The government will ensure the development of the rare earth element (REE) industry progresses, simultaneously encompassing the upstream and downstream sectors to meet industrial needs, said Economy Minister Rafizi Ramli.

He said the government’s strategy to ensure the simultaneous development of the industry is aimed at enabling industry players, including international companies, to prepare and seize opportunities available in Malaysia.

Rafizi said the government has outlined plans to establish two processing plants in the next three years.

“I’m hoping that our colleagues, especially investors from around the world, understand that this is Malaysia’s plan, because a lot of new investments, especially those built around processing plants or more downstream industries like battery factories and manufacturers, take at least two or three years to come to fruition,” he said.

“For example, if Japanese companies understand this national plan, the federal government will work to implement it at the government-to-government level. I’m hoping this information will be valuable for investment planning in the next two to three years,” Rafizi told reporters here today.

Earlier, he delivered his speech at a conference themed “Accelerating Net-zero: Opportunities for Hard-to-abate Industries in ECER” organised by the East Coast Economic Region Development Council (ECERDC).

Rafizi said Malaysia currently lacks the technological expertise to process REE raw materials and needs to attract investments from advanced nations, such as Japan, to develop this capability.

He emphasised that the government’s policy of banning the export of unprocessed REE is designed to ensure the country gains higher revenue from these raw materials.

“But as we pointed out, our biggest challenge is the processing technology, which is predominantly controlled by China,” he said.

He also acknowledged the challenges posed by state governments, which might push for a resumption of REE exports if processing plants are not established quickly as they depend on royalties from the industry.

“However, the federal government is concerned that allowing exports could quickly lead to the exhaustion of our raw material reserves,” Rafizi said.

Source: Bernama

Malaysia seeks advanced technology, investments for rare earth processing

The Investment, Trade, and Industry Ministry is working with the Selangor and Johor state governments to ensure that every district in these two states is equipped with direct current (DC) electric vehicle (EV) charging points.

Deputy Minister Liew Chin Tong said the ministry is focused on this initiative to guarantee that each district has multiple DC charging stations.

“We hope that after the pilot projects in Johor and Selangor, we will be able to expand it to all states, ensuring that every district across the country has accessible EV charging points,” he said in response to Datuk Dr Ku Abd Rahman Ku Ismail (PN-Kubang Pasu).

Ku Abd Rahman had inquired if the ministry plans to increase the number of charging stations, particularly in rural areas.

Liew said the move is part of Malaysia’s broader strategy to enhance EV infrastructure and accelerate the adoption of electric vehicles nationwide.

He said the ministry is still maintaining its target of 10,000 EV charging stations operating in the country by 2025.

“But, what we want to emphasise is the DC charging points, which we have increased the target from 1,000 to 1,500 units by next year. At present, we have 500 DC charging points.”

Meanwhile, as of Sept 30, a total of 33,319 EVs have been sold in Malaysia, accounting for 5.11 per cent of the country’s total annual vehicle sales.

Liew said this figure includes hybrid, plug-in hybrid, battery electric and fuel cell electric vehicles.

“As of Oct 31, 3,354 charging stations have been installed nationwide, ensuring that the growing number of EVs can be conveniently charged,” he said in response to the initial question from Khoo Poay Tiong (PH-Kota Melaka).

Khoo inquired about the government’s efforts to encourage local industry players to boost EV production and meet local demand, while also working towards the Sustainable Development Goals for 2030.

Source: NST

MITI working with Selangor, Johor governments to expand EV charging infrastructure

The government is optimistic about the investment target set in the National Semiconductor Strategy (NSS), considering the encouraging performance of current investments in Malaysia’s semiconductor sector.

The Investment, Trade, and Industry Ministry (Miti) reported that throughout 2023, this sector contributed RM69.4 billion (82 per cent) of the total RM84.5 billion in approved investments for electrical and electronics projects.

For the first half of 2024, the government successfully attracted investments worth RM34.6 billion, of which RM0.98 billion was domestic investments, while RM33.63 billion was foreign investments.

“In addition, three local integrated circuit design companies were established during this period.

“As of the third quarter of 2024, NSS has created job opportunities for 4,673 individuals, with 97 per cent of the recruitment constituting technical workers, thus contributing to the country’s talent pool,” it said in a written reply published on the Parliament website today.

Miti was responding to Kubang Pasu MP Datuk Ku Abd Rahman Ku Ismail’s query on the progress made by implementing the New Industrial Master Plan 2030 and NSS.

Source: Bernama

Govt optimistic National Semiconductor Strategy investment target can be achieved

Malaysia aims to produce two million tonnes of hydrogen annually by 2030., scaling up to 16 million tonnes by 2050, under the Emission Driven Scenario (EDS), according to Science, Technology and Innovation Minister Chang Lih Kang.

He said the successful implementation of the Hydrogen Economy and Technology Roadmap (HETR) will enable Malaysia to tap into this lucrative market, with potential revenue estimated to be at least RM905 billion by 2050 under the EDS.

“The global green hydrogen market is projected to reach a staggering US$189.19 billion (RM840 billion) by 2050, with Asia-Pacific accounting for 43% of this market, followed by Asean with 13%, and Malaysia at 2%. As we transition to cleaner energy, hydrogen will play a key role alongside other renewables in Malaysia,” Chang stated in his keynote speech at FMM Energy Efficiency & Conservation Conference 2024 organised by the Federation of Malaysian Manufacturers today.

He said embracing hydrogen is not just about tackling climate change but it is also about reducing the country’s dependence on fossil fuels and protecting publics’ health. “The shift will help decarbonise critical sectors like power generation and transportation, reducing greenhouse gas emissions by up to 10%.”

Through the HETR, Malaysia plans to phase out fossil-fuel-based grey hydrogen in the short term and transition towards green hydrogen in the long term.

“To bridge the gap, blue hydrogen will play a crucial role by leveraging existing fossil fuel infrastructure while incorporating carbon capture to reduce emissions,” Chang said.

From 2030 to 2040, he added, efforts will focus on making green hydrogen more cost-competitive by improving technology and efficiency to pave for a sustainable future. “Blue hydrogen will be critical for industries like metal, steel, oil and gas refining, and ammonia production, where emissions are harder to reduce.”

However, Chang said, the main challenge is cost where hydrogen is currently twice the price of unsubsidised RON 97 fuel and much higher than subsidised RON 95.

“While the HETR projects that hydrogen will become cheaper than diesel by 2050 as subsidies shift, we believe it’s time to start redirecting energy subsidies towards renewables like hydrogen now. This gradual shift, alongside financial incentives for cleaner fuels, can help accelerate the transition towards a sustainable energy future,” he said.

Chang pointed to key strategies to accelerate the adoption of green hydrogen, including offering financial incentives such as Green Investment Tax Allowance and Green Income Tax Exemption for hydrogen-related projects, alongside e-dana support for innovation and commercialisation.

“Plans are also under way to make fuel cell electric vehicles more affordable through subsidies and tax exemptions on sales, imports, and road use.”

Chang said financing mechanisms such as low-interest loans, venture capital funds, and public-private partnerships are being explored to support hydrogen infrastructure and projects. Capacity building is another priority with training programmes designed to equip industry professionals, researchers and policymakers with the necessary skills to drive the hydrogen economy forward, he added.

“Demonstration projects in transportation, power generation, and industrial processes will also receive support to showcase the potential of hydrogen technologies across various sectors,” said Chang

Source: The Sun

Malaysia aims to produce 2 million tonnes of hydrogen annually by 2030

BMW AG is still focused on driving sustainable mobility across Southeast Asia and making Malaysia a regional leader in automotive transformation.

The German automaker delivered over 8,700 vehicles across BMW and Mini brands in Malaysia as of the third quarter of 2024.

This included 1,600 electrice vehicles (EVs), which accounted for 19 per cent of the group’s total deliveries. This makes BMW the leading premium EV brand in the country.

Based on the latest Road Transport Department data as at October this year, the BMW i5 is currently the group’s most popular model with 410 units registered this year so far. This was followed by the BMW iX2 with 352 units, Mini Countryman with 253 units, BMW i4 with 218 units and BMW i7 with 204 units.

BMW Group Malaysia managing director Benjamin Nagel said the country’s role as a strategic hub for the world’s leading premium brand in Southeast Asia has been the main catalyst for its growth in the region.

He said it was proven through the group’s assembly facility in collaboration with Sime Darby Bhd at Kulim Hi-Tech Park, Kedah and the regional component distribution centre in Senai, Johor.

“Our local assembly facility has shipped more than 10,000 vehicles to the Philippines and Thailand, making us the largest exporter of automotive vehicles in Malaysia,” he said during the group’s brand strategy media roundtable here on Wednesday.

“Next week, we will officially open the expanded facility in Senai that is currently supports 23 countries in the Asia Pacific region. With the additional 20,000 square metres, it will increase the space from 45,000 to 65,000 square metres,” Nagel added.

BMW also wants to assemble its EVs in Malaysia but says the plan will require long-term planning, as well as policy certainty from the government.

BMW Group senior vice president sales region in Asia Pacific, Eastern Europe, Middle East and Africa Jean-Philippe Parain said it is engaging with the government and preparing for the locally-assembled (CKD) of the EVs, in line with the country’s recent changes to tax exemptions post-2026 to ensure sustainable adoption.

Parain said reducing subsidies can impact EV adoption, as seen in other markets. Hence, it is essential to approach the transition carefully.

“Based on my experience with the company, which has a presence across many countries, once the government reduces the subsidy, the choice of electromobility has been reduced.

“For example, in South Korea, as soon as the subsidy was reduced, the number of people choosing EVs also declined, and the situation can also be seen in Europe,” he added.

The government will reportedly phase out tax breaks on fully-built imported (CBU) EVs by end of 2025 and CKD models by end of 2027.

There are currently more than six EV models from BMW in fully imported forms here, with the cheapest is the i3s, which is priced at about RM268,824-RM278,800, and the most expensive is the i7 at about RM742,950.

Source: NST

BMW on an EV high

Hyundai Motor Co announced on Tuesday its plan to invest nearly US$480 million in Malaysia over the next five years from 2025 to enhance its production capacity in the Southeast Asian nation, Yonhap news agency reported.

The South Korean automaker stated it would collaborate with its local partner, Inokom Corp, to upgrade its complete knockdown (CKD) unit assembly plant, which currently produces the older-generation Santa Fe SUV model.

The upgraded CKD plant is set to commence production of Hyundai’s multipurpose vehicle and the Staria minivan by mid-2025, with plans to expand the range to include mid-to-large SUVs.

The company noted that the production scale will initially begin at 20,000 units per annum, with plans for gradual expansion.

Vehicles manufactured at the facility are expected to be marketed in Malaysia and other Southeast Asian countries.

Hyundai also reaffirmed its commitment to supporting the development of Malaysia’s electric vehicle (EV) ecosystem, including the expansion of EV sales, the construction of charging infrastructure, and the establishment of battery production facilities.

“We made this investment decision considering the growing importance of Southeast Asia and the Malaysian market,“ Hyundai said.

“We aim to contribute to the economic and social development of the region through job creation and local talent development.”

Source: Bernama

Hyundai Motor to invest US$479 million in Malaysia to increase local production capacity

Hyundai Motor will start a strategic partnership with Inokom for the automotive assembly of several new models in Malaysia next year through an investment worth RM2.16 billion.

This investment includes efforts to upgrade Inokom’s existing assembly capacity to meet Hyundai’s automotive needs.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said it was the company’s biggest investment in Malaysia for a period of six years (2025-2030) which will offer hundreds of high-paying and high-tech job opportunities to locals.

The investment involves the assembly and production of six car models including hybrid electric vehicle (HEV) models as well as an EV battery pack assembly factory in Kulim, Kedah, Zafrul told reporters in conjunction with Prime Minister Datuk Seri Anwar Ibrahim’s official visit to South Korea.

The prime minister also held a closed door meeting with several South Korean conglomerates including Hyundai Motor, Lotte, OCI Holdings, Samsung, SK Nexilis and Posco.

The prime minister and delegation arrived in Seoul on Sunday in conjunction with a three-day official visit to further strengthen the existing bilateral relations between Malaysia and South Korea.

Malaysia and South Korea will celebrate the 65th anniversary of diplomatic relations between the two countries next year.

South Korea is Malaysia’s seventh largest trading partner while Malaysia is South Korea’s 11th largest trading partner.

Source: Bernama

Hyundai to invest RM2.16 bil in Malaysia through strategic partnership with Inokom

Malaysia is positioning itself to become a global hub for innovation and manufacturing

Malaysia will continue to strengthen its ties with international markets in the semiconductor industry following the return of Donald Trump as the president of the United States.

This comes with the anticipation of protectionist measures following Trump’s re-election.

Deputy Investment, Trade and Industry Minister Liew Chin Tong said Prime Minister Datuk seri anwar ibrahim and the malaysian delegation have worked hard to build ties between the Malaysian semiconductor industry and the Brazilian semiconductor industry.

Two memoranda of understanding (MOU) were inked between the two countries following Anwar’s recent working visit to the Latin American country, allowing Malaysia to position itself as a global hub for semiconductor innovation and manufacturing.

“The Malaysia Semiconductor Industry Association (MSIA) is also in talks with its counterpart in the Netherlands, while the government is working with Asean member states on the semiconductor industry.

“We are also talking to Saudi Arabia in a very serious manner. This is so that we can avoid a strict bifurcation of the global supply chain,” he told the media at the MSIA National Electrical and Electronics (E&E) Forum 2024 here, yesterday.

Liew said as the world’s sixth largest semiconductor exporter, Malaysia holds a 7% share of the global market and contributed to 23% of US semiconductor trade in 2022.

“The world is still very much exporting to the United States, and we hope that we can work with the United States in a very close

“We have received strong E&E investments this year and our E&E exports for the first 10 months, from January to October 2024 is Rm491bil, which is up 1.5% compared to last year. I am still hoping that it will breach Rm600bil by the end of the year.” Liew Chin Tong

manner,” he added.

According to him, there is a “huge middle power” where Malaysia can play a role within the global semiconductor supply chain. And in the coming 10 to 15 years, Malaysia has to be clear in its strategy and goal.

“We need to work with partners to build that strong middle power, so that we can be a centre in which global business in the semiconductor industry can be conducted from”.

He added local players should continue moving up the value chain by creating its own technology – especially within the artificial intelligence (Ai)-realm.

This is to be coupled with horizontal expansion and innovation, which he said “so that whatever capability we have at multiple levels in the semiconductor industry can also be used to solve daily problems and therefore creating Malaysian innovation”.

He proposed adopting a flexible industrial policy framework, stressing that it does not need to be comprehensive.

Recognising Malaysia’s constraints as a trading nation with an open economy, he urged for broader strategies to leverage tools from the industrial policy “toolbox.”

He also advocated for blending public and private funds, emphasising that investments should not rely solely on grants but include collaborative financing approaches.

He gave an example of which the Malaysian government has directed government-linked investment companies to work on a gear-up programme, which channels Rm120bil into Malaysian technologies over the span of five years.

“I think this is the direction that will work and I hope this can actually become into something that is able to create Malaysian technologies. So, having the private and public coming together to find ways to fund technology is important,” he said.

Despite global challenges, he remains optimistic, noting that the semiconductor industry is a strategic industry not only for Malaysia, but for the whole world because of the increasing uses of AI technology, which requires semiconductors.

When asked about the outlook on E&E exports for 2025, MSIA president Datuk Seri Wong Siew Hai said there will be more clarity on where the industry is heading in the first quarter of financial year 2025, once policies by the United States government have been decided. He told Starbiz that the local semiconductor industry may experience single-digit growth in 2025 in line with the global economic trends.

“We have received strong E&E investments this year and our E&E exports for the first 10 months, from January to October 2024 is Rm491bil, which is up 1.5% compared to last year. I am still hoping that it will breach Rm600bil by the end of the year,” he said.

Sharing a similar view, Tradeview Capital chief investment officer Nixon Wong also anticipates a rather muted growth from the end of 2024 entering next year.

Malaysia’s E&E export is very dependent on the semiconductor recovery globally – which is anticipated to kick in somewhere around the second half of 2025.

“There is some chance of earlier recovery, with all eyes on potential restocking from the United States front as well as economic growth recovery from the China front.

“We may also need to factor in the movement of the ringgit against the US dollar as well.”

Hence, Wong is of the view that companies with more US exposure may tend to benefit more than those with exposure to China. With Trump ‘s being pro-us, capital expenditure growth is expected to come from US companies, while trade policies may cap China’s export.

“The situation is fluid and depends on how aggressive the United States trade tariff on China and also on the rest of the world, which may cap overall demand growth,” he added.

On a separate note, two MOU signings were completed between Elliance Sdn Bhd and Skyechip Sdn Bhd, as well as between Elliance, Kaitech Sdn Bhd and Estek Automation Sdn Bhd at yesterday’s event. The parties will form a strategic partnership to design and produce Malaysia’s first Edge AI system.

Source: The Star

Elevating the chip industry

The Penang government has applied for a RM60mil allocation from the Federal Government to support development and attract investors under the National Semiconductor Strategy (NSS).

However, Chief Minister Chow Kon Yeow said the state’s investment promotion agency, InvestPenang, had yet to receive a favourable reply.

“The request is modest compared to the billions of ringgit announced under the NSS to attract more investments into the sector,” he said after tabling Penang Budget 2025 during the state assembly sitting at Lebuh Light, George Town.

Chow (PH-Padang Kota) was responding to a supplementary question by Lee Khai Loon (PH-Machang Bubok), who asked about commitments or allocations given to Penang to develop the NSS.

Chow added that federal assistance for semiconductor development will also focus on infrastructure as traffic congestion remains a key constraint for investors seeking reliable mobility.

He thanked the Federal Government for approving the RM3bil Juru-Sungai Dua elevated highway project, which will help alleviate congestion.

Construction for the project is scheduled to begin next year and be completed in 2029.

“We hope Putrajaya will allocate more funds to Penang, given that the state is the biggest semiconductor contributor in the country,” he said.

The NSS was announced by Prime Minister Datuk Seri Anwar Ibrahim during Semicon South-East Asia 2024 in May.

Through it, the country aims to attract RM500bil of investments in integrated circuit (IC) design plus advanced packaging and manufacturing equipment for semiconductor chips, as well as to create at least 10 local design and advanced packaging companies with revenues ranging from RM1bil to RM4.7bil.

It also aims to make Malaysia a global hub for semiconductor research and development.

It was reported that the government had planned to allocate RM25bil to the NSS.

On another matter, Chow said Penang is set to earn an additional sum of between RM50mil and RM100mil in annual revenue by increasing land taxes for the first time in 30 years.

He was responding to a question by Lee Boon Heng (PH-Kebun Bunga) on the state’s budget deficit.

Chow said the changes are expected to take effect in January 2026 once approval is obtained from the National Land Council, adding that land-related taxes contribute about 45% of the state’s revenue.

“We have received approval to review the rates that have remained unchanged since 1994.

“The review process by a task force involving the Land and Mines Office and District and Land Office is ongoing.

“It involves 370,000 land ownership records in Penang,” he said.

Source: The Star

Seeking RM60mil for semiconductor sector

Malaysia is strengthening ties with international markets to avoid a strict bifurcation of the global semiconductor supply chain, particularly as more protectionist measures may be in store following Donald Trump’s victory in the United States (US) presidential election.

Deputy Investment, Trade and Industry Minister Liew Chin Tong affirmed that Prime Minister Datuk Seri Anwar Ibrahim and the Malaysian delegation have worked hard to build ties between the Malaysian semiconductor industry and the Brazilian semiconductor industry through Anwar’s recent working visit to the Latin American country.

“The Malaysia Semiconductor Industry Association (MSIA) is also in talks with its counterpart in the Netherlands, while the government is working with ASEAN member states on the semiconductor industry.

“We are also talking to Saudi Arabia in a very serious manner. (This is the strategy), so that we can avoid a strict bifurcation of the global supply chain,” he told reporters on the sidelines of the MSIA National Electrical and Electronics (E&E) Forum 2024 here today.

Liew also said that as the world’s sixth largest semiconductor exporter, Malaysia holds a seven per cent share of the global market and contributed to 23 per cent of US semiconductor trade in 2022.

“The world is still very much exporting to the US, and we hope that we can work with the US in a very close manner,” he said.

President-elect Trump, who is set to be inaugurated on Jan 20, is expected to prepare for a second act. His first administration saw him swiftly implementing tariffs to protect the US economy and address trade imbalances.

Asked on the possibility of a drop in semiconductor export numbers to the US due to protectionism, Liew noted that the government will continuously monitor the situation.

Meanwhile, MSIA president Datuk Seri Wong Siew Hai said the association expects the industry to achieve a single-digit growth next year, driven by global economic trends.

“We have received strong E&E investments this year. Our E&E exports for the first 10 months – from January to October 2024 – totalled RM491 billion, up 1.5 per cent compared to last year. I am still hoping that it will breach RM600 billion,” he said during his opening speech at the forum earlier.

It was reported that global semiconductor sales dipped 8.2 per cent to US$527 billion (US$1 = RM4.47) in 2023. Malaysia’s E&E sector exports decreased by 3.0 per cent last year to RM575.45 billion after a record year of 30 per cent growth in 2022 to RM593 billion.

Source: Bernama

Malaysia boosts global semiconductor ties as protectionists measures loom

Hyundai Motor will open its first plant in Malaysia next year with an investment valued at RM2.16 billion.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said it will be the South Korean automaker’s largest investment in Malaysia and provide many job opportunities.

“This is a huge investment. A total of seven car models will be produced within five years. The plant will be opened in Kulim (Kedah) next year,” he told the Malaysian media covering Prime Minister Datuk Seri Anwar Ibrahim’s official visit to South Korea here today.

Meanwhile, Anwar today held a closed-door meeting with South Korean conglomerates Hyundai Motor and OCI Holdings.

The Prime Minister and his delegation had arrived in Seoul last night for a three-day official visit to strengthen bilateral relations between Malaysia and South Korea.

Next year, the two countries will be celebrating the 65th anniversary of the establishment of diplomatic relations with each other. 

Source: Bernama

Hyundai to invest RM2.16 bil to set up a plant in Kulim

US electric vehicle (EV) maker Tesla has used components from about 45 local suppliers directly or indirectly to date, which also involves technology transfer to the suppliers, according to the Investment, Trade and Industry Ministry (MITI).

The local producers are used mainly for the provision of semiconductor components, machinery inspection and factory automation system, it explained.

“Although Tesla has never given any commitment to undertake local assembly for its vehicles, MITI, through its agency Malaysian Investment Development Authority, is always discussing the potential of Tesla using the local supply chain for its manufacturing components,” MITI said in a written reply posted on the Parliament’s website today.

The ministry was responding to a query from Datuk Awang Hashim (PN-Pendang) on the government’s stance and strategy following reports that Tesla has scrapped plans to build factories in ASEAN countries, including Malaysia.

MITI said Tesla’s presence in the Malaysian market demonstrates Tesla’s confidence in the local EV market as well as in policies promoting EVs implemented by the government.

The government, it continued, will continue striving to attract foreign and local investors in the automotive and related sectors to carry out operations in the country.

“This move will help boost the local supply chain’s capabilities and promote automotive component localisation activities,” it added.

Tesla’s entry into Malaysia in 2023 was through the BEV Global Leaders AP programme, which was established specifically to attract multinationals that are top battery electric vehicle (BEV) producers to set up business and invest in Malaysia.

Several conditions were imposed on Tesla to participate in the programme, including the commitment to instal at least 50 ultra-fast chargers with capacity exceeding 180 kilowatts, ensure at least 30 per cent of the ultra-fast chargers are open for public use for EV brands other than Tesla, and cooperate with at least 10 local firms to develop the EV charging technology here.

Source: Bernama

Tesla using components from local suppliers, involved in technology transfer – MITI

JAPANESE machinery manufacturer CKD Corp has opened a new manufacturing facility in Kulim Hi-Tech Park, Kedah, exactly four decades after it opened its maiden oversea base in Malaysia.

The facility, spanning 80,000 sq m, has a 16,000 sq m portion dedicated to advanced manufacturing operations, according to a statement released by Malaysian Investment Development Authority (MIDA) today.

CKD, headquartered in Komaki in Aichi, Japan, is a comprehensive machinery manufacturer engaged in development, production, sales and service of automated machinery and equipment products for industrial use.

Based on automation and fluid control technologies, CKD supports a wide range of manufacturing sites producing a wide variety of products.

“Through this new plant, we will work together with government officials, customers and our employees to realise the further development of Malaysia and the future we are aiming for,” said CKD chairman Kazunori Kajimoto.

Present at the plant unveiling was CKD president/CEO Katsuhito Okuoka and Kedah Mentri Besar Datuk Seri Muhammad Sanusi Md Nor. 

Source: The Malaysian Reserve

CKD opens new manufacturing facility in Kulim Hi-Tech Park

The government is focusing on key aspects of the semiconductor value chain, particularly front-end research and development (R&D) such as integrated circuit design and wafer fabrication, to boost the industry’s growth.

The Ministry of Investment, Trade and Industry (Miti) said these initiatives are part of a wider strategy to strengthen Malaysia’s semiconductor sector, with a primary goal of enhancing domestic chip development and production.

“Various programmes are planned to achieve this, including efforts to modernise existing outsourced semiconductor assembly and test (OSAT) companies, which are a critical component of the semiconductor value chain.”

“The government is confident that Malaysia’s semiconductor industry has the potential to expand its value chain into the front-end segment, creating highly skilled job opportunities and driving stronger growth for the national economy,” Miti said.

The ministry provided this response in a written answer published on the Parliament website on Thursday.

The statement was made in response to a question from Datuk Ahmad Amzad Mohamed @ Hashim (PN-Kuala Terengganu) regarding the government’s focus on establishing Malaysia as a semiconductor industry hub.

Source: Bernama

Govt targets front-end R&D to drive semiconductor industry growth — Miti

A total of 10 investment projects have been approved for the country’s aerospace industry from 2020 to 2023 with an investment value of RM513.4 million, creating more than 700 jobs during this period.

The Ministry of Investment, Trade and Industry (MITI) stated that various strategic initiatives have been outlined to foster a competitive and sustainable aerospace industry, including through the Malaysian Aerospace Industry Master Plan 2030, the Aerospace Industry Framework under the 12th Malaysia Plan, and the New Industrial Master Plan 2030.

MITI noted that Malaysian aerospace companies have successfully secured new aerospace manufacturing work packages valued at RM5.7 billion within two years after the COVID-19 pandemic hit the world.

Additionally, the ministry highlighted that this positive development is supported by ongoing expansion projects in the maintenance, repair, and overhaul (MRO) sector, valued at over RM600 million, which have entered the implementation phase.

MITI said this in a written reply on the parliament website today to a query from Datuk Mohd Suhaimi Abdullah (PN-Langkawi) regarding steps to strengthen local aerospace players in the MRO sector amid competition from entrants like SIA Engineering Company Ltd.

The ministry also noted that the National Aerospace Industry Corporation Malaysia and the Malaysian Investment Development Authority have established strategic collaborations with original equipment manufacturers and Tier-1 suppliers to strengthen the local value chain, through seminars, forums and ongoing business matching sessions.

“As an example, the MyAERO Talent Johor programme at SMK Kota Masai 2 in Johor aims to inspire interest among the younger generation in pursuing careers in the aerospace field,” the ministry said.

Source: Bernama

10 aerospace-related projects worth over RM500m approved until 2023 – MITI

Globetronics Technology Bhd has formed a strategic partnership with Taiwan-based ChipMOS Technologies Inc for Integrated Circuit Services.

ChipMOS is a global leader in semiconductor assembly and testing services, listed on both Taiwan’s stock exchange and Nasdaq. The company specialises in memory and mixed-signal integrated circuit testing, as well as advanced packaging.

Under the agreement, Globetronics will provide cutting-edge dicing, packaging, and testing services for integrated circuit products delivered by ChipMOS.

ChipMOS, as the supplier of these products, will be responsible for furnishing Globetronics with the necessary wafers, detailed specifications, and production forecasts to facilitate efficient processing.

Globetronics said this partnership is expected to strengthen both companies’ capabilities in semiconductor backend services, enabling the delivery of high-quality solutions to meet the growing demands of the global market.

“With a total estimated contract value for the three-year agreement amounting to a minimum of RM145mil, this partnership aims to enhance production efficiency and product quality, solidifying their competitive positions in the semiconductor supply chain,” it said in a statement.

Source: The Star

Globetronics Partners with Taiwan’s ChipMOS for Integrated Circuit Services

THE Malaysian government continues to support the growth of electric vehicle (EV) charging infrastructure, offering various incentives despite the absence of specific provisions in the 2025 Budget.

Key Incentives for Charging Site Operators (CPOs)

The Ministry of Investment, Trade, and Industry (MITI) highlighted several incentives available to encourage the development of EV charging stations:

Green Investment Tax Allowance (GITA):

– CPOs meeting the eligibility criteria can benefit from a 100% Investment Tax Allowance for five years.

– This allowance allows deductions of up to 100% of statutory income annually.

Income Tax Exemption for Manufacturers:

– Companies producing EV charging equipment are granted full income tax exemptions on statutory income from 2023 to 2032.

EV Growth Projections

– By 2030, the government anticipates at least 400,000 electrified vehicles on Malaysian roads, spanning passenger and commercial vehicles.

– As of September 30, 2024, the total sales volume of electrified vehicles (including hybrids, plug-in hybrids, battery electric vehicles, and fuel cell electric vehicles) stood at 33,319 units.

– The estimated total for 2023 was 35,723 units, accounting for 4.12% of all vehicle sales.

Private Sector Investments in EV Charging Infrastructure

MITI reported significant investments by major companies to support EV charging bay (EVCB) expansion:

– Gentari (a Petronas subsidiary) and Tenaga Nasional Bhd (TNB) are committed to spending approximately RM76 million by June 2024.

– These investments, combined with efforts from 30 other active CPO companies, aim to build more EVCBs across Malaysia, increasing accessibility for EV users.

Impact on EV Adoption

This collaborative effort between government incentives and private sector investments aims to boost consumer confidence, encouraging more Malaysians to adopt EVs. The expanded infrastructure and financial support are expected to drive the transition toward sustainable transportation and support Malaysia’s environmental goals.

The ongoing development reflects Malaysia’s strategic vision for a greener future, ensuring that the country remains competitive in the global EV market.

Source: The Sun

Government bolsters EV charging infrastructure development with key incentives

Zecon Bhd has entered into a strategic collaboration agreement with Pelaburan Hartanah Bhd (PHB), Sarawak Digital Economy Corporation Bhd (SDEC) and Global Network Inc (GNI) to develop and invest in projects at Kota Petra Green Technology Park in Sarawak. 

In a filing with Bursa Malaysia Securities, Zecon said the parties agreed to explore further possibilities at the technology park by developing any of the properties belonging to each company and the third party at the park.

“In the event the parties have come to a consensus and agree to proceed with a particular purpose and/or project, and it shall be recorded by separate definitive agreement(s) which include amongst others, roles and responsibilities of the parties, transaction amount payable by the respective party and specific purpose of the development,” it said. 

PHB will not enter into direct negotiation and/or investment arrangement with any of the industrial investors in the technology park, unless with prior written consent of ZECON, SDEC and GNI.

Zecon’s share price stood unchanged at 47 sen at midday with a market value of RM69.55 million.

Source: NST

Zecon to work with PHB, others to develop projects in Sarawak green technology park 

Malaysia’s booming chip manufacturing sector has attracted interest from Pakistani investors.

The semiconductor industry is one of the key areas of new collaboration between Malaysia and Pakistan following Prime Minister Datuk Seri Anwar Ibrahim’s visit to Islamabad in October.

“Malaysia is poised to become a global chip hub and Pakistani investors are invited to invest in Malaysia,” Malaysian High Commissioner to Pakistan, Datuk Mohammad Azhar Mazlan, told Bernama.

Earlier this month, more than 50 prominent Pakistani industry leaders attended a dinner reception hosted by the high commissioner at the Malaysian High Commission in Islamabad.

The focus of this engagement was on enhancing trade, investment and business collaborations between the two countries, taking advantage of the momentum in bilateral relations created by Anwar’s visit.

The high commissioner encouraged Pakistani business people to use Malaysia as a gateway to the Asean market of 680 million people.

Expanding bilateral agricultural trade, Malaysia plans to import US$200 million worth of halal meat and 100,000 tonnes of basmati rice from Pakistan.

Source: Bernama

Pakistani investors show interest in Malaysian chip sector

The Sarawak government has endorsed the establishment of the Kota Petra Green Technology Park (KPGTP) with Special Economic Zone status, said Deputy Premier Datuk Amar Awang Tengah Ali Hasan.

The state International Trade, Industry and Investment Minister said this initiative is a collaboration between Sarawak Digital Economy Corporation (SDEC), Centre for Technology Excellence Sarawak (Centexs), and the private sector to create a high-tech industrial hub.

“This development is expected to generate RM12 billion investments and create 10,000 jobs during the construction phase in 2030,” he said when winding up his ministerial speech at the State Legislative Assembly (DUN) here today.

He said the KPGTP is designed as a modern industrial park, which focuses on attracting investment in green technology sectors.

“The park will serve as a hub to foster collaboration among industry leaders, research institutions and startups through a supportive ecosystem,” he added.

He said for 2025, a total budget of RM40 million has been allocated to develop 14 industrial estates in Sarawak including Kuching High-Tech Park as an expansion for Sama Jaya Free Industrial Zone.

“This park will create attractive investment opportunities in the electrical and electronics (E&E) sector, drive innovation in semiconductor and advanced manufacturing,” he said.

Awang said his ministry has established the Industrial Park Management Committee (IPMC) to effectively manage, resolve issues and improve conditions in industrial parks in the effort to promote long-term sustainability.

“To begin with, we have formed IPMC for Sama Jaya Free Industrial Zone and Demak Laut Industrial Park.”

He said IPMC will forge strong rapport, close collaboration and coordination between government and private entities located in the industrial parks.

“IPMC will act as a liaison platform to address tenant concerns and facilitate communication with the relevant government agencies.

“This initiative will be extended to encompass all other government-developed industrial parks throughout Sarawak,” he said.

Source: Borneo Post

Awg Tengah: Sarawak to develop Kota Petra Green Tech Park, generate RM12 bln investments

Dutch Lady Milk Industries Bhd is expected to leverage its new manufacturing hub in Bandar Enstek, Negri Sembilan for growth opportunities despite a challenging cost environment.

BIMB Research, which maintained the stock’s target price at RM34, has upgraded the stock to a “buy” call from “hold”.

“We are positive about Dutch Lady’s outlook, which is underpinned by stable demand as well as long-term earnings growth, supported by the efficiency and capacity enhancements from the new facility in Negri Sembilan,” the research house said.

Noting that Dutch Lady’s long-term prospects remained intact, the research house said: “The uptrend in global dairy raw material prices and currency fluctuations, coupled with the rise in the minimum wage in Malaysia, remain key challenges moving forward.

“Additionally, Dutch Lady’s commitment to supporting local dairy farmers and adapting to evolving consumer preferences positions the company well to strengthen its presence in the Malaysian dairy market,” the research house said.

The company, which released its results for the third quarter ended Sept 30, (3Q24) on Tuesday, moved to its new manufacturing hub in late May and completed the transition to full operations in 3Q24.

Net profit over the nine-month period of Rm103.4mil was in line with forecasts for its financial year ending Dec 31, 2024 (FY24), accounting for 78% of net profit while 3Q24’s net profit declined 13.3% to Rm30.4mil primarily due to the unavailability of some non-core Dutch Lady products for sale during the transition to its new factory and the absence of sales campaigns.

Dutch Lady also declared a second interim dividend of 25 sen per share, bringing dividends for the year to date to 50 sen per share.

In a statement on its latest financial results, Dutch Lady said it expects the business landscape in Malaysia for the remainder of 2024 to face continued challenges, due to a range of domestic and international uncertainties.

The company said it would continue to focus on optimising costs and cashflow and would be implementing organisational improvements to increase effectiveness.

It also aimed to lower its fixed-cost base to battle the current inflationary and exchange rate headwinds, as well as securing internal financing for building and transitioning to its new manufacturing and distribution facility.

Source: The Star

Stable demand to bolster Dutch lady

The Kota Kinabalu Industrial Park (KKIP) has generated investments worth RM11.2 billion since its establishment in 1994, the Sabah State Legislative Assembly was told today (Nov 19).

Sabah Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe said 341 companies have operated in the industrial park, creating 14,608 full-time jobs, especially for Sabah locals.

“Industrial development in KKIP continues to run smoothly,” he said as he wrapped up the debate on the state Supply Bill (2025) for his ministry here today (Nov 19).

He said in the latest development, the construction of the Integrated Building System (IBS) factory, 100 per cent owned by KKIP Sdn Bhd, is in the trial production run stage and is expected to be fully operational in January next year.

“Phase 1 of the construction of this factory generated an investment of RM50 million and created 90 full-time job opportunities,” he said.

Phoong said next year, KKIP will focus on preparing a master plan for a new industrial park in Kota Belud, given that the remaining unused land in KKIP comes to only 101.17 hectares, located in separate areas.

Apart from Kota Belud, he said his ministry is planning the development of new industrial parks in Kudat and Kimanis next year. “The development of these industrial parks is expected to begin in the 13th Malaysia Plan.

These new industrial parks will not only support investment in high-tech industries but will also support industries based on the blue economy and food safety,” he said. 

Source: Bernama

KK Industrial Park generates RM11.2 billion investment, over 14,000 jobs

The largest South American country Brazil is strategically located for Malaysian semiconductor industry’s “Plus One” strategy to de-risk their supply chain resiliency.

Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said it is more than just a precautionary measure.

“It’s a forward-thinking approach that will help Malaysian semiconductor companies not only de-risk their supply chains but also expand their reach to new markets,” he told the Malaysian media here on Monday.

So, many Malaysian companies who want to look at Latin America, Central America and North America, this is where they can find synergies, said Tengku Zafrul, who is part of Prime Minister Datuk Seri Anwar Ibrahim’s contingent on an official visit here.

“In terms of size, Brazil’s semiconductor industry is relatively small, but it is very advanced especially in integrated circuit (IC) design and some of the tools for integrated circuit design,” he explained.

Malaysia has a comprehensive semiconductor ecosystem and is strong in back-end and outsourced semiconductor assembly and test (OSAT) activities. Malaysia is currently the sixth largest semiconductor exporter globally with exports exceeding US$85 billion (RM380 billion).

On the other hand, Brazil’s semiconductor export value stands at US$1.2 billion (2022) with a competitive edge IC design.

Malaysia’s ecosystem includes global giants such as Intel, Infineon, Micron and Texas Instruments as well as homegrown champions like Carsem and Inari, known for their expertise in OSAT activities.

He said that by forging closer ties with Brazil or other regions, Malaysia can strengthen its position as a global semiconductor leader while ensuring that its industry is resilient, diversified and prepared for future challenges.

Asked about the possibility of disruption from the change of President in the United States, Tengku Zafrul said: “So far we have not received any information. President-elect (Donald Trump) will be sworn in on Jan 20, 2025.”

“At the same time, we are discussing with companies involved in the supply chain around the world, especially in strategic sectors such as semiconductors. We also need to hold engagement sessions with those companies to discuss with the United States, China and Europe how we can ensure that this supply chain continues to be strong.

“However, their concern is not in terms of the supply chain, but in terms of tariffs. During the recent election campaign, President-elect Trump said he wanted to raise tariffs in sectors such as semiconductors and other strategic sectors.

“Even though we don’t know yet, we have to always be ready and engage with multinational and local companies. It is still early days,” he said.

“There are always pros and cons. The geopolitical tension was positive for Malaysia as countries like China and other countries took plus one strategy to ensure resilience of their supply chain, which ASEAN and Malaysia benefitted from.

“Especially the electrical and electronics (E&E) sector in Malaysia, which benefit most in the plus one strategy given the country has over 50 years of experience,” he said.

“But in the long term, if the tariff is increased, our concern is in terms of demand, the price will become expensive, so if it becomes expensive, consumption may decrease.”

“However, this is just an expectation,“ he added. “We don’t know yet if this will happen or not.”

Source: Bernama

Brazil at sweet spot for Malaysian semiconductor industry to de-risk supply chain – Tengku Zafrul

Keyto MY Sdn Bhd, a subsidiary of China’s Shenzhen Keyto Fluid Technology Co Ltd, has inaugurated its advanced fluid technology manufacturing plant in Batu Kawan, Penang.

The facility, which is projected to generate a revenue of RM65mil over the next three years, will be Keyto’s first overseas manufacturing plant, located in South-East Asia.

The new 3,540 sq m manufacturing facility will produce fluid management systems and precision components vital for medical devices, life science instruments and environmental monitoring.

The first phase of the facility will focus on manufacturing a range of fluid management solutions, including high-performance pumps, valves and fluid systems.

Malaysian Investment Development Authority chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the investment will attract additional foreign investments and foster innovation.

The facility will also create high-quality job opportunities for Malaysians and strengthen the country’s position in the global value chain.

Source: The Star

Keyto launches Penang advanced fluid technology plant

The government has introduced various initiatives and incentives to enhance the capacity of the local automotive industry, aiming to increase exports of vehicles, including spare parts and components, according to the Ministry of Investment, Trade, and Industry (Miti).

The ministry emphasised that fiscal and financial incentives, including reductions in both direct and indirect taxes, have been maintained alongside the provision of trade financing facilities and services for exporters through EXIM Bank.

“Among the initiatives taken is the signing of free trade agreements (FTAs) to obtain reductions in import duties when exporting to FTA partner countries,” Miti stated on the Parliament website on Monday.

It was replying to Datuk Indera Mohd Shahar Abdullah (BN-Paya Besar) regarding the development of the local automotive industry.

Miti also said that the import duty reductions obtained by local industry players also provide a cost-competitive advantage, offering greater market opportunities for local automotive companies.

“In addition, Malaysia is undertaking strategic cooperation under the Asean Mutual Recognition Arrangement (AMRA) to facilitate local automotive companies wishing to export their products.

“With AMRA, technical trade barriers, as well as certification and testing requirements, can be addressed or minimised,” it added.

Miti also shared that based on information provided by vehicle manufacturers Proton and Perodua, the total number of vehicles exported by both local brands from 2019 to September 2024 stood at 24,272 units.

Of this total, 17,118 units were Proton models, while the remaining 7,154 units were Perodua models.

Source: Bernama

Govt offers various initiatives, incentives to drive local automotive industry, says MITI