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Malaysia and Chile can boost bilateral ties by tapping into new sectors such as renewable energy, tourism, and education while maintaining a positive momentum in the existing areas.

Natalia Arcos, international director of the Chilean government’s export promotion agency ProChile, said that collaborations in solar and wind energy projects, technology sharing, and the promotion of sustainable policies in the renewable energy sector could significantly benefit both nations.

“In tourism, the countries could develop integrated packages and promote joint tourist destinations. In education, they could facilitate student exchanges and establish joint research programmes, strengthening academic ties,” she told Bernama.

Arcos said that these areas of collaboration would not only broaden the scope of bilateral relations but also promote mutual and sustainable development between the two countries.

Halal certification is vital for Malaysia-Chile trade, given Malaysia’s large Muslim consumer base.

According to Arcos, sectors such as halal-certified food products will likely continue driving trade between the two countries.

Chilean exporters who meet these standards stand to benefit, but maintaining and expanding Chilean product presence in Malaysia requires top-notch quality and adaptability to local preferences.

Arcos emphasised that Malaysia and Chile need to explore new opportunities in emerging industries such as technology and innovation to strengthen their economic ties.

“Collaboration in research and development, as well as knowledge sharing in cutting-edge areas, could boost the competitiveness and capacity of both countries to meet the economic and technological challenges of the future.

“In addition, strengthening ties in sectors such as health, biotechnology, and the digital economy could open new prospects for bilateral cooperation and sustainable economic growth,” she noted.

Arcos said Chile is seeking to diversify its export basket and looking at new opportunities for Chilean exporters. The South American country is currently exporting more than 4,000 goods and services to about 190 destinations worldwide.

She said exports play a vital role in Chile’s economy, serving as a key driver of employment and economic growth.

“Exports are important for Chile, both for employment and economic growth.

“Exports currently contribute 36 per cent of the country’s gross domestic product, involving more than 7,700 companies, of which 35 per cent are small and medium enterprises, and generating more than 1.1 million jobs,” she added.

ProChile is an agency under Chile’s Ministry of Foreign Affairs.

Source: Bernama

Chile keen to boost ties with Malaysia by exploring new trade sectors

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Independent power producer (IPP) Malakoff Corp Bhd is exploring combined-cycle gas turbine (CCGT) and solar photovoltaic (PV) plants in its Tanjung Bin site in Johor, to cater for electricity exports.

The group, which has 21% of generation capacity in Peninsular Malaysia, is “actively pursuing” a new CCGT project, it said in its 2023 annual report on Tuesday.

Malakoff has seen generation capacity declining in recent years following the expiry of power purchase agreements (PPAs), the latest being a 21-year PPA for the 640-megawatt (MW) GB3 gas-fired plant in Lumut, Perak in 2022.

Export opportunities abound led by Singapore, which is seeking to import up to 1,200MW of electricity by end-2027. Malaysia has expressed intention to participate, and lifted its renewable energy (RE) export ban to Singapore last year, although details of the mechanism have yet to be ironed out.

Malakoff’s effective thermal power generation capacity stood at 5,342MW, with RE capacity of 153MW, its annual report showed.

In Kukup, Johor, where Jalan Tanjung Bin is located, Malakoff owns 90% in the 2,100MW coal-fired Tanjung Bin power plant in Johor, the PPA of which expires in 2031. It also wholly owns the 1,000MW coal-fired Tanjung Bin Energy power plant that is contracted to operate until 2041.

Aside from looking for new CCGT capacity, Malakoff said it will continue to invest in expanding the proportion of its biomass co-fired project with coal.

“Presently, the co-firing rate is at 0.5% with encouraging initial results. From here, we will gradually increase this to 2% and execute progressively to safeguard the integrity of our equipment and machines,” it said.

On lookout for M&A

Aside from bidding for new RE projects, Malakoff said it is considering potential acquisitions in operational greenfield ventures “particularly large scale solar (LSS) projects and exploring opportunities in waste management and environmental solutions”.

This came as it acknowledged that some potential sellers, including LSS players, are hesitant to let go of their assets despite lucrative opportunities for monetisation and current market stability.

The group said it aims to leverage its established partnerships and focus on countries it is familiar with such as Malaysia, Saudi Arabia, Bahrain and Oman.

“By collaborating with local and international partners, these alliances will not only enhance our expertise and facilitate technology transfer but also create investment opportunities in Malaysia,” it said.

“We will take a prudent approach to M&A (merger and acquisition) activities, ensuring a balance between aggressiveness and selectivity. Armed with substantial reserves and a robust war chest, we have positioned ourselves to weather potential downturns, allowing us to acquire assets at favourable rates from sellers,” it said.

Earlier this year, Malakoff managing director and chief executive officer Anwar Syahrin Abdul Ajib told The Edge in an exclusive interview that the group has set aside RM500 million to RM1 billion for M&A.

Last month, Malakoff announced that it incurred a net loss of RM884.36 million for the financial year ended Dec 31, 2023 (FY2023) — the group’s first annual net loss since its listing in 2015 — versus a net profit of RM255.03 million in FY2022. Revenue fell 12.4% to RM9.07 billion from RM10.36 billion a year earlier.

The group also posted a net loss of RM357.1 million for its fourth quarter ended Dec 31, 2023 (4QFY2023) against a net profit of RM41.9 million in 4QFY2022, while revenue fell 23.89% to RM2.26 billion from RM2.97 billion a year earlier.

It attributed the losses to substantial negative fuel margin at its Tanjung Bin Power and Tanjung Bin Energy coal plants, lower contribution from the GB3 gas plant following the expiry of its PPA, as well a substantial share of loss from its 40%-owned Al-Hidd independent water and power producer associate in Bahrain.

At 4pm on Tuesday, shares in Malakoff were one sen or 1.59% higher at 64 sen, valuing the group at RM3.17 billion.

Source: The Edge Malaysia

Malakoff eyes new gas, solar plants in Tanjung Bin for energy exports

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Malaysia’s export of microchips to the United States has hit 26 per cent, positioning it among the top countries in microchip exports.

Prime Minister Datuk Seri Anwar Ibrahim said that Malaysia is the country of choice for many nations looking to issue microchips.

“We are fortunate because of the decision of many countries to make Malaysia a new hub, particularly in the issue of microchips.

“Right now, our exports to meet the demand of the United States have reached 26 per cent, one of the highest from any single country.

“We have major investments in this field, such as those from German chipmaker, Infineon, as well as Nvidia, which is coming with a major programme for artificial intelligence,” he said in his speech at the grand opening of the Cybersecurity Centre of Excellence (CCoE) here today.

On the CCoE, Anwar said it served as a milestone in Malaysia’s journey towards creating a robust cybersecurity ecosystem, necessitating strong partnerships across the public and private sectors.

“We commend Blackberry for helping to upskill our next generation of cyber-defenders, accelerating our goal to bolster national and regional security and innovation.

“We envision this center as a capacity-building hub for the Southeast Asian region, with a specific focus on enhancing threat intelligence sharing, and fostering regional cooperation in mitigating cybersecurity threats and combating cybercrime.

“As the chosen location for the establishment of the CCoE, Malaysia aims to deliver upon our shared goal to establish a globally competitive skills and learning ecosystem in the Indo-Pacific region,” he said.

Anwar added that it is important for the country to forge international partnerships, specifically those harnessing advanced technologies like artificial intelligence and machine learning.

“Through this strategic collaboration, we not only stimulate economic advancement and prosperity but also bolster the resilience of our cybersecurity infrastructure against the risks that pervade the digital landscape, by keeping the nation’s data, conversations, and citizens safe.”

Meanwhile Anwar said the 5G rollout in Malaysia has reached 80.3 per cent coverage as of February in populated areas, while internet coverage has reached 97.07 per cent.

He noted that communications connectivity will continue to catalyse digital transformation, specifically in industry verticals such as manufacturing, health care, warehousing, agriculture, and more, in addition to spurring the growth of data centers and cloud services.

BlackBerry Limited has opened a world-class CCoE that will deliver cybersecurity training and cyber threat intelligence to help Malaysia and partners in the region better prevent, deter, and respond to cyber threats facing governments and organizations in the Indo-Pacific region.

The company also announced its new BlackBerry Cybersecurity Curriculum is now available for the first time through the new facility, offering a wide range of globally recognized course offerings and certifications to help grow a skilled cybersecurity workforce and ecosystem in Malaysia and the region.

The new center will provide Malaysians and others in the region with increased opportunities for professional networking, knowledge-sharing, and common skills training, covering everything from cyber fundamentals to leadership and technical areas.

The CCoE curriculum offers training courses on BlackBerry® cybersecurity products and services to upskill in areas like AI and machine learning, as well as highly-specialized courses delivered by the SANS Institute, Canada’s Rogers Cybersecure Catalyst, and other internationally recognized certification partners.

It also offers select opportunities for scholarships for women cybersecurity professionals, with further plans to augment existing university curricula with CCoE student education programmes.

Source: NST

Malaysia among top countries in microchip exports

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Germany has chosen Malaysia to be its export and trade hub, apart from China, the Dewan Rakyat heard today.

Prime Minister Datuk Seri Anwar Ibrahim said this comes after the trade war between the United States and China, which had impacted the global economy, especially to countries that export to China, including Malaysia.

“Germany’s policy is to de-risk, meaning to reduce risk and not rely on only one country, so they chose other countries (to trade with).

“So, at this moment, Germany has chosen Malaysia as their export and trade hub, apart from China, and this will help us.”

He said this in his reply to a supplementary question from Jimmy Puah Wee Tse (Pakatan Harapan-Tebrau), who had asked about how the trade war would affect Malaysia’s economic growth.

Anwar added that the Investment, Trade and Industries Ministry (Miti) had seen an increase in official visits from foreign trade ministers, including three this week.

He said the Madani government’s clear policies and stable politics made Malaysia an attractive destination for both domestic and foreign investors.

He said the success that the country achieved in attracting investment was a collaborative effort between Miti, the Foreign Ministry and the whole government machinery.

“Malaysia managed to do this because of our stable politics, and clear Madani Economy policies.

“We have a clear industrial plan, an energy transition plan, a digital transformation plan, and a food security programme.

“Secondly, it is because of the speed of approvals. There have been remarks that there is too much bureaucracy, so at the federal-level, only one agency, which is Miti, that will coordinate,” he added.

Source: NST

Malaysia is Germany’s choice as a trade, export hub

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The government is committed to developing the semiconductor industry which is now a strategic source of income for the country, said Deputy Investment, Trade and Industry (MITI) Minister Liew Chin Tong.

In line with the expression, “semiconductor is the new oil”, he said trade and technology competition between China and the United States (US) in the semiconductor industry has benefited Malaysia.

This competition, according to Liew, has led multinational semiconductor companies to make strategic decisions to build a second supply chain and not to focus solely on one country to ensure a secure and resilient supply chain or “derisking”.

He was responding to a question by Datuk Ahmad Amzad Mohamed@Hashim (PN-Kuala Terengganu) who asked about the plans of the ministry in positioning the nation’s Electrical and Electronics (E&E) industry as a major semiconductor production hub to take advantage of the competition between the US and China in the chip war.

“Malaysia should seize the waves of competition between China and the US to provide a policy to create an environment for local companies to excel and generate high income,” Ahmad Amzad said.

Liew noted that many companies have selected Malaysia as a new location for their production facilities and the country has an advantage over other nations with a mature semiconductor industry ecosystem since the 1970s, especially the E&E cluster in Penang and Kulim, Kedah.

“Such investments are expected to continue to position Malaysia as one of the key investment destinations in advancing the global chip industry.

“Malaysia should seize this golden opportunity to expand the country’s semiconductor industry and become a high-value-added semiconductor producer with activities along the value chain, such as Integrated Circuit (IC) design, wafer fabrication, assembly and testing as well as technical marketing,” he said.

Liew emphasised that the government aims to ensure that investments in Malaysia will create value chains that create high-paying skilled jobs.

“We want to create a supply and value chain that encompasses local companies. We aim to create 100 technology companies with an annual revenue of RM1 billion before 2030.

“Currently, we only have nine local technology companies that can generate RM1 billion a year.

Another 10 companies generate between RM100 million and RM1 billion a year,” he said.

Source: Bernama

MITI: Govt committed to develop semiconductor industry as strategic source of income

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The government will continue to focus on training in the fields of Science, Technology, Engineering, and Mathematics (STEM), especially at the highest levels, to boost foreign investments in the country.

Prime Minister Datuk Seri Anwar Ibrahim said Malaysia’s current weakness lies in training in mathematics, science, engineering, artificial intelligence (AI), and Technical and Vocational Education and Training (TVET) at the highest level.

“We can do it if we give full focus and additional allocation (to training in the STEM field),” he said during the Minister’s Question Time in the Dewan Rakyat today.

Anwar was responding to Tebrau MP Jimmy Puah, who asked about the government’s efforts to ensure the RM329.5 billion investment momentum obtained last year continues to increase in the years to come.

Anwar, who is also the Finance Minister, admitted the interest of students in STEM is also declining, which is a matter of great concern.

The Education Ministry and other educational groups have taken various steps to urge parents to encourage their children to engage in STEM education at the secondary level.

“This is being worked on more seriously,” said the Prime Minister.

He added that in all his meetings with foreign companies intent on investing in Malaysia, the emphasis was placed on the importance of these companies having their centre of excellence here in Malaysia to provide skills training to professionals and local students.

“There must be training here because we currently lack engineers. Although good and well-received, the engineers we produced are still considered to be lacking the highest level of skills or efficiency.

“So there is a gap about the required niche. Therefore, this focus on TVET and engineering needs to be given attention…I agree that if Malaysia does not do something immediately, we will be on the losing end.

“This is because the focus now is no longer on the low-end industry but on the high-end industry, which requires higher efficiency than what is available now,” Anwar said.

In that regard, he has asked local universities, starting with Universiti Teknologi Malaysia (UTM), to establish an AI Faculty which should coordinate their activities with all universities that conduct AI to meet some of the needs in the field.

Source: Bernama

Govt continues focus on STEM training to boost foreign investments — PM

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South Korea’s Trade Ministry said Tuesday (March 26) it has agreed with Malaysia to resume bilateral free trade agreement (FTA) talks that have been stalled since 2019.

Trade Minister Cheong In-kyo (pic) and his Malaysian counterpart, Tengku Zafrul Aziz, made the announcement during their meeting in Kuala Lumpur, according to the Ministry of Trade, Industry and Energy, reported Yonhap news agency.

The two countries agreed to seek a bilateral FTA in 2019 but related negotiations have been stalled after holding three rounds of talks that year.

South Korea and Malaysia also agreed to expand the scope of the envisioned FTA to cover new areas, such as service, investment, digital and biotechnology, the ministry added.

Malaysia is the third-largest trade partner for South Korea in South-East Asia.

South Korea already has an FTA with the Association of Southeast Asian Nations (Asean), but the country is seeking to broaden economic ties with individual members through separate free trade deals.

“As the two countries hold a mutually beneficial trade portfolio, the FTA will significantly strengthen South Korea’s ground for trade and investment in the Asean bloc,” the ministry said in a statement.

Source: The Star

S. Korea and Malaysia to resume free trade talks

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Malaysia remains a preferred destination for foreign direct investment (FDI) in the region and has attracted increasing interest from multinational corporations aiming to diversify their footprint strategically, says DHL Express Malaysia and Brunei managing director Julian Neo.

Due to the recent geopolitical developments, omni-sourcing has been a key focus for companies across industries as it strengthens supply chain resiliency, he said.

“Contract manufacturers continue to move into the country and we have observed similar expansion by those already here,” he replied to a Bernama question via email.

Citing news report, Neo said Penang alone has attracted over RM60bil in FDI last year, more than the total received for 2013 to 2020 combined.

He said Malaysia’s key strengths include easy access to key Asian markets, robust consumer demand for international goods and services, institutional support, well-developed infrastructure, sound legal framework, English-speaking and digitally native talent, as well as liberal trade agreements.

“Therefore, it is no surprise that the country is rated among the best for globalisation,” he added.

According to DHL Group’s latest Global Connectedness Report launched on March 13, 2024, Malaysia ranks 26th out of 181 economies, attributable to the growth of its trade flows (imports and exports, across both goods and services) and increases in FDI flows (inward and outward).

Asked if the 6% service tax on logistics services that came into effect on March 1, 2024 would affect the company’s business in the country, Neo shrugged off the concern, saying that the service tax only applies to domestic shipments and excludes international ones, which is the main remit of DHL Express Malaysia.

“Regardless, implementation of the service tax has long been a topic of conversation within the logistics industry and we remain in close dialogue with the relevant authorities.

“At the same time, we have maintained open lines of communication with customers to provide the necessary guidance and support towards a smooth transition,” he added.

Source: The Star

Malaysia still a preferred destination for FDI in the region

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Three mega projects have the capacity to elevate Perak to be among the major states buttressing national economic growth, said Prime Minister Datuk Seri Anwar Ibrahim.

Expressing his confidence, Anwar said that these three projects – the Automotive High Tech Valley (AHTV) in Tanjung Malim, Lumut Maritime Industrial City (Lumic), and the Kerian Integrated Green Industrial Park – would help Malaysia’s economy emerge strongly in Asia.

“Three mega projects in Malaysia are based in Perak. Perak, compared to Johor, Penang, and Selangor, is slightly lagging behind, but with the programmes and emphasis taken by the Saarani team (Perak Menteri Besar Datuk Seri Saarani Mohamad), we believe that in a few years, Perak will emerge as a major state in this country.

“I was informed earlier that there are still about 4,000 people classified as hardcore poor in Perak, but we believe with the determination of the Menteri Besar’s team, Perak will eradicate poverty in no time,” said Anwar.

Also present were Saarani, Minister of Higher Education Datuk Seri Zambry Abdul Kadir, Majlis Amanah Rakyat (MARA) chairman Datuk Seri Asyraf Wajdi Dusuki and 300 KPTM students.

Anwar said that foreign investments in Malaysia demonstrate that the government’s vocal stance on humanitarian issues does not deter investors from continuing to show trust in the Malaysian economy, thus repositioning the country as a great nation in Asia.

“Why? Because of stable infrastructure, clear economic policies, and political stability. The MADANI economic policy, which prioritises the welfare of the people, adds to investor confidence,” said the Prime Minister.

At the same time, he reminded the youth to set aside politics of hatred.

“Enough with rising hatred politics, let us rise together to become good citizens, increase knowledge, master good fields, and make Malaysia a country to be emulated and admired by the world,” he said.

At the same event, Anwar, who is also the Member of Parliament for Tambun, handed over contributions totalling RM291,000 to 34 mosques and 35 surau within the Tambun parliamentary constituency.

The contributions is hoped will assist the mosque and surau committees in implementing planned Ramadan activities.

The Prime Minister then performed the Maghrib prayer in congregation with the guests present.

Source: Bernama

PM identifies three mega projects to propel Perak’s economic growth

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There is a need to be proactive in attracting the right investments to the country, said Deputy Premier Datuk Amar Awang Tengah Ali Hasan.

He pointed out that among the new and promising economic sectors to attract more investments included green hydrogen, Carbon Capture Utilisation and Storage (CCUS), and renewable energy.

“With this, there must be targeted incentives and steadfast policies to facilitate the growth of these industries,” he said during his meeting with Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz in Kuala Lumpur yesterday.

Awang Tengah, who is state International Trade, Industry and Investment Minister, also discussed various matters of common interest with Tengku Zafrul including showcasing Sarawak as the green and renewable energy hub for the region.

Both leaders also agreed to work closely together to attract more investments to Sarawak.

Also present were Awang Tengah’s deputy minister Datuk Dr Malcolm Mussen Lamoh, his ministry’s advisor Dato Sri Naroden Majais and permanent secretary Dulkornain Masron, Regional Corridor Development Authority chief executive officer Datu Ismawi Ismuni, and InvestSarawak chief executive officer Timothy Ong.

Source: Borneo Post

Attracting right investments requires govt to be proactive, says Awg Tengah

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Malaysia has experienced a 25 per cent increase in bilateral trade with Canada since 2018, particularly since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into effect.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the CPTPP has led to a notable uptick in the issuance of Certificates of Origin (CO) by Malaysian businesses for exports to CPTPP partners, including Canada.

“I am pleased to share that Canada is also the second largest export market for trade in services after the US in 2022, valued at RM110 million, with the two largest components being on transport and travel.

“I believe events such as today’s Business Forum could begin or expand collaborative partnerships between our two countries’ businesses and investors, and what better way to do so than through the CPTPP platform and trade missions such as the Team Canada Trade Mission (TCTM),” he said at the launch of the mission here today.

Beyond CPTPP, Tengku Zafrul said Malaysia is also optimistic on additional trade potential via the Asean-Canada Free Trade Agreement (ACaFTA), of which Malaysia is also a party and coordinating country.

Malaysia looks forward to ensuring the success of the ACaFTA when Malaysia takes over Asean’s chairmanship in 2025, he added.

In terms of investments, Tengku Zafrul said Malaysia is proud to host Canadian companies like Celestica and Sun Life which have been thriving here for more than a decade.

As of today, he said a total of 96 manufacturing projects with Canadian participation had been implemented, with total investments worth US$ 274 million.

“The top three sectors for Canadian investments are E&E, basic metal products, and wood and wood products. I am also delighted to share that these projects have generated employment for 11,027 people.

“The TCTM today is a platform to up our game on both trade and investment. We invite Canadian businesses to consider Malaysia as your main trading and investment partner in this region,” he added.

The trade mission seeks to expand and deepen Canada’s existing partnerships in the region.

The strategic objective of the mission is to expand trade, investment and supply chain resilience including through expanding Canada’s trade network at home and abroad, paving the way for long-term growth and prosperity.

Source: NST

Malaysia’s trade with Canada jumps 25pct since 2018: Tengku Zafrul

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Energy-related services provider Reservoir Link Bhd will form a joint venture (JV) company to undertake a 29.99 MWac ground mounted solar photovoltaic (PV) project in Kedah.

The group via its wholly-owned unit Reservoir Link Renewable Sdn Bhd (RLR) had on March 20 inked a shareholders’ agreement with Japan-based Sumitomo Corporation (SC), MAQO Engineering Sdn Bhd (MESB) and SRM Utama Selambau Sdn Bhd (SUS) to undertake the project, according to Reservoir Link’s bourse filing.

SC will hold 49% equity interest in the JV company, with RLR holding 29% and MESB the remaining 22% stake.

SC is a Fortune 500 global trading and business investment company with presence in 108 locations abroad and 20 locations in Japan. The company conducts commodity transactions in all industries utilising worldwide networks, provides related customers with various financing, and serves as an organiser and a coordinator for various projects.

MESB is a solar power company and solar panel installer in Malaysia that provides clean energy to residential home owners to full-scale commercial and industrial solar energy systems and solar farm projects.

At Monday’s noon break, shares of Reservoir Link stood at 31.5 sen, giving it a market value of RM98.24 million.

Source: The Edge Malaysia

Reservoir Link to form JV company to undertake solar PV project in Kedah

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The investments entering Penang have yet to exacerbate the labour shortage situation due to the poor global demand.

As the global demand levelled off, the pressure on local companies to engage more workers to ramp production has reduced, according to The Free Industrial Zone, Penang, Companies’ Association president David Lacey.

“However, the manufacturing industry is subjected to cyclical swings, especially the electrical and electronics (E&E) sector, which is volatile.

“The authorities, the federal and the state governments should seize opportunities during this lull to address the labour shortage problem lest the situation returns to normalcy, and labour supply becomes a bigger issue again,” Lacey told StarBiz recently.

He noted that the manufacturing sector provided attractive salaries, bonuses, and compensation packages to workers to compete in the tight labour market in Penang.

“The higher wages come with expectations of improved productivity from individual engineers and also across the different departments in organisations,” he added.

According to Lacey, the semiconductor industry lacks skilled workers in the integrated circuit manufacturing and product design departments.

“These shortages are for skilled engineers with over five years working experience, which will take time to build and is harder to address quickly,” Lacey added.

On the RM35.8bil investment the state attracted for the nine months of 2023, Lacey said it would take at least 12 months, possibly up to 30 months, to implement the projects in phases.

“The new demand for talent grows from now till the end of 2024 and then throughout 2025.

“This can only be addressed by a ‘net migration’ of science and engineering talent to Penang from around Malaysia, creating additional pressures on housing and transportation in the state, as well as economic growth,” he added.

The RM35.8bil investment from 107 projects is expected to create 11,000 job opportunities.

Malaysia’s major competitors are Vietnam and Thailand, while India is the iceberg on the horizon.

“However, Malaysia has a huge advantage over Vietnam and India in the form of the large pool of ‘tacit knowledge’ in manufacturing built up over the last 50 years.

“Manufacturers in Penang have been making price-competitive, high-quality products for decades, and it takes a considerable amount of time and effort to train and develop a workforce who can deliver that.

“The way to boost Penang and Malaysia’s competitive edge is to build upon that strong foundation of tacit knowledge by applying it to advanced manufacturing and new opportunities – continuous change and evolution within companies to find new products and markets,” he said.

According to Lacey, Penang’s niche strength is producing products for markets with high reliability and quality expectations, such as automotive and premium consumer applications.

The opportunity now is to extend that niche into new markets such as medicine.

“For instance, leverage electronics manufacturing to make health monitoring or ‘telemedicine’ products where electronics and software provide wellness info to individuals and doctors via your smartphone,” he added.

Lacey added there was an unexpected surge in demand for industrial land triggered by the pandemic and trade war, causing a short-term shortage, while authorities seek to make ready new industrial parks.

Meanwhile, Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai said the E&E industry faced a labour shortage from 2022 till the first half of 2023.

“Since then, there hasn’t been a shortage due to the slowing down of the global economy.

“We see only strategic hiring currently,” Wong said.

However, there will be a looming labour shortage in the second half.

“As the E&E sector improves, we expect most companies to start hiring again in the second half of 2024.

“Some 15% of our engineers have left to work in Singapore, Australia, the United States and the United Kingdom, reducing local talent supply.

“We are also seeing hiring from Taiwan and China.

“Even those fresh out of university, without any prior working experience, will soon find themselves in demand in our industry,” Wong added.

He also noted the investment would take 18 to 24 months to implement if the new project needed land and building.

“If it is an expansion project with available space, the rollout period will be six to 12 months.

“However, the global economic climate will also determine how fast the project commences and ramps production,” he said.

Wong said the relevant authorities, such as the Economic Planning Unit, Malaysia Productivity Corp, and The Special Task Force To Facilitate Business, helped expedite the approval of expatriate passes for foreigners.

“Before June 2023, the time needed to issue such passes was six months to a year.

“Now, it takes only ten days to issue, which has strengthened our competitive edge,” he added.

Meanwhile, Aemulus Holdings Bhd chairman Datuk Seri Lee Kah Choon said foreign companies were migrating from China because of technically sensitive E&E products (TSP).

“If TSPs are sanctioned, foreign operations in China will eventually be eliminated by the Chinese local competitors too, which is one of the main reasons overseas companies are leaving China.

“The Chinese know that TSPs will be embargoed sooner or later.

“They will need to come out from China to look for alternatives, which is one of the reasons for the surge of Chinese investment overseas.

“Apart from that, the Chinese also need to expand their market overseas for products that have manufacturing advantages, such as solar panels and electric vehicles,” he said.

Lee said Malaysia’s E&E supply chain was manufacturing excellence in the back-end space.

“A non-targeted, general investment flow into Malaysia will not be sustainable because of her limited human resources.

“On the contrary, these non-targeted investments will cannibalise her limited resources,” he said.

Lee said the investment figure might indicate the nation’s attractiveness to investors.

“The figure is based on the Malaysian Investment Development Authority’s approval only.

“The approved projects may still land in other countries.

We need to monitor the implementation rate of these ‘approved’ investments closely,” Lee said.

Source: The Star

Lower pressure on firms to ramp up production

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Automation to autonomy is the name of the game in the manufacturing industry. While automation remains important, there is a shift towards achieving manufacturing processes that are truly autonomous, says Marcelo Tarkieltaub, regional director of Southeast Asia at Rockwell Automation.

According to Rockwell’s latest State of Smart Manufacturing Report, 44% of Asia-Pacific (Apac) manufacturers plan to adopt smart manufacturing next year. Meanwhile, 88% of Apac manufacturers say they intend to grow or maintain their current level of employment, thanks to smart manufacturing technologies.

Some of the barriers to the adoption of smart manufacturing are employee resistance to technology, lack of skill sets to manage smart manufacturing implementation and lack of a clear definition of the value of smart manufacturing, according to Rockwell’s report.

To meet the demands of smart manufacturing, manufacturers should empower their employees with the necessary skills to adapt to evolving roles and collaborate effectively with artificial intelligence (AI) systems, says Tarkieltaub.

For instance, AI and augmented reality (AR) tools could be used to create virtual environments for experiential learning and knowledge sharing.

“The integration of AI plays a pivotal role in enhancing decision-making capabilities and driving cost-reduction. Although this transformation may not be immediate, cloud technology is emerging as a key enabler, providing a platform for agile and rapid implementation of autonomous solutions,” he says.

“The convergence of autonomy, AI and cloud technology marks a transformative phase in manufacturing, promising increased efficiency and responsiveness in the face of evolving industry demands.”

A couple of technologies are pivotal in the transition to smart manufacturing — cloud technology and generative AI. Cloud technology will facilitate the transition by providing a scalable and interconnected platform. Meanwhile, generative AI will play a significant role in shaping the future of the manufacturing process.

“For many industries, automation has been a game changer. The idea of removing human intervention as much as possible has resulted in faster production of everything and has reduced human errors in production,” Tarkieltaub points out.

Here’s where AI will lend a hand. “While automation has been pivotal in streamlining repetitive tasks, the focus is now expanding to imbue machines with decision-making capabilities, reducing the reliance on constant human oversight,” he says.

“AI is a key player in this evolution, as it empowers machines to analyse data, adapt to dynamic conditions and make informed decisions in real time.”

Rockwell has AI-driven systems capable of real-time parameter adjustments to enhance efficiency and product quality in the manufacturing process.

In collaboration with Microsoft, Rockwell has expanded its partnership to incorporate generative AI, which is Azure OpenAI Service, into industrial automation. Tarkieltaub explains the integration of generative AI will automate routine tasks, improve engineering efficiency, address labour shortages and accelerate time-to-market.

According to Rockwell’s report, 23% of operating budgets are spent on technology, although this varies across industries. This is as the Malaysian manufacturing sector is set to expand by 4.2% in 2024, according to the Fiscal Outlook and Federal Government Revenue Estimates report. The growth is driven by improved performances in both export- and domestic-oriented industries.

“No matter the investment level, budgets must be set with an eye firmly on the future. Manufacturers will need to invest in areas that help to address skills shortages, while increasing automation, machine learning and AI, in order to fully exploit the potential of technology and insights across the organisation,” he says.

This is why Tarkieltaub believes embracing smart manufacturing is not just a choice but a strategic imperative for manufacturers.

He recommends manufacturers start with a comprehensive assessment of current capabilities and set specific goals, build a cross-functional team that ensures collaboration across departments for a holistic approach, and invest in robust connectivity and integration which lays the foundation for seamless communication between devices and systems.

“The adoption of smart manufacturing varies across industries and may take several years as businesses navigate challenges such as technology integration, workforce upskilling and addressing cybersecurity concerns,” notes Tarkieltaub.

He reiterates that generative AI will accelerate the transformation of the manufacturing and industrial sectors. “With its ability to leverage vast amounts of data and predict outcomes, AI can significantly improve decision-making, optimise production lines, enhance product quality and reduce waste,” he says.

“As AI continues to evolve, new applications and capabilities will emerge, further shaping the landscape of smart manufacturing. Keeping abreast of the latest developments in AI is essential for industries looking to leverage these technologies for improved efficiency, innovation and competitiveness.”

Source: The Edge Malaysia

Automation: Focus on skill empowerment to build smart manufacturing workforce

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The data centre market in Asia is expanding rapidly, driven by the demand for cloud services, the Internet of Things (IoT) and the widespread adoption of other emerging technologies such as artificial intelligence.

When we think of data centre hubs in the region, leading “Tier 1” markets of Singapore, Japan, Taiwan and Hong Kong typically come to mind. However, the “Tier 2” markets are now showing exponential growth, propelled by a combination of growing population and internet penetration, which drives the expansion of infrastructure, government support and conducive business environments for data centre investment.

Malaysia is one of the Tier 2 markets with untapped potential to be a data centre hub. In terms of demand drivers, Asia-Pacific is expected to contribute 90% to global e-commerce growth between 2021 and 2026.

In line with this, Malaysia has one of the highest rates of internet penetration at 96.8%, with more than 33 million internet users as at January 2023. Johor is one of the fastest-growing data centre markets in the region, currently with 33mw of live and pipeline capacity and most facilities in the planning or construction phase.

Putting Malaysia’s data centre market into perspective

Malaysia’s data centre market is on the rise, with a growing market size, increasing demand and substantial investments pouring into the local sector. The country received RM76 billion (US$16 billion) worth of investments from its data centres between 2021 and March 2023, and its data centre market is expected to attract investments of US$2.25 billion by 2028.

It is well on track to achieve its vision of accelerating its digital economy and transforming into an “Asian Digital Tiger” by 2025. This acceleration has been reinforced by the active participation of international players in Malaysia’s two major data centre regions — Greater Kuala Lumpur and Johor.

NTT, a global infrastructure and services company, recently unveiled its new data centre facility in Cyberjaya, further solidifying its commitment to the region. Amazon Web Services also recently revealed plans to launch an infrastructure region in Malaysia, with an investment plan of RM25.5 billion in the country by 2037. Additionally, GDS, a developer and operator of high-performance data centres, recently announced its first data centre for Southeast Asia, located in Johor.

Linesight has seen this growth first-hand, noting a significant increase in client demand and project developments. A key consideration for the demand is the proximity to Singapore, a testament to Malaysia’s strategic geographical advantage as a spillover market.

Behind the appeal of Malaysia as a data centre destination

What makes Malaysia an attractive choice for data centre investment? First, Malaysia distinguishes itself with superior infrastructure, making it a highly conducive setting for seamless data centre operations.

Data centre providers are located around the undersea cable landing points, for decreased latency, and have received support from local utility suppliers in their requests for upgrading the local infrastructure to cope with the demands of their new developments.

The country also excels when compared with other nations, with its robust cybersecurity framework, skilled educated workforce and strategic positioning for undersea cabling initiatives. Some companies have sought Malaysia’s business reliability and its centralised location to expand their portfolio across Asia.

Beyond all of this, what sets Malaysia apart from other countries is its affordability in terms of land and energy. The availability of suitable land for development at competitive prices can significantly reduce the overall cost of setting up and operating data centres.

In response, some companies have acquired between 10ha and 20ha of land for future development, establishing a strategic base to continue to expand once future funding has been secured.

Carving out a competitive edge to elevate Malaysia from Tier 2 to Tier 1

To transition from a Tier 2 to a Tier 1 data centre destination, Malaysia must adopt innovative strategies. It is essential to recognise the competitive nature of the global data centre market and the lessons that can be learnt from Tier 1 markets like Singapore, which implemented a moratorium to refocus and put the industry on a sustainable path.

Malaysia must consider several key factors to stand out from the booming data centre space and foster continued market expansion. The nation has made significant headway in upgrading its infrastructure, complemented by the establishment of government incentives, including tax incentives and regulatory support for the sector.

Leveraging its expansive land mass, Malaysia can embark on new infrastructure projects that can generate further growth. Partnerships with international data centre operators and cloud service providers have also proved to be an effective approach to attracting investment.

Malaysia’s attractiveness is further enhanced by its commitment to green energy, with an estimated 40% of power generation coming from renewable sources by 2035.

Given the increased visibility of sustainability and net zero targets, Malaysia must now actively position itself as an environmentally conscious data centre hub, prioritising energy efficiency and embracing sustainable methodologies. This transformative process should be implemented in a manner that encourages a recalibration and the formulation of a well-defined sustainability strategy for the future development and operation of data centres.

The future

Malaysia’s data centre market shows positive future growth. With the right strategies, investments and support, the country has the potential to become a prominent leader in Asia. In the short term, Malaysia can expect a surge in data centre developments, both in terms of new facilities and expansions of existing ones.

The lessons learnt from the leaders in the data centre industry provide a roadmap for Malaysia’s ascent in the market. By embracing innovation, improving on the existing infrastructure, offering incentives and prioritising sustainability, the country can make its mark as a data centre hub and play a significant role in shaping the future of Asia’s data centre landscape.

Source: The Edge Malaysia

Data Centres: All eyes on Asia’s future ‘Digital Tiger’

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Eco World Development Group Bhd is confident its largest green business park, Eco Business Park V (EBP V) will become a prime investment destination with a strong local and global appeal.

Eco World Development Group Bhd divisional general manager Eco Central Ho Kwee Hong said the impending completion of the RM150 million LATAR Express Interchange by the end of 2024 is set to enhance its connectivity.

“Currently the construction is ongoing at site and is happening very well and construction will be completing by end of this year. And by Q1 2025, basically we will open it for traffic in Q1’25,” she said at the signing for the purchase of industrial land and factories land EBP V involving Central Gate, North Gate and West Gate last Friday.

Ho said EBP V provides business spaces featuring ready-made factories and customisable industrial land, as well as outstanding infrastructure with environmentally friendly amenities and top notch safety features.

“I foresee our business park will be successfully evolving into a hub that is capable of attracting local and also international investors and fostering strategic partnership for mutual growth of everyone who reside in our business park,” she said.

Eco World Development Group Bhd’s 769 acres green business park, EBP V has signed agreements with 11 new companies for the purchase of land and factory lots.

EBP V is part of the Eco Grandeur township that is currently being developed via a joint-venture between EcoWorld Malaysia and the Employees Provident Fund.

A memorandum of understanding (MoU) was also signed between EcoWorld and GoldenHome Living Co Ltd to establish a strategic partnership in providing housing furniture such as kitchen cabinets, wardrobes and innovative product packages for EcoWorld’s residential, commercial and industrial developments.

This is the second signing event of EBP V.

Last year, EBP V held a similar event with more than 15 companies from various sectors signing on to various businesses at the park and some of the industrialists have started their business in EBP V now.

With a total GDV of RM3.5 billion, the green industrial park spans 769 acres across five meticulously planned phases: East Gate, West Gate, North Gate, Central Gate and South Gate.

Since its launch in 2017, EBP V has attracted over 400 diverse enterprises from various industries and its West, North and Central Gates are fully sold out.

Meanwhile, East Gate has been fully completed with an occupancy rate of over 90%.

“As one of our four revenue pillars, Eco Business Parks contributed a record-breaking RM1.04 billion to the Group’s total RM3.6 billion sales in FY2023,“ Eco World president and CEO Datuk Chang Khim Wah said in a separate statement.

“This pillar has seen exponential growth in recent years recording an overwhelming increase in sales of 374% from FY2020, Eco Business Parks will continue to be a magnet, attracting more regional and international investors and industrialists.”

Source: The Sun

Eco Business Park V aims to become prime investment destination

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Teladan Group Bhd’s subsidiary Riverwell Resources Sdn Bhd (RRSB) has signed a memorandum of understanding (MoU) with Melaka Corporation (MCORP) to develop a 138 hectare (ha) German Technology Park at Ayer Panas, Jasin, Melaka.

The Melaka-based property developer said the proposed project aims to attract German investment into the state of Melaka and strengthen Malaysia-Germany economic ties.

It encompasses various industrial developments, including industrial bungalow lots, semi-detached factories, shop offices, and centralised labour quarters.

Under the MoU, Teladan said both parties will collaborate on feasibility studies and development planning of the proposed project.

It added that the agreement seeks to leverage on the construction expertise of Teladan and its landbank located along Jalan Gapam.

At the same time, MCORP will lead the development and sales of the proposed project.

Teladan managing director Richard Teo Lay Ban said with a proven track record of developing over RM2.9 billion in combined gross development value (GDV) across residential, commercial, and industrial projects, the company is confident in its contribution to this project’s success.

“Looking ahead, we are optimistic about Melaka’s economic trajectory, driven by the 2024 Budget’s focus in enhancing Melaka’s competitiveness, alongside the government’s commitment to positioning the state as a global tourism hub and trade and investment centre.

“With Teladan’s deep experience in Melaka, we are well-positioned to explore new development opportunities and unlock significant long-term commercial value,” it said in a statement.

Melaka chief minister Datuk Seri Utama Ab Rauf Yusof said this collaboration strengthens Malaysia’s position as a preferred investment destination within Asean and deepens economic ties with Germany.

He added that the proposed project aligns with the government’s economic growth initiatives by promoting industrial advancement and attracting high-tech industries to Melaka.

“By leveraging on Malaysia’s strategic location in Southeast Asia and its robust infrastructure, we aim to drive Melaka’s industry, business, and trade forward.

“The proposed project represents a significant step towards advancing international trade activities, creating job opportunities, and broadening the country’s market access.

“At MCORP, we are committed to supporting Malaysia’s economic growth and development,” he said.

This project builds on the robust trade relations between Malaysia and Germany, which have flourished significantly over the past decade.

Germany has remained Malaysia’s top trading partner in the European Union, while Malaysia is now Germany’s largest trading partner in Southeast Asia.

Furthermore, Malaysia continues to be an attractive destination for foreign direct investments (FDIs) with German companies investing €8.5 billion (RM43.61 billion) as of 2023.

As of Dec 31, Teladan holds a total of 433.6 ha of undeveloped landbank, with a significant portion located in Melaka with a potential GDV of RM2.7 billion.

Source: NST

Teladan Group to build 138ha German Technology Park in Jasin, Melaka

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Neways, a key supplier to Dutch computer chip equipment maker ASML, has said it will build a new plant in Klang.

The facility will begin production in the fourth quarter of 2024, giving the company additional capacity in Asia, where it also has a plant in Wuxi, China.

“Neways will focus on developing and producing advanced modules and cabinets for some of the world’s most renowned players in the semiconductor sector,” the company said in a statement yesterday to announce the decision.

A Neways spokesperson said they could not disclose the size of the investment, but the company intends to grow its operation in Malaysia to 200 employees.

“The choice for Malaysia is largely driven by the country having a well-developed ecosystem…including a well-established mature semiconductor supply chain,” the company said.

Neways, which was de-listed in 2021 after being taken over by investment firm Infestos for €177 million (RM900.9 million), makes electrical control units, power controls, and wiring systems for ASML’s lithography products.

Source: Reuters

ASML supplier Neways to build new plant in Malaysia

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The East Coast Economic Region Development Council (ECERDC) has successfully realised investments worth RM2.4 billion in Terengganu as of March 2024.

Terengganu Menteri Besar Datuk Seri Ahmad Samsuri Mokhtar said the investments included in the fields of iron and steel manufacturing, napier cultivation, pulp mills and food containers which created 5,000 job opportunities for the locals.

He said the value of the investments represented 57 per cent of the RM4.2 billion investment target set by ECERDC for the state of Terengganu this year.

“ECERDC also managed to attract new committed investments worth RM1.02 billion in the oil; gas and petrochemical sectors (RM940 million); services (RM50 million); tourism (RM20 million) and manufacturing (RM10 million) as of March.

“A total of 65 per cent involved foreign direct investments (FDIs) with the highest investment received from Japan which was RM660 million,“ he said in a statement after chairing a meeting of the Implementation and Coordination Committee (ICC) of the East Coast Economic Region (ECER) here today.

Also present at the ICC meeting were Terengganu state secretary Datuk Seri Tengku Farok Hussin Tengku Abdul Jalil; secretary of the development division of the Prime Minister’s Department, Datuk Jazmanie Shafawi; and ECERDC chief executive officer Datuk Baidzawi Che Mat.

Baidzawi said the ICC meeting also discussed the development of the recreational vehicle (RV) industry in an effort to make Malaysia an RC hub in Asia Pacific by 2025.

According to him, several locations have been identified to be developed as RV parks in Terengganu.

“ECERDC has also signed a memorandum of understanding (MoU) with a leading power generation company from China.

“For the Kuala Terengganu airport road (KTAR) project, progress has reached 37 per cent as of February 2024,“ he said.

Meanwhile, in a separate ceremony, Baidzawi also completed the handing over of Surau Al-Ikhwan Teluk Ketapang to the Department of Religious Affairs of Terengganu and the Teluk Ketapang kindergarten to the Department of Community Development of Terengganu.

He said the two infrastructures worth almost RM1 million under the KTAR project were able to benefit about 2,000 residents around Kampung Teluk Ketapang and nearby areas.

“The surau and kindergarten are part of the KTAR project implemented at a cost of RM28 million by the federal government through the ECERDC.

Source: Bernama

ECERDC has realised RM2.4b investments in Terengganu as of March 2024

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Asia Digital Engineering (ADE) is well positioned for substantial growth in the coming years as plans are underway to establish a new maintenance, repair and overhaul hangar facility at the Kuala Lumpur International Airport (KLIA), its chief executive officer Mahesh Kumar says.

ADE is the engineering and maintenance subsidiary of Capital A Bhd.

Mahesh expressed his confidence that revenue will double by 2025 and progressive growth thereafter.

The new hangar facility, spanning 8.19 ha, is being constructed in two phases, with Phase 1 slated for completion in May 2024 and operational by August, while Phase 2 will follow swiftly, with operational readiness anticipated by October this year.

Mahesh Kumar revealed that the hangar facility will also see Phase 3 coming up once Phase 2 is completed, and the company has a first right of refusal with Malaysia Airports Holdings Bhd for a 2.07-ha piece of land near the facility in KLIA.

“The soil testing work has begun (for Phase 3), and we are planning to start construction once the second phase is ready, expecting completion by the end of 2026,” he told Bernama.

Mahesh said the hangar facility’s Phase 3 will accommodate another four lines of narrow-body aircraft.

Upon the completion of Phases 1 and 2, the hangar facility will make ADE the largest service provider in Malaysia and one of the largest in the region.

Mahesh further stated that the new hangar facility would provide flexibility for ADE to service wide-body aircraft such as A330 and B737 types.

Designed in an ‘L’ or boomerang shape, the facility would allow for maximum land use and more hangar lines.

Source: The Star

Capital A’s ADE expects to double its revenue by 2025

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Figures of realised investments in Malaysia for 2023 will be made public early next month, says Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

The Investment, Trade and Industry Minister said the approved investments for last year amounted to RM329.5bil, which was the highest in history.

“We will be announcing in the first week of April an update (on realised investments).

“The numbers are being finalised to show how much (investments) has started in terms of the total sum,” said Tengku Zafrul during the Concorde Club meeting at Wisma Bernama yesterday.

The Concorde Club is an informal group of editors and senior journalists who meet with politicians and key policy makers.

Previous guests of the Concorde Club, led by SMG advisor and Bernama chairman Datuk Seri Wong Chun Wai, included Prime Minister Datuk Seri Anwar Ibrahim, Penang Chief Minister Chow Kon Yeow, Opposition leader Datuk Seri Hamzah Zainudin, former premier Datuk Seri Najib Razak and ministers Datuk Seri Mohamad Hasan and Anthony Loke.

According to Tengku Zafrul, the realisation of approved investments usually takes between two and three years.

He said that on average, the annual implementation performance from 2021 to 2023 showed that more than 85% of approved manufacturing projects had been executed.

To ensure that approved investments are realised, the minister said it is imperative to focus on execution.

“That is why the Prime Minister, through the national investment council, is pushing all parties in the government, especially ministries, state governments and local councils to speed up the process,” said Tengku Zafrul.

At present, he said Malaysia is seeing a positive flow of investments and the country should capitalise on its strength, among them the green economy and semiconductor industry.

The approved investments of RM329.5bil last year was 23% higher compared to 2022, which recorded RM264.6bil.

The total approved investments involved 5,101 projects and could potentially create over 127,000 new job opportunities for the people.

The services sector recorded the highest investments, contributing over half or 51.1% of total approved investments at RM168.4bil, followed by the manufacturing sector at RM152bil (46.1%) and primary industries at RM9.1bil (2.8%).

Source: The Star

Tengku Zafrul: Realised investments to be announced early April

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In his welcoming remarks at the Madani breaking of fast programme with ambassadors, foreign representatives, and international organisations at Seri Perdana Complex here today, Anwar said he is looking forward to working together with his counterpart, Thailand’s Prime Minister Srettha Thavisin, in other areas.

“We are working with Srettha to have further collaborations. The Foreign Ministry will also be assisting (the country) to ensure collaborations between Asean and bilateral relations with our neighbours will further strengthen,” he emphasised.

Thailand was Malaysia’s seventh-largest trading partner globally in 2023, with total trade of RM113.16 billion (US$24.83 billion).

Anwar also said that besides Thailand, Malaysia is working with Singapore in completing the Johor-Singapore Special Economic Zone (JS–SEZ), with a joint agreement between both countries expected to be inked by year-end.

“This (JS-SEZ) would benefit south Malaysia and Singapore as well,” said Anwar, who is also Finance Minister.

On March 14, the Ministry of Economy announced Malaysia and Singapore are expected to ink the joint agreement during the 11th Malaysia-Singapore Leaders’ Retreat later this year.

Elaborating on Malaysia’s collaborations within Asean, Anwar said Malaysia would expand and deepen collaborations in several areas such as energy transition, digital transformation, public health, and education.

“We are fortunate to pursue this policy and at the same time, we are traveling abroad (within) ASEAN and I have covered all of these countries,” he said.

In 2023, Malaysia’s major trading partners were Asean, China, the United States, the European Union and Japan, which accounted for a 67.7 per cent share of Malaysia’s total trade.

Earlier, Anwar spent time breaking fast with 300 guests from Maahad Tahfiz Sulaimaniyah, Kajang, ambassadors, foreign representatives and international organisations.

Source: Bernama

Malaysia to deepen collaboration with Thailand — PM

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The digital economy is one of the proposed sectors of focus for the Johor-Singapore Special Economic Zone (JS-SEZ), says state executive councillor Lee Ting Han (pic).

The Johor investment, trade, consumer affairs and human resources committee chairman said the state government had a few meetings with the relevant government agencies regarding the JS-SEZ.

Lee said that the digital economy was a sector proposed because Singapore has certain advantages in the region being a regional centre of connectivity in terms of data, digital economy and cyber-related matters.

“Johor is located next to Singapore and has the natural resources, talents and necessary ingredients to support and complement whatever the city-state has at the moment,” he added.

Lee said this at the opening ceremony of the NEC Malaysia office in Iskandar Puteri here on Wednesday (March 20).

Apart from the announced measures to ease the movement of people and goods, another work in progress is to allow the free flow of data between Johor and Singapore under the JS-SEZ, said Lee.

He added that Johor has also witnessed the rapid expansion of the data centre industry in the past two years.

“At the moment, we have four data centres that are up and running while 10 more are in various stages of construction and another 14 more are in various stages of discussion with the state government and federal government,” said Lee.

“All these are the necessary digital infrastructure that will allow the digital economy sector to prosper and eventually attract the artificial intelligence and related industries to the region,” he added.

Lee also welcomed Japanese IT solutions company NEC for setting up its centre of excellence in Sunway City, Iskandar Puteri, adding that it would serve as a platform for Malaysian talent to equip themselves with skills needed to excel in the managed services and cyber defence industries.

Source: The Star

Digital economy proposed sector of focus for Johor-Singapore Special Economic Zone

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The Ministry of Investment, Trade and Industry (MITI) will continue to accelerate and facilitate the implementation of industrial master plans to ensure that all investments are realised, said its minister Tengku Datuk Seri Zafrul Abdul Aziz.

Tengku Zafrul said Prime Minister Datuk Seri Anwar Ibrahim has successfully attracted potential foreign investments amounting to RM76.1 billion as of March this year.

Hence, he said it is crucial to implement government measures to achieve Malaysia’s targeted economic growth rate of between four per cent and five per cent this year.

“Various strategies, including the industry masterplans, are primary drivers. So it (Bank Negara Malaysia) is urging for a focus on execution,” he told reporters on the sidelines of the Industrial Take Off Year 2024 programme organised by Concorde Club at Wisma Bernama today.

On a question on realisation of investments, Tengku Zafrul explained that investments should take between two and three years to be realised.

“That is why the facilitation centre has been improved and through the National Investment Council, we are pushing for all parties within the government, especially the agencies in the ministries including the local councils to speed up the whole process,” he added.

Tengku Zafrul also said MITI is dedicated to ensuring that approved investments materialise and that investors do not encounter unnecessary difficulties.

“In fact, we are confident that we will start announcing the tracking of this (investments) in a more regular manner.

“Previously, we have done this (investment announcement) every six months and every one year, but we want to increase that and be more transparent so that people are aware of the process that is taking place and where those investments are,” he added.

Tengku Zafrul said the Malaysian Investment Development Authority (MIDA) is expected to produce a monthly report that provides comprehensive information regarding the value of both approved and realised investments.

During Bank Negara Malaysia’s (BNM) Annual Report 2023 release on Wednesday, the central bank called for the expediting of numerous industry master plans launched last year to support economic growth.

Among the master plans announced by the government in 2023 are the New Industrial Master Plan 2030 to transform key sectors such as manufacturing and the National Energy Transition Roadmap to uplift the nation’s renewable energy sector as a growth engine.

BNM has projected Malaysia’s gross domestic product growth at between four per cent and five per cent in 2024 versus 3.7 per cent in 2023, with upside risks stemming from the tech sector upcycle spillover, improved tourism numbers and project roll-outs.

Inflation, after incorporating the targeted subsidy roll-out, is forecast at between two per cent to 3.5 per cent by the central bank for the year, from 2.5 per cent in 2023.

Source: Bernama

MITI continues to accelerate, facilitate investments to achieve economic growth target – Tengku Zafrul

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More Malaysian companies should consider investing in the semiconductor industry and make the leap to position themselves in the front-end of the global semiconductor ecosystem, said Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz.

In making the call, the Minister said although Malaysia is a prominent player in the global semiconductor sector for over 50 years now, there is still room for improvement.

“We have been a major player in the last 50 years and we now want to move up that value chain from back end to front end, but at the same time we also want more Malaysian companies to participate in the development of this ecosystem,” he said.

He said Malaysia has strengths in both the digital and green economies. While Malaysian companies play a big role in renewable energy, there is the need for improvement in the digital economy, namely in data centres.

“I think we should encourage more Malaysian companies to invest in this sector as well and MITI is actually engaging with local companies, investors, especially the government-linked investment companies, to see how they can participate as well,” he said on the sidelines of Industrial Take Off Year 2024 programme organised by Concorde Club at Wisma Bernama today.

Tengku Zafrul said MITI is working on institutionalising the process and invite local businesses to invest in the sector.

He pointed out that Malaysia has seen favourable flows of capital and investments as a result of trade tensions between two superpowers, the United States and China.

It was reported that Malaysia has emerged as a surprising victor in the global semiconductor business during the current trade war between the US and China.

The news report further said that manufacturers in Malaysia are harnessing the chance to upscale their operations and extend their global market footprint as rival manufacturers from the two global powerhouses face constraints.

source: Bernama

Malaysian firms should consider investing in semiconductor industry to make the leap in value chain – Tengku Zafrul

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