Prime Minister Datuk Seri Anwar Ibrahim has urged the electrical and electronics (E&E) and semiconductor industries of Malaysia and Brazil to leverage each other’s strengths and enhance collaboration, particularly given the increasing prominence of the Global South.

“Although we are from distant lands, the potential is immense. Brazil is a key pillar of the Latin American economy, while Malaysia is rapidly establishing itself as a semiconductor hub and an attractive destination for data centres and artificial intelligence,“ Anwar said.

Speaking at a roundtable meeting with representatives from the semiconductor industry and captains of industries here, today, he underscored the importance of this partnership for driving innovation and progress among nations in the Global South.

“So, the collaboration with Brazil, to me, is very critical at this point, as it will enable countries in the South to harness their expertise, knowledge, and research to excel in areas where they can make a significant impact,“ he said.

He also highlighted opportunities for cooperation beyond traditional sectors.

“In the context of the Global South, it is important for us to strengthen collaboration while continuing open trade engagements with major economies like the United States and China,“ he said.

The event was attended by 34 corporate leaders from 20 prominent companies across various industries.

Also present was Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz.

Acoording to Anwar, although the volume of semiconductor trade and export from Brazil is relatively small compared to Malaysia, the industry in Brazil has excelled in some areas that can be advantageous to both countries.

Malaysia has a comprehensive semiconductor ecosystem covering front-end and back-end activities, and it is currently the sixth largest semiconductor exporter globally with exports exceeding US$85 billion.

Malaysia’s ecosystem includes global giants such as Intel, Infineon, Micron, and Texas Instruments, as well as homegrown champions like Carsem and Inari.

Meanwhile, Brazil’s semiconductor export value stands at US$1 billion, and the country’s competitive edge lies in the manufacturing of integrated circuits.

Anwar, who is also Malaysia’s Finance Minister, said that the potential collaboration in the semiconductor industry was one of several topics discussed during his meeting with Brazilian President Luiz Inácio Lula da Silva on Sunday.

“We are both very neutral on trade and development, and we take a very independent view of international issues and conflicts. We are not dictated by any superpower, and that makes our stance quite similar in terms of our foreign policy interaction.

“And to me, what is especially significant is that both of us want to focus on the economy, developments and new technologies,” he said.

Anwar arrived in Rio de Janeiro on Saturday for his first official visit to Brazil on da Silva’s invitation, after participating in the APEC Economic Leaders’ Week in Lima, Peru.

Malaysia was among 17 guest nations invited to the G20 Summit in Brazil, alongside countries like Chile, Qatar, Egypt, and Singapore.

In 2023, Brazil, the largest country in South America, was Malaysia’s 20th largest trading partner, 29th largest export destination and 17th largest import source.

Among Latin American and Caribbean countries, Brazil is Malaysia’s second-largest trading partner, second-largest export destination and largest import source.

Source: Bernama

Malaysia-Brazil partnership holds huge promise for E&E, semiconductor industry – PM Anwar

The government, through the Ministry of Investment, Trade and Industry (MITI), will soon release the findings of a report examining the impact of excess capacity from China, particularly in the iron and steel sector.

Deputy Minister Liew Chin Tong said the report was prepared by an independent committee established by MITI.

He added that the issue of dumping Chinese-manufactured products, driven by the country’s economic slowdown, especially in the construction and real estate industries, is a concern not only for Malaysia but globally.

“Capacity in Southeast Asia for iron and steel is set to rise over the next five to six years. In 2021, total capacity in the region was 75 million metric tons, with the potential to more than double to 150 million metric tons by 2026.

“The independent committee has prepared the relevant report for MITI, which will provide direction on addressing the issue of excess capacity in the iron and steel industry,“ Liew said in response to additional questions from Datuk Seri Saifuddin Abdullah (PN-Indera Mahkota) during an oral question and answer session in the Dewan Rakyat today.

Saifuddin sought details on the government’s specific plans to address the dumping of iron and steel products and their production in China.

Liew also noted that between 2015 and 2023, the government imposed nine anti-dumping measures and three protective measures against products imported from China, including iron and steel, plastics and construction materials, which have caused significant harm to Malaysia’s domestic industry.

“The government is also investigating four iron and steel products and plastics for potential anti-dumping violations arising from overcapacity in China’s manufacturing sector.

“The investigation aligns with Malaysia’s domestic laws and regulations, as well as with agreements under the World Trade Organisation,“ Liew explained, responding to a question from Datuk Seri Utama Ir Hasni bin Mohammad (BN-Simpang Renggam).

Hasni had inquired about the measures taken by the government to protect the local industry from the effects of China’s overcapacity, including price pressures on local products and the potential hindrance to the growth of Malaysia’s manufacturing sector, as well as strategies to ensure the long-term competitiveness of the Malaysian industrial sector.

Liew said MITI has also announced the revision of Act 504 and the Countervailing and Anti-Dumping Duties Regulations 1994 to better align with current international trade practices.

This revision aims to create a more conducive regulatory environment, positioning Malaysia as a sustainable business hub.

Additionally, MITI has launched the Trade Remedies Investigation Management System (TRIMA), a digital Single Window platform designed to modernise trade remedy investigations.

TRIMA will streamline the investigation process and reduce inquiry durations, potentially shortening the current statutory nine-month timeframe.

Source: Bernama

MITI to unveil report on China’s iron and steel overcapacity impact – Liew

Malaysia is poised to become a regional industrial gateway following its collaborations with Brazil in the semiconductor sector, said Malaysia’s Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

“By leveraging our Asean chairmanship, we can position the region as a global hub for semiconductor innovation and manufacturing, benefitting not only Malaysia and Brazil but all Asean member states,” he said during the Malaysia-Brazil semiconductor industry meeting here on Sunday (Nov 17).

In his opening remarks, he said the meeting was not only a platform to showcase Malaysia’s strengths but also an opportunity to forge meaningful partnerships.

Also present were MIMOS Bhd’s chief executive officer (CEO) Dr Saat Shukri Embong, Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai, Brazilian Association of the Electrical and Electronic Industry president Dr Humberto Barbato, and the Brazilian Association of the Semiconductor Industry president Rogério Nunes.

Zafrul said that Malaysia aims to attract RM500 billion in investments by 2030, and establish 10 local semiconductor industry champions with revenues exceeding RM1 billion each.

These targets, including the training and upskilling of 60,000 engineers, are part of the National Semiconductor Strategy.

During the meeting, Tengku Zafrul also witnessed the signing of two memoranda of understanding (MOUs) involving the semiconductor industries of Malaysia and Brazil.

The first MOU was inked by Saat and Eldorado Institute CEO Roberto Soboll, while the second MOU was signed by Wong and Barbato. 

Malaysia has a comprehensive semiconductor ecosystem that spans front-end and back-end activities. 

The country is currently the sixth largest semiconductor exporter globally, with over US$85 billion (RM379.45 billion) worth of semiconductor exports.

Malaysia’s semiconductor ecosystem includes global giants such as Intel, Infineon, Micron, and Texas Instruments, as well as homegrown champions like Carsem and Inari. 

These players have turned Malaysia into a trusted hub for various industries, ranging from automotive to medical devices.

Source: Bernama

Tengku Zafrul: Semicon collab with Brazil poised to make Malaysia a regional industrial gateway

The government will continue to provide incentives for the development of electric vehicle (EV) charging infrastructure, even though these incentives were not specifically mentioned in Budget 2025.

The Ministry of Investment, Trade and Industry (Miti) said among the incentives are Green Investment Tax Allowance (Gita) programme whereby the charging point operators (CPOs) who meet the tax incentive criteria can receive a 100% tax exemption in the form of an investment tax allowance for a period of five years.

This allowance can be used to offset up to 100% of statutory income for each assessment year.

“In addition, incentives in the form of income tax exemptions are also being offered to companies manufacturing EV charging equipment in the form of a full income tax exemption on statutory income starting from the assessment year 2023 until the assessment year 2032,” said Miti.

The ministry said this in a written reply on the Parliament website on Monday in response to a question from Tan Kok Wai (PH-Cheras) regarding the specific allocations for the development of EV charging infrastructure in the current budget.

Miti also said the government expects the total number of electric-powered vehicles (xEV) on the road to reach at least 400,000 passenger and commercial vehicles by 2030.

As of Sept 30, 2024, the total annual sales for vehicles, including hybrid, plug-in hybrid, battery electric vehicles (BEVs), and fuel cell electric vehicles (FCEVs), amounted to 33,319 units. For the whole of 2023, the sales rate was 4.12%, or 35,723 units.

Meanwhile, in supporting the development of EV charging bays (EVCBs), the ministry said that Petronas’ subsidiary Gentari and Tenaga Nasional Bhd (KL:TENAGA) have committed to making investments and had spent around RM76 million up to June 2024.

With the significant financial involvement of both companies, more EVCBs are expected to be built across Malaysia, supported by other CPOs that also provide EV charging services to the public.

“This positive development has helped boost the confidence of EV enthusiasts in purchasing and using these vehicles,” according to Miti.

Currently, there are about 30 CPOs operating in the local market.

Source: Bernama

MITI: Govt provides incentives for EV charging infrastructure development

Malaysia is poised to become a regional industrial gateway following its collaborations with Brazil in the semiconductor sector, said Investment, Trade and Industry Minister, Tengku Datuk Seri Zafrul Abdul Aziz.

“By leveraging our Asean chairmanship, we can position the region as a global hub for semiconductor innovation and manufacturing, benefiting not only Malaysia and Brazil but all Asean member states,” he said during the Malaysia-Brazil semiconductor industry meeting here today.

In his opening remarks, he said the meeting was not only a platform to showcase Malaysia’s strengths but also an opportunity to forge meaningful partnerships.

Also present were MIMOS Bhd’s chief executive officer (CEO), Dr Saat Shukri Embong; Malaysia Semiconductor Industry Association president, Datuk Seri Wong Siew Hai; Brazilian Association of the Electrical and Electronic Industry president, Dr Humberto Barbato, and the Brazilian Association of the Semiconductor Industry president, Rogério Nunes.

Tengku Zafrul said Malaysia aims to attract RM500 billion in investments by 2030 and establish 10 local semiconductor industry champions with revenues exceeding RM1 billion each. These targets, including the training and upskilling of 60,000 engineers, are part of the National Semiconductor Strategy.

During the meeting, Tengku Zafrul also witnessed the signing of two memoranda of understanding (MoU) involving the semiconductor industries of Malaysia and Brazil. The first MoU was inked by Saat and Eldorado Institute CEO, Roberto Soboll, while the second MoU was signed by Wong and Barbato.

Malaysia has a comprehensive semiconductor ecosystem that spans front-end and back-end activities.

The country is currently the sixth largest semiconductor exporter globally, with over US$85 billion worth of semiconductor exports. Malaysia’s semiconductor ecosystem includes global giants such as Intel, Infineon, Micron, and Texas Instruments, as well as homegrown champions like Carsem and Inari.

These players have turned Malaysia into a trusted hub for various industries, ranging from automotive to medical devices.

Source: Bernama

Tengku Zafrul: Malaysia-Brazil semiconductor collaboration to drive regional industry

As we enter the final two months of 2024, what are the expectations for the semiconductor industry? TechInsights’ 2025 semiconductor manufacturing outlook estimated that integrated circuit (IC) sales will witness increases of 17% and 14% in silicon demand and semiconductor capital expenditure respectively. Second, there will be a 20% rise in equipment sales, driven by strong demand from China. Third, the glass substrate business continues to optimise cost and performance in advanced packaging. Fourth, the subsystem market will grow 15%, driven by continued investment and overall market growth. Fifth, there will be significant advancements in the semiconductor testing market, with strong growth in probe cards, test and burn-in sockets, and interface boards.

In short, strong semiconductor manufacturing expectations in 2025 will be driven by robust semiconductor sales growth in 2024. As at 3Q2024, global semiconductor sales grew 23% to reach US$166 billion (RM745 billion). This substantial growth driven by rising demand for artificial intelligence (AI), 5G and electric vehicles in turn led to a significant production surge for logic and memory chips, and specifically graphic processing units and high-bandwidth memory. The new chips not only provide higher computing power but also enormous data storage capacity and faster read/write speeds that enable AI to pull data much faster than a traditional hard disk drive in the data centre.

As more IC units are being sold, they are driving better sales in semiconductor equipment. According to SEMI’s latest data, IC equipment sales reached US$53 billion in the first half of 2024 and are projected to reach US$128 billion in full-year 2025. The sales forecast comes from strong equipment investment in Asian regions. China’s purchases alone exceeded US$24 billion, driven by the country’s ambitious goal to develop its own AI chatbots, independent of Western influence. Although Taiwan’s and South Korea’s semiconductor equipment investments are insignificantly smaller compared with China’s, TSMC and Samsung foundries are focused on developing advanced chips, whereas China is heavily invested in 300mm fabs.

The top five leading front-end equipment vendors — Advanced Semiconductor Materials Lithography (ASML), Tokyo Electron, Kokusai Electric, Applied Materials, and Lam Research — accounted for 74% of the total IC equipment sales in the first half of 2024. ASML was the market leader in the wafer fabrication equipment segment, producing top-of-the-line extreme ultraviolet (EUV) lithography machines that are critical to producing the smallest and most powerful chips to support AI applications. Three weeks ago, ASML revealed that the number of machines it ordered in 3Q2024 was lower than expected, resulting in US$56 billion being wiped off its market cap, larger than Intel’s loss of US$30 billion in August.

In 3Q2024, China accounted for almost 50% of ASML’s total sales, purchasing US$2.8 billion worth of equipment, which is more than double its revenue from the US. This equipment can only be used for production of chips used mainly in consumer appliances such as refrigerators, phones, toys and automobiles. For comparison, ASML’s sales to Taiwan and South Korea were US$951 million each, where Taiwan is a leading producer of logic chips, while South Korea is a major manufacturer of memory chips. Investment in foundries has slowed, as companies realised that the EUV machines are very expensive. Each of the latest EUV machines cost US$350 million, equivalent to the price of an Airbus A350! As TSMC senior vice-president of business development Dr Kevin Zhang remarked, “I like the high-NA EUV’s capability, but I don’t like the sticker price.” Buoyed by export controls and market dynamics, ASML finds itself balancing the immediate revenue boost from China’s demand for less advanced machines with the slow uptake of cutting-edge machinery in Taiwan and South Korea. Despite this, analysts expect capital spending to likely increase again in 2025.

As ASML’s sales slow down, the back-end equipment sector is experiencing growth. Quarterly revenue grew 8.5% year on year, reaching US$1.3 billion in 2Q2024, driven by strong growth coming from wafer and die preparation and packaging equipment for advanced packaging solutions. The world’s leading back-end equipment suppliers — Hanmi, Hanwha, Semes, ASMPT, and Kulicke and Soffa (K&S) — together contributed 22% of the total IC equipment market. While front-end equipment sales are stronger, back-end equipment suppliers face fewer restrictions from export controls. Yole Group’s analysts forecast that back-end equipment revenue will reach US$1.74 billion in 1Q2025, with China as the largest buyer.

Malaysia also played a significant role in this segment of back-end equipment revenue. The Herfindahl-Hirschman Index, which measures market concentration, reveals that Malaysia hosts a sufficient number of vendors to sustain the supply of back-end equipment. This suggests that Malaysia has the ability to create a diverse and competitive equipment market, capable of supporting the needs of both local and foreign chipmakers. In 2022, Malaysia sold US$171 billion worth of industrial manufacturing equipment. Of this total, Malaysian Bursa-listed semiconductor manufacturing equipment suppliers, including Aemulus Holdings Bhd (KL:AEMULUS), Edelteq Holdings Bhd (KL:EDELTEQ), Elsoft Research Bhd (KL:ELSOFT, Greatech Technology Bhd (KL:GREATEC), Mi Technovation Bhd (KL:MI), MMS Ventures Bhd (KL:MMSV), Pentamaster Corp Bhd (KL:PENTA), TT Vision Holdings Bhd (KL:TTVHB), VisDynamics Holdings Bhd (KL:VIS) and ViTrox Corp Bhd (KL:VITROX), accounted for 34% of industrial machinery sales. China is not only the largest buyer of such machines from the West, but also one of the most attractive markets for Malaysian suppliers.

Despite harsh export controls implemented under the Biden administration, the semiconductor trade remains relatively stable. The return of Donald Trump as president-elect on Nov 5, 2024, raises some concerns about erratic decisions. In an interview in October with an American podcaster, Joe Rogan, Trump said that he did not like the CHIPS Act, and criticised the US CHIPS Act, saying that he would implement tariffs on chips from Taiwan if elected president. “You know, Taiwan, they stole our chip business … and they want protection,” Trump said.

Nevertheless, once Trump settles down, the semiconductor business in the short term should remain robust, as demand for powerful chips to drive artificial intelligence and military equipment and data centres needed by the great and middle powers would keep demand strong. In the medium term, there is worry about oversupply arising from the upturn in overall capacity. The market leaders seem to have their markets intact, whereas those with lagging technology may be the losers.

Tan Sri Andrew Sheng writes on Asian global issues. Loh Peixin is a research associate at the George Town Institute of Open and Advanced Studies, Wawasan Open University. The authors are engaged in a major study of the tech industry in Penang.

Source: The Edge Malaysia

Outlook for semiconductor manufacturing equipment market remains fair

Amid current headwinds, the local manufacturing sector is anticipated to stabilise as it enters 2025 with the global electronics downcycle projected to bottom out.

According to the latest World Semiconductor Trade Statistics, the global semiconductor market is forecasted to grow by 12.5% next year, reaching an estimated valuation of US$687bil.

It said this growth is expected to be driven primarily by the memory and logic sectors, which are on track to each soar above US$200bil in 2025, representing an increase of more than 25% for memory and over 10% for logic compared to the previous year.

This bodes well for the Malaysian manufacturing sector, particularly the semiconductor business, industry experts noted.

OCBC senior Asean economist Lavanya Venkateswaran told StarBiz that the bank anticipates Malaysia’s manufacturing sector to stabilise in 2025, following the expected bottoming out of the global electronics downcycle in 2024.

“The growth rate for the global semiconductor market is expected to moderate to 12.5% year-on-year in 2025, versus 16% in 2024.

“This will likely imply a stabilisation of semiconductor production, even for Malaysia, by next year,” she added.

The manufacturing sector is one of the key drivers of the economy, which expanded by 5.3% in the third quarter of 2024.

The growth was primarily due to strong investment activity and continued improvement in exports.

Meanwhile, TA Research is optimistic about the outlook for domestic manufacturing, noting that the Purchasing Managers’ Index (PMI), a key indicator of the sector’s future business conditions, is expected to continue expanding at a sustained pace despite sentiment easing slightly.

The brokerage noted that the average PMI reading for the first 10 months of the year remained resilient, reflecting sustained improvement in the growth of the manufacturing sector.

“Looking ahead, new-order growth is expected to continue over the coming year, bolstering optimism about the 12-month outlook for manufacturing production.”

TA Research was referring to the improvement seen in the average PMI for the first 10 months of 2024, which stood at 49.4, compared with 47.7 during the same period last year and the 47.8 average recorded in 2023.

The seasonally adjusted S&P Global Malaysia manufacturing PMI held steady at 49.5 even though the sector experienced a slowdown in October with subdued business conditions, as production volumes were scaled back more significantly compared to September.

The manufacturing PMI gauges the prevailing economic trends in the sector. A reading above 50 signals expansion, while a reading below 50 indicates contraction.

Economist and Williams Business Consultancy Sdn Bhd founder Geoffrey Williams said the manufacturing PMI has been below 50 for the past five months, from June to October 2024, signalling a contraction in the sector.

However, Williams noted that manufacturing sales have been growing this year, after contracting from June to December last year.

He explained that sales in the first half of 2024 are likely to be sales from inventory stocks, while actual sales have slowed from July onward.

Given this trend, the signal is that manufacturing sales will continue to contract or will be sustained by inventory stocks in 2024, but may improve in 2025 as the PMI is only slightly below 50, he added.

“There may be some push from higher exports but the appreciation of the ringgit makes exports more expensive.

“Thus, any extra export sales will depend on global economic growth, which is likely to improve in 2025 but the picture remains cautious.”

Williams highlighted that headwinds for the manufacturing sector may arise from caution related to possible US tariffs, which might hold back sales until the situation becomes clearer.

On the whole, this might benefit Malaysia but many are still in a “wait and see” mode,” he said.

Commenting on the manufacturing PMI, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the index is a reflection of sentiment among the manufacturers, which has mostly remained below the 50-point threshold.

Generally, he said manufacturers are pessimistic because the cost of doing business is rising, such as logistics, raw material and labour costs.

On top of that, there is a sense of anxiety over the global environment, especially geopolitical tensions, which are affecting supply chains.

“However, judging from the manufacturing sector’s Industrial Production Index, production activities have picked up pace from a 2.1% growth in the first quarter of 2024 (1Q24) to 4.9% and 5.8% in 2Q24 and 3Q24, respectively.

“On that note, manufacturers have been busy. So, we have a situation where manufacturers remain guarded and with Trump helming the United States presidency, we can expect the PMI to remain muted,” he pointed out.

Therefore, he said the PMI for 2024 and 2025 could linger around 50, or slightly lower.

On the headwinds that could impact local manufacturing activities this year and next, Mohd Afzanizam said these challenges would be externally driven.

“Trump’s policies on tariffs, China’s slowdown and geopolitical risks (relating to Ukraine and in Gaza) are likely to wreak havoc on the global financial and commodities markets, which could impact local manufacturing activities,” he said.

OCBC’s Lavanya agreed, stating that the biggest risks to Malaysia would be from external factors.

“The potential imposition of tariffs by the United States on key trading partners, geopolitical risks and lower-than-expected demand for semiconductors are key challenges to Malaysia’s industrial production outlook,” she said.

Source: The Star

Manufacturing to stabilise in 2025

The second Malaysia Semiconductor IC Design Park in Cyberjaya, Sepang will be launched early next year, said Selangor Menteri Besar Datuk Seri Amirudin Shari.

Amirudin said the launch of the second integrated circuit (IC) design park was a follow-up to the successful establishment of such a park in Puchong by the Selangor Information Technology & Digital Economy Corporation (SIDEC) which successfully attracted the participation of seven local and international IC companies.

He said, the initiative was the result of close cooperation between the state government and the federal government.

“For that purpose, the Selangor government will contribute RM50 million, which is RM10 million a year from 2024 until 2029, while the federal government through the Ministry of Economy is estimated to channel RM100 million,” he said when tabling the Selangor Budget 2025 at the Selangor State Legislative Assembly here today.

At the same time, Selangor Digital School (SDS) will be upgraded to Advanced Semiconductor Academy of Malaysia (ASEM) which will develop an 80,000 square foot campus in the second IC design park, Amirudin said

Meanwhile, Amirudin said the Selangor AI Incubator Centre, which is a facility in the field of artificial intelligence (AI), will be developed with the first phase conceptualised as a technology training centre to be equipped with facilities for the AI incubator programme as well as offering specific education and certification programmes in the field.

He said the overall allocation for all these AI initiatives amounted to RM5 million, which reflected the commitment of the state government to prepare Selangor to enter the gates of AI.

“The state government is also always ready to cooperate with other AI service providers to expand the scope of the technology in Selangor,” he said.

Source: Bernama

Selangor MB: Second Malaysia Semiconductor IC Design Park to be launched early next year

Selangor is ready to work closely with industry players to reap the benefits of new technologies such as artificial intelligence (AI).

Menteri Besar Datuk Seri Amirudin Shari said the state is planning to leverage the use of AI to increase the productivity of workers and enhance the government’s efficiency.

He said this was the guiding philosophy behind the launch of the Speed Selangor Policy which will kick off next year, adding that the policy will reduce the processing and wait times businesses currently face when dealing with planning permission or acquiring a business license after receiving the certificate for completion and compliance (CCC).

“Beginning next year, we aim for local authorities to provide business licenses within 24 hours upon ticking all the CCC boxes,“ he said in his speech at the Selangor International Business Summit (SIBS) 2024 Appreciation Dinner, here today.

Amirudin also highlighted Selangor’s ambitious targets for the semiconductor sector, supported by a substantial investment planned for 2025.

“We are keen to attract more companies from China and Taiwan to establish their presence in Selangor, particularly those investing in the design phase of integrated circuits,” he said.

Commenting on SIBS 2025, Amirudin emphasised Selangor’s commitment to continue evolving and improving the summit even further.

“Our next focus for SIBS will be on promoting high-growth sectors, embracing technological innovation, and cultivating a highly skilled international workforce capable of meeting the evolving demands of the global industries.

“With a strong foundation in place, the summit is well-positioned to continue building upon these successes and remain a beacon of opportunity, where businesses thrive, partnerships deepen, and innovation reaches new heights,“ he added.

SIBS 2025 will return to the all-in-one format and will be held in a single week from Oct 8 – 11, 2025, at the Kuala Lumpur Convention Centre (KLCC), added Amirudin.

Source: Bernama

Selangor ready to work with industry players to leverage AI benefits – Amirudin

Malaysia is expected to become Southeast Asia’s packaging for manufacturing hub within 10 years, said Reed Exhibitions (RX) China chief operating officer Josephine Lee.

Lee said that with strategic changes in the global manufacturing industry, Southeast Asia has become one of the most dynamic and promising regions for economic development.

“Malaysia, as a key player in the Southeast Asian packaging market, is experiencing significant growth and transformation, particularly in the food and beverage, e-commerce, and healthcare sectors.

“The Southeast Asian packaging market is expected to see rapid growth, with the regional gross domestic product forecast to expand by 4.7% in 2025-2026,” she told reporters at the launch of Wepack Asean 2024 yesterday.

Regarding the performance of Malaysia’s packaging industry this year, the Malaysian Corrugated Carton Manufacturers’ Association (MACCMA) chairman Henry Low anticipated a more robust industry performance recovery around March or April 2025.

“This is due to regional and seasonal factors as well as global economic pressures, which are key contributors to the current trend.

“This recovery may be spurred by anticipated improvements in MalaysiaChina relations following upcoming political developments, which could influence investment flows and trade conditions,” he added.

Wepack Asean 2024, organised by RX in collaboration with MACCMA, is the most professional exhibition on packaging container manufacturing and its applications in Southeast Asia.

The trade show, which is the second edition in Malaysia held at the Malaysia International Trade and Exhibition Centre from Nov 14-16, is expected to receive more than 5,000 delegates from around the world to explore and learn the latest technologies in the industry, sustainable solutions, and opportunities for transformational growth. 

Source: Bernama

Malaysia set to become SE Asia’s packaging for manufacturing hub: Reed Exhibitions

Petroliam Nasional Bhd has made new investments totalling RM7.5 billion at the Pengerang Integrated Complex (PIC) near Kota Tinggi.

Johor Menteri Besar Datuk Onn Hafiz Ghazi said that the investment includes a 40-megawatt solar energy project, a collaboration between Petronas Chemicals Group Bhd (PCG) and LG Chem, for the production of nitrile butadiene latex, a state-of-the-art chemical recycling plant for plastics, and the development of a bio-refinery, which is expected to begin operations by 2028.

He said various development plans have been outlined for the Pengerang Integrated Petroleum Complex (PIPC), which covers approximately 9,268.9 hectares and will be developed in four phases to create a downstream oil and gas chain in Johor, from 2012 to 2037.

“Alhamdulillah, I had the opportunity to meet with Petronas management to discuss the latest progress at the PIC. I was also informed that the PIC has completed the Integrated Performance Test (IPT) for 54 of their plants.

“I hope that these developments will bring economic spillovers and attract new investors so that Johor’s aspiration to become a developed state by 2030 can be achieved. Insya-Allah,” he said in a Facebook post today.

PIC is located within the PIPC, an industrial development under the jurisdiction of Johor Petroleum Development Corporation Bhd (JPDC), which is a government agency mandated to coordinate, facilitate, and promote the development of the downstream oil and gas industry in Johor.

Source: Bernama

Petronas pumps RM7.5b into Pengerang complex for solar energy project, bio-refinery development, says Johor MB

The Ministry of Economy is committed to ensuring that phase one of the Kedah Rubber City (KRC) development will be completed within a year, said Economy Minister Rafizi Ramli.

“I am confident that within a year we will be able to successfully complete phase one (of KRC) and it will allow the Ministry of Economy to assess whether we can build or upgrade the road from Padang Terap to Alor Setar,“ he told Parliament today in wrapping up the debate on the Supply Bill 2025.

In addition, Rafizi said the Ministry of Finance (MoF) is also in the process of developing and implementing a new incentive package for KRC.

He said the ministry was aware that the existing incentive package would expire on Dec 31, 2024 when he chaired the exco meeting of the Northern Corridor Economic Implementation Authority (NCIA) recently.

“The MOF is in the process of developing and implementing a new incentive package but it will be more about location and the focus will be on certain industries,“ he said.

Source: Bernama

Govt committed to ensuring phase one of KRC development completed within a year – Rafizi

SBH Kibing Solar New Energy (M) Sdn Bhd has signed a deal for a RM7.2 billion solar glass manufacturing plant in Kimanis.

Sabah Chief Minister Datuk Seri Hajiji Noor said the new investment, signed with two government-linked companies, was significant. He said it would boost economic growth for Sabah and create jobs for the local communities.

Hajiji oversaw the exchange of the sublease agreement between SBH Kibing and Fokasrama Sdn Bhd, a wholly owned subsidiary of the Sawit Kinabalu Group.

The sublease agreement will pave the way for the development of a state-of-the-art solar glass manufacturing plant, set to become one of the largest facilities of its kind in the region.

This development is part of SBH Kibing’s plans to expand Sabah’s renewable energy infrastructure, enhance its global solar energy market position and complement the China-based company’s existing plant at the Kota Kinabalu Industrial Park (KKIP).

The new solar glass facility also highlights Kibing’s commitment to renewable energy growth in Sabah and establishing a key manufacturing site in the state.

Representing Fokasrama Sdn Bhd was Sawit Kinabalu Group managing director and chief executive officer Datuk Victor Ationg, while chairman William Chen represented SBH Kibing Solar New Energy.

The second exchange of documents was for the Heads of Agreement between SBH Kibing Solar New Energy and Sabah Energy Corporation Sdn Bhd (SEC) to supply 45 million standard cubic feet per day of natural gas to support the new factory’s operations.

As Sabah’s primary natural gas provider, SEC continues to play an important role in driving regional economic growth through reliable and cleaner energy solutions.

Representing SEC was chief executive officer Datuk Adzmir Abd Rahman while deputy managing director Celine Li represented SBH Kibing Solar New Energy.

Present were state Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe, SEC chairman Datuk Annuar Ayub, State Secretary Datuk Seri Haji Safar Untong and senior officials.

Hajiji later chaired the Sawit Kinabalu and Borneo Samudera board of directors’ meeting.

Source: NST

SBH Kibing inks RM7.2 billion deal for solar glass plant in Kimanis

Leveraging expertise in manufacturing, semiconductor

Malaysia aims to transition from its long-standing role as a manufacturer of automotive components to become a key player in designing chips for the automotive industry.

This grand ambition is achievable, according to Investment, Trade and Industry Deputy Minister Liew Chin Tong, by leveraging the country’s expertise in both car manufacturing and semiconductor technology.

It can also reduce Malaysia’s dependence on petroleum and promote sustainability.

Liew said Malaysia not only has 40 years of experience in car manufacturing, but it also has a strong semiconductor cluster.

“We are hoping that there will be a horizontal crossing between the automotive and semiconductor industries, so that one day we will also be known for designing chips for the automotive sector,” he told reporters after the opening ceremony of E-mobility Asia 2024.

“Electrification has a big role to play. If we can deal with that, we can address subsidy issues, petroleum consumption and balance of payments as the import bill is huge,” he added.

According to the National Energy Transition Roadmap, Malaysia targets electrified vehicles (xevs) to account for 20% of total industry volume (TIV) by 2030, 50% by 2040 and 80% by 2050. While these goals are ambitious, Liew said they are achievable with a “concerted effort.”

Citing a report by the International Energy Agency, Liew noted that in 2018, xevs made up only 2% of global TIV.

By 2022, this figure had risen to 14% and by 2023, it stood at 18%.

Having produced local automotive brands since 1983, Liew said Malaysia has a solid foundation and now is the time to “think big” to drive the exponential growth required for electrification.

Malaysia Automotive, Robotics and IOT Institute (MARII) chief executive officer Azrul Reza Aziz noted that the rise of electric vehicles (EVS) has spurred the development of a new sector and supply chain driven by innovation, particularly in battery technology and charging infrastructure.

He said MARII will be organising the Global Automotive Technology Exchange (Gate) expo, which is set to launch in 2025.

“Gate is an ambitious platform designed to establish Malaysia as a regional and global hub for automotive technology, specifically in the areas of EVS, connected mobility and next-generation vehicle (NXGV) innovations,” he noted.

EMA will operate under the pillars of Gate, providing a focused platform for EV production and green e-mobility awareness. Gate will take a broader approach, emphasising after-sales services, ensuring long-term support and innovation in the lifecycle of EVS and NXGVS.

Meanwhile, Prof Azizan Ahmad, a member of Universiti Kebangsaan Malaysia’s battery technology research group, urged the government to establish clear policies, considering both macro and micro perspectives.

“On the macro level, the government should look at policies, incentives for green batteries, and research and development,” Azizan said during a panel discussion.

He suggested Malaysia set its own standards to ensure that imported batteries meet quality and environmental criteria.

Source: The Star

Pioneering car chip design

The government is strengthening ties with developed countries and leading multinational companies in the semiconductor industry in an effort to increase technological collaboration, said the Ministry of Investment, Trade and Industry (Miti).

“Through this approach, the government hopes to increase technology and knowledge transfer, gain expertise in high-tech chip production as well as attract more investments from multinational companies that want to take advantage of the country’s market potential and infrastructure,” it said.

Miti was making a written reply on the parliament website today to a question by Datuk Seri Amirudin Shari (PH-Gombak) regarding the latest status and details of the National Semiconductor Strategy and support measures to increase the potential of the semiconductor industry, especially at the high-end level.

Miti said that as of the third quarter of 2024, several important advancements had been achieved in the country’s semiconductor industry, among which a total of 500 engineers and 557 technical workers had been trained to strengthen Malaysia’s technical expertise in integrated circuit (IC) design and semiconductor production while a total of 4,673 individuals had been employed.

The government has successfully attracted investments worth RM34.6 billion as of the third quarter of 2024, of which RM0.97 billion was from domestic investments while RM34 billion was from foreign investments and as many as three local IC design companies had been established during that period, it said.

Miti also said the annual total sales rate for electric vehicles (EVs) including hybrid, plug-in hybrid, battery-powered electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs) achieved as of September 2024 was 5.11%, while for the entire year 2023, the rate was 4.12%.

It said the total usage of new passenger and commercial BEVs is higher in 2024 with 15,876 units and 13,513 units in 2023, compared to 3,146 units in 2020.

“This achievement is the result of the joint efforts of ministries and government agencies with the industry to help ensure the formation of the EV industry ecosystem is more planned and orderly.

“Before 2018, the usage of EVs was low and had not developed widely in Malaysia and the region,” it said.

From the planning aspect, the government has set a target of 10,000 public charging points by 2025 covering all states including strategic locations, whether based on demand or access, MITI said in a reply to Zahir Hassan’s (PH-Wangsa Maju) question regarding the ministry’s strategy to increase the use of EVs in Malaysia.

Source: Bernama

Govt expands collaboration with global semiconductor players — Miti

US-based medical devices company Dexcom Inc has officially opened its new manufacturing facility, also its first offshore manufacturing site outside the US, in Batu Kawan, Penang.

Penang Chief Minister Chow Kon Yeow said the RM2.83 billion strategic investment will bring more than 3,000 jobs to the state, contributing to a workforce set to positively impact the lives of over three million people worldwide. 

Dexcom, founded in 1999, is a global leader in continuous glucose monitoring (CGM) technology for individuals living with diabetes. 

“The establishment of this new facility highlights Dexcom’s continued commitment to taking control of health through innovative CGM systems. 

“It also reaffirms Penang’s reputation as a global hub for advanced technological industries, reinforcing its position as a preferred destination for high-quality manufacturing and innovation,” the chief minister said in his speech at the opening ceremony here on Tuesday.

Penang Development Corporation chief executive officer Datuk Aziz Bakar, InvestPenang CEO Datuk Loo Lee Lian, and Dexcom chief operating officer Jake Leach were also present at the event.

Chow said Penang is on the right path towards becoming the medical technology (medtech) hub of Southeast Asia by leveraging the state’s over 50 years of industry excellence.

“Housing the largest number of medtech companies nationally and regionally, Penang remains a highly attractive location for its infrastructure availability and ecosystem that meet the needs of the medtech industry. 

“For the past five years (2019-2023), Penang garnered a total of RM5.8 billion worth of investments in the scientific and measuring equipment sector, representing 45% of the nation’s total investments in this sector, involving 33 projects and generating an estimated 4,630 employment opportunities,” he said.

Dubbed the Silicon Valley of the East, Penang has reportedly the highest concentration of medtech companies in Malaysia and Southeast Asia to date. 

Chow added that Penang maintained its lead as the nation’s top exporter in September, with a 37.5% share or RM46.5 billion of total trade.

Meanwhile, in a statement on Tuesday, Malaysian Investment Development Authority (Mida) CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said Dexcom’s establishment in Malaysia signifies a pivotal moment for the country’s medical devices sector. 

He highlighted that the state-of-the-art facility would drive advancements in Malaysia’s point-of-care segment, which would create high-value job opportunities and facilitate technology transfer. 

“This project aligns with the objectives of our New Industrial Master Plan 2030, particularly in fostering economic complexity through innovation and nurturing a skilled talent pool. 

“Mida is confident that the country’s supply chain resilience will further bolster Dexcom’s growth trajectory in Malaysia by enhancing the local supplier ecosystem,” he added.

Source: Bernama

Dexcom opens Penang manufacturing facility with RM2.83b investment

Malaysia has significant potential to become a regional hub for electric vehicle (EV) manufacturing in Asean, thanks to its 40-year history in automotive production since 1983 and its strong semiconductor cluster, said Deputy Minister of Investment, Trade and Industry Liew Chin Tong.

He said the country aims to foster greater integration between the automotive and semiconductor industries, with the goal of becoming a leading hub for designing chips specifically for the automotive sector.

“Malaysia is a very interesting place; we are the sixth largest exporter of semiconductor products in the world. While we may not have a homegrown brand, we play a very big role especially in the backend,” he said in a keynote address before officiating the E-Mobility Asia exhibition here, on Tuesday.

He shared that during his visit to Detroit, US, last year, US Secretary of Commerce Gina M Raimondo remarked in a meeting that when Malaysia went into lockdown during the Covid-19 pandemic, automotive factories in Detroit were forced to shut down.

“This is because the chips they relied on came from Malaysia and some semiconductor companies in Malaysia contributed substantially in global automotive chips.

“Therefore, when talk about automotive industry, especially the electrification of mobility, it is important that we do not work in silos or focus solely on individual verticals.

“I would like to see this industry cross in the horizontal manner, (fostering the) creation of new products, integrated circuit designs, and automotive chips that are proudly Malaysian. This will enable us to not only export automotive parts but also automotive chips,” he added.

Meanwhile, Liew said the other aspiration is to reduce the overall national consumption of petroleum through the electrification of mobility.

“If you ask around, most people would think that this country is a net exporter of petroleum, which is not true. We are the net importer of petroleum and the 21st largest net importer of petroleum.

“I encourage you to think boldly and offer new ideas to help us explore different approaches, so that electrification becomes not just a business opportunity for manufacturers, but a national agenda aimed at reducing overall petrol consumption,” he said.

The Malaysian government has set a target for EVs to make up 20% of the total industry volume (TIV) by 2030, 50% by 2040, and 80% by 2050.

“While it looks ambitious especially given that we are starting from a low base, the International Energy Agency’s annual Global EV Outlook highlights some key trends — EVs made up just 2% of the TIV globally in 2018.

“By 2022, this had risen to 14% of TIV globally, and by 2023, it reached 18%. Therefore, achieving 20% of TIV by 2030 is not a far-fetched target, but it will require a lot of concerted effort. It will require us to be bold and think outside the box,” he said.

Source: Bernama

Malaysia poised to become Asean’s regional hub for EV manufacturing, says Liew Chin Tong

Pentamaster Corp Bhd’s prospects for the year ahead are expected to be underpinned by high-growth segments of the semiconductor industry, such as artificial intelligence (AI) and medical manufacturing.

This comes amid the automation systems and services provider taking a guarded outlook for the first half of 2025 (1H25) due to the sluggish automotive sector.

According to RHB Research, Pentamaster revealed that there was continued weakness in the automotive segment, with the group’s order book growing only 5% quarter-on-quarter to Rm420mil.

“Management, in its briefing, said it now projects that the sector will contribute 25% to 28% to overall 2024 revenue, with expected softness persisting into 1H25,” the brokerage said.

“Against this backdrop, Pentamaster is shifting its focus towards high-growth segments (such as advanced packaging within semiconductor manufacturing), viewing 2H24 as a transitional period,” it wrote in its report yesterday.

RHB Research maintained its “buy” call on Pentamaster, with a lower target price of RM5.10, compared with RM5.95 previously.

This came after the brokerage cut its earnings forecasts for Pentamaster by 8% for 2024, 14% for 2025, and 12% for 2026 on lower anticipated automotive sector contribution.

“Management noted a more cautious 1H25 outlook, largely due to a slower-than-anticipated performance in the automotive sector.

“Nonetheless, we remain optimistic on Pentamaster’s prospects, as it stands to benefit from the expansion of power semiconductor devices driven by AI advancements, and from medical manufacturing automation due to stringent industry standards,” it explained.

RHB Research pointed out that medical devices would remain primary revenue driver for Pentamaster at 45% to 48% of 2024 revenue.

“The group is working to expand its customer base in anticipation of a slowdown from its main client. New customers currently represent a relatively modest 10%15% portion of the medical devices topline,” it said.

“In 2025, Pentamaster expects the segment to contribute 40% to 45% of revenue, with its key customer as the largest contributor.

“It is also seeing momentum from new customers and expects expansion plans from these clients,” it added.

Meanwhile, RHB Research noted that the semiconductor space showed signs of recovery with revenue growth in the third quarter of 2024, and is expected to represent around 10% of total 2024 revenue.

Similarly, the electro-optical industry is projected to sustain its growth momentum, contributing 10% to 12% to total revenue, it said.

Source: The Star

Pentamaster to shift focus to high-growth segments

Manufacturers must adopt sustainable practices to meet environmental regulations 

SINCE 2010, the number of Malaysian companies focusing on factory automation has doubled, with the top 10 firms now boasting a combined valuation exceeding RM25.8 billion, according to Malaysian Investment Development Authority. 

Automation has proven to be a game-changer, reshaping how industries approach operation scalability, production optimisation, engineering efficiency and sustainability. It is especially important for Malaysia’s manufacturing sector, which is projected to grow by 4.5% next year, according to the recent Economic Outlook 2025 report from the Ministry of Finance. 

With the rise of IR4.0 or Smart Factory technologies, manufacturers around the world are also increasingly adopting Internet of Things, artificial intelligence and robotics to create more interconnected and intelligent systems that optimise resource management and enhance decision-making processes. To support local manufacturer’s growth, the Malaysian government has set a target to convert 3,000 factories into smart factories by 2030 under the New Industrial Master Plan 2030. 

However, the manufacturing sector faces unique hurdles in embracing digital transformation. 

According to industry experts, one of the challenge lies with IT. Many legacy systems may include outdated or unnecessary software licenses that are no longer relevant in today’s digital landscape. The drive towards sustainability adds another layer of complexity. 

With environmental concerns at the forefront and regulations in place, manufacturers are compelled to weave sustainable practices into the very fabric of their operations. This shift is not merely about compliance; it’s about securing a competitive edge and ensuring viability in a market that increasingly values environmentally conscious practices. 

Enter universal automation — a transformative approach that revolutionises the integration of digital technologies in manufacturing. This strategy employs a modular, plug-and-produce software ecosystem, reminiscent of an app store for industrial applications, which significantly simplifies the adoption of the best available solutions. This not only enhances operational flexibility but also reduces overhead costs, positioning universal automation as a key enabler in the digital transformation of manufacturing. 

Overcoming Digital Transformation Challenges 

Universal automation simplifies the integration of new technologies into existing systems, offering a seamless approach that allows manufacturers to enhance their operational frameworks without the need for a full-scale overhaul. This streamlined integration preserves existing investments while accelerating the adoption of innovative practices. 

A key component of this strategy is the decoupling of automation software from hardware, as exemplified by the adoption of the IEC 61499 standard. This standard introduces an open, event-driven architecture for distributed control systems, enabling seamless integration across diverse equipment from various vendors. 

Platforms like Schneider Electric’s EcoStruxureTM Automation Expert, which are built on this standard, represent the first brand-agnostic software solutions. They facilitate digitalisation while minimising costs and operational disruptions. Developed Schneider Electric and supported by UniversalAutomation.org, an independent, non-for-profit association, the shared runtime execution engine based on the IEC 61499 standard. 

By embracing this software-defined approach, the industrial sector can overcome the limitations of traditional, closed automation systems. This shift fosters greater adaptability, allowing companies to innovate and evolve more rapidly in an increasingly interconnected and dynamic global environment. 

The scalability and flexibility inherent in universal automation solutions are also vital for manufacturers aiming to grow and adapt over time. These solutions can be tailored to expand and evolve in tandem with a company’s changing needs, offering a durable advantage in a rapidly advancing technological environment. 

Universal automation also directly addresses the prevalent skills gap in the industry. By introducing user-friendly interfaces and streamlined processes, these systems reduce the reliance on highly specialised training, allowing existing employees to upskill and adapt to new technologies more effectively. 

Driving Sustainability Through Universal Automation

Driving sustainability through universal automation is one of its standout benefits, particularly its potential to significantly enhance energy efficiency. By optimising the operational dynamics of machines and systems, universal automation ensures that energy consumption is minimised, reducing the environmental footprint associated with manufacturing processes. 

Beyond energy management, universal automation excels in resource management. It enables precise control and monitoring of material use, promoting the efficient utilisation of resources and minimising waste production. This precision not only helps conserve valuable materials but also leads to cost savings, creating a dual advantage for manufacturers committed to sustainable practices. 

Moreover, the integration of universal automation generates a vast pool of data from daily operations. This wealth of information provides deep insights into every aspect of the manufacturing process, enabling manufacturers to make more informed decisions. By analysing this data, manufacturers can refine their energy usage, optimise material consumption and improve waste management practices. 

As Malaysia continues its digital transformation journey, the integration of universal automation into manufacturing practices is becoming increasingly crucial. This technological integration, coupled with a robust emphasis on sustainability, is setting the stage for businesses to not only meet but exceed industry standards. 

Universal automation is not about replacing the human workforce but enhancing it, fostering environment where technology and human ingenuity coexist to propel the manufacturing sector towards a more efficient, sustainable and innovative future. 

Schneider Electric champions this vision with a comprehensive suite of industrial automation solutions, including advanced Programmable Logic Controllers, Variable Speed Drives, Signals and Relays, and cutting-edge software from AVEVA. These tools are designed to enhance operational efficiency and adaptability, empowering industries to excel in the evolving business landscape. 

• Ng Wei Jie is Schneider Electric Malaysia business VP of industrial and process automation.

Source: The Malaysian Reserve

Universal automation to power Malaysia’s digital manufacturing future

In alignment with Malaysia’s National Semiconductor Strategy, Micron Technology Inc is enhancing its role as a leading provider of semiconductor assembly and testing, contributing to both the local economy and the development of high-tech skills in the country.

In an exclusive interview with Bernama, Micron senior director of global human resources operations Moorthy Murugaiah said the US chip maker’s ongoing investment in Malaysia goes beyond its manufacturing capabilities and the company is committed to playing a pivotal role in nurturing local talent, particularly in advanced packaging and high-tech semiconductor back-end processes.

“As part of its strategy, Micron is focused on increasing the skill levels of Malaysian workers, offering opportunities for upskilling in complex, high-precision semiconductor operations; and since we started operations in Penang, our contribution has been clear not just in terms of products, but in fostering a skilled workforce capable of managing advanced semiconductor technologies.

“As talent mobility increases globally, it’s important for Micron to attract, retain, and develop local talent, which in turn strengthens Malaysia’s position in the global semiconductor supply chain,” he said.

He said Micron’s continued presence and investment in talent development are expected to have a lasting impact on the local ecosystem, providing a skilled workforce that will help drive Malaysia’s growth as a global semiconductor hub.

In addition to its operations in Penang, Moorthy noted, Micron’s broader strategy involves contributing to the advancement of Malaysia’s semiconductor sector by increasing the complexity of the products being manufactured and this shift will not only create high-value jobs but also foster innovation, positioning the country as a leader in the high-tech manufacturing sector.

Therefore, he said, the company’s investment in talent development is key to its strategy and Micron is particularly focused on attracting fresh talent from universities, with nearly 80% to 85% of its new hires being recent graduates.

“To ensure these new employees thrive, Micron invests heavily in structured development programmes, preparing them to take on key roles in the company’s operations. For existing employees, Micron has developed a range of upskilling programmes, in partnership with local and government agencies, to help them stay competitive in the rapidly evolving semiconductor industry,” he said.

Moorthy pointed out that this focus on talent development and continuous learning is set to make Micron’s Penang operations a cornerstone of the company’s global network, as it looks to foster a skilled workforce capable of driving the next generation of semiconductor advancements in Malaysia.

Meanwhile, he said, in a concerted effort to address the growing demand for technical talent in the region, Micron has teamed up with Penang Science Cluster to boost science, technology, engineering, and mathematics (STEM) education from the ground up.

He said this collaboration, which began in 2019, aims to ignite interest in STEM fields among students and build a robust pipeline of skilled workers to meet the needs of both new and expanding businesses in Penang.

Source: Bernama

Micron nurtures talent in Malaysia’s semiconductor ecosystem

Electric vehicles (EVs) should be seen as a crucial step in Malaysia’s green transition and a means to reduce national petrol consumption, according to Investment, Trade and Industry Deputy Minister Liew Chin Tong.

Liew emphasised that Malaysia’s focus should extend beyond the current level of petrol usage, highlighting the broader goal of electrifying the automotive sector to cut overall petrol consumption and position Malaysia as a net exporter of petroleum once again.

“There is a great urgency to populate Malaysian roads with EVs to deal with the various challenges we face, namely reducing the fiscal burden of petrol subsidies, re-establishing Malaysia as a net exporter of petroleum and building a more climate-friendly nation.

“For Malaysia to achieve energy security, we will have to restore Malaysia as a net exporter of petroleum. In 2022, Malaysia imported US$12.2 billion of crude petroleum,” he said during the launch of Chery Malaysia’s OMODA E5, its first locally assembled vehicle here, today.

Liew said that in 2022 and 2023, the nation’s total amount of fuel subsidy (RON95, diesel and liquefied natural gas) stood at about RM50 billion, about one-eighth of the national budget.

He added that as of Sept 30 this year, there are 32,543 registered Battery Electric Vehicles (BEVs) on Malaysian roads, 98 per cent of which were imported as Completely Built-Up (CBU) units.

However, EV adoption in Malaysia lags behind neighbouring countries with BEVs representing just 1.2 per cent of total vehicle sales in 2023, while EVs count for 12 per cent of vehicles in Thailand, Vietnam (15 per cent), and Singapore (18 per cent).

“In 2023, Malaysia sold 799,731 cars, of which only 1.2 per cent were BEVs (10,159 units). Indonesia’s share of EV sales in 2023 was also at 1.2 per cent.

“At 1.2 per cent in 2023, and 2.6 per cent of total industry volume (TIV) in the first half of 2024, Malaysia is still quite far from the 20 per cent target for 2030.

“If we get our act together, Malaysia can also see the exponential growth of EVs on our roads in the next five years, reaching the target of EVs forming 20 per cent of TIV in 2030,” he said.

Meanwhile, Chery Auto Malaysia president Leo Chen noted that the launch of OMODA E5 Completely Knocked Down (CKD) units demonstrates Chery’s commitment to improving local manufacturing capabilities, promoting Malaysia’s industrial growth, and contributing to the country’s transition to a sustainable, electrified automotive future.

“By assembling our cars locally, it not only allows us to provide more competitive pricing but also signifies Chery’s long-term commitment in Malaysia, fostering job creation and skill development within the local workforce,” he said.

Chen added that the move also is in line with the government’s policy of localisation compliance and supports Malaysia’s ambition to become a regional hub for EVs. 

Source: Bernama

EVs the way forward to green transition, reduces petrol dependence

The Penang government is dedicated to establishing a foundation rooted in technological
excellence and industrial expertise, positioning itself as a leader in hightech manufacturing and a key player in the global supply chain.

Penang Deputy Chief Minister II Jagdeep Singh Deo said the state’s focus is on creating an ecosystem that supports the entire innovation journey – from university research through to commercialisation and market entry.

“Recognised as Malaysia’s Silicon Valley, Penang’s strength provides a powerful platform for advancing
technology and developing human capital,” he said.

The State Human Capital Development, Science, and Technology Committee chairman emphasised that initiatives like Universiti Sains Malaysia (USM)’s INNOZILLA 2024 align with Penang’s broader vision by nurturing future talents and spurring innovation across various sectors.

“By integrating INNOZILLA into this vision, we reinforce our commitment to supporting industries, empowering youth, and sustaining Penang’s competitive edge,” he said during the launch of USM INNOZILLA 2024 at Dewan Utama Pelajar, USM, yesterday.

Jagdeep said Penang is well positioned to attract cutting-edge technology and high-value investments, particularly as a hub for semiconductor and electronics industries, adding that Penang’s strengths make it an ideal location for transforming innovative ideas into practical applications that can serve global markets.

USM INNOZILLA 2024, which runs until today, is a dynamic innovation exhibition and competition aimed at advancing the United Nations Sustainable Development Goals.

The event features 188 projects (143 physical and 45 virtual) from schools, colleges, universities, and startups across Penang and several other Malaysian states, as well as participants from Indonesia and
Singapore.

The event has also attracted over 30 industry players and government agencies, showcasing their support in helping academia and innovators transform their inventions into market-ready products.

Source: Bernama

Penang remains focused on maintaining tech, industrial excellence

PLANS are afoot by SIRIM National Precision Tooling (NPT) for the establishment of a Centre of Excellence (COE) to cater for bumiputra-owned industries that utilise tools, dies and moulds (TDM).

With this centre, these companies in the TDM segment can have ready access to a Smart Factory that employs Industry 4.0 technologies.

It would serve as a hub of innovation, offering a scalable and adaptable environment where small and medium enterprises (SMEs), industry leaders and even academic institutions could collaborate seamlessly under one roof.

Recent developments with more modern manufacturing machines such as 3D printers would allow companies to combine such resources and utilise smart manufacturing technologies like the Internet of Things, artificial intelligence (AI) and machine learning to improve their manufacturing processes.

It would also be possible for them to monitor production in real-time, predict maintenance needs and optimise resource use with the use of these latest factory technologies.

These plans follow the success of the TDM 2.0 Project which saw selected beneficiary bumiputra-owned companies undergo capability developments under SIRIM NPT’s Coaching and Certification Building Program, Equipment Acquisition Program and Design Capability Development Program.

“Initially we started with the automotive sector, but now we are expanding it to cover three other industries – aerospace, medical devices and rail.

“So far, NPT has helped more than 40 companies – mainly SMEs from these four sectors – by providing access to modern equipments or machine tools such as the Computer Numerical Control (CNC) machine, which is crucial in the TDM sector,” NPT’s chief executive officer Ts. Mohd Fauzi says.

The planned COE is to be equipped with modern facilities which can communicate over the Internet cloud for product development.

“This serves as a heart for innovation, where the industry can collaborate seamlessly through a digital platform – the design can be done elsewhere and be manufactured here, for example.

“It will also be a centre for learning, especially for younger talents, to acquire knowledge and new technologies in the various industries,” Ts. Mohd Fauzi says.

SIRIM NPT also highlights its aim to develop 1,000 high-skilled talents in the TDM sector within five years.

“Let’s say there are 100 companies and each one develops two talents per year – in five years this will be 10. So from 100 companies, this will amount to 1,000 talents. The plan is for NPT to subsidise half of their salaries during the one-year period,” Ts. Mohd Fauzi says.

He notes that companies which hire talents from Technical and Vocational Education and Training (TVET) centres may find this useful.

“With this type of training, these are considered high-value added kind of jobs. This would also help to attract younger talents to the industry to ensure its sustainability moving forward,” he adds.

Ts. Mohd Fauzi hopes these initiatives can start in the year 2026.

“This is planned under the 13th Malaysia Plan. We have grown from 15 companies when we started this under TDM 1.0.

“And these latest plans will see NPT aim for 100 companies,” he adds.

Source: The Star

Enhancing skills in manufacturing

The government plans to leverage Sabah’s local strengths and capabilities to attract investors in the high-tech manufacturing industry, with a focus on downstream activities.

Deputy minister of Investment, Trade and Industry Liew Chin Tong said that this aligns with Mission 4 of the New Industrial Master Plan (NIMP) 2030, which emphasises harmonising development plans between the federal and state governments.

Liew highlighted several potential downstream industrial activities in the Palm Oil Industrial Cluster (POIC) in Lahad Datu, covering sectors such as palm oil, biomass, and petrochemicals.

“POIC Lahad Datu has the potential to become a hub for palm oil-based products like oleochemicals, nutraceuticals, plastics, biofuels, and cosmetics. It also has potential for biomass-based products like biochemicals, biofuels, bioplastics, electricity, fuels, paper, pulp, and fibre,” he said during the question-and-answer session in Dewan Rakyat today.

Liew also noted that POIC Lahad Datu’s integrated port facilities including liquid, dry, and container terminals, support the handling of various types of cargo in the petrochemical industry cargo, such
as oil refineries, bulk storage, and product distribution.

He was responding to Riduan Rubin (Independent-Tenom), who inquired about the Ministry of Investment, Trade and Industry strategic framework to attract investors to Sabah’s high-tech
manufacturing sector.

The deputy minister pointed out that the initiative could create job opportunities for Sabah’s Technical and Vocational Education and Training (TVET) graduates, helping to strengthen local economic development.

Liew also said POIC Lahad Datu has the potential to become a logistics and transhipment hub, with facilities including a free trade zone, bonded warehouses, cold storage, food processing, oil and
gas storage, bunkering and bulking, and a supply base.

In the halal industry, POIC Lahad Datu has been recognised as the first industrial park with HALMAS status in Sabah, making it attractive to halal-based industries such as food, pharmaceuticals, and cosmetics.

“Its location near the container port also facilitates import and export activities,” he said.

According to Liew NIMP 2030 also emphasises skill development and job creation, targeting 3.3 million jobs in the sector, with three million aimed at high-skilled and semi-skilled jobs.

To support TVET graduates in Sabah, the government is taking steps to develop talent in the solar industry, with companies like SBH Kibing Solar New Materials (M) Sdn Bhd involved, he said.

“The Kota Kinabalu Industrial Training Institute (ILP) has conducted internal interviews to match skilled labour with job opportunities in the related industrial sectors.

“ILP Kota Kinabalu has also been designated as a talent development centre in solar technology, while ILP Sandakan focuses on talent for the electric vehicle and hydrogen industries,” he added.

Source: Bernama

Government to leverage Sabah’s strengths, capabilities to attract high-tech manufacturing investors – – MITI

Prime Minister Datuk Seri Anwar Ibrahim has extended an invitation to Jiangsu Longda Superalloy Co Ltd to expand its business into Malaysia.

Based in China’s Wuxi, Jiangsu Province, the company is a leading manufacturer specialising in superalloys, which are essential for high-demand industries such as aerospace, gas turbines, and petrochemicals.

Anwar had extended the invitation following his meeting with the company’s founder, Pu Yi Long.

Also present was Investment, Trade, and Industry Minister Tengku Zafrul Abdul Aziz.

“I am impressed by the company’s work in producing high-temperature alloys for major aerospace players,” Anwar said after the 30-minute meeting.

The Prime Minister said Jiangsu Longda’s presence in Malaysia will strengthen the nation’s position as a key player in the global aerospace industry, boosting Malaysia’s local supply chain and creating high-skilled jobs.

Anwar is currently on a working visit to China from Nov 4 to 7 at the invitation of his Chinese counterpart Li Qiang to attend the 7th China International Import Expo (7th CIIE).

Aside from Tengku Zafrul, members of his delegation include Foreign Minister Datuk Seri Mohamad Hasan and Human Resources Minister Steven Sim Chee Keong.

Source: Bernama

Anwar invites Jiangsu Longda to expand business into Malaysia