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Sabah is set to strengthen its position in the electric vehicle (EV) industry with the establishment of its first assembly plant at the Palm Oil Industrial Cluster (POIC) Sandakan.

Maxland Auto Sdn Bhd, which secured its federal manufacturing licence from the Malaysian Investment Development Authority (Mida) last year, plans to invest RM100mil in the project by 2028.

The project is expected to generate up to 500 jobs by its third phase, which includes a manufacturing plant.

“This milestone aligns with the state government’s vision for industrial diversification and sustainable economic growth,” state Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe said during a recent site visit.

His ministry and other agencies have pledged their support for this and other similar investments.

“The government is committed to fostering industrial growth and ensuring Sabah becomes a key player in the green technology sector,” Phoong said, stressing the importance of clean energy transportation in driving economic progress.

Accompanying the minister on the visit were ministry permanent secretary Datuk Thomas Logijin, Sandakan Municipal Council president Walter Joseph Kinson, Industrial Development and Research Department director Rodolfo Blantocas, Sabah Mida director Joseph Benjamin, and Invest Sabah Berhad deputy chairman George Wong.

With this development, Sandakan is poised to emerge as a hub for EV innovation, reinforcing the state’s commitment to sustainable industrialisation and economic transformation.

Source: The Star

Sabah’s first EV assembly plant to be built in Sandakan

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The Klang Valley has overtaken Penang as Malaysia’s top medical tourism hub by attracting roughly 560,700 international patients and generating the highest regional revenue of about RM886 million, based on data recorded by the Malaysian Healthcare Travel Council (MHTC) from January to November last year.

In 2019, the Klang Valley states of KL and Selangor had reported 490,000 foreign patients.

“The central region leads, contributing 41.6 per cent of total revenue and handling 44.5 per cent of the total healthcare traveller volume,” MHTC said.

The increase in medical tourists was highest in the fields of gastroenterology; obstetrics and gynaecology; orthopaedic surgery; oncology; ear, nose, and throat (ENT); and cardiology.

In 2019, health screenings, gastroenterology, cancer and neoplasm, and obstetrics and gynaecology were the top treatments sought after by medical tourists, as listed in MHTC’s Healthcare Travel Industry Blueprint 2021-2025.

Despite a decline in patients — from 500,000 in 2019 to around 453,600 in 2024 — Penang still saw a significant income hike from RM750 million to around RM866 million, which accounted for 40.7 per cent of the total national revenue.

Last year, the northern region managed 36 per cent of medical tourists in Malaysia.

The southern region comprising Melaka and Johor also grew from RM185 million in 2019 to RM253 million in 2024.

Out of over 99,000 international patients, 90 per cent of medical tourists in Melaka were Indonesians particularly from Batam, Pekan Baru and Bengkalis, Riau. Bernama reported that it was the result of regular promotions to attract Indonesians to cross the strait for medical treatment.

Similarly, the eastern region previously only comprising Sabah and Sarawak in 2019 also saw a rise in income reaching around RM123.5 million (5.8 per cent of national revenue) after including Peninsular Malaysia’s east coast in 2024. This is despite declining patient volume – from 70,000 in 2019 to around 66,700 last year.

Source: Malay Mail

Klang Valley takes medical tourism crown from Penang

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Recent RE initiatives present compelling opportunities for players in the sector However, policy clarity and investor confidence are needed to attract long-term capital for RE projects

MALAYSIA is moving in the right direction when it comes to its renewable energy (RE) initiatives but to fully realise its RE potential, it must improve on policy clarity and investor confidence to attract long-term capital for RE projects.

The country also needs to modernise the grid to accommodate decentralised solar and largescale renewables, expand regional energy interconnectivity and enhance local energy storage and digital grid solutions to ensure reliability and efficiency.

Professor Lee Poh Seng, executive director of the Energy Studies Institute at the National University of Singapore (NUS), says Malaysia can become a key player in South-east Asia’s clean energy transition if it addresses all these matters.

The Energy Transition and Water Transformation Ministry announced a slew of initiatives recently, including the Community Renewable Energy Aggregation Mechanism (Cream), large-scale solar six (LSS6), as well as an upcoming Energy

Storage Systems (ESS) bidding round.

These initiatives are in line with the country’s overall aim of achieving 70% RE capacity by 2050.

Datuk Chow Pui Hee, the group managing director of clean energy services and solutions provider Samaiden Group Bhd, says the government’s commitment towards 70% net-zero emissions is evident in the series of initiatives rolled out in recent years.

These include an expanded Net Energy Metering quota, the Cross Border Electricity Supply programme, the Corporate Renewable Energy Supply Scheme, and key LSS programmes such as LSS5, LSS5+, FIT 2.0, and Battery Energy Storage Systems (Bess).

“Together, these initiatives present compelling opportunities for players in the renewable energy sector,” she says.

Chow says the company’s involvement in LSS projects positions it for “solid growth” in the years ahead.

“The upcoming LSS6, with a bidding round set for the second quarter of 2025, is poised to further expand solar capacity, and

Samaiden stands to benefit, given our track record,” she adds.

Challenges aplenty

NUS’ Lee reckons Malaysia is making commendable progress in its RE transition, and these new programmes reflect a well-structured approach.

The Cream initiative, for instance, promotes rooftop solar aggregation, while LSS6 continues to expand Malaysia’s largescale solar capacity, he notes.

Samaiden’s Chow says Cream offers “new opportunities for renewable energy access”.

“We are actively collaborating with property developers to leverage rooftop spaces for solar energy generation, offering both investment and installation opportunities,” she says.

The ESS bidding round is also a vital step in addressing grid intermittency and enhancing energy resilience.

Lee reckons Malaysia’s approach towards RE is slightly different from Singapore’s.

Malaysia benefits from vast land availability and natural resources, allowing it to scale up solar, hydro and biomass energy projects, while Singapore has significant constraints due to land scarcity.

Consequently, Singapore relies on regional RE imports, whereby it is developing cross-border electricity trading with Malaysia, Indonesia and Laos, and floating solar farms where it already has a 60MWP floating solar farm at Tengeh Reservoir.

Singapore also has green data centres and battery storage and smart grids with the Singapore Energy Market Authority heavily investing in energy storage solutions and digital grid management, Lee says.

“In contrast, Malaysia has the potential to become a regional

RE leader, especially with its LSS and hydro resources. However, its ability to scale up RE will depend on grid modernisation, policy stability and investments in energy storage.”

Under the LSS initiatives, for instance, there will be continuous cost reduction through economies of scale.

As seen in LSS5, competitive bidding lowers solar power generation costs.

There is also the scalability, Lee says with LSS6 being able to add substantial capacity to the grid, helping Malaysia reach its RE targets.

Nevertheless, there are pitfalls.

Lee says identifying large tracts of land for solar projects may conflict with agriculture and conservation efforts.

There are also project delays and financing risks in each project as large-scale infrastructure projects often face bureaucratic hurdles, delays and financing challenges.

Likewise, for ESS, he says there is also the high capital cost to consider as such investments require significant funding, which may deter smaller investors.

Additionally, there will likely be technology maturity and lifecycle issues such as battery degradation, recycling concerns and evolving storage technologies that can pose uncertainties.

Cream, he notes, is a novel approach to aggregating residential rooftop solar for corporate and local consumers, but coordinating leasing agreements between homeowners and developers may be challenging.

Another challenge may involve grid integration as managing multiple small-scale distributed solar producers may require enhanced grid infrastructure.

Source: The Star

Stepping up the RE push

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Sarawak has attracted RM116 billion in approved investments across all sectors from 2020 to September 2024, solidifying its position as a major investment hub in Malaysia, said Deputy Premier Datuk Amar Awang Tengah Ali Hasan.

Speaking at a press conference today, the State Minister of Natural Resources and Urban Development and Minister of International Trade, Industry and Investment, attributed this success to Sarawak’s stable political climate and pro-business policies.

“Now, from the year 2020 to September 2024, total approved investment to Sarawak across all sectors thas been recorded, amounting to RM116 billion,” he said.

He was speaking at a press conference in conjunction with the 16th Parti Pesaka Bumiputera Bersatu (PBB) Convention, scheduled to take place from Feb 14 to 16 at the Borneo Convention Centre Kuching (BCCK).

He emphasised that Sarawak continues to be a prime investment location while simultaneously developing its conventional economic activities and exploring new industries based on sustainable development.

“Besides enhancing our conventional economic activities, our Premier wants to explore new areas based on sustainable development because, in the pillars of our Post-Covid-19 Development Strategy (PCDS) 2030, one of the key focuses is environmental sustainability,” he said.

Sarawak is also making significant strides in renewable energy, he said, aiming to generate at least 15,000 megawatts of electricity by 2035, not only for domestic consumption but also for export.

“We are going to be the hub. We have already started exporting power to Kalimantan, Indonesia, and now Sabah also wants to buy power from us. Even Singapore, and possibly Peninsular Malaysia, could be supplied by Sarawak,” he elaborated.

Beyond renewable energy, Awang Tengah said Sarawak is also strengthening its presence in the oil and gas sector through Petroleum Sarawak Berhad (Petros).

“We have already signed the Commercial Settlement Agreement with Petronas and the federal government, which provides a framework for us to work together. Petros is now the sole aggregator of gas in Sarawak, giving us a stronger position in the industry,” he said.

He also emphasised the state’s commitment to infrastructure development, including new ports and airports, to facilitate economic growth.

“Our Premier has announced that we will have a new port and a new airport. Yesterday, we took over MASwings and launched AirBorneo.

“This is crucial to unlocking Sarawak’s economic potential,” he said.

To ensure Sarawakians benefit from this economic growth, Awang Tengah said the state government is also investing in education and skills development.

“By 2026, we aim to provide free tertiary education for Sarawakian students. The students won’t have to pay – the government will cover their education costs,” he said.

He also highlighted Sarawak’s recent recognition by the World Bank as a high-income region in 2023 and 2024, attributing this achievement to the Premier’s leadership.

With a clear economic direction and strong leadership, Awang Tengah expressed confidence that Sarawak will continue to grow and attract more investments in the years to come.

Source: The Borneo Post

Awg Tengah: Sarawak records RM116 bln in approved investments since 2020, solidifying its economic hub status

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Malaysia’s economic indicators have shown huge improvement, says Datuk Seri Anwar Ibrahim, dismissing claims by Opposition MPs that investors’ confidence has eroded due to policy uncertainties and flip-flops.

The Prime Minister said Bursa Malaysia reported minimal fund outflow from the country compared to its regional peers, such as Thailand and Indonesia, following the Donald Trump-led US administration.

“The Gross Domestic Product (GDP) for the first nine months of (2024) has been encouraging, investments rose 10.7% in the first nine months of 2024 compared to the corresponding period in 2023. This is a significant increase,” he said, adding that there were investment commitments from multinational companies such as Amazon, Microsoft, and Infineon Technologies, among others.

“This reflects investors’ confidence,” he said during the Prime Minister’s Question Time in the Dewan Rakyat on Thursday (Feb 13).

He said rating agencies such as Nomura, JP Morgan and HSBC have increased ratings for Malaysian public listed companies.

Anwar said the stock market did decline in February much like other regional bourses.

“However, companies and financial institutions continued to report big profits,” he said while reading out the profits registered by major banks.

“What sort of a dream is the perception that investors’ confidence has eroded because of the addendum (issue)?” he asked.

He was responding to a question from Wan Ahmad Fayhsal Wan Ahmad Kamal (PN-Machang) on the reasons why many foreign investors have been selling their shares in the country recently.

“Where are the numbers from?” asked Anwar.

When it came to the supplementary question, Wan Ahmad Fayshal then cited a Bursa Malaysia report and said that the foreign outflows from Bursa Malaysia has been high since Anwar became Prime Minister. He then asked whether the reason for the outflow is the perception of corruption and the addendum issue, among others.

Anwar then reiterated that all economic indicators have increased. The bond market has also reported a positive performance.

“He (Wan Ahmad Fayshal) did not listen to my explanation,” he said.

“It is alright if that is his view. This is why Machang is not developed,” the premier said.

Wan Ahmad Fayshal then responded by saying that he was a first- time MP, to which Anwar retorted that he would consider increasing allocations for the development of Machang.

Anwar then said what was important was strong economic fundamentals such as economic growth, increase in investments and the strength of the ringgit.

Meanwhile, to another supplementary question by Datuk Seri Hamzah Zainudin (PN-Larut) on the need for reforms on Bursa Malaysia to provide foreign investors the “flavour” to invest in the local capital markets, Anwar said he agreed with the proposal.

“There have been changes to the leadership of Bursa Malaysia which indicate reforms. There are early proposals,” he said while adding that the market capitalisation remains positive at RM2 trillion.

Source: Bernama

Malaysia’s investment climate remains strong, says Anwar

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The government will introduce the New Investment Incentive Framework (NIIF), which will be implemented from the third quarter of 2025, said Deputy Minister of Investment, Trade and Industry Liew Chin Tong.

He said the NIIF is an improvement by focusing on high-value activities and economic spillover effects for investment proposals submitted, compared to existing practices or mechanisms that offer investment incentives based on specific products or activities.

“In an effort to increase the influx of foreign investments, the Madani Government is focusing on creating a paradigm shift that is no longer focused on the concept of ‘made in Malaysia’, but is more concerned with the new paradigm of ‘made by Malaysia’.

“From Miti’s perspective, this effort is also focused on the aspiration to develop a ‘local champion’, he said during a question and answer session at the Dewan Rakyat on Thursday, in reply to a question by Datuk Dr Zulkafperi Hanapi (Tanjong Karang), who asked about the additional measures that will be taken to ensure that foreign investments continue to increase in 2025.

According to Liew, the government will also take advantage of Malaysia’s role as Asean chair in 2025, to strengthen regional economic cooperation by ensuring Asean continues to be a high-impact platform.

The Ministry of Investment, Trade and Industry (Miti) will also promote Malaysia’s investment ecosystem as a selected investment destination in the region, which at the same time encourages foreign investments, including strengthening the supply chain ecosystem from Asean member countries, he added.

Source: Bernama

Liew: Govt to introduce new investment incentive framework in 3Q2025

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Penang can overcome challenges from tariff changes announced by United States President Donald Trump’s administration, according to Chief Minister Chow Kon Yeow.

He emphasised that Penang, which exports about 5.0 per cent of the world’s semiconductors, is closely monitoring developments from the US.

“Any new tariff policy will impact the multinational corporations (MNCs) operating in the state and therefore directly affect the state in terms of employment opportunities and investment potential for the future.

“However, I believe we are in a strong position to withstand any change in tariff and other trade policies because we have been deeply rooted for the past five decades to face such challenges,” Chow told a joint press conference with the Ambassador to the European Union (EU) to Malaysia, Rafael Daerr, here today.

The chief minister also said the state government’s commitment to positioning Penang as a hub for high-value manufacturing and technological innovation remains unwavering.

Chow highlighted that Penang is keen to forge stronger partnerships with the EU and address the challenges in the ever-shifting global semiconductor landscape.

“The state government through InvestPenang stands ready to provide a conducive environment for EU businesses to thrive, innovate, and contribute to Malaysia’s economic success,” he said.

Meanwhile, Daerr said the EU business community in Malaysia has a long-standing presence and Penang is strategically placed in the centre of the key focus area.

He said Penang is a prime location for high-tech and high-skill industries in Malaysia and has the strongest orientation towards international trade.

“This, in turn, has attracted numerous EU companies and investors, including in future-oriented sectors such as the electrical & electronics industry, medical products, precision engineering and equipment, and aviation.

“From 2019 to 2023, Penang secured nearly RM100 billion in approved manufacturing investments from the EU, accounting for 51 per cent of the state’s total approved manufacturing investments.

“During the same period, Penang exported RM140 billion worth of goods into the EU,” said Daerr.

The delegation of the EU to Malaysia, in partnership with the Penang state government, Eurocham Malaysia and InvestPenang hosted the “EU-Malaysia Business Day 2025: Penang in Focus” panel session today.

The one-day event is aimed at strengthening economic ties and fostering collaboration between European and Malaysian businesses.

Source: Bernama

Penang confident of withstanding impact of US tariff changes – Chow

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The government continues to identify new strategies to make Malaysia an attractive and competitive investment destination, said Prime Minister Datuk Seri Anwar Ibrahim.

He said among the initiatives that have attracted investors is the Johor-Singapore Special Economic Zone (JS-SEZ), which has received very positive feedback not only from Singapore but also from other countries.

“Furthermore, our plan with Thailand is to ensure that the northern states of Peninsular Malaysia, namely Perlis, Kedah, Kelantan, and Terengganu, alongside the four southern provinces of Thailand, are also being developed.

“We’ve had two meetings, and on Feb 18, I have another meeting to outline how this growth can be achieved,” he said during the Ministers’ Question Time in the Dewan Rakyat today.

Anwar was responding to a supplementary question from Syerleena Abdul Rashid (PH-Bukit Bendera), who asked about the government’s efforts and incentives in positioning Malaysia as an attractive and competitive investment destination.

Anwar said the incentive with Thailand is certainly different from JS-SEZ.

Apart from that, he said for Sarawak, the investment focus is on the energy hub for the Aseam region.

“As I mentioned in Parliament last week, one of Malaysia’s strategies is to integrate into the Asean framework by positioning Malaysia as one of the key hubs for the Asean Energy Grid, connecting Vietnam, Laos, Cambodia, Thailand, Malaysia, Singapore, all the way to Indonesia and the Philippines.

“And from Sarawak, it will be connected to Sabah, Kalimantan, and the Philippines,” he added.

He also said that Malaysia is taking steps to promote Forest City as a financial centre and to develop it as, for example, a single-family office scheme.

Source: Bernama

Govt identifies new strategies to maintain Malaysia’s investment competitiveness

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DeepSeek presents new opportunities for financial investors looking to support the next wave of artificial intelligence (AI)-driven businesses in Malaysia that go beyond just technology, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

DeepSeek is a Chinese AI company that has rapidly gained prominence for developing advanced AI language models and enterprise solutions.

“By lowering barriers to AI adoption, DeepSeek empowers small and medium enterprises (SMEs) to integrate AI solutions into their operations, increasing productivity and global competitiveness,” Fadillah said in his keynote address at the Pan-Pacific AI Forum Malaysia — Investment and AI in a Changing World, here on Thursday.

He emphasised that while technology is the engine of progress, capital is the fuel that drives it forward.

“Malaysia has long been a preferred destination for international investors and we are committed to strengthening our position as a global investment hub.

“Our digitalisation agenda has attracted major global tech giants, with Oracle, Microsoft, Google, and Amazon collectively committing US$14.7 billion in investments. These strategic partnerships are a testament to Malaysia’s potential as a leading digital economy in Southeast Asia,” Fadillah said.

The Pan-Pacific AI Forum Malaysia brings together governments, businesses, civil societies and leaders across agencies, businesses, and enterprises in the AI industry.

The forum discusses emerging markets, legal and policy issues, political and economic trends, emerging technologies, ICT user perspectives, and business opportunities in the global marketplace.

This year, it focuses on AI discussions and matters.

Source: Bernama

DeepSeek can drive AI adoption in Malaysia, attracting global investors — Fadillah

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Malaysia should capitalise its strong aerospace ecosystem and must maximise its potential to drive industry growth, said Investment, Trade, and Industry (MITI) deputy secretary-general (Industry), Datuk Hanafi Sakri.

He said the aerospace industry aims to increase its revenue to RM55 billion by 2030 from a revenue of around RM20-21 billion currently, noting that much more needs to be done to achieve this target.

“Malaysia has an advantage in terms of its comprehensive ecosystem, encompassing human resources, maintenance, repair, and overhaul (MRO), as well as engineering facilities. This is a strength which we must fully utilise,” he told Bernama after officiating the MyAERO TVET 2025 Symposium at the World Trade Centre Kuala Lumpur today.

He added that the government will continue to monitor the implementation and progress of these initiatives through dedicated committees and relevant agencies.

“Nothing in this country happens by chance. We plan strategically, set clear objectives, execute carefully, and track progress through agencies such as the National Aerospace Industry Corporation Malaysia,” he said.

Hanafi noted that Malaysia’s aerospace sector is experiencing rapid growth, driven by rising air traffic and a booming tourism industry.

“Just yesterday, the Sarawak state government announced its acquisition of MASwings, highlighting the growing opportunities in the sector.

“What we need now is the right platform to ensure all stakeholders can play their role in strengthening Malaysia’s aerospace ecosystem,” he added.

The MyAERO TVET 2025 Symposium aims to enhance workforce development in the aerospace industry through collaborations between the government, industry players, and educational institutions.

The event also saw the signing of several memoranda of understanding (MoUs) between the government and industry players to strengthen training programmes and advance aerospace technology development.

Source: Bernama

Malaysia must fully leverage its strong aerospace ecosystem – MITI

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PENANG has welcomed a major boost to its industrial landscape with the official opening of M.A.i Automation Technology Malaysia Sdn Bhd, the first production facility in Malaysia by M.A.i, a leading German specialist in customised automation solutions.

Strategically located in Jalan Jelawat, Seberang Jaya, the new facility strengthens M.A.i’s global footprint and enhances its presence in Southeast Asia.

With over 25 years of expertise spanning the automotive, medical, plastics, electronics, and new energy sectors, the company aims to leverage Penang’s robust infrastructure and skilled workforce to drive innovation.

Speaking at the launch ceremony, M.A.i Automation Technology Malaysia Sdn Bhd chief executive officer Andreas Forster described the expansion as a significant milestone in the company’s international growth strategy.

“This cutting-edge facility in Penang will serve as a regional hub for automation innovation and manufacturing excellence.

“Our engineering teams here will develop customised automation solutions while maintaining the high standards that have defined M.A.i since its founding in 1999,” Forster stated.

He added that the Penang facility will complement M.A.i’s German headquarters while extending its global reach, positioning the company at the forefront of automation advancements in Southeast Asia.

Forster highlighted that the decision to establish a presence in Penang was driven by its strategic location, well-developed infrastructure, and access to a pool of highly qualified professionals.

“The new branch will work closely with our German headquarters to leverage synergies and drive innovation, ensuring we continue delivering world-class automation solutions,” he said.

M.A.i chief executive officer Stefan Woldrich underscored the significance of the Malaysian expansion as part of the company’s broader strategy.

“Our headquarters in Kronach, Germany, remains the core of our innovations, strategic decisions, and production.

“We continuously invest in expanding and modernising our German operations, with further expansions planned,” he said.

He added that the new Malaysian facility would allow M.A.i to efficiently cater to the growing demand in Southeast Asia, further strengthening its worldwide network.

“This expansion enables us to enhance our global presence while capitalising on the strengths of all our locations,” Woldrich remarked.

Meanwhile, Malaysian Investment Development Authority (Mida) deputy chief executive officer Sivasuriyamoorthy Sundara Raja, who was also present, congratulated M.A.i on its new venture.

He emphasised how the company’s establishment aligns with Malaysia’s National Investment Aspirations (NIA).

“This milestone highlights Malaysia’s growing prominence in the global industrial sector.

“M.A.i’s decision to invest here reflects confidence in our economic direction and commitment to high-value job creation and sustainable growth,” he said.

Also present at the launch were Ambassador of the Federal Republic of Germany to Malaysia Dr Peter Blomeyer, Honorary Consular of the Federal Republic of Germany in Penang Datuk Hans Peter Brenner and Penang Mida director Muhammad Ghaddaffi Sardar Mohamed.

Source: Buletin Mutiara

German automation firm M.A.i opens first production facility in Penang

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TOA Paint Products Sdn Bhd, a regional player in the paint and coating industry, is ramping up its production capacity, with its Nilai, Negeri Sembilan, plant expected to produce up to two million gallons annually.

Country manager Thomas Lai said the expansion comes as the company seeks to meet increasing market demand while maintaining cost efficiency.

Despite rising raw material prices, he said, TOA Paint has committed to keeping prices stable throughout 2025, focusing on internal cost optimisations rather than passing the burden onto consumers.

“Our group treasury actively manages forex risks daily, ensuring that despite currency fluctuations in Southeast Asia, our overall product gross profit margin remains strong,” he told SunBiz following the launch of TOA Paint’s new product line recently.

Lai said TOA Paint is diversifying its product portfolio. “The company confirmed plans to introduce new products every year, potentially expanding into categories beyond paints and coatings, such as adhesives and industrial chemicals.”

TOA Paint has established itself as the market leader in Thailand and is now looking to expand its dominance across Southeast Asia, he said.

“With a strong presence in key regional markets, the company is strategically investing in innovation, sustainability and advanced manufacturing capabilities to strengthen its competitive edge. As demand for high-performance and eco-friendly coatings rises, TOA is well positioned to capture new growth opportunities,” he added.

Lai highlighted that sustainability remains a core focus for TOA Paint, which is making efforts to incorporate eco-friendly raw materials, reduce volatile organic compound emissions and improve energy efficiency across its operations.

“These initiatives align with global trends favouring greener construction materials and sustainable industrial practices.

“The company is also actively engaged in corporate social responsibility programmes, supporting local communities through skill development initiatives and education on environmentally responsible painting solutions,” he said.

Additionally, TOA Paint is expanding its offerings in marine coatings, a crucial segment in the shipping and offshore industries.

Lai said the company’s newly developed marine paint products are designed to reduce maintenance costs, enhance fuel efficiency and minimise environmental impact by lowering carbon emissions. “As stricter regulations drive demand for sustainable maritime solutions, TOA Paint’s innovations in this sector position it as a key player in the future of eco-conscious coatings.”

TOA Paint also focuses on educating consumers about proper marine paint applications, ensuring that users maximise the lifespan and effectiveness of their coatings, Lai disclosed.

“While our marine paint products are designed for a wide range of vessels, including fishing boats, yachts, and catamarans, many customers lack awareness of essential anti-fouling techniques. By providing guidance on correct application methods, TOA aims to enhance product performance, reduce maintenance costs, and support sustainable marine practices.”

Lai said TOA Paint’s localised research and development (R&D) teams provide a competitive edge over global brands, allowing the company to develop products that cater to regional climate conditions, customer preferences, and regulatory requirements. “By having R&D teams based in key markets across Southeast Asia, TOA can quickly adapt formulations to suit varying levels of humidity, temperature, and environmental factors that affect paint performance.”

In addition, the company’s deep understanding of local market dynamics allows it to outmanoeuvre global competitors, according to Lai.

He said competitors often rely on standardised formulations that may not be as effective in Southeast Asia’s diverse conditions.

“By continuing to invest in localised innovation, TOA strengthens its position as a dominant regional player while reinforcing its commitment to sustainability and performance-driven solutions,” Lai added.

Source: The Sun

TOA Paint ramping up production capacity while keeping prices stable

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Eight stock sectors are emerging as key beneficiaries of the Johor-Singapore Special Economic Zone (JS-SEZ), which launched in early January, aiming to strengthen economic cooperation and build synergy to attract global investments.

TA Research, which prepared a report following a visit to the state with institutional clients, said the initiatives would help lift Johor’s economy, especially in addressing the many issues that have plagued Iskandar Malaysia, including connectivity between the nine flagship zones identified under the JS-SEZ and connectivity between Johor and Singapore, among others.

The JS-SEZ largely corresponds to the area of Iskandar Malaysia, which was launched in November 2006. 

The research house has identified banking, construction, consumer, oil and gas, property, power and utilities, technology and telecommunications as the key stock beneficiaries of the JS-SEZ.

“Johor will benefit from the spillover effects of Singapore’s economy and investments,” it said, noting that the bilateral trade flow between Malaysia and Singapore underscored both countries’ interdependence.

While the two countries have cooperated to develop an economic zone in Johor since the launch of Iskandar Malaysia, TA Research said the state needs aggressive incentives, promotion, a talent pool and sound infrastructure to attract investments and achieve the state government’s gross domestic product (GDP) target of RM260bil by 2030, up from RM148.2bil in 2023.

According to the Malaysian Investment Development Authority, between 2006 and December 2023, Iskandar Malaysia received a total cumulative investment of RM413.1bil, surpassing the RM383bil target set for the end of 2025.

Out of this, RM291.4bil, or 70%, has been realised. It is expected to attract RM636bil in committed investments by 2030. 

“The JS-SEZ does not come with any financial targets but initiatives outlined under this economic zone are expected to complement the goals set for Iskandar Malaysia,” it said.

The JS-SEZ aims to increase economic complexity, promote digital vibrancy and technology adoption and achieve net-zero aspirations.

The value of investments stemming from these initiatives is expected to correspond with the enhanced requirements and help achieve the goals set.

Under the JS-SEZ’s identified economic sectors (manufacturing, logistics, food security, tourism, energy, digital economy, green economy, financial services, business services, education and health), aerospace, electrical and electronics, chemical, medical devices and pharmaceuticals were identified at the launch as top priority industries.

TA Research said Johor plays a crucial role in Malaysia’s economic landscape with its diverse economic base including manufacturing, agriculture, tourism and services.

“The inclusion of financial services as a key sector within the JS-SEZ is particularly important, as it will help elevate Johor’s role in Malaysia’s broader economic landscape.

“By creating a business environment conducive to the growth of finance technology, digital banking and other financial services, the zone could become a major regional financial centre, complementing Singapore’s dominance in this area,” it said.

It pointed out that the JS-SEZ may even rival the Klang Valley, given that Johor’s economic growth by GDP outpaced the national economy in 2023.

“We anticipate that this growth target will be revised upward in the 13th Malaysia Plan (due in July 2025), as Johor Mentri Besar Datuk Onn Hafiz Ghazi remains optimistic about the state’s development trajectory,” it added.

Source: The Star

JS-SEZ expected to spur growth in eight sectors

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Despite facing geopolitical challenges, Malaysia can still attract more foreign investments, especially from companies in countries affected by US trade policies, according to the Malaysia Investment Development Authority (MIDA).

Deputy chief executive officer (investment development) Zalina Zainol said the risk of negative impact on Malaysia’s export performance, particularly semiconductors, is minimal because the tariff hikes by the US do not directly involve Malaysia. However, she warned that additional tariffs on all global imports could lead to increased prices and production costs for Malaysia’s exports to the United States.

“This development could disrupt the supply chain and eventually affect the competitiveness of certain products or industries,” she said during a discussion session titled “Trump and the World: Implications for Malaysia,” at Universiti Kebangsaan Malaysia (UKM) here today.

Zalina noted that during a recent parliamentary session, the Minister of Investment, Trade, and Industry, Tengku Datuk Seri Zafrul Abdul Aziz, emphasised that the government is proactively working to maintain and strengthen trade and investment relations with the US. “This effort is crucial to ensure that Malaysia is not subjected to tariff increases, as seen with China, Canada, and Mexico. The tariffs imposed on these countries stem from issues beyond trade and investment,” she said.

She added that Malaysia’s open economy exposes the country to global uncertainties arising from geopolitical tensions and changes in US policies.

The United States has been Malaysia’s third largest trading partner since 2015, with 13.2 per cent of Malaysia’s total exports last year going there.

Among Malaysia’s key exports to the US are electrical and electronics (E&E) products, machinery and equipment, and rubber products. In 2024, E&E products accounted for 40 per cent of Malaysia’s total exports, with 64 per cent being semiconductors.

Zalina highlighted that the US is among the top three destinations for Malaysia’s semiconductor exports, alongside China and Singapore. “This highlights the importance of the bilateral relationship between Malaysia and the US for the country’s economic growth,” she said.

Source: Bernama

Malaysia can increase foreign investor appeal despite US policy challenge: MIDA

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NCT Group of Companies has signed a Memorandum of Understanding (MOU) with OM Charge Sdn Bhd to establish electric vehicle (EV) charging infrastructure at NCT Smart Industrial Park (NSIP) in Sepang, Selangor.

Under the MOU, OM Charge will provide customised EV charging solutions tailored to NSIP’s operational and environmental needs. The initiative includes the deployment of a network of chargers to serve tenants, workers and visitors, ensuring seamless access to EV charging facilities.

“Our collaboration with OM Charge marks an important step in advancing our vision of NSIP as a beacon of sustainable industrial innovation. By integrating an advanced EV infrastructure, we are creating an ecosystem where technology, efficiency, and sustainability converge,” said NCT Group founder and group managing director Datuk Seri Yap Ngan Choy in a press statement issued on Wednesday.

Beyond infrastructure development, the partnership also involves expertise-sharing and strategic planning to integrate EV solutions into NSIP’s smart systems. This collaboration aligns with NSIP’s vision of fostering a future-ready, tech-driven industrial ecosystem while supporting Malaysia’s broader sustainability goals.

Meanwhile, OM Charge CEO Moses Ong Leng Keong said the partnership is an opportunity to redefine sustainability and green technology adoption in industrial parks. “Together, we are laying the foundation for an industrial ecosystem that not only meets the demands of today but is also prepared for the challenges of tomorrow, creating lasting value for businesses and communities.”

Located within the Integrated Development Region in South Selangor (IDRISS), NSIP is designed to be a leading industrial hub, integrating smart technologies and green solutions to meet evolving industry needs. The master developer aims to set the standard of NSIP as Malaysia’s first tech-centric industrial park with a zero-emissions target by 2050.

Source: The Edge Malaysia

NCT Group partners OM Charge for EV charging project at NCT Smart Industrial Park

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IJM Corp Bhd, through its joint-venture (JV) company Exio Logistics Sdn Bhd, will invest RM460 million in a new logistics hub in Sungai Buloh to support Malaysia’s supply chain and e-commerce.

The business will provide IJM Corp with recurring income once operations commence in the first quarter of 2027, said its chief executive officer Datuk Lee Chun Fai. The recurring income will help IJM Corp balance the cyclical nature of its main businesses in construction and property development, he noted.

“Regardless of the economic environment, or the government’s fiscal position, this business will continue to operate,” said Lee. “Our goal is to generate at least a third of our income from recurring sources.”

Lee was speaking to The Edge on the sidelines of the groundbreaking ceremony for Exio’s logistics hub in the City of Elmina. Exio Logistics is a JV between IJM’s wholly owned subsidiary IJM RE Sdn Bhd and FMM Elmina Sdn Bhd.

Spanning 22 acres, the hub will be fully leased to Storio Sdn Bhd, which will operate the facility as its master tenant.

Storio is owned by the shareholders of FMM Elmina: Tan Sri Teo Chiang Hong of Bandar Utama City Corp Sdn Bhd, Datuk Michael Tang of Mettiz Capital Sdn Bhd, and Choong Kar Weng of Minlon Sdn Bhd.

The facility, comprising two logistics hubs with a combined 500,000 square feet of floor space, features an advanced automated storage and retrieval system that could handle 117,000 pallet positions, with a throughput capacity of 240 pallets per hour.

The investment in the logistics hub is in line with IJM’s long-term strategy to diversify into high-growth sectors and capitalise on the increasing demand for modern, technology-driven logistics services, said Lee.

IJM plans to expand further in the logistics sector, but with varied models to avoid internal competition, he said. “For instance, this facility in Elmina is automated, while our other investment in Shah Alam focuses on a conventional cold room warehouse.”

In addition to Exio Logistics, IJM has also invested in Global Vision Logistics Sdn Bhd, developing the six-million-square-foot Shah Alam International Logistics Hub.

Smooth trade flows

Transport Minister Anthony Loke Siew Fook, who officiated the event, highlighted that facilities like Exio’s hub will be instrumental in streamlining trade flows and alleviating supply chain bottlenecks.

The logistics hub boasts connectivity to Port Klang, Kuala Lumpur International Airport, and major transport networks. Exio’s hub will strengthen Malaysia’s role as a logistics gateway in the region, while supporting the expansion of trade routes with Asean partners, he said.

“With the recent Malaysia-Singapore Johor Special Economic Zone (SEZ) announcement, we are seeing increased opportunities for cross-border logistics and investment,” Loke said. “Exio’s logistics hub is an example of how the private sector plays a crucial role in advancing national logistics capabilities.”

Source: The Edge Malaysia

IJM to invest RM460m in new logistics hub in City of Elmina, eyes boost in recurring income

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The Malaysian Investment Development Authority (Mida) and BEYOND4 Sdn Bhd have inked a Memorandum of Understanding (MOU) to support high-growth small and medium enterprises (SMEs).

In a statement on Wednesday, Mida said the partnership also aims to strengthen domestic talent development across Malaysia, in alignment with the country’s aspiration to become a hub for digital innovation and entrepreneurial growth.

This strategic partnership will focus on empowering local companies to transition to tech-driven models, fostering business expansion and developing a skilled workforce for the future economy.

Mida chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the partnership is a direct response to the need for critical support structures that enable start-ups to grow into micro, small, and medium enterprises (MSMEs).

It also aims to bridge the technology gaps for SMEs, allowing them to expand beyond Malaysia and thrive in an increasingly competitive global market, he highlighted.

“MIDA has taken a proactive role in supporting SMEs growth and facilitating access to funding, technology, and research capability through our Domestic Investment Coordination Platform, while also strengthening industry linkages to help them scale up and stay competitive,” Sikh Shamsul said.

The agency noted that the partnership with BEYOND4, a multi-tier ecosystem accelerator, is a key component of its broader strategy to empower local companies to move up the value chain in line with the New Industrial Master Plan (NIMP) 2030.

It stated that Mida and BEYOND4 will leverage resources and expertise to provide comprehensive support across several key areas, including access to financial assistance and incentives, facilitated partnerships and collaborations with multinational corporations (MNCs) and research institutions.

Additionally, the collaboration will focus on capacity building, skills development, infrastructure to enhance digital connectivity, and ongoing policy advocacy and regulatory streamlining.

“This partnership will also help improve access to international markets, creating new opportunities for businesses and entrepreneurs alike,” said Mida.

Most importantly, the initiative will lead to the creation of high-value jobs for locals, empowering individuals and communities while reinforcing substantial economic impact and resilience through increased foreign and domestic investments, it added.

Source: Bernama

MIDA, BEYOND4 forge partnership to support high-growth SMEs

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Malaysia and Turkiye have acknowledged the Malaysia-Turkiye Free Trade Agreement (MTFTA), which has been in force since 2015.

In a joint statement today, Prime Minister Datuk Seri Anwar Ibrahim and Turkish President Recep Tayyip Erdoğan expressed their satisfaction with the expansion of the MTFTA in 2024 to include trade in services, investment and e-commerce.

Both leaders reaffirmed their commitment to the full operationalisation of the Trade Preferential System among the Member States of the Organisation of Islamic Cooperation (TPS-OIC) and D-8 Preferential Trade Agreement (D-8 PTA) and agreed to cooperate for the enhancement of these agreements.

In recognising the critical role of the private sector in advancing economic ties, Anwar and Erdogan have expressed their full support for greater business-to-business collaboration to expand trade and investment opportunities.

They welcomed the mutual readiness to establish a Joint Business Council between the National Chamber of Commerce and Industry of Malaysia and the Foreign Economic Relations Board (Dış Ekonomik İlişkiler Kurulu) of Turkiye to enhance commercial exchanges and unlock new opportunities for sustainable economic cooperation.

The two leaders expressed their steadfast commitment to advancing partnerships and enhancing economic development cooperation under the Developing Eight Organisation for Economic Cooperation (D-8) and welcomed Azerbaijan’s accession to the D-8.

Erdoğan is on a two-day official visit to Malaysia beginning yesterday at Anwar’s invitation.

During the visit, he held extensive talks with Anwar on deepening bilateral relations, as well as exchanged views on current regional and international issues.

Source: Bernama

Malaysia, Turkiye acknowledge MTFTA, its 2024 expansion

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Sarawak is scaling up its commercial green hydrogen production by leveraging on its abundant hydropower resources to meet Asia’s growing demand for clean fuel, Sarawak Premier Tan Sri Abang Johari Tun Openg said.

He said the state’s partnership with Japan, South Korea and China had expanded Sarawak’s hydrogen supply chain to position itself as a leader in the Asia-Pacific green hydrogen economy, while integrating Carbon Capture Utilisation and Storage (CCUS) to unlock new low-carbon economic opportunities.

“We will continue engaging with global stakeholders to grow low-carbon industries, develop sustainable infrastructure and drive innovation in clean energy solutions,” he said when delivering a lecture at the Institute of Southeast Asian Studies (ISEAS) — Yusuf Ishak Institute in Singapore on Monday.

According to him, Sarawak’s goal is to boost electricity generation capacity to 10 Gigawatts (GW) by 2030 and 15GW by 2035, to strengthen its position as a green energy powerhouse in Asean to support industries, advance green technologies and enable regional electricity exports.

“Sarawak aims to be the battery of Asean by supplying clean energy and enhancing cross-border interconnectivity. Through the Asean Power Grid initiative, we are strengthening regional energy security while exploring storage solutions to optimise supply and distribution,” he said.

In his lecture entitled ‘Envisioning a Low-Carbon Future: Sarawak’s Journey Towards Sustainable Development’, Abang Johari said strong policies had driven Sarawak further into sustainable development, in addition to community engagement and global collaborations.

He said that in 2021, the state government laid down the Post Covid-19 Development Strategy (PCDS) 2030 which served as a roadmap for Sarawak to achieve prosperity, inclusivity and environmental sustainability in five years.

“At the midpoint of PCDS 2030, we are already seeing results, reflecting Sarawak’s ability to turn strategy into action. One of our most significant milestones is surpassing the World Bank’s high-income threshold ahead of schedule, reinforcing Sarawak’s position as an economic hub for trade and investment,” he said.

Sarawak had also introduced bold policy reforms, including the enforcement of a Land (Carbon Storage) Rules 2022 for CCUS, as well as the Natural Resources and Environment Ordinance 2024 to enhance resource governance.

“While policy reforms set the direction, their true impact lies in implementation. Sarawak is now putting these policies into action, accelerating industrial decarbonisation and advancing green innovation for a sustainable future,” he added.

Source: Bernama

Sarawak scales up commercial green hydrogen production — Abang Johari

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Malaysia’s industrial sector is poised to maintain positive momentum in the near term, underpinned by resilient domestic demand and a gradual easing of supply chain constraints, said Public Investment Bank Bhd (PIBB).

In a note today, PIBB opined that downside risks to external demand remain pronounced, particularly in the second half of 2025 (2H 2025), as subdued global growth and persistent geopolitical uncertainties could dampen export-oriented industries.

“That said, sustained private consumption, targeted fiscal support for investment, and a measured recovery in key trading partners could provide some offsetting support to mitigate external pressures,” it said.

Kenanga Investment Bank Bhd (Kenanga IB) said the manufacturing index is expected to expand by 4.7% in 2025 compared with 4.4% in 2024.

“Growth momentum of manufacturing to continue in 1H 2025, supported by a low base effect from the early part of 2024, the ongoing tech upcycle, and strong domestic demand, backed by a steady labour market and record-high government spending under Budget 2025.

“We also believe Malaysia could benefit from a renewed trade war as Trump’s policy shift may drive trade and investment diversion,” it said.

Kenanga IB maintained Malaysia’s Q4 2024 gross domestic product (GDP) growth forecast at 4.6%, reflecting a second consecutive quarter of moderation weighed mainly by slower manufacturing expansion.

“That said, 2024 GDP growth is likely to settle at 5% and is projected to moderate to 4.8% in 2025,” it said.

CIMB Securities Sdn Bhd forecast 5% GDP growth for 2025.

“Given the softness of the 4Q 2024 industrial data, we expect GDP growth to come in at 5.1% for 2024, slightly missing our earlier estimate of 5.2%.

“For 2025, a sustained external demand recovery fuelled by the global tech upcycle, alongside strong investments and resilient consumer spending, is anticipated to sustain GDP growth at 5%, consistent with the government’s target of 4.5% to 5.5%.

“Nevertheless, downside risks remain elevated owing to uncertainties about a potential global trade war escalation, which may heighten global inflationary pressures, prompting central banks to adopt a more cautious approach to rate cuts, potentially dampening growth prospects,” it added.

Source: Bernama

Malaysia’s industrial sector to maintain momentum in the near term: Analysts

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The Malaysian government’s meeting with United Kingdom (UK)-based technology company Arm Ltd today proves that clear policies such as the National Semiconductor Strategy, along with the country’s other advantages, continue to make Malaysia a prime destination for foreign investment, said Prime Minister Datuk Seri Anwar Ibrahim.

In a Facebook post, he said that during his meeting with Arm executive vice president and chief commercial officer Will Abbey, accompanied by Economy Minister Datuk Seri Rafizi Ramli, they exchanged views on the direction of computing technology to help Malaysia strengthen its position as a hub especially in relation to the semiconductor and data centre ecosystem.

“Arm Ltd, a UK-based company, is a global leader in central processing unit (CPU) technology and focuses on building the future of global computing.

“The company also acts as an architect, developing and licensing high-performance, low-cost, and energy-efficient intellectual property solutions,” he added.

Source: NST

Malaysia continues to attract foreign investment due to clear policies – Anwar

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Malaysia and Turkiye need to collaborate in various sectors, including semiconductors, agri-commodities, electrical and electronics (E&E) as well as food and beverages (F&B) to achieve the US$10 billion (RM44.68 billion) bilateral trade target, said Prime Minister Datuk Seri Anwar Ibrahim.

Yesterday, Turkish President Recep Tayyip Erdoğan, who is on a two-day official visit to Malaysia at Anwar’s invitation, said Turkiye aimed to double its trade with Malaysia to US$10 billion after surpassing the US$5 billion (RM22.34 billion) mark in 2024.

In response, Anwar acknowledged that while the target is ambitious, he believes Malaysia can facilitate Turkiye in achieving it.

“There is no reason why developing or emerging economies like Malaysia and Turkiye cannot increase their intra-trade.

“We therefore need to work in various fields, such as semiconductors, agri-commodities, E&E and F&B,” he said, also emphasising the importance of cooperation in the defence sector and technology exchange.

Anwar was speaking at a joint press conference with Erdoğan, which was broadcast live today.

He called for continued collaboration with Turkiye in sectors like energy, particularly with state-owned oil and gas company Petroliam Nasional Bhd (Petronas) and related firms, halal industries, healthcare, digital technology, and disaster management.

Anwar also praised Turkiye’s successful transformation of its airline and airport management, urging the sharing of its best practices.

Meanwhile, Erdoğan said his recent discussions with Anwar had examined opportunities for cooperation in various fields such as industry and technology, energy, tourism and commerce, as well as culture and education,

“And we have focused extensively on concrete steps to be taken forward,” he said.

Erdoğan added that Turkiye was determined to sustain its momentum in the defence industry through technology transfer and joint manufacturing, and its companies are ready to share their expertise and products with Malaysia for mutual benefit.

On the US$10 billion trade target with Malaysia — Turkiye’s largest trading partner in Asean — he hopes the upcoming Business Forum will serve as an opportunity to unveil new cooperation models and investment projects.

Source: Bernama

Malaysia, Turkiye should collaborate in key sectors to achieve US$10 bln trade target — PM

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Hong Leong Investment Bank (HLIB) Research is positively surprised about the country’s large scale solar 6 (LSS6) programme, which is expected to be open for bidding in the second quarter of this year (2Q25).

The research house is expecting to see between RM15bil and RM18bil worth of solar engineering, procurement, construction and commissioning (EPCC) contracts to be formalised over the next 24 months.

This is assuming the LSS6 is of similar size to LSS5 and the recent 2GW LSS5+ announcement by the Energy Transition and Water Transformation Ministry (Petra).

“There are no details on its quota yet, but we think LSS5 (2GW) and LSS5+ (2GW) could be a reasonable indication,” HLIB Research said.

It added that cumulative quotas from just LSS5 and LSS5+ of 4GW is about 28% larger than total quotas awarded from LSS1 to LSS4 programmes and Corporate Green Power Programme.

The research house said the upcoming transmission and distribution upgrades during regulatory period 4 (2025 to 2027) – enabled by record allowable capital expenditure of RM42.8bil – should prepare the grid for new renewable energy (RE) capacity.

Petra announced new RE programmes last Friday to further accelerate developments, including a Community Renewable Energy Aggregation Mechanism which will enable home owners to lease rooftop spaces to third parties (RE developers), creating additional income streams.

“Guidelines are being finalised and we think take-up will rest on potentially critical parameters such as System Access Charge rates and storage requirements, if any. Difficulties on aggregation will also pose a challenge to developers,” HLIB Research added.

It said the second round of bidding for battery energy storage system development is slated for 3Q25, following the first bidding in November last year.

The research house maintained its “overweight” rating on the sector, with “buy” calls for Solarvest Holdings Bhd, target price (TP) of RM2 per share, and Samaiden Group Bhd (TP: RM1.44).

“Both stocks under coverage, Solarvest and Samaiden, are major beneficiaries from an extended upcycle.

“We flag upside risks to our longer dated earnings forecasts from this development,” it said.

Similarly, Phillip Capital Research has maintained its “overweight” stance on the sector, underpinned by ongoing national energy transition initiatives and a strong contract pipeline driving robust activity.

“Government-led green initiatives and growing RE demand is set to benefit companies like BM Greentech Bhd (“buy”; TP: RM2.65), Solarvest (“buy”; TP: RM2), and Pekat Group Bhd (“buy”; TP: RM1.15),” the research house said.

It pointed out that Pekat should see limited upside from the current levels, having surged some 29% over the past three months, driven by optimism on EPE Switchgear (M) Sdn Bhd synergies.

Last August, Pekat announced the acquisition of a 60% stake in the Nilai-based switchgear manufacturer RM96mil.

In addition, Phillip Capital Research expects power utility infrastructure engineering companies such as MN Holdings Bhd and CBH Engineering Holding Bhd, which offer interconnection solutions, to gain from the expansion of RE programmes, which support solar EPCC contractors.

The research house said key risks included government RE policy changes, project execution delays, intense market competition and volatility in solar module prices amidst the ongoing supply chain capacity consolidation.

Source: The Star

Solar sector set for RM18bil boost

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Malaysia’s manufacturing sector is well-positioned to benefit from robust investment activities and resilient external demand, according to RHB Investment Bank Bhd.

Economist Chin Yee Sian highlighted that the sector’s positive outlook is driven by the strength of export-oriented industries and solid trade performance, contingent on favourable global economic conditions.

“This trend is further supported by continued strength in the global technology cycle and significant growth in global semiconductor sales.

“For 2025, global semiconductor sales are projected to grow by 11.2 per cent, following an estimated growth of 19 per cent in 2024,” she said in a note.

However, Chin cautioned that US protectionist policies could impact trade performance and the manufacturing sector in 2025.

She said rising protectionism and the potential escalation of trade tensions among major economies create uncertainty in the growth and export outlook.

This is due to the an abundance of uncertainties over tariff policies and the subsequent impact on global supply chains and inflation.

“While Malaysia’s export sectors are unlikely to be directly impacted by US protectionism (due to the low US trade deficit with Malaysia), the spillover through major trade partners, such as China, as well

as a potential slowdown in regional demand, could be substantial—especially in electrical and electronics (E&E) sector,” she said.

Chin added that a return to protectionist policies could escalate US-China tensions, affecting Malaysia’s role in China-centric supply chains.

To mitigate risks, she said Malaysia may strengthen ties with trade blocs like Regional Comprehensive Economic Partnership (RCEP), BRICS and Asean, while its domestic economic strength could help buffer external shocks.

In the medium term, she said Malaysia might potentially benefit from China’s efforts to reroute its manufacturing and export operations, given its significant role as an E&E exporter.

Despite short-term volatility, industrial production index (IPI) grew 4.6 per cent in December with strong manufacturing sector output.

Chin said the Malaysia’s gross domestic product growth is expected to sustain at 4.8 per cent in the fourth quarter of 2024, which will be announced on Feb 14.

Source: NST

Local manufacturers to gain from robust investment activities, rising demand

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Malaysia’s proposed high-speed rail (HSR) project could play a crucial role in the success of the Johor-Singapore Special Economic Zone (JS-SEZ), according to a market insider.

The insider said that improved connectivity between Kuala Lumpur and Johor would offer significant advantages, including enhanced labour mobility, which could drive social benefits through increased job opportunities for Malaysians.

Although the JS-SEZ is hailed as a “gamechanger,” he expressed concerns that without the HSR, the zone could disproportionately benefit Singapore, creating an unbalanced economic ecosystem.

“Without the HSR, the JS-SEZ risks shifting the regional economic focus towards Johor and Singapore, limiting Kuala Lumpur’s potential to emerge as a truly global city,” he told Business Times.

He cautioned that while Kuala Lumpur would remain a key domestic hub, its regional and international competitiveness could be compromised.

Covering 3,505 square kilometres in Johor, the JS-SEZ encompasses strategic areas such as the Iskandar Development Region, Forest City Special Financial Zone, and the Pengerang Integrated Petroleum Complex (PIPC). It features business-friendly initiatives, including simplified procedures for Singaporean firms to establish operations in Johor, passport-free checkpoint clearances, and digitised cargo management systems.

The JS-SEZ is expected to create over 20,000 skilled jobs and attract high-value investments in sectors like manufacturing, logistics, digital industries, healthcare, and education.

“This will lead to an increase in road users over time, eventually resulting in congestion. In the absence of the HSR, Malaysia will need to invest heavily in alternative infrastructure and strategic initiatives to strengthen Kuala Lumpur’s global standing and offset these challenges,” he added.

Wan Agyl Wan Hassan, founder and chief executive officer of MY Mobility Vision Sdn Bhd, said that reducing travel time between key economic hubs—Kuala Lumpur, Johor, and Singapore—would significantly boost productivity and stimulate the development of regional economic clusters.

Without the implementation of the HSR, travel times along the North South Expressway are expected to rise due to increased economic activity and population growth driven by the JS-SEZ.

To address this, alternative measures such as upgrading public transport, enhancing road infrastructure, and introducing traffic management strategies may be required. However, these solutions are unlikely to fully match the efficiency and benefits offered by a HSR system.

“We’re talking about the potential to attract FDIs, create dynamic business districts, and enhance our tourism appeal. However, the real challenge is ensuring that we adapt best practices. Just think of Japan’s Shinkansen or China’s HSR in our unique local context, not just replicating a foreign model,” he told Business Times.

Wan Agyl cautioned that failing to invest in HSR infrastructure could put Malaysia at a competitive disadvantage in the region.

“In my view, if we don’t invest in HSR, we risk falling behind our neighbours on several fronts. Modern HSR systems not only speed up travel but also create economic hotspots around station hubs, attracting investment and driving trade efficiencies.

“Without such infrastructure, Malaysia might be seen as less competitive, making it harder to attract both domestic and foreign investors. For tourism, reliable and fast connectivity is increasingly a deciding factor for travellers. The lack of HSR could therefore mean missing out on substantial economic spillover benefits and a diminished role in a rapidly modernising region,” he said.

HSR ‘revival’

Hailed as a “marquee project,” the Kuala Lumpur-Singapore HSR is envisioned as a strategic development aimed at reducing travel time between the two countries to just 90 minutes.

The HSR, which was initially proposed 23 years ago by YTL Group, is planned as a 350 km double-track route with eight stations. Johor will feature the longest stretch of the alignment, covering 182 km out of Malaysia’s total 328 km, with stations expected in Muar, Batu Pahat, Iskandar Puteri, and potentially Forest City.

Johor will also host two key maintenance facilities: a main depot north of the Iskandar Puteri station for general HSR train upkeep and a heavy maintenance base near Muar station responsible for maintaining the track, power supply, and signalling systems.

The project resulted in a legally binding agreement signed in December 2016, with the aim of having the line operational by 2026.

However, it was put on the back burner following several delays at Malaysia’s request and the eventual lapsing of an agreement in December 2020.

Malaysia paid more than S$102 million in compensation to Singapore for the project’s termination.

The Malaysian and Singaporean governments last year agreed to revive the mega rail project.

The project is nearing fruition, with three consortiums reportedly shortlisted: YTL Construction Sdn Bhd-SIPP Rail Sdn Bhd, Berjaya Rail Sdn Bhd-Keretapi Tanah Melayu Bhd-IJM Construction Sdn Bhd, and a Chinese consortium led by state-owned China Railway Construction.

Doris Liew, economist and assistant research manager at the Institute for Democracy and Economic Affairs (IDEAS), suggested that a well-structured public-private partnership (PPP) would be the best approach to ensure the project’s long-term viability and sustainability.

Relying solely on private initiatives for such a large-scale project is risky due to the significant investments involved.

A robust PPP model can balance financial sustainability with public value, Liew told Bernama.

She noted that the success of the HSR project would also depend on the financial resilience of private sector partners involved.

Emphasis on balanced planning

The revived Kuala Lumpur-Singapore High-Speed Rail (HSR) project is projected to cost around RM70 billion, marking a significant reduction of 30 to 35 percent from the previously estimated RM110 billion, according to market insiders.

This revised figure factors in the updated railway alignment within Malaysia, along with adjustments in the number of stations and trains required for the project.

Wan Agyl noted that while project delays often lead to cost escalations due to inflation, rising land prices, and technological advancements, the notion of a “do now or never” approach oversimplifies the complexity involved.

“Rushing into a project without solid feasibility studies since we need a new study due to the many years of delay, clear political consensus, and secured financing can lead to even more serious cost overruns and execution failures. Instead, we need to fast-track essential preparatory work. In other words, we must strike a balance between urgency and due diligence so that when we move forward, we do so on rock-solid ground,” he said.

Despite both Malaysia and Singapore signalling readiness to move forward with the project this year, construction may not begin for at least another two years.

“The fact that we haven’t yet secured a formal commitment from Singapore and haven’t even kicked off discussions on our side should be seen as a sign of prudence rather than reluctance. Both nations need to ensure that all technical, financial, and political details are ironed out before making any binding commitments via bilateral agreement.

“For cross-border projects of this scale, aligning differing regulatory and operational standards is a lengthy process. This cautious approach allows us to conduct deeper feasibility studies and stakeholder consultations. It’s not a rejection of the project but a necessary phase to build a robust, mutually beneficial framework. We have done it before and I believe it’s not a big issue for us to go through the process again,” he said.

Wan Agyl explained that this projected timeline reflects deeper structural challenges beyond bureaucratic delays.

“Firstly, comprehensive feasibility studies are needed to tailor the project to our local realities, ensuring that environmental, economic, and social impacts are fully understood. Then there’s the issue of political and bureaucratic inertia. Malaysia has seen large projects stall due to shifting priorities and slow decision-making,” he said.

He further emphasised the complexity of cross-border collaboration with Singapore, highlighting the need to align technical standards, regulatory frameworks, and financial structures.

“These delays, while frustrating, are critical to laying a sustainable and accountable foundation,” he said.

Wan Agyl said that an operational HSR could be a catalyst for growth across multiple sectors.

Shorter travel times would streamline business interactions and foster the creation of new economic corridors, making Malaysia a magnet for both domestic and international investors, he said.

“For tourism, HSR would offer an attractive, efficient way for visitors to experience our rich culture and landscapes, spurring growth in hospitality, retail, and services. Moreover, HSR stations can serve as nuclei for urban renewal and transit oriented development, spurring smart city initiatives and sustainable development.

“In short, HSR isn’t just a transport project; it’s an economic corridor development and an integrated strategy for national economic development,” he said.

Source: NST

Kuala Lumpur-Singapore high-speed rail will complement JS-SEZ

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