Both parties have signed an MOU that extends DHL Express’ role in attracting multinational companies to Malaysia

Kuala Lumpur, 30 March 2023 – DHL Express, the world’s leading international express service provider, and the Malaysian Investment Development Authority (MIDA) have entered into a Memorandum of Understanding (MOU), to strengthen the country’s position as ideal destination for foreign direct investment (FDI). The partnership aims to further consolidate the contribution of the supply chain industry toward national economic growth.

The agreement builds on a longstanding partnership, leveraging DHL Express’ global network and local expertise to attract multinational companies to enter and expand in Malaysia. Both parties are set to intensify joint efforts to drive overseas inflows of capital, infrastructure, and knowledge to develop key priority sectors. These include electrical and electronics, pharmaceutical, digital economy, aerospace, and chemicals.

The MOU was formalised today by Sivasuriyamoorthy Sundara Raja, Deputy Chief Executive Officer of Investment Promotion and Facilitation of MIDA, and Julian Neo, Managing Director of DHL Express Malaysia and Brunei. YBhg. Tan Sri Dato’ Seri Dr. Sulaiman Mahbob, Chairman of MIDA was also present as the witness of the ceremony.

In 2022, Malaysia recorded approved investments totalling RM264.6 billion (USD59.9 billion), from 4,454 projects, and creating 140,370 job opportunities. The services sector represented the largest chunk of total approved investments with RM154 billion (USD34.8 billion), followed by RM84.3 billion (USD19.1 billion) in the manufacturing sector. Notably, Foreign Direct Investment (FDI) was the major contributor to the total approved investments at 61.7% or RM163.3 billion (USD36.9 billion), while Domestic Direct Investment (DDI) contributed 38.3% or RM101.3 billion (USD23 billion); proving that Malaysia continues to inspire confidence and remains a preferred destination for global investors seeking stable, long-term opportunities.

YBhg. Tan Sri Dato’ Seri Dr. Sulaiman Mahbob, Chairman of MIDA, noted the heightened investor confidence in Malaysia while welcoming MIDA and DHL Express’ renewed partnership.

In his welcoming speech, he stated, “Despite the unexpected challenges that our initial formalised MOU in 2019 encountered with the advent of the COVID-19 pandemic, today’s signing ceremony reaffirms our commitment to strengthening the robust partnership between MIDA and DHL Express Malaysia. With this new agreement, we are confident that Malaysia will continue to shine brightly as the preferred investment destination for global investors, further solidifying our nation’s position as a beacon of stability, progress and prosperity in the region and beyond.”

“Our stakeholders can also look out for more focused, specific seminars on targeted industries, particularly in key sectors such as green technology, oil and energy, manufacturing, aerospace, e-commerce, as well as global and regional distribution centres. We are hopeful that this strong private and public partnership will help solidify our investors’ confidence and broaden business opportunities. Essentially, ensuring that there is a continuous sustainable stream of quality investment activities in the country in line with our nation’s New Investment Policy.” he added.

Indeed, Malaysia is well ahead of its peers in terms of the depth of its globalisation. According to the latest DHL Global Connectedness Index 2022—a study on the flow of trade, people, capital, and information worldwide—Malaysia ranks second (2^nd) in Trade Connectivity in Southeast Asia, and 14th out of 171 economies globally. Malaysia is also among the top ten with the largest connectedness improvements over the data period of 2001 to 2021.

“DHL Express’ growth is very much tied to Malaysia’s own since establishing our roots here 50 years ago,” said Julian Neo. “Through our shared history, we experienced a strong economy that has become the fifth largest in ASEAN. The MOU with MIDA reaffirms our collaborative relationship to facilitate the rising investment interest. With presence that spans 220 countries and territories, DHL Express is well equipped to support companies looking to diversify their supply chains in Malaysia.”

DHL Express Malaysia operates a robust aviation and ground network encompassing six gateways, 21 service centers, 185 retail points of sale, more than 300 vehicles, over 60 weekly flights, four dedicated aircrafts, and more than 1,500 employees to ensure comprehensive service coverage.

-ENDS-

About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn, TikTok and YouTube.

About DHL – The Logistics Company for the World

DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 395,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as “The logistics company for the world”.

DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 94 billion euros in 2022. With sustainable business practices and a commitment to society and the environment, the Group makes a positive contribution to the world. Deutsche Post DHL Group aims to achieve net-zero emissions logistics by 2050.

For media enquiries, please contact:

MIDA
Mr. Faizal Jalaludin
Director, Foreign Investment Division, MIDA
T: +603-2267 6650
E: [email protected]

DHL Express Malaysia
Tristan Toh
Corporate Communications, Brand, and Sustainability
T: +6012 719 2021
E: [email protected]
Website: dhl.com.my
Facebook: DHL Express Malaysia
Twitter: @DhlExpressMY
Instagram: @dhlexpressmalaysia

MIDA and DHL Express Partner to Promote Foreign Direct Investment to Malaysia

PENANG, Malaysia — 22 March 2023 — Critical areas of semiconductor industry growth including sustainability, smart manufacturing, smart mobility, smart medtech and workforce development will take center stage at SEMICON Southeast Asia as the industry’s premier global electronics manufacturing and supply chain event returns to Penang 23-25 May at the Setia SPICE Convention Centre. SEMICON Southeast Asia 2023 is organized in partnership with Malaysia Ministry of International Trade & Industry (MITI), Malaysian Investment Development Authority (MIDA) and InvestPenang. Registration is open.

Themed Boosting Agility and Resiliency for the Electronics Supply Chain, SEMICON Southeast Asia 2023 will also gather industry leaders to explore ways for the electronics industry to build a more robust supply chain as it navigates the current economic downturn and ongoing disruptions.

“With global electronics supply chains being redrawn as a result of geopolitical forces, more global players are shifting their attention to Southeast Asia, where much of the world’s semiconductor manufacturing capabilities are concentrated,” said Linda Tan, President of SEMI Southeast Asia. “There is no better time for the region to bolster its position as a key hub for electronics manufacturing and deepen its integration with global value chains. We look forward to hosting industry leaders at SEMICON Southeast Asia 2023 as they gather to discuss how they can build on Southeast Asia’s strengths to help increase global supply chain resilience, and better position the industry to seize the innovation and growth opportunities ahead.”

SEMICON Southeast Asia 2023 Highlights

• CxO Summit on Boosting Agility and Resiliency for the Electronics Supply Chain in SEA
  
  
• Roundtable discussion on investment opportunities in Southeast Asia

• Workforce Development
  • Career fair and talksSEMI SEA University Bootcamp
  • Launch of SEMI University, an online learning management system comprising courses targeted towards industry professionals in the semiconductor and electronics industry.

• Forums  
  • SMART MobilityMarket and Industry trendsSMART EnterpriseAdvanced PackagingSMART MedTechAdvanced Product Testing
  • Sustainability

• Smart & Sustainable Manufacturing Journey to help expand the adoption of Industry 4.0 best practices in the semiconductor industry. 

• Start-ups Showcase featuring the latest innovative semiconductor manufacturing solutions that are available in the market.

• Industry VIP Networking Night for attendees to connect with industry leaders and experts.

What SEMI Southeast Asia partners have to say

YBhg. Datuk Wira Arham Abdul Rahman, Chief Executive Officer, Malaysian Investment Development Authority

“As Southeast Asia’s semiconductor hub, Malaysia has vast potential to leverage global demand and expand its already robust existing semiconductor ecosystem in the coming years. I am proud to announce that Malaysia’s attraction as a top investment destination in the region remains strong, with a steady influx of high-quality investments in the manufacturing sector. This sector continues to contribute significantly to the Malaysian economy and in 2022, recorded a total of RM84.3 billion (USD19.1 billion) or 31.9 per cent of total approved investments in various economic sectors. Electrical and electronics (E&E) remained the top-performing industry in the manufacturing sector, with a total of approved investments of RM29.3 billion (USD6.6 billion).”

“SEMICON Southeast Asia presents a great platform for businesses to connect, engage and widen their strategic networks. With the presence of international firms at the event, Malaysia will showcase the vibrancy of its E&E industry and offer more opportunities for global industry players to expand their supply chains to include this key sector.”

Right Honourable Mr. Chow Kon Yeow, Chief Minister of Penang

“The theme for this year’s SEMICON Southeast Asia aligns with Penang’s longstanding focus to strengthen our competitiveness in the global arena. Having built a significant presence in the semiconductor industry, Penang is often lauded for its areas of expertise along the value chain. Beyond that, the state, via InvestPenang, commits to nurture the growth of emerging subsectors, extend Penang’s depth and breadth in the semiconductor industry to offer a portfolio of capabilities that speaks of our robust semiconductor ecosystem.”

For the full event agenda, please visit the Semicon Southeast Asia website.

About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn, TikTok and YouTube channel.  

About InvestPenang

InvestPenang is the Penang State Government’s principal agency for promotion of investment. Its objectives are to develop and sustain Penang’s economy by enhancing and continuously supporting business activities in the State through foreign and local investments, including spawning viable new growth centers. To realize its objectives, InvestPenang also runs initiatives like the SMART Penang Center (providing assistance to SMEs) and Penang CAT Center (for talent attraction and retention). For more information, please visit https://investpenang.gov.my/ and follow InvestPenang’s social media channels: Facebook and LinkedIn.

About SEMI

SEMI^® connects more than 2,500 member companies and 1.3 million professionals worldwide to advance the technology and business of electronics design and manufacturing. SEMI members are responsible for the innovations in materials, design, equipment, software, devices, and services that enable smarter, faster, more powerful, and more affordable electronic products. Electronic System Design Alliance (ESD Alliance), FlexTech, the Fab Owners Alliance (FOA), the MEMS & Sensors Industry Group (MSIG) and SOI Consortium are SEMI Strategic Technology Communities. Visit www.semi.org, contact one of our worldwide offices, and connect with SEMI on LinkedIn and Twitter to learn more.

Media Contacts

Ryan Teo/SEMI Southeast Asia
Phone: +65 9859 0883
Email: [email protected]

Michael Hall/SEMI US
Phone: 1.408.943.7988
Email: [email protected]
Reshvinder Kaur/Din Communiations
Phone: +6017 275 7985
Email: [email protected] / [email protected]

SEMICON Southeast Asia 2023 to Spotlight Electronics Supply Chain Resilience, Sustainability, Smart Tech and Talent

• SKC is exploring the possibility of making additional investments in the EV segment in Malaysia.
• POSCO Holdings is planning to develop a Carbon Capture Storage (CCS) project and further expand its steel processing plant in Malaysia to support new business segments such as EV, batteries, and green energy.
• COWAY’s decision to establish its first manufacturing hub and R&D facilities outside ROK demonstrates the company’s confidence in Malaysia’s economic fundamentals and conducive business environment.
• LOTTE Fine Chemical proposed a project that will further enhance local production capabilities, support the transition of industries value chain to the next level, and create more high-income and knowledge-intensive jobs.

21 March 2023 – The recently concluded Trade and Investment Mission (TIM) to the Republic of Korea (ROK) has secured a staggering RM24 billion in potential investments for the country. The TIM, held from 14 to 17 March 2023 was led by Minister of International Trade and Industry (MITI), YB Senator Tengku Datuk Seri Utama Zafrul Bin Tengku Abdul Aziz. It was also joined by high-level officials from MITI, MIDA, MATRADE and various Investment Promotion Agencies, as well as representatives from regional development corridors and Malaysian companies.

Datuk Wira Arham Abdul Rahman, CEO of MIDA, expressed his excitement in facilitating these investments, stating, “The remarkable achievement of securing RM24 billion in potential investments for Malaysia through the Trade and Investment Mission to the Republic of Korea (ROK) stands as a testament to our country’s steadfast commitment to attracting top-tier investments and augmenting the participation of local companies in the global supply chains.”

He also expressed his enthusiasm for the longstanding strategic partnership between Malaysia and the ROK, forged through the Look East Policy over the past four decades. Thanks to this collaboration, the ROK has become one of Malaysia’s top 10 major investors. “We are eager to welcome even more investments from the ROK. The focus will be on new growth areas such as high technology, innovation, knowledge-based and skills-intensive industries, which will create vast opportunities for the sustainable and green agenda advocated by both nations. The Malaysian Government is also placing a strong emphasis on energy and high-value manufacturing activities, including transport technology, such as the electric vehicle and its ecosystem, which is poised to deliver significant economic potential and long-term sustainable growth,” he added.

SKC, POSCO Holdings, Coway and LOTTE Fine Chemical were among the companies that expressed interest in investing in Malaysia.

SKC is exploring the possibility of making additional investments in the EV segment in Malaysia. Mr. Jae Hong Yi, Chief Executive Officer of SK Nexilis, shared, “Due to the increasing demand for Li-ion batteries in various industries worldwide, SKC is exploring the possibility of making additional investments in the EV segment in Malaysia. Malaysia is a strategic location for rapid global expansion of EV investments as it has started to develop the necessary infrastructure and materials to support the expansion of EV battery production.”

POSCO Holdings reaffirmed the company’s potential investment in Malaysia. POSCO Holdings is planning to develop a Carbon Capture Storage (CCS) project and further expand its steel processing plant in Malaysia to support new business segments such as EV, batteries, and green energy. Mr. Yoo Byeong-Og, Senior Executive Vice President and Head of Green Materials & Energy Business Team at POSCO Holdings, said, “Malaysia has high potential for carbon storage, which is in line with Malaysia’s commitment towards the ESG agenda, including achieving net-zero greenhouse gas (GHG) emissions by 2050 at the earliest.”

Coway’s CEO, Mr. Jangwon Seo, expressed the company’s confidence in the country’s economic fundamentals and pro-business environment by announcing their decision to establish their first manufacturing hub and R&D facilities outside of ROK. The establishment of the R&D center is aligned with Malaysia’s National Investment Aspirations (NIA) to develop high-value, innovative, and advanced technology products, creating high-income and knowledge-intensive jobs for Malaysian. Mr. Seo said, “We are confident that the favourable business climate and talented workforce in Malaysia will be key drivers in enhancing our market presence and contributing to the growth of the nation’s economy.” Mr. Yong Seok Kim, President and CEO of LOTTE Fine Chemical, shared, “LOTTE Fine Chemical sees great potential in diversifying its investments in Malaysia. The chemical industry is a crucial sector in Malaysia, ranking fourth in terms of industry size and third in terms of imports. The country offers a resilient supply chain, a skilled local workforce, and a strategic business ecosystem that can further support the company’s expansion plans. With this proposed project, LOTTE Fine Chemical aims to enhance local production capabilities, enabling the transition of the industry’s value chain to produce more advanced and high-value products”.

In 2022, MIDA announced approved investments in various economic sectors totalling RM264.6 billion (USD59.9 billion). Of this amount, a total of 15 manufacturing and services projects under MIDA’s purview with Korean participation have been approved with total investment worth USD1.42 billion. These projects generated potential employment for 1,389 people and the ROK is now ranked as the 7th largest foreign investor in terms of approved investments for 2022.

The TIM mission kicked off with a seminar titled “Malaysia: Your Profit Centre in Asia” which had attracted more than 250 distinguished business leaders from ROK and Malaysia. The main aim of this mission was to attract investments from various sectors, including electrical and electronics (E&E), environmental, social & governance (ESG), transport technology, metal, hydrogen, and chemical and chemical products.

The continuous investments by investors from the ROK validate the success of the nation’s ongoing efforts in attracting quality investments and in enhancing participation of local companies in high-value global supply chain. The strong interest shown by ROK companies garnered during the mission serves as a major catalyst in expanding the bilateral trade and investment relations, most notably in areas that support the sustainable and green agenda advocated by both nations.

******

About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn, TikTok and YouTube channel.

For more information, please contact:

MIDA

Mr. Faizal Jalaludin
Director, Foreign Investment Division
E: [email protected]   I   T: +60322676650

Malaysia Secures RM24 Billion of Potential Investments From Trade and Investment Mission to The Republic of Korea (ROK)

21 March 2023 – The Malaysian Investment Development Authority (MIDA) has successfully organised an inaugural seminar with the theme ‘Hydrogen Economy – Building a Sustainable Ecosystem in Shaping the Future of Energy, Materials & Infrastructure today at Perdana Hall, MIDA Sentral, Kuala Lumpur. The seminar was held to promote investments in the hydrogen economy to support the government’s agenda in attracting quality and sustainable investments in the new economy that uses innovative and cutting-edge technologies to boost industrial production and economic growth.

The Deputy Minister of International Trade and Industry (MITI), YB Liew Chin Tong, in his keynote address, expressed “While hydrogen has been identified as a fuel for the future in Malaysia’s National Energy Policy, we are still in the process of developing a

comprehensive roadmap and strategy for the hydrogen economy. The Ministry of Science, Technology, and Innovation, together with the National Nanotechnology Centre, are currently drafting the National Hydrogen Strategy. Once the National Hydrogen Strategy is agreed upon and implemented, MITI will engage relevant stakeholders to identify the right incentives and facilities, such as tax breaks, capital allowances, financial assistance, and R&D, to attract investments in hydrogen production, infrastructure, and ecosystem development. This will facilitate the country’s transition to a hydrogen economy, benefiting both industry and the rakyat.”

The seminar started with a welcome address by MIDA Chairman, YBhg. Tan Sri Dato’ Seri Dr. Sulaiman Mahbob, followed by a keynote address by YB Liew Chin Tong, the Deputy Minister of International and Industry (MITI). Malaysia’s renowned researchers and experts in hydrogen technology, YBhg. Prof. Dato’ Ir. Dr. Wan Ramli Wan Daud and YBhg. Prof. Dato. Ir. Dr. A Bakar Jaafar, also attended. Additionally, Mr. Mikaa Mered, a French Hydrogen Task Force member and Green Hydrogen Ambassador for IAHE, joined virtually from Marseille, France. YBhg. Tan Sri Datuk Seri Dr. Sulaiman Mahbob, Chairman of MIDA, highlighted, “Hydrogen has the potential to play a key role in a clean, secure and affordable energy in the future. “Green” hydrogen is the term used to describe the production of hydrogen from renewable energy sources. Given our country’s abundant and widely spread solar resources as well as the government’s commitment to shift towards renewable energy, the time is suitable for industry players and investors to tap into the potential of “green” hydrogen production.”

Tan Sri Sulaiman mentioned that MIDA is currently providing comprehensive support and facilitation to the Sarawak Economic Development Corporation (SEDC) Energy Sdn. Bhd. and relevant stakeholder to realise the investments in green hydrogen and related projects in Sarawak. “Malaysia is poised to play a pivotal role in the global shift towards a sustainable future through its investment in green hydrogen projects and related ecosystem development “ he added.

YB Liew Chin Tong also launched the Malaysian Association of Hydrogen Energy (MAHE) to the industry players during the seminar. MAHE is a platform to synergise efforts towards the development of a Malaysian Hydrogen Energy Blueprint, establishing academia-industry project collaborations, development of hydrogen project demonstrations, consultations for knowledge and technology transfers, and planning for human capital development.

This event has successfully promoted the hydrogen economy and its potential to shape the future of energy, materials, and infrastructure. The Malaysian government and relevant agencies are committed to supporting the development of a sustainable ecosystem for hydrogen production and infrastructure, and to attract investments in this new economy.

*****

About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn, TikTok and YouTube channels.

For more information, please contact:

MIDA

Mr. Syed Kamal Muzaffa bin Syed Hassan Sagaff
Director, Advanced Technology and Research & Development Division
MIDA Email: [email protected] | DL: + 603- 2267 3636

MIDA Spearheads The Investment Promotion In Hydrogen Economy

17 March 2023 – The Ministry of International Trade and Industry (MITI), successfully secured a total of RM24 billion potential investment and RM4.24 billion of potential exports of products and services, through the recently concluded Trade and Investment Mission to the Republic of Korea (ROK). The Mission, led by MITI Minister, YB Senator Tengku Datuk Seri Utama Zafrul Aziz from 14 – 17 March 2023, was part of MITI’s continuous efforts in attracting quality investments and enhancing participation of local companies in higher value global supply chain.

During the Mission, Tengku Zafrul had a bilateral meeting with his counterpart, H.E. Dukgeun Ahn, Minister for Trade, Ministry of Trade, Industry and Energy (MOTIE) ROK, to discuss, among others, the proposed resumption of bilateral free trade agreement negotiation between both countries; the formation of a Ministerial Trade Cooperation Dialogue; as well as potential cooperation in digital economy, green economy, renewable energy, supply chain and economic cooperation under the platform of the Indo Pacific Economic Framework (IPEF) and Regional Comprehensive Economic Partnership (RCEP). The Mission also featured a business seminar, a reception and a Venture Capital (VC) Investors’ Round.

Tengku Zafrul said, “The strong interest shown by Korean companies garnered during the Mission is a major catalyst for expanding Malaysia-South Korea bilateral trade and investment relations, particularly in the sustainable and green technology sectors, such as Carbon Capture Storage, Hydrogen Energy and Electric Vehicle. Malaysia’s economic competitiveness in the future will depend on whether we can secure access to and master green technology. Therefore, it is crucial for Malaysia to work with investors that can help us unlock growth in areas that support our sustainable agenda. I hope South Korea can work closely with us on this, as we chart a more resilient journey together for the challenges ahead.”

Among the new investment projects deliberated during the mission were by Samsung Engineering, SKC, Lotte Fine Chemicals, Hyundai, COWAY and a consortium of Korean companies. Lotte Energy Materials, Samsung Engineering and POSCO Holdings have also expressed their commitment to inject new investments in Malaysia, as well as ensure the transfer of new technology, high-value job creation, talent development, ecosystem creation and collaboration with local universities and industries, particularly among small and medium enterprises (SMEs). This is a manifestation of Malaysia’s earnest effort towards attaining sustainable and inclusive economic growth objectives under the New investment Policy (NIP).

The business seminar, which attracted more than 250 captains of industry from both Malaysia and the ROK, provided an update of Malaysia’s pro-trade and pro-investment policies, as well as opportunities for Korean companies to explore in Malaysia. Apart from the seminar, more than 150 individual business meetings were also arranged between Korean companies and Malaysian business delegation.

Another key feature of the mission was the Venture Capital (VC) Investors Round which was chaired by Tengku Zafrul and participated by more than 20 Korean VC investors, who indicated their interests to locate their robotics and AI-based businesses in Malaysia. Tengku Zafrul also witnessed the exchange of four memorandum of understanding (MOUs) with a few Korean VCs’ commitment to invest up to US$400 million in Malaysia.

To commemorate the 40th Anniversary of the LEP between Malaysia and the ROK this year, MITI and the Embassy of Malaysia in the ROK, also organised a Reception which was also graced by H.E. Park Jin, Minister of Foreign Affairs of the ROK and the Vice Minister, Mr. Lee Do-hoon. The Reception was also attended by the business community and government officials from both countries as well as Malaysian professionals and students in the ROK. In 2022, the ROK stood as the eighth largest trading partner for Malaysia with total trade amounting to RM114.21 billion (USD25.94 billion), an increase of 29.3% compared to RM88.31 billion (USD21.01 billion) in 2021. In terms of investment, the ROK has been one of Malaysia’s top sources of Foreign Direct Investment (FDIs) for the manufacturing sector. As of June 2022, a total of 374 projects worth USD9.2 billion (RM32.9 billion) have been implemented, generating 46,260 jobs.

MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY (MITI)

MITI Secures RM24 Billion Potential Investments And RM4.24 Billion Potential Exports From Mission To South Korea

• A Smart Warehouse and International Procurement Centre will also be built in Sg. Petani to support industrial clusters in Kedah and Penang.
• Committed to economic vibrancy through continuous investment, high-technology transfer and ‘hire locals first’ policy.

Seberang Perai, Penang, 17 March 2023 – Electronic Manufacturing Services (EMS) provider EG Industries Berhad (EG Industries) is set to build a RM180 million Smart ‘Lights-Out’ Factory 4.0 in Batu Kawan, Penang, which is expected to be a game-changer for the Northern Peninsular. The factory will  be producing new 5G Advanced High Speed Optical Signal Transmitter and Receiver for 5G wireless network (“Optical Modules”), using  photonics and semiconductor technologies through technology transfer from its US-based customer Cambridge Industries Group (“CIG”).   

The Batu Kawan plant, which commenced construction in January 2023, will initiate the first pioneer technology transfer in South East Asia. This is expected to raise the skillset and competitiveness of the local workforce and is set to hire approximately 1,000 high-skilled talents upon completion in the first half of 2024.Today, EG Industries hosted a delegation from the Malaysian Investment Development Authority (MIDA) in Sg. Petani, led by Ms. Lim Bee Vian, Deputy Chief Executive Officer (Investment Development), in conjunction with their expansion plan announcement. Also present at the event was YB Dato’ Wira Dr. Ku Abd Rahman, Senior State Executive Council Member (Kedah) and Member of Parliament Kubang Pasu, Kedah.

EG Industries, who currently employs 3,000 staff representing about 1 per cent of the Sg. Petani population, intends to actively collaborate with local universities and colleges to train fresh graduates to become industry-savvy. With its ‘hire local first’ policy, EG Industries prioritises employing Malaysians from the surrounding vicinity, enabling it to reduce dependency on foreign labour.

Ms. Lim Bee Vian, DCEO (Investment Development) of MIDA congratulated EG Industries, said, “We are pleased to see that EG Industries is actively collaborating with local universities and colleges to train fresh graduates to become industry-savvy. With their ‘hire local first’ policy, we applaud the company for providing job opportunities to Malaysians in the surrounding area, reducing dependency on foreign labor, and therefore helping our locals to increase their source of livelihood. Certainly, EG Industries’ expansion plans align with the National Investment Aspirations (NIA) of attracting high-value investments to deliver sustainable and holistic economic growth.”

“We welcome EG Industries’ expansion project leveraging on cutting-edge 5G technology, which is in line with the government’s mandate for MIDA to spearhead rapid digital transformation in the manufacturing sector. This will pave the way for enhancement on productivity, job creation, and the deepening of Malaysian’s skill set,” added Ms. Lim Bee Vian.

The new plant will deploy Lights-Out methodology, creating a fully networked environment that digitises material flow for autonomous manufacturing. This will be managed by a remote team of highly-specialised experts responsible for data management, production planning and quality control. 

Apart from Batu Kawan, the EMS player is extending its presence further to build Smart Warehouses and an International Procurement Centre featuring Kedah’s first Vendor Management Inventory (VMI) system to serve its own increasing requirements as well as that of the surrounding industrial cluster in Sg Petani, Kedah and Batu Kawan, Penang. The RM40 million facilities are slated for completion in 2024.

EG Industries’ Group Chief Executive Officer (CEO) Dato’ Alex Kang said that the smart facilities were timely given the Group’s expansion journey, from providing Printed Circuit Board Assembly (PCBA) and full-product box-build assembly, to producing upstream 5G routers and soon 5G optical modules.

Dato’ Alex Kang, Group Chief Executive Officer and Executive Director of EG Industries Berhad said, “Even before COVID, EG Industries had put strategies in place to improve our standing, by building our team’s mindset to emphasise on excellence, safety and innovation; serving more international customers to become their EMS partners; and improving efficiency of resource planning and sourcing, especially from local vendors. This has helped us to build our profile to retain our position as top 50 EMS players in the world today. While we are proud of our track record, we believe in enabling our fellow industries in Sg Petani to move forward as a collective unit. This is why we chose to build the Smart Warehouses and IPC, so that every industry player can utilise system-based technologies and have opportunity to scale up their operations.”

“We would like to cooperate more closely with Government authorities and agencies like MIDA to bring up the economic value in the state. Thus far our current plant in Sg. Petani has benefitted from grants to encourage exports and innovation, and we are hopeful for the continued support for future expansion plans. Apart from grants, we always appreciate open sessions for dialogue and feedback on current policies, so that Government agencies are kept abreast of latest developments and challenges of industry players, and formulate a mutually-beneficial solution,” added Dato’ Alex Kang.

Having achieved more than RM1 billion in annual revenue in the financial year ended 30 June 2022 (FY2022), the EMS player currently contributes approximately 2 per cent of Kedah’s Gross Domestic Product (GDP).

-ENDS-

About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn, TikTok and YouTube.

About EG Industries Berhad (“EG 工业”, www.eg.com.my)

Main Market Bursa Malaysia Securities Berhad; Bloomberg: EG:MK

EG Industries is a leading Electronic Manufacturing Services (EMS) and Vertical Integration provider for world-renowned brand names of electrical and electronic products for several industries including consumer electronics, ICT, medical, automotive and telecommunications. The Group has a workforce of approximately 3,000 employees in its manufacturing plants in Kedah, Malaysia and Prachinburi, Thailand.

Listed as one of the top 50 EMS players in the world, EG Industries provides services in original equipment manufacturing and original design manufacturing with full turnkey solutions for completed final products assembly (box-build), printed circuit board assembly and modular components assembly.

For media enquiries, please contact:

MIDA
Ms. Noor Suziyanti Binti Saad
Director, Electrical and Electronics Division, MIDA
T: +603-2267 3575
E: [email protected]

EG Industries
Ms. Julia Pong
T: +603-2711 1391/+6012-3909 258
E: [email protected]

EG Industries’ Smart ‘Lights-Out’ Factory 4.0 in Batu Kawan Set to Be A Game-Changer in the Northern Peninsular

• The Malaysia Madani concept emphasises the concepts of innovation, inclusivity and sustainability, where economic growth is achieved in a balanced and equitable manner, taking into account environmental, social and governance (ESG) factors. In this context, the positive trend in approved investments across Malaysia’s services, manufacturing, and primary sectors is a promising sign for the country’s focus towards achieving a more sustainable economy.
• In 2022, Malaysia recorded approved investments totalling RM264.6 billion (USD59.9 billion). This translates to 4,454 projects, with 140,370 job opportunities to be created.
• The services sector is the major contributor with RM154 billion (USD34.8 billion), followed by a RM84.3 billion (USD19.1 billion) boost in manufacturing sector, and RM26.3 billion (USD6 billion) in the primary sector.
• Foreign Direct Investment (FDI) remained the major contributor to the total approved investments at 61.7% or RM163.3 billion (USD36.9 billion), while Domestic Direct Investment (DDI) contributed 38.3% or RM101.3 billion (USD23 billion).
• The People’s Republic of China (PRC) dominated foreign investments totalling RM55.4 billion (USD12.5 billion) or 33.9% and followed by The United States of America (17.9%) The Netherlands (12.5%), Singapore (8.3%) and Japan (7%).
• Five (5) states that have recorded significant investment value to the total approved investments include, Johor (RM70.6 billion) (USD16 billion), Selangor (RM60.1 billion) (USD13.6 billion), Sarawak (RM28.2 billion) (USD6.4 billion), Wilayah Persekutuan Kuala Lumpur (RM25 billion) (USD5.7 billion) and Pulau Pinang (RM16.3 billion) (USD3.7 billion).
• Malaysia’s services sector secured a total of 3,581 projects worth RM154 billion (USD34.8 billion) for the period of 2022.

Kuala Lumpur, 8 March 2023 – With the announcement of RM264.6 billion in approved investments for 2022, the Malaysian Investment Development Authority (MIDA) has demonstrated Malaysia’s status as a preferred investment destination. Under the theme “Sustainable Investments for Growth,” the country’s manufacturing, services, and primary sectors have demonstrated resilience in the face of a challenging economic landscape, proving that Malaysia continues to inspire confidence and remains a preferred destination for global investors seeking stable, long-term opportunities.

During the Annual Media Conference (AMC), YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of International Trade and Industry (MITI) emphasised the importance of investing in sustainable technologies. He stressed, “As the world increasingly confronts the realities of climate change,
the urgency of investing in sustainable technologies and solutions cannot be overstated. MITI is taking sustainability seriously as we craft policies to incentivise companies and industries to help us lay the groundwork for a more sustainable and equitable world. This must be a whole-of-nation effort, as we want to attract the right investments that will support local SMEs and supply chains, as well as give the rakyat more job opportunities. Ultimately, it is all about achieving inclusive socio-economic benefits to secure a brighter future for all Malaysians.”

Of the approved investments of RM264.6 billion (USD59.9 billion), this include a total of 4,454 projects, and expected to create 140,370 job opportunities for Malaysians.

Foreign Direct Investment (FDI) accounted for 61.7% of total investments, or RM163.3 billion (USD36.9 billion). Domestic Direct Investment (DDI) recorded 38.3%, or RM101.3 billion (USD23 billion).

The People’s Republic of China (PRC) led the way in total approved investments with RM55.4 billion (USD12.5 billion), followed by The United States of America (RM29.2 billion) (USD6.6 billion), The Netherlands (RM20.4 billion) (USD4.6 billion), Singapore (RM13.5 billion) (USD3.1 billion), and Japan
(RM11.4 billion) (USD2.6 billion).

Five (5) states have seen significant investment activity, with Johor having the most approved investments, totaling RM70.6 billion (USD16 billion). This is followed by Selangor (RM60.1 billion) (USD13.6 billion), Sarawak (RM28.2 billion) (USD6.4 billion), Wilayah Persekutuan Kuala Lumpur (RM25 billion) (USD5.7 billion) and Pulau Pinang (RM16.3 billion) (USD3.7 billion).

YBhg. Tan Sri Dato’ Seri Dr. Sulaiman Mahbob, Chairman of MIDA, in his Welcome Remarks stated that the significant investment results are the outcome of a collective effort by stakeholders in promoting economic growth, social stability, talent development, sustained economic inclusivity and the advancement of Malaysia’s digital economy.

The AMC theme reflects MIDA’s incorporation of the New Investment Policy (NIP) and Environmental, Social and Governance (ESG) principles into its strategies. The goal is to produce sustainable, long-term investments, as well as to collaborate with partners who prioritise “impact investment”.

Services Sector Dominates the Investment Landscape

Malaysia’s services sector recorded 3,581 projects worth RM154 billion (USD34.8 billion). This represents a 58.8% increase over the previous year’s investments of RM97 billion (USD23.3 billion), which is expected to create 63,464 new jobs.

Foreign investment accounted for 55.1% of total approved investments in the services sector, or RM84.9 billion (USD19.2 billion), with domestic investment accounting for the remaining 44.9%, or RM69.1 billion (USD15.6 billion).

The information and communications sub-sector dominated the services sector, with approved investments worth RM84.7 billion (USD19.2 billion), or 55%. There were five (5) projects related to Information and Communication Technology (ICT) services, including data centres and cloud computing services, with an investment value of RM72.4 billion (USD16.4 billion), or 85.5% of the approved investments in the information and communication subsector.

Real estate (RM28.9 billion) (USD6.5 billion), financial services (RM11.2 billion) (USD2.5 billion), utilities (RM10.8 billion) (USD2.4 billion), and distributive trade (RM6.2 billion) (USD1.4 billion) were among the other sub-sectors that contributed to the amount of investments approved.

Investment in Manufacturing Sector

Malaysia’s attraction as a top investment destination in the region remains strong, with a steady influx of high-quality investments in the manufacturing sector. This sector contributed RM84.3 billion (USD19.1 billion), or 31.9% of total approved investments in various economic sectors.

FDI accounted for 78.3% of total approved investments, totaling RM66 billion (USD14.9 billion), with DDI contributed for the remaining 21.7% (or RM18.3 billion) (USD4.2 billion).

The number of approved expansion/diversification projects in the manufacturing sector recorded 385 projects worth RM49.3 billion (USD11.2 billion), while the number of new projects approved were 416, with a value of RM35 billion (USD7.9 billion).

Electrical and electronics (E&E) are the top-performing industries in the manufacturing sector (RM29.3 billion) (USD6.6 billion), followed by machinery and equipment (RM8.4 billion) (USD1.9 billion), transport equipment (RM8 billion) (USD1.8 billion), chemical and chemical products (RM7.4 billion) (USD1.7 billion), petroleum products (including petrochemicals) (RM5.9 billion) (USD1.3 billion), non-metallic mineral products (RM5.8 billion) (USD1.3 billion), scientific and measuring equipment (RM4.7 billion) (USD1.1 billion) and rubber products (RM3.6 billion) (USD0.8 billion). These industries comprise for RM73.1 billion (USD16.5 billion), or 86.7% of total approved investments in this sector.

A total of 76,093 potential new job opportunities is expected to be created in the manufacturing sector, where it will require 27,894 (36.7%) positions for managerial, professional/technical/supervisory and skilled employment, reflecting the higher value chain transition of the manufacturing sector.

Investment in Primary Sector

The primary sector registered a total of RM26.3 billion (USD6 billion) in approved investments, or 9.9% of total approved investments in the various economic sectors, an increase of 52.3% from RM17.3 billion (USD4.1 billion) in 2021.

Domestic investment dominated the primary sector, accounting for RM13.9 billion (USD3.1 billion), or 52.9%, with foreign investment recording for the remaining 47.1%, or RM12.4 billion (USD2.9 billion).

The plantation and commodities sub-sector recorded RM2.2 billion (USD0.5 billion) of approved investments (2021: RM211.4 million or USD50.7 million). Meanwhile, the agricultural sub-sector attracted RM154.4 million (USD34.9 million) in total approved investments (2021: RM20.5 million or USD4.9 million).

MITI and MIDA Continues to be at the Forefront in Attracting Investments

Despite the global economic landscape’s challenges, Malaysia has shown unwavering determination in navigating these difficult times. MITI and MIDA have continued to play a proactive role in ensuring a steady flow of domestic and foreign investment, which has contributed to the country’s resilience.

MIDA has a number of promising projects in the works, with potential investments totalling RM14.6 billion (USD3.3 billion), indicating great potential for the Malaysian economy. The manufacturing sector has 31 projects with a potential investment of RM10.6 billion (USD2.4 billion), while the services sector has 218 projects with a potential investment of RM4 billion (USD0.9 billion). Moreover, the recent commitment by Tesla and Amazon Web Service (AWS) to invest in Malaysia is a testament to Malaysia’s political stability and institutional strengths. Overall, this reflects MITI’s and MIDA’s commitment to promoting sustainable economic growth and job creation in Malaysia.

“Moving forward, as Malaysia strives to become Asia’s investment gateway, we are making every effort to quickly emerge as ASEAN’s digital hub, owing to our highly developed ICT infrastructure, talented STEM pool, strong intellectual property protection framework, and rule of law. The revised New Industrial
Master Plan 2030 will set the tone for Malaysia’s industrial development by outlining new growth opportunities, improving ease of doing business, and attracting high-quality digital investments. To reduce our carbon footprint and promote sustainable development, we will prioritise investments that benefit the people, planet, and profit, as well as funding for green projects and renewable energy. Our goal is to create high-paying jobs for Malaysians while also ensuring that growth is equitable and beneficial to all stakeholders.” added Tengku Zafrul.

MITI and its agencies, such as MIDA, will continue to work hard to attract highquality digital investments, generate more value and opportunities for growth through data and cloud-based technologies, and create high-paying jobs for Malaysians. As the country aspires to become Asia’s investment gateway, the
Government will also ensure that growth is balanced and beneficial to all stakeholders via sustainable economic growth and prosperity for the rakyat.

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About MIDA

MIDA is the Government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn, TikTok and YouTube channel.

For media enquiries please contact:

Ms. Fatmah Ahmad
Director, Corporate Communications Division
Email: [email protected]| DL: +603-2263 2428

Malaysia Attracted RM264.6 Billion (USD59.9 Billion) in Approved Investments for 2022, to Focus on Investments that Promote Sustainable Economic Growth and Prosperity for the People

KUALA LUMPUR – 2 March 2023 – Amazon Web Services (AWS) celebrated a significant milestone today with the announcement of plans to open a Cloud Computing Infrastructure in Malaysia. The Malaysian Investment Development Authority (MIDA) views AWS’s plans to invest approximately RM25.5 billion (USD6 billion) by 2037 to establish an AWS Region, a testament to their confidence in Malaysia’s promising digital economy and its capacity to drive long-term growth. This investment will advance nationwide digitalisation, foster a spirit of creativity, and cultivate a world-class digital workforce to accomplish Malaysia’s ambition of becoming a cloud-first nation.

Datuk Seri Anwar Ibrahim, Prime Minister of Malaysia, announced AWS’s investment at the AWS Cloud Day Malaysia event, which was attended by YB Senator Tengku Datuk Seri Utama Zafrul Bin Tengku Abdul Aziz, Minister of International Trade and Industry (MITI); YB Rafizi Ramli, Minister of Economy; YB Teo Nie Ching, Deputy Minister of Communications and Digital; and YB Tuan Mustapha Sakmud, Deputy Minister of Human Resources.

Minister of MITI, YB Senator Tengku Datuk Seri Utama Zafrul Aziz applauded AWS’s decision to establish its Cloud Computing Infrastructure in Malaysia. “We welcome AWS’s investment to bring an infrastructure for cloud computing to Malaysia, which will create value and opportunities for growth using data and cloud-based technologies. By embracing cloud, Malaysia will enhance its global competitiveness by attracting foreign investors and creating market-ready talent, Equally important is the empowerment of all industries and local SMEs to expand their operations and pursue innovation. We also look forward to AWS’s continued investment in talent training and development, particularly on cloud-based technologies among Malaysia’s workforce. On a personal level, I am also pleased that the relations I have built with AWS in the last two years have finally borne fruit for Malaysia’s benefit,” said Tengku Zafrul.

Datuk Wira Arham Abdul Rahman, Chief Executive Officer of MIDA, attended the event and expressed, “MIDA has been facilitating and assisting AWS on their investment in the country, and we are proud and excited to witness this momentous event today. Malaysia already has a reputation as a “rising star” of the global data centre sector and by having AWS, the world’s leading cloud provider, make this investment in Malaysia will solidify our position as a data centre hub in the region. The investment and initiatives from AWS will provide Malaysia with cutting-edge technologies, which provides competitive edge to local businesses especially SMEs, and MNCs, helping them to grow.”

Malaysia has one of the most developed data centre markets in Southeast Asia, valued at RM4.7 billion (USD1.06 billion) in 2021 according to market analyst organization Arizton. This figure is expected to grow rapidly in the near future, rising to RM7 billion (USD1.57 billion) by 2027.

From January to September 2022, the information and communications sub-sector recorded approved investments valued at RM69.2 billion (USD14.9 billion). From the total approved investments of this sub-sector, RM60.7 billion (USD13.1 billion) investments for data centre activity were approved.

The Digital Investment Office (DIO) is at the forefront of facilitating digital investments, helping investors connect with local partners and navigate regulatory requirements. Through DIO, the Malaysian Government’s objective of attracting RM70 billion in digitalisation investments by 2025 is on track.

This is being further facilitated by strong investment in a range of other tech areas, including the communication network infrastructure as the nation transitions to 5G, which is also in tandem with a business-beneficial geographical location, abundant natural resources and a skilled workforce.

Key to developments to date – and more to come in the future – is the support from the Malaysian Government, with MIDA taking the lead to attract quality investments, harness the vast possibilities opened up by the digital revolution and leverage technology to navigate the challenges ahead.

Note: 1USD = RM4.48

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About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my  and follow us on Twitter, Instagram, Facebook, LinkedIn, TikTok and YouTube channel.

Media Contacts

Ms. Rosedalina Ramlan
Director, Business Services and Regional Operations, MIDA
Email: [email protected] | DL: +60322673515

Amazon Web Services (AWS) Announces RM25.5 Billion Investment to Launch an AWS Cloud Computing Infrastructure In Malaysia