VS Industry Bhd is optimistic about its prospects for the financial year ending July 31, 2025 (FY25), buoyed by a healthy demand outlook and significant capital expenditure (capex) plans.

The electronics manufacturing services (EMS) provider has earmarked Rm150mil for capex, with the bulk allocated to its new facility in the Philippines, acquisition of a new factory in Indonesia, and maintenance for its Malaysia operations.

Managing director Datuk Gan Sem Yam said the group’s positive outlook is supported by sustained order growth, upcoming product launches, and the group’s regional expansion efforts.

“We are upbeat on our prospects as we move into FY25. This is underpinned by the healthy demand outlook from our existing customers and our new manufacturing facility in the Philippines,” Gan said in a statement.

He said the group had secured new orders worth an aggregate Rm1.5bil over the next two years, adding that production at the new Philippine facility is set to begin in the coming months.

“The establishment of the new facility in the Philippines is progressing well with production of two secured models to commence thereafter. Renovation of our new plant is at its tail end, and we target to start production in the coming months,” he noted.

He said the group’s capex strategy reflects its commitment to scaling operations.

“These investments enable us to strengthen our foundation as we advance towards new horizons for the group,” Gan added.

For FY24, VS Industry declared a total dividend of 2.2 sen per share, amounting to a payout of Rm84.8mil, representing a payout ratio of 43.4%, exceeding its 40% dividend policy.

Meanwhile, for the first quarter ended Oct 31, 2024 (1Q25), VS Industry’s bottom line dropped by about 37.5% to Rm30.6mil from Rm49mil in 1Q24, impacted by inventory destocking from a key customer and unfavourable foreign exchange fluctuations.

Despite a slow start to the financial year, UOB Kay Hian (UOBKH) Research expects VS

These investments enable us to strengthen our foundation as we advance towards new horizons for the group. Datuk Gan Sem Yam

Industry to see sequentially stronger quarters in FY25.

“These challenges are largely one-off. Looking ahead, a stronger US dollar, seasonal tailwinds, alongside pipelines of new product launches by key customers, would position VS Industry for a stronger recovery in 2H25 and explosive growth prospects in FY26,” it noted.

UOBKH Research viewed VS Industry’s expansion into the Philippines as a significant step toward strengthening its regional presence and boosting growth prospects.

The research house said the group’s wholly owned subsidiary, VS Industry Philippines (VSIP), had entered into a lease agreement for a 570,000 sq ft factory at the Light Industry and Science Park III in Batangas, the Philippines.

“The group has also secured new orders from its key customer to manufacture selected consumer electronics products on a box-build assembly basis, with expected recurring revenue contribution of Rm300mil for FY25 and Rm1.2bil for FY26, which we believe will entail two lines of products,” it said.

UOBKH Research noted the facility’s full utilisation could generate up to Rm2bil in revenue annually.

“While we are cognisant of the execution risk considering the different market landscapes, we are net positive to the announcement,” the research house noted.

It cited several factors contributing to the positive outlook, including stronger order visibility and VS Industry’s vast experience in supporting its key customers’ sub-operations.

Favourable export tariffs from the Philippines to the United States, opportunities to boost margins by offering new services, and the chance to secure more jobs across multiple sites were highlighted as benefits.

“More so, the adoption of an asset light model could lead to a lower breakeven point for margin accretion,” it added.

UOBKH Research maintained its “buy” call on VS Industry, raising its target price to RM1.50 per share from RM1.35 previously.

“Despite a 17% recovery in its share price since mid-november 2024, VS Industry remains attractively valued at 17.1 times its 2025 price-to-earnings ratio, slightly below its five-year mean, offering a compelling entry point,” the research house said.

The stock closed one sen higher yesterday at RM1.17, marking a year-to-date gain of 3.5%.

VS Industry provides vertically integrated manufacturing solutions, serving as both an original equipment manufacturer and an original design manufacturer, catering to multinational corporations globally.

Its capabilities include high-precision printed circuit board assembly, plastic injection moulding, and tool design and fabrication.

Source: The Star

VS Industry eyes Rm150mil capex

Malaysia has long depended on low-skilled foreign labour to fill low-wage jobs that many locals avoid. These roles are often highly routine, and as the country seeks to reduce its reliance on foreign labour, automation is increasingly being seen as the key solution.

In 2022, the International Organisation for Migration estimated that there were 2.2 million migrant workers in Malaysia, forming a significant part of the 14.4 million labour force, primarily in manufacturing, construction, agriculture, services and plantations.

“As technology advances, policies like the Industry4wrd National Policy and New Industrial Master Plan (NIMP) are solving this reliance by filling this labour gap with machinery, making use of the rise of Industry 4.0 or Smart Factory technologies,” says Dr Chua Wen-Shyan, head of Malaysian Smart Factory 4.0 at the Selangor Human Resource Development Centre (SHRDC).

Manufacturers are increasingly adopting the Internet of Things (IoT), artificial intelligence (AI) and robotics to create more interconnected and intelligent systems that optimise resource management and enhance decision-making processes.

The Covid-19 pandemic significantly accelerated the digital transformation of businesses, propelling advancements by years, if not decades, Chua believes.

Since then, most manufacturing and logistics operations have embraced digitalisation. Additionally, many family-owned businesses are transitioning to the next generation, who are more inclined to adopt new technologies.

The SHRDC examines Malaysia’s labour shortage across both high-skilled and low-skilled sectors, exploring the root causes of this issue. The rise of the gig economy has drawn many workers away from traditional employment, but automation and technology present opportunities to reintegrate them into factories through more fulfilling and challenging roles.

While automation is often linked to job reduction, the reality can be quite the opposite. When factories adopt automation and digitalisation, they not only create new roles but also enhance job value. Positions that were once considered tedious can become innovative and appealing, offering competitive wages and revitalising the workforce.

And it seems to be working. While Chua could not provide official figures, SHRDC has observed a growing number of young talents entering not only manufacturing but also agricultural industries, particularly with companies perceived as forward-thinking.

Despite its advantages, automation in Malaysia’s manufacturing industry has yet to achieve widespread adoption. Chua explains that this is largely due to the nature of locally produced goods, which are often customised to client specifications. Instead of manufacturing 100,000 identical items, production typically involves only a few thousand at a time.

This low production volume makes it challenging to justify the cost of acquiring and implementing machines designed for mass production, as the returns may not appear as compelling.

“We can understand what the government is trying to do. They want to get local people to work in the factory. But when you do that without solving the problem of getting the local workforce back to the factory or even proper incentives for automation, [it creates] big challenges in the company trying to manage things right. So, they end up not being able to get enough workers and shut down,” says Chua.

As a result, SHRDC adopts a cautious approach when discussing transformation plans with companies, encouraging them to proceed only if they are genuinely prepared. Businesses are also urged to build in-house technical teams to manage the transition effectively.

Chua notes that initiatives and programmes, not only from SHRDC but also through NIMP, the New Malaysia Plan and others, play a crucial role in driving automation adoption. This shift is increasingly vital for factories, especially as government policies aim to make foreign labour more expensive and less accessible.

Rise of smart factories

Automation is adopting technologies like robots to remove the need for manual labour, while digitalisation is used to visualise the productivity of the company to analyse and improve performance.

For too many companies, the move to digitalisation is often hindered by the heavy costs and not fully understanding what it means to digitalise instead of just automate. Chua recalls times when a manufacturer he was in talks with had automated but not digitalised, and did not understand the difference between the two.

He gave an example of a factory that has 10 fully automated machines. “But how do we know these 10 machines are operating at the best efficiency, the most optimal rate? How do we see what’s the total number of outputs in a day, rejects, quality issues, downtime issues?”

Often once a company sees this value do they become more accepting of newer technologies, which SHRDC addresses through its initiatives to meet NIMP’s goal of having 3,000 smart factories in Malaysia by 2030.

Chua defines a smart factory as a robust digital factory that is highly intelligent and data-driven. In a smart factory, the entire manufacturing process is traceable from end to end, meaning the factory owner can see the entire production flow and visualise the data.

This means the entire factory is highly automated, with robots and machinery taking over much of the manufacturing process, with machines monitoring the entire line and providing real-time data that allows factory owners to review and revise things to increase efficiency.

So not only is the need for low-skilled workers like assembly line workers removed, but it also opens jobs for higher-skilled ones, like data analysts or engineers to monitor and maintain the system.

In a way, Chua sees NIMP and the push for smart factories as a rebranding of sorts for the government’s Industry 4.0 initiatives, addressing the issues it had during its implementation.

To him, the past implementation of Industry 4.0 policies by the government was very technology-focused. So, if a company wanted to digitalise they had to do a government readiness assessment and then ask government agencies for a grant.

“The message was ‘do an assessment to get the money’ instead of ‘understand where you are, understand your current baseline, then go and learn how you can improve yourself before you go and apply for funding’,” says Chua.

SHRDC has run many training programmes, worked with various universities and internship programmes and trained lecturers to spread the benefits and value of smart factories to increase adoption. Despite these efforts, he is not optimistic about meeting the NIMP goal of 3,000 smart factories.

“One year since the NIMP was launched and I think that, in my personal opinion, it’s been quiet. There’s not much talk about technology or smart factories in the past year,” he notes.

Instead, most of the discussions have been around sustainability efforts, with a lot of push from government sectors on environmental, social governance and social development goals.

Chua says this itself is not an issue, only that there is not a lot of time to reach the 3,000 smart factory goal within six years. So, the country has to move fast with a consolidated effort from all stakeholders to transform the industry, which he sees as unrealistic.

Instead, SHRDC is encouraging companies to take a standardised baseline assessment to fully understand where businesses are in their smart factory transformation journey. Once they have that baseline, they can then set more realistic numbers and set reasonable targets come 2030.

This had an interesting effect where some companies they reached out to, upon realising and hearing about NIMP, would respond with inquiries about their smart factory transformation plan and how realistic it is, which Chua notes is a great start.

“Interestingly they gave us a call and said, ‘I have a roadmap now. I want to share this with you, and you tell me whether I am dreaming or I am able to achieve it,’” he says.

Low-code platforms empowering the workforce

Another facet of SHRDC’s services is it supplies and networks companies with platforms that further help alleviate the reliance on large teams while empowering employees to accomplish tasks faster and more efficiently: low-code and no-code platforms.

Low-code platforms are digital platforms where employees can perform tasks usually done through coding, such as creating a website or software application, through intuitive drag-and-drop tools that require little to no coding knowledge.

This not only empowers existing employees but also reduces the need for large teams of those with coding knowledge, and some platform providers saw companies that adopt low-code platforms are more likely to create a workplace culture that attracts younger generations of employees.

“Low-code platforms can significantly help address Malaysia’s labour shortage in the tech and business sectors through several key mechanisms, such as the democratisation of technology development which enables non-technical business stakeholders to create AI solutions and bridges the gap between business needs and technical implementation,” says Ooi Ghee Leng, CEO of Embedded LLM (large language model).

According to Lim Chee How, CEO of low-code platform provider Tapway, the main benefit of low-code platforms is that they allow technology companies and businesses with smaller tech teams to develop solutions faster and more easily without the need to hire more developers.

Essentially, low-code and no-code platforms help democratise technology solutions and make them more affordable to the masses, allowing them to automate labour with technology solutions.

Tapway’s platform, SamurAI, is one example of this. It provides a no-code platform for companies to make their own Vision AI solution, an AI that can detect and analyse data from cameras. This reduces costs from outsourcing entire projects, while not outright removing the need for these high-skilled workers.

“The infrastructure and underlying logic of software development will still require in-depth expertise. That’s where the skilled technical professionals come in,” says Kien Yew Liang, founder and managing partner of Dallas Roboter.

Liang notes that while these platforms help with reducing costs and speeding up automation, it does not fully resolve labour shortages unless automation becomes a central business strategy.

Ooi adds, “The impact isn’t about addressing a labour shortage, as Malaysia has plenty of technical talent, but rather about enabling faster, more effective digital transformation by allowing business experts to directly implement solutions while making better use of existing technical talent.”

Technologies changing automation

These innovations in the labour force extend beyond empowering employees, they can transform the factories as a whole, making them more efficient and simpler for businesses to adopt.

Addressing the issue of integrating automation into legacy systems due to outdated software, Universal Automation offers a transformative approach to digital technology integration in manufacturing, using a modular, plug-and-produce software ecosystem, an approach Schneider Electric is championing.

Ng Wei Jie, business vice-president of industrial and process automation at Schneider Electric Malaysia, notes how through this, industrial companies can select the automation technology they need, matching applications into one seamless automation system built on the IEC 61499 standard, the international standard for these infrastructure systems.

“It enables industrial operations to fully realise their digital evolution with software-defined automation solutions, just like the EcoStruxure Automation Expert, our world-first hardware-agnostic industrial automation system,” he says.

On the other side, transforming entire factories at once, new technologies like AI has shown to be another proponent of change to address the challenges of low-skilled labour while drawing high-skilled ones into industries once thought unrelated.

In November, local AI company Airei opened Malaysia’s first AI-based palm oil mill at Minsawi Industries in Kuala Kangsar, Perak. Reporting a decrease in labour by about 30%, Airei removed routine jobs like an operator who opens and closes doors to place palm fruit on the mill conveyor belt.

While this partly affected some domestic jobs, it removed the need for jobs to be often filled by foreign workers.

The AI-based mill works by replacing those repetitive-task jobs with machinery. Doors and mechanics run automatically and are monitored using vision AI to dictate when to move the process along. Instead of relying on manual labour, the focus shifts to AI engineers who maintain and improve the system.

“We are trying to minimise those very basic kinds of jobs, and we are replacing them with AI. At the same time, for those guys who are no longer working, we are telling them to do other things, like taking up training to learn welding skills. We don’t want people to just sit down doing repetitive jobs. That’s what we are trying to eliminate,” says Airei CEO Surendran Kuranadan.

The biggest challenge when implementing this system was that you could not turn off the mill and install these systems, he says. His team had to install these technologies while the mill was still in operation, except for a seven-hour window on Sundays to ensure production was not hindered.

The other challenge is that this mill is the first of its kind. Much like smart factories, a lot of the plan moving forward is convincing factory owners of the value of this technology, and that mills no longer need to rely on labour for repetitive tasks.

This comes back to even the impetus of the entire AI-based mill project: addressing a problem that arose during the Covid-19 pandemic, when finding labour was difficult and the idea to create a mill less reliant on foreign labour was born.

With the introduction of advanced platforms like Universal Automation, AI-based mills and smart factories, there are signs of a transformative shift that emphasises a need for upskilling and reskilling of local talent to meet the demands of a more automated and digitally integrated manufacturing environment.

Source: The Edge Malaysia

Automation: Shifting to intelligent manufacturing

Electronic manufacturing services (EMS) player SP Manufacturing has strengthened its global footprint by opening a new manufacturing facility in Senai, Johor.

Established in 2000, SP Manufacturing provides design to full production services, specialising in high-quality cable harnesses, printed-circuit-board (PCB) assemblies, and box-build products for mission-critical industries that include automotive, and aerospace.

The facility in Senai which opened in October, is equipped with comprehensive manufacturing capabilities, including functional testing; in-circuit testing and automated optical inspection (AOI); state-of-the-art cleaning processes; rigorous inspection protocols and rapid prototyping and expert assembly processes. It enhances the company’s resilience to meet growing customer demands in medical devices, industrial machinery and automotive electronics.

The facility is equipped with advanced automation and strict quality controls which enable SP Manufacturing to deliver mission-critical products with precision and reliability.

“This facility reflects our commitment to serving our global customers while participating in a key location of the global supply chain network,” said SP Manufacturing global business development Jackson Tan.

The Singapore-based company also said it has acquired Ideal Jacobs Corporation, which is known for its human-machine interface, printed electronics and die-cut solutions.

The announcement was first made in November 2024.

The move will expand SP Manufacturing engineering capabilities and provide access to a diversified client portfolio including semiconductor and telecommunications.

SP Manufacturing added that it continues to provide comprehensive engineering and design services for its customers in the United States, using industry-standard software for PCB and electrical design.

Source: NST

EMS company SP Manufacturing sets up plant in Senai, Johor

The government has initiated an administrative (sunset) review of anti-dumping duties on imports of cold rolled coils of iron, or non-alloy steel, and of width more than 1,300 mm, originating or exported from China, South Korea, Japan, and Vietnam.

In a statement, the Ministry of Investment, Trade and Industry (MITI) said the review was initiated following the request of Mycron Steel CRC Sdn Bhd because the expiry of anti-dumping duties would likely lead to a continuation or recurrence of dumping and injury to the domestic industry.

“The government has evaluated and considered the information and decided to initiate an administrative (sunset) review pursuant to subsection 28(6) of the Countervailing and Anti-Dumping Duties Act 1993 (Act 504) and regulation 34 of the Countervailing and Anti-Dumping Duties Regulations 1994 (the regulations),” it said.

MITI said that in accordance with Act 504 and the regulations, a final determination of the review would be made within 180 days from the date of initiation, and a set of questionnaires and documents would be distributed to the relevant interested parties.

The ministry said that interested parties must request the questionnaire by Jan 8, 2025. They can also submit written feedback, completed questionnaires, and supporting information by Jan 23, 2025.

“If interested parties do not submit the required information or if submissions are incomplete within the specified time limit, the government might make its final decision based on the available facts,” it added.

Source: Bernama

Govt initiates sunset review of anti-dumping duties for iron or non-alloy steel cold rolled coils

The rubber gloves sector is gaining better traction, given continued strong earnings growth and added tailwind from US tariffs imposed on Chinese glove makers.

These tariffs are helping local players regain global market share, according to Phillip Capital Research.

In its 2025 strategy report, the research house said: “We forecast a strong rebound in earnings for rubber glove companies as improving market dynamics are expected to drive sustained recovery in sales volume and average selling prices (ASPs).”

Phillip Capital Research also highlighted that the key focus for 2025 will remain on the extent of earnings recovery among glove makers, sales volume trends, opportunities for higher ASPs and the timeline for recommissioning capacity.

Additionally, it said investors should closely monitor developments in US-China trade tensions, as these could have significant implications for the glove sector.

This is particularly relevant as the United States has revised its tariff policy on rubber medical and surgical gloves.

Initially set to increase from 7.5% to 25% by 2026, the tariffs are now scheduled to rise to 50% in 2025, with a hike to 100% by 2026.

On glove companies’ earnings outlook, Phillip Capital Research said both Hartalega Holdings Bhd and Kossan Rubber Industries Bhd have shown consistent operational improvements and earnings growth over the past few quarters, underpinned by better sales volumes and higher ASPs.

“However, Hartalega fell into losses in the latest quarter due to startup costs associated with recommissioning its new line.

“Utilisation levels among local glovemakers rose to 75% to 90% in the second half of 2024 (2H24), reflecting increased customer demand,” it noted.

In addition, Philip Capital Research said its channel checks suggest that the recovery momentum remained positive.

The ASPs have stabilised at US$19 to US$22 per thousand pieces, up from US$18 in 2023, and sales volume is expected to grow by 5% to 10% in the coming quarter.

“This will be supported by restocking activities and redirected orders from China glove makers to Malaysian players,” the research house said.

It added that local players may consider raising ASPs by 3% to 5% quarter-on-quarter to offset costs.

Phillip Capital Research maintained its “overweight” stance on the sector, favouring companies with strong balance sheets and significant US sales exposure to capitalise on the ongoing recovery.

It noted that Hartalega has the largest US exposure at about 60%, followed by Kossan at around 45% and Top Glove Holdings Bhd at 17%.

The sector’s outlook remains positive, driven by continued earnings growth and favourable dynamics arising from the US-China trade tensions.

“These tensions will benefit Malaysian glove makers as more orders are redirected to Malaysia.

“We anticipate that Malaysian players will regain a larger global market share, potentially increasing their market share to 50% (up from the current 35% to 45%), driven by order diversions and rising demand,” the research house added.

Phillip Capital Research has “buy” calls on Hartalega and Kossan, with a target price (TP) of RM4.55 per share and a higher TP of RM3.15, respectively, given their strong balance sheets and ability to deliver robust operating leverage in a recovering environment.

Source: The Star

Rubber gloves sector gaining momentum

As 2024 draws to a close, the automotive industry stands out not only because of the better-than-expected vehicle sales for the third year running but also due to the much-anticipated launch of Malaysia’s very own electric vehicle (EV).

As Prime Minister Datuk Seri Anwar Ibrahim unveiled the sleek e.MAS 7 EV on Dec 16, priced from RM120,000 onward, it marked a key step toward Malaysia embracing electrification in line with the nation’s sustainable mobility goals.

Rolling out the EV was another milestone for national carmaker Proton Holdings Bhd, which is expected to boost demand in the fast-growing EV market and drive overall auto sales.

Furthermore, in what was a clear reflection of consumers’ penchant for new cars, analysts and industry experts believe total industry volume (TIV) for 2024 will surpass that of 2023, marking the third consecutive year of an all-time high.

Key growth drivers include sustained demand in the affordable segment, attractive new launches, a robust domestic economy, healthy backlog orders and continued aggressive promotional strategies from car manufacturers.

This year, Malaysia’s automotive industry accelerated smoothly, demonstrating resilience and adaptability, reflecting steady growth and forward-thinking innovation.

Stronger Sales

The Malaysian Automotive Association (MAA) had earlier projected the total TIV for 2024 to be 740,000 units, but revised it upwards in July to 765,000 units given the positive growth in the first half of the year (1H2024).

Between January and June 2024, total TIV rose 6.6 per cent year-on-year (y-o-y) to 390,296 units from 366,176 units in the same period in 2023, supported mainly by the strong showing in the passenger car subsegment which contributed the largest volume increase.

MAA’s continued optimism led it to revise the TIV again in November to 800,000 units.

The association reported that year-to-date vehicle sales in November 2024 increased by 1.4 per cent to 731,534 units, up from 721,392 units in the same period last year.

Passenger vehicle (PV) TIV rose 3.0 per cent y-o-y to 670,650 units, while commercial vehicle (CV) TIV dropped 17 per cent y-o-y to 60,884 units.

“We believe the automotive industry will achieve another record this year,” MAA president Mohd Shamsor Mohd Zain told Bernama.

As of October 2024, Perodua led the auto sales race in Malaysia with 294,090 units, followed by Proton (122,462 units) and Toyota (102,163 units).

In other brands, Honda sales were driven by the popular Civic, City and all-new HR-V; while Nissan showcased its face-lifted Serena S-Hybrid, Navara and Almera Turbo; followed by Proton with the all-new X70, X50 and X90; Perodua (the all-new Alza, all-new Axia, MyVi, Bezza and Ativa); Toyota (all-new Vios, Yaris, Corolla Cross and Hilux); and Mazda (CX-5, CX-8 and CX-30).

As for production, some 725,173 vehicles were manufactured in January-November 2024, up 3.0 per cent y-o-y from 708,376 units in the same period a year ago.

This included 683,262 PVs (+3.0 per cent y-o-y) and 41,911 CVs (-7.0 per cent y-o-y).

MAA expects TIV in December 2024 to be higher in November, on the back of aggressive year-end promotions, especially by companies having their financial year ending on Dec 31, 2024.

Electric Vehicles On The Rise

Growth in Malaysia’s automotive industry was also supported by sales of EVs, which soared by a whopping 112 per cent to 6,617 units in 1H2024 from the 3,117 units registered in 1H2023.

MAA said 15,884 hybrid vehicles were sold in 1H2024, bringing the number of electrified vehicles (xEV), which includes hybrids, plug-in hybrids and EVs, sold in the county during the period to 22,501 units.

Though the data is already impressive, officially, it does not include the 3,079 vehicles sold by Tesla during the period given that the American automaker is not a member of the MAA.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz recently announced that xEVs on the road stood at 33,319 units as of Sept 30, approximately 5.0 per cent of the TIV.

This brisk EV adoption in the country was due to rising consumer interest, supportive government policies, initiatives and infrastructure development.

For instance, fully imported completely built-up (CBU) EVs were currently accorded full import and excise duty exemption until the end of December 2025, while locally assembled/completely knocked down (CKD) vehicles were exempted from excise and sales tax until the end of December 2027.

“These tax incentives should be further extended until 2030 in line with the government’s target of achieving 15 per cent xEV by 2030,” said MAA’s Mohd Shamsor.

Additionally, EV giants like BYD and Tesla, as well as Stellantis – the world’s fourth-largest automaker and a leading mobility solutions provider – have entered the Malaysian market, further boosting the industry’s expansion.

Proton, through its new energy vehicle arm PRO-NET, made history with the launch of the e.MAS 7, marking it as the first EV by a Malaysian original equipment manufacturer (OEM)     

As for charging stations, an issue widely discussed among car owners, more than 3,171 charging stations have been installed nationwide as of Sept 30, 2024, including 813 direct current (DC) fast chargers.

The government is keeping to the target of 10,000 EV charging stations in the country by end-2025.

Diesel Subsidy, E-Invoicing In Focus

On June 10, the targeted diesel subsidy rationalisation programme was implemented to manage subsidies more efficiently and curb smuggling and the misuse of subsidised fuel, from which the government would save RM4 billion annually.

Undoubtedly an unpopular measure, especially for Malaysians who have enjoyed subsidies for umpteen years, the retail price of diesel rose to RM3.35 per litre from the blanket subsidised price of RM2.15.

Many analysts projected that it would not have a severe impact on consumers as diesel vehicles constitute less than 12 per cent of the total vehicles nationwide.

The government has also been magnanimous in providing targeted subsidies to eligible recipients and sectors. Vehicles that use diesel engines comprise pickup trucks, vans and commercial vehicles.

Besides private use, they are primarily used in the construction, plantation, logistics, tourism and transportation sectors.

The focus in the auto industry was also centered on the implementation of e-invoicing which aims to improve transparency in financial transactions.

Kenanga Investment Bank Bhd recently said e-invoicing had a limited impact on car sales as automakers step up efforts to provide discounts and rebates to sustain demand and alleviate consumer concerns

The investment bank said e-invoicing effectively halts the widespread practice of offering 100 per cent hire purchase financing, although, under the Hire Purchase Act 1967, customers are required to pay a minimum 10 per cent down payment for vehicle purchases.

Promising Outlook For Automotive Sector

The local automotive industry is poised for growth next year, leveraging targeted government policies, wage improvements and cost advantages, while navigating challenges from evolving consumer preferences and competition.

As such, the outlook remains optimistic in 2025 despite the impending changes in RON95 fuel subsidy policies and increased competition among industry players.

Under Budget 2025, the government plans to end blanket subsidies for RON95 fuel in the second half of the year.

Many expect that a two-tier pricing system will likely be introduced, where only the T15 income group and foreigners will pay market rates. This shift is not expected to significantly impact national OEMs, which primarily cater to the B40 and M40 segments.

The affordable car segment is expected to continue thriving, supported by targeted subsidies and the progressive wage model.

Wage increases for civil servants, ranging from 7.0 per cent to 15 per cent in December 2024, will also enhance purchasing power, offsetting inflationary pressures.

However, the mid-market segment may face challenges as the M40 group might delay purchases or opt for smaller EVs to mitigate higher fuel costs.

Additionally, the industry is witnessing intensified competition from Chinese OEMs offering competitively priced models with advanced features, creating pressure on established players.

On the brighter side, the stronger ringgit against the US dollar is projected to lower automotive part costs by 2H205, improving profit margins.

Mohd Shamsor said although the xEV market is still small, EVs will likely see greater expansion in the next two to three years, provided the government policies to boost cleaner and green vehicles continue.

Nevertheless, there should be a balance between emphasis on internal combustion engine (ICE)/hybrid vehicles and EVs, he said.

“This is to ensure the co-existence of both to minimise any adverse impact on the current ecosystem which may lead to workforce displacement and the sustainability of small and medium enterprises manufacturing parts and components for ICE/hybrid vehicles.

“Moreover, hybrid vehicles are also now more efficient in fuel economy and environmentally friendly,” Mohd Shamsor added.

To recap, xEVs sold last year totalled 38,214 units, higher than 22,619 units in 2022 and 8,153 units in 2021.

Source: Bernama

The year in automotive: First national EV debuts

Phillip Capital Research says industrial players in the electronics manufacturing services (EMS) and technology sectors are better positioned than consumer electronics players to ride on the artificial intelligence (AI) boom.

The research house said in a report that industrial players in the EMS and tech sectors are also less susceptible to any global economic slowdown.

“In the technology sector, the market has already priced in the impact of significant foreign exchange losses ahead of the results for the third quarter of 2024. However, sentiment is improving as the worst seems to be over and the US dollar strengthens.

“Investors are positioning for the next semiconductor cycle, with earnings delivery being the key catalyst for further share price re-ratings. The focus is expected to remain on the AI supply chain.

“We maintain an ‘overweight’ stance, favouring long-term secular trends in data centres, automotive and solar, with a preference for front-end exposures,” the research house said.

The research house said the EMS sector offered a higher degree of earnings certainty, with Nationgate Holdings Bhd set to ramp up server production and fulfil delivery orders, driving 83% year-on-year (y-o-y) earnings per share growth in 2025.

Phillip Capital Research said the technology sector appeared to have bottomed out, signalling a gradual recovery in earnings.

“We foresee stronger earnings momentum in 2025, with sector earnings growth of 69.5% y-o-y as the semiconductor cycle turns,” the research house said.

For EMS sector exposure, the research house’s top pick is Nationgate, as it continued to benefit from rising demand for AI servers.

“We raise our target price to RM3 from RM2.65 after factoring in higher server deliveries. We also continue to like Frontken Corp Bhd due to its unique exposure to the front-end semiconductor value chain.

“We also raise our earnings and target price for Pentamaster Corp Bhd from RM4.40, on an unchanged 31 times price-earnings multiple, taking into account the increased stake in Penta International from 63.9% to 71%.

Source: The Star

Electronics, tech players to continue riding AI wave

VentureTECH Sdn Bhd and MTC Orec Sdn Bhd have formed strategic partnerships to accelerate the development of MTC Orec’s biomethane plants, reinforcing both companies’ commitment to sustainable growth and renewable energy innovation.

In a joint statement issued on Monday, the companies revealed that VentureTECH’s investment will support the establishment of new biomethane plants in Peninsular Malaysia’s northern and east coast regions.

The investment will also enable the execution of a biomethane project in partnership with a leading oil and gas player, set to commence next year.

These efforts are expected to make a significant contribution to Malaysia’s renewable energy goals, drive sustainable growth, and strengthen the nation’s commitment to reducing carbon emissions, according to the statement.

VentureTECH chief executive officer Ahmad Redzuan Sidek said the investment reflects the company’s dedication to supporting forward-thinking businesses that promote both economic growth and environmental sustainability.

“MTC Orec’s expertise in bioenergy and its contributions to Malaysia’s renewable energy targets make it an ideal partner.

“This collaboration will not only reduce carbon emissions and promote renewable energy adoption, but also create opportunities for Bumiputera companies and local communities. Together, we are paving the way for a more sustainable and inclusive energy landscape,” said Ahmad Redzuan.

He further noted that the partnership will foster the creation of high-value jobs and nurture engineering expertise, particularly in rural and underserved areas.

“MTC Orec’s innovative projects align with Malaysia’s aspirations for sustainable and inclusive growth, driving positive societal and economic transformation,” he added.

Meanwhile, MTC Orec chairman Dr Norshah Hafeez Shuaib said the investment reflects the trust and confidence that VentureTECH has in the company’s vision and capabilities.

“It will empower us to scale our operations, deliver cutting-edge biomethane projects, and make meaningful contributions to environmental preservation and rural development.

“Together with VentureTECH, we are setting a new benchmark for sustainable energy solutions that will benefit generations to come,” he said.

The partnership underscores the shared vision of VentureTECH and MTC Orec to advance Malaysia’s renewable energy ecosystem.

By championing impactful biogas projects, the collaboration promises long-term environmental, economic, and social benefits while driving innovation and sustainability in Malaysia’s energy sector, paving the way for a greener, more inclusive future.

MTC Orec is a local engineering company specialising in the bioenergy sector.

MTC Orec is a renowned leader in the design, engineering, procurement, construction, and commissioning (EPCC) of biogas facilities, with a proven track record in converting waste into renewable energy.

Notably, the company developed one of the first palm oil mill effluent (POME)-based biomethane plants to directly inject biomethane into Malaysia’s national gas pipeline, underscoring its leadership in aligning innovative solutions with Malaysia’s sustainability agenda.

Building on its successful collaborations with clients such as Gas Malaysia, MTC Orec is expanding its operations with four additional bioenergy plants under development across Johor and the northern region of Peninsular Malaysia.

These projects are crucial in addressing environmental challenges, including waste management and greenhouse gas emissions, while creating economic opportunities for local communities.

Meanwhile, VentureTECH is a government-backed impact investment company focused on catalysing the growth of local industries, particularly Bumiputera, in high-value and high-technology sectors through equity investment.

Source: Bernama

VentureTECH, MTC Orec partner to accelerate biomethane projects in Malaysia

Selangor has reaffirmed its position as the leading state in investment performance, recording approved investments of RM66.8 billion between January and September.

Selangor State Executive Councillor for Investment, Trade and Mobility Ng Sze Han said the positive investment performance showcases the vibrancy of Selangor’s industrial ecosystem, technological capabilities and competitive strengths in the manufacturing and services sectors.

Domestic investments accounted for the majority of the approved investments at 68.3% or RM45.6 billion, while foreign investments contributed 31.7% or RM21.2 billion.

Both domestic and foreign investments demonstrated remarkable growth, with domestic investments surging 74%, from RM26.2 billion, and foreign investments increasing by 68%, compared to RM12.5 billion in the same corresponding period last year.

During this period, Selangor attracted significant foreign investments, with the United States leading the contributions with RM4.8 billion, followed by Singapore RM1.8 billion, China RM1.76 billion, Japan RM564.6 million and Germany RM421.3 million.

A total of 1,371 projects were approved in Selangor, including 253 manufacturing projects and 1,116 services projects.

These projects are expected to create about 50,222 potential job opportunities, a substantial increase from the 997 approved projects and 23,060 potential job opportunities recorded in the same period last year.

The services sector continues to be the key driver of Selangor’s investment performance, with major contributions from sub-sectors such as information and communication, real estate, support services, transport services, and distributive trade.

Leading subsectors such as electrical and electronics, transport equipment, fabricated metal products, non-metallic mineral products, and machinery equipment contributed to the manufacturing sector’s strong investment performance. This underscores the sector’s resilience and continued growth.

“Selangor has certainly validated its case as a premier and attractive destination for investors. The future looks bright for Selangor, and we hope the upward momentum to continue and yield positive full-year results for 2024,“ Ng said.

Source: The Sun

Selangor outpaces other states with RM66.8b approved investments in January-September

Industrial automation and power systems provider Swift Energy Technology Bhd (SET) aims to increase export growth to 80% from the current 60% after its listing on Bursa Malaysia Securities’ ACE Market scheduled for Jan 8, 2025.

Tan also shared SET’s plans to venture into other regions, including the United Arab Emirates (UAE) and Qatar.

“The government has been instrumental in supporting us through initiatives like Matrade’s sponsorship for ADIPEC exhibitions and mid-tier company training. These efforts have helped us secure partnerships, such as with UAE-based Suwaidi Engineering,“ said Tan.

He said SET hopes to develop new products that can help address the Middle East market with the hotter ambient temperature.

“Currently, most of our projects cater to Asean and Asia-Pacific, where temperatures do not exceed 40°C. In the Middle East, temperatures range from 40°C to 55°C. Products for these conditions require special testing to ensure durability. We plan to acquire a temperature chamber simulating 55°C. Testing products in this environment will provide valuable data for this significant market,“ Tan explained.

Tan disclosed that Swift Energy Technology plans to expand operations in Indonesia.

“Indonesia is projected to become the sixth-largest economy globally and has the fourth-largest population. They demand food-related products like cooking oil, flour, sugar, and biodiesel, driven by Go Green initiatives requiring a 10% biofuel mix. It’s a vast market.”

He said SET, led by COO Chin Saw Yong, has been serving Indonesia since 2000. The company now has 300-400 installation bases and plans to address its existing markets while exploring new opportunities.

“SET’s collaboration with PT Sutrako, a specialist in offshore MCM maintenance projects, connects the company with Pertamina, Indonesia’s national oil company. With this support, we hope for expansion beyond Malaysia and Thailand,“ Chin said.

Additionally, Tan said, SET’s focus on digitalisation and continuous training has enabled the company to maintain a competitive edge in the industrial automation and power systems market.

“The ACE Market listing will provide us with the resources needed to invest in research and development, talent acquisition, and modern facilities. Currently, we have a complete range, and we hope during this one, two years ahead, we can focus on enhancing the current offering with a higher rating, with a wider coverage,“ said Tan.

Source: The Sun

Swift Energy aims to expand international footprint, boost export growth to 80% post-IPO

NOTWITHSTANDING the growth in the electronics manufacturing services (EMS) sector amid improved global demand and the increasing outsourcing trend, EMS companies on Bursa Malaysia have turned in a mixed performance owing to rising costs, high inflation and supply chain disruptions.

The movements in the share prices of closely followed EMS counters have reflected the developments in the companies.

For instance, Johor-based SKP Resources Bhd, V.S. Industry Bhd, Penang-based NationGate Holdings Bhd and P.I.E. Industrial Bhd have seen their share prices soar between 47% and 76% year to date (YTD).

Aurelius Technologies Bhd (KL:AURE) and EG Industries Bhd, both headquartered in Kedah, are up 29% and 51% respectively. But ATA IMS Bhd and JHM Consolidation Bhd are down 8% and 36% respectively.

“EMS players have corrected over the past year and the market has already adjusted for the weak outlook throughout the year. The market is now looking for recovery in this sector and we believe it will come. It’s a matter of when,” TA Investment Management Bhd chief investment officer Choo Swee Kee tells The Edge.

“EMS players ride the global consumer consumption demand. Hence, if global economic growth continues to chug along, demand for EMS services will be sustained. Other than the basic demand-supply dynamic, the current trend to diversify production due to China+1 or Taiwan+1 will benefit Malaysia’s EMS players and we expect this momentum to pick up in 2025. Overall, we are positive on EMS players in 2025.”

For SKP Resources, a recovery in consumer demand has given the electrical and electronics plastics maker a 27% year-on-year (y-o-y) improvement in its net profit to RM34.35 million for its second quarter ended Sept 30, 2024 (2QFY2025), on 22.2% higher revenue of RM635.29 million from RM519.91 million last year.

The company, which is a contract manufacturer for British consumer goods company Dyson Ltd in Malaysia, however, revealed in a statement that it is operating in a challenging business landscape of high inflation that has been weighing on production costs. In addition, it conceded that it is mindful of its heavy reliance on “a major customer” and is seeking to diversify its customer base.

Dyson recently said it intends to streamline its business in the region, including redeploying 47 employees from its advanced manufacturing facility to the global development campus in Johor. This is a move which TA Securities senior analyst Tony Chan Mun Chun believes could be intended for internal resource restructuring to boost efficiency rather than to cut down on its business here.

“We have confirmed with some local EMS companies that the order visibility from Customer D remains very healthy [with] no sign of slowing down. In fact, Customer D is looking to transfer some products from Mexico to Malaysia as it is planning to scale down the operations there,” Chan tells The Edge.

“Dyson’s move will benefit Dyson’s contractors in Malaysia with more business potential. However, we prefer to look way beyond Dyson for better diversification.”

Battling lower sales on a y-o-y basis as well as beaten down margins due to a softer US dollar, V.S. Industry posted a 37.5% y-o-y decline in net profit to RM30.6 million for the first quarter ended Oct 31, 2024 (1QFY2025).

According to PublicInvest Research’s Dec 9 note, V.S. Industry’s US-based customer was undergoing inventory rationalisation, resulting in a slowdown in production until the end of December.

“V.S. Industry’s management has revised its sales growth target higher to 6%, while net margin is estimated to come in the range of 4.8% to 5%, albeit subject to foreign exchange (forex) movements and labour costs,” said the research house, which is sanguine on the company’s outlook. It believes that stronger sales of RM300 million can be expected from a particular customer after the company bagged a contract for two new models in Malaysia.

“Meanwhile, the majority of V.S. Industry’s customers have given positive feedback on their respective outlook, led by more product launches. There is also the possibility of more products being transferred from Mexico to Malaysia by the said customer as it plans to shut down operations there. The strong earnings recovery is only expected to kick in by the second half,” says PublicInvest Research, which is maintaining its “trading buy” call on the stock with an unchanged target price (TP) of RM1.18 based on 15 times FY2026 forecast earnings per share.

To manage its expectations for the year ahead, RHB Research cut its earnings forecast for V.S. Industry’s financial year ending July 31, 2025 (FY2025) by 14% to RM233 million. But it maintained its forecasts for FY2026 and FY2027 as it viewed the Johor-based player’s job order prospects positively and foresees a recovery in demand and product launches lined up by key customers.

Meanwhile, there has been considerable scrutiny of Cape EMS Bhd’s prospects as the ACE Market-listed player’s share price was nearly halved to 41 sen in the first week of August following a slew of margin calls suffered by its group CEO and managing director Christina Tee. Her stake was slashed by more than a third from 38.4% to 11.1%, purportedly on the back of financial misguidance by the management to some institutional investors, leading to the selldown.

Cape EMS’ performance did not help its share price as it slipped into the red with a headline net loss of RM19 million in the third quarter ended Sept 30, 2024 (3Q2024), impacted by a RM12.6 million unrealised forex loss, RM4 million amortisation of intangible asset and RM2.2 million impairment on trade receivables. Following the results announcement, the counter sank further to 36 sen from 39 sen.

Cape EMS’ beaten down share price has reportedly drawn investment interest from the likes of Ekuiti Nasional Bhd (Ekuinas), which is believed to be mulling over a stake in the Johor-based EMS player.

In addition, businessman Chung Chee Yang started to accumulate Cape EMS shares on the open market and emerged as a substantial shareholder on Nov 13. As at Dec 10, he increased his stake to 8.3%, or 82 million shares, in the company.

Meanwhile, the Employees Provident Fund, which had emerged as a substantial shareholder on July 26, ceased to be one on Aug 15 after selling a portion of its shares.

Another player attracting interest is Penang-based EMS provider NationGate because of its improved bottom line. For the third quarter ended Sept 30, 2024, it saw a net profit of RM46.6 million on the back of RM1.4 billion in turnover, primarily driven by its data computing segment.

Interestingly, there have been concerns about the company’s future profitability as its net profit was heavily influenced by unrealised forex gains amounting to RM76.2 million for the quarter and RM142 million for the first nine months of the year. Had it not been for the forex gains, the company’s core operations might have faced a net loss.

Nevertheless, Kenanga Research believes the group is well positioned to benefit from the strong artificial intelligence (AI) server demand in the data computing segment and is poised for a recovery in its networking and telco divisions in FY2025. The research house has an “outperform call” on the counter with a TP of RM2.30 based on an unchanged FY2025F PER of 25 times.

“This represents a 30% premium to peers’ forward mean, justified by the group’s favourable exposure to the fast-growing networking product segment and its advanced capabilities, which yield better margins as well as enhance customer stickiness,” it says.

EMS players part of tech up cycle

Analysts have predicted for some time that the technology sector is poised for an up cycle starting in the second half of this year.

AmInvestment Bank Research said in a Dec 4 report that “interest will return to Malaysia Tech in 2025, given its relatively low holdings in investor portfolios, reasonable valuations and still positive long-term structural prospects”.

“While there is value, we advise investors to be selective, as high earnings expectations remain a key risk. We favour stocks with earnings certainty (via secured orders) or those that have been oversold, provided they have a clear strategy and long-term vision. The conclusion of the US elections and prospects of higher tariffs are a structural tailwind for Malaysia as local companies can benefit from supply chain relocation activities,” said the research house, which is “overweight” on the technology sector.

It has “buy” calls on ViTrox Corp Bhd, V.S. Industry, Malaysian Pacific Industries Bhd and Greatech Technology Bhd, with TPs of RM4.75, RM1.45 (from RM1.05), RM33.10 (from RM38) and RM2.60 (from RM5.53) respectively. It has “hold” calls for Pentamaster Corp Bhd and Inari Amertron Bhd, with TPs of RM3.50 and RM2.40 (from RM4.36) respectively.

As for the susceptibility of consumer-centric EMS companies to a potential economic slowdown on the back of weaker consumer sentiment, Choo says: “Our base case scenario is that with [US president-elect Donald] Trump in office, there will not be a US recession in 2025 and consumer demand should remain sustained. We are positive on the EMS sector due to its potential business recovery, corrected share price and the added factor of taking market share from China and Taiwan contractors.” 

Source: The Edge Malaysia

EMS players navigate uphill path despite tech up cycle

Eco World Development Group Bhd’s (EcoWorld) new collaboration with SD Guthrie Bhd and NS Corp Sdn Bhd to jointly develop an industrial park in Negri Sembilan is a “win-win” deal for all parties involved, according to analysts.

The 1,166-acre site, located in Bukit Pelandok within the Malaysian Vision Valley 2.0 and close to Kuala Lumpur International Airport, has an estimated gross development value of RM2.9bil.

“We view this positively as the strategic partnership leverages the unique strengths of both SD Guthrie and EcoWorld, driving mutual growth and long-term value creation,” said Maybank Investment Bank (Maybank IB) Research in a report.

As one of the largest landowners in Malaysia, the research house noted that SD Guthrie brings valuable “hardware” in the form of its extensive landbank.

Meanwhile, EcoWorld, as a leading property developer in the country with a strong brand presence and proven track record, plays a crucial role in unlocking the full potential of this landbank.

Maybank IB Research believed that EcoWorld’s strong branding will significantly enhance the value of the property, making it more appealing and marketable to potential business owners and investors.

Pending further details, Maybank IB Research maintained its earnings forecasts for EcoWorld.

Maybank IB Research has a “buy” call on EcoWorld with an unchanged target price (TP) of RM2.25 per share.

MIDF Research, in a note to clients yesterday, stated it was neutral to positive on the collaboration, which will expand EcoWorld’s industrial property development portfolio.

It highlighted that the property developer has been looking to expand its industrial property division due to its expertise in this segment and high demand for industrial properties in Malaysia.

The research house maintained a “neutral” call on the stock with an unchanged TP of RM2.01 per share. “We think the positives have been largely priced in as EcoWorld is trading above its latest net tangible asset value of RM1.66 per share,” it said.

Source: The Star

EcoWorld’s industrial park deal a ‘win-win’ for all

Penang’s strategic position as a global technology hub, coupled with its strong manufacturing capabilities and forward-thinking policies, positions the state as a key player in driving Malaysia’s high-tech export growth to the United States.

To explore strategies for navigating US trade dynamics and seizing market opportunities, the Global Navigator Series Penang will be held on Jan 7, 2025, at St Giles Wembley, Penang.

Themed “Expanding Horizons: Strategies for US Export Growth,” the event will feature a fireside chat between Standard Chartered Malaysia chief executive officer Mak Joon Nien and Penang Chief Minister Chow Kon Yeow, followed by a panel session and closing presentation.

The aim is to empower Malaysian exporters with the knowledge needed to make informed decisions and achieve sustained success in the competitive US market.

During the fireside chat, Chow will explore Penang’s unique advantages for exporters, sharing the state’s strategic vision and long-term plans to maintain its leadership in high-tech exports.

He will highlight Penang’s strengths in advanced manufacturing, research and development, and its ability to produce high-value products tailored for the United States market.

The conversation will further delve into the Penang government’s initiatives to enhance infrastructure, upskill talent and expand industrial zones to bolster its export ecosystem.

Additionally, untapped sectors such as halal and kosher products, professional services, and advanced medical technology – industries with significant growth potential for exporters – will be discussed.

Chow has been instrumental in driving the state’s progress, with a strong focus on industrial and infrastructure development.

His vision centres on fostering a robust ecosystem that empowers businesses and promotes sustainable economic growth.

A seasoned banker with extensive experience in investment and corporate banking, Mak brings over 27 years of esteemed service with Standard Chartered to the table.

In a separate session, participants will hear from Jonathan Koh, an economist and foreign-exchange (forex) analyst in Asia for Standard Chartered Singapore.

His presentation, titled “US & Malaysia’s Macroeconomic Outlook 2025”, will provide valuable insights into the evolving economic landscape and its potential impact on trade, investments and forex markets in the year ahead.

Attendees can expect actionable takeaways to navigate the complexities of global economic shifts effectively.

Join the Global Navigator Series

An initiative by the Export Excellence Awards (EEA) 2024, the Global Navigator Series will be held on Jan 7, 2025 at 2pm.

It is open to businesses. To register, visit this page.

The EEA 2024 is organised by Star Media Group Bhd, in partnership with Standard Chartered Malaysia, with PKT Logistics Group as a co-sponsor, and Malaysia External Trade Development Corp as patron.

The programme is audited by BDO.

Submissions for the awards are open now until Feb 13, 2025.

Source: The Star

Penang drives high-tech export growth to the US

The spent catalyst recycling facility, which is the first of its kind in Southeast Asia at the Gebeng Industrial Park here, will commence operations in early 2027.

The state-of-the-art metal recovery centre will be built by Toyo Engineering & Construction Sdn Bhd (Toyo-Malaysia), a subsidiary of Toyo Engineering Corporation. The project was awarded by Taiyo Koko Malaysia Sdn Bhd (Taiyo Koko), a subsidiary of Taiyo Koko Co Ltd, Japan.

Taiyo Koko Co Ltd president Kazufumi Suzuki described the strategic collaboration to set up the facility here as a significant milestone in advancing environmental sustainability and fostering a circular economy in Malaysia.

The facility will focus on the efficient recycling of spent catalysts, which are a waste material produced from the cracking of petroleum in oil refineries. The project, which is our first overseas expansion, aims to significantly reduce the environmental impact of spent catalyst disposal by recovering valuable metals and reducing waste.

Apart from enhancing recycling capabilities, the facility aspires to set a new benchmark for environmental stewardship and sustainable practices, driving innovation and responsibility in the recycling sector,” he said during the groundbreaking ceremony of the new facility at a hotel here yesterdaytoday.

Pahang Investment, Industries, Science, Technology and Innovation Committee chairman Datuk Mohamad Nizar Najib officiated at the eventfacility’s groundbreaking  here.

Meanwhile, Suzuki said the engineering, procurement, and construction (EPC) contract for the facility was signed on Nov 27 this year and followed by the groundbreaking ceremony yesterdaytoday (Dec 18).

“Toyo-Malaysia has always been supporting Taiyo Koko to realise their first overseas expansions over the years since its conceptual planning phase. The commercial operation for the facility in Gebeng facility is targeted in the first quarter of 2027.” he said.

Founded in 1949, Suzuki said Taiyo Koko has displayed a continuous growth in the manufacturing of rare metals and rare earths since the commercialisation of its proprietary technology to recover rare metals from spent catalysts across Japan in 1978.

“The company’s innovative processes enable the extraction and recovery of molybdenum and vanadium from heavy fuel desulfurization desulfurisation catalysts used at oil refineries.

“Taiyo Koko’s recycle system does not only safeguard the environment but also ensures a stable supply of precious metals through advanced recovery and purification technologies,”  he said.

“The approach supports resource conservation and enhances supply chain stability on a global scale. The facility here demonstrates its commitment in sharing its expertise and driving sustainable development internationally.” he said.

Toyo-Malaysia, a prominent engineering firm, is dedicated to executing projects that adhere to the highest standards of safety, quality, and sustainability.

Meanwhile, Nizar expressed his excitement with Taiyo Koko for selecting Pahang to house their spent catalyst recycling facility that would transform waste streams into sustainable solutions.

“We welcome the investment from Japan, which will not only ensure economic spillovers but create job opportunities and pave the way for more Japanese investors to set up businesses in Pahang,” he said.

Source: NST

Taiyo Koko to build metal recovery centre

Xindeco IoT Malaysia Sdn Bhd has inaugurated its cutting-edge radio frequency identification (RFID) manufacturing facility in Nilai, Negeri Sembilan, which stands as the largest RFID production hub in Southeast Asia.

In a joint statement, the Malaysian Investment Development Authority (MIDA) and Xindeco IoT said the strategic investment positions Malaysia as a key player in the global RFID technology landscape.

They said the 30,000-square-foot plant, located in the Arab Malaysian Industrial Park, is capable of producing one billion RFID tags annually.

“These solution will serve various sectors, including retail, healthcare, logistics, and supply chain management across the Asia Pacic region,” they said.

MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the investment by Xindeco IoT demonstrates the confidence global companies have in Malaysia’s technological capabilities and its skilled workforce.

“This new RFID manufacturing facility strengthens Malaysia’s position in the global supply chain and creates high-value jobs for Malaysians.

“The facility aligns perfectly with our New Industrial Master Plan (NIMP) 2030, supporting our goal to become a regional technology leader,” he said.

Xindeco IoT is a subsidiary of Chinese tech (technology) giant Xiamen Xindeco IoT Technology Co Ltd.

Source: Bernama

Xindeco IoT inaugurates RFID manufacturing plant in Nilai

AS competition in the artificial intelligence (AI) chip market heats up among semiconductor giants such as Nvidia Corp, Advanced Micro Devices Inc (AMD) and Intel Corp, one company stands to gain regardless of who the winner of the chip battle is — Micron Technology Inc.

Positioned as a critical supplier of memory and storage solutions, American chip giant Micron benefits from the industry-wide demand for the high-performance components essential to AI systems.

Amarjit Singh Sandhu, corporate vice-president of assembly and test NAND operations for Micron (Singapore and Malaysia), says devices such as smartphones and laptops need different types of semiconductors to build a system.

“Imagine this: You need a set of eyes and a set of ears, you need a brain, and you need to signal where the information needs to go. Your smartphone receives and interacts with various signals, from the global positioning system (GPS), Bluetooth, WiFi to near-field communication (NFC),” Amarjit tells The Edge.

“For these signals to come into your phone, you need to have chips that can receive and convert them from analogue to digital. So, different semiconductor giants will build different specialised chips.”

He adds that the “brain” tells the signal to be stored at a certain location. When that signal is stored, Micron’s product comes into play. The “brain” is what Intel, AMD and Nvidia build, whereas Micron makes memory and storage chips.

“Micron is not competing with them. Instead, we are complementing each other because any ‘brain’ would need temporary memory and storage. Obviously, Nvidia has been commanding the lion’s share, while AMD and Intel are playing catch-up.

“All of us have our own set of challenges, but the way I see it, Micron could complement all of them. In other words, no matter who wins, we win as well. After all, they need memory, and they need storage,” he says.

US$2 bil invested in Penang

In November 2018, Micron announced a US$1 billion greenfield investment plan over a span of 10 years for its new Centre of Excellence (CoE) for solid-state drive (SSD) assembly and testing in Batu Kawan Industrial Park, Penang.

In the fourth quarter of 2022, the company announced a brownfield investment of US$1 billion for its second factory at the Batu Kawan site, which was officially opened in October 2023.

“Our total built-up of 1.5 million sq ft [combining the first and second factories] is almost fully occupied to support our future growth. Simply put, we are operating at an optimal level,” says Amarjit.

He observes that the large-scale cloud service providers, also known as hyperscalers, are building up huge data centres primarily to support the AI drive.

“Obviously, AI is very much the buzzword of today. I have been listening to the earnings calls of these hyperscalers recently, and I think all of them will continue to invest not just in Malaysia but also many parts of the world.”

He says these investment plans suggest that AI is “very hungry” for data centres, which will lead to a significant increase in workloads. However, the current infrastructure falls short of what is required.

“Looking at the amount of money that has been pumped in and is going to be pumped in, I think the data centre and AI boom is going to go on for a while,” he says.

Amarjit acknowledges that because Micron is a multinational corporation (MNC), Micron Malaysia lacks visibility of where its end-customers are.

“We make the products and sell them, but we do not know where they will end up. But the fact is that the trend of building more data centres everywhere is not a nice-to-have; it is a must-have. The UK, Germany and Spain are supporting more data centres.

“So, it is more important for Micron to look at this trend globally. With the data centre and AI boom, the world would need more memory and storage chips, including high-bandwidth memory (HBM). We are here to support the AI growth, whether or not the data centres will be built in Malaysia,” he stresses.

Apart from HBM, Micron could also supply enterprise SSDs and some specific memory modules as well as other memory and storage products to the data centres.

“In Malaysia, we build SSDs, and our Batu Kawan site is a CoE for SSD. So, we should benefit from the data centre boom,” Amarjit says.

Asked about the possible impact of the Malaysian government’s review of tax incentives for data centres, Amarjit reiterates that although Micron builds its products in Malaysia, they are sold to hyperscalers worldwide.

He says: “We welcome data centre investments in Malaysia, as we will benefit from the AI growth. But even if these investments do go elsewhere, we will still continue to benefit because these data centres have to be built in other countries, if not Malaysia.”

Notably, Nikkei Asia had in June reported that Micron was considering building HBM in Malaysia to capture the AI boom. Amarjit says: “I think Micron will make our announcement accordingly, but this [news] is definitely not announced by Micron. So, we’ll avoid commenting on this information.”

Nevertheless, he points out that HBM is not the only product that supports AI.

“Today, Micron produces all of our HBM in Taiwan. As the need and demand grow, we will review and decide where else our HBM operations need to go. That’s the situation. We have not made any decision.

“One thing is for sure: We have a good range of memory modules to support the AI market. Micron is well-positioned to capture these opportunities.”

‘The best is yet to come’

Amarjit likens AI to the advent of the internet, recalling that when it emerged in the late 20th century, there were doubts about its potential to change the world. Today, the world stands at a similar juncture, with AI poised to play that transformative role. “It’s a long runway and that’s why we keep saying that, for memory companies like us, the best is yet to come because AI will drive a new cycle.

“Whatever we have been supplying in the past — whether for phones, laptops, PCs and everything for industry, for data centres — will still be there. But this is probably a brand-new era for us to cater for the needs and wants of the industry.”

Amarjit believes AI is where Micron positions itself with new products to support, and it will be the group’s new revenue stream in the coming years. “We are probably in a good place, where our business of the past is still there and we have AI as the next big thing.”

Like other global chipmakers, Micron has been navigating the geopolitical tensions between the US and China for the past eight years. In addition, the Covid-19 pandemic has further strained the overall supply chain.

Amarjit says Micron has positioned its manufacturing in different geographical locations to mitigate shocks.

“So far, it has worked well for us. We did not miss any customer demand during Covid. I would probably say this tension is going to be here to stay. For most industries, I think it’s a new normal and we will have to adjust to it.”

Fortunately, he adds, Malaysia has been very friendly to most countries, and that is very helpful for companies such as Micron.

“On the ground, we don’t feel any negative impact from the trade war because the government has set up an environment that is very business-friendly.”

Bridging the talent gap

Micron started its first facility in Penang in 2019. Today, with two facilities, the group employs about 5,000 people, including operators, technicians, engineers and research and development (R&D) staff.

“On average, we hired 1,000 people every year over the past five years. At this point in time, our workforce of 5,000 is quite sufficient to meet the needs of our two facilities. But we will continue to hire good talents [as the need arises],” says Amarjit, adding that the group has relatively different hiring strategies compared with other companies.

For the hiring of operators, Micron engages with technical and vocational education and training (TVET) schemes, government agencies and industry institutions. For the hiring of technicians, the group engages with the polytechnics.

“The biggest challenge is always engineers. Like many companies, we also engage with universities to attract human talent. At the same time, we also work on the non-traditional fronts. For instance, we are trying to encourage women engineers,” he says.

Micron is a founding member of the Society of Women Engineers (SWE) in Malaysia. The group is working with industry partners to get more women interested in engineering.

“Hopefully, through SWE, the experienced lady engineers will come together to encourage and excite the younger girls about engineering as well as provide them with mentorships.

“Meanwhile, we are also trying to get women, who had taken one or two years off from their working life for family reasons or because of personal challenges, to return to the workforce. All these efforts can help bridge the talent gap,” says Amarjit.

Another non-traditional path that Micron is taking is that it is the first company in Malaysia to engage a uniformed group, specifically military veterans.

“We have given talks to 500 former military folk and recently hired 25. We are trying to get more of them on board; we are identifying suitable job positions for them so that they can fit into our organisation.

“For example, some veterans from the Air Force dealt with aircraft. So, if we give them six months of training, they could be good technicians or supervisors. Overall, Micron has a fair representation with respect to gender, race and ethnicity,” Amarjit says. 

Source: The Edge Malaysia

Micron stands to gain amid AI chip battle

The construction of a spent catalyst recycling facility at the Gebeng Industrial Park here marks a significant step in managing metal-based scheduled waste.

State investment, industries, science, technology, and innovation committee chairman Datuk Mohamad Nizar Najib said that the facility, spearheaded by Taiyo Koko Co., Ltd., would be the first of its kind in Southeast Asia.

“This land in Gebeng will soon be transformed into a state-of-the-art metal recovery centre. The project, owned by Taiyo Koko, has Toyo Engineering and Construction Sdn Bhd appointed as the main contractor,” he said.

Once operational in 2027, the facility will treat spent catalysts — waste produced from the cracking of petroleum at oil refineries in Pengerang, Johor.

These materials will be recycled and exported to Japan for reuse in the petrochemical and steel industries.

“Twelve years in the spent catalysts recycling industry, Taiyo Koko has commercialised proprietary technology for recovering rare metals from spent catalysts for about 50 years,” he said at a press conference after the ground breaking ceremony here today.

Also present was Taiyo Koko Co., Ltd. president Kazufumi Suzuki.

Nizar said that the facility would open new doors for job creation, economic growth, and the recruitment of fresh talents from across Pahang.

“Foreign direct investment will create opportunities for local vendors and suppliers to be part of the operations. The Pahang government welcomes Japan’s investment and hopes it will attract more investors from the country to set up plants or businesses here,” he said.

“The recycling of spent catalysts not only promotes sustainability and reduces harmful emissions but also recovers valuable metals for reuse,” he added.

Suzuki described the establishment of the facility in Gebeng as Taiyo Koko’s first overseas expansion, marking a significant milestone in advancing environmental sustainability.

He said that the collaboration reflected Toyo-Malaysia’s commitment to innovation and its vision of contributing to a greener, more sustainable future.

Source: NST

Southeast Asia’s 1st spent catalyst recycling facility to open in Gebeng

Malaysia has urged investors, particularly from China, to explore the vast opportunities in the country’s agri-commodities sector, with crude palm oil identified as a key area for growth.

In a speech at the Malaysia-China Summit 2024 Leadership Conference, Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani highlighted the many potential collaborations between the two nations.

He said that successful partnerships in the palm oil sector would be most effective when founded in Malaysia, where feedstock is plentiful, paired with China’s extensive market network.

Johari outlined three key areas for investment: biomass and biogas energy, sustainable aviation fuel (SAF), and oleochemical plants in Sabah and Sarawak.

The government is keen to leverage the circular economy concept within the palm oil industry, converting waste into green energy via biomass and biogas.

He noted that mills with a capacity of 60 tonnes per hour could generate between five and seven megawatts (MW) of energy. If all mills in the country adopted biomass and biogas facilities, they could potentially generate around 2,200 MW of energy across over 440 locations.

On SAF, Johari announced plans to make sustainable jet fuel mandatory for all flights to Malaysia by 2027, emphasising the country’s potential as a major player in SAF production due to its abundant feedstock resources, strong biofield industry, and close cooperation with the oil and gas sector.

Additionally, 55 per cent of Malaysia’s palm oil planted area is in Sabah (1.5 million hectares) and Sarawak (1.6 million hectares).

However, there are no oleochemical plants in either state, and Johari welcomed investors to establish such facilities in both locations.

He also encouraged investment in upgrading existing palm oil mills, many of which are outdated.

With around 448 mills in operation as of June 2024, Johari noted that mill owners could collaborate with investors to modernise operations, incorporating technologies like AI to improve efficiency, reduce oil losses, and lessen reliance on labour.

The minister emphasised that Malaysia’s palm oil industry benefits from a well-established ecosystem, including a thriving research and development environment, a robust network of mills and refineries, and a trusted sustainability certification scheme.

By investing close to the source, he assured potential investors of secure feedstock supply.

Looking ahead, Johari stressed the continued potential for collaboration between Malaysia and China in the palm oil sector, particularly in light of global economic uncertainties and rising geopolitical risks.

He highlighted Malaysia’s well-regulated and stable palm oil industry, which offers excellent infrastructure and sustainability guarantees through the Malaysian Sustainable Palm Oil certification scheme.

Source: NST

Malaysia courts Chinese investment in palm oil

Malaysia’s electric vehicle (EV) industry is accelerating, with over 100,000 electrified vehicles recorded and more than 3,300 charging stations established nationwide to date, positioning the country as a key regional hub for EV innovation.

The government’s commitment aligns with its ambitious Net Zero Goals for 2050, as it strengthens collaboration with China to drive manufacturing, research, and sustainable growth in the automotive sector, said Malaysia Automotive Robotics and IoT Institute (MARii) chief operating officer Mohd Sharulnizam Sarip.

Speaking at the Malaysia-China EV Forum, he highlighted the nation’s strategic initiatives to build a robust EV ecosystem via collaboration, including memorandums of understanding (MoUs) with various Chinese organisations focusing on joint ventures in manufacturing, research and development, and technology transfer.

“Such efforts aim to elevate Malaysia’s role in the regional and global EV value chain. The National Automotive Policy (NAP) 2030 remains the cornerstone of Malaysia’s EV agenda, promoting the production of eco-friendly vehicles, battery recycling facilities, and infrastructure development,” he said.

The forum, held in conjunction with the Malaysia-China Summit 2024, from Dec 17-19, was organised by China EV100, a third-party think tank, alongside Qube Integrated Malaysia Sdn Bhd and the Malaysian Chamber of Commerce China.

Mohd Sharulnizam said MARii has outlined plans to develop EV battery recycling capabilities, including hydrometallurgy facilities in Perak, to support sustainable resource management in the growing EV sector.

He noted that China’s involvement in Malaysia’s automotive ecosystem brings advanced technologies and investment into the local market, boosting demand in the electronics and electrical (E&E) sector.

“These initiatives are expected to complement Malaysia’s standing as the world’s sixth-largest semiconductor exporter, further enhancing high-value manufacturing activities such as wafer fabrication and integrated circuit development.

“With growing government support, industry participation, and international collaborations, Malaysia is well on track to becoming a leading EV innovation hub in Southeast Asia,” he said.

He noted that the ongoing partnerships and sustainable practices are expected to foster a cleaner, technology-driven future, benefitting Malaysia and its global partners.

Meanwhile, during a panel session, Proton Holdings Bhd senior director of corporate strategy Yusri Yusuf emphasised the critical need for strong partnerships to ensure the success of EV adoption, highlighting collaboration as key to addressing challenges in areas such as charging applications and upstream component development

“To accelerate the industrialisation of EVs in Malaysia, we need reliable partners for technology, business, and infrastructure,” he said.

Highlighting Proton’s journey in EV development since 2009, Yusri said the company’s long-term commitment to this emerging sector, has positioned it to compete in the growing EV market, driven by supportive government policies and increasing consumer demand.

“Key areas such as technology integration, policy support, and industry expectations were also highlighted as central to driving EV industrialisation,” he added.

Yusri stressed the pivotal role of policies in encouraging EV adoption while meeting consumer expectations through collaborative development efforts.

Proton is committed to building a comprehensive EV ecosystem by partnering with industry players, including charging infrastructure and technology providers, following the launch of its first EV model, the EMAS 7, he added. 

Source: Bernama

Malaysia accelerates EV growth with China collaboration to boost regional hub ambitions

Worldwide Stainless Sdn Bhd has revitalised Malaysia’s stainless steel industry with its US$95 million (RM424.4 million) acquisition of Bahru Stainless Sdn Bhd.

The reopening of this iconic Pasir Gudang facility not only restores operations but positions Malaysia as a key player in the global stainless steel market.

“This acquisition is more than a restart. It’s a transformation,” said CEO Danny Tan. “We are combining innovation, sustainability, and efficiency to create a future-ready plant that meets global standards.”

Worldwide Stainless is implementing a streamlined production process to enhance efficiency and sustainability. This strategy aligns with its goal to make Bahru Stainless a leader in cold-rolled stainless steel manufacturing.

The plant’s annual capacity of 300,000 metric tons will be ramped up gradually, ensuring operational stability and quality consistency.

Tan explained, “This is not just a cosmetic overhaul. We’re investing in workforce upskilling and adopting innovative technologies to secure long-term growth. Bahru Stainless is set to be a global benchmark of excellence.”

The plant has rehired 90% of its retrenched workforce, reinstating skilled professionals with decades of expertise.

This rehiring underscores the company’s commitment to retaining talent and ensuring continuity in operations. Worldwide Stainless is focused on balancing domestic and international market demands.

As Malaysia’s sole producer of cold-rolled stainless steel, the company will support local industries, including construction, automotive, and manufacturing. Globally, it aims to penetrate high-growth markets in Europe, the US, and emerging regions.

“Our dual strategy ensures we contribute to Malaysia’s economy while expanding our footprint internationally,” said Tan. “We’re delivering quality products to meet the demands of diverse industries.”

The company is also diversifying its portfolio to include high-value sectors such as renewable energy, medical equipment, and advanced manufacturing. This strategic move positions Bahru Stainless to address the evolving needs of modern markets while enhancing its competitive edge.

The company is integrating eco-friendly practices into operations while fostering strategic alliances to promote Malaysia’s industrial capabilities on a global stage.

Participation in international trade exhibitions and collaborations with key players are paving the way for Bahru Stainless to become a symbol of reliability and innovation.

“We are committed to elevating Malaysia’s position in the global market,” said Tan. “Through quality, sustainability, and innovation, we aim to set new benchmarks in the stainless steel industry.”

Backed by AmBank Group, which financed 80% of the acquisition, Worldwide Stainless’ leadership team brings decades of expertise to this ambitious venture.

Their vision ensures Bahru Stainless’ resurgence as a symbol of Malaysia’s industrial prowess.

Source: The Sun

Worldwide Stainless revives Bahru Stainless with US$95m acquisition

Ningbo Deye Technology, a Chinese producer of power inverters, has announced plans to invest up to US$150 million (RM668 million) in a new manufacturing base for solar equipment in Malaysia.

In an exchange filing in Shanghai on Monday, the company revealed it will establish a subsidiary in Malaysia to produce solar photovoltaic (PV) equipment and energy storage products, according to a report published in South China Morning Post today.

A power inverter is a critical component of a solar panel system.

“With constant changes in the international situation and trade environment, the necessity of deploying overseas capacity is increasingly urgent,” the company stated.

“Setting up a subsidiary in Malaysia will help the company expand into overseas markets and respond to the potential adverse effects of the macro environment and international trade more flexibly.”

The investment, however, is subject to approvals from both the Chinese and Malaysian governments.

Chinese solar and electric vehicle (EV) companies have been looking to South-east Asia as a strategic hub to expand internationally and navigate trade restrictions imposed by the US and European Union.

These measures aim to protect local industries and curb the influx of lower-cost imports.

However, recent tariffs from Washington have added challenges.

The US imposed anti-dumping duties on solar products imported from four South-east Asian countries — Cambodia, Malaysia, Thailand, and Vietnam.

These anti-dumping duties cover solar cells and modules.

For example, Shanghai-based Jinko Solar faced duties of 21.31 per cent for products made in Malaysia and 56.51 per cent for goods from Vietnam.

Jiangsu-based Trina Solar received tariffs of 77.85 per cent for its Thailand-made products and 54.46 per cent for those manufactured in Vietnam.

These tariffs have created further uncertainty for Chinese solar companies, which control over 80 per cent of the global solar panel supply chain but are grappling with a domestic price war exacerbated by weak demand.

Gu Yu, deputy director of the Trade Remedy and Investigation Bureau under China’s Ministry of Commerce, recently addressed these challenges at an annual solar industry conference in Sichuan province.

“Geopolitical conflicts, protectionism, and the efforts of some countries to decouple from China are impacting the operation of global supply chains and trade systems,” Gu said.

He urged solar PV manufacturers to collaborate with local firms in Belt and Road Initiative countries, explore solar power project investments, and increase research and development to enhance global competitiveness.

Source: Malay Mail

Chinese solar giant Deye to invest over RM650m in Malaysia for solar equipment manufacturing

Companies in the manufacturing sector will continue to be exempted from a 80:20 employment requirement ratio until the multi-tier levy mechanism (MTLM) is fully implemented.

The Ministry of Investment, Trade, and Industry (MITI) said this extension provides flexibility for industries to adjust their workforce requirements more flexibly, without compromising the government’s goal of reducing dependence on foreign workers.

The extension was made taking into account various factors and feedback from the industry sector.

Human Resources Minister Steven Sim in response to a parliamentary question in December said, the multi-tier levy mechanism (MTLM) for all sectors, except plantation and agriculture, will be effective Jan 1, 2025.

“MITI will continue to focus on enhancing the skills of local workers as a key step to ensure that the local workforce can compete in an increasingly high-tech global economy.  “This skill enhancement aims to provide more capable workers who can contribute to dignified income and drive sustainable economic growth,” it said in a statement today.

Meanwhile, MITI also noted that it will continue to work with the industry to ensure the manufacturing sector can continue to grow sustainably and contribute to the country’s economic growth.

During the 2025 Budget presentation, the Prime Minister announced that the government would implement MTLM early next year to encourage automation and reduce dependence on foreign workers gradually.

For the manufacturing sector, MTLM will replace the 80:20 policy stipulated in the manufacturing license conditions.

The government also announced that levies collected would be channeled back to the industry.

It will be used to increase the use of technology and automation, improve productivity, reduce dependence on foreign workers, thereby contributing to Malaysia’s increased competitiveness globally.

Source: NST

MITI: Suspension of foreign worker ratio in manufacturing extended until multi-tier levy is enforced

EVE Energy Malaysia Sdn Bhd (EVE), a global lithium battery manufacturer, inaugurated its new manufacturing facility in Padang Meha, Kedah, which will serve customers in the power tool and electric two-wheeler sectors across Southeast Asia, Europe, and North America.

In a joint statement between the Malaysian Investment Development Authority (MIDA) and EVE today, they said that when fully operational, the facility will employ 2,000 Malaysians with a majority in technical field background.

MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid congratulated the company on its impressive milestone, stating “we extend our congratulations on the significant breakthrough achieved in the construction of the Malaysian factory. In the face of the increasingly severe challenges posed by climate change, energy transition and low-carbon development will be at the core of future industries.”

He said “the Malaysian government places great importance on this issue and is moving forward in partnership with EVE Energy Co Ltd.”

“Together, we are committed to promoting local economic growth and technological innovation while driving Malaysia’s energy transition and sustainable development,” he added.

EVE Energy senior vice president Vincent Wong noted that the Malaysia plant had been completed in just 16 months since the groundbreaking in August 2023, marking significant progress in bringing equipment into the field.

“It is anticipated to commence operations in the first quarter of 2025 and will serve as the first overseas factory to achieve mass production and delivery of EVE Energy,” the statement said.

EVE Energy co-founder and CEO Liu Jianhua said “the construction of EVE Energy’s Malaysian factory will further promote cooperation and exchange between China and Malaysia in the field of new energy,” he said.

Liu noted that the Malaysian factory already possesses mature technical reserves and production capabilities and that once completed and operational, EVE Energy’s ability to “manufacture globally, deliver globally, and cooperate globally” will be significantly enhanced, better meeting the delivery and service demands of clients worldwide.

At the ceremony, EVE Energy Co Ltd signed strategic cooperation agreements with several companies such as Greenworks, Chervon, and JTI, “marking a significant step forward in their partnership,“ according to the statement.

The launching ceremony was attended by Huizhou Municipal Government Deputy Mayor Li Junling, Sikh Shamsul Ibrahim, Kedah State Executive Council member Professor Dr Haim Hilman Abdullah, and Liu Jianhua.

Source: Bernama

EVE Energy Malaysia launches advanced battery manufacturing facility in Kedah

The construction of MTD Nexus 28 Industrial Park, characterised by modern and sophisticated industrial premises, is expected to boost economic development in Melaka, particularly in attracting more investors from outside and within the state.

MTD acting group chief executive officer Reime Rizal Abdul Aziz said the construction of 86 units of modern factories in the strategic location namely Taman Tasik Utama, Ayer Keroh is seen as a potential attraction for investors, considering that the ecosystem of the project is built based on the concept of future business and enterprise.

He said the latest real estate project will develop 46 semi-detached factory units and 40 units of one-and-a-half-storey terrace factories in the mature commercial and residential area of Taman Tasik Utama.

“Apart from the strategic location, the provision of solar PV installation structures, smart infrastructure systems, and rainwater harvesting systems will also add significant value, as these elements are among the main drivers for investors in searching for premises to conduct their businesses,” he told Bernama here today.

“More importantly, this project does not lag behind in empowering sustainable development, which not only boosts the local and state economy but is also expected to create more job opportunities, especially for the local community.”

Earlier he officiated at the pre-launch of MTD Nexus 28 Industrial Park, which was also attended by MTD Properties chief operating officer Dr Nik Fauzan Nik Faizul, at the MTD Properties sales office and gallery in Taman Tasik Utama, Ayer Keroh here today.

He said the project, on 2.472 hectares (ha) of land, is expected to be fully completed in by 2027, thereby completing MTD Properties’ achievements in the real estate market in Melaka, including the housing project, Phase 23 Cinerea Heights, that has now recorded over 80 per cent of units sold even though the project is still ongoing.

“MTD Nexus 28 is a ‘starter kit’, however, we believe it will reflect MTD Properties’ credibility in industry-related premises and we certainly have high hopes that this project will bear fruit for other projects.

“As a property developer that has been operating for three decades, MTD Properties’ focus is certainly not only on physical development but also in line with the state government’s development blueprint in building sustainable communities, green technology, and better quality of life, while the projects we undertake are carried out more systematically and meet investors’ demands,” he added.

Meanwhile, MTD Properties will also continue their social responsibility to the community, especially the residents of Taman Tasik Utama, with a total of 65.761 ha of land provided and developed in collaboration with the local government, including primary and secondary schools, religious schools, mosques, an 8.09-ha green area, recreational parks, and a centralised sewage tank. 

Source: The Star/Bernama

MTD Nexus 28 industrial park expected to boost Melaka economic development

Proton Holdings Bhd is confident the momentum that drove up total industry volume (TIV) sales forecast for 2024 could be sustained going into next year, says its deputy chief executive Roslan Abdullah.

Commenting on the recently upgraded TIV forecast by the Malaysian Automotive Association (MAA) that 2024 should see sales touch 800,000 units, Roslan said there is a chance the number can be exceeded, with the sector also seeing a similar 2025 provided the country’s economic situation remains stable.

“Salary increases among civil servants, coupled with the amended minimum wage policy should attract more vehicle buyers, which bodes well for the automotive sector. These wage increases also open the path for financial institutions to provide more loans,” he said.

Roslan was speaking to StarBiz on the sidelines of the launch of Proton’s first electric vehicle (EV) model, the e.MAS 7, an event officiated by Prime Minister Datuk Seri Anwar Ibrahim yesterday.

Proton chairman Tan Sri Syed Faisal Albar had mentioned the e.MAS 7 is a fully green vehicle with zero carbon emissions, which is aligned with the nation’s net-zero commitment, before adding that the group had opened a new research and development (R&D) centre in China’s Hangzhou Bay back in April to strengthen its EV initiatives.

He said the R&D centre has a total of 60 local engineers responsible for the Proton’s e-MAS range in the future, including the e.MAS 7.

“Global auto sales had reached 92 million cars last year and one third of them were in China alone, and therefore, we are glad our partner is a global original equipment manufacturer from China.

“Geely has provided us with the impetus needed to bring us to another level, not just in Malaysia but also in the export markets,” said Syed Faisal.

Meanwhile, Geely Auto Group chief executive officer Jerry Gan said the partnership between Proton and Geely is a representation of pragmatic cooperation and shared success between the companies.

He remarked that Proton’s R&D centre in China marked a deeper integration of both companies R&D’s systems, significantly enhancing Proton’s research and innovation capabilities.

“The e.MAS 7 is a testament to the depth of collaboration between Proton and Geely. Over 700,000 man hours of R&D were invested, with over 100,000km of localised vehicle durability testing conducted,” added Gan.

At the same event, DRB-Hicom Bhd signed a memoranda of understanding (MoU) with the Malaysian Investment Development Authority (Mida) and Malaysia Automotive, Robotics and IoT Institute (MARii) to promote the enhancement and transformation of Malaysia’s automotive industry in the Automotive Hi-Tech Valley (AHTV) project in Tanjung Malim, Perak.

The agreements were inked together with DRB-Hicom’s joint-venture partner, China’s automotive group Zhejiang Geely Holding Group Co Ltd, and carry the objective of transforming the AHTV into a global automotive hub, focusing on the production of next generation vehicles (NxGV) and high-tech automotive components.

The collaboration with Mida, which is valid for two years, will focus on exploring potential areas of cooperation and collaboration to promote investments specifically in the development of the AHTV, with the objective of fostering growth, capabilities and competitiveness of the Malaysia automotive industry.

Key areas of collaboration include promoting the transformation of Malaysia’s automotive industry and Industry 4.0, helping the country to become a leader for energy efficient vehicles in Asean, while also focusing on the production of NxGVs and high tech automotive components.

Concurrently, the agreement with MARii would be for the purpose of exploring areas of cooperation and collaboration in the areas of R&D and talent development as a global strategic project that contributes to the enhancement and transformation of Malaysia’s automotive industry.

Looking back at the e.MAS 7, Proton revealed that the base Prime variant is priced at RM109,800, while the top Premium costs RM123,800 each excluding insurance.

The first 3,000 buyers will get a RM4,000 discount, making the respective prices RM105,800 for the Prime and RM119,800 for the Premium.

Stopping short of disclosing Proton’s sales targets for the e.MAS 7, Roslan said that the group is working closely with Geely for more upcoming EV models, while pledging its support to the government’s net-zero agenda.

When asked if the next models will gravitate towards the more affordable segment, he acknowledged the group is indeed looking into pricing as one of the key factors in its next models after the launch of the e.MAS 7.

Source: The Star

Proton positive about prospects for first EV