The demand for medical and surgical rubber gloves picked up last month despite the prevailing oversupply situation which is expected to be in equilibrium by 2025.

Malaysia Rubber Glove Association’s former president Denis Low Jau Foo told Bernama recently that the uptick in demand was due to customers replenishing their stock.

“There was aggressive buying during the Covid-19 pandemic, those stocks are facing expiry. Medical gloves have a shelf life,” Low said.

It is this replenishment factor that is pushing up demand, Low said.

With demand on an uptrend, prices are also set to rise.

“We are seeing a significant increase in latex price by as much as 28.7%. This means a higher cost for glove manufacturers and this will be passed on to the buyers,” Low said.

Rubber glove manufacturers are the biggest users of bulk latex, consuming close to 460,000 tonnes per annum, he said.

Weather conditions such as El Nino and La Nina are also instrumental in the price rise and rubber price volatility. Stability is possible from June onwards, Low said.

While the uptick in demand is good news for the sector, many glove makers have “switched off production” because of the oversupply situation a few years ago.

“The glove industry is now running at 50% capacity. It is easy to switch off production. To restart it needs collaborative action by all players.

“The government also has to ensure workers’ return, materials and logistics. All these factors need to work in tandem,” Low said.

Malaysia produced up to 230 billion pieces of gloves at the height of the pandemic and prices soared to crazy levels, Low said.

Between 2020 and early 2022, prices reached US$120 to US$140 per 1,000 pieces versus US$18 and US$20 (RM85 and RM95) per 1,000 pieces today.

“The lowest was US$14 for 1,000 pieces earlier this year in China,” he said, adding that the situation in the sector will be more stable in a few months.

Low’s views are in line with RHB Investment Bank’s outlook on the sector.

The research house said sales are expected to pick up by the second half of 2024 given more balanced demand-supply dynamics, leading to improved profitability.

RHB Investment Bank is overweight on the sector. It sees the industry’s “excess capacity gradually phasing out”.

It should achieve demand-supply equilibrium by the end of 2024/2025, it said.

It also expects price competition from Chinese peers to gradually subside, due to rising quality concerns with “higher rejection rates from the US, and as Chinese players’ pivot towards sustainability”.

Kenanga Research reiterates that the current challenging and competitive landscape will persist throughout 2024. While some players have returned to the black, the tepid profitability does not support lofty valuations, it said.

“The industry will continue to face massive oversupply, predatory pricing by certain overseas players, weak demand and high cost of inputs such as nitrile butadiene rubber and latex. Nitrile butadiene rubber prices have moved up since the fourth quarter of 2023,” the research house said.

On a slightly brighter note, it said further decommissioning of older production facilities locally should help to ease supply pressure.

As for the price of latex, Kenanga expects the price to rise due to low production during the “wintering months between December and May”.

Year-to-date, prices have risen by 8% with buyers walking away whenever there is an attempt to raise prices, Kenanga said.

“Chinese manufacturers are still selling at US$16−US$18 per 1,000 pieces, which means any attempt by Malaysian producers to raise prices is likely to result in losing market share,” Kenanga said.

Source: Bernama

Demand, prices for medical, surgical rubber gloves rising: Expert

Elridge Energy Holdings Bhd, which manufactures biomass fuel products, filed for an initial public offering on Bursa Malaysia’s ACE Market to raise funds for its expansion, including the construction of a new factory.

The IPO involves a public issue of 350 million new shares and an offer for sale of 350 million existing shares, according to a draft prospectus filed with Bursa Malaysia. All in all, the listing offers investors up to a 35% stake in the company at a price to be determined later.

“We intend to expand our production capacity in order to cater for orders from other new and existing customers,” Elridge said. The company currently operates out of a Port Klang factory, which has a capacity of 720,000 tonnes per year, but has hit utilisation rate of nearly 74% by end-2023, it noted.

The company plans to acquire a yet-to-be-identified land in Kuantan Pahang to build a 105,000-square-feet factory that will raise production capacity by 240,000 tonnes. The company has also earmarked proceeds from the IPO to buy equipment for its new factories in Kuantan as well as in Johor and Sabah.

The rest of the proceeds from the IPO will be used as working capital and to defray listing expenses.

Elridge, partly backed by listed electrical distribution equipment firm Mikro MSC Bhd, mainly manufactures and trades biomass fuel products, particularly palm kernel shell and wood pellets, used to generate heat or electricity.

Biomass products are typically a by-product or waste from renewable sources such as plants or organic waste.

Elridge’s net profit more than tripled to RM23.57 million on revenue of RM335.25 million in the financial year ended Dec 31, 2023, the prospectus showed. Gross profit margin was 13.71% while profit-before-tax margin was 8.4%.

The public issue would comprise 80 million shares for the public, 20 million shares for eligible persons, and 250 million shares through private placement to select investors. The offer-for-sale tranche meanwhile will also be done through private placement to select investors.

Proceeds from the sale of existing shares would go entirely to the selling shareholders, including chief executive Yeo Hock Cheong and a group of foreign investors. 

KAF Investment Bank is the principal adviser, sponsor, underwriter and placement agent for the IPO.

Source: The Edge Malaysia

Elridge Energy files for ACE Market IPO to raise funds for new factory

Nextgreen Global Bhd (Nextgreen), a pulp and paper manufacturer, along with IOI Corporation Bhd’s indirect unit, IOI Paper Pulp Sdn Bhd, have signed a shareholders’ agreement to establish Malaysia’s first large-scale zero-waste paper pulp plant.

The plant will be developed within Nextgreen’s 410-acre Green Technology Park in Pekan, Pahang.

Under the agreement, a new private limited company named Nextgreen IOI Pulp Sdn Bhd (NIP) will be formed, with Nextgreen holding a 55 per cent stake and IOI holding the remaining 45 per cent. NIP will operate a paper pulp production facility, initially capable of producing 100,000 metric tonnes per annum of chemical bleached pulp made from oil palm empty fruit bunches (EFB) using Nextgreen’s patented preconditioning refiner chemical-recycle bleached mechanised pulp (PRC-RBMP) technology.

This development phase is expected to take 18 to 24 months and cost approximately RM600 million.

The collaboration aims to transform agricultural waste like EFB into green and sustainable products such as woodfree paper, tissue paper, premium packaging paper, and pulp molded packaging.

Nextgreen managing director Datuk Lim Thiam Huat said the company will contribute its technical knowledge and the rights to use its patented PRC-RBMP technology.

“By adopting the waste-to-value concept, this bio-integrated zero waste process ensures that by-products from every part of the pulp production process is fully utilised through conversion into green products and renewable energy in a closed-loop system.

“This collaborative venture unifies our proactive ESG measures, contributing actively to the nation’s efforts to achieve the United Nations Sustainable Development Goals,” he said in a statement today.

IOI Group managing director and chief executive Datuk Lee Yeow Chor emphasised the significance of utilising palm-based biomass for value-added applications within the circular economy.

He said that alongside the palm wood venture, which utilises oil palm trunks, this joint venture will play a pivotal role in helping IOI Group make significant strides towards achieving its group-wide Net Zero emissions target.

Source: NST

Nextgreen and IOI Paper to set up Malaysia’s first large-scale zero-waste paper pulp plant

Malaysia, a major exporter of agricultural and mining commodities, experienced a significant decline in these exports in 2023.

But economists pointed out that the decline was offset by a surge in exports of manufactured goods. 

This reflects a fundamental shift in Malaysia’s export dynamics, highlighting a progress towards higher value-added industries.

They said the lower export of agricultural and mining commodities mirrors broader shifts in global demand, structural transformations within Malaysia’s economy and mounting environmental pressures affecting key commodities like palm oil.

Sunway University economics professor Dr Yeah Kim Leng said primary agricultural and mining exports accounted for RM192.1 billion or 12 per cent of total exports in 2022.

He said it declined 19 per cent to RM156.1 billion or 11 per cent of total exports in 2023.

“It has been declining steadily, in line with the country’s structural transformation from an agricultural and mining-based economy to a manufacturing-led one since the early 1970s. 

“The current export share remained sizeable at 12 per cent in January and 13 per cent in February.

“The sharp 19 per cent decline in Malaysia’s commodity exports in 2023 typifies the volatility of the global primary commodity sector.” 

According to Yeah, Malaysia’s top primary commodity exports in 2023 were liquefied natural gas or LNG (RM59.6 billion or 4.2 per cent of total exports), palm oil (RM59.4 billion or 4.2 per cent) and crude oil (RM28.7 billion or 2.0 per cent).

These three commodities accounted for 95 per cent of Malaysia’s total primary commodity exports in 2023. 

Yeah said fossil fuels not only face depletion but a steady decline in usage as the economy shifts to renewables and green energy such as solar, wind and hydropower. 

He said LNG is less polluting than coal and crude oil. 

Yeah suggested that investments in new gas fields would have less risk of becoming stranded assets compared to crude oil and coal mining.

In line with the National Energy Transition Roadmap, he said opportunities abound for expanding renewable energy supplies as well as exports to neighbouring countries, especially Singapore.

“Palm oil and its derivatives will continue to be the country’s top exports, although its expansion will be limited by the availability of suitable agricultural land and sustainability concerns over deforestation. 

“Consequently, the growth strategy should focus on increasing yields and productivity under more intensive cultivation to sustain palm oil production and exports.” 

Economic analyst Dr Zulkufli Zakaria said palm oil is the largest agricultural export commodity, contributing more than US$17 billion, followed by rubber with more than US$1.3 billion.

“In ensuring the growth of these commodities, there should be a multi-stakeholder approach involving the government, industries and community. 

“Technology and robotics must be adopted to capture the interest of future generations.”

Tradeview Capital Sdn Bhd vice-president Tan Cheng Wen said the commodities driving Malaysia’s trade and exports are oil and gas (O&G), followed by palm oil-related products. 

Tan opined that a key headwind is the rising rhetoric regarding the environmental, social and governance agenda which may impact demand growth over the long term. 

“Hence, it is essential that the government and the industries work together to improve industry practices.

Primary commodities a decade ago

According to Yeah, Malaysia was heavily reliant on exports of primary commodities such as palm oil, rubber, timber and natural gas a decade ago.

He said recent data indicated a decline in the production and share of these commodities in the export market. 

“Factors such as uneconomical size, low yields, high production costs and labour shortages contributed to this concentration on a few commodities, resulting in their declining significance in total exports,” he noted.

Zulkufli also highlighted the historical prominence of tin, timber and fish. 

However, he underscored the unsustainable practices and lack of commodity growth management, which led to a decline in production for timber and fish exports. 

This paved the way for a reconfiguration of Malaysia’s export portfolio, with a focus on more sustainable and resilient commodities.

Contrary to expectations of diversification, Tan observed that the composition of primary commodities in Malaysia’s exports remained largely unchanged over the years.

“This decline has been offset by the remarkable growth in manufactured goods exports, which accounted for 85 per cent of the total exports in 2023, a substantial increase from 67 per cent in 2013. 

“This surge in manufactured goods exports signals a fundamental shift in Malaysia’s export dynamics, highlighting the nation’s progress towards higher value-added industries and economic resilience,” he said.

As Malaysia navigates the complexities of global trade dynamics, the economists stressed the evolution from primary commodities to manufactured goods, underscoring the importance of strategic diversification and sustainable growth practices. 

They said embracing innovation, enhancing productivity and fostering a conducive business environment will be pivotal in shaping Malaysia’s export trajectory in the years to come.

Sectoral headwinds

On challenges in the commodity sector, Yeah said the main threat to the O&G industry is the shift to renewable energy. 

He said governments around the world are committing to net zero emission targets to combat global warming and climate change.

“The export-oriented palm oil sector faces stiff competition from other palm and vegetable oil-producing countries.

Yeah said the commodity sector has weathered numerous cycles in the past. 

He added that the ability of industry players to cope with demand and price volatilities will determine their survival and the pace of industry consolidation. 

Meanwhile, Zulkufli said there are multiple challenges potentially affecting Malaysia, one of which is the shortage of domestic labour due to the low wages.

The limited adoption of technology in enhancing output is another challenge. 

Consequently, he said there is low productivity due to human limitations compared to mechanical output. 

This situation leads to lower yields and lower quality in the production of goods.

Additionally, Zulkufli said fluctuating prices have historically been a factor, when capitalism and competition were adopted as part of the business model.

“However, Malaysia can mitigate this by improving production through technological advancements and diversifying the end products of commodities, moving away from solely exporting raw materials. 

“This would reduce the vulnerability to commodity price fluctuations.” 

Regarding foreign exchange risk, Zulkufli said there are two perspectives to consider. 

He said while a weak ringgit may seem advantageous, it is not without drawbacks. 

He added that the continuous decline in the ringgit makes Malaysia less competitive, as it affects various factors such as logistics costs, production costs, insurance and equipment maintenance.

“Equipment requires regular servicing and repairs, and costs escalate as the ringgit weakens. 

“Many other hidden costs exist but are not mentioned, impacting the overall sales profit margin of commodities,” he said.

Tan emphasised that price fluctuation is a significant challenge.

He noted that Malaysia also faces challenges such as the lack of cheap labour for the agricultural sector and depleting oil reserves for the mining sector.

CPO price forecast to remain firm in 2024

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the price outlook for crude palm oil (CPO) should be in the range of RM3,800 to RM3,900 per tonne by the end of 2024.

Nevertheless, he said ageing trees, the need for replanting, higher fertiliser costs and labour supply are expected to impact CPO price in the long term.

“My sense is that the price should be fairly stable, although from now until October, the production cycle is expected to increase, which may affect prices due to higher supply. 

“Having said that, there is great potential in the palm oil sector regarding the renewable energy space. 

“Areas such as waste-to-energy and sustainable aviation fuel would mean the greater use of palm oil.” 

Kenanga Research has maintained its average CPO price assumption of RM3,800 per tonne in 2024. 

In a recent note, the research firm said the price is usually firmer in first quarter and weakest in third quarter, mainly due to the third quarter harvests of four major oil crops (palm, soyabean, rapeseed and sunflower)  which make up 70 per cent to 80 per cent of the world’s edible oil production.

FSMOne Malaysia believes that CPO price will stay elevated throughout this year, supported by the El Nino weather, seasonal effects-driven factors and pricing convergence against soyabean oil. 

Besides, it said the extension of low import duties on edible oils in India until March 2025 could provide support for the CPO price in 2024. 

“This could drive the earnings of plantation players in 2024 while the uptrend in CPO price might buoy investors’ excitement in this sector as well. 

“Our forecast for CPO price in 2024 is RM 3,800 to RM4,000 per tonne,” the investment firm said in a report.

The Malaysian Palm Oil Board (MPOB) anticipates a positive trajectory for the country’s palm oil industry in 2024 on the back of better labour supply and stronger price projections.

It forecasts the price of CPO to range between RM3,900 and RM4,200 per tonne. This is driven by the implementation of the B35 biodiesel mandate in Indonesia, which is likely to reduce the global palm oil supply for export. 

MPOB said the mandate could lead to a tightening of the global palm oil supply due to unfavourable weather conditions in 2023 and ongoing tightness in soyabean production until at least this month. Consequently, the country’s palm oil stocks are expected to remain below two million tonnes, helping to stabilise the price.

Source: NST

Economists say decline in export of agricultural and mining commodities shows shift towards high value-added industries

The government has, through the Investment and Trade Action Coordination Committee (JTPPP) meeting today, discussed the proposed revision of the Industrial Coordination Act 1975.

Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz said the Act had never been revised since 1976. The Industrial Coordination Act of 1975 was introduced with the aim of maintaining orderly development and growth in the country’s manufacturing sector.

This Act requires manufacturing companies with shareholder funds amounting to RM2.5 million and above or that employ 75 or more full-time workers to apply for a manufacturing licence from the Malaysian Investment Development Authority (MIDA), an agency under MITI.

“Since I have been at MITI, one of our focuses has been the immediate implementation of investment projects involving industry as well as export commitments,“ he said through a posting on X today.

The sixth JTPPP meeting today also discussed the Kerian Integrated Green Industrial Park.

He said coordination across various ministries including the Ministry of Finance (MoF), the Ministry of Economy as well as other relevant ministries and agencies is important because each project involves different approvals based on the source and jurisdiction of certain ministries, and the type of investment or project.

“For example, matters related to tax incentives are under the jurisdiction of MoF, not MITI. The important thing is that we all work together as a whole-of-government to make sure all bases are covered and we leave no stones unturned.

“Alhamdulillah, ‘good traction’ on JTPPP so far and various projects are already running smoothly,“ said Tengku Zafrul.

JTPPP was established in October 2023.

Source: Bernama

Govt mulling proposal to review Industrial Coordination Act 1975 – Tengku Zafrul

The Investment, Trade and Industry Ministry (Miti), through its agencies, is working with the Entrepreneur and Cooperatives Development Ministry (Kuskop) to address the issue of Bumiputera companies’ low participation in the manufacturing sector.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said among the main challenges is the lack of access to financing facilities for Bumiputera companies as well as small and medium enterprises (SME).“Therefore, in the New Industrial Master Plan (NIMP) 2030, an allocation was provided to Miti to strengthen local companies. The Budget 2024 announcement earmarked a fund of RM200 million to implement NIMP 2030.“In terms of access to financing, the government gives local banks the opportunity to be more proactive in helping SMEs, which represent the country’s largest group of employees and employers,” he said during the question-and-answer session in the Dewan Negara today.He was replying to a supplementary question from Senator Datuk Husain Awang who wanted to know the government’s initiatives to expose Bumiputera startup companies to alternative sources of financing such as equity crowdfunding.Tengku Zafrul said limited access to financing is not the only major issue; another is capacity building.“We have to share our experience and knowledge, and this is being carried out through SME Corporation and other related agencies,” he said.The third challenge is to ensure market access to their products, the minister said, adding that the Malaysia External Trade Development Corporation is also playing its role to ensure the companies can compete at the global level.

Source: Bernama

MITI, Kuskop working to boost Bumiputera participation in manufacturing sector

Semiconductor exports this year will be “better” than the RM575 billion sales in 2023, thanks largely to the relocation and investments in Malaysia by renowned global companies.

Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai said 20 per cent of exports are shipped to the United States (US) — easily making Malaysia its largest supplier.

Rated sixth in the world for semiconductor exports, Malaysia reportedly has 7.0 per cent of the global market share.

The local semiconductor sector showed its tenacity last year when exports dropped only 3.0 per cent from RM595 billion in 2022 when global industry sales dipped 8.2 per cent.

“For Malaysia to maintain this position, it needs to ship RM1.2 trillion worth of exports by 2030 — which is nearly double (from RM575 billion in 2023) as everybody is building wafer fabrication plants globally,“ he said.

A wafer in electronics is a thin slice of semiconductor while wafer fabrication involves repeated sequential processes to produce complete electrical or photonic circuits on semiconductor wafers.

There is no denying that Malaysia faces competition, nevertheless, Wong said.

Vietnam, Thailand, the Philippines, and India are also cashing in on the relocation, taking advantage of the US-China trade tensions by getting into the chip business.

But Wong said Malaysia has stood out well due to the big names that have invested here.

Intel has made known its intention to invest to the tune of US$7 billion (US$1=RM4.7), AT&S 1.7 billion euros (1 euro=RM5.09), and Infineon 5 billion euros.

This excludes companies with smaller investments of between RM1 billion and RM2 billion each, he said.

Austrian semiconductor firm AT&S opened its plant in Kulim, Kedah in January 2024 producing integrated circuit (IC) substrates for next-generation microchips.

Intel has announced two fabrication plants in Ohio, two in Arizona, and another in Germany. Taiwan Semiconductor Manufacturing Co (TSMC) has also announced its plans for a fabrication plant in Arizona, its second one there and it inaugurated its first plant in Japan this year.

Wong said Samsung and Chinese companies also announced plans to build mid- and high-end fabs.

Semiconductor companies are increasing their capacities in anticipation of growth as “everybody is trying to capture a piece of the pie,” Wong said.

The US, European Union, South Korea, Japan, and China are putting money behind it to position themselves to capitalise on this growth, he said.

Source: Bernama

2024 exports to be better than last year: Malaysia Semiconductor Association

Malaysia is emerging as a hotspot for semiconductor factories, as US-China tensions prompt companies to diversify operations.

In a report on Wednesday, CNBC quoted Kenddrick Chan, the head of the digital international relations project at LSE IDEAS, the foreign policy think tank of the London School of Economics and Political Science, as saying that Malaysia has well established infrastructure, with around five decades of experience in the ‘back end’ of the semiconductor manufacturing process, particularly in assembly, testing and packaging.

Semiconductors — critical components found in everything from smartphones to automobiles — have been at the centre of a US-China technology war.

American chip giant Intel said in December 2021it will invest more than US$7 billion (RM33.18 billion) to build a chip packaging and testing factory in Malaysia, with production expected to begin in 2024.

“Our decision to invest in Malaysia is rooted in its diverse talent pool, well established infrastructure, and robust supply chain,” Aik Kean Chong, Intel Malaysia’s managing director, told CNBC.

Intel’s first overseas production facility was an assembly site in Penang launched in 1972 with a US$1.6 million investment. The company went on to add a full test facility, as well as a development and design centre in Malaysia.

Another US chip giant, GlobalFoundries, in September opened a hub in Penang to “support global manufacturing operations”, alongside its plants in Singapore, the US and Europe.

“The forward-thinking policies and strong support from the regional government, together with partners like InvestPenang, have built a strong ecosystem for the industry to thrive,” said Tan Yew Kong, a senior vice-president and general manager of GlobalFoundries Singapore.

Germany’s top chipmaker Infineon in July 2022 said it will build a third wafer fabrication module in Kulim, while Neways, a key supplier to Dutch chip equipment maker ASML, said last month it will construct a new production facility in Klang.

“Malaysia’s edge has always been its skilled labour in packaging, assembly and testing, and lower comparative operating costs, making exports more competitive globally,” said Yinglan Tan, a founding managing partner of Insignia Ventures Partners. He added that the ringgit’s current position makes the country an “attractive location for foreign players”.

Malaysia holds 13% of the global market for chip packaging, assembly and testing services, said the Malaysian Investment Development Authority in a Feb 18 report. Exports of semiconductor devices and integrated circuits increased by 0.03% to US$81.4 billion in 2023, amid global chip demand weakness.

Meanwhile, Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai said many Chinese firms had diversified their production to Malaysia, calling the country China’s “plus one”.

Source: The Edge Malaysia

CNBC: Malaysia a hotspot for semiconductor firms

NCT Group of Companies (NCT Group) today launched the sales gallery of NCT Smart Industrial Park (NSIP), the country’s first managed industrial park.

Its founder and group managing director Datuk Seri Yap Ngan Choy said with today’s unveiling of the sales gallery, the company is providing potential investors with a preview of what the future holds in NSIP.

NSIP is raising the sustainability bar with its goal to become the first net-zero emissions industrial park by 2050 by leveraging artificial intelligence (AI) technologies and a low-carbon industrial framework.

With a gross development value of RM10 billion, the project is taking root within Selangor State’s Integrated Development Region in South Selangor (IDRISS) initiative where NSIP will be introducing clean electrification and other climate-friendly alternative energy sources combined with cutting-edge infrastructure.

Yap highlighted that NSIP is poised to revolutionise the industrial ecosystem in Selangor and Malaysia.

He said the company is redefining industrial standards by setting a new benchmark for excellence in the sector as a net zero park.

“This substantial development will also showcase Selangor’s unwavering commitment to driving the industrial revolution. “We take great pride in being located in IDRISS and plan to work hand-in-hand to elevate the state’s stature as an economic powerhouse, while supporting the nation’s broader goals of climate-friendly growth and attracting solid foreign direct investment.

“It is a testament to our collective determination to forge a better, more sustainable future for all,” he added.

Among the electrification technologies to be spearheaded at the park are rooftop solar photovoltaic (P) installations to power operations by optimising energy systems for maximum efficiency and enhanced mobility.

To support its digitalised industrial and energy system management, NSIP will introduce a digital twin technology deployed on a cloud-based Al loT platform.

With its advanced technology and seamless integration of Environmental, Social and Governance (ESG) principles, the park is the embodiment of the Al-Low Carbon Industrial Park concept.

Other key features of the park include an Al-Managed Centralised Labour Quarter (CLQ), with high-quality accommodation for up to 30,000 workers, rainwater harvesting systems and a ground-breaking 100-year flood mitigation plan.

In addition to its dedication to sustainability and digitalisation, NCT said NSIP will serve as the nucleus and comprehensive one-stop centre.

It said the park will offer a diverse array of services from key entities such as Invest Selangor, MIDA, Human Resource Development Corporation (HRD Corp), Perkeso and Kuala Langat Council, to facilitate the swift establishment of businesses and smooth operations.

NCT also stated it is on track for SIP’s potential inclusion in the prestigious Global Lighthouse Network (GLN) recognised by the World Economic Forum.

Source: NST

NCT Group launches sales gallery of country’s first managed industrial park

Mamee-Double Decker Sdn Bhd will invest as much as RM150 million in a new production facility, using the latest generation of automatic production technology to support its business growth.

Chief executive officer Pierre Pang said with the additional capacity, Mamee can double its business achievements again in the next five years, noting that the company had taken 48 years to record an income of RM780 million. However, in the past five years, Mamee has managed to double this figure thanks to the rapid growth of its export business to more than 80 countries around the world, especially the United States and Europe.

“We have been handling delivery of nearly 300 containers every month from our factories in Malaysia.

“We predict that with the strong support from the Ministry of Investment, Trade and Industry (MITI), the Malaysian External Trade Development Corporation (MATRADE) and the Malaysian Investment Development Board (MIDA), we can double this amount in the next two or three years,” he said at the Ihya Ramadan programme and the breaking of fast with orphans on Monday.

Pang said with the support given, Mamee managed to build strong partnerships with global companies around the world such as The Lotus Biscoff Group based in Belgium, Shinsegae Foods based in South Korea and also business ownership partnerships such as The Good Crisps Company in the United States and The Golden Duck, Singapore.

He said the strong partnerships have allowed Mamee to expand its halal snacks to the world “and further make our company one of the largest snack companies in the world, or at least the largest company in the halal snack segment.”

“We cannot thank MITI, MATRADE and MIDA enough for their contributions in making Mamee a fast-growing and innovative global snack company that champions halal food made in Malaysia,” he added.

He noted that MITI plays a major role in determining the country’s business policy and planning, encouraging and supporting the growth of local businesses such as Mamee to expand to overseas markets.

In addition, MATRADE also plays an important role in promoting and expanding the export market of local Malaysian companies, especially Mamee, at the international level as well as MIDA’s role in ensuring smooth operations and empowering Mamee’s business.

Meanwhile, the director of Mamee affairs and government relations, Ahmad Syukry Ibrahim, said Mamee organised the Ihya Ramadan programme and breaking of fast ceremony in collaboration with MITI to support and donate to the 100 orphans who attended. “This programme proves that the company cooperates with government agencies and also the community to donate something to the needy,” he said.

Mamee has also launched the ‘Junior Monstar Scholarship’ initiative for company employees whose children have the potential to develop their talents to a higher level. 

Source: Bernama

Mamee to invest RM150mil for latest production technology in expansion drive

The government will continue to facilitate the furniture industry’s development in terms of raw materials, productivity and design aspects through various initiatives and programmes, said Deputy Plantation and Commodities Minister Datuk Chan Foong Hin.

Likewise, the furniture industry should continue to work closely with the ministry and its agencies such as the Malaysian Timber Industry Board (MTIB), Malaysian Timber Council (MTC), and Malaysian Timber Certification Council (MTCC), for the betterment of the industry and its exports, he said.

“I urge all industry players to continue working closely with the stakeholders throughout the supply chain and broaden the network to explore new (strategic) possibilities,” he said at the opening ceremony of the Export Furniture Exhibition (EFE) 2024 here today.

He added that such efforts would bring positive outcomes and lead to a better performance of the furniture industry in the future.

Besides, he also reckoned the furniture industry has been playing a prominent role in the timber sector.

“For 2023, the timber sector has exported RM21.85 billion worth of timber and timber products.

“Wooden furniture contributes RM9.1 billion of export value, (contributing) 44.11 per cent of the annual timber and timber product export,” he said, adding that timber has traditionally been the third largest commodity sector after palm oil and rubber.

According to Chan, timber is one of the eight commodities identified under the National Agricommodity Policy 2021-2030 (DAKN 2030) to be transformed in a more sustainable, competitive and market-oriented manner.

“It is to ensure they remain strong growth drivers of Malaysia’s economic growth. We target the export value of timber and timber products at RM28 billion by 2025 and RM32.8 billion by 2030,” he said.

Meanwhile, Malaysian Furniture Council president Desmond Tan said the council is hoping that the government would create a raw material hub for the furniture industry to ensure industry players can obtain their raw materials conveniently and affordably.

“This will assist in keeping the cost of the production as low as possible and preserve our competitiveness in the global market,” he added.

More than 400 exhibitors are participating in EFE 2024, which runs from March 4 till March 7.

Source: Bernama

Govt to continue facilitating furniture industry’s development