Experts from integrated circuit (IC) design industry players Skyechip, Weeroc, and Chipsbank have emphasised the potential of Malaysia’s semiconductor sector to enhance Southeast Asia’s technology landscape at the Selangor Smart City and Digital Economy Convention (SDEC) 2024 today.

The first day of the three-day SDEC 2024 featured insightful sessions on Malaysia’s IC design industry and the growing convergence of artificial intelligence (AI) and semiconductors, according to event host Selangor Information Technology & Digital Economy Corporation (Sidec).

“Key discussions focused on the transformative role of semiconductors in industries such as healthcare, mobility, and manufacturing, while other sessions delved into the importance of talent development in cultivating Malaysia’s next generation of semiconductor engineers,” it said in a statement today.

Sidec said that as part of the Selangor International Business Summit (SIBS), this year’s 3-in-1 conference focuses on semiconductors, AI innovation, and small and medium enterprise (SME) digitalisation, exploring their role in driving Malaysia’s digital economy forward.

SDEC 2024, themed “Building a Smarter Malaysia: Unleashing AI & Semiconductor Convergence”, features more than 200 exhibitors and is expected t attract over 18,000 visitors.

Its official opening ceremony was officiated by Menteri Besar Selangor Datuk Seri Amirudin Shari, alongside Deputy Digital Minister Datuk Wilson Ugak Anak Kumbong and Selangor state executive councillor for investment, trade, and mobility Ng Sze Han.

During the event, strategic partnerships were formalised, including a memorandum of understanding (MoU) between Sidec and Cyberview Sdn Bhd.

“This MoU marks a key milestone for Malaysia’s semiconductor industry, focusing on a two-year collaboration to advance investment, ecosystem, and industry development for the IC Design Park Phase 2 in Cyberjaya.

“The dignitaries also witnessed a product preview and company launch by TEASK, a company with a vision for accessible, clean, and interconnected energy,” the statement said.

TEASK offers modular and movable power stations, with the first station installed in Cyberjaya, a collaboration through the Cyberview Living Lab Pilot initiative.

Additionally, NCT Group formalised a strategic partnership with Sidec to foster industrial development and promote community building at the NCT Smart Industrial Park, further supporting business growth and global expansion opportunities.

Sidec said these collaborations are part of Malaysia’s broader efforts to establish itself as a regional leader in semiconductor innovation, digital transformation, and smart city development.

Following the successful launch of day one, SDEC 2024 will continue to explore generative AI innovation on the second day, focusing on global AI talent development, AI in robotics, and the transformative impact of generative AI across various industries.

Day 3 will feature the TikTok SME Digitalisation Conference, which will offer insights and strategies for SMEs to leverage digital platforms and innovative e-commerce solutions to drive growth and success.

Source: Bernama

Malaysia’s Semicon Sector Can Enhance Southeast Asia’s Tech Landscape — IC Design Experts

NCT Group, via unit NCT Land Sdn Bhd, has formed a partnership with Selangor Information Technology & Digital Economy Corporation (SIDEC) on fostering advanced technologies, innovation and community building at the NCT Smart Industrial Park (NSIP).

“The partnership marks a key milestone for NSIP as it solidifies its position as a hub for semiconductors, artificial intelligence (AI) and robotics while supporting NSIP’s evolution into a digitally driven, environmentally sustainable industrial destination in Selangor,” the group said.

NCT founder and group managing director Datuk Seri Yap Ngan Choy said making NSIP future ready will be beneficial for all stakeholders.

“SIDEC’s multifaceted expertise in driving the digital economy and fostering smart city solutions makes them the ideal partner to take NSIP to the next level.

“Together, we are establishing an industrial park that not only meets the infrastructure demands of businesses but also sets the standard as the country’s first tech-centric park with zero emissions by 2050,” he said in a statement.

SIDEC chief executive officer Yong Kai Ping said as Selangor moves towards becoming a leader in digital economy and smart city solutions, the collaboration with NCT aligns perfectly with SIDEC’s vision for innovation and sustainability.

“NSIP will set the standard for smart, sustainable industrial parks, and we are excited to contribute our expertise in digital transformation,” he added.

Key initiatives under the partnership include business matchmaking, where NCT and SIDEC will actively connect local and international companies to create new collaborations and innovative synergies aimed at driving investments for sustainable long-term growth.

Additionally, digital transformation remains a key focus of the alliance, complementing NSIP’s ongoing efforts to strengthen operational efficiency and create an environment conducive to global expansion through the adoption of advanced technologies and systems.

“Ultimately, these multifaceted initiatives are designed to enhance NSIP’s position as a leading industrial hub, fostering a vibrant, sustainable and innovative industrial community,” NCT said.

NSIP is sited within the Integrated Development Region in South Selangor.

Source: NST

NCT Group, SIDEC to ‘future ready’ Selangor’s smart industrial park

More than 10 companies have visited and initiated discussions on potentially investing in the Silver Valley Technology Park (SVTP), Perak, from the beginning of 2023 to the third quarter (3Q) of 2024, said the Ministry of Investment, Trade and Industry (MITI).

MITI said that China’s Jinjing Silicon Technology has committed to invest RM40 million in SVTP on a project to manufacture high-quality glass for solar energy systems.

“Currently, the project is 20 per cent completed, and it is estimated to be completed by 4Q 2025,” the ministry said in its written response posted on the Parliament’s website today.

MITI was responding to a question from Lee Chuan How (PH-Ipoh Timur) concerning plans to attract industries to SVTP while waiting for the Kerian Integrated Green Industrial Park (KIGIP) to be operational.

Regarding KIGIP, MITI acknowledged that comprehensive efforts to realise the green industrial park had been taken through close cooperation between the federal government, the Perak state government, SD Guthrie and Permodalan Nasional Bhd since its announcement in Budget 2024.

The ministry said among the steps taken is to promote KIGIP’s potential as a preferred investment destination for investors. 

“The government believes that KIGIP, based on a green and smart industrial park concept, can generate economic activities and create job opportunities for high-skilled talents.

“The park is expected to attract quality investments, especially in the electrical and electronic, semi-conductor, logistics, information technology and communications sectors, as well as knowledge-based industries,” it added.

Source: Bernama

More than 10 companies looking at investing in Silver Valley Technology Park – MITI

The Selangor Information Technology and Digital Economy Corp (Sidec) had inked a memorandum of understanding (MOU) with Cyberview Sdn Bhd for the advance investment, ecosystem and industry development of the Integrated Circuit (IC) Design Park Phase 2 in Cyberjaya.

This marks Selangor state’s second IC design park, following the launch of its first park in Puchong in August 2024.

Explaining further, Selangor Mentri Besar Datuk Seri Amirudin Shari revealed that the IC Design Park 2 in Cyberjaya is expected to be launched in the first quarter of 2025.

“To further strengthen our position in the semiconductor industry, I am delighted to share that we are planning the development of IC Design Park 2 in Cyberjaya.

This will expand our capabilities and reinforce Malaysia’s role as a key player in this critical global industry,” he said at the opening ceremony of the Selangor Smart City and Digital Economy Convention (SDEC) 2024.

Having seen the success of its first semiconductor IC design park, Amirudin said the move had increased Malaysia’s place on the global stage in the semiconductor space.

He proceeded to call out to international players to be a part of Malaysia’s semiconductor journey and to ensure Selangor remains at the cutting edge of the industry.

“As we move forward, our vision is clear. We want Selangor to be a global leader in digital transformation.

This means shaping a resilient and adaptable ecosystem, investing in the right technologies and empowering our entrepreneurs,” he said.

He stated that the aspects are equally critical to ensure that artificial intelligence (AI) does not end up as a buzzword and instead bring a meaningful change to people’s lives.

He added that cybersecurity awareness is also important to prevent Malaysians from being exposed to threats by those aiming to take advantage.

“We can build a future where Selangor continues to lead in the digital economy, but we must build an ecosystem which is secure, where our businesses thrive and where our people have the security and confidence to not only be users, but shepherds to this field,” he added.

During a special address, Digital Deputy Minister Datuk Wilson Ugak Anak Kumbong said collective efforts by all stakeholders – including the government, businesses, academia and the rakyat, are essential to unlock the full potential of AI, semiconductors and the digital economy.

“As we look forward, it is crucial to remember that digital transformation is a collective effort.

“Together, we can ensure that Malaysia is not just a participant in the global digital landscape, but a leader,” he added.

SDEC 2024, a part of the Selangor International Business Summit, featured sessions on Malaysia’s IC design industry and the growing convergence of AI and semiconductors.

Additionally, a separate strategic partnership was formalised during the event, involving NCT Group with Sidec to foster industrial development and promote community building at the NCT Smart Industrial Park in Sepang.

Source: The Star

Selangor strengthens its position in chip sector

Malaysia is well-positioned to be a hub of innovation and sustainable development in Southeast Asia in the long-term, supported by recently announced German Technology Park in Malacca.

MIDF Research said there are over 700 German companies in Malaysia to-date, which have created over 70,000 jobs for locals.

The firm said that the nation stood as a location of interest, given its strategic location and developed infrastructure.

“Given that German companies adhere strictly to sustainability practices, we believe this project is apt and timely to gain better investments to support the development of the technology park,” it said in a research note today.

German Technology Park is designed to attract leading German technology and manufacturing companies, and aims to be a hub of innovation and sustainable development in the region.

Cypark Resources Bhd, Melaka Corporation (MCorp) and Jakel Capital have signed a memorandum of agreement to jointly explore and develop energy solutions for the industrial park, with the shared goal to manage the planning, generation, and distribution of at least 1,000 megawatt (MW) in the next five to seven years.

The consortium will be structured with Jakel Capital holding a 51 per cent stake, Cypark Resources at 29 per cent and MCorp at 20 per cent, with an estimated RM4 billion capital expenditure.

The project includes the integration of renewable energy sources and modern energy management systems.

This includes battery storage solutions to ensure firm and cost-efficient power supply to the industrial park in consultation with Tenaga Nasional Bhd (TNB) and Suruhanjaya Tenaga via the corporate renewable energy supply scheme (CRESS).

While optimistic over the project, MIDF Research also identified certain risks which includes high upfront cost of infrastructure set up and regulatory changes.

The firm said regulatory risks are the most significant, considering that German companies had to adhere to several regulations when operating abroad.

This includes Supply Chain Due Diligence Act (LkSG) which requires medium-sized German companies to ensure their supply chain comply with human rights and environmental standards.

Meanwhile, the Foreign Trade and Payments Act (AWG) regulates foreign investments in strategic sectors including technology manufacturing and General Data Protection Regulation (GDPR) ensures data privacy and security in both companies and the nation they operate in.

“Nevertheless, regulatory risks could be mitigated through thorough due diligence in tandem with engaging legal experts to ensure the proper navigation between the policies in Germany and Malaysia.”

“Additionally, implementing a robust sustainability and human rights practices could meet LkSG requirements, through job creation and integration of greener solutions to energy generation,” it added.

Source: NST

The German Technology Park in Malacca can help make Malaysia a hub for innovation and sustainability

A total of 6,617 battery-electric vehicles (BEVs) were sold in the first half of 2024 (1H24), up 112 per cent year-on-year (YoY), said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

A total of 3,117 BEVs were sold during the same period in 2023.

Tengku Zafrul noted that the progress brings the country closer to its goal of having electric vehicles make up 20 per cent of total industry volume (TIV) by 2030.

“This remarkable growth not only signals our consumers’ growing interest, but also demonstrates Malaysians’ general buy-in to contribute to the national and global environmental agendas,” he said at the launch of Leapmotor, the latest addition to Stellantis’ portfolio in Malaysia.

He added that as of Sept 30 this year, over 171 charging stations had been installed nationwide, of which 813 were direct current (DC) fast chargers.

“We hope to reach our goal of 10,000 charging stations by end-2025,” Tengku Zafrul said.

The minister highlighted that the automotive industry continues to be a crucial driver of Malaysia’s economic growth, contributing a significant 4.0-5.0 per cent to the country’s gross domestic product (GDP) each year and providing employment for more than 700,000 people.

In comparison to 2023, the sector recorded total imports valued at RM62.14 billion, with RM37.15 billion coming from the import of automotive parts and components.

“On the export side, the sector recorded a total value of RM18.01 billion, with RM13.26 billion from automotive parts exports.

“The significant disparity between imports and exports has led to a trade deficit for the sector,” he said.

Stellantis Malaysia today launched its new electric vehicle brand, Leapmotor, along with its first global offering, the Leapmotor C10 electric SUV.

The company also revealed plans for Malaysia, which include the local assembly of Stellantis brand multi-energy vehicles at its Gurun facility in Kedah, aimed at serving the Asean market.

Additionally, Stellantis said it intends to enhance the local supply chain, support talent development, and create new job opportunities.

Tengku Zafrul said this decision will significantly boost the automotive industry, facilitate advanced technology transfer and contribute to improving exports.

Source: NST

Malaysia inches closer to EV goal

The development of a special industrial cluster in the manufacturing sector in the central region needs to be prioritised as a strategic initiative of the Madani government to strengthen the country’s position as an investment hub, said Prime Minister Datuk Seri Anwar Ibrahim.

The central region includes the Federal Territory of Kuala Lumpur, Selangor, Negeri Sembilan and Melaka.

Anwar, who is also finance minister, said this matter has been agreed upon in principle and that the importance of close cooperation between the federal government and the state governments in jointly promoting the central region should be emphasised.

“This is important in the effort to attract more high-quality investments to the focus areas in each state, speeding up the implementation of projects while improving the ‘ease of doing business’ by reducing bureaucracy,” said the prime minister through a post on X Wednesday.

Anwar chaired the National Investment Council (NIC) meeting number seven for 2024 on Wednesday.

He said the NIC on Wednesday had agreed that the Malaysia Productivity Corporation should continue the implementation of the regulation testing initiative to increase the productivity and efficiency of the delivery of regulations at all levels of government including local authorities.

“This initiative needs to be continued and also expanded based on the excellence shown especially in saving time and cost,” he added.

Anwar said this effort will also increase investments which in turn will increase revenue for local authorities, especially in matters of construction permits and land management through the Industrial Green Lane approach as has been implemented in Kulai, Johor and Kulim, Kedah.

Source: Bernama

PM wants focus on development of manufacturing industrial cluster in KL, Selangor, Negeri Sembilan and Melaka

A total of 6,617 battery-powered electric vehicles (BEVs) were sold in the first half of 2024 (1H2024) marking a significant 112 per cent year-on-year surge in the electric vehicle (EV) market, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

He said 3,117 units of BEVs were sold in 1H2023.

“So I think we should be on track to meet our target of having 20 per cent of our total industry volume (TIV) comprising EVs by 2030.

“This remarkable growth not only signals our consumers’ growing interest, but also demonstrates Malaysians’ general buy-in to contribute to the national and global environmental agendas,” he told reporters after the launch of Stellantis x Leapmotor C10 SUV here today.

Regarding charging stations, Tengku Zafrul said that as of Sept 30, 2024, more than 3,171 charging stations have been installed nationwide, including 813 DC fast chargers.

“We hope to reach our goal of 10,000 charging stations by end-2025,” he added.

He said the automotive industry remains a vital pillar of Malaysia’s economic growth, contributing an impressive four to five per cent to national gross domestic product (GDP) annually, and supporting over 700,000 jobs.

In 2023, Malaysia’s automotive sector recorded a total import value of RM62.14 billion, with RM37.15 billion attributed to the import of automotive parts and components.

On the export side, the sector recorded a total value of RM18.01 billion, with RM13.26 billion from automotive parts exports.

“The significant disparity between imports and exports has led to a trade deficit for the sector,” he noted.

He said that as the world’s fourth-largest automaker and a leading mobility solutions provider, Stellantis’ choice of Malaysia as the first market in South-east Asia for Leapmotor reflects the confidence that global players have in the country’s growing role as a hub for new energy vehicles.

“I was thrilled when Stellantis announced its decision to establish Malaysia as a regional manufacturing hub as part of its ‘Built in Asean for Asean’ strategy, alongside a regional headquarters for Asia Pacific. I am optimistic that this decision will significantly boost our automotive industry, facilitate advanced technology transfer and enhance our exports,” he said.

Stellantis today unveiled its new all-electric SUV, the C10, marking its first major entry into the South-east Asian market with its launch in Malaysia.

The C10 is part of Leapmotor International, a 51:49 joint venture between Stellantis and Leapmotor.

The all-new electric Leapmotor C10 is offered at a limited-time introductory price of RM149,000 on the road, excluding insurance, for bookings made until Nov 30, 2024. After this period, the price will be set at RM159,000.

It is available in four exterior colours — glazed green, pearly white, canopy grey, or Tundra grey — and two interior options: criollo brown (exclusive to glazed green) and midnight aurora.

Source: Bernama

BEV sales surge 112pc in Malaysia, paving the way for 2030 targets, says Tengku Zafrul

Malaysian innovators and manufacturers should seize the opportunity to tap into the immense potential of the global medical devices industry, which is projected to reach nearly US$800 billion by 2030, says Science, Technology and Innovation (MOSTI) Minister Chang Lih Kang.

Chang noted that Malaysia had many high-quality products and innovators in the medical devices sector, with the government continuously encouraging and supporting industry players in research and development (R&D) and commercialisation efforts.

“The market is vast, and we have plenty of room for success. To support R&D, of course, not limited to the medical devices industry, MOSTI offers various funding facilities, grants, matching grants, and equity where we invest in relevant startups,” he said.

Chang said this to reporters after officiating the soft launch of INNOMed: Innovation Pitching Powered by PERANTIM, a key event in the International Medical Device Exhibition & Conference (IMDEC) 2024.

Also present were Medical Device Authority (MDA) chief executive officer Dr P. Muralitharan, Malaysia Medical Devices Manufacturers Association (PERANTIM) president Johari Abu Kasim, and organising chairman of INNOMed, Dr Hyzan Mohd Yusof.

Earlier in his speech, Chang said that under Malaysia’s New Industrial Master Plan (NIMP) 2030, the government aimed to foster synergies between the manufacturing and engineering sectors and the medical devices sector. This includes creating advanced inspection tools, solutions for imaging and endoscopy, implantable devices, and minimally invasive surgical tools.

Meanwhile, Muralitharan told Bernama that, according to figures from the Department of Statistics Malaysia (DOSM), Malaysia’s total trade in medical devices, valued at RM25.61 billion from January to July this year, increased by 23.5 per cent compared to the same period in 2023 (RM20.74 billion).

He added that the export of medical devices was valued at RM20.15 billion, an increase of 25.7 per cent compared to RM16.02 billion in 2023.

In his speech, Dr Hyzan said that medical device innovation presented an opportunity to improve healthcare while boosting the economy, with the industry projected to reach nearly US$2 billion by 2025, making it one of the fastest-growing sectors.

“By focusing on innovation, we can create high-skilled jobs, reduce our dependence on imported technologies, and position Malaysia as a global leader. Last year, we spent US$5 billion on medical devices, with 95 per cent being imports. Our goal is to reduce this to 50 per cent within five years,” he said.

He also emphasised that close collaboration among universities, innovators, manufacturers, clinicians, and government agencies was key to ensuring that ideas and research transitioned smoothly from laboratories to clinical applications and into the hands of healthcare providers.

INNOMed, themed “Unleashing the Power of Medical Technology: Shaping the Future of Healthcare,“ is organised by the MDA and will take place from Dec 10 to 12 at the Kuala Lumpur Convention Centre (KLCC).

Source: Bernama

Malaysia should seize opportunity in global medical devices market – Chang

KEDAH-based electronics manufacturing services (EMS) provider Aurelius Technologies Bhd is riding a wave of robust orders and gearing up for a potentially stronger financial performance this year, driven by its strategic focus on wireless communication technology and operational efficiency.

For its fiscal first half ended June 30, 2024 (1HFY2024), the company reported a profit of RM31.76 million on revenue of RM277.96 million, placing itself in a strong position to improve on last year’s results.

“Achieving good financial results is not just about the numbers. We also place a lot of emphasis on our strategic direction and operational effectiveness,” ATech executive director and CEO Loh Hock Chiang tells The Edge in an interview at the company’s headquarters in Kulim Hi-Tech Park.

“This year’s performance clearly reflects the successful execution of the initial stages of our core strategies. We are not just aiming to meet expectations but also striving to consistently exceed them and set new benchmarks.”

After a change in its financial year end from Jan 31 to Dec 31, ATech only had 11 months in its new financial year ended Dec 31, 2023 (FY2023). Over that period, the company made a profit of RM38.24 million on turnover of RM385.55 million.

According to Loh, ATech firmly believes in the potential of wireless communication technology and, despite the scepticism in some quarters, the company remains confident that wireless solutions will eventually become central to future connectivity needs.

“In today’s world, connectivity is essential for personal, business and security purposes. As communication complexity increases, so too the need for advanced wireless solutions. Our focus on wireless technology positions us well to meet this growing demand for connectivity solutions across industries,” Loh explains.

ATech is an investment holding company whose subsidiary BCM Electronics Corp Sdn Bhd is principally an EMS firm focused on industrial electronics products. In 2019, ATech expanded into the manufacture of semiconductor components in the form of multi-component integrated circuit (IC) for Internet of Things (IoT) applications.

It is one of the first companies in Malaysia to manufacture fifth generation (5G) communication modules and related applications for global clients.

ATech’s customer portfolio currently boasts more than 10 clients, including a global communication solutions giant. ATech  is one of three main contract manufacturers in the world producing top-tier communication devices used in critical public safety systems globally.

Loh, 59, is a chartered accountant with Chartered Accountants Australia and New Zealand and has held various positions, including chief financial officer (CFO) and deputy CEO of Comintel Corp Bhd, where his last designation was executive director, before he left in January 2018.

He assumed his current position of executive director of BCM in 2018 and was appointed group CFO of ATech in March 2021. Following the passing of ATech co-founder and former CEO Lee Chong Yeow in January 2022 — a month after the company was listed on Bursa Malaysia in December 2021 — Loh was made interim CEO before assuming the role of group CEO about seven months later in August.

As at April 9 this year, Loh owned a direct stake of 7.75% in ATech. Together with the late Lee, he had held an indirect stake of 39.4% in the company through Main Stream Holdings Sdn Bhd (20.04%) and Main Stream Ltd (19.36%).

Lee’s daughter Jamie Lee Hwe Ping currently sits on the board of ATech as non-executive director. Hwe Ping’s younger brother Jonathan Lee Ming Chian, who serves as her alternate director, is the administrator of their father’s estate. They each have a direct stake of 1.94% in the company.

ATech executive director and CFO Tan Chong Hin is a substantial shareholder of the company with 6.17% equity interest via Pixel Advisers Pte Ltd.

The company’s latest annual report shows that its top 30 largest shareholders include AIA Bhd and AIA Public Takaful Bhd, three Kenanga funds, Etiqa Life Insurance Bhd and Lembaga Tabung Angkatan Tentera (LTAT).

Interestingly in June, the Employees Provident Fund (EPF) and Abrdn plc emerged as substantial shareholders of ATech, with 7.87% and 7.06% equity interest respectively.

This came in the same month that ATech completed a private placement that raised about RM132.01 million at an issue price of RM3.35 per share. Some RM55 million of the gross proceeds was earmarked for the construction of the company’s new integrated manufacturing plant.

Year to date, the share price of Main Market-listed ATech had gained 14% to close at RM2.94 last Thursday, which translated into a market capitalisation of RM1.27 billion. The counter is trading at a historical price-earnings ratio (PER) of 25 times.

More opportunities coming from automotive sector

Looking ahead, ATech is set to expand its offerings in mobility and communication products, many of which are driven by IoT solutions, especially in the motor vehicle industry.

Loh says ATech’s IoT portfolio includes vehicle telematics, electric vehicle (EV) management systems, energy management and smart asset monitoring devices. A key application is the use of vehicle telematics by automotive insurers in the US and Europe to monitor customer behaviour, he notes.

With the global rollout of 5G infrastructure, demand for 5G-related IoT solutions is expected to surge, creating more opportunities for ATech.

Loh points out that the company’s new automotive segment is gaining traction, particularly with communication modules and monitoring devices for insulation and tyre pressure. “Going forward, we believe more 5G and IoT products will be infused into automotive applications,” he says.

An important aspect of ATech’s growth strategy is its ongoing expansion in Kulim, where it currently operates three plants. The company is in the midst of building a fourth facility, dubbed P5, which is expected to be completed by the end of the year.

“We plan to double the built-up space of our premises to 520,000 sq ft from 260,000 sq ft currently via our expansion project on our 301,874 sq ft freehold industrial land with an investment of RM13.6 million,” says Loh.

P5 will be fitted with a clean room facility and is expected to be fully utilised within two to three years. Loh expects the new facility to double ATech’s production and warehousing capacity as well as its profitability. “Theoretically, our production and warehousing capacity should double by then, as should our profitability.”

Wireless technology will spearhead the utilisation of P5, with increasing focus on 5G products for automotive applications such as autonomous driving and in-vehicle infotainment, he reiterates.

Moreover, the global shift towards the China+1 manufacturing strategy has created significant opportunities for Malaysia as a preferred hub for multinational corporations (MNCs). “We are continuously exploring partnerships or participation in the supply chain to support the localisation efforts of these MNCs,” says Loh.

To mitigate the effects of market fluctuations, particularly due to the tech and semiconductor cycles, ATech has a diversified customer base, spanning industries such as communication, energy, automotive, financial technology and agriculture.

“Engaging with a diverse range of customers across different industries provides us with valuable insights and stability,” he says, adding that this diversification helps the company maintain a stable revenue stream and ensure that no single market trend disproportionately impacts its business.

“We like to maintain our priority to continuously build on our many years of cumulative knowledge and ability to serve different sectors with varying technology demands. Of course, there are still many more new customers from new industries, which we are actively working on to further diversify our customer portfolio.”

Although the semiconductor industry has been a magnet for high revenue opportunities, Loh points out the cyclical and capital-intensive nature of the business.

“We are often asked whether we are investing in the advanced semiconductor industry as it is more glamorous and high-end than the highly competitive EMS sector. We are attracted to the former’s high revenue but it can be cyclical and volatile and its extensive facilities and capital commitments are overwhelming,” he observes.

Instead of venturing into the semiconductor space, ATech remains focused on adding higher-margin products to its catalogue and driving operational efficiency, which the company believes provides it with a competitive edge on the global stage.

“We provide additional value to our customers by offering cost-effective solutions that are comprehensive, agile, faster and more efficient, facilitating cost-down initiatives for customers,” says Loh.

ATech’s net profit margin improved from 6% in the financial year ended Jan 31, 2022, to 7.7% in the financial year ended Jan 31, 2023. It improved further to 9.9% in the financial year ended Dec 31, 2023, and to 11.4% in 1HFY2024.

By comparison, the net margins of V.S. Industry Bhd and SKP Resources Bhd were 4% and 5% respectively in their latest full financial year. Meanwhile, the net margins of Cape EMS Bhd and Betamek Bhd stood at 8% and 9% respectively. 

Source: The Edge Malaysia

Aurelius Technologies stays wired to wireless solutions for growth

The Melaka state government is committed to positioning the state as a leading hub for electric vehicle (EV) production in Malaysia, in line with Sustainable Development Goal 13 (SDG13), which emphasises urgent action to combat climate change and its impacts.

Chief Minister Datuk Seri Ab Rauf Yusoh said the use of EVs is crucial in supporting efforts to promote low-carbon mobility practices among Malaysians, aligning with the government’s aspiration to achieve a carbon-neutral country by 2050.

“It is also a strategic and comprehensive initiative to address climate change and promote the development of renewable energy,” he told reporters after launching the Lytron Malaysia Electric Motorcycle at Encore, Kota Laksamana, here on Monday.

Ab Rauf highlighted that the opening of the first Lytron brand electric motorcycle plant in Ayer Keroh in 2022 aligns with the state’s SDG 13 efforts.

He said the factory, which operates under the supervision of Lytron Sdn Bhd and managed by M Electric Vehicle Sdn Bhd (MEVB), is involved in the production and assembly of electric motorcycles, as well as the marketing and distribution of Lytron electric motorcycles nationwide.

“So far, I understand that 1,000 units of Lytron electric motorcycles will be marketed in Melaka first for the local market, following approval from the Ministry of Investment, Trade, and Industry.

“We have asked Zhejiang Luyuan Electric Vehicle Co Ltd from China to further expand their investment in Melaka through its technology partner, MEVB, to further advance electric technology development in Malaysia,” he said.

Ab Rauf added that the electric motorcycle plant is also expected to create job opportunities for graduates of technical and vocational education and training courses from higher education institutions in the state.

Source: Bernama

Chief minister: Melaka poised to become EV manufacturing hub

For three decades, Dpstar focused on manufacturing heaters, sensors and thermocouples for local businesses. However, when the market was flooded with cheaper products from China, Ken Lim, the chief executive officer of Dpstar Group, saw growing demand for new technologies like data centres, and he swiftly pivoted the business in a new direction.

Before, Dpstar’s local clients leaned towards traditional sectors like steel and ceramic, which only a few years ago began to decline due to cheaper supplies from large exporters.

To overcome this challenge, Lim had to understand the direction of industry growth and digitalisation while moving business alongside it instead of against it. 

He did this by focusing on areas of innovation at the front end of use cases, while “looking at global trends and development, and where those application use cases mostly fit for us and industries that we are in”.

Through this, Lim saw that the focus was shifting towards growth in electronics, with more projects and investments coming into areas like semiconductors and data centres. 

This growth came from the US-China trade war, leading to many US companies seeking suppliers away from China and into the Southeast Asian market, which the local government was quick to capitalise on, implementing initiatives like the Malaysian Investment Development Authority committee.

“The [Malaysian] government is moving more into this direction, with a lot of investments coming from the local industries shifting their operation zone to Malaysia,” says Lim.

With this in mind, Dpstar pivoted towards digitalisation by developing their automation products in areas their business already had a presence in while adapting to new digital trends in government-focused sectors like data centres, semiconductors and life sciences.

This was not easy and something Lim says Dpstar was only able to achieve thanks to its partners and collaborators with stakeholders and industry players, such as contractors, system integrators and building companies.

“There’s an everyday kind of engagement [with these partners] where we talk about design: what works for them, what are the bottlenecks, what are the pain points, where can our products best serve them, [and] where can they optimise costs?” says Lim.

Thanks to these experiences and insights, Dpstar’s products and services have attracted not only local clients but overseas as well, securing several globally competitive contracts and partnerships. 

One example was a UK aeroplane company that adopted Dpstar’s thermal solutions and a US data centre operator that took a contract for thermal sensors in data centres. Lim was unable to share the names of the two companies.

In the latter case, the data centre operator used Dpstar’s leak detection solutions alongside its critical environment monitoring solutions, like temperature sensors, among other sensors — all solutions the company developed since its shift and digitalisation.

Investing in talent as much as technology

Outside of adjusting its business strategy to ride on the global megatrends and digitalisation, another important yet overlooked aspect Lim focused on was nurturing the company’s talent for the present and possible future. 

To him, ensuring employees are adequately trained, remunerated, treated fairly and have the best chance for industry growth is equally important to the business’ pivot, adapting the workforce alongside operations.

An example of this is Dpstar’s plans with the government to build the first cleanroom test facility in Malaysia for upscaling, training and developing local talent. A cleanroom is where electronics are manufactured with minimal dust and other contaminants in the air.

“[It is] a small-scale [facility] that enables students from universities, colleges, industrial professionals, end users, engineers and technicians to come and learn in terms of how they can operate [machines in this cleanroom], how they can manage [and] think about the best practices [in operating it],” says Lim.

This was made in response to how the Malaysian semiconductor industry focuses a lot on addressing the back-end side, like testing or assembly, but not on the front end. This also lines up with Malaysia’s initiative to build up the local ecosystem and talent pool. 

These collaborative efforts are key to Dpstar’s strategy in digitalisation, as it ensures Lim’s team knows the technologies available and how to incorporate them into the company’s operations. 

Lim recognises that other businesses are reluctant to follow this approach, attributing this towards a focus on the return on investment, and he urges other local businesses to look beyond this.

With the cleanroom, for example, Lim sees it more as a corporate social responsibility — upskilling workers, enriching the talent pool, and preparing them for a future where advanced technologies become more democratised.

Source: The Edge Malaysia

Adapting to the market digitalisation shift

Malaysia has immense opportunities and significant responsibilities to capitalise on the rise of electric vehicles, fuelled by the global push towards decarbonisation.

Ministry of Investment, Trade and Industry (Miti) secretary-general Datuk Hairil Yahri Yaacob said industry-developed guidelines for EVs prioritise safety and environmental responsibility, helping the country align with global standards in sustainability while protecting communities and the environment.

Launching the EV and Battery Management Guideline (EVBM Guideline) during the International Greentech & Eco Products Exhibition & Conference Malaysia 2024 (IGEM 2024) on Friday, Hairil said the framework reflects Malaysia’s commitment to advancing green technology and sustainable practices.

He said that with contributions from industry representatives, regulatory bodies and government agencies, the comprehensive framework covers the entire lifecycle of EV batteries – from acquisition, usage, and maintenance to final disposal and recycling.

“The EVBM Guideline represents a cornerstone of our collective efforts to create a robust, safe and sustainable framework for EV and battery management. This is not just a set of rules but a blueprint for industry-led self-regulation, fostering a culture of responsibility, safety and environmental stewardship.

“By outlining best practices for the handling and transportation, particularly EV lithium batteries, we ensure the prevention of fire and explosion hazards. This approach also minimises environmental impact,” Hairil told delegates at the EVBM Guideline’s launch.

He recalled that the idea of having a guideline for managing EVs and batteries was mooted during the Miti Dialogue last year, reflecting the ministry’s focus on addressing the EV industry’s issues and concerns.

The idea of for a guideline was presented to the National EV Steering Committee chaired by Deputy Prime Minister Datuk Seri Fadillah Yusof. The committee recognised the urgent need to address the risks associated with lithium-ion battery handling.

Following the decision, Northport (Malaysia) Bhd, in a strategic partnership with Miti, Malaysia Productivity Corporation and Malaysian Automotive, Robotics and IoT Institute, volunteered to develop the guideline under the principle of self-regulation.

“The guideline aims to ensure public safety, environmental protection and the sustainability of Malaysia’s EV ecosystem. By prioritising safe handling, transportation and disposal of EV batteries, we are not only protecting the environment but also boosting productivity by creating a more efficient and sustainable framework for all stakeholders,” Hairil said.

The initiative is a result of collaborative efforts across the entire industry, he said, adding that it is a self-regulation approach led by the industry, where active business initiatives take centre stage.

“What is crucial here is that we have incorporated valuable input and feedback from businesses, consumers, and regulators. This ensures that the guidelines are comprehensive, effective, and reflective of the needs and concerns of all stakeholders involved.”

Hairil said the EVBM Guideline is designed to evolve with the industry. Miti, he added, looks forward to continuous collaboration with the private sector to ensure Malaysia remains a sustainable mobility leader.

Source: The Sun

Launch of EV, battery management guideline reflects Malaysia’s commitment to green mobility

The Investment, Trade and Industry Ministry (MITI) will launch an anti-dumping duty investigation into steel wire rods originating from or exported by China, Indonesia, and Vietnam. 

In a statement today, MITI said the probe follows a petition filed by Southern Steel Bhd, a domestic producer, which alleges that imports from the countries are being sold at prices lower than domestic products.

Southern Steel also claims that the dumped imports have increased significantly causing material injury to the domestic industry, the ministry said.

The investigation was initiated under Section 20 of the Countervailing & Anti-Dumping Duties Act 1993 and Regulation 7 of the Countervailing & Anti-Dumping Duties Regulations 1994.

“A preliminary determination will be made within 120 days from the initiation date. If the preliminary determination is affirmative, the government will impose a provisional anti-dumping duty at the necessary rate to prevent further injury to the domestic industry,” it said.

MITI will distribute questionnaires and relevant documents to interested parties, including importers, foreign exporters and producers from the alleged countries, their respective governments and relevant trade associations.

Other interested parties wishing to participate in the investigation must request the questionnaires in writing to MITI by Oct 25 and submit their views, responses, and supporting evidence by Nov 9.

Source: Bernama

Miti launces anti-dumping duty probe on steel wire rods from China, Indonesia, Vietnam

More China-based companies have expressed interest in being off-takers to set up manufacturing facilities within UEM Sunrise Bhd’s Renewable Energy (RE) Industrial Park in Gerbang Nusajaya, Iskandar Puteri, Johor.

These companies include China Machinery Engineering Wuxi (CMEC Wuxi) Co Ltd — the manufacturing arm of CMEC, Wuxi Longmax Technology Co Ltd (Longmax), Gotion, Hopewind and Huasun.

According to a press statement issued by UEM Sunrise on Thursday, CMEC Wuxi and Longmax are already in the process of setting up local manufacturing operations here, as well as establishing solar module and combiner box production facilities within the RE Industrial Park.

Meanwhile, UEM Sunrise is in discussions with Gotion, Hopewind and Huasun to invest in the industrial park and serve as RE off-takers here.

Once finalised, together with ITRAMAS Corporation Sdn Bhd (ITRAMAS) and CMEC, these five companies will occupy a combined land size of 40 acres in the RE Industrial Park as the RE off-takers.

This announcement was made on Thursday during an agreement exchange ceremony between UEM Sunrise, ITRAMAS Corporation Sdn Bhd (ITRAMAS) and CMEC. The three parties have signed a memorandum of understanding (MOU) to set up their RE facilities in the industrial park in Beijing back in May 2024. 

“We are committed to fostering an environment that promotes seamless growth, innovation, and excellence in local manufacturing. As we establish Gerbang Nusajaya as a renewable energy hub, UEM Sunrise looks forward to providing the infrastructure, resources, and bring the collaborative spirit required to bring form to this vision in a responsible and sustainable manner,” said UEM Sunrise CEO Sufian Abdullah in the statement.

The RE Industrial Park is part of the one gigawatt hybrid solar power plant project, a flagship catalytic project under Malaysia’s National Energy Transition Roadmap (NETR) to be undertaken by UEM Group through its wholly-owned subsidiary and green industries arm, UEM Lestra Bhd. This project is expected to play a pivotal role in Malaysia’s renewable energy infrastructure, fostering local and regional market growth and positioning Malaysia as a renewable energy hub in Asean.

Source: The Edge Malaysia

More Chinese companies looking to set up facilities in Johor’s RE Industrial Park

Negeri Sembilan has strong potential to emerge as one of Malaysia’s foremost semiconductor hubs with comprehensive planning and decisive action, Menteri Besar Datuk Seri Aminuddin Harun said.

He highlighted the state’s strategic location near the Klang Valley and major national gateways, such as Kuala Lumpur International Airport (KLIA) and Port Klang, which offer key logistical advantages.

Furthermore, Negeri Sembilan boasts robust infrastructure, making it an attractive destination for business, he added.

“We have long-established major semiconductor companies here, such as On Semiconductor, TDK-Lambda, Samsung, and Nexperia, among others. This demonstrates the trust of leading global firms in the semiconductor sector to invest in our country, especially in Negeri Sembilan.

“I am confident that we will attract more major semiconductor companies to invest here in the future,” he said at the groundbreaking ceremony for the Negeri Sembilan Semiconductor Valley (NSSV) here today.

Aminuddin noted that NSSV is designed to support technology development focused on the semiconductor industry in Negeri Sembilan.

He said the initiative aligns with the Malaysian Government’s National Semiconductor Strategy (NSS), the New Industrial Master Plan (NIMP) 2030, and the National Energy Transition Roadmap (NETR).

The development of NSSV, he added, is expected to catalyse an inclusive semiconductor ecosystem by integrating small and medium enterprises (SMEs) into the supply chain, thus stimulating growth across the industry in the state.

Aminuddin also emphasised that the strategy aligns with the growth of Malaysia’s semiconductor industry, which has expanded rapidly this year, ensuring the country remains competitive globally.

“This sector is crucial to the global supply chain, driven by rising chip demand and advancements in artificial intelligence (AI), which will continue to fuel semiconductor industry growth in the years ahead,” he said.

Source: Bernama

Negeri Sembilan Set To Become Major Malaysian Semiconductor Hub -Aminuddin

Malaysia’s impressive economic growth is not solely driven by foreign direct investments (FDIs) but also by domestic investments, said Prime Minister Datuk Seri Anwar Ibrahim.

Speaking at the Associated Chinese Chambers of Commerce and Industry’s (ACCCIM) 78th annual general meeting here on Sunday, he attributed the strong domestic investments momentum to the growing interest, confidence, and commitment shown by domestic players.

“Domestic investments have increased phenomenally, so I thank you (the private sector) for that.

“Following that, if there is an impressive domestic investment [momentum], then I should not tax you (private sector) too highly,” Anwar quipped.

He said the private sector, including businesses, small and medium-sized enterprises (SMEs), and micro SMEs, would be given special focus in the upcoming Budget 2025.

Anwar, who is also finance minister, is scheduled to table the budget in Parliament this coming Friday (Oct 18).

Source: Bernama

PM: There have been robust domestic investments too, not just FDIs

The domestic semiconductor sector remains on track for recovery despite facing short-term headwinds, particularly due to unfavourable foreign exchange (forex) rates, with the ringgit strengthening against the US dollar.

According to RHB Research, the new semiconductor upcycle is in its early stages, citing gradual increase in demand.

“We believe sector demand is showing early phases of recovery, and expect it to gain pace into 2025 with stronger growth visibility,” the brokerage wrote in its report yesterday.

However, it conceded that sector headwinds on unfavourable forex could temporarily derail the recovery, with earnings of semiconductor players likely to be reduced by 1% to 3% for every 1% strengthening of the ringgit against the US dollar.

“Still, it may be partially hedged by their US dollar purchases – typically 40% to 50% of cost of goods sold (for outsourced semiconductor assembly and test or Osat) and 20% to 40% (equipment makers and those with foreign borrowings),” RHB Research said.

“We believe the primary earnings drivers are volume loading and margin compression stemming from negative forex movements that can be passed on to customers via renegotiation, revised quotation, and engineering and process efficiency,” it added. RHB Research maintained its “overweight” stance on the technology sector.

“We advocate investors with a medium-term view to be nimble and build positions amid steep share price corrections to attractive levels,” it said.

RHB Research noted that the Semiconductor Industry Association had recently revised its forecast upward, projecting sales to reach US$611.2bil this year, reflecting a 16% increase with a further 12.5% growth anticipated in 2025.

“This uneven recovery is currently supported by the logic and memory chips, thanks to the boom in artificial intelligence (AI)-related servers and equipment. Going into 2025, a broad-base recovery with growth from all segments is expected,” it said.

“Also, early recovery indications in the automated test equipment space, along with traction in the front-end semiconductor space, bolsters our belief for a sustained sector recovery that is expected to gain pace into 2025 – where the replacement cycle intensifies,” it added.

While the second-quarter ended June 30, 2024 results for the sector were largely a miss, the aggregate core profit after tax and minority interest sustained the year-on-year growth at 11.6% on stronger revenue amid the recovery of the semiconductor space, RHB Research noted.

RHB Research noted that the sector’s valuation was attractive, at only 20-22 times forward earnings, which is around its five-year historical mean.

The brokerage’s top picks are Malaysian Pacific Industries Bhd, Pentamaster Corp Bhd and CTOS Digital Bhd.

Meanwhile, CIMB Research also reiterated its “overweight” stance on the Malaysian technology sector. It recently hosted a panel session on Malaysia’s National Semiconductor Strategy (NSS) policy, featuring expert speakers from across the Malaysian semiconductor value chain.

The discussion covered government initiatives, such as potential RM25bil in fiscal support, aimed at boosting local semiconductor manufacturing, research and development, and advanced packaging capabilities.

CIMB Research noted that panelists at the event emphasised industry collaboration, technology transfer, and the development of a robust talent pipeline to strengthen Malaysia’s semiconductor ecosystem.

“The panellists agreed on the importance of local back-end Osat players remaining competitive and reinvesting their profits to develop advanced packaging platforms.”

Source: The Star

Chip sector upcycle intact

Survey: Improved business performance in the third quarter a positive sign

The semiconductor industry will continue to see growth for the next few months and recover on a gradual basis, Malaysian Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai says.

MSIA’S recent quarterly pulse survey found 46% of respondent companies within the electrical and electronics (E&E) and semiconductor sector had seen an improved business performance in the third quarter (3Q24).

This was up by 39% as compared to 2Q24, signalling a positive trajectory despite slightly moderated optimism across the industry.

A total of 53% of companies are optimistic about 4Q24, indicating continued positive sentiment although this is slightly lower compared to the 60% optimism reported in 2Q24 for 3Q24.

For the next 12 months, 63% of companies expressed an optimistic outlook, a slight decline from the 72% optimism expressed in 2Q24.

Commenting on the performance, Wong said the performance actually varies depending on which business companies are involved in. “For those who are involved in artificial intelligence (AI), we actually see growth in their performance.

“However, for those in other industries (within the sector), you can see that they are recovering but not as good as expected,” he told Starbiz 7.

Supporting this claim, Maybank Investment Bank (Maybank IB) Research stated the sector sales would be increasingly driven by emerging sectors such as AI, high-performing computing, data centres and electric vehicles.

The brokerage said total semiconductor sales would continue to be dominated by consumer electronics such as personal computers and smartphones.

Earlier this year, it was reported that the semiconductor sector is poised for recovery, especially in the second half of 2024 (2H24).

Wong reiterated that the recovery will still happen, however, at a more gradual pace.

He shared that month-onmonth, the industry has seen a positive trend and over the next few months, the industry will continue to see growth.

On the matter of the investment outlook, the survey found 52% of companies are reported to be optimistic for 4Q24 – a marginal decline from 58% in 2Q24.

Companies are also expected to see a slight reduction in hiring engineers and technicians in 4Q24 by 71%. MSIA said talent shortages and market competition continue to be the primary challenge for the industry.

This is in addition to challenges such as cost pressures and supply chain disruptions, as well as a more pronounced inflation.

Hence, in order for these companies and the industry to thrive, Wong said issues on the talent shortage must be addressed, infrastructure must be enhanced and competitiveness has to be strengthened through strategic investments and government support.

“With the right policies in place, Malaysia’s E&E sector will continue to be a major contributor to our nation’s economic growth,” he said, adding the 2Q24 survey results reflect the resilience and adaptability of Malaysia’s semiconductor industry.

“For those who are involved in artificial intelligence, we actually see growth in their performance.” Datuk Seri Wong Siew Hai.

Source: The Star

Chip sector in growth phase

According to the Malaysia Semiconductor Industry Association (MSIA), 53% of companies in the electrical and electronics (E&E) and semiconductor sectors are optimistic about their business outlook for the fourth quarter of 2024 (4Q2024).

The association’s MSIA E&E/ Semiconductor Quarterly Pulse Survey for 3Q’s outlook indicated a continued positive sentiment, although it is lower compared to the 60% optimism reported in 2Q for 3Q.

“For the next 12 months, 63% of companies expressed an optimistic outlook, a slight decline from the 72% optimism expressed in 2Q,” MSIA said in a statement on Friday. 

The report stated that 52% of companies are optimistic about their investment outlook for 4Q, which represents a marginal decline from 58% in 2Q.

It was also stated that 71% of companies are hiring engineers and technicians in 4Q, reflecting strong hiring activity despite a slight reduction from the 85% hiring sentiment seen in 2Q.

The association said 46% of companies reported improved business performance in 3Q compared to 2Q, up from 39% in the previous quarter, as this signals a positive trajectory despite slightly moderated optimism across the industry. 

Commenting on the 3Q survey results, MSIA president Datuk Seri Wong Siew Hai said it reflects the resilience and adaptability of Malaysia’s semiconductor industry, despite global uncertainties and emerging challenges, as companies remain committed to growth, innovation, and investment.

“To continue thriving, we must address talent shortages, enhance our infrastructure, and strengthen our competitiveness through strategic investments and government support.

“With the right policies in place, Malaysia’s E&E sector will continue to be a major contributor to our nation’s economic growth,” he said. 

Meanwhile, MSIA noted that the report highlights the recommendations by respondents to the government for Budget 2025.

Respondents suggest capital expenditure (capex) rebates, grants, and funding to grow local champions, tax incentives and reductions for E&E companies, and government grants or subsidies for innovation and technology adoption.

Furthermore, they recommend the government to provide work/employment passes/permits for foreign talents, such as scientists, engineers, and data scientists, and incentives for companies to adopt digitalisation and automation in manufacturing.

Source: Bernama

53% of E&E, semicon firms optimistic on 4Q2024 biz outlook — association

Malaysia’s semiconductor industry must diversify and go beyond its heavy reliance on multinational corporations and manufacturing capabilities to secure its position in the global market, especially in the face of potential disruptions, said Economy Minister Rafizi Ramli.

He emphasised the need for a more dynamic ecosystem that includes startups, innovative tech pioneers, and a blend of venture capital and private equity (PE) to drive growth.

“It is obvious that Malaysia sits very attractively in the global semiconductor and artificial intelligence scene.

“As much as this is good news, this position is not guaranteed, it’s a very competitive and dynamic environment, and with the rise of de-risking and China+1 strategies, the landscape has fundamentally shifted,” he said in his speech before officiating the Malaysia Semiconductor Recruitment Day 2024 here today.

Rafizi said in recent years, the challenge has been shifting up the value chain from backend processes to front-end operations — transitioning from assembly and testing to designing chips.

“When we talk about integrated circuit (IC) design, it’s about innovation, technology, research and development.

“Therefore, it is very much a startup environment which means that you require different kinds of people, different types of risk profiles and it requires different kinds of funding and business models. That’s why we need venture capital and PE firms,” he said.

On the same note, he said the industry’s demand for engineers will continue to grow.

“I think they estimated that we need around 60,000 engineers and that is why government departments, agencies, private sectors and the universities are working together to ensure we can meet this demand,” he said.

He added that Malaysia has a sizeable presence in the electrical and electronic sector, which contributes about eight per cent to the nation’s gross domestic product, or roughly RM143 billion annually, supported by decades of efforts in shoring up its position to be a key player within the global supply chain.

Meanwhile, Rafizi was happy to note that within just five months, seven firms have joined the IC Design Park in Puchong, creating approximately 600 jobs in front-end chip design, with plans to attract 15 more foreign companies that have shown strong interest in the park.

“If we can sustain this momentum, we should be able to meet the target of onboarding 20,000 high-skilled professionals,” he said.

The Semiconductor Recruitment Day 2024 is organised by the Selangor Information Technology and Digital Economy Corporation (Sidec) in collaboration with Malaysia Advanced Semiconductor Academy.

With 25 prominent companies participating and more than 2,000 graduates registered, the recruitment day is designed to connect job seekers with top industry players.

Key participating companies include NXP, Renesas, Infineon, Inari Amertron, Neways, Vitrox, STMicroelectronics, HCLTech, Chipsbank, Betterlife, Oppstar, Synopsys, Skyechip, and AppAsia.

These companies are actively recruiting for roles such as RTL Design Engineer, Design Verification Engineer, Physical Design Engineer, Analog Circuit Design Engineer, and Layout Design Engineer, with a starting salary of RM5,000 for entry-level engineers.

Source: Bernama

Malaysia’s semiconductor industry must diversify to sustain global position

Malaysia’s medical technology (medtech) industry has witnessed impressive growth, reaffirming the country’s position as a key player in the global medtech landscape, said the Malaysian Investment Development Authority’s (Mida) and Association of Malaysian Medical Industries (AMMI).

In a joint statement today, Mida CEO Sikh Shamsul Ibrahim Sikh Abdul Majid said that it is clear that Malaysian professionals are not only masters of their technical craft but also driven by a commitment to quality and compliance with global standards.

“This potent combination of talent and government support, as seen in initiatives such as the prioritisation of the medical device sector in the Twelfth Malaysia Plan and the New Industrial Master Plan 2030, has propelled Malaysia to the forefront of medtech innovation.

“Mida is dedicated to supporting the sector’s continued expansion through strategic partnerships and proactive measures, and we’re excited to see what the future holds for this dynamic industry,” he said.

Sikh Shamsul said this after the release of AMMI’s “Medical Device Industry Status and Outlook 2024/2025 Report: Malaysia, A Medtech Success Story” at the Malaysia Medtech Industry Summit 2024 in Penang today.

Meanwhile, AMMI chairman Andy Lee said Malaysia boasts the largest medical device market in Southeast Asia, with its market size reaching RM10.6 billion in 2023 and ranked among the top ten markets in Asia.

“It extends far beyond traditional manufacturing, offering robust capabilities in sterilisation, biocompatibility testing, packaging and conformity assessment,” he said.

Lee also said Malaysia hosts the largest sterilisation capacity in Southeast Asia, providing the most comprehensive range of sterilisation technologies in the region, including ethylene oxide, gamma and electron beam sterilisation.

“Furthermore, Malaysia stands as the first country in Southeast Asia to establish an X-ray sterilisation facility. Driven by its sophisticated infrastructure, adherence to international standards, and strong government support, Malaysia is well-positioned to remain competitive on the global stage,” he added.

ADVERTISEMENT

The AMMI report revealed that respondents to a survey said they plan to invest a collective amount of RM2.7 billion in expansion, RM927 million in new products and RM162 million in new research and development/centre of excellence and Industry 4.0.

The report also highlighted that collectively, AMMI sourced RM4.1 billion of raw materials and RM2.5 billion of services from local suppliers and small and medium-sized enterprises. “Additionally, contracts worth RM1.4 billion were outsourced to local suppliers, with 95% directed toward finished products,” the report said.

Source: Bernama

Malaysia’s medical technology sector poised for high-value growth

The palm oil biomass industry offers a substantial opportunity to produce value-added products and renewable energy, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.

Last year, he said the country produced 92.37 million tonnes of biomass, including 25.75 million tonnes generated from milling and plantation activities in Sabah alone. He added that the figure could rise further with the inclusion of palm oil mill effluents.

“The biomass from the palm oil industry has great potential in producing value-added products and renewable energy.

“The biomass and bioenergy sectors are expected to be the catalyst for our nation’s economy while ensuring a sustainable future,” he said during the 2024 National Seminar on palm oil milling, refining, environment and quality at a hotel here. His speech was read by his deputy Datuk Chan Foong Hin.

Johari added that several initiatives and policies, such as the National Agricommodity Policy 2021-2030 (DAKN 2030) and the National Biomass Action Plan 2023-2030, have been implemented to support this effort.

With the National Energy Transition Roadmap, he said that the palm oil industry through biomass production was also playing a pivotal role in reducing greenhouse gas emissions and supporting Malaysia’s aspiration to achieve net-zero emissions by 2050.

Meanwhile, during an interview, Chan said Sabah used to be the second-largest in terms of oil palm acreage and last year it had the highest oil palm extraction rate in the country.

Sarawak and Sabah recorded the largest oil palm plantation areas, with 1.62 and 1.51 million hectares respectively, together making up over 55 per cent of the country’s total.

As of August 2024, 450 palm oil mills nationwide have a fresh fruit bunch (FFB) processing capacity of 123 million tonnes annually.

Sabah leads with 128 mills, capable of processing 34.7 million tonnes annually. In 2023, 95 million tonnes of FFB were processed, with a national oil extraction rate (OER) of 19.86 per cent. Sabah achieved the highest OER at 20.4 per cent, processing 22.4 million tonnes of FFB.

“But we still face the issue of lack of downstream process here. For the time being, we don’t even have a commercial-size oleochemical plant in Sabah yet.

“When I visited the booths here, I was made to understand how to capture the biogas generated by the palm oil mills, and then to process it to become biomethane.

“And the biomethane can replace diesel for some of the factories,” he said, adding that this was part of the ongoing efforts in tapping Sabah’s biomass sector.

Source: NST

Palm oil biomass industry has vast potential, says Johari

To attract and support more Integrated Circuit (IC) design players establishing and expanding their operations in Penang, the state government yesterday launched incentive package schemes, offering a subsidy of up to RM2 million annually over three years.

Chief Minister Chow Kon Yeow said the incentives will be available to both Malaysia-based companies and foreign firms involved in the IC design industry.

“Through these incentives, we aim to continue attracting and supporting IC design players who will contribute to this transformative initiative.

“Additionally, with further support from the federal government, currently pending approval from the Ministry of Finance (MOF) in terms of funding, the state will be able to enhance and improve the incentive packages we offer,” he said at the soft launch of Penang Silicon Design @5km+ at GBS TechSpace in Bayan Lepas today.

Chow explained that the state is introducing the Penang Silicon Design @5km+ initiative to establish an interconnected ecosystem for IC design and technology enterprises, all within close proximity of the existing industrial park in Bayan Lepas.

He noted that the total cost of the Penang Silicon Design @5km+ project will be RM120 million over a five-year period, covering infrastructural development, talent development, software and equipment procurement and operational expenses.

The chief minister also pointed out that the Penang State Government has committed RM60 million to support the initiative and is seeking an additional RM60 million from the federal government as a 1:1 matching grant.

He said this funding is planned to span five years, with RM31.5 million submitted to the MOF via the Ministry of Investment, Trade and Industry (MITI) for inclusion in the 2025 Budget, while the remaining amount will be requested under the 13th Malaysia Plan.

Meanwhile, Chow also announced the formation of an Executive Council for the project, which he will chair as Penang Chief Minister.

The council will comprise state secretary Datuk Zulkifli Long, state financial officer Datuk Zabidah Safar, Penang Development Corporation (PDC) chief executive officer (CEO) Datuk Aziz Bakar, and InvestPenang CEO Datuk Loo Lee Lian.

The Advisory Panel will include the CEO of InvestPenang and CEO of the Penang Skills Development Centre (PSDC) Dr Hari Narayanan, with members comprising representatives from academia and industry, such as AMD Global Services, the Collaborative Microelectronic Design Excellence Centre (CEDEC), Universiti Sains Malaysia, Intel Malaysia Design Centre, Oppstar, SkyeChip and UST Malaysia.

The Penang Silicon Design @5km+ initiative consists of three key major projects, namely Penang IC Design & Digital Park @Bayan Lepas, Penang Chip Design Academy @PSDC, and GBS TechSpace, a 36,000-square-foot state-of-the-art facility hosting the Silicon Research and Incubation Space.

InvestPenang, in a statement today, announced that the incentive package schemes include subsidies of up to 100 per cent for rent, utilities and parking at state-owned properties; up to 100 per cent subsidies for the use of equipment and tools at shared incubation spaces and stakeholder facilities; and talent development incentives offering up to 100 per cent subsidies through the Penang Chip Design Academy.

Penang currently boasts the highest concentration of IC design-related companies in the nation, with 28 local and foreign firms residing in the state.

Source: Bernama

Penang launches RM2 million subsidy for integrated circuit design firms

Asia Digital Engineering (ADE), the maintenance, repair and overhaul (MRO) division of Capital A Bhd, is in talks with Malaysia Airports Holdings Bhd (MAHB) on finalising the site for a new aircraft MRO hangar to meet growing demand.

ADE CEO Mahesh Kumar said ADE has already obtained approval for five acres of land from MAHB to construct an MRO facility and expects negotiations to be finalised with MAHB by the end of this year.

“Once we obtain the site approval, construction of the new hangar will take about 18 months, and the new facility will have four additional MRO lines. To support our expansion and demand, we are also in talks with MAHB to secure an additional 20 acres within the KLIA area for development as a premier MRO hub,” he told reporters at the grand opening of its modern 14-line MRO hangar today.

ADE is conducting soil tests on the five-acre site next to its new MRO hangar

Mahesh said ADE is poised to become a key player and the biggest in the regional MRO sector. It will have the largest number of lines and provide efficient and cost-effective solutions.

The newly launched MRO hangar stands as Malaysia’s largest and most advanced MRO hangar to date, highlighting ADE’s dedication to spearheading the MRO industry in the Asean region.

Mahesh said the completion of this hangar is perfectly timed to meet the company’s growing demand for MRO services.

“We will be completing our 200th C-check this year with initially seven lines, and the addition of up to 14 lines will significantly expand our capacity to serve more clients. This landmark facility enhances our capabilities and creates at least 500 new jobs in Malaysia, attracting local talent and foreign investment.

“We are committed to nurturing aviation professionals and setting new standards in the MRO industry,“ he said

The facility spans over 380,000 square feet and covers 20.25 acres within the KLIA Aeronautical Support Zone 1 (ASZ 1), part of Malaysia Airports’ KLIA Aeropolis development.

The hangar features dedicated workshops, including composite, sheet metal and machine, upholstery, cabin interior repair, oven and boiler, and a 3D printing lab for aircraft livery. Additionally, it houses a digital product development centre, positioning ADE as one of the region’s most extensive MRO providers.

Capital A CEO Tan Sri Tony Fernandes said ADE will carry out MRO services for the AirAsia fleet that has been in storage since the pandemic. “Out of the 240 aircraft we have, 10 are still in deep storage. We need to get that repaired and flying again before we cater for other airlines for MRO services.”

With more than 20 years of engineering expertise supporting AirAsia, ADE will leverage this experience to attract third-party airlines.

ADE’s services include component support, line maintenance, and base maintenance for aircraft such as the Airbus A320 and A330 families and the Boeing 737 series. ADE plans to expand its capacity to service additional aircraft types.

ADE recently obtained EASA Part 145 Maintenance Organisation approval and Approved Maintenance Organization (AMO) certifications in seven other countries, with plans to expand across the region.

In 2023, ADE received a US$100 million investment from OCP Asia Ltd, providing a strong boost for its next growth phase.

Fernandes said the new hangar represents ADE’s vision for the future of MRO in Asia, with ambitions to disrupt and become the leading provider in Southeast Asia and beyond.

“In just four years since ADE’s inception, we have built the competencies and facilities necessary to become a leader in this segment. This facility will enhance our capability to provide top-notch value and services to AirAsia and other airlines.

“This growth is also crucial in supporting AirAsia’s ambitious goal of operating 300 aircraft within five years. This milestone firmly places Malaysia on the map as a world-leading MRO provider,“ he added.

Source: The Sun

Capital A’s ADE opens Malaysia’s largest, most advanced aviation MRO hangar