alphabet is the holding company of Google.

Google said its investment is estimated to support more than US$3.2 billion (RM15.04 billion) in positive economic impact and 26,500 jobs by 2030.

It said the data centre will power its popular digital services, such as Search, Maps, and Workspace, that billions of people and organisations worldwide use every day, including those in Malaysia.

“It (the data centre) will also play an essential role in enabling Google to deliver the benefits of Al to users and customers across the country.

“When operational, Malaysia will join the 11 countries where Google has built and now operates data centres serving users around the world,” it said.

Concerning the Google Cloud region, Google said it will deliver high-performance and low-latency services to large enterprises, startups, and public sector organisations.

It said Google Cloud customers will benefit from key controls that allow them to maintain the highest security, data residency, and compliance standards, including specific data storage requirements.

“The cloud region will be complemented by Google Cloud’s existing Dedicated Cloud Interconnect locations in Cyberjaya and Kuala Lumpur, which provide direct connections between an organisation’s on-premises network and Google Cloud’s global network.

“The Malaysia cloud region will join 40 regions and 121 zones currently in operation around the world,” it said.

Commenting on the announcement, Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Google’s US$2 billion investment will significantly advance the digital ambitions outlined in Malaysia’s New Industrial Master Plan 2030 (NIMP 2030).

He said the Google data centre and Google Cloud region in Greater Kuala Lumpur, in particular, will empower the country’s manufacturing and service-based industries to leverage AI and other advanced technologies to move up the global value chain.

“We are confident that Google’s partnership and continued investment will accelerate our nation’s digital transformation, contributing to the MADANI vision toward a more prosperous, technologically advanced Malaysia,” he said.

In November 2023, the government and Google entered into a strategic collaboration to create inclusive growth opportunities for more Malaysians and homegrown companies using AI and cloud technologies.

Source: Bernama

Google to invest RM9.4 bln in Malaysia, support over RM15.04 bln in positive economic impact

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Google’s US$2 billion (RM9.4 billion) investment will provide added value to efforts to improve the artificial intelligence (AI) literacy programme for the benefit of students and teachers, said the Ministry of Education (MoE).

The MoE, which welcomed Google’s announcement, said the investment would also meet the growing needs of cloud computing.

“Initiatives like the ongoing Gemini Academy and Experience AI are in line with the Digital Education Policy (DPD), which aims to produce a digitally fluent and competitive generation.

“This is implemented through the improvement of knowledge, skills and values of students, educators and education leaders; the provision of quality digital infrastructure, infostructure and content; and the active participation of strategic partners in an integrated and comprehensive manner from pre-school to high school,” it said in a statement today.

In this context, the MoE said cooperation with technology leaders like Google is crucial to enhance the implementation of the DPD and ensure the success of national education reform efforts.

Source: Bernama

Google’s RM9.4 billion investment gives added value to teachers, students – MoE

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Google’s investment of US$2 billion (RM9.4 billion) in Malaysia is a positive indicator that investors have strong confidence in the administration of the Madani Government, said Communications Minister Fahmi Fadzil.

Hence, he said this should also serve as a motivation for Malaysia to increase work productivity while also moving smarter to lure more investments into the country.

“I was informed that several destination countries were also under their (Google’s) consideration.

“I believe that after several meetings (with Google), including with me, what we conveyed and our performance were evaluated positively, leading to the announcement of this investment from Google,” he told reporters after attending the Ministry of Communications’ monthly assembly here today.

Fahmi, who is also the Unity Government spokesman, said the rapid realisation of this investment also demonstrates the Madani Government’s commitment to having a clear direction as desired by investors.

Meanwhile, the Ministry of Education (MoE) said Google’s investment will provide added value to efforts to improve the AI literacy programme for the benefit of students and teachers.

The MoE, which welcomed Google’s announcement, said the investment would also meet the growing needs of cloud computing.

“Initiatives like the ongoing Gemini Academy and Experience AI are in line with the Digital Education Policy (DPD), which aims to produce a digitally fluent and competitive generation.

In this context, the MoE said cooperation with technology leaders like Google is crucial to enhance the implementation of the DPD and ensure the success of national education reform efforts.

Source: Bernama

Google’s US$2b investment reflects investors’ strong confidence in govt: Fahmi

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Technology giant Google is set to invest US$2 billion (RM9.4 billion) in Malaysia, including the development of its first Google data centre and Google Cloud region to meet the growing demand for cloud services locally and around the world, as well as artificial intelligence (Al) literacy programmes for students and educators.

Ruth Porat, president and chief investment officer, and chief financial officer of Alphabet and Google, said Google’s first Malaysian data centre and Google Cloud region is the group’s largest planned investment so far in Malaysia — a place Google has been proud to call home for 13 years.

The site will be located at Sime Darby Property Bhd’s Elmina Business Park.

“This investment builds on our partnership with the Malaysian government to advance its ‘Cloud First Policy’, including best-in-class cybersecurity standards.

Alphabet is the holding company of Google.

Google said its investment is estimated to support more than US$3.2 billion (RM15.04 billion) in positive economic impact and 26,500 jobs by 2030.

It said the data centre will power its popular digital services, such as Search, Maps and Workspace, that billions of people and organisations worldwide use every day, including those in Malaysia.

“It (the data centre) will also play an essential role in enabling Google to deliver the benefits of Al to users and customers across the country.

“When operational, Malaysia will join the 11 countries where Google has built and now operates data centres serving users around the world,” it said.

Concerning the Google Cloud region, Google said it will deliver high-performance and low-latency services to large enterprises, startups and public sector organisations.

It said Google Cloud customers will benefit from key controls that allow them to maintain the highest security, data residency and compliance standards, including specific data storage requirements.

“The Malaysia cloud region will join 40 regions and 121 zones currently in operation around the world,” it said.

“We are confident that Google’s partnership and continued investment will accelerate our nation’s digital transformation, contributing to the Madani vision toward a more prosperous, technologically advanced Malaysia,” he said.

Meanwhile, Malaysian Investment Development Authority (Mida) chief executive officer Sikh Shamsul Ibrahim Sikh Abdul Majid said Google’s decision to establish its first data centre in Malaysia demonstrates its confidence in Malaysia’s robust infrastructure, skilled workforce and favourable business climate.

“This data centre will not only bring Google’s advanced cloud, data analytics and AI services closer to local businesses, educational institutions and the rakyat, it will also solidify Malaysia’s position as a regional innovation hub, empowering users and ecosystem players alike to harness cutting-edge technology for their growth and development,” he said.

Sikh Shamsul Ibrahim added that Mida remains committed to facilitating further investments and supporting Google’s continued growth in Malaysia.

Source: Bernama

Google to invest RM9.4 bln in Malaysia, develop data centre, cloud region

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Mah Sing Group Bhd makes its maiden entry into the data centre sector with the launch of Mah Sing DC Hub@Southville City, in partnership with Bridge Data Centres (BDC).

Following the data centre establishment, both companies have signed a landmark collaboration agreement, witnessed by Deputy Prime Minister cum Minister of Energy Transition and Water Transformation Datuk Seri Fadillah Yusof.

Mah Sing has earmarked 60.70 hectares (ha) of landbank at Southville City for further expansion into a leading Data Centre Hub with a planned capacity of up to 500 megawatts (MW).

“While this is Mah Sing’s initial venture into the data centre sector, the collaboration with BDC on the initial 7.10ha land for a data centre with a planned capacity of up to 100MW is just the beginning.

“We envision Mah Sing DC Hub@ Southville City to be a holistic digital infrastructure ecosystem, meticulously designed to accommodate the demands of artificial intelligence (AI), hyperscale, retail, and enterprise service providers,” the property developer said in a joint statement today.

It said this state-of-the-art facility is specifically engineered to support cutting-edge applications like AI computation and large-scale data storage.

“Consequently, Mah Sing DC Hub is poised to attract a diverse clientele, including leading technology corporations, telecommunication giants, and prominent financial institutions.

“This strategic move underscores Mah Sing’s commitment to enhancing Malaysia’s digital infrastructure, further driving technological innovation and economic growth in the region,” it said.

Strategically located just 19 kilometres from Kuala Lumpur City Centre, Southville City is a mature township equipped with the essential infrastructure to support this major development, it added.

“Within the proximity of Telekom Malaysia’s ™ upcoming new cable landing station in Morib, Selangor, Mah Sing DC Hub@Southville City will be able to provide a dark fibre network for the data centre hub.

“Expected to be completed in the first quarter of 2025, TM’s Morib landing station will be a key landing site for Malaysia,” it said.

Meanwhile, Fadillah said this joint-venture initiative between Mah Sing and BDC aligned with Malaysia’s digital transformation agenda and economic growth, reinforcing the nation’s position as a prime location for data centre investment in the Asia-Pacific region.

“It also reflects the strong confidence and trust that investors have in our strategic and supportive environment. The establishment of a cutting-edge data centre in Southville City will meet the growing demand for digital infrastructure, positioning Malaysia as the digital hub of Asean,” he said.

Source: Bernama

Mah Sing partners bridge data centres to launch Mah Sing DC Hub@Southville City

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The medical tourism industry contributed more than RM140mil to Johor last year, says state health and environment committee chairman Ling Tian Soon.

Ling said the state government has been working closely with health industry players here to further boost the state’s medical tourism sector, including increasing its capacity to meet growing demand.

“The medical tourism sector contributed some RM143mil to Johor last year, and we are working towards increasing the figure this year and for years to come,” he said.

“We have also set up a special committee and have met with health industry players to work on ways to increase our capacity so that we could accommodate more health tourists in Johor,” added Ling.

He then said that several private hospitals have also been expanding, including adding more wards and beds, so that they could receive more tourists to get health services here.

Ling said this in a press conference after attending the state level Nurses’ Day celebration at Hospital Permai here.

Earlier in his speech, Johor Mentri Besar Datuk Onn Hafiz Ghazi said the there was a high demand for the tourism sector in the state, especially from Indonesia’s Riau Islands.

“I have recently paid a visit to the Riau Islands and received very good feedback about our health industry. They have very high regard for the industry here.

“They asked for a collaboration between Johor and the Riau Islands so that they could improve their health tourism industry,” he said.

During the event, Johor Mentri Besar Datuk Onn Hafiz Ghazi also announced an RM300,000 allocation for nurses in Johor.

He also handed out allocations of between RM50,000 to RM390,000 each to all 12 government hospitals in Johor to upgrade their pantries.

The Mentri Besar also announced that the state government will also be channelling allocations to health clinics to upgrade their pantries.

Source: The Star

Medical tourism contributed over RM140mil to Johor in 2023, says exco

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Analysts are bullish about the National Semiconductor Strategy (NSS), believing that it would further boost the prospects of the local technology and semiconductor industries.

The NSS, which carries three overarching phases and outlined by five headline targets, was announced by Prime Minister Datuk Seri Anwar Ibrahim at the Semiconductor Southeast Asia 2024 event in Kuala Lumpur on Tuesday.

The government is allocating RM25bil in its attempt to strengthen the country’s position as a key manufacturing hub for outsourced semiconductor assembly and test (Osat) services, while also moving up the value chain into higher-end manufacturing, design, packaging and equipment.

Most observers applauded the move by Putrajaya, with Rakuten Trade head of equity sales Vincent Lau calling the initiative timely and much needed, especially in light of the fact that similar exercises are also being carried out in other markets.

“Our outlook for the tech industry has become brighter following this announcement because we do need to capitalise on our infrastructure to try and attract more investments into Malaysia,” he told StarBiz.Pointing out that the government’s investment could propel it towards the goal of securing RM500bil investments under Phase 1 of the NSS, Lau said the move is in line with the influx of data centre building applications currently permeating the country.

Malaysia should also build on its strengths in the electrical and electronics sector, taking advantage of the China+1 phenomenon that leads to the setting up of several multinational corporations locally, he said.

Concurring with Lau, Areca Capital chief executive Danny Wong said compared to similar initiatives that have been announced in the United States and China, Malaysia is taking the “baby steps” necessary to modernise and move up the supply chain beyond Osat.

“This RM25bil allotment by the government is to attract more foreign direct investment (FDI) – approximated to be around 20 times – and establish Malaysian companies in the middle and front end of the supply chain such as chip design, fabrication, integrated service and packaging,” he said.

While noting that the investment is also geared towards making Malaysia a research and development hub, Wong hopes the country will develop a sufficient supply of engineers, coupled with a technically skilled workforce, to cope with the anticipated demand.

Moreover, he expects the government to deliver incentives such as pioneer status and tax allowances as its next steps besides providing grants, highlighting that Malaysia’s neutral and non-aligned status is key to its unique competitiveness.

Siemens Malaysia Sdn Bhd chief executive Tindaro Danze is of the view that it is imperative Malaysia continues investing in the semiconductor industry as the sector contributes about 25% to its gross domestic product.

“Malaysia is also fulfilling 7% of global semiconductor demand and it is crucial it does not fall behind. The extra investments coming in will ramp up the capacity,” he added.

Aside from the proposed construction of several data centres, he said Malaysia is also benefiting from the diversification strategy of many major corporations, a lesson they picked up from the lockdown years.

Danze said this is particularly attributed to the idea that Malaysia already has a healthy and conducive semiconductor ecosystem, which helps industry players minimise disruptions to their supply chain.

Meanwhile, expanding on the point of an adequate talent pool, a fund manager is concerned that this could be a thorn in the ambitious NSS.

“The NSS looks huge but to cater to areas like chip fabrication, advanced chip designing, fabrication and testing, these processes clearly need local skilled talents.

“Hence, we recognise the NSS can bring about a long-term positive but we are not sure about its immediate prospects,” he said.

With Malaysia benefiting from US-China trade tensions, the fund manager said the NSS is an exercise to prepare for companies shifting their production processes to Asean.

“However, we believe that the near-term outlook still depends on the capital expenditure of the stakeholders in the industry. Sector valuation is at its historical average, which appears to be less attractive for entry at this juncture,” he said. He opined that the present momentum is centred around the artificial intelligence and data centre theme, a sphere which most Malaysian tech names have less exposure to.

As such, the fund manager believes the direction for the tech sector is still driven mainly by the recovery of semiconductors related to personal computers, smartphones and electric vehicles, which analysts and industry players expect to take place in the final quarter of this year.

CGS International Research (CGSI Research) and TA Research are supportive of the NSS, with the former seeing it as a positive direction for the country to remain competitive amid increasing competition for semiconductor FDIs in South-East Asia.

If the NSS is well executed, TA Research expects Malaysia to remain a popular destination as a neutral and non-aligned country that attracts global tech players in the foreseeable future.

“The only slight disappointment is no specific timeline is given for the headline targets.

“Of all the headline targets, we are looking forward to more details about the fiscal support of at least RM25bil incentives, as this will motivate local semiconductor players to expedite the upgrading and upskilling,” it added.

Some counters that the research firms expect will gain from the NSS are Inari Amertron Bhd, Malaysian Pacific Industries Bhd, Elsoft Research Bhd and Vitrox Corp Bhd.

Of note, the Bursa Malaysia Technology Index seemed unaffected by the Prime Minister’s announcement, as movement remained flattish in yesterday’s trade.

Rakuten Trade’s Lau nevertheless maintains hope that spillover effect from the Nasdaq will provide support for the local index, noting that the current correction is a healthy one, given the overall market’s positive run of late.

Source: The Star

NSS a multifaceted boon to chip sector

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Country aims to become primary hub for supplying power chips to electric vehicles: Tengku Zafrul

Malaysia aims to solidify its position as a key player in the electric vehicle (EV) ecosystem by becoming a primary hub for supplying power chips to EVs, said Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

“Given the current global situation with geopolitical tensions, trade tensions, tech wars, and other issues, Malaysia, as a fiercely neutral country, is one of the nations that can serve as a hub for companies looking to expand their investments in this sector,” he told reporters after the launch of Gentari Green Mobility MY Initiative here yesterday.

He said the semiconductor sector plays a crucial role in Malaysia’s economy in terms of exports and trade. “This sector accounts for 40% of the total exports in the electrical and electronics sector,” he added.

Achieving green mobility today, for example, involves motorcycles and cars using chips, Tengku Zafrul said, adding that in an internal combustion engine car, there are about 600 to 1,000 chips, but in an electric vehicle, there can be almost 5,000 chips.

“Thus, this industry will continue to grow, not only in terms of its use in EV power chips but also with the rise of generative AI and other technologies. This sector is expected to grow, and by 2030, it is projected to be worth around US$1 trillion. So, what’s happening is significant,” he stressed.

Prime Minister Datuk Seri Anwar Ibrahim said on Tuesday that Malaysia can become the key hub to supply power chips to EV cars. He said the power chips are key in energy transition and decarbonisation technologies.

“Through Malaysia’s New Industrial

Master Plan 2030 and the National Energy Transition Roadmap, we already have the right policy enablers and incentives for companies wishing to manufacture them here,“he said in his speech at SEMICON Southeast Asia 2024 conference.

Clean energy solutions provider Gentari Sdn Bhd, through subsidiary Gentari Green Mobility Sdn Bhd, is expanding its efforts to drive green mobility adoption via a new hassle-free, long-term EV leasing solution for commercial fleet operators as part of its Vehicle-as-a-Service offerings.

“Malaysia has one of the highest rates of vehicle ownership among East Asian countries, which significantly contributes to carbon emissions in the country. To help lower emissions from the transport sector, Gentari is now introducing electric twowheelers as part of our Vehicle-as-a-Service offering, targeted towards facilitating businesses to transition to EVs.

“We are excited to collaborate with Lazada in decarbonising their logistics fleet operations,” commented Gentari deputy CEO and Gentari Green Mobility CEO Shah Yang Razalli.

Source: The Sun

Malaysia to cement position as key player in EV ecosystem

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Malaysia has seen foreign direct investment (FDI) inflows from Mainland of China and Hong Kong Special Administrative Region increase to US$3.4 billion (US$1= RM4.696) in 2023 from US$3.3 billion in 2022 and tripling from 2013 levels, says OCBC global markets research and strategy.

Its senior Asean economist, Lavanya Venkateswaran, said Malaysia, as one of the ASEAN-6 economies alongside Indonesia, the Philippines, Thailand, Singapore, and Vietnam, has benefited from the diversification of global and regional supply chains, as well as the adoption of ‘China+1’ strategies.

She said the net FDI inflows into Malaysia were highest in the services and manufacturing sectors, implying that these sectors have been major recipients of inflows.

“Data compiled by the American Enterprise Institute and the Heritage Foundation shows that the bulk of investment from China has been directed towards the energy, technology and transportation sectors,” she said in OCBC’s latest report on Asean-China FDI released.

To recap, Lavanya said Chinese firms pledged around RM170 billion in investments into Malaysia in April 2023, with 19 memoranda of understanding (MoUs) signed, followed by commitments of RM19.84 billion in September 2023.

“These suggest that there is a strong pipeline of FDI commitments from China into Malaysia.

“Further commitments are likely to be made at the Malaysia-China Summit 2024, which runs from 17th to 19th December, 2024,” she said.

Lavanya noted that foreign capital investment approvals, a proxy for approved FDI, have been picking up flowing into Malaysia.

“The source of the inflows has become more diverse in recent years, underscoring the broadening role of Malaysia in regional and global supply chains.

“Inflows from the European Union, other ASEAN countries, the United States, Japan and China have improved in recent years. ,” she said.

Regionally, Lavanya said FDI inflows into the ASEAN-6 economies have been gaining traction, rising to US$236 billion in 2023 versus the annual average of US$190 billion in 2020- 2022.

Source: Bernama

Malaysia attracts US$3.4 bln FDI from China, HK in 2023 — OCBC economist

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To address the talent shortage in Malaysia, the Ministry of Investment, Trade and Industry (Miti), together with the Human Resources Ministry, is finalising some incentives to bring back highly-skilled local talent from abroad.

Miti Minister Tengku Datuk Seri Zafrul Abdul Aziz said this during a media briefing on the National Semiconductor Strategy (NSS) on Wednesday.

“We see that highly-skilled Malaysian engineers are being poached by global players. It is not only the semiconductor industry that is facing talent shortage, but other industries as well.

“We need to ensure that we continue to attract Malaysians to stay in the country, perhaps by offering more attractive salaries. Companies must play a role in this, as ultimately, it is a function of supply and demand,” he said.

He was responding to reporters’ questions on what initiatives are being undertaken by the government to address the talent crunch in the semiconductor industry.

The government also has an ambitious target to train 60,000 highly-skilled local engineers in the semiconductor industry, as announced by Prime Minister Datuk Seri Anwar Ibrahim on Tuesday.

“The challenge [for us] is not just in ensuring we have enough highly-skilled engineers but also to ensure that the number [of workers] continues to grow,” said Tengku Zafrul.

“We need collaboration between the government and the private sector, for example, universities, TVET (technical and vocational education and training) institutions, and other educational bodies, to help us achieve our target,” he added.

Source: The Edge Malaysia

MITI, HR Ministry finalising incentives to bring home local talent, says Tengku Zafrul

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Prime Minister Datuk Seri Anwar Ibrahim hosted two company delegations, Amazon Web Services (AWS) and Abu Dhabi Future Energy Company PJSC (Masdar), today at his office in Putrajaya.

He noted on social media platform X that the meetings centred on the investment plans of these firms in Malaysia.

Anwar disclosed that the AWS delegation, led by AWS global public policy vice-president Michael Punke, briefed him on the progress of AWS’s RM25.5 billion investment announced last year.

“This investment, spanning 15 years from 2023 onwards, involves the establishment of data centres in Negri Sembilan, Selangor and Kuala Lumpur, progressing as scheduled,” he said.

Anwar expressed Malaysia’s appreciation for AWS’s investment and strategic collaboration in advancing the digital transformation ecosystem, encompassing cloud computing, Internet of Things, 5G, and artificial intelligence.

He stressed the significance of staying abreast with technological advancements to remain competitive globally.

Subsequently, the prime minister welcomed Masdar chief executive officer Mohamed Jameel Al Ramahi and a delegation, accompanied by UAE ambassador to Malaysia Dr Mubarak Saeed Ahmed Burshaid Al Dhaheri.

Masdar, a UAE-based clean energy company, discussed progress on investment proposals in partnership with local businesses across several Malaysian states over the next decade.

Anwar highlighted the importance of such strategic partnerships and investments in aligning with Malaysia’s National Energy Transition Roadmap (NETR) objectives, aiming for a progressive shift in the country’s energy infrastructure.

He expressed optimism that these meetings would foster additional investment opportunities, job creation, and economic growth, benefiting all parties involved.

Source: Bernama

Anwar hosts investment talks with Amazon, Masdar in Putrajaya

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The Ministry of Investment, Trade, and Industry (MITI) has announced that Malaysia and Brazil have agreed to strengthen collaboration in the semiconductor sector.

The agreement was reached following discussions with Brazil’s Ministry of Development, Industry, Commerce and Services, and the Ministry of Foreign Affairs during MITI’s Trade & Investment Mission to Brasilia and Rio de Janeiro, Brazil, held from May 19 to May 23, 2024.

Liew Chin Tong, Deputy Minister of Investment, Trade, and Industry, headed the MITI delegation to Brazil.

“Both nations will utilise their respective industrial development plans, namely the New Industrial Master Plan (NIMP 2030) and Nova Industria Brazil 2033, to enhance cooperation in the semiconductor industry,” it said.

Yesterday, Prime Minister datuk Seri Anwar Ibrahim announced that the government will allocate at least RM25 billion (USD 5.3 billion) in fiscal support to operationalise the National Semiconductor Strategy (NSS) RM500 billion in investments in its first phase.

Additionally, they are working towards the Second Bilateral Joint Trade Committee Meeting, scheduled to take place early next year.

Collaboration on semiconductors was one of the highlights of the phone call between Prime Minister Datuk Seri Anwar Ibrahim and President Luiz Inácio Lula da Silva on Feb 9, 2024.

“The Trade and Investment Mission to Brazil has laid the foundation for increased economic cooperation between the two nations.”Malaysia aims to strengthen collaboration with Brazil to advance shared objectives within the Global South,” it said.

Additionally, MITI said the significant outcomes are being planned for the potential Official Visit of Anwar to Brazil in November 2024, following an invitation from Lula of Brazilian 2023, Brazil ranked as Malaysia’s second largest trading partner in Latin America.

Business meetings were conducted to explore trade and investment opportunities in areas such as cattle breeding, meat products, palm oil, and biomass, as well as to gain insights into the current operations of Malaysian companies in Brazil, specifically Petroliam Nasional Bhd (Petronas) and Yinson Holdings Bhd.

Source: NST

MITI: Malaysia and Brazil to work together to grow semiconductor sector

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Malaysia is expected to become a semiconductor hub in Asia given its significant role in the country’s economy, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

He said semiconductor exports currently account for 40% of the country’s total exports. “This makes Malaysia the sixth largest exporter in this sector,” he disclosed during the launch of Semicon Southeast Asia 2024 at Malaysia International Trade and Exhibition Centre here today.

Nearly 500 exhibitor companies are featuring their products in more than 1,000 exhibition booths at the three-day event.

Tengku Zafrul said global demand for semiconductors is expected to reach US$1 trillion (RM4.69 trillion) by 2030 with continuous growth projected. “Malaysia aims to leverage its 50-year presence in this industry and advance to the next level of value by capitalising on advancements in artificial intelligence (AI) technology and everyday applications.”

According to him, Malaysia has a proud history and a strong track record in the semiconductor sector. “For more than five decades, our country has built a strong legacy as a key player in the Asean semiconductor circuit, while playing an important role in the global electronics supply chain,” he said.

Tengku Zafrul said this strategic arrangement has provided the country’s electrical and electronics (E&E) industry, especially the semiconductor sector, with access to a global market of over four billion people.

He stated that Malaysia is increasingly seen as an important Southeast Asian nation in helping to secure the global supply chain for the industry and ensuring the continued growth of the strategic importance of the semiconductor sector.

“The increasing global dependency on semiconductors has stimulated research and manufacturing in Southeast Asia,” he remarked.

He said this also makes the components more crucial in modern electronics and advanced research that can address or exacerbate global issues.

Meanwhile, SEMI CEO Ajit Manocha said Southeast Asia is well-positioned to help accelerate the semiconductor industry’s unprecedented growth driven in part by the game-changing innovations such as GenAl.

“Events like Semicon Southeast Asia play a crucial role in fostering dialogue, partnership, and innovation. The growth in participation this year reflects the growing relevance of this event and the collective commitment to advancing the semiconductor ecosystem to Southeast Asia and beyond,” said Ajit.

Meanwhile, Malaysian Investment and Development Authority CEO Sikh Shamsul Ibrahim Sikh Abdul Majid said, “We are steadfast in our commitment to position Malaysia as a premier investment destination, particularly in the thriving E&E industry. With our investor-friendly policies, well-established infrastructure, and highly skilled talent pool, Malaysia offers an ideal environment for businesses seeking to establish and broaden their presence in Asia. We are prepared to facilitate and accommodate advanced technologies brought by our investors.”

Invest Selangor Bhd CEO Datuk Hasan Azhari said that they are happy to partner with SEMI Southeast Asia and showcase Selangor’s attractiveness as an investment destination through industrial park visits to Elmina Business Park and Eco World Business Park V, and they aim to demonstrate the conducive business environment and abundant opportunities available in Selangor.

Source: The Sun

‘Malaysia set to become Asia semiconductor hub‘

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Malaysia has a “once in a generation” opportunity to strengthen the electrical and electronics (E&E) industry following the unveiling of the National Semiconductor Strategy (NSS) yesterday.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Aziz said this given the geopolitical tension between the United States (US) and China that has become a tech war, coupled with global supply chain diversification to reduce disruptions and geopolitical risks.

“Many global companies are looking at redesigning their supply chain, moving to more secure and resilient locations to mitigate risks.

“So we must act now, become more resilient and seize the opportunity because failing to do may result in a missed economic advantage that could set us back for years.

“We already have 50 years of experience, especially in the back-end (outsourced semiconductor assembly and test), and we have to build on our existing strength and capabilities now for both local and international companies to (move) into the frontiers, and stay competitive and innovative in the industry,” said Tengku Zafrul in a media briefing on the NSS here today.

The NSS focuses on high-end value chain opportunities in integrated circuit (IC) designs, high-end manufacturing and equipment-making.

In creating 60,000 engineers under the NSS, private companies must be realistic. They need to attract local talents to stay as the demand for engineers is not limited to the E&E industry, he said.

Other industries such as financial services, management and consulting firms, among others, are also eyeing the same talent pool.

Companies overseas are also “poaching” talents. Malaysia is not the only country facing a shortage of engineers. It is a global issue, he said.

Malaysia has to be more open and allow high-skilled talented engineers from outside the country to enter while local talents are upscaled and upskilled according to industrial relevance if Malaysia is to become a talent hub, Tengku Zafrul said.

He further said MITI is also finalising incentives with the Human Resource Ministry to attract local talents working abroad to return.

The NSS, announced by Prime Minister Datuk Seri Anwar Ibrahim on Tuesday, consists of three main phases, with the industry expected to woo at least RM500 billion of investments in the plan’s first phase in five years.

Source: Bernama

Once in a generation’ opportunity to strengthen E&E with National Semiconductor Strategy: Tengku Zafrul

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The government aims to move up the semiconductor value chain from outsourced semiconductor assembly and test (OSAT) to focus on high-end value chain opportunities such as IC design or embedded software, high-end manufacturing and manufacturing equipment, according to Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

“Our current situation in the [semiconductor] value chain, our strength is OSAT. Many companies in Malaysia are heavily involved in third-party IC packaging and services.

“The country has to enhance its capabilities in IC design and embedded software. We want to focus on local companies especially to move the IC design, not just focusing on lower complexity designs but higher complexity designs,” Zafrul told reporters during the briefing for the National Semiconductor Strategy (NSS) on Wednesday.

On Tuesday, Anwar unveiled the RM25 billion allocation under NSS, earmarked for targeted incentives. NSS comprises three phases aimed at expanding existing semiconductor fabrication plants and enticing foreign direct investment, particularly from purchasers associated with tech giants Apple, Huawei and Lenovo.

For the first phase, Miti is leading several agencies and other ministries in a quest to attract at least RM500 billion in investments. This includes both domestic direct investment (DDI), focusing on advanced packaging, IC design and manufacturing equipment, as well as foreign direct investment (FDI), targeting wafer fabs and manufacturing equipment.

Out of the RM25 billion allocation, RM5 billion is slated for phase one, according to Zafrul. However, he did not disclose further details when queried about the breakdown for the allocations.

“The breakdown of the RM25 billion allocation is anticipated to span five years, with approximately RM5 billion allocated for phase one. If you ask me, across these three phases, I estimate a timeframe of around 10 years,” he stated.

“On the investment front, our goal is not only to attract FDI but also to promote DDI. Malaysia boasts prominent companies like Vitrox (Corp Bhd) and Inari (Amertron Bhd), which stand to benefit significantly from this allocation. We aim for these local companies to ascend higher. However, in terms of value, FDI will likely dominate due to the substantial capital expenditure requirements,” he added.

Malaysia trails behind Singapore in AI venture capital investments

Zafrul also admitted that Malaysia is trailing behind Singapore in terms of artificial intelligence (AI) venture capital investments. He responded to an East Asia Forum report revealing that 75% of AI venture capital investments are concentrated in Singapore, surpassing other major Asean economies including Malaysia, Indonesia and Thailand.

“I do admit that we are just building the infrastructure on AI, so I think we need time to compete with Singapore. In terms of data centres and security, we need a little bit of time to pass the Cyber Security Bill 2024 in the last parliamentary session, to expect the investments to come in quickly.

The Cyber Security Bill, aimed at bolstering the nation’s cybersecurity through compliance with specific measures, standards, and processes in managing cyber threats, was only passed last month, according to him.

“For example, in the case of Microsoft, it was one of the concerns raised before they (Microsoft) made their investment announcement (worth US$2.2 billion [RM10.35 billion]) in cloud and AI transformation.

In April, Digital Minister Gobind Singh Deo was quoted as saying that the Cyber Security Bill could help the government ensure the viability and efficiency of the Critical National Information Infrastructure in handling cybersecurity incidents.

Source: The Edge Malaysia

Govt wants semicon sector to move up value chain from OSAT forte

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Malaysia stands out as a prime destination for investors looking to capitalise on the thriving electrical and electronics (E&E) industry within the region, said the Malaysian Investment Development Authority (MIDA).

In 2023, Malaysia’s manufacturing sector attracted a total of RM152 billion in approved investments, with the E&E industry securing the lion’s share of investments with RM85.4 billion, said MIDA, Invest Selangor Bhd and SEMICON Southeast Asia in a joint statement today.

“Ranked sixth globally for semiconductor exports, Malaysia plays a critical role in the global E&E supply chain.

“The nation is responsible for seven per cent of the global semiconductor trade and 13 per cent of global chip assembly, testing and packaging activities,” it added.

MIDA said six out of the 12 largest semiconductor companies currently operate in Malaysia, underscoring its strategic importance and attractiveness as a hub for major industry players.

In response to this growing interest, SEMICON Southeast Asia 2024 is featuring INVEST@Southeast Asia Pavilion, a dynamic platform for investment agencies or organisations to connect with potential investors keen on exploring opportunities in Malaysia.

MIDA chief executive officer (CEO) Sikh Shamsul Ibrahim Sikh Abdul Majid said the agency is steadfast in its commitment to position thriving E&E industry.

“With our investor-friendly policies, well-established infrastructure, and highly skilled talent pool, Malaysia offers an ideal environment for businesses seeking to establish and broaden their presence in Asia.

“Innovations such as nanometre technology, new semiconductor materials, sustainability-based processes, artificial intelligence (AI), and IoT-driven features are bifurcating and gaining significant momentum here,” he said.

As global leaders, it is imperative to stay ahead of the curve, and Malaysia’s supportive environment propels us towards this goal, Sikh Shamsul Ibrahim said.

“We are all the more ambitious than ever and look forward to showcasing Malaysia’s position as a strategic hub for innovation and investment at SEMICON Southeast Asia 2024,” he added.

Invest Selangor CEO Datuk Hasan Azhari Idris said the state offers a multitude of investment opportunities, apart from being a great place to work and live.

“Its robust economic growth is propelled by rich natural resources, world-class land, sea and air connectivity, and unrivalled urban commercialisation – an advanced commercial ecosystem,” he
said.

Meanwhile SEMI Southeast Asia president Linda Tan said MIDA and Invest Selangor’s collaboration and dedication towards driving investment opportunities during SEMICON Southeast Asia 2024 play a key role in attracting participants to the show.

“With their unwavering support, we are confident SEMICON Southeast Asia 2024 will be a dynamic platform for industry leaders, innovators, and stakeholders to come together, exchange ideas and explore the latest trends and opportunities in the electronics industry,” she said.

SEMICON Southeast Asia 2024 is held from May 28 to 30, 2024 at MITEC, Kuala Lumpur, with the theme ‘Boosting Agility and Resiliency of the Global Electronics Supply Chain’ and features two roundtable discussions at the Market and Industry Trends Forum – COLLABORATE@Southeast Asia and Forging Forward – Strengthening Malaysia’s Position in the Global E&E Value Chain.

Source: Bernama

Malaysia stands out as prime destination for investors to capitalise on E&E industry — MIDA

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Malaysia’s semiconductor sector’s global footprint is set for exponential growth with key initiatives to be unveiled by Prime Minister Datuk Seri Anwar Ibrahim, said Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz.

Speaking to reporters after the launch of the SEMICON Southeast Asia 2024 expo here today, he said the initiatives will strengthen Malaysia’s position in the semiconductor space, emphasising the importance of semiconductors and the role that Malaysia can play in the global value chain.

Tengku Zafrul noted the need to seize the current opportunity to establish Malaysia as a genuine semiconductor powerhouse and a regional manufacturing hub, stressing the importance of attracting more investments to accelerate Malaysia’s progress along the global value chain.

He shared that in the past 18 months, Malaysia has attracted the attention of some of the world’s largest and most cutting-edge electronics companies, including industry giants like Intel, GlobalFoundries, Infineon and Neways.

Tengku Zafrul said as the world is at the cusp of another tech-based revolution powered by artificial intelligence (AI), the future lies not just in assembling and testing chips, but more in the exciting realm of innovation and design.

He noted that Malaysia is exceptionally well-positioned to capitalise on this historic opportunity, thanks to its strong value proposition, which includes world-class manufacturing facilities, innovative research and development centres, a highly skilled workforce, attractive incentives and modern infrastructure.

At the same time, the nation is also upgrading its logistics infrastructure to support the semiconductor industry via the RM1.5 billion expansion of the Penang International Airport, slated for completion in 2028.

It has also established the National Semiconductor Strategic Task Force to spearhead improvements in incentives, talent, and other critical elements to support the industry’s development and growth in order to attract foreign and domestic investments.

The country is also focusing on identifying key activities that will lay the foundation for the industry’s sustainable growth.

This includes developing a robust renewable energy supply and implementing local vendor development programmes to create opportunities for local companies and small and medium enterprises, thereby fostering a vibrant, inclusive, and sustainable industrial ecosystem, he said.

“I would like to reiterate that the stronger macroeconomic forecast for 2024 signals a positive trend during this global technology upcycle.

“This is evidenced by anticipated growth in key economic indicators, coupled with trends towards lower inflation and unemployment rates, as well as an improving outlook for the ringgit,” he said.

Tengku Zafrul added that the achievement of securing RM329.5 billion in approved investment last year demonstrates the growing confidence in Malaysia’s economic stability and growth potential.

Source: Bernama

Tengku Zafrul: PM Anwar to announce key strategies to boost Malaysia’s semiconductor sector

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Malaysia can become the key hub to supply power chips to electric vehicle (EV) cars, Prime Minister Datuk Seri Anwar Ibrahim said.

He said the power chips are key in energy transition and decarbonisation technologies.

For instance, EVs contain over 3,000 chips, two to five times that of internal combustion engine vehicles, he said.

“Through Malaysia’s New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR), we already have the right policy enablers and incentives for companies wishing to manufacture them here,“ he said in his speech at SEMICON Southeast Asia 2024 conference here, today.

Moreover, Anwar said the government aims to have 40 per cent of Malaysia’s primary energy mix from renewable sources by 2035.

This initiative aims to reduce carbon dioxide emissions by 10 million tonnes annually and achieve 100 per cent renewable energy by 2050.

“The government supports exploring new technologies like green hydrogen, nuclear technology, and large-scale energy storage to reduce dependence on fossil fuels and meet the targets of the 2016 Paris Accord,“ he said.

Starting this September, third-party access (TPA) will be allowed in the national electricity supply industry, enabling other parties to supply energy using Tenaga Nasional Bhd’s transmission lines, reflecting high foreign investor interest in Malaysia, he added.

Source: Bernama

Malaysia can become key hub to supply power chips to electric cars – PM Anwar

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Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz has proposed a halal category for Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI).

The minister said the ministry is also redefining the role of the Halal Development Corporation (HDC) to eliminate redundancies and sharpen the focus of halal industry promotion within the MITI ecosystem.

“I have requested MIDA to have a new category for FDI and DDI, which is the halal category. MIDA will spearhead overall investment promotions including halal, while HDC drives growth in the halal industrial ecosystem. HDC will craft strategies for fully halal and Shariah-compliant value chains, branching out into new sectors like pharmaceuticals, cosmetics, personal care, logistics, hospitality services, and medical devices to cater to the modern economy,” he said in his special address at the Global Forum on Islamic Economics and Finance held here today.

He said the global Islamic economy holds immense potential for growth with the global halal market predicted to reach US$9.71 trillion by 2025, with nations like Malaysia expected to lead the pack in the coming years.

“As the halal industry becomes one of the most competitive and fast-moving sectors in the world, so too will Islamic financial assets.

“In fact, global Islamic financial assets expanded by 163% over the past decade, from US$1.71 trillion in 2012 to US$4.51 trillion in 2022,” he pointed.

Tengku Zafrul said that this is attributed to strong balance sheets, high earnings, regulatory support, and sustained demand from customers and investors worldwide.

Therefore, he added it does not come as a surprise that many countries are now focusing on the halal industry, with many businesses looking to invest in halal-related products, driving innovation and creating solutions for their ‘target share’ of the 1.9 billion Muslims globally, which is almost 25% of the world’s population.

Source: The Sun

MITI Minister proposes halal category for FDI and DDI

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Penang remains committed to the development of Silicon Island to address the state’s pressing need for land, particularly for industrial purposes, with a strategic connection to the existing ecosystem in Bayan Lepas, including the Penang International Airport and the North-South Expressway.

State Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari said the island, part of the Southern Penang Island (PSI) reclamation project, is slated for industrial, commercial, residential and tourism development to meet the state’s needs over the next 40 years.

“The Bayan Lepas Free Industrial Zone (FIZ) is widely recognised as a prime destination for international investments, notably in the electrical and electronics (E&E) sector. Expanding the FIZ through the establishment of the high-tech Green Tech Park on Silicon Island caters to existing investors seeking expansion opportunities and attracts new investments.

“Through Silicon Island, Penang anticipates a significant economic impact, with a projected gross domestic product (GDP) contribution of RM1.1 trillion, attracting investments totaling RM74.7 billion and creating 220,000 job opportunities,” he said at the state assembly sitting here today.

He was replying to a question from A. Kumaresan (PH-Batu Uban), who asked about the rationale behind the continued reclamation of Islands A, B, and C, projected profits and the state government’s plans for the reclaimed land.

Zairil (PH-Tanjong Bungah) said Penang plans to utilise Silicon Island for infrastructure development, green-blue networks, public amenities and other use (888 acres), industrial zones (720 acres), housing, including affordable types (388.1 acres), mixed development (164.3 acres) and commercial purposes (139.6 acres).

Silicon Island, spanning 2,300 acres (930.78 hectares), represents Penang’s maiden venture into direct reclamation-driven development, signaling a strategic move to ensure sustained economic growth.

Following the Federal Government’s commitment to finance the implementation of the Light Rail Transit (LRT) system in Penang, the state government has agreed to scale down the PSI project, suspending the reclamation of Islands B and C for the time being.

Zairil also explained that although the state government has applied for Environmental Impact Assessment (EIA) approvals concurrently for all three islands, each island has separate approvals.

“If we implement only Island A, it has its own approval, so it’s not a problem. It doesn’t affect the EIA application because we have separated it. For Islands B and C, the approvals are still valid, but the state government has decided not to proceed upon the advice of the Federal Government,” he said.

Source: Bernama

Penang Assembly: Silicon Island development to address industrial land shortage

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