The impending rise in U.S. tariffs on China-made gloves presents an opportunity for Malaysian manufacturers to ramp up production. 

However, Tradeview Capital fund manager Neoh Jia Man anticipates that the glove sector’s overall performance will likely remain subdued in the coming months, with variations among individual companies.

He said with the planned United States (US) import tariff hike on Chinese gloves taking effect in January 2025, Chinese manufacturers are likely to ramp up their marketing efforts in non-U.S. markets such as the European Union. 

“This shift creates potential opportunities for local players that can expand their exports to the US, positioning them to benefit from increased demand in this key market. 

“On the other hand, players who are unable to take advantage of higher U.S. demand might see a net negative impact from downward pressure on glove prices in non-US markets,” he told Business Times. 

Neoh said volume increases may vary across local players, depending on differences in production capacity and pricing power. 

“However, with no Malaysian firms currently facing export restrictions to the US, most players are likely to experience a boost in US-bound shipments, though this may come at the expense of reduced sales in other regions,” he added.

Hartalega Holdings Bhd expects its sales volume of generic medical nitrile rubber gloves to rise from 1.9-2.0 billion pieces per month in the second quarter of 2024 (Q2 2024) to 2.1-2.2 billion pieces per month in Q3 2024. 

This volume is anticipated to increase further in Q4 2024, reaching 2.3-2.4 billion pieces per month, primarily due to trade diversion from U.S. customers spurred by tariff changes.

Hong Leong Investment Bank Bhd (HLIB Research) said that Hartalega has an edge over other local manufacturers due to its stable business relationship with the U.S. 

The bank also noted that Hartalega has not been subjected to Withhold Release Orders (WRO) by U.S. Customs and Border Protection (CBP).

“Historically, Hartalega’s revenue exposure to the US was 40-50 per cent, but it expects this to increase to 60-70 per cent from January 25 onwards. 

“We view the increasing US exposure positively given the more favourable pricing vs non-US customers,” it said in a note. 

The research firm observed that Hartalega has seen a resurgence in the “US premium” for October and November orders, with a slight premium of under US$ 1 per 1,000 pieces over European orders. 

Hartalega expects this premium to become more pronounced in December ahead of a US tariff increase on Chinese imports, rising from 7.5 per cent to 50 per cent in January 2025, which is likely to reduce the cost-effectiveness for Chinese producers.

“Consequently, Hartalega is quoting its December orders at US$22 to US$23 per 1000 pieces (versus US$24-26 per 1000 pieces in the pre-pandemic era) for its US customers, subject to acceptance. 

“This price point implies a premium of US$3 to US$4 per 1000 pieces compared to its ex-USA customers in order to fully pass on the recent forex impact faced and potentially expand its margins.

For non-US markets, Hartalega has maintained competitive pricing at US$18 to US$19 per 1,000 pieces since May 2024, as Chinese manufacturers continue to offer lower prices at US$ 16 to US$17 per 1,000 pieces.

Before the pandemic, Hartalega was able to charge U.S. customers a premium due to stricter acceptable quality levels (AQL). 

However, this premium plummeted in January 2023 due to intensified regional competition from Malaysia, Thailand, and China.

HLIB Research maintained its earnings forecasts for Hartalega for financial year 2025 (FY25)-FY27 as it believes the expected upcoming weaker Q2FY25 financial performance will be offset by a stronger Q4FY25. 

It also maintained “Buy” on the stock with an unchanged target price of RM3.62.

Source: NST

‘Good opportunity to ramp up production’

The government has initiated an administrative review of anti-dumping duties with regard to imports of cold rolled stainless steel in coils, sheets or any other form from China, Indonesia, South Korea, Taiwan, Thailand and Vietnam, said the Ministry of Investment, Trade and Industry (Miti).

The ministry said in a statement that the initiation of the administrative review is based on information received by the government and pursuant to Paragraph 28(1)(c) and (f) of the Countervailing and Anti-Dumping Duties Act 1993 (Act 504), and Regulation 34 of the Countervailing and Anti-Dumping Duties Regulations 1994.

“Interested parties who wish to participate in this administrative review may provide their views in writing and additional supporting evidence to Miti by Nov 15, 2024.

“In the event the interested parties do not provide the necessary information, or the information and views are not received in an adequate form within the specified time limit, the government may make its determination based on the available facts,” it said.

Source: Bernama

MITI initiates administrative review of anti-dumping duty for stainless steel imports

KULIM Hi-Tech Park (KHTP) will double its total area to 12,000 acres, from 5,557 acres currently, with the development of a new industrial park — KHTP 2.

Currently, all 2,161 acres of the industrial land in KHTP, comprising Industrial Zone Phase 1, 2, 3 and 4 are fully leased. Land clearing and infrastructure development of the next phase — Industrial Zone Phase 4A, measuring 247 acres with 10 industrial lots — are being carried out.

“The deals [for the Industrial Zone 4A lots] are expected to close by 2025, and taking into account the period for construction by the investors, the manufacturing operations may commence as early as year 2026,” says Kulim Technology Park Corp Sdn Bhd (KTPC) group CEO Datuk Mohd Sahil Zabidi.

KTPC is the developer and manager of KHTP and is wholly-owned by the Kedah State Development Corporation.

The 2,161 acres exclude non-industrial components allocated for recreational, residential, research  and development training, and public institutions.

In March this year, The Edge reported that Boustead Plantations Bhd, a wholly-owned subsidiary of Lembaga Tabung Angkatan Tentera-controlled Boustead Holdings Bhd, is in talks to sell 1,200 acres of plantation land in Kulim to KTPC at RM7.50 to RM7.80 per sq ft, bringing the total price to about RM400 million for the 1,200 acres.

On the progress of the land acquisition, Mohd Sahil says negotiations are ongoing, while the business model and development concept for the new area being worked on. “We are bound by confidentiality on the arrangement. However, we are currently exploring a few other locations for our expansion and are not limited to the KHTP-adjacent area.”

In 2016, it was reported that the Kedah government had identified 2,800ha for KHTP 2, which would complement KHTP that was reaching its maximum capacity.

KHTP’s appetite for land now stands out in contrast to when it was established in 1996, with Intel Corp as its first tenant. Approved investments going into KHTP never surpassed RM5 billion annually until 2021 with multi-year investments by China’s Risen Solar Energy Co Ltd (totalling RM42.2 billion) and AT&S Austria Technologie & Systemtechnik AG (RM10.8 billion).

“We used to get maybe two to three investors each year. But in the last five years, we have had at least seven or eight each year,” says Mohd Sahil.

Following the extraordinary investment activity, to the tune of RM65.5 billion in 2021, KHTP’s approved investments for 2022 and 2023 amounted to RM10.8 billion and RM20.1 billion respectively. For 1H2024, it attracted approved investments of RM30.3 billion.

Like its more established neighbour Penang, KHTP has benefited from the diversion of trade due to geopolitics and the China+1 strategy.

However, Mohd Sahil adds that there is more to it than geopolitics and that there are also those who are in Kulim because of its proximity to their customers. “Some are here because they want to expand their products to Asian countries or they want to have another production facility outside China. We don’t have many companies that want to be here just because they want to relocate from China.

“But there are also those who … supply to other multinational companies (MNCs) that are already here in Malaysia or in Singapore. So for these companies, the secure business is already here.”

Mohd Sahil shares that the first Chinese investor in KHTP was the Jinjang Group back in 2018 through G-Crystal — a glass panel manufacturing company that counts US-based First Solar Inc as its customer.

While KHTP is getting its share of attention from global investors today, Mohd Sahil says the industrial park — the brainchild of the former prime minister Tun Dr Mahathir Mohamad as a means to develop Kedah — cannot yet match Penang’s status as the Silicon Valley of the East.

“It is fair to say that Penang is a preferred destination compared with KHTP as the former shares certain characteristics with the development of Silicon Valley. This may be due to the historical fact that Penang’s first industrial master plan was established in 1970, whereas KHTP only launched its plan in 1990.

“Penang’s manufacturing hub was established much earlier, followed by its continuous development over time, making Penang recognised as the Silicon Valley of Southeast Asia. The proximity between Penang and KHTP creates a good ecosystem where the strength of each area contributes to the overall growth and success of the industry on a national scale,” he says, adding that KHTP does not see Penang as a competitor.

KTPC is also thinking beyond the expansion of the industrial zones with plans to strengthen the surrounding ecosystem to further facilitate the growth of KHTP. Within the park, it has centralised labour quarters for the local workers at KHTP and is collaborating with housing developers for residential development. It is also working on bringing in a well-known hotel brand to accommodate the needs of the investor flow to the park.

KTPC’s role as manager

KTPC’s role as a manager and developer of the industrial park covers a wide range of activities. It not only develops the industrial land and infrastructure, and promotes the 12 selected industries for the park, it also manages investment properties within KHTP and provides advisory services for investors looking to set up a plant there and assists with project management.

Mohd Sahil describes KTPC as a “one-stop centre” for investors, especially those new to investing in Malaysia. The industrial park manager takes pains to ensure investors’ experience in setting up their plants in KHTP is a smooth one.

“We assist the investor with the incorporation of the company, getting the necessary licences, state [government’s] consent and even opening a bank account. We take around six months to get all these done, when in other states it could take up to 12 months.

“We don’t want investors to just make announcements of the investments that they are doing, we want them to get started as soon as possible to create jobs. So, the sooner they plan and start operations, the better for us,” he says.

As manager of the park, KTPC also takes on the responsibility of seeking new investors for projects that hit speed bumps and cease operations before their 60-year land lease is up.

For example, Aspen Group’s glove manufacturing plant — a joint venture with CMY Capital Sdn Bhd, an investment holding company founded by businessman Tan Sri Chua Ma Yu — that was set up in 2020. It ceased operations within two years due to falling average selling prices of rubber gloves, stiff competition and high inventories.

“We found an investor from Germany (Schott Glass AG) to take over from them [Aspen]. Schott Glass had been in Perai, Penang, for over 50 years and they wanted to expand. We managed to convince them to take over [the leased land],” shares Mohd Sahil.

As for the recent case of ams Osram AG’s new micro LED plant, where the Austrian-German company put the brakes on plans to operate a mirco LED plant at KHTP due to the cancellation of the plant’s micro LEDs by a key customer, Mohd Sahil says KTPC “is working towards assisting them”.

It has been reported that the company is seeking an investor to take over the lease of the micro LED plant. The plant, part of Osram’s US$1 billion multi-year investment, currently lies idle.

It is worth noting that Permodalan Nasional Bhd, the Employees Provident Fund and Kumpulan Wang Persaraan came into the picture when they signed a 10-year sale and leaseback agreement worth RM2.03 billion with Osram.

“We don’t want land to be left idle. If any of our investors have problems, what we will do is to convince them to allow us to get other investors to come in or give back the land to us,” says Mohd Sahil on KTPC’s business philosophy.

While KTPC has ambitious plans for KHTP, funding the planned expansion is a major challenge, hinging on KTPC’s ability to secure adequate funds from the federal government.

“As KHTP seeks to enhance its infrastructure and attract high-tech industries, insufficient financial support can limit its growth and competitiveness in the market,” says Mohd Sahil.

“The rapid development of KHTP also necessitates improvements in public utilities, such as healthcare and education. Speedy allocations and implementation [are needed] to ensure it is in line with rapid development of KHTP to ensure that essential amenities keep pace with industrial growth,” he adds.

The good news for KTPC is that under Budget 2025, Prime Minister Datuk Seri Anwar Ibrahim has proposed the allocation of funds for the expansion of Kulim Hi-Tech Park. The federal government is also proposing to allocate funds for the construction of an auxiliary building at the Kulim Hospital.

The amounts involved have yet to be disclosed. 

Source: The Edge Malaysia

Kulim Hi-Tech Park eyes expansion, doubling its area to 12,000 acres

The Investment, Trade, and Industry Ministry (Miti) will help Malaysian solar manufacturers and related companies affected by the United States (US) tariff hike on solar exports to get more information on the move by Washington.

Its minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the higher tariff has affected many production lines of these solar companies not only in Malaysia but also manufacturers in Thailand, Cambodia, and Vietnam.

“So we are now helping the companies by getting more information and then engaging the United States Department of Commerce to see how we can support these companies,” he told the press after a briefing on Malaysia’s chairmanship of Asean (Economic Pillar) at the ministry today.

Previously, it was reported that the US Department of Commerce increased duties on solar equipment exported by Cambodia, Malaysia, Thailand, and Vietnam, following its initial findings of unfair government subsidies used to produce solar equipment sold by companies in these four countries.

Washington plans to increase US import tariffs on Chinese solar cells and panels from 25 per cent to 50 per cent among a host of other products, over claims alleging unfair Chinese business practices.

Source: Bernama

Miti to continue engaging with US authorities on solar export tariff hikes

Chenbro Micom Co Ltd has chosen Malaysia as its first investment in Southeast Asia.

The company, via wholly-owned Chenbro Malaysia Sdn Bhd, today signed an agreement with Senai Airport City Sdn Bhd to buy 6.09 hectares of industrial land at Senai Airport City Free Industrial Zone. 

Chenbro manufactures integrated solutions for rackmount and tower servers and personal computer chassis.

“The establishment of Chenbro is in tandem with its strategy to further enhance this current industry cluster in Senai Airport City,” Senai Airport chairman Tan Sri Che Khalib Mohamad Noh said in a statement. 

Chenbro chairman Maggi Chen said it will actively continue to create global localised production with lean technological capabilities and low-carbon green facilities for the rising demand of the Artificial Intelligence (AI) industry.

“I am grateful to the government’s support and Senai Airport City’s professionalism with its well-planned industrial park, ready infrastructure and our partners and stakeholders,” she said.

To date, Senai Airport City has developed Phase 1 and 2, totalling 607,03 hectares of industrial development.

It is ready to launch its Phase 3 of  141 hectares, providing ready infrastructure for more quality investments in 2025 with final stage negotiations with numerous high-value foreign direct investment.

Source: The Star

Chenbro picks Senai Airport industrial zone as maiden investment in Southeast Asia

Suling Hill Development Sdn Bhd, a joint-venture between AME Elite Consortium Bhd and Majestic Gen Sdn Bhd, officially launched Northern TechValley @ BKE in Seberang Jaya, Penang on Monday. 

Spanning 176 acres, the RM1.3 billion industrial park will be equipped with high-speed fibre-optic internet, recreational areas such as sports hall and a managed workers’ accommodation, according to a press statement on Monday.

The development will also be designed with sustainable features such as the usage of reflective glass that minimises heat transmissions, translucent sheets for natural lighting and solar photovoltaic panels for energy efficiency.

In the press statement, Suling Hill Development director Dylan Tan Teck Eng said: “Northern TechValley @ BKE reflects Penang’s vision to lead in the global technology sector. By leveraging the strengths of AME Elite and Majestic Gen, we are establishing a vibrant industrial park that supports the growth of advanced manufacturing and high-tech industries. As AME Elite’s first industrial park outside Johor, Northern TechValley marks a significant milestone in its expansion strategy. We believe this project will drive innovation and contribute to Penang’s reputation as a global hub for advanced industries.”

Tan added that the Suling Hill Development aims to attract leading companies from various sectors of semiconductors, electronics, medical technology and logistics into Northern TechValley @ BKE.

Meanwhile, Suling Hill Development director Ta Wee Dher said: “This project presents a unique opportunity to enhance Penang’s industrial landscape by integrating Majestic Gen’s commercial development expertise with AME Elite’s strengths in industrial space solutions. By creating a conducive environment that meets the needs of global and domestic companies, we aim to generate job opportunities and strengthen the local supply chain. This initiative is essential for enhancing Penang’s investment appeal and positioning the state as a prime destination for high-quality investments and innovation in the region.”

Northern TechValley @ BKE is expected to be completed in 2029.

Source: The Edge Malaysia

Suling Hill Development launches RM1.3 bil Northern TechValley @ BKE industrial park in Penang

Petronas Chemicals Group Bhd has won the silver award in the industrial products and services category at The Edge Malaysia ESG Awards 2024.

One of the company’s most significant achievements over the past year is the progress made on the advanced chemical recycling plant in Pengerang, Johor. The plant, when operational, will transform end-of-life plastics into pyrolysis oil, which can be used as chemical feedstock for producing sustainable plastics, reducing the dependency on virgin materials.

“Guided by our New Plastics Economy framework, the construction of the advanced chemical recycling plant is part of our conscious effort to drive the transition from a linear to circular waste plastic management process,” says Mazuin Ismail, managing director and CEO of PetChem.

“We are also driving innovation across the plastics value chain in Malaysia, while creating opportunities for all parties through collaborations with different players, from waste collectors to manufacturers, to jointly contribute to the circular plastics economy.”

Despite its successes, PetChem has faced significant challenges in maintaining its ESG performance in the past year, particularly in the area of greenhouse gas (GHG) emissions.

“The reduction of GHG emissions is a key priority for PetChem and its progress is guided by our Net Zero Carbon Emissions 2050 Pathway. Last year, our plant operations encountered reliability challenges that led to a rise in GHG emissions from flaring, which we have addressed through enhanced operational control processes and by implementing programmes to improve plant reliability,” says Mazuin.

Alongside these operational movements, PetChem continues to explore energy efficiency measures and low-carbon technologies within its assets. These efforts include a shift towards integrating more renewable energy into the mix, as well as improving energy efficiency across all operations.

“In 2023, we achieved an overall GHG emission reduction of more than 146,000 tonnes carbon dioxide equivalent through flare reduction, efficiency improvement measures and purchase of renewable energy,” he says.

Source: The Edge Malaysia

PetChem drives innovations in plastics circularity

Amphenol DC Electronics Malaysia Sdn Bhd, a global provider of engineering, design, and manufacturing services, has opened its new 70,000 square feet (sq ft) facility in Penang, with the potential for an additional 60,000 sq ft in the second phase.

In a statement today, the Malaysian Investment Development Authority (MIDA) said this expansion significantly increases Amphenol’s footprint in the region to over 130,000 sq ft, demonstrating its commitment to growth and innovation in Malaysia while greatly enhancing its capacity and capabilities.

MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the company’s decision to establish a presence in the country underscores Malaysia’s strong reputation in the global electrical and electronics industry.

‘I extend my warmest congratulations to Amphenol on the launch of their new manufacturing facility in Malaysia.

‘We are committed to attracting high-tech, high-value investments that drive innovation and create skilled job opportunities for
Malaysians,’ he said.

Meanwhile, Amphenol plant director Chan Chee Wey said the new facility will enable the company to meet growing demand, accelerate innovation, and further contribute to Malaysia’s economy.

According to the statement, the new facility, which is equipped for cable assembly and box build, will serve as a major hub for manufacturing, creating 300 jobs and fostering local talent in Malaysia’s semiconductor industry.

This state-of-the-art facility underscores Amphenol’s commitment to innovation, sustainability, and regional growth, it added.

Source: The Star

Amphenol Opens New Facility In Penang

Competition in the automotive sector is expected to heat up as Malaysia aims to raise electric vehicle (EV) adoption to 15% of total industry volume (TIV) by 2030 compared with 5% as of September 2024.

According to Affin Hwang Investment Bank Research (Affin Hwang Research), advancements in battery technology and safety, advanced EV safety features and transition to a low-carbon economy have resulted in greater motivation to adopt EVS.

By 2025, it expects EV adoption to rise to 80% compared with the current adoption of 5% or 33,319 units of TIV as at September this year.

“Domestically, we expect heightened competition in the EV space, with lower prices in the coming years driven by an influx of new brands and aggressive competition from existing players,” the research house said in a report after hosting the Affin EV Day event recently. There are challenges ahead though. The research house said that to-date, general insurers have not been able to accurately establish the cost of the EV battery because the EV industry is being heavily subsidised.

The battery, which is the most critical component of an EV, is also one of the factors determining risk assessment and structuring of an EV policy.

The risk assessment is being made more complex as even minor damage to an EV battery pack may require a full replacement.

“As such, EV insurance premiums are inevitably priced 20% to 30% higher as the industry continues to gather individual driving insights and behaviour, as well as statistics on accidents,” research house said.

It added solid state batteries could be a game changer with positive environmental, social, and governance impact.

Most EVS today use lithium-ion batteries or similar technologies, which feature a liquid electrolyte.

Solid-state batteries, as their name implies, replaces this with a solid electrolyte.

“This shift is expected to bring several benefits, including higher power density, improved safety and lower overall costs for batteries, while significantly reducing environmental impact and thereby lowering carbon footprints.”

In the auto sector, Affin Hwang Research said is it more positive on MBM Resources Bhd due to the group’s diverse EV dealerships and being poised to benefit from its associate, Perusahaan Otomobil Kedua Sdn Bhd (Perodua) as a market leader.

“The spotlight on EVS is expected to grow, especially as traditional original equipment manufacturers face challenges from the upcoming subsidy rationalisation for RON95 petrol that may negatively impact internal combustion engine vehicles.

“Perodua’s introduction of its first EV priced under RM100,000 is poised to be a game changer, targeting first-time EV users in the B40 and M40 demographic segments,” said the research house.

It added that ongoing tax exemptions for both completely-built-up and completely-knocked-down EVS, along with the influx of competitive new EV brands in Malaysia, will drive demand.

In the insurance segment, it likes Allianz Malaysia Bhd for its extensive distribution network and high contractual service margin of Rm3.45bil.

Allianz is currently the market leader in Malaysia’s motor insurance market, with a share of 23%.

Source: The Star

EVs set to catalyse local automotive scene

Malaysia is working with China to establish a government-to-government (G2G) mechanism for capacity management and technology sharing within the steel industry.

Deputy Investment, Trade and Industry Minister Liew Chin Tong said the government is also advocating for discussions on the steel industry’s challenges and potential collaboration with China at the Asean level.

“For the iron and steel industry, this means addressing the imbalance between local long product capacity and imported flat product volume. With investments directed towards building up the local capacity in both manufacturing and utilisation of flat products, we hope to see an improvement in this imbalance and increase the economic sustainability of the industry.

“However, we need to be cautious of the emissions that follow – if all the approved steel capacity comes online, the emissions would be equivalent to having six coal-fired power plants, challenging our commitment to achieve net-zero emissions by 2050,“ he said in his speech at the 14th conference of the Malaysian Iron and Steel Industry Federation here today.

Liew said mechanisms need to be put in place to facilitate the iron and steel industry’s green transition.

“This brings us to the introduction of a carbon tax to the industry, which Prime Minister Datuk Seri Anwar Ibrahim announced in his Budget 2025 speech. Once implemented, among others, the carbon tax collected can be utilised to fund the green transition of the iron and steel industry.”

Touching on the global landscape, Liew said the construction steel consumption, especially in China, is on a downward trend. However, the production capacity built over the years remains, resulting in an excess production volume and the subsequent unloading, flooding, and even dumping of steel products in the global market.

The Southeast Asian steel industry is not spared from these challenges, Liew said.

“Not too long ago, the Malaysian discourse was all about worries concerning the European Union’s carbon border adjustment mechanism (CBAM). Very soon, once Malaysia implements our carbon tax, we will need a CBAM of our own to level the playing field and to ensure foreign steel pays Malaysian carbon tax,“ he added.

Touching on improving the governance structure of the iron and steel industry, Liew said various bodies, such as the Malaysian Steel Council and the Malaysian Steel Institute (MSI), must improve to ensure they meet more regularly and receive more robust input from the industry.

“Similarly, the MSI requires a total revamp of its roles to be a credible source of robust policy input,“ Liew said.

He said the government’s ambition is to ensure that the steel industry remains profitable and environmentally resilient.

“We are optimistic that the industry will thrive, driven not only by infrastructure projects but also by the wave of new investments – a second takeoff – with more advanced manufacturing, including aerospace. We believe this second takeoff will benefit everyone, including the iron and steel industry,“ Liew said.

Source: The Sun

Malaysia, China discussing G2G mechanism to support steel industry

The National Semiconductor Strategy (NSS) provides a more balanced approach that focuses on developing local champions to compete globally unlike earlier strategies that prioritised foreign direct investments (FDIs), according to RHB Research.

The firm said Malaysia is now the sixth largest semiconductor exporter globally and the Investment, Trade and Industry Ministry aims to rise to the third or fourth.

The NSS is designed to help achieve this through a three-phase approach such as building on the nation’s existing strong foundation, moving to the frontier and innovating at the frontier to ensure sustained growth.

“Supporting these ambitions are the various incentives introduced, including pioneer status, investment tax allowances, import duty exemptions, and reinvestment allowances,” RHB Research said in a report after hosting an event recently featuring representatives from the ministry, Dagang NeXchange Bhd (DNeX) and Institute of Strategic and International Studies (ISIS).

RHB Research said the ministry has an ambitious RM500 billion investment target with a moving target of five to 10 years.

The focus is not limited to integrated circuit (IC) design but also includes semiconductor manufacturing equipment, advanced packaging, and front-end semiconductor processes.

Investments could also extend to specialty chemicals, equipment and material.

“In terms of fiscal support, RM25 bilion has been allocated for fiscal incentives and development expenditure to support advance packaging centres or facilities,” it added.

RHB Research said ISIS had emphasised the need to reshape the semiconductor value chain amid global tech rivalries and export controls.

To enable Malaysia to move up the value chain, the institute underscores the importance of bridging research and development (R&D) gaps, pooling resources from research institutes, and focusing on talent development.

RHB Research identified three key NSS issues which are supply chain resilience, ensuring cost competitiveness, and sourcing talent.

“To address talent gaps, initiatives such as Collaborative Research in Engineering, Science, and Technology (CREST) were introduced, collaborating with tertiary education institutions to channel resources more effectively.

“There is also a need to create attractive packages to draw talent into the sector, ensuring the industry has the necessary workforce to grow,” it said.

Meanwhile, environmental, social and governance considerations are being addressed through the development of a green framework, with the Kerian Industrial Park serving as a reference.

Source: NST

NSS gives more balanced approach to develop champions on global stage: RHB Research

Budget 2025 has set aside sizeable funds, both fiscal and non-fiscal, towards ensuring the success of the National Semiconductor Strategy (NSS), which is part of the New Industrial Master Plan 2030 (NIMP 2030).

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said that among the initiatives announced in the budget are the RM1 billion sovereign fund for the electrical and electronics sector and high-value activities as well as training funds allocated for several universities.

Apart from that, he said there are initiatives to support mid-tier companies as well as tax incentives for companies in the industry.

“I think we are on track (to achieve the target set in NIMP 2030). You have seen exports continue to grow in these sectors as well.

“And if you look at the just-announced report card yesterday for our NIMP 2030, we should see positive growth at this year-end, and growth in the manufacturing sector has contributed close to a 5% increase to our gross domestic product this year,” he said this during an interview with CNBC Asia Squawk Box on Tuesday.

Tengku Zafrul was commenting on the progress of NSS and NIMP following the Budget 2025 announcement on Friday.

When asked how the new tax will help finance the bigger budget of RM421 billion, he said that apart from the tax on dividends as well as the larger scope of the sales and service tax, emphasis is given on cost discipline, for instance, via the merging of several agencies under the Ministry of Investment, Trade and Industry.

“Yes, I am quite confident that we will meet the budget estimate. We have been meeting our deficit target, for example, and I think we will hopefully achieve it (fiscal target) in 2024 as well,” he said.

The ministry will also continue with initiatives to drive trade and investments to spur the country’s growth, added Tengku Zafrul.

Source: Bernama

Zafrul: Budget 2025 measures show strong support for semiconductor sector

The Investment, Trade and Industry Ministry (Miti) is confident of achieving the first-year targets of the New Industrial Master Plan 2030 (NIMP 2030), having already fulfilled three of the main indicators set, according to its minister Tengku Datuk Seri Zafrul Abdul Aziz.

Following the launch of NIMP 2030 on Sept 1, 2023, the manufacturing sector’s value added to the gross domestic product rose by 4.7%, or RM4.2bil, in the second quarter of 2024 against the same period in 2023 while the number of jobs increased 0.9%, or 200,000, he said.

Meanwhile, the median salary for the sector improved by RM201, or 8.2% year-on-year, in the first quarter of 2024 compared with the same quarter last year.

Under NIMP 2030, Miti targets to hit manufacturing sector value added of RM587.5bil, the creation of 3.3 million job opportunities and an increase in median salary to RM4,510 by 2030.

“Nearly all key performance indicators have been met for 2024.

“There’s still a lot of work to be done, and while we still have five years to go, time is becoming shorter and the economic situation is getting more challenging,” he told the media after presenting the Miti Report for the third quarter of this year yesterday.

Source: Bernama

Manufacturing sector gains from NIMP 2030

The implementation of the Kerian Integrated Green Industrial Park (KIGIP) development is one of the fastest in history, with planning permission approval obtained in less than three months from the launch date.

Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz said that normally, this process takes more than six months.

“The project is on track and is now closely monitored by the Special Task Force led by MITI (investment wing) and Perak’s Economic Planning Unit,” he said when presenting the MITI Report Card for the
third quarter of 2024 here on Monday.

The KIGIP groundbreaking ceremony was officiated by Prime Minister Datuk Seri Anwar Ibrahim in August.

According to Tengku Zafrul, the land study is being carried out by SD Guthrie Bhd for the soil treatment process, which is expected to start in January 2025.

“We are grateful to the Perak government and the relevant ministries for speeding up the process,” he said.

The KIGIP project is implemented in a whole-of-government approach through collaboration and synergy between the federal government, the state government as well as SD Guthrie and Permodalan Nasional Bhd.

Source: Bernama

KIGIP Industrial Park Development Implementation Among The Fastest In History – Tengku Zafrul

The Investment, Trade and Industry Ministry (MITI) is confident of achieving the first-year targets of the New Industrial Master Plan 2030 (NIMP 2030), having already fulfilled three of the main indicators set, according to its minister Tengku Datuk Seri Zafrul Abdul Aziz.

Following the launch of NIMP 2030 on Sept 1, 2023, the manufacturing sector’s value added to the gross domestic product rose by 4.7 per cent, or RM4.2 billion, as of the second quarter of 2024 against the same period in 2023 while the number of jobs increased 0.9 per cent, or 200,000, he said.

Meanwhile, the median salary for the sector improved by RM201, or 8.2 per cent year-on-year (y-o-y), in the first quarter of 2024 compared with the same quarter last year.

Under NIMP 2030, MITI targets to hit manufacturing sector value added of RM587.5 billion, the creation of 3.3 million job opportunities and an increase in median salary to RM4,510 by 2030.

“Nearly all key performance indicators (KPIs) for 2024 have been met. There’s still a lot of work to be done, and while we still have five years to go, time is becoming shorter and the economic situation is getting more challenging,” he told the media after presenting the MITI Report Card for 3Q 2024 today.

Tengku Zafrul said that under Mission 1 (Economic complexity), MITI has achieved commendable progress in efforts to strengthen the country’s position in the global semiconductor landscape through two key action plans that support this mission — creating global integrated circuit (IC) champions from Malaysia and attracting global firms to establish wafer fabrication facilities.

He said that in 3Q, a total of 500 engineers and 557 technical workers have been trained to strengthen the nation’s technical expertise in IC design and semiconductor production.

“A total of 4,673 people have been hired, comprising 1,130 engineers or technical experts. Technical workers made up 97 per cent of the total hired, reflecting a rise in technical talent.

“This initiative has also attracted large investments totalling RM35.6 billion (in 3Q), comprising RM0.97 billion in direct domestic investment and RM34 billion in foreign direct investment,” he said.

Further, he said, Malaysia saw the formation of three local IC design firms, a major step towards building the nation’s capability in this critical sector.

Under the Chemical Industry Roadmap 2030, Malaysia’s chemical industry attracted investments worth RM3.1 billion in the January-June 2024, up more than 82 per cent from RM1.7 billion in the previous year.

In addition, the chemical sector contributed RM55.3 billion to exports from January-September 2024, a growth of 4.3 per cent y-o-y.

Tengku Zafrul also expressed satisfaction with the performance under Mission 2 — national digital transformation for the manufacturing and manufacturing-related services (MRS) sectors that started with the introduction of the Industry4WRD programme in 2018, including initiatives such as the intervention fund.

“Under NIMP 2030, a new, improved initiative is being introduced — Smart Technology Uptake (Smart Tech Up) Programme which will be launched in the fourth quarter (4Q) of 2024, with the main goal of creating 3,000 smart factories by 2030.

“The new Smart Tech Up technology model will replace the Industry4WRD Readiness Assessment model,” he said.

The minister said that of the 406 companies approved via the intervention fund programme to embrace Industry 4.0, the majority are in a good position to fulfil the definition of “smart factory” as outlined in the Smart Tech Up Programme.

On NIMP 2030’s Mission 2 focused on digital investments, he said there is an increasing trend, with more than 64,000 job opportunities created from the RM185 billion of investments approved from 2021 to 2Q 2024.

Mission 3 targeting net-zero carbon emissions is also going well, according to him.

“Perodua’s plan to produce its first commercial electric vehicle by 4Q 2025 is also proceeding smoothly,” he said.

He also noted that the Circular Economy Policy Framework (CEPF) was launched on Sept 26 to drive more efficient manufacturing process towards reducing waste production.

“To tackle the high emissions for sectors that are hard to terminate, MITI has completed the basic pre-feasibility work for two pioneer projects in the steel and cement sectors.

“For carbon capture, utilisation and storage (CCUS), basic pre-feasibility work has been completed with the actual study to start in 4Q this year,” he added.

Source: Bernama

NIMP 2030 succeeds in raising value added, jobs, median salary in manufacturing sector – Tengku Zafrul

The Ministry of Investment, Trade, and Industry (MITI) is confident that it can achieve the primary targets set for the first year of the New Industrial Master Plan (NIMP) 2030, according to Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He noted that this confidence stems from the fact that three key targets have already shown impressive progress.

“Based on NIMP 2030, launched on Sept 1, 2023, the value-added contribution of the manufacturing sector to the gross domestic product (GDP) has increased by 4.7 per cent, amounting to RM4.2 billion. 

“Employment numbers have also risen by 0.9 per cent or 200,000 workers, as of the second quarter of 2024 (2Q24), compared to 2Q23.

“Additionally, the median salary in the manufacturing sector increased by 8.2 per cent or RM201, as of 1Q24, year-on-year.

“Almost all key performance indicators (KPIs) for 2024 have met their targets,” he told reporters after presenting MITI’s 3Q24 report card today.

However, the minister noted that there is still much work to be done. 

He said while five years remain, time is running short, and the economic environment is becoming more challenging.

Under NIMP 2030, MITI aims to achieve a value-added contribution of RM587.5 billion from the manufacturing sector, create 3.3 million job opportunities, and raise the median salary to RM4,510 by 2030.

According to MITI’s 3Q24 report card, Malaysia has approved RM6.2 billion in green investments through the Malaysian Investment Development Authority (MIDA) in the first half of 2024 (1H24), focusing on renewable energy, energy efficiency, and circular economy initiatives. 

This effort has resulted in 436 projects, creating 3,843 jobs, with 82.1 per cent already implemented. 

MITI also noted that domestic investments have shown promise with significant projects like Asiabina Solar Sdn Bhd investing RM200.4 million in a solar project in Parit Buntar. 

Foreign investments include a new semiconductor manufacturing facility by Silware Precision Malaysia Sdn Bhd in Penang, projected to create around 3,000 jobs.

The ministry also said Malaysia’s trade performance has been robust, with total trade reaching RM2.139 trillion from Jan to Sept 2024. 

This included RM1.115 trillion in exports and RM1.024 trillion in imports, resulting in a trade surplus of RM91.21 billion. 

Notable trade initiatives like the Malaysia International Halal Showcase (MIHAS) have generated significant sales, while the Export Day 2024 reported that 50.63 per cent of companies were actively engaged in exports.

Additionally, regulatory reforms across 27 ministries have led to cost savings of RM561.5 million for businesses.

Meanwhile, Tengku Zafrul said his ministry welcomes the 2025 Budget allocation, which reflects the government’s commitment to strengthening the national economy through strategic investment, industrial, and trade initiatives.

He noted that the budget allocation for MITI was higher than in 2024, with a total of RM2.18 billion allocated to the ministry for 2025.

“MITI is committed to ensuring that every cent of the allocated funds is utilised optimally for the well-being of the people and the economic development of the country,” he said.

Source: NST

Tengku Zafrul: First-year target of NIMP 2030 is attainable

The Ministry of Investment, Trade and Industry (MITI) will help Perusahaan Otomobil Kedua Sdn Bhd (Perodua) produce Malaysia’s first electric vehicle (EV) priced under RM100,000.

Its minister Tengku Datuk Seri Zafrul Abdul Aziz said the ministry is optimistic that Perodua will reach its target of producing the EV by the end of 2025.

“The reason why we want to assist and facilitate Perodua is because we want to make EVs affordable.

“Perodua has been in discussion with MITI, and we are optimistic with its plan of achieving its target by the end of 2025,” he said after the JAC Motors Brand Launch here today.

Tengku Zafrul also said that as of September 2024, almost 16,000 new passenger battery EVs (BEVs) were registered in Malaysia, surpassing roughly 13,000 BEVs registered throughout 2023.

“This positive momentum brings us closer to our target of 20 per cent of total industry volume comprising EVs by 2030,” he said.

On charging infrastructure, he noted that within just three months, 565 new chargers were added, bringing the total number of public charging stations to nearly 3,200 as at end of September.

“We aim to have 10,000 public chargers, reducing the ratio of chargers to EVs to one-to-nine (1:9) by the end of 2025,” he said.

According to Tengku Zafrul, Malaysia’s automotive industry continues to be a central pillar of our nation’s economy, contributing approximately four per cent to the country’s gross domestic product annually.

“With the rapid evolution of the EV market, Malaysia is well-poised to capture a significant share of the ASEAN EV market, projected to reach US$2.7 billion (US$1=RM4.29) by 2027,” he added.

Source: Bernama

MITI to help Perodua produce Malaysia’s first EV priced under RM100,000 – Tengku Zafrul

The domestic manufacturing sector is expected to cement firmer footing across industries amid stable global economic growth.

According to the Economic Outlook report, the manufacturing sector is expected to strengthen by 4.5% in 2025, driven by significant policies such as the New Industrial Master Plan (NIMP 2030) and the National Semiconductor Strategy (NSS).

The report said domestic-and exportoriented industries continue to uphold the sector’s performance in line with resilient domestic demand and favourable external environment.

On the domestic front, production in household and consumer goods-related industries such as food, beverages, and textiles is expected to be sustained.

This aligns with supportive policy measures such as salary adjustments for civil servants and the withdrawal of the EPF Flexible Account, which will stimulate consumer spending.

The report said favourable tourist arrivals in conjunction with major international events will also spur the demand for consumer goods.

On the other hand, increasing approved and realised investments signifies a positive outlook for construction activities, thereby propelling growth in manufacturing construction-related materials.

Export-oriented industries are also expected to continue their growth trajectory, which aligns with the higher global demand for electronics components.

The electrical, electronic, and optical products subsector is expected to accelerate further, mainly underpinned by sustained demand for intermediate products, including advanced chips used in next-generation smartphones and other consumer devices.

Furthermore, the rising realisation of approved investment in the semiconductor industry, coupled with concerted efforts by the government to elevate the entire high-tech ecosystem under the NSS, will provide additional support to the subsector’s growth.

The report said the mining sector will likely face a subdued outlook for 2025.

It also noted that the mining sector is forecast to contract by 1% in 2025, following a sluggish performance in key subsectors.

The natural gas subsector is projected to decline as output decreases, mainly due to the planned shutdown of two facilities in Sarawak for maintenance purposes and moderating demand from major importing countries such as Japan, China and South Korea.

The overall natural gas production is expected to remain below the 2024 capacity despite several new plants being scheduled to commence operations.

Source: The Star

Domestic manufacturing industry set for expansion

Sun Bus Tech has already laid a solid foundation for success over the past 12 months even before its official opening, firming up partnerships with industry giants like HESS Switzerland 

Traditional bus maker pioneer Sun Bus Tech Sdn Bhd is set to up the game. 

The leader in bus and bus body recently celebrated the grand opening of its advanced manufacturing facility in Senai Airport City, Johor. 

Designed to produce over 500 commercial vehicles annually, the facility by the subsidiary of Sun Wah Group was expected to create over 150 jobs, driving local and regional economic development. 

With the opening, Sun Bus Tech was set to lead the industry with its revolutionary electric buses, equipped with first-in-Malaysia technology imported from Europe and sustainable manufacturing practices. 

The bus maker has unveiled its work on developing the Model T for electric vehicle manufacturer Foxtron, highlighting its capability to manage sophisticated projects for global leaders in the industry. 

Sun Bus Tech founder/chairman Phang Sun Wah said that the company’s five decades of experience have led it to pioneer bus body manufacturing in Malaysia and beyond. 

“Our partnership with global leaders like HESS and the technology transfer from Scania Sweden has enabled us to implement industry-first advancements, such as our patented Co-Bolt technology. This facility is not just about manufacturing buses, it’s about pushing the boundaries of what is possible in sustainable transportation, setting new standards that extend beyond conventional methods. 

We are excited to have already secured significant contracts from regional and neighbouring governments, positioning Sun Bus Tech as the leader in the industry,” he said in a statement. 

Johor State Public Works, Transport, Infrastructure and Communications Committee chairman Mohamad Fazli Mohamad Salleh mentioned that the establishment of Sun Bus Tech’s manufacturing plant is a good example of Johor’s dedication to becoming a sustainable and eco-friendly state. 

“This venture is not only about creating green jobs and significantly reducing carbon emissions but also aligns with our broader vision for the Johor-Singapore Special Economic Zone (JS-SEZ). Through enhanced connectivity, modern facilities and an increased share of public transportation, we are determined to transition Johor — and Malaysia — towards a low-carbon economy, paving the way for a more sustainable and prosperous future,” said Mohamad Fazli. 

Deputy Minister of Investment, Trade and Industry Liew Chin Tong said as Malaysia outlined its economic strategy for the ASEAN chairmanship, Johor was poised to play a pivotal role in fostering regional trade and investment. 

“The JS-SEZ will also strengthen Malaysia’s position in regional and global supply chains,” he said. 

Reflecting on the strategic partnership, Carrosserie HESS AG CEO Alex Naef said its collaboration with Sun Bus Tech allowed the company to bring top-tier European technology to the region, enabling the production of long-lasting, energy-efficient and recyclable transport solutions. 

“This partnership is a crucial step towards a more sustainable and efficient future in public transportation,” he mentioned. 

Sun Bus Tech has already laid a solid foundation for success over the past 12 months even before its official opening on Oct 11, firming up partnerships with industry giants like HESS Switzerland and secu- ring cutting-edge technology from Scania Sweden. 

The integration of patented aluminium technology represents a significant industry breakthrough, while the facility’s focus on sustainability, including the use of solar panels, rainwater harvesting and energy-efficient systems, has earned the company a Green Building Index (GBI) certification, the company said in the same statement. In addition to bus and bus body manufacturing, Sun Bus Tech has also established a joint venture with the Polish seat manufacturer STER Sp z o o, focusing on the supply of commercial vehicle seats in Asia.

Sun Bus Tech’s journey began in the 1970s when it first ventured into the bus industry by launching a coachwork fabrication business. The early experience laid the ground- work for a larger venture he co-founded in 1989, focusing on bus and bus body manufacturing in Senai, Johor.

Sun Bus Tech’s expertise lies in crafting bus bodies tailored to various chassis configurations to ensure structural integrity and value. It offers solutions for every stage of the vehicle lifecycle — from design and construction to maintenance and digital platforms for real-time fleet monitoring. 

Its initiatives include advanced battery recycling programmes that support a circular economy and reduce environmental impact. 

Source: The Malaysian Reserve

Johor-based Sun Bus Tech opens advanced manufacturing facility

Malaysia’s semiconductor industry is set to solidify further with various commendable initiatives outlined under Budget 2025, including the Supply Chain Resilience Initiative and the New Investment Incentive Framework.

Malaysia Semiconductor Industry Association (MSIA) director Andrew Chan said the Budget, with a stronger focus on developing talent in the electrical and electronics (E&E) sector, has further solidified the country’s role in the global semiconductor supply chain.

“These efforts aim to bolster the country’s competitiveness in the semiconductor sector and the measures outlined in the budget lay a solid foundation for long-term growth and resilience within the industry,” he told Bernama.

Budget 2025 was unveiled by Prime Minister Datuk Seri Anwar Ibrahim, who is also finance minister, on Friday, with an allocation of RM421 billion, comprising an operating expenditure of RM335 billion and a development expenditure of RM86 billion.

The expansionary budget also involved the introduction of the New Investment Incentive Framework, including a strategic investment fund worth RM1 billion aimed at enhancing the capacity of local talent and encouraging high value activities to be carried out in the country. This framework, which focuses on high value activities as opposed to existing incentives based on specific products, is expected to be implemented in the third quarter of next year.

To enhance the diversification of the E&E sector through high-value-added activities, such as integrated circuit (IC) design services and advanced materials, the government has agreed to expand the tax incentives to boost exports to include IC design activities.

In efforts to reduce the economic gap between regions, special income tax incentives will be offered for investments in 21 economic sectors in Perlis, Kedah, Kelantan, Terengganu, Sabah and Sarawak, subject to the success of economic spillovers.

Meanwhile, commenting on the government’s plan to implement a multi-tiered levy mechanism (MTLM) early next year to reduce dependence on foreign workers, Chan said it is a proactive step by the government.

He reckons that the levy proceeds will be reinvested in the industry for automation and mechanisation, which aligns well with the broader push for digital transformation and increased efficiency. “We look forward to hearing more details of the MTLM,” he added.

Source: The Sun

Budget 2025 set to strengthen Malaysian semiconductor industry: Association

The Federation of Malaysian Manufacturers (FMM) has praised the 2025 Budget for its focus on higher value-added activities, Environmental, Social, and Governance (ESG) initiatives, and net-zero targets, all of which are vital for fostering economic growth.

Its president Tan Sri Soh Thian Lai said the introduction of the multi-tier levy mechanism (MTLM) was designed to drive automation and reduce reliance on low-skilled foreign workers.

“This initiative is crucial for advancing technology adoption and digitalisation, which will increase demand for skilled workers while decreasing reliance on low-skilled labour,” he said.

He said there was a need for the tiered levy system to be implemented transparently, with clear criteria, a pre-announced deadline, and a gradual increase in rates to minimise business costs.

Incentives for businesses that reduce foreign worker usage should also be included, he added.

With RM64.1 billion allocated to the Education Ministry and RM18 billion to the Higher Education Ministry, the budget aims to build a skilled workforce, particularly in STEM and AI fields.

“The RM7.5 billion earmarked for Technical and Vocational Education and Training (TVET), including industry collaborations, will further support this objective,” he said.

Soh expressed optimism regarding the government’s plan to raise the minimum wage to RM1,700 starting February next year, acknowledging the need to balance worker wages with inflationary pressures while ensuring sustainable industry growth.

“FMM looks forward to the thoughtful implementation of these measures to support both employee welfare and business competitiveness,” he said.

However, he voiced concerns over the increase in excise duty on sugar-sweetened beverages, labelling it a “hard policy” that could burden consumers.

He urged a more holistic approach to combating non-communicable diseases (NCDs) through education and community health programmes.

Additionally, the proposed increase in sales tax on premium imported products like salmon and avocados raised concerns about potential administrative challenges and increased consumer costs.

“Any increase in sales tax on premium products should be approached cautiously to avoid unnecessary burdens on consumers, especially as many of these items have become common in households,” he said.

Soh also expressed disappointment that the government did not adopt FMM’s proposal for double tax reductions for companies embracing Industry 4.0 technologies, such as AI, Big Data Analytics, and automation systems, which could enhance manufacturing processes and support local SMEs in their smart manufacturing journeys.

Source: NST

FMM welcomes 2025 Budget: A boost for automation, skilled workforce

The government will introduce a carbon tax on the iron and steel as well as energy industries by 2026.

Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, said the tax is aimed at promoting the use of low-carbon technologies.

“Revenue generated from this tax will be used to fund green research and technology programmes,” he said when tabling Budget 2025 in the Dewan Rakyat here today.

Meanwhile, he said UEM Lestra and Tenaga Nasional Bhd will invest RM16 billion to increase the transmission and distribution network capacity as well as decarbonise industrial areas.

Anwar said the open grid access initiative will be implemented through the Corporate Renewable Energy Scheme (CRESS) to enable corporate users to obtain electricity supply from preferred renewable energy (RE) generators.

The Prime Minister said dual-function RE generation structural designs such as the agrivoltaics concept will be introduced to prevent RE power plants’ negative impact on food production.

Source: Bernama

Budget 2025: Govt to introduce carbon tax on iron, steel and energy industries by 2026

The dynamic global economic landscape and rapid technological advancements require Malaysia to keep abreast of industrial developments, necessitating the formulation of the New Industrial Master Plan 2030 (NIMP 2030).  

The NIMP 2030 sets strategic initiatives designed to position Malaysia as a global leader in industrial development to elevate the manufacturing and manufacturing-related services sectors to greater heights.

This is geared towards capitalising emerging global trends such as artificial Intelligence (AI), advanced robotics and electric vehicles (EVs).  

The plan identifies electrical and electronic (E&E) as one of the priority subsectors that can generate high economic and innovation knowledge spillovers.  

The E&E subsector forms 40 per cent of the nation’s exports of manufactured goods, particularly to Singapore, the US and China. Semiconductor industry constitute 60 per cent of total E&E exports, mostly from back-end activities.  

With strong capabilities and rising global market trends on technological changes, Malaysia aims to move up to higher value-add segments and strengthen both the front and back-end semiconductor ecosystem.

The National Semiconductor Strategy (NSS) was announced in May 2024 as part of the NIMP 2030 with the aim of enhancing the country’s role in the global semiconductor supply chain from design to production of high-value semiconductor products.  

Measures taken include prioritising new investments in advanced wafer fabrication and integrated circuit design activities.  

The extensive initiative of the NSS highlights the nation’s strong commitment towards elevating the entire high- tech industry and enhancing workforce to greater heights as the strategy sets forth five headline targets including fiscal support, training, investment, company growth as well as research and development (R&D) hub.  

The government and industry require strategic actions to advance Malaysia’s semiconductor industry, such as fostering R&D collaboration, continuous technical skill learning programme, establishment of an advanced packaging technology centre and sustainable development. 

Malaysia’s semiconductor industry is at a transformative juncture, buoyed by strategic national initiatives and a forward-looking vision.  

Supportive national policies, such as the Ekonomi Madani framework, which includes the implementation of the NIMP 2030 and NSS, underscoring the government’s commitment to fortify the industry’s global competitiveness and sustainability.  

With all these policies and action plans in place, Malaysia is well-positioned to navigate through the complexities of the global semiconductor market, drive growth and set new benchmarks of excellence in the coming years. 

Source: NST

Government to leverage AI, robotics & EVs to bolster semiconductor sector

The Investment, Trade and Industry Ministry (MITI) expects 10,380 job opportunities to be created via an industrial cluster development in the central region comprising the Federal Territory of Kuala Lumpur, Selangor, Negeri Sembilan and Melaka.

According to MITI, this initiative will raise several macroeconomic measures, including the collective central region’s achievement in 2023, with a RM754.2 billion contribution to the gross domestic product (GDP),  and an estimated annual increase of RM24.5 billion from 2025 to 2030.

According to MITI, the central region’s 2023 gross estimated rise in average investment was RM7.57 billion and this is expected to increase by RM12.5 billion for the 2025-2030 period. 

Earlier, Prime Minister Datuk Seri Anwar Ibrahim chaired an Oct 16 2024 National Investment Council meeting which agreed to take an industrial cluster development approach in line with the objectives of the New Industrial Master Plan 2030 (NIMP 2030).

Meanwhile, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said in a statement that the strategic initiative aims to strengthen Malaysia as an investment, manufacturing and service hub for several focus sectors.

The central region has a high concentration of electrical and electronic, aerospace, pharmaceutical and food technology sectors and the government is determined to develop a targeted industrial cluster, starting with the central region, based on its existing strengths.

“We do not need to create a corridor authority or add new financial burdens on the Federal Government, thus saving administrative costs and fiscal allocations.

“Additionally, we will also be able to leverage existing incentives,” he said.

Tengku Zafrul is also confident that the industrial cluster approach will attract additional investments, create new job opportunities, improve the local economy, and promote fair and inclusive growth with close coordination between MITI, ministries and agencies, and state governments.

This high-performance industrial cluster development model has successfully been implemented in several developed countries.

MITI will ensure whole-of-nation efforts and use best global practices when implementing this initiative, he said.

Source: Bernama

More than 10,000 job to be created with industrial cluster development – MITI

Sarawak is leveraging on cutting-edge digital technologies such as artificial intelligencies (AI), the internet of things (IoT) and data analytics to accelerate its smart and precision farming ambitions.

This is so it can realise its aim to address food security and establish the state as a net food exporter by 2030.

State Utility and Telecommunications Minister Datuk Seri Julaihi Narawi told the International Digital Economic Conference (IDEC) here today that Sarawak was already at the “leading edge of a significant and transformative shift in how farming is conducted”.

“This shift not only enhances our crop yield and productivity but also improves our overall production efficiency and market access,” he said.

Julaihi said these advancements were crucial as Sarawak strives to meet the food security agenda.

He said Sarawak, to achieve its vision to be a developed state by 2030, had launched its Post Covid-19 Development Strategy 2030 (PCDS 2030) in 2021 where it provides strategies for achieving its vision of having a thriving society driven by data and innovation by 2030.

“The PCDS 2030 is underpinned on technology driven economies, namely, digital economy, green economy, and circular economy to drive Sarawak’s economic growth, social inclusivity, and environmental sustainability.”

Julaihi said, to realise the aspirations of PCDS 2030, the Sarawak Digital Economy Blueprint 2030 was launched in October 2023 as the strategic plan to transform the whole-of-economy and society from conventional resource-based economy to environmentally-sustainable, technology-driven economy.

“The world economy is transforming fast because of the rapid spread of new digital technologies, in particular artificial intelligence, with major implications on nations economic growth, social well-being and environmental sustainability.

“The value of being a digitally-ready nation is immediately reflected in the strong correlation against indicators such as GDP per capita, innovation, digital competitiveness and e-commerce amongst others,” he said.

Julaihi said the Sarawak Digital Economy Blueprint 2030 envisions Sarawak becoming a major digital economy powerhouse in the region to achieve inclusive, responsible, and sustainable socio-economic development.

An Oxford Economics report, he said, had stated the average contribution of digital economy to the global economy will be 24.3 per cent in 2025.

“The Sarawak Digital Economy Blueprint 2030 targets the state being able to tap a percentage of the global economy to flow into Sarawak through strategies to grow cross-border data flow by establishing technology parks to attract digital investments such as AI data centres, digital services and technology industries, amongst others.

“The blueprint takes into consideration the foresight and direction of global digital economy strategies and recognises that the Sarawak government plays an enabling role, with the economy driven by public and private sectors and individuals to determine our ultimate measure of success.”

Source: NST

Sarawak going hi-tech to realise ambition to be net food exporter