2024 Archives - Page 57 of 77 - MIDA | Malaysian Investment Development Authority
English
contrastBtngrayscaleBtn oku-icon

|

plusBtn crossBtn minusBtn

|

This site
is mobile
responsive

sticky-logo

World Bank: NIMP 2030 to accelerate net FDI inflow into Malaysia

 >Media & Events > Media Gallery>Video Gallery

The World Bank anticipates that the New Industrial Master Plan (NIMP) 2030 will expedite a rise in private investments in Malaysia, as the long-term pattern has indicated a decline in numbers.

The World Bank’s Malaysia Economic Monitor reported that Malaysia recorded net foreign direct investment (FDI) inflows of RM 39.5 billion for 2023.

Its lead economist for Malaysia Apurva Sanghi said the significance of assessing the long-term trend is due to the reduced public and private investments.

“NIMP 2030 is seen as a driver to increase the FDI/GDP ratio, provided it is implemented well, including paying attention to opening up certain service sectors that are more restricted in Malaysia than in comparable countries,” he told Bernama after a media briefing to launch its Malaysia Economic Monitor themed “Bending Bamboo Shoots: Strengthening Foundational Skills” here today.

Apurva emphasised that Malaysia should proactively liberalise services, which will be the key to NIMP’s successful execution.

During the briefing, Apurva said the World Bank has maintained Malaysia’s economic growth forecast at 4.3 per cent this year, driven by domestic consumption.

“Public consumption will contribute 0.4 per cent to the real GDP while private consumption is at 3.4 per cent whereas net exports see a 0.4 per cent contraction,” he said.

He explained that growth in Malaysia’s FDI position slowed to 5.4 per cent in 2023 (2022: 12.4 per cent), which is in line with Asean’s FDI trends in 2023.

“East Asia and the Pacific were the main contributing region, with Singapore and Hong Kong contributing 55.7 per cent and 39.2 per cent of the increases in net FDI inflows,” he said.

East Asian and Pacific countries grew faster than the rest of the world in 2023, albeit slower than in the pre-pandemic period.

The ongoing recovery in tourism benefitted the region, he said. 

Source: Bernama

World Bank: NIMP 2030 to accelerate net FDI inflow into Malaysia


Content Type:

Duration:

The KL20 Summit 2024 is strategically designed to introduce significant reforms, aimed at attracting high-quality, high-value investments from across the globe, while concurrently empowering local entrepreneurs to go global and seize emerging opportunities.

Prime Minister Datuk Seri Anwar Ibrahim noted that Malaysia’s stable government and good governance, pro-trade legacy and neutral stance meet the demands of trading partners at a polarising time.

Anwar, who is also Finance Minister, said the summit marks a comprehensive effort to catalyse the technology ecosystem.

“KL20 fits strategically into the central governing economic philosophy of this government, under the MADANI Economic Framework.

“(This is) underscored by the principle that economic growth and distribution are compatible and that government correction must be in harmony with market forces,” he said during the official opening ceremony of KL20, here today.

He said technology has been a societal equaliser and productivity booster, providing jobs and livelihoods that did not exist previously.

“While we acknowledge the unintended consequences of technology and unbridled growth of ventures, we once again see a synthesised position in the middle: embrace technology while upholding the duty to our country, environment, and the global community,” he added.

Meanwhile, Anwar noted that the continuing trend of confidence from investors in all parts of the start-up ecosystem gives a real chance for Malaysia to create cutting-edge technology ventures.

He announced that 12 international venture capital firms will be setting up offices and new funds in Kuala Lumpur, with assets under management worth billions and illustrious investment track records.

Additionally, a number of high-tech companies will set up operations, research and development facilities, as well as regional headquarters to serve the Asian and Southeast Asian markets.

As for the semiconductors sector, he said Malaysia’s substantial hold on the backend has made it conducive to pursue high-value front-end work, chiefly in the integrated circuit (IC) design category.

To this end, he announced plans to build Southeast Asia’s largest IC Design Park, which will house world-class anchor tenants and collaborate with global companies such as British chipmaker, Arm Holdings.

“This is done with the backing of the Selangor Information Technology and Digital Economy Corporation (SIDEC) and the Selangor state government.

“Additionally, to make Malaysia a true gateway to major economies, we will also witness the city-to-city connection between Kuala Lumpur and Hangzhou so that the capital, talent, and market access will no longer be a barrier to success,” said Anwar.

He added that the government is positioning Malaysia as an axis for leaders in semiconductors, clean energy, agritech, and Islamic fintech.

“Doubling down on our edge will tap into the higher value effort necessary to create new growth verticals and transform our fortunes,” he added. 

Source: Bernama

KL20 Summit 2024 to attract high-quality investments – PM


Content Type:

Duration:

The Malaysia Semiconductor Accelerator and IC Design Park: Selangor Hub, an initiative of the Selangor government through its digital economy arm, is expected to bring in economic returns of RM500 million to RM1 billion.

Selangor Information Technology and Digital Economy Corporation (Sidec) chief executive officer Yong Kai Ping said the integrated circuit (IC) hub, located in Puchong, Selangor, is expected to begin operations in July and contribute to the state’s economic growth.

He added that the state-of-the-art facility, developed in collaboration with the federal government, will open up professional career opportunities especially in the engineering field with high salary offers of between RM5,000 and RM7,000 a month.

He was speaking to reporters after signing a letter of intent with four strategic partners — Softbank subsidiary ARM Ltd, Phison Malaysia (MaiStorage), SkyeChin Sdn Bhd and the Shenzen Semiconductor Industry Association — here today.

The collaboration with these influential entities is aimed at leveraging global expertise and resources to boost local capabilities in semiconductor design.

“In the first year of operation, we expect more than 300 IC design engineers will be employed and the number will increase in the following year,” he said.

The IC Design Park, located in a 45,000 sq ft building initially, will be expanded up to 60,000 sq ft later to accommodate industry needs, Yong said.

“From three storeys, we will expand the building to six storeys. We have already received strong demand from international investors,” he added.

The signing ceremony, held on the sidelines of the KL20 Summit 2024, was witnessed by Economy Minister Rafizi Ramli, Digital Minister Gobind Singh Deo, Selangor state secretary Datuk Haris Kasim and Selangor state investment, trade and mobility committee chairman Ng Sze Han.

Prime Minister Datuk Seri Anwar Ibrahim launched the two-day summit that began today.

Ng said the hub is expected to be the largest IC design park in South-east Asia.

“It is an excellent initiative as it will not only create job opportunities but also opportunities in support sectors such as logistics and food and beverages,” he said.

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

Source: Bernama

IC Design Park set to bring in economic returns of RM500m to RM1b, says Sidec CEO


Content Type:

Duration:

Japan’s Toyo Engineering Corporation, along with its subsidiary Toyo Engineering and Construction Sdn Bhd, have signed a memorandum of understanding (MOU) with InvestSarawak to facilitate Toyo in exploring potential investments in energy projects in Sarawak.

Toyo Engineering and InvestSarawak said in a joint statement on Monday that the MOU outlines the commitment of both parties to establish a cooperative framework that will foster collaboration on potential energy projects critical to the Sarawak government’s energy transition initiatives.

“Such initiatives include developing green hydrogen projects, carbon capture and storage (CCS), waste-to-energy projects that convert organic waste materials into energy, energy storage solutions such as battery storage or pumped hydro storage and smart grid technology to enhance the efficiency and reliability of the electrical grid,” they said.

InvestSarawak chief executive officer Timothy Ong said the partnership with Toyo is a testament to Sarawak’s commitment to embracing clean and sustainable energy sources that will propel the state economic and social development forward.

“This collaboration will leverage Toyo’s global insights and technological advancements to enhance our capabilities” he said.

InvestSarawak, an agency under the purview of Sarawak’s Ministry of International Trade, Industry and Investment (MINTRED), is a one-stop centre (OSC) dedicated to attracting investments to Sarawak while fostering trade and talent development, in alignment with Sarawak’s vision for 2030 and beyond.

Meanwhile, Toyo Engineering Corp senior executive officer, unit director of business development and marketing unit, Casey Takeshi Matsumuro, said Toyo was honoured to support Sarawak’s ambitious energy goals.

“This collaboration allows us to bring our expertise and technology to the forefront of Sarawak’s energy landscape, aligning with our mission to contribute to sustainable growth globally,” he said.

Toyo, with its track record and expertise in engineering, procurement, construction and technical services across various sectors, including oil and gas, petrochemicals and renewable energy, brings its global experience and innovative technologies to this partnership.

Source: Bernama

InvestSarawak, Toyo to explore potential investments in energy projects


Content Type:

Duration:

Prime Minister Datuk Seri Anwar Ibrahim said Malaysia has gained world attention as a premier investment destination due to its political stability and clear economic policies.

Anwar said policies such as the Digital Transformation, National Energy Transition Roadmap and New Industrial Master Plan 2030 are helping investors see the country’s strengths.

“Malaysia is now attracting investments from companies like Infineon, Nvidia and dozens more, requiring around 30,000 engineers that we cannot fully fulfil.

“Therefore, the focus of parents and Malay children must be in the fields of science and mathematics and TVET (Technical and Vocational Education and Training), which are being vigorously pursued by Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi to enhance their capabilities,“ he said.

He was speaking at the Melaka state-level Aidilfitri MADANI 2024 celebration at the Melaka International Trade Centre (MITC) in Ayer Keroh here tonight.

Also present were Melaka Yang Dipertua Negeri Tun Mohd Ali Rustam, Ahmad Zahid and Chief Minister Datuk Seri Ab Rauf Yusoh.

Therefore, Anwar called on all parties at all levels to make changes in attitude and mindset to prevent the country from falling behind in various aspects.

“I truly hope there will be a change in attitude and mindset. If not, we will lag behind because we are fighting and quarrelling over small matters at the expense of the core issues. We will not only fall behind among competing races but also among developed countries.

“I don’t want our people to be left behind because we are grappling with trivial matters, and we will be defeated in this competition,“ he said.

Anwar said the government intends to establish a new faculty based on AI at Universiti Teknologi Malaysia (UTM) following his previous meeting with a Taiwan-based company.

Source: Bernama

PM: Malaysia gains prominence as investment destination due to political stability


Content Type:

Duration:

The Selangor state government, through its digital economy arm the Selangor Information Technology and Digital Economy Corp (Sidec), will lead the establishment of an integrated circuit (IC) design hub in Puchong, touted to be the largest in Southeast Asia.

The project — in collaboration with the federal government, international semiconductor firms and venture capitalists — is a strategic move to position Malaysia as a potential powerhouse in the global IC design industry.

Sidec chief executive officer Yong Kai Ping said Malaysia must quickly seize opportunities in chip design to move up the semiconductor value chain as competition intensifies.

“The IC Design Park will elevate Malaysia closer to the front-end IC design segment from the back-end process of packaging and testing,” he said in a statement on Monday.

The proposed IC Design Park, poised to begin operations by July 2024, has already secured the commitment of four partner companies, including ARM Ltd, Phison Malaysia, SkyeChip Sdn Bhd and Shenzhen Semiconductor Industry Association.

ARM, a subsidiary of the Japanese conglomerate SoftBank, is a notable name in the global semiconductor industry as it specialises in providing intellectual property (IP) cores and related technologies for processors. It licenses its designs to over 1,000 global partners like Apple, Microsoft and Samsung.

Phison Malaysia, established in 2000 by Datuk Pua Khein-Seng, who is famous for inventing the world’s first single-chip USB flash drive or pen drive, is the world’s largest independent provider of NAND Flash controllers and comprehensive storage solutions. The company plays a critical role in supplying essential technology for data storage across both consumer and enterprise-level products, according to Sidec.

SkyeChip, founded in 2019, specialises in the development of proprietary silicon IP and is already making a name for itself in artificial intelligence and high-performance computing IC solutions.

The Shenzhen Semiconductor Industry Association, meanwhile, boasts a membership of 587 semiconductor companies operating in China. It offers a comprehensive suite of support services to the semiconductor industry’s ecosystem such as research institutions and universities, extensive supply chain management, financial services and intellectual property management.

Phison to invest RM100 million to set up start-up company in Malaysia

Separately, Pua announced that the Taiwan-based NAND storage solutions provider Phison Electronics Corp is investing RM100 million to set up a start-up company called MaiStorage in Selangor, and plans to move over RM1 billion worth of matured technology back to his homeland.

Two of Phison’s five co-founders, including Pua, are from Malaysia.

Pua said Phison will collaborate with Mimos Bhd to grow Malaysia’s technology industry, hoping to groom 300-500 NAND storage talents within 18 months, creating high-paying jobs for the country.

“We are willing to offer higher-than-industry salaries to these underappreciated talents, more than RM6,000 a month for example, and fresh graduate’s starting pay will be RM8,000 with additional bonus,” he was reported as saying at the KL20 Summit 2024 on Monday.

Earlier on the same day, Prime Minister Datuk Seri Anwar Ibrahim in his keynote address at the KL20 Summit 2024 unveiled the plan to build the largest IC design park in Southeast Asia by Sidec, with ARM licensing its technology to the IC design park.

The proposed IC design park, Anwar said, is part of Malaysia’s efforts to move beyond backend chip assembly and testing and into high-value front-end design work.

At the summit, Anwar, together with Economy Minister Rafizi Ramli, Digital Minister Gobind Singh Deo, Science, Technology, and Innovation Minister Chang Lih Kang, and Federal Territories Minister Dr Zaliha Mustafa, witnessed the signing of a letter of intent for the establishment of the IC Design Park signed by Sidec’s Yong, ARM president of Asean CK Tseng, Phison’s founder and chief executive officer (CEO) Pua, SkyeChip CEO SK Fong, and Shenzhen Semiconductor Industry Association president Zhou Shengming.  

The IC Design Park will be equipped with common public service tools and facilities, including affordable electronic design automation (EDA) tools, servers, intellectual property (IP), multi-project wafer (MPW) services and training programmes.

The primary goal of the park is to promote original design manufacturing (ODM), encouraging local involvement in product design, prototyping, and production — shifting from “Made in Malaysia” to “Made by Malaysia”.

Source: The Edge Malaysia

Malaysia announces largest integrated circuit design park in SEA, attracts SoftBank’s ARM, Phison


Content Type:

Duration:

Malaysia is poised to become a powerhouse in clean and renewable energy in the Southeast Asian region, especially with the emergence of high-tech industries ramping up electricity demand, said industry players.

Speaking at the KL20 Summit 2024 during a forum titled “The Future of Clean Energy,” OCI Holdings Ltd chairman Lee Woo-Hyun highlighted several factors making Malaysia an attractive destination for energy investments which include its strategic geographical location, abundance of potential human capital and the conducive policies adopted by the government.

Lee emphasised Malaysia’s stability amid geopolitical tensions, making it an appealing choice for industry players looking to secure their supply chain networks.

“Malaysia has proven to be beneficial due to its neutral stance in geopolitical tensions. This makes the country highly potential for clean energy investments,” he said.

However, Lee noted that for Malaysia to fully realise its potential, it needs to focus on developing the skill sets of its labour force, stressing the importance of training the workforce to meet the demands of clean energy and emerging high-tech industries.

“The problem is there is a strong mismatch between some graduates’ actual skills and the skill sets required by companies. There is still a learning curve to bridge this gap,” Lee said.

Meanwhile, Google’s Asia-Pacific head of clean energy and power Giorgio Fortunato, also a panellist in the forum, emphasised the importance of a stable energy landscape for the growth of the digital economy as tech companies rely on stable and reliable electricity to operate their data centres effectively.

“We are currently in a transition period where many markets across the Asia-Pacific are establishing new policy frameworks and mechanisms for energy users like us to procure carbon-free energy. There is no better way to operate data centres than using clean energy,” he said.

Fortunato added that the tech giant is committed to providing upskilling opportunities for 300,000 Malaysians by 2026. Additionally, they are exploring the potential establishment of a data centre for their digital services, accelerating artificial intelligence (AI) innovation to enhance economic competitiveness and developing cloud-first policies for the AI economy.

He said these initiatives are part of a collaboration outlined in a Memorandum of Understanding (MOU) signed with Malaysia last year which was part of Google’s broader initiative to foster growth in businesses of all sizes, empowering them to become more competitive in the digital economy.

Source: Bernama

Malaysia poised to become powerhouse in clean, renewable energy, industry players say


Content Type:

Duration:

An investment of up to RM3 billion will be made by sovereign wealth fund Khazanah Nasional Bhd, Retirement Fund (Incorporated) (KWAP) and Blue Chip Venture Capital (BCVC).

Prime Minister Datuk Seri Anwar Ibrahim said the investment will be made in South-east Asian (SEA) and Malaysian ecosystems under the Asean Investment Initiative.

Speaking at the launch of KL20 Summit 2024 here today, Anwar, who is also the finance minister, also announced that Khazanah Nasional will launch a “National Fund of Funds” with an initial RM1 billion allocation to invest in innovative high-growth Malaysian companies.

He said this was following the Malaysia Madani Budget 2024 announcement last year, which outlined the government’s commitment to Malaysian companies, from Bumiputera entrepreneurs to start-ups, small and medium enterprises (SMEs) and rising champions.

“The government also aims to centralise investment agencies such as Malaysia Venture Capital Management Bhd (Mavcap) and Penjana Kapital under Khazanah Nasional,” he added.

BCVC is a specialised fund that aims to enhance technology and value in the semiconductor industry. 

Source: Bernama

PM Anwar: Khazanah, KWAP and Blue Chip VC to invest up to RM3b in SE Asian, Malaysian ecosystems


Content Type:

Duration:

Fresh from divesting a majority stake in oil and gas (O&G) company Icon Offshore Bhd, government-linked private equity firm Ekuiti Nasional Bhd (Ekuinas) is eyeing to invest in some key companies in the pharma manufacturing and industrial machinery sectors in the current quarter.

Without going into details, chief executive officer Datuk Syed Yasir Arafat Syed Abd Kadir told StarBiz the firm hopes to close and announce two investments in the pharma manufacturing and industrial machinery sectors sometime in the second quarter of 2024.

“Generally with our investments, we acquire between 20% and 100% stakes. In deal sourcing and acquisitions, we will continue to take a capabilities-driven approach. We will maintain our focus on targets which have demonstrated capability or have strong potential to scale up the value chain, embrace disruption and move into new markets.

“Our investment appetite is currently focused on export-based businesses, pharma and healthcare, technology-driven solutions and new industries,” he added.

Syed Yasir Arafat said that in the first quarter, Ekuinas made a divestment in Icon Offshore, which the firm has been holding for over 10 years – well over its investment horizon.

Despite the challenges in the O&G sector, Ekuinas made profitable returns on its investment, he said.

In addition, he said Ekuinas has a couple of investments that are ripe for exit and it would continue to seek profitable exit opportunities.

Last month, Ekuinas sold its 50.2% controlling stake in Icon Offshore to Liannex Maritime Sdn Bhd for RM172.7mil. It still has a 5.8% stake in the O&G company.

“We are looking at deploying our dry powder in high-growth and high-value sectors that will support the growth of the Malaysian economy. In particular, we are pivoting towards investments in export-oriented sectors, taking advantage of the current level of the ringgit.

“Certain segments in manufacturing, namely pharmaceuticals, healthcare, food and industrial products are sectors which fit this profile. We are also looking at new areas that hold high potential for Malaysia and the region, such as cybersecurity and other digital services.

“We will continue to deploy funds from our Dana Asas fund, aimed at mid-market bumiputra companies. This has been our focus though not without challenge, as due diligence for smaller and younger companies is more complex,” Syed Yasir Arafat noted.

Dry powder refers to cash reserves that corporations and private equity funds have available to deploy when an attractive investment opportunity arises. For the financial year 2023 (FY23), Ekuinas funds under management stood at RM4.24bil.

In terms of the outlook for deal making this year, Syed Yasir Arafat said it would likely continue to be a challenge.

With inflation in the United States edging upwards over recent months, he said interest rates may stay elevated for a few more quarters.

As the geopolitical outlook is also decked with red flags at the moment, the fund expects the volatile economic situation to persist for at least a few more quarters, he added.

Separately, Syed Yasir Arafat said value creation and strengthening the firm’s portfolio companies remains a priority.

“We remain single-minded in our efforts to add, upskill and strengthen the digitalisation capabilities and expertise of our portfolio companies to ensure their readiness in meeting the next wave of competition.

“Equally important is finding the right talent and developing existing talent to lead with agility and momentum. Ekuinas will continue to work alongside its portfolio companies to augment their capabilities in navigating through a volatile and challenging environment,” he added.

For FY22, the fund’s portfolio companies recorded a consolidated revenue growth of 30.2% and earnings before interest, tax, depreciation and amortisation growth of 31.3%, compared with 12.3% and 27.2%, respectively, in FY21.

On the prospects of the private equity fund management industry this year, Syed Yasir Arafat said the outlook and challenges would be shaped by unprecedented uncertainties in global economics and geopolitics.

“With US-China relations tense, the Middle East in turmoil and the end of an era of cheap money with rising interest rates, the landscape is fraught with challenges.

“These disruptions are not isolated events but part of a series of ongoing global crises, leading to structural changes that affect everyone.

“Within the private equity industry, exits are proving difficult, fundraising is sluggish and rising interest rates hinder financing for dealmaking. The next few years may be lean, testing the resilience of private equity firms,” he said.

On the local front, Syed Yasir Arafat said the private equity market anticipates another challenging year for dealmaking.

“Despite an expected gross domestic product growth of 4% to 5% for this year, obstacles such as sluggish consumer demand, elevated inflation and a weakened currency loom large.

“Furthermore, uncertainty regarding policies, including potential new taxes and subsidy adjustments, compounds the challenges ahead,” he pointed out.

On another note, Syed Yasir Arafat said Ekuinas’ purpose as a private equity company and business continues to be guided by both its financial and social objectives and values, as its efforts to integrate its environmental, social and governance framework internally across its business and portfolio companies continues seamlessly.

“Through Iltizam, our corporate social responsibility arm, we deepen the impact of our initiatives to create enduring pathways to safeguard economic opportunities and upliftment, towards sustainable income.

“We are consistently and systematically reaching out to and creating meaningful opportunities and impact on the bumiputra entrepreneurs, youth, underprivileged and underserved individuals and communities,” he said.

Source: The Star

Focus on pharma manufacturers


Content Type:

Duration:

This scheme incentivises property owners to invest in solar energy systems by offsetting their electricity bills and potentially earning revenue from surplus energy generation

IN MALAYSIA, both commercial and residential properties have been increasingly adopting solar power installations. The Net Energy Metering (NEM) scheme allows property owners to install solar panels and generate electricity for their consumption while also selling excess energy back to the grid.

This scheme incentivises property owners to invest in solar energy systems by offsetting their electricity bills and potentially earning revenue from surplus energy generation. Additionally, there are various financing options and incentives available to encourage solar power adoption, making it accessible to a wider range of consumers. 

According to the Sustainable Energy Development Authority (SEDA), NEM was introduced in November 2016 to promote the adoption of renewable energy (RE), particularly solar energy. 

Initially, the scheme had a quota allocation of 500MW until 2020. To further incentivise NEM uptake, NEM 2.0 was introduced in January 2019, allowing for a true net energy metering concept where excess solar energy could be exported back to the grid on a one-to-one offset basis. 

The implementation of NEM was overseen by various authorities, including the Ministry of Energy and Natural Resources (KETSA), and the Energy Commission Malaysia (EC) SEDA Malaysia. 

Due to high demand and to promote solar energy usage, NEM 3.0 was launched in December 2020, offering more opportunities for consumers to install solar PV systems. The energy and natural resources minister introduced NEM 3.0 to accommodate the overwhelming response from the photovoltaic (PV) industry. 

The new programme offers an additional quota of 100MW for NEM Rakyat and 300MW for NOVA. The quota offer period extends until December 2024 or until all quotas are allocated, with the total quota allocation under NEM 3.0 being up to 1,450MW. 

In a statement to The Malaysian Reserve (TMR), SEDA stated that the NEM programme aims to encourage the installation of solar panels on rooftops that will encourage clean electricity generation for homeowners and businesses. 

“Since its inception, NEM has provided opportunities for individuals such as homeowners to contribute to the energy transition agenda. This is definitely a positive progress for Malaysia’s energy landscape as the energy transition agenda is a national agenda that requires a whole of nation approach from individuals to businesses,” it said. 

SEDA also stated that as of February 2024, the breakdown of its solar residential by programme is at 16.86%. 

Approval mandates obtaining a licence for systems exceeding 72kWp for three-phase and above 24kWp for single-phase. Consumers can purchase systems outright or opt for leasing arrangements, offering power purchase agreements or solar leasing. 

Tax incentives for homeowners are limited, while businesses can benefit. Options for financing include extended credit card payments or bank loans. This promotes both reduced bills and environmental sustainability. 

Homeowners’ Insight of Solar Panel Usage

In Malaysia, homeowners typically use solar panels to reduce their electricity bills and achieve long-term savings on energy costs. Additionally, many homeowners are motivated by environmental concerns and aim to reduce their carbon footprint by using RE sources like solar power. 

Going further into the consumer perspective, TMR had a brief conversation with several homeowners who have installed solar panels to gain insights into their experiences. 

43-year-old Mohd Ridzam Abdullah used his savings from the Employee Provident Fund to install an 8kW solar panel system which cost around RM30,000. 

He said using solar panels at home affected his monthly electric bill. 

“My monthly electricity bill, which was between RM800-RM1,300, has decreased significantly to RM50-RM90,” he said. 

Mohd Ridzam also emphasised that employing solar panels enables him to track his home’s electricity consumption via a smartphone app. Nonetheless, he highlighted Tenaga Nasional Bhd’s (TNB) monitoring of his residence due to the surplus electricity being resold to TNB. 

“The use of solar panels at home is indeed worthwhile. While it may require some time for it to become #nancially rewarding, the investment is still worth it,” he further added. 

On the other hand, 51-year-old Mohd Syamil Mohd Yusri recalled his encounter in employing a solar hybrid system as opposed to being connected directly to the grid. 

“If a solar panel is installed primarily for cost savings, the electricity bill reduction is not significant after factoring in the initial investment. However, if the goal is uninterrupted power supply, the investment is worthwhile,” he told TMR. 

According to him, installing solar panels at home requires a substantial upfront investment and it may take several years to recoup the costs through savings on electricity bills. 

Nevertheless, he highlighted one of the advantages is that during power outages, the house remains illuminated and Internet connectivity is maintained, except in cases of total blackouts. 

However, he said the inverter needs to be maintained and safeguarded by the owner. 

“If it is invaded by lizards, it will affect the metal-oxide-semiconductor field-effect transistor (MOSFET) and Insulated gate bipolar transistor (IGBT) inside the solar panel,” he said. 

Both the MOSFET and IGBT are types of semiconductor devices used to power electronics, including solar panel systems. 

MOSFET is a type of transistor that operates by controlling the $ow of current between the source and drain terminals using an electric field. 

In a solar panel system, MOSFETs are commonly used in charge controllers and inverters to regulate the $ow of electricity from the solar panels to the battery or grid. 

MOSFETs are known for their high switching speed, low on-resistance and efficiency, making them suitable for applications requiring high-frequency switching. 

Meanwhile, IGBT is a semiconductor device that combines the high-speed switching capability of a MOSFET with the high current-handling capability of a bipolar transistor. 

In solar panel systems, IGBTs are often used in inverters to convert the DC power generated by the solar panels into AC power suitable for use in homes or to feed into the electrical grid and preferred for high-power applications. 

Govt to Drive Solar Energy Adoption

The Green Technology tax incentives, effective from Jan 1, 2024, introduces new qualifying activities like green hydrogen, electric vehicle (EV) charging stations, and wind energy, encouraging sustainable practices. Businesses can apply for GITA projects and GITE Solar Leasing until Dec 31, 2026, through Malaysian Investment Development Authority (MIDA). 

The National Energy Transition Roadmap (NETR) aims for net-zero emissions by 2050, with targets of 31% RE by 2025, 40% by 2035, and 70% by 2050, fostering a gradual increase in RE shares. 

Flagship projects like PV are anticipated to draw over RM25 billion in investment, creating up to 23,000 jobs while reducing greenhouse gas emissions by over 10,000Gg CO2 equivalent annually.
NETR’s Responsible Transition (RT) Initiative fosters economic growth through green mobility, renewable energy, and emerging technologies, with projected investments of RM1.2 trillion to RM1.3 trillion by 2050 and an additional RM220 billion to GDP, creating 310,000 green jobs by 2050, benefitting medium to low-income households. 

Prime Minister Datuk Seri Anwar Ibrahim lauds NETR for job creation, boosting investment, and ensuring energy security, aiming for regional leadership in clean energy. 

The EN1 initiative launches the National Energy Transition Facility (NETF) to streamline investments for energy transition projects, with an allocated RM2 billion seed funds to support less bankable projects, crucial for Malaysia’s decarbonisation efforts. 

Delving deeper into the NETR, it highlighted some current statistics of energy emissions of Malaysia. Natural gas will not only be a transitional fuel, but also the main contributor of Total Primary Energy Source (TPES) at 57 megatonnes of oil equivalent (Mtoe) at 56% followed by renewables that include solar, hydro and bioenergy, which collectively contribute 23% of TPES in 2050 from a mere 4% in 2023. 

Since 2011, solar PV remains the most encouraging segment of the national RE landscape with an installed capacity compound annual growth rate (CAGR) of 48%, expanding from 0.1GW to 2.6GW. 

In short, based on past accomplishments and compliance with established benchmarks, the NETR report affirmed a high level of confidence that Malaysia can attain a 70% RE share of installed capacity by 2050, primarily propelled by the installation of solar PV systems. 

Nevertheless, the report underscored the imperative need for steadfast commitment to the expansion of solar capacity over the next three decades to reach a total installed capacity of 59GW by 2050. 

This commitment comes with some challenges, naturally. Large-scale-solar (LSS) development includes a variety of problems. The scattered development approach and lengthy permitting processes lead to higher development costs. This in turn limits the potential of LSS projects to be able to add to RE efforts. 

Furthermore, there are regulatory barriers and a technology-agnostic LSS bidding mechanism further slows the potential growth of innovative solar technologies like $oating solar and agrivoltaics. Such limitations shine a light on the need to be more streamlined and more supportive frameworks to foster broader adoption of RE solutions in the future. 

Currently, the estimated investment required by NETR anticipates that Malaysia needs an investment of up to RM1.3 trillion by 2050. In this decade alone, 18% of funding is required mainly in RE power generation and green mobility. High investment in RE power generation means high expansion of solar PV and hydropower as well as improving and strengthening of public infrastructure. 

Regarding green mobility, the investments call for the expansion of public transportation, amplification of domestic EV production capacities and increased manufacturing of EV charging infrastructure. 

Despite all the efforts, the adoption of solar panels in residential areas faces challenges such as high upfront costs, limited financing options and technical barriers. Additionally, some homeowners may lack awareness of the benefits of solar energy or may be hesitant to invest in solar panels due to concerns about reliability or maintenance. 

While the exact percentage of residential areas in Malaysia using solar panels may vary, it is generally considered to be a growing trend as awareness of RE increases and technology advances. However, the adoption rate is still relatively low compared to countries with more mature solar markets. 

Townships with Solar Panels Equipped 

Another contributor to the spreading of solar panel usage within Malaysia is the real estate developers who have decided to invest in housing projects that have solar power systems built in. 

In Malaysia, the integration of solar panels into residential developments is an emerging trend among forward-thinking property developers, especially with the growing emphasis on sustainability and energy efficiency. 

Some notable residential areas and developments that have been equipped with solar panels by developers in Malaysia include a township in Taman Bertam Heights (TBH) developed by Teladan Setia Group Bhd, a subsidiary of Teladan Setia Sdn Bhd. 

The project which is also Malacca’s first solar-powered ready homes is a collaboration with Micro Energy Holdings (M) Sdn Bhd (MEH). 

The project spans over 160 acres (64.75ha) of land all with homes that have solar power amenities built into them. These solar PV systems in its TBH are part of the Phase 2A gated and guarded housing development project in Malacca. 

These will be Malaysia’s first venture into readily-installed new homes powered by solar systems. 

According to a local news report by April 2023, Teladan will have pre-installed solar PV systems ranging from 2KWp to 4KWp for 352 housing units within the development. 

Teladan mentioned in a statement that these solar-ready homes are expected to drive down electricity costs for homeowners by up to 75% in savings. 

Barring extenuating circumstances, the green housing development project is expected to be launched in the third quarter of the financial 2023 (3Q23) and to be completed in 4Q26. It has an approximate gross development value of RM242 million. 

In addition to the solar PV systems saving homeowners up to 75% savings, Teladan also seems to be eyeing the addition of electric vehicle (EV) charging stations. 

Teladan MD Richard Teo Lay Ban, stated that the group also plans to incorporate EV charging stations in their future development prospects to facilitate and boost the adoption of EVs and will help in mitigating carbon emissions. 

This addition on top of the solar PV initiative, shows the dedication of pioneering companies that stays prudent and tailored to meet market needs, while also recognising the need and benefits of a greener, safer and more connected Malacca living experience. 

The strive towards being more eco-friendly however must not fall squarely on housing corporations, and while the market might be amicable towards green homes, there is still work to be done to spread this idea further in the public consciousness. 

Thus, it is also up to the government, as well as entities collaborating with the Malaysian government to be able to lead Malaysia into an eco-friendlier future with the help of massive initiatives such as pre-installed solar PV housing. 

Other than that, there is Sunway City, Selangor, which has pioneered efforts in sustainable living, evidenced by its certi!- cation as Malaysia’s first Green Building Index-certified township and a Low Carbon City recognised by the Malaysian Ministry of Environment and Water. 

Major developer, Sunway Property has been incorporating solar panels in various parts of the township, including residential units, to promote sustainable living. Sunway also stated its ambitious goal on its website to obtain 40% of its electricity from renewable sources by 2030, aligning with Malaysia’s national objective. 

To achieve this, the group plans to either locally generate renewable energy or purchase it from solar farms or green power stations. Besides that, the group is also intensifying efforts to upgrade the energy infrastructure in Sunway City Kuala Lumpur and fostering innovation to drive a widespread shift toward clean energy. 

Sunway City KL 

In 2022 alone, Sunway City Kuala Lumpur (KL) generated 3,210MWh of RE, sufficient to power around 443 homes annually, while the group as a whole produced nearly 10GWh, capable of powering over 850 homes yearly. 

Apart from that, the city prioritises preserving nature by dedicating 40% of its land to greenscapes and bluescapes, hosting over 30,000 trees and implementing eco-friendly initiatives like the use of NeuPave concrete material for pavements to reduce heat absorption and mitigate flooding. 

Additionally, the city boasts a comprehensive public transit system, including bus rapid transit services and elevated canopy walkways, which significantly reduce carbon emissions and vehicular traffic. 

Sunway Group’s commitment to sustainability extends to its Green Building Policy, aiming for all new buildings to be green-certified by 2025. These efforts align with the UN Sustainable Development Goals and exemplify Sunway’s dedication to leading the way in sustainable urban development. 

Another residential project present in Malaysia is located in the heart of Setia Eco Park in Shah Alam. This Eco Park boasts D’Network — a food and beverages (F&B) hub with many facilities that contain solar PV systems in many of its facilities. 

On the D’Network website, they mention that are the first solar-powered hybrid F&B hub. D’Network is powered by 207kWp of solar power system instead of the typical electrical grid supply which creates a sustainable dining experience for its patrons. 

In addition to that, they also have the world’s first solar-powered musical fountain at this hub. Named the Symphony of Sustainability, their iconic fountain charges during the day and lights up with many colours at night, where D’Network patrons can tune into the changing lights and tunes. 

An interesting benefit of the sustainable environment of D’Network is how the shade provided by the Cerekah Hill forest reserve creates an environment where it is one to two degrees cooler than the general surrounding area. This shows an additional benefit to developing residential areas that keep sustainability in mind. 

Finally for pet owners there they also boast the world’s first solar-powered pet-friendly park. This park has manicured greenery as well as waste disposal bins where owners and pets can interact with other owners and pets in this pet park. 

Other notable residential areas and developments that have been equipped with solar panels by developers in Malaysia include Setia Eco Glades, Cyberjaya. Developed by SP Setia, the project features homes with solar PV systems and other green technologies, aiming for energy-efficient living. The freehold town has built-up of 2,200 sq ft to 4,297 sq ft (399.2 sq m) for houses and was completed around 2015. 

Diamond City, Semenyih 

The development by Country Garden Malaysia which was launched in 2014, boasts of being the first Spanish villa township in Malaysia, with some homes equipped with solar panel systems. According to Diamond City website, the project is currently ongoing as of April 2024. From the project, unit 2A has been fully completed, while unit 2B is at 90%, unit 2C at 50% and unit 2D at 25% completion rate. 

Eco Ardence, Setia Alam, developed by Eco World Development Group Bhd project includes homes that are designed with sustainability in mind, featuring solar panels to reduce dependence on non-renewable energy. 

The project offers 999 units spanning over 533 acres and is a mixed residential development consisting of semi-Ds, link homes, bungalows, terrace homes and townhouses with various configurations within the compound. The properties in this estate range from 1,012 sq ft to 4,300 sq ft for houses, 1,540 sq ft to 1,650 sq ft for offices, and 3,300 sq ft for shop offices. 

Eden @ Jalil City located at Taman Puncak Jalil, Seri Kembanga which was developed by Eden Estates, focuses on sustainable homes with solar power and rainwater harvesting systems. The freehold terraced housing project was completed in 2014 and consists of a total of 64 units. 

Tropicana Aman, Kota Kemuning. Developed by Tropicana Corp, the township focuses on sustainable and eco-friendly features, including homes with solar panels. 

Bandar Rimbayu, Telok Panglima Garang by IJM Land, includes sustainable features like solar panel installations to create a green living environment. 

With developments readily equipped with solar panel systems, these developers are contributing to the trend of sustainable residential developments by incorporating solar energy systems, which not only help reduce the carbon footprint but also offer residents long-term savings on energy costs. As Malaysia continues to promote renewable energy, more developers are likely to include such eco-friendly initiatives in their future projects. 

To conclude, there seems to be large and continuously growing support for solar projects in Malaysia. With experts and a plethora of organisations, as well as the government, all striving towards a more eco-friendly and renewable energy-based future, Malaysia’s energy landscape will be bound to shift more sustainably over the next few decades.

Source: Malaysian Reserve

Driving Malaysia’s solar power adoption through commercial, residential properties


Content Type:

Duration:

EG Industries Bhd has signed a second letter of intent with US-based Cambridge Industries Group (CIG) to produce the next-generation 1.6T advanced high-speed optical signal transmitter and receiver for 5G wireless networks at EG Industries’ new Smart Factory 4.0 in Penang (PG2).

In a statement, EG Industries said the 1.6T photonics optical modules represent the industry’s latest advancement, enabling high-speed data transmission in 5G wireless networks for automation and Artificial Intelligence (AI) applications.

EG Industries is CIG’s exclusive manufacturer outside of China, in a strategic partnership for the manufacturing and transfer of technology and intellectual property of CIG’s photonics solutions.

Additionally, the latest LOI includes the production of 800G optical modules, complementing the previously agreed 100G, 200G, and 400G models in the first LOI in 2022.

The production will take place at EG Industries’ existing facilities in Sungai Petani, Kedah, and the newly built Smart Factory 4.0 which is scheduled to commence operations by the second half of 2024.

Source: The Star

EG Industries expands partnership with US-based R&D firm


Content Type:

Duration:

Sin-Kung Logistics Bhd aims to raise RM26mil from its initial public offering (IPO) en route to a listing on the ACE Market of Bursa Malaysia.

In a statement, the integrated logistics service provider said it will utilise RM10mil of the IPO proceeds to fund its warehousing and distribution services’ expansion to meet the future rising demand from manufacturing and e-commerce sectors.

A further RM2mil of the proceeds will be used to purchase 100 commercial vehicles by 2025, as part of its strategy to further expand its trucking and container haulage businesses.

The remainder of the proceeds will be used to repay bank borrowings amounting to RM9.6mil and working capital of RM1.1 mil, as well as defray the estimated listing expenses of RM3.3mil.

Managing director Alan Ong said the anticipated growth of the electrical and electronics (E&E) industry and the exports of E&E products will not only drive the logistics and warehousing industry as a whole, but will particularly benefit the air freight industry as E&E products are generally high-value items and commonly transported through air freight.

This will in turn create demand for trucking services, including airport-to-airport road feeder services and point-to-point trucking services, to facilitate the movement of E&E products between and to/from airports, he added.

“We are already preparing for the future with the acquisition of our Valdor Office and Warehouse that will add an additional annual capacity of 192,000 pallets, to cater to our customers in the northern region of Peninsular Malaysia when operations begin by the end of 2026.

“The Valdor Warehouse is a built-to-suit warehouse. The acquisition will provide us with more storage space in addition to our existing five warehouses to serve more and larger orders from both our existing customers and potential customers, which will lead us to an increase in revenue of our warehousing and distribution services moving forward,” said Ong.

The IPO is open for subscription until May 2, 2024.

Sin-Kung Logistics’ listing on the ACE Market of Bursa Securities is tentatively scheduled for May 15, 2024.

M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise.

Source: The Star

ACE Market-bound Sin-Kung targets RM26mil in proceeds from IPO


Content Type:

Duration:

Showcasing an improved performance in the latest Quacquarelli Symonds (QS) World University Rankings by Subject 2024, Malaysia is now ranked the third highest in Asia and the sixth highest in the world.

The country charted a 22% improvement rate in the rankings, which offer independent data on the performance of 240 programmes at 25 Malaysian universities.

Among the country’s ranked programmes, 84 improved and 38 were ranked for the first time.

Taylor’s University is the highest ranked Malaysian higher education institution, according to a QS press release dated April 10.

This year, the institution achieved a record-breaking feat with 17 subjects ranked globally and four subjects in the world’s Top 100. Taylor’s placed 19th for Hospitality and Leisure Management, making it Asia’s third best entry for the subject.

It was the first time the varsity’s Marketing programme appeared in the rankings, debuting in the 21-50 band. Other fields which recorded significant achievements were Data Science and Artificial Intelligence in the 51-70 band and Art and Design in the 51–100 band.

Both Accounting and Finance, and Architecture and Built Environment, were in the 101–150 band, while Economics and Econometrics, and Sociology, were in the 151-200 band.

Taylor’s University vice-chancellor and president Prof Barry Winn said the rankings are a testament to the institution’s commitment to teaching excellence and its supportive learning community.

“The inclusion of 17 subjects in the rankings highlights the breadth and depth of excellence across our academic offerings.

“This achievement not only demonstrates our ability to excel in a diverse range of disciplines, but also underscores our commitment to providing a holistic and top-tier education to our students,” he said.

Universiti Malaya (UM) is the country’s most represented institution in the rankings with 38 of its subjects ranked – 21 of which were in the global top 100, including its highest performing entry, Library and Information Management, in 28th place.

The country’s oldest varsity is also home to Malaysia’s two most improved subject entries, with its Pharmacy programme climbing 29 rungs to 72nd spot, and its Economics programme in the top 100, placing 93rd, due to improvements in research metrics, primarily Citations per Paper.

Attributing its success to “hard work and great tenacity”, UM vice-chancellor Prof Datuk Seri Dr Noor Azuan Abu Osman said the entire campus community, particularly the academic and research talent pool and non-academic workforce, has been striving to meet the varsity’s key performance indicators.

He described the rankings as a “push factor” that will drive UM to carry out necessary improvements to face the challenges ahead.

“There is no time for complacency. This feat will inspire us to work even harder for the benefit of the country and the world,” he said.

Universiti Teknologi PETRONAS (UTP) ranked 20th for Petroleum Engineering, making it the second best in Asia, while its Mineral and Mining Engineering programme moved up from 49th to 41st this year.

The varsity is now ranked under two broad subjects – Engineering and Technology, and Natural Sciences – and has eight subjects that climbed in rankings compared to last year.

The most notable improvement is the broad subject Engineering and Technology, which jumped 25 spots from 200th in 2023 to 175th in 2024.

Natural Sciences, said UTP vice-chancellor Prof Datuk Dr Mohamed Ibrahim Abdul Mutalib, is a new entrant and a significant milestone for the varsity.

Describing the achievement as a “significant advancement across multiple areas”, he said the varsity was “thrilled” with its progress in the rankings.

“This recognition acknowledges our growing strength and paves the way for future scientific advancements,” he said, adding that the rankings underscore UTP’s unwavering commitment to providing world-class education.

With 26 of its subjects ranked, Universiti Putra Malaysia (UPM) showed the most improvement in Malaysia.

Its overall improvement rate was 42%, and its highest ranked entry was Veterinary Science, which climbed six positions to place at 40th spot.

Management and Science University (MSU) rose from 46th last year to 29th for Hospitality and Leisure Management.

International Islamic University Malaysia (IIUM) remained in the top 50 for Theology, Divinity and Religious Studies, and UCSI University ranked 42nd for Performing Arts.

“UCSI University is glad to maintain its long-standing tradition of excellence in music and performing arts.

“We are also encouraged to improve our subject ranking in Art and Design by more than 100 positions over the past two years,” its vice-chancellor Prof Datuk Dr Siti Hamisah Tapsir said, adding that the varsity will continue striving to enhance learning experiences, research and graduate outcomes for its students.

QS senior vice president Ben Sowter said universities experiencing upward mobility have benefited from sustained, targeted investment, highlighting the importance of government support.

“Meanwhile, the development of partnerships with industry correlates with improved performance in employment and research,” he added.

The full rankings can be found at https://www.topuniversities.com/subject-rankings/2024.

Source: The Star

Malaysia among Asia’s top three in world rankings


Content Type:

Duration:

South Korea-based energy and chemical company OCI Holdings has announced the official opening of its regional headquarters here, marking a significant milestone in its commitment to expand its presence in the region.

OCI Holdings chairman Lee Woo Hyun said the new OCI M Sdn Bhd office is located in a thriving economic hub in Southeast Asia and will serve as a pivotal centre for the company’s operations, facilitating closer collaborations with stakeholders, partners, and clients across the region.

“We are thrilled to inaugurate our OCI M regional headquarters office in Kuala Lumpur, a vibrant city known for its dynamic business environment and strategic location. This milestone underscores our commitment to deepening our roots in the region and strengthening our partnerships with stakeholders and clients,” he said in his speech during the opening ceremony here today.

The event was officiated by Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

In his speech, Tengku Zafrul called on OCI M to support local demand in the near future as Malaysia is moving aggressively in the front-end semiconductor value chain and green sectors such as electric vehicle development and renewable energy, among others.

There are also many South Korean companies that are working with the country on carbon capture, utilisation and storage (CCUS) which obviously require cutting edge technology products and services, he said.

“I think you (OCI) have a strong manufacturing base in Malaysia now, becoming a global exporter of chemical products. And I am very happy that you have made the decision to have your regional office or headquarters in Kuala Lumpur, which is really a major step ahead,” he said.

He noted that this headquarters will consolidate the functions of OCI in Japan, China, the Philippines and Malaysia in terms of the setting of financial budgets, development of business plans and establishment of a new growth investment initiative.

In addition, he said, the office will manage and support the network of OCI group of subsidiaries across mutiple countries, and be involved in investment ventures into chemicals and solutions not only in Southeast Asia but globally.

Tengku Zafrul said OCI’s move reaffirms the nation’s attractiveness as a preferred destination for foreign investment and underscores the confidence that global companies have in the economy, infrastructure, and skilled workforce.

“It demonstrates our country’s ability to provide a conducive environment for companies to thrive, innovate, and expand their operations,” he said.

Tengku Zafrul said the opening of the regional headquarters office reaffirms OCI’s long-term vision and commitment to driving sustainable growth and prosperity in the region.

By leveraging the diverse talent pool and business opportunities in Malaysia, OCI M aims to further enhance its position as a leading player in the energy and chemical sectors, he added.

Source: Bernama

South Korea-based OCI holdings opens regional HQ in Malaysia


Content Type:

Duration:

Japan looks to forge a closer relationship with Malaysia in line with a new chapter of the Look East Policy (LEP) based on the current economic and social situation.

Japanese Ambassador to Malaysia Katsuhiko Takahashi said while the LEP has made a significant contribution to shaping the Malaysian automotive industry, there is now a need to move into new emerging industries, such as healthcare for the ageing society and disaster prevention, in which Japan has the expertise.

“The LEP started 42 years ago with the sending of students and trainees to Japan to bring back their know-how and expertise from Japan to be implemented in Malaysia for economic development.

“This relationship was created based on the exchange of people and has become a strong foundation for the Japan-Malaysia relationship.

“Now, we are looking at new economic areas for Japan to further collaborate which include cyber security, information technology, resilience of supply chain and energy transition,“ he said in an interview with Bernama.

He elaborated that Japan is also keen to enhance cooperation in artificial intelligence, robotics and green technology, as well as technology that addresses climate change.

According to Takahashi, the policy will also need to move in line with recent developments in the Malaysian economy, which has experienced remarkable growth.

“We can now work as a partner on equal footing in both the public and private sectors,” he said.

He stressed that this is also in line with the elevation of the strong bilateral relations of both countries to a Comprehensive Strategic Partnership (CSP) that was announced in December last year during Prime Minister Datuk Seri Anwar Ibrahim’s visit to Japan.

The CSP, he noted, covers a wider range of issues that include peace and security cooperation, economic prosperity, science, technology, innovation and environment, society, cultural and people-to-people exchange, as well as regional and global cooperation.

Takahashi described the bilateral relations between Japan and Malaysia as a big river that flows and expands smoothly, premised on 67 years of diplomatic and economic ties that can be developed wider and deeper to benefit both nations.

“Since the Malaysian independence, we have (established) good relations, and the cooperation through Asean and enhancing relations through the LEP have contributed a lot in strengthening the Japan-Malaysia relationship,“ he said.

Cooperation through Asean and Regional Initiatives

Takahashi said this is because Japan fully supports Asean initiatives as espoused during the 50th year of the Asean-Japan Friendship Cooperation celebration last year in four areas under the Asean Outlook on the Indo-Pacific (AOIP) framework.

The AOIP is an Asean initiative to promote collaboration in the Indo-Pacific region and covers cooperation in maritime, connectivity, United Nations Sustainable Goals 2030 and economic as well as other possible areas of cooperation.

“For Malaysia and Japan, our common areas are that we are maritime nations, surrounded by the sea and prosper through free trade and the rule of law, and therefore we are looking forward to enhancing collaboration in these areas as well as security in the region,” according to Takahashi.

Malaysia and Japan have established economic partnerships via the Malaysia-Japan Economic Partnership Agreement, Malaysia’s first comprehensive trade agreement that came into force on July 13, 2006.

Subsequently, the Asean-Japan Comprehensive Economic Partnership agreement came into force for Malaysia on Feb 1, 2009, and includes market access through lower tariff concessions and rules of origin.

Similarly, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Regional Comprehensive Economic Partnership and the Indo-Pacific Economic Framework for Prosperity initiatives also enhance regional economic cooperation for both countries.

“Japan and Malaysia can also cooperate together to provide development assistance to other countries that need assistance like Afghanistan, any country in Africa, or Palestine,” he said.

Source: Bernama

Japan looks to forge deeper cooperation with Malaysia – Ambassador


Content Type:

Duration:

The Ministry of Investment, Trade and Industry (MITI) is optimistic that South Korea will climb up the ranks as among the main sources of foreign direct investments (FDI) into Malaysia soon.

This is because most of the investments from South Korea are in the chemical and petrochemical sector, which is one of the focus sectors under the New Industrial Master Plan (NIMP 2030), said its minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said that of the 11 priority segments, the chemicals segment has been identified as one of the high-impact, high-growth sectors that would contribute to the NIMP 2030 overall targets.

“The specialty chemicals market is substantial. And there is an opportunity for Malaysia to capture that business by producing specialty chemicals domestically, capturing both domestic market demand and export opportunities.

“Our strategies are also laid out in our Chemical Industry Roadmap 2030, which aims for our chemical industry to be ranked first in Asean in terms of FDI inflow by 2030,“ he said in his speech during the launch of the new OCI Holdings regional headquarters here today.

In 2023, the country’s main sources of FDIs were Singapore, the United States, China and Japan.

Tengku Zafrul said that collectively, since 2017, OCI Malaysia (OCIM) and its joint venture partners have committed close to RM16 billion in Malaysia.

“We value your support in helping us develop greater industrial linkages domestically and abroad.

“We also appreciate OCIM’s latest investments amounting to RM7 billion, which I was informed will be used to produce polycrystalline silicon for semiconductor and solar cells as well as epichlorohydrin (ECH).

“The manufacturing of ECH in Malaysia will strengthen the value chain of epoxy manufacturing, contributing towards increasing the competitiveness of the chemical industry in Malaysia,” he said.

South Korea-based energy and chemical company OCI Holdings has announced the official opening of its regional headquarters here, marking a significant milestone in its commitment to expand its presence in the region.

OCI Holdings chairman Lee Woo Hyun said the new OCI M Sdn Bhd office is located in a thriving economic hub in Southeast Asia and will serve as a pivotal centre for the company’s operations, facilitating closer collaborations with stakeholders, partners, and clients across the region.

Tengku Zafrul said OCI’s move reaffirms the nation’s attractiveness as a preferred destination for foreign investment and underscores the confidence that global companies have in the economy, infrastructure, and skilled workforce.

“It demonstrates our country’s ability to provide a conducive environment for companies to thrive, innovate, and expand their operations,” he said.

Source: Bernama

MITI optimistic South Korea to be among main sources of FDI into Malaysia – Tengku Zafrul


Content Type:

Duration:

The Invest Malaysia Facilitation Centre (IMFC) will play a crucial role in the economic development of Johor, says Datuk Onn Hafiz Ghazi.

The Johor Mentri Besar said establishing the IMFC was among the issues discussed with Prime Minister Datuk Seri Anwar Ibrahim on Thursday (April 18).

“Three matters were discussed during the special Johor development meeting chaired by Anwar in Forest City.

“They are the Johor-Singapore Special Economic Zone (SEZ), Special Financial Zone (SFZ) and the establishment of the IMFC.

“We discussed various details, including the current development of the SEZ’s draft policy; investment prospects; location of choice; and suitable investment initiatives and packages to be offered,” he said in a Facebook post on Friday (April 19).

He added that the main objective of the initiatives was to ensure that Johoreans and Malaysians are given better job opportunities.

“On top of that, the establishment of the IMFC as a one-stop facilitation centre, which provides consultation services and to ease business affairs, is also very important,” he said.

Malaysia and Singapore signed a memorandum of understanding to set up the SEZ on Jan 11.

The IMFC one-stop centre is one of the initiatives that Malaysia and Singapore agreed to look into to support the SEZ.

Other initiatives include the implementation of a passport-free QR code clearance system on both sides and adopting digitalised processes for cargo clearance at land checkpoints.

Source: The Star

Invest Malaysia Facilitation Centre a crucial cog in Johor’s development, says MB


Content Type:

Duration:

The Malaysian Rubber Glove Manufacturers Association (Margma) is optimistic that global demand for rubber gloves will rebound in 2024.

It sees demand surging to 450 billion pieces by 2027 despite the demand dropping to 307.2 billion pieces in 2023.

The association said the trajectory is driven by increased demand in key markets such as the United States, the European Union and Japan, as well as the expanding usage of gloves in non-medical sectors post-Covid-19, including hotels, restaurants, cafes, semiconductor industries, and others.

“The Malaysian Rubber Council (MRC) expects the surge in demand and stands ready to support the industry in achieving its growth targets.

“Collaboration and shared insights will be critical in navigating both local government priorities and international demands,” Margma said in a statement.

Margma president Oon Kim Hung said the global demand for rubber gloves has experienced fluctuations, yet commitment to delivering high quality gloves for the world remains steadfast. “We must prioritise fairness, transparency, and sustainability in all our practices and in particular our pricing practices,” he said.

He said some of the biggest challenges that persist, include the low average selling prices (ASP) and oversupply issues but this does not mean the Malaysian rubber glove industry players should bend on their ethical practices to counter the stiff competition from regional players.

“We can look to other means of addressing competitiveness where we are seeking government support in various matters. We have appealed to the government for the immediate removal of this export cess, to enable the industry to overcome current challenges and enhance its global competitiveness in the post-pandemic era,” he added.

Margma advocates for streamlining policies such as the Gas Supply Agreement (GSA) and the immediate removal of the export cess to enhance industry competitiveness.

He said for over two decades, the rubber glove industry has been burdened with a 0.2 per cent export cess, amounting to over RM500 million in payments.

“In our most prosperous years, this cess accounted for up to two per cent of our gross profit margin.

“However, given the current economic climate, with the Average Selling Price (ASP) falling below production costs, the industry continues to incur losses on every exported container,” he added.

Margma is calling for all industry players to advance prioritising environmental, social, and governance (ESG) standards to secure the industry’s future.

At the same time, Oon said the association is actively engaging in collaboration with MRC and the Malaysian Rubber Board (MRB) to support members in improving their ESG scorecards and adopting sustainable practices as well as digitalisation in alignment with the Madani government’s call.

“In collaborating with MRC, MRB, and the Malaysian Productivity Corporation (MPC) to implement the ‘Malaysia Sustainable Natural Rubber’ initiatives, we should also ensure that it includes ‘Green Gloves’ and other eco-friendly glove options. These efforts underscore our commitment to sustainable practices and environmental stewardship,” he continued.

Oon said the association members are fully committed and have made substantial progress towards compliance with the EU Deforestation Regulation (EUDR) and Corporate Sustainability Due Diligence Directive (CSDDD) of European Union countries. 

Source: Bernama

Margma confident global demand for rubber gloves will rebound in 2024


Content Type:

Duration:

Switzerland-based electrical measurement technology specialist Life Energy Motion (LEM) unveiled its new RM78 million state-of-the-art manufacturing facility in Penang on Friday.

Situated at Penang Science Park, the plant is aligned with LEM’s growth strategy, which is driven by the increasing global demand for its core products, including current and voltage sensors. This demand stems from the imperative of decarbonization across sectors such as automation, automotive, traction and renewable energy.

As part of its expansion plans, LEM aims to grow its current headcount of 70 people to over 200 by March 2025, with projected sales from the factory exceeding Swiss francs 200 million (RM1.05 billion).

Penang Chief Minister Chow Kon Yeow expressed delight that LEM has chosen to invest not only in the region, renowned for its supply chain resilience and well-developed ecosystem, but also in the acknowledged expertise of its people.

Meanwhile, Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer(CEO) of MIDA, praised LEM’s integration of advanced manufacturing technology and sustainability in its new Penang factory, highlighting it as evidence of Malaysia’s appeal as a prime investment destination.

“This milestone not only propels Malaysia towards a more environmentally conscious future but also fosters collaborations driving technological innovation, economic prosperity, and sustainable development for Malaysia and beyond,” he said.

LEM’s CEO, Frank Rehfeld, emphasized the importance of investing in cutting-edge facilities to produce top-notch products for various fast-growing markets, particularly in uncertain times.

“It is crucial for LEM to increase its resilience and enhance customer service by investing in advanced production facilities and skilled personnel capable of manufacturing the best products to meet the demands of this growing sector,” he added.

Source: The Edge Malaysia

Swiss firm Life Energy Motion inaugurates RM78 mil plant in Penang


Content Type:

Duration:

Automotive electronic parts manufacturer MCE Holdings Bhd has commenced the construction for its MCE Auto Hub, the company’s new manufacturing facility in Serendah, Selangor, with an initial investment of RM50 million for the first phase of the development. 

MCE group managing director Dr Goh Kar Chun said upon completion, the hub will serve as MCE’s primary production facility, bolstering its capacity to meet the growing demand for electronic components and systems in both internal combustion engine (ICE) vehicles and electric vehicles (EVs). 

“The investment signifies our aim to lead in supplying automotive electronics and mechatronics parts in the region, capitalising on Malaysia’s advantage and its highly established electrical and electronics (E&E) industry, enhancing our capacity in supplying sophisticated products that are designed, produced, and made in Malaysia,” he said during the construction commencement ceremony on Friday. 

Goh said the plant will seek to address the evolving needs of next-generation automobiles, particularly in advanced automotive electronics such as cockpit infotainment systems, digital displays, and various components for both ICE vehicles and EVs.

Furthermore, Goh noted that MCE is committing a further investment of RM150 million to RM200 million over the next 10 years in the new manufacturing facility to ensure the company remains competitive to support the government’s aspiration to become a regional leader in manufacturing, engineering, technology and sustainable development in the automotive sector, as outlined in the National Automotive Policy 2020 (NAP 2020).

Construction for the first phase of the new plant is expected to be completed by the end of the year, with operations slated to begin in 2025.  

MCE’s net profit in the second financial quarter ended Jan 31, 2024 (2QFY2024) rose marginally by 6.4% to RM4.52 million from RM4.25 million in the previous year, mainly due to an increase in demand for the group’s products from its customers.

Quarterly revenue inched up 2.3% to RM40.05 million from RM39.13 million.

Shares of MCE were down one sen or 0.65% to close at RM1.52 on Friday, with a market capitalisation of RM187.81 million. However, the counter has risen 56.7%, or 55 sen, over the past year. 

Source: The Edge Malaysia

MCE Holdings commences construction for RM50 mil manufacturing facility in Serendah


Content Type:

Duration:

Malaysia has demonstrated its ability to turn approved investments into actual investments, with as much as 78.7 per cent of the total approved investments from 2018 to June 2023 already realised, said Malaysian Rating Corporation Bhd (MARC).

With the New Industrial Master Plan (NIMP) 2030 expected to attract more foreign investments, attaining net benefits from external collaborations towards higher value-added exports should be prioritised, it said in a statement today.

MARC noted that the materialisation of foreign investments over time will raise Malaysia’s net foreign direct investment (FDI) inflows-to-GDP ratio, which, at 3.6 per cent as of 2022, is ahead of most of its peers in the region.

“Facilitating technological diffusion requires absorptive capacity supported by well-designed investment policies, high quality infrastructure and continuous human capital investment.

“This is required to facilitate the timely implementation of approximately RM188 billion worth of approved foreign investments in 2023, a 15.3 per cent increase over those recorded in 2022,” it said.

According to MARC, Malaysia’s medium- and high-tech exports as a share of total manufacturing exports (ME) declined from 76.4 per cent in 2000 to 62.0 per cent in 2021, due to regional competition.

Additionally, there has been a decline in the attractiveness of Malaysia’s exports, alongside receding interest in the country as a base for outsourcing, it added.

“In response to these challenges, the NIMP 2030 outlines medium-term strategies to progress towards producing high-value and competitive goods, building upon past industrial master plans that have developed a mature yet recently plateaued electronic industry.

“While the goal includes increased employment, higher wages and greater value add in the manufacturing sector, successful execution remains a key challenge,” it said.

Source: Bernama

Malaysia capable of turning approved investments into actual investments — Rating agency


Content Type:

Duration:

The government is looking at the need to formulate policies and amend any relevant legislation so that Malaysia is always investor-friendly and can support the development of artificial intelligence (AI) infrastructure, said Prime Minister Datuk Seri Anwar Ibrahim.

However, he said data security should be given priority.

“Malaysia needs to quickly adapt the current economic landscape to continue to grow so that it is always competitive in the region by attracting investment from companies in the technology, AI and blockchain sectors,” he said in a post on Facebook today.

He noted that Malaysia has the National Artificial Intelligence Roadmap 2021-2025 and National Blockchain Technology Roadmap 2021-2025 that have the potential to accelerate the adaptation of AI in the public and private sectors.

“The Madani government is committed to driving the development of the country’s economy, especially in high impact and innovation sectors and providing a conducive business environment,” he said.

The prime minister made these remarks following a discussion held virtually this morning via video conference with Tools for Humanity (TFH) company co-founders Sam Altman and Alex Blania, as well as Ole Ruch from Nordstar.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz and Digital Minister Gobind Singh Deo also participated in the meeting.

The discussion of around 30 minutes touched on several matters related to the rapid development of technology.

“TFH also informed the development of the Worldcoin project, the latest initiative related to identity and the global and inclusive financial network by prioritising the characteristics of confidentiality and providing protection to private information,” Anwar said.

Source: Bernama

Govt mulls investor-friendly policies that support AI development


Content Type:

Duration:

As Malaysia attempts to move away from the back end of the semiconductor supply chain production and towards the higher end of the spectrum, Second Finance Minister Amir Hamzah Azizan reportedly said that Malaysia is not worried about the competition from the United States and China.

He was quoted by the American network CNBC saying Malaysia does not foresee a rivalry forming with the duo since it would be offering a different value proposition by not going for the topmost end of semiconductor chips.

“The semiconductor space is now in the upcycle — and Malaysia will be a beneficiary of that. I think the reality of it all is, there is enough growth that will go around. So, everybody will get some pickups on that one.

“I think where Malaysia competes in, we’re not going to go head-on to the tail end of the high-end competition, where maybe the US is bringing all the parts. Therefore, I don’t think it’s a big challenge for us,” he told a CNBC reporter at the International Monetary Fund spring meetings in Washington.

As geopolitical tensions arise, he said Malaysia must make the most of the global need to have robust supply chain connectivity.

“We’re seeing a lot of end users now diversifying their supply chain.

“Our focus is to provide a very vibrant, strong supply chain connectivity, and make sure that we ride on that,” he said.

According to the Malaysian Investment Development Authority’s report on February 18, Malaysia holds 13 per cent of the global market for chip packaging, assembly and testing services.

Malaysia is also increasing its efforts to attract new businesses and to make itself a strong player in the field.

“At the end of the day,” the minister added, it’s “about economies of scale.”

News agency Bernama reported last week that Malaysia’s vibrant semiconductor industry has been the talk of the town of late as the country emerges as a new semiconductor powerhouse with the global spotlight on Penang.

The World Economic Forum stated on its LinkedIn page that Penang has major industry players from Europe and the United States setting up units or expanding existing operations as they seek to build new global supply chains for these vital components.

Besides the WEF, major media also reported that Penang has in recent years won new chip sector investments from multinationals, including Lam Research, Infineon Technologies, Texas Instruments, Micron Technology, Bosch, Advanced Semiconductor Engineering and Intel.

According to the international media, the investments have reinforced Malaysia’s entrenched position in the late stages of the semiconductor supply chain, particularly chip assembly, testing and packaging, areas in which it holds a 13 per cent share of the global market.

Source: Malay Mail

As Malaysia stakes claim in semiconductor industry, Putrajaya says not worried over competition with US, China


Content Type:

Duration:

Nine in 10 investments in Penang announced by the Malaysian Investment Development Authority (Mida) have been realised within a few years, said Penang Chief Minister Chow Kon Yeow.

He said the realisation rate of investments in Penang is high at between 85 per cent and 90 per cent.

“I would say that investments that were announced in Penang are realised 90 per cent of the time, such as this facility by LEM Malaysia, the groundbreaking ceremony was held two years ago and today, it is the opening of the plant,” he said at the official opening of LEM Malaysia’s first facility in Malaysia at Penang Science Park here.

Chow said the strong supply chain in Penang will benefit investors and new multinational companies (MNCs) setting up here.

“The presence of MNCs such as LEM will also enhance the local supply chain,” he said.

He said the manufacturing sector in Penang is the largest contributor to the state’s economic growth.

The state recorded RM63.4 billion in approved manufacturing investments last year, topping the list nationwide.

He said the state’s electronics and electrical products sector also remained the top in the state, with RM54.7 billion in approved manufacturing investments last year.

“To solidify Penang’s position as a hub for advanced manufacturing, the state government has placed a special emphasis on attracting companies with strong commitments to developing cutting-edge technologies and sustainable investing,” he said.

He said Penang will remain committed to sustaining the manufacturing ecosystem in the state to support the needs of industrial players in next-generation technologies.

Source: Malay Mail

Majority of investments announced in Penang realised, says Kon Yeow


Content Type:

Duration:

FE Green Pet (M) Sdn Bhd’s new high-tech recycling factory is expected to make Melaka a green investment destination and complement the economic growth strategy in the state, said Melaka Chief Minister Datuk Seri Ab Rauf Yusoh.

He said with an investment totalling approximately RM958 million, the plant on 14 hectares of land is projected to be completed by 2Q 2025, creating almost 500 jobs.

“This project is important because it will not only help pilot the state’s economic growth but also align our national objective of achieving a 45% reduction in carbon emission by 2030.

“At present Malaysia’s collect for recycling rate for polyethylene terephthalate stands between 28% and 45%, below global standards,” he told the press after officiating the groundbreaking ceremony of the factory at HICOM Pegoh Industrial Park here, on Thursday.

FE Green Pet is a subsidiary of Taiwan’s Far Eastern Group, a global leader in the polyester sector.

The plant will contribute to waste reduction, transforming waste into value-added products for numerous industries, namely beverages, apparel and accessories, for some of its globally known clients such as Coca-Cola, Pepsi, F&N, Nike, Adidas, and Lululemon.

Ab Rauf also said as the demand for green products is expected to rise, the state government will not only acknowledge both the challenges and opportunities that lie ahead but also encourage green investment in Melaka, especially investors interested in harnessing green energies from various sources.

“To maintain growth and welcome green investors to Melaka, we have, through the Malaysian Investment Development Authority (MIDA) and Invest Melaka, put serious efforts in making the process simpler and shorter and also provide a conducive environment for industries,” he said.

Meanwhile, FE Green Pet’s chairman Donald Fan said the establishment of the factory not only complements the company’s development strategy but also represents a firm commitment to environmental protection.

“Equipped with advanced technology, this factory will transform the discarded plastic bottles into high-value products, promoting resource circularity and contributing to the local economy,” he said.

Source: Bernama

RM958 mil high-tech recycling factory puts Melaka on green investors map — Ab Rauf


Content Type:

Duration:

wpChatIcon