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All Malaysians and investors can rest assured that the country’s administration is and will always be facilitated by a well-regulated financial system, including the capital and financial markets, said Finance Minister Tengku Datuk Seri Zafrul Aziz today.

This came after the Yang DiPertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah assented to proclaim a State of Emergency in the country, and Prime Minister Tan Sri Muhyiddin Yassin’s announcement of the Movement Control Order (MCO) yesterday.

Tengku Zafrul said the government will continue to roll out measures under Budget 2021 to firmly place Malaysia on the path to recovery this year, noting that there was sufficient domestic liquidity to support any additional fiscal stimulus to support lives, livelihoods and businesses, if necessary.

He added that the Finance Ministry has begun considering various measures to support the rakyat and businesses during this period, and would not compromise on the rakyat and businesses’ well-being.

Malaysia’s sound economic fundamentals would continue to enable the government to respond effectively to the challenging environment, while maintaining economic growth and resilience, he said.

“I would like to re-emphasise that the government remains committed to build upon the current recovery momentum and ensure long-term sustainability for both our public finances and the economy,” he said in a statement today.

Tengku Zafrul said the Malaysian capital markets would remain open to support and facilitate fundraising, trading and investment, with all regulatory functions in place throughout the various forms of movement control order and the State of Emergency period.

He noted that the continued operations of the capital market were important to support the resilience and recovery of the Malaysian economy, as well as in helping investors manage their risks and opportunities during the period.

“I would also like to highlight that Malaysia has a resilient capital market ecosystem, supported by ample liquidity. There are proper market management measures in place to manage volatility.

“Clearing funds, margins and deposits arrangements are also in place to manage clearing and settlement risks,” said Tengku Zafrul.

He added that the Securities Commission together with Bursa Malaysia Bhd will continue to monitor the ongoing developments to proactively manage and mitigate risks in the marketplace, and will introduce additional precautionary measures, as appropriate.

The minister said in terms of financial intermediation and payment systems, the operations of financial institutions and financial markets will continue as usual, with services remaining available and accessible to borrowers.

He noted that Bank Negara Malaysia continues to actively monitor conditions in the financial markets to ensure that there is sufficient liquidity in the foreign exchange, bond and money markets; and that market conditions remain orderly.

“Malaysia’s banking system buffers and sound risk management practices are able to mitigate the impact of any potential deterioration on credit quality and continue to support lending by banks to the economy during the duration of this State of Emergency and various forms of MCO implementation,” he noted.

Source: Bernama

Govt assures Malaysians, investors a well-regulated financial system

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Tan Sri Muhyiddin Yassin expounded that the country’s economic activities will continue to function throughout the duration of the state of emergency, but is subject to compliance with the standard operating procedures (SOPs) and the re-implementation of the Movement Control Order (MCO).

The Prime Minister said the government would ensure that economic activities did not stop so that the people could continue to work, while business, trade and industry could continue to operate as usual.

“The government is also committed to ensuring that best governance practices continue to be practised throughout the implementation of the state of emergency.

“Internationally recognised national regulatory organisations, namely Bank Negara Malaysia, the Securities Commission Malaysia and Bursa Malaysia will continue to play their role as regulatory catalysts; and facilitators of companies and markets,” he said.

Muhyiddin said this in a special address in conjunction with the proclamation of the emergency aired by television stations today.

Al-Sultan Abdullah today proclaimed an emergency that will be enforced until Aug 1 as a proactive measure to contain the worsening COVID-19 pandemic in the country.

Meanwhile, the Prime Minister assured stakeholders that Malaysia is still open for business in the face of these challenging times.

“This period of emergency will give us the much needed calm and stability, as well as enable us to focus on economic recovery and regeneration.

“We remain committed to good governance in these times and we have a robust and dynamic regulatory ecosystem,” he said.

Muhyiddin said the government has put in place a six-stage strategy for economic recovery since March last year which was incorporated these in Budget 2021.

“Continued stability, of course, will enable us to sustain and build upon economic recovery trajectory we have been working hard for since last year,” he said.

Source: Bernama

Economic activities will continue to function during state of emergency – PM Muhyiddin

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The availability of Covid-19 vaccines to facilitate this

PETALING JAYA: The transportation and logistics sector is projected to see a better year, as global trade and travel recover with Covid-19 vaccination programmes getting underway worldwide, says Aminvestment Research.

The research unit has upgraded the transportation and logistics sector to overweight from neutral previously.

Regarding the ports segment, am investment Research said it has bounced back and shall do even better in 2021, as evidenced in the record high Shanghai Containerised Freight Index (SCFI), often used to gauge the health of global trade.

The research unit believes the Covid-19 pandemic as well as trade tensions between major economies are reshaping the global supply chain, resulting in a diversion of investments from China to the South-east Asian region, thus boosting container throughput in the region.

Aminvestment Research has projected container throughput at both Westports Holdings Bhd and the ports of MMC Corp Bhd to grow by 3% in 2021 (after contracting by an estimated 1% to 2% in 2020) and returning to the pre-pandemic growth levels of 3% to 5% in 2022.

As for air travel, according to the International Air Transport Association, the passenger volume will not return to 2019 levels until 2024, with domestic markets recovering faster than the international service.

On a brighter note, it is assumed that borders will start reopening by mid-2021, with the growing availability of Covid-19 vaccines.

Meanwhile, the Malaysian Aviation Commission is projecting the country’s air passenger traffic to rebound by 94.2% to 100.3% year-on-year in 2021, which is largely in line with Aminvestment Research’s forecast of a 100% traffic rebound for both Airasia Group Bhd and Malaysia Airports Holdings Bhd (MAHB) in 2021. This will translate to around 50% of passenger traffic as compared to the pre-covid-19 level.

Regarding the logistics segment, Aminvestment Research said the parcel delivery segment will continue to be the winner even post-pandemic, as it believes consumers have permanently shifted their shopping habits from physical stores to online channels, lifting the growth path for parcel volume to another new level.

Meanwhile, the Malaysian Communications and Multimedia Commission’s recent initiatives to address the logistics segment’s overcrowded issues is seen as positive, as it finally shows the authorities’ will to intervene in the unhealthy competition within the sector.

The National Postal and Courier Industry Lab is set to strengthen the industry and this will benefit all existing players, especially those that already have a strong footprint in the country like Pos Malaysia Bhd and GD Express Carrier Bhd.

Aminvestment Research’s top pick within the sector is MMC, with a fair value of RM1.56, and Westports, with a fair value of RM4.83, in anticipation of the recovery in container throughput over the next six to 12 months. It also has buy calls on MAHB and Pos Malaysia, with fair values of RM6.64 and RM1.33, respectively. It rates Airasia as sell, with a fair value of 66 sen.

Source: The Star

Transportation and logistics to see recovery

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Gary Gan, managing director of Hexa Food Sdn Bhd, started out selling flour and spices to food companies from a humble shop 16 years ago. He had taken over the company, originally named Krisanya Sdn Bhd, in a joint venture with family members and other individuals.

Today, Hexa has expanded quite substantially and sells, among others, curry powder, herbs, seasonings and ground spices, all of which are certified halal.

By 2015, Hexa was exporting to at least five countries. In the midst of planning its overseas expansion, however, Gan realised that he had to improve his factory’s processes. “One concern when it comes to food products is food safety and quality. If there are any problems, our products will be rejected and we will incur a lot of losses.”

This led him to explore the use of the Internet of Things (IoT) two years ago to address these problems. Instead of relying on manual checking, inspection and data collection for quality control, Hexa could rely on IoT to monitor these processes remotely.

“You don’t need to implement IoT on everything. We have a few key machines and critical points that are digitalised [with IoT]. For instance, one critical point that we have in our factory is temperature. If the roasting temperature is too high, you will over-roast. Weight is also very important. If your recipe is supposed to produce 250kg of output but you generate 260kg, then that indicates that something is wrong. Another factor is the size of the products,” says Gan.

Hexa also started working with Huawei to build a computer vision system that can detect products within specification. Otherwise, the system automatically rejects them from the pile. “You can use it to determine the good chillies and bad chillies [for producing curry powder] by looking at the average size or colour,” says Gan.

So far, the company has benefited from using the technology in various ways. “A misconception that people have about IoT is that they can save 30% to 40% in costs from one single category. But IoT actually brings benefits to various processes. For instance, it increases efficiency by 10%, reduces wastage by 10% and increases profitability by 10%,” he explains.

Starting an IoT team

The solutions were so useful for Hexa that, in 2019, Gan co-founded Hexa IoT Sdn Bhd to offer its IoT solutions to companies that face similar challenges. “We have a good team of people managing the IoT project. If we disbanded them after installing IoT in the factory, it would be quite wasteful. So, we decided to form a standalone unit,” he says.

Hexa IoT is powered by Huawei and aims to empower small and medium enterprises (SMEs) with the latest IoT technologies to improve manufacturing quality. The products include environmental sensors, smart thermal imager sensors and smart weighing solutions.

“Automation and IoT go hand in hand. Automation enables machines in the factory to run by themselves. IoT allows you to monitor the machines to see whether anything is wrong, and you can get all this information on your dashboard,” says Gan.

How did they start?

Gan knew that IoT and digitalisation were things the company had to embrace sooner or later to make its processes more efficient and accurate.

He started the learning process, which he says takes three to four months, by hiring interns. “We explore new ideas with our interns because they have the time and they are usually very interested in new topics.”

The interns researched how other companies were using technology to solve problems similar to those faced by Hexa, adds Gan. “They scoured for information. The more we knew, the better we would know whether we were moving in the right direction.”

In total, he estimates that the company spent just below RM1 million to implement IoT in Hexa and set up Hexa IoT. The cost for a regular company to implement IoT in its factories could be around RM100,000 or less than that, he says.

“To be honest, the monetary investment part of it is easier. It’s just a question of whether you have enough resources, and these things become cheaper over time. But the exploration stage, where you have to learn about the technology and how it can solve your problem, takes longer,” says Gan.

Tapping into a nascent market

So far, the take-up of Hexa IoT’s services is normal, Gan says. They receive most interest from players in the food, agriculture and aquaculture industries. Many of its potential clients are still waiting for their grant applications to the Malaysian Investment Development Authority to be approved, he adds.

“Only a handful of companies are expanding regionally. IoT benefits these companies the most. Companies that are expanding regionally need to go into mass production, at which point they will definitely need IoT … They have no choice but to head in this direction because margins are going to become thinner and, if any of their manufacturing processes are not efficient, they will lose out,” says Gan.

What could be done to increase the use of IoT among Malaysian companies? Gan believes more IoT and automation service providers with affordable solutions are needed. “The big enterprises can afford solutions from players such as ABB, Siemens and Schneider. But SMEs are in a bind,” he says. SMEs have to justify whether the cost of implementing a new technology is worth it.

“Even new competitors in this market would be good. This is an up-and-coming sector. We are also trying to work with start-ups to solve problems.”

The government has many good initiatives to help companies adopt IoT and automation, but the timeline of implementation could be accelerated, Gan adds.

“For many of us, whatever [incentives] we receive to invest [in automation], we eventually pay back in terms of tax. The recipients will pay it back in tax in three or four years’ time, as long as it approves these incentives for the right companies and makes sure there are no leakages.”

Source: The Edge Markets

Case Study: From spices to IoT

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Since the demand for tech talents across every industry rapidly grows due to the massive adoption of technology by the small and medium sized enterprises (SMEs) in this COVID-19 era, it is a timely call for the country to aggressively develop and produce more tech talents in meeting the necessary demand for digital transformation.

This is because the demand for tech talents has increased significantly according to Randstad Malaysia’s latest talent outlook report, possibly due to the rise in demand for almost every organisation moving to the digital economy for business survival during the crisis.

Indeed, this unprecedented moment, which involves the country’s attempts to curb the COVID-19 spread, such as through various movement control order (MCO) phases, travel restrictions and face setbacks such as disruption of global supply chains, has forced businesses to establish the capability to operate digitally as the only secure way to survive and avoid business closures during the crisis.

For instance, Randstad Malaysia and Singapore managing director, Jaya Dass also stated that many organisations scrambled to have the right resources and technology to allow their workers to continue working remotely with the short window time to move operations from the office to home.

It is later proven by the survey of the IBM Institute for Business Value (IBV) that 60% of respondents, made up of executives, indicated that they had accelerated the digital transformation of their businesses amidst the COVID-19 pandemic.

The IBV’s survey, called Digital Acceleration Study, also precisely portrayed the technologies that provide the most impressive performance impact on success across industries: mobile, artificial intelligence (AI) and cloud.

This is an inspiring piece of news for the nation about how COVID-19 presents companies with challenges, but at the same time provides them with opportunities to fasten digital transformation as the only way out of the pandemic shackles.

However, it is also a good lesson to be learned because digital adoption among companies was seen to be lower during pre- COVID-19 compared to now.

Frankly, the pandemic indeed opened up great opportunities for them to urgently embrace digital transformation due to relentless pandemic pressure and it should be consistent even after COVID-19 era.

But it’s becoming a problem when most companies are still struggling to search for the right tech talents who could effectively help leverage the technologies and in turn, can assist their digital transformation process.

This illustrates why it is essential to have reliable tech talents to ensure digital transformation’s success. It can be easily expressed; where businesses put the entire focus on the transition towards the digital economy, great tech talents also need to be there to perfect the digital adoption.

Furthermore, the growth of tech talents will also drive our country’s digital transformation progress or even in realising Malaysia 5.0 that has been actively championed by the chairman of Malaysia Digital Economy Corporation (MDEC) and the CEO of EMIR Research, Datuk Wira Hj Rais Hussin.

In terms of employment, Randstad Malaysia expects more job opportunities to be open to local talents due to this digital transformation. It may be like killing two birds with one stone, where it can secure more local workforce on meeting the high demand for tech talents and reduce the unemployment rate.

To further facilitate this fantastic digital initiative by the businesses, the government should put in more efforts into the tech talents development in Malaysia via great collaboration with various industries for a rapid and comprehensive effect.

For instance, MDEC has also introduced a programme called “tech talent development,” which is one of the critical strategic thrusts that will form the basis of the national digital strategy.

The IT industry also plays a significant role in magnifying the MDEC’s effort to train more tech talents effectively. The government will then be responsible for ensuring that the training and courses provided will give our local workforce valuable exposure and relevant skills in making this initiative a success.

Besides, the short-term Economic Recovery Plan (Penjana) was undoubtedly a brilliant idea in providing several initiatives for upskilling and reskilling the local workforce to meet the increased demands for tech talents.

However, it will take a long time to be successful, maybe around a few years, and therefore require more improvements so that the development of tech talents will be quicker and more effective to help companies survive throughout the ongoing crisis.

This can take the form of a robust on the job training by pairing up companies with respective training centres.

Given 2021 has just started, people will continue to observe how emerging technologies such as fintech, AI and the internet of things (IoT) will positively impact the nation across the year.

It’s just a matter of the preparation of the nation to face this massive digital transformation. In this case, the most prominent factor is the sufficient supply of tech talents to meet the high demand.

Not only that, Malaysia also needs to be fully prepared for better digital infrastructure to adapt to the new norm this year due to the continuous impact of COVID-19 to the country that would subsequently increase the urgency of digital adoption among businesses.

Farhan Kamarulzaman is a Research Assistant at EMIR Research, an independent think tank focused on strategic policy recommendations based on rigorous research.

Source: Focus Malaysia

More tech talents needed to cope with technology adoption

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The Sabah state government has set up a ‘Sabah Economic Advisory Council’ (SEAC) comprising industry players, academicians and non-governmental organisations (NGOs) to complement its efforts in the state’s economic recovery.

Chief Minister Datuk Hajiji Noor who is also state Finance Minister said the SEAC was a voluntary effort by appointed members who have agreed to give their service to the state in an advisory role.

He said the SEAC idea was mooted when the government under Gabungan Rakyat Sabah (GRS) took over the helm.

“Since October last year, the council lost no time in bringing together members to brainstorm on the way forward for the state’s economic recovery,” he said after chairing the council’s special meeting at the Sabah Administrative Centre here, today.

The SEAC is led by Tan Sri David Chu Sui Kiong as chairman and Datuk Tan Kim Beng as secretary.

Hajiji said the plans must be put in place and turned into actions once the COVID-19 pandemic subsides.

Meanwhile, he revealed that the Sabah state development blueprint or Hala Tuju Sabah Maju Jaya (SMJ Development Plan 2021-2025) was in the finalisation stage and would be tabled in the State Legislative Assembly soon.

“The Hala Tuju SMJ Development Plan will see the involvement of the private sector and this is where we look to the SEAC as among the vehicles to bring change and transform our economy,” he said.

He said he also brought up Sabah’s needs and priorities for the 12th Malaysia Plan (12MP) during a recent meeting with Prime Minister Tan Sri Muhyiddin Yassin.

“The aim of my visits was to forge greater cooperation and to work closely with our federal counterparts. Among them were to boost inflow of domestic and foreign investments in Sabah and in particular, to bring in more new investments to Sabah.

“Our target is to improve the value of investments approved, recorded at RM11.7 billion for the first quarter of 2019 and to prove that Sabah will continue to be an attractive investment destination for foreign investors,” he said.

Source: Bernama

Sabah State Govt Sets Up Economic Advisory Council

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The government has allowed five economic sectors to operate during the Movement Control Order (MCO) which will be implemented for a period of 14 days starting Wednesday, Tan Sri Muhyiddin Yassin said.

The Prime Minister said the sectors were industrial and manufacturing, construction, services, trade and distribution, as well as plantations and commodities.

“These sectors are allowed to operate because of their role in supporting the tasks of supplying basic necessities such as food, beverages and household items, as well as personal care, Personal Protective Equipment equipment, medical devices and medicines to health workers, international trade activities, in ensuring uninterrupted supply chains and supporting critical infrastructure and emergency work,” he said.

He said this when delivering a special address on the implementation of the MCO which was broadcast live today.

The Prime Minister said only 30% of employees in the management group were allowed to be in the office while the needs of the support group would be determined by the employers.

He said the specified number of employees should take into account strict adherence to the stipulated standard operating procedures (SOPs).

“Stringent action will be taken against any employers who violate the SOPs and cause the spread of the Covid-19 infections in the workplace, based on the law, including closing the premises,“ he said.

Muhyiddin said the Ministry of International Trade and Industry would detail the types of services categorised as essential economic sectors.

For sectors or services that are not listed as essential economic sectors, he said working from home instructions will take effect.

All employers must comply with the directive to reduce movements within the community, especially in high-density areas, he added.

Source: Bernama

Only 5 economic sectors allowed to operate during MCO — PM

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Malaysia’s manufacturing sales grew 2.1 per cent year-on-year to RM119.9 billion in November 2020, said the Department of Statistics Malaysia (DOSM).

On a monthly basis, the sales value went down by 1.7 per cent.

In a statement today, chief statistician Datuk Seri Mohd Uzir Mahidin said the year-on-year (y-o-y) growth in sales value during the month was driven by the increase in transport equipment and other manufactured products (10.5 per cent), electrical and electronics products (5.3 per cent), and food, beverages and tobacco products (5.1 per cent).

However, he said the total number of employees in the manufacturing sector in November 2020 declined 2.2 per cent y-o-y to 2.2 million persons versus 2.25 million persons previously with salaries and wages paid amounting to RM7.19 billion, lower by 1.3 per cent or RM91.8 million against the same month last year.

Simultaneously, Mohd Uzir said the sales value per employee rose by 4.5 per cent y-o-y to RM54,599 while the overall average salaries and wages per employee in the sector was RM3,275 in November 2020.

Source: Bernama

Manufacturing sales grow 2.1 pct in Nov 2020

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Both international and domestic business communities have remained committed to Malaysia due to the country’s strengths and potential, said Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz.

Despite the Covid-19 pandemic, he said many international companies and multinational corporations have started establishing vendor development programmes and supply chain management initiatives, together with local companies and suppliers.

“Over the years, these local suppliers became large manufacturers in their own right, and quite a few are now listed in our stock exchange, providing employment opportunities for our local talents,” the minister shared in his latest LinkedIn post today.

He said notable projects approved for the first nine months of 2020 include LEM (Switzerland), Dexcom, Ultra Clean (USA), Keysight Technologies (USA), Bosch (Germany), as well as Nippon Electric Glass (Malaysia) Sdn Bhd.

Various global rankings have also validated Malaysia’s position on numerous metrics; a testimonial to Malaysia’s sound policies and measures, he said.

Tengku Zafrul noted that according to a recent report by Bloomberg, Malaysia is the fifth key destination among emerging economies for investment and businesses, on the back of its potential rapid economic recovery, stable fiscal and financial position, and the ability to contain and alleviate the Covid-19 pandemic.

Meanwhile, he pointed out that like many other countries, Malaysia is also faced with the arduous task of rejuvenating and rebuilding the economy impacted by Covid-19.

He said the government’s efforts began with the initiatives introduced through the short-term economic recovery plan (PENJANA) announced in June 2020.

Under Budget 2021, many of these incentives have either been expanded or extended, in order to make Malaysia a preferred destination for high-value added service activities and a hub for innovation, high-technology and future-ready industries.

He stressed that the ministry has been working with other agencies and ministries to ensure that these incentives will be made available to genuine investors.

“But we must remember two important points: we’re still in a health crisis, and every country is unique in terms of attracting foreign direct investment.

“And while Malaysia is still working tirelessly to contain Covid-19, recovery — in public health, economy or even investments — will take time,” he said.

Tengku Zafrul said the ministry had engaged with multiple local and international agencies and business groups including the American Malaysian Chamber of Commerce, the French Malaysia Chamber of Commerce and Industry, and the British Malaysia Chamber of Commerce, and held discussions with numerous ambassadors, commissioners and ministers.

“We have not managed to meet every single one (of them), but we are getting there.

“The ministry’s officials and I very much look forward to meeting all chambers of commerce and other stakeholders in Malaysia to see how best we can work together — particularly with the Ministry of International Trade and Industry and other investment-focused agencies — to facilitate more investments from our trading partners in 2021 and beyond,” he added.

Source: Bernama

Malaysia continues to be preferred investment destination, says Tengku Zafrul

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All economic sectors need to take the necessary steps to reduce the Movement Control Order’s (MCO) negative impact on the socio-economic development of the state, said Penang Chief Minister Chow Kon Yeow.

“We need to understand that the MCO is necessary, given the surging number of COVID-19 cases which are getting close to crippling the nation’s public health system.

“As such, all economic sectors need to make the necessary adjustments to alleviate its negative impact on the state’s socio-economy, as, if we should fail to win against the COVID-19 pandemic, the economic well-being cannot be guaranteed,” he said in a statement yesterday.

Chow said the Penang State Security Special Committee would convene this morning to further refine the standard operating procedures (SOP) regarding the implementation of MCO in the state.

At 6 pm yesterday, Prime Minister Tan Sri Muhyiddin Yassin announced that the MCO will be enforced in Penang, Selangor, Kuala Lumpur, Putrajaya, Labuan, Melaka, Johor and Sabah from midnight Jan ‪13 – 26, 2021, where inter-district movement is prohibited.

Meanwhile, conditional MCO (CMCO) would be enforced in Pahang, Perak, Negeri Sembilan, Kedah, Terengganu and Kelantan, while Perlis and Sarawak would undergo the Recovery MCO (RMCO) during the same period.

Source: Bernama

MCO: Economic sectors should make necessary adjustments

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Advancecon Holdings Bhd will generate a total capacity of 993.96 kilowatt peak (kWp) solar energy under the Net Energy Metering scheme following the signing of power purchase agreements with two companies today.

Its wholly-owned subsidiary, Advancecon Solar Sdn Bhd, inked the 21-year agreements with Prominent Image Sdn Bhd and Oon Corp Resources (M) Sdn Bhd, to design, construct, install, own, operate and maintain solar photovoltaic energy generating systems.

“The solar photovoltaic energy generating system for Prominent Image (in Rawang, Selangor) will have a final generation capacity of 342.32 kWp after all conclusive surveys and design work were carried out.

“Its commercial operation date is expected to start in the first quarter of 2021,” the earthworks and civil engineering services contractor said in a statement today.

Meanwhile, Advancecon said the installation for Oon Corp’s two premises in Senawang, Negeri Sembilan, would have a final generation capacity of 651.64 kWp.

“Its commercial operation date is expected to be in early second quarter of 2021,” it added.

Source: Bernama

Advancecon inks solar power purchase agreements with two companies

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ACE market-listed Inix Technologies Holdings Bhd (Inix) and L&S Gloves Sdn Bhd will start commissioning an additional two latex glove production lines by February, to complement the existing two lines which are in production.

Inix executive director Siva Kumar Kalugasalam said the company’s wholly-owned subsidiary, INix Glove Manufacturing Sdn Bhd (iNix Glove) has signed a 10-year lease agreement (renewable for another 10 years) for a 0.91-hectare glove factory site in Beranang, Selangor.

“Earlier last month, with the full support of the board members, Inix entered into a memorandum of agreement (MoA) and has paid 45 per cent deposit to acquire L&S Gloves, in which the definitive agreement for the acquisition is at an advanced stage and pending finalisation,” he said in a statement here today.

L&S Gloves director Teo Xiong Sheng said with the new tenancy agreement, the partnership will be able to add two more production lines next month.

“Thereafter, INix would add two production lines every three months until a total of 14 production lines are commissioned,” he said.

According to Teo, L&S Gloves’ daily production of gloves are sold out in advance and delivery to their customers are done on daily basis.

“L&S Glove has sufficient orders to sustain for the next two years for the planned 14 production lines which have a production capacity of over 110 million pieces of latex gloves a month,” he added.

Meanwhile, Inix chairman Tan Sri Syed Mohd Yusof Syed Nasir said: “Inix’s move to lease the factory and the commissioning the two out of the 12 additional production lines demonstrates our firm commitment and determination to venture into glove manufacturing and expansion of 14 lines within 12 months.”

Inix inked an MoA with L&S Gloves on Dec 7 last year to acquire 51 per cent equity interest of the latter, with an investment of RM50 million.

About 97 per cent of the production would be exported to China and India and the remaining for domestic consumption. The partnership is also eyeing new markets such as Europe.

Source: Bernama

Inix-L&S Gloves to double production capacity by Feb

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Malaysia remains an attractive hub in Asia Pacific for German companies, says German ambassador His Excellency Dr Peter Blomeyer (left) during a courtesy call to Malaysian Investment Development Authority’s (Mida). He was received by chairman Datuk Abdul Majid Ahmad Khan.

Blomeyer said Germany, being Malaysia’s largest foreign investor from the European Union, saw the start of 461 manufacturing projects as of June 2020 with total investments worth Rm33.31bil, and creating 47,277 jobs.

He said the German business communities welcomed the decision to exempt advertising requirement for positions, namely investors, company owners, C-suites, expatriates for Regional Offices as well as for intra-company transfers.

Blomeyer said Germany would like to explore collaboration with local training institutions in order to boost their training capabilities and facilities in human capital development by offering German Dual Vocational Training (GDVT) programmes.

Abdul Majid briefed Blomeyer on Mida’s plans to organise a trade and investment mission and working visit to Europe once business travels are allowed.

Source: The Star

Strong German support

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To drive the electrical and electronics products (E&E) industry in Malaysia to new heights, there must be government support for improved tax incentives for local companies and foreign investors, strategies to attract and develop talent, policies to boost local capabilities in designing integrated circuits (IC) and industrial software, as well as campaigns to encourage buying locally produced components and machinery.

Electrical and Electronics Productivity Nexus (EEPN) chairman Datuk Seri Wong Siew Hai says the E&E industry is a leader in back-end manufacturing (assembly, test and packaging) which contributes only 10% to the value of the finished semiconductor chip.

According to a study by the Belfer Centre for Science and International Affairs, Harvard Kennedy School in July 2020, the remaining 90% are contributed in equal portions by front-end manufacturing (wafer fabrication), and design and development.

“This does not mean we are not doing well, because back-end manufacturing also involves high technology. However, we should also develop our capabilities into high value areas where we are lacking such as design and development,” says Wong.

EEPN is an industry-driven and government supported initiative that was formed in 2017 under the Ministry of International Trade and Industry’s Malaysia Productivity Corporation (MPC), to boost the E&E industry’s contribution to the national economy.

The E&E industry is among the nine priority subsectors within the Malaysia Productivity Blueprint (MPB), launched in May 2017 as part of the 11th Malaysia Plan, that were identified as having high growth potential for the country.

Wong, who has spent three decades in the E&E industry, and was formerly Intel’s vice-president of technology and manufacturing group, says the sector’s importance to the Malaysian economy since 1972 cannot be overstated.

He points out that statistics showed that in 2019, the industry accounted for 6.3% of the country’s gross domestic product (GDP) and employed 560,000 people.

According to Malaysian Investment Development Authority (MIDA), the E&E industry is the single largest contributor to the manufacturing sector, and was the country’s largest export earner in 2019, with exports totalling Rm372.67bil or 44.7% of all manufacturing goods exported .

In 2019, the E&E industry also recorded the highest approved investments, at Rm25.65bil or 31% of the total Rm82.71bil.

These approved investments in 157 E&E projects are expected to create 22,936 jobs.

The 2018/2019 Economic Impact Survey report by MAEI noted that Malaysia is the seventh largest E&E exporter in the world, with more than 100,000 jobs being created in this sector.

Malaysia’s top five export destinations in 2019 were Singapore, Hong Kong, United States, China and Japan, with Singapore accounting for the lion’s share of 16.2% of all E&E exports, amounting to Rm60.42bil.

Wong explains that the country’s E&E industry is known for its manufacturing strengths in semiconductor assembly test and packaging, storage, electronics manufacturing services (EMS), medical devices, light-emitting diodes (LEDS), solar systems, and industrial electronics as well as global business services (GBS) and automation systems.

“Malaysia is strong in automation and it has grown in capabilities. We need to make it known to the world,” he says.

He also says Malaysian companies are also involved in IC design, embedded system

“Malaysia is strong in automation and it has grown in capabilities.” Datuk Seri Wong Siew Hai

design and development, industrial software, artificial intelligence (AI) and 5G, wafer fabrication, integration of robotic systems and testing equipment.

“But we don’t have a significant presence in these areas which deliver more innovation and higher value. As such, we can focus on growing local capabilities in these areas where we have a weak presence. We also need to grow the medical device industry here,” he says.

Wong points out that the country’s E&E industry is not able to design vision cameras, robotic arms, surface mount technology (SMT) equipment, wafer fabrication processing equipment, bonders, direct material for semiconductors and E&E manufacturing, and machine learning algorithms.

He says to move the Malaysian E&E industry up the value chain, there has to be a holistic strategy for talent development among students.

“The majority of students nowadays are not interested in STEM (science, technology, engineering and mathematics) subjects. And yet, we want to become a nation of innovation in science and technology,” he says.

Wong says in the past three years, EEPN had organised hackathons for university students and plugfests for engineers.

The hackathons saw participation from 132 university students and were held at Technology Park Malaysia (Kuala Lumpur) in October 2019, as well as Johor and Sarawak in October 2020.

“We gave the university students the task of solving an industry problem, we want to give them the exposure and create the interest,” he says.

EEPN is also driving a Structured Industry Apprenticeship Programme (SIAP) for IC design, which has seen participation from seven universities namely Universiti Sains Malaysia (USM), Universiti Malaysia Perlis (UNIMAP), Universiti Malaya (UM), Universiti Teknologi Malaysia (UTM), Universiti Teknologi MARA (UITM), Universiti Putra Malaysia (UPM) and Universiti Tun Hussein Onn Malaysia (UTHM).

SIAP is a university curriculum enhancement and embedment programme for IC design and development, created in partnership with the Ministry of Higher Education.

Thus far, it consists six industry-driven training modules namely introduction to design, digital front-end, digital back-end, design for testability (DFT), analog and circuit layout.

“What we wanted to do was to take the industry curriculum and put it into the universities. We are also promoting SIAP to private universities,” says Wong.

Meanwhile, the two plugfests saw the participation of 177 engineers from 92 companies.

“In the plugfests, we wanted the engineers to solve problems under real work conditions. We gave them a simple project and they work on it with a kit, and learn programming. Then the companies realise that the learning curve is not so complex and expensive.

“We are discussing with HRDF (Human Resources Development Fund) to help to to fund this training,” says Wong.

He also says the government can help via providing programmes in industrial upskilling for unemployed graduates, as well as advanced skill enhancement in IC design and embedded software development.

Wong says EEPN had held successful training and work placement programmes for 121 unemployed engineers.

“After three to six months, we placed everyone who joined the programme,” he says.

To further attract young talent to consider design and development in the E&E industry as a career, Wong also suggests higher automatic individual relief for personal income tax as an incentive.

He also suggests allowing foreign engineering graduates, who are studying in Malaysia, to work locally.

“We can use talents from other countries. Of course, the typical view is that if we hire foreigners, we deprive Malaysians of jobs. My counter argument is, if we hire these people, we could win and support projects and thus, create more jobs,” he says.

Wong says more tax incentives are needed for E&E companies in Malaysia to invest in research and development, and innovation.

“Reduce the red tape, and make it easier to meet the criteria for the incentives, especially during this difficult pandemic period.”

For foreign investors, there should be transparent and clear tax incentives of 10 years or more.

“Multinational corporations (MNCS) who invest in foreign countries look at the longterm horizon in their business planning.”

Also, different set of tax incentive criteria should be given to Malaysian companies who are growing and manufacturing new products and technology.

“With the tax incentives, the local companies would have extra funds to invest in design and developments and new innovations. This would allow them to compete with other companies around the world,” says Wong.

He also said there should be incentives for MNCS and local companies to source for supplies from the domestic ecosystem.

“Electronics manufacturer Inari Amertron Bhd is a role model; it has spent hundreds of millions in supporting local companies,” says Wong.

In recent years, EEPN has organised small and medium enterprises (SMES) leadership training for companies with revenue from Rm3mil to Rm10mil.

The focus is to expose them to business and marketing strategies, pitch and win, digitalisation and develop and retain talent.

“Feedback from owners, founders and CEOS were very positive and we hope the companies will grow and be publicly listed one day,” he says.

Meanwhile, the www.eemm.com.my portal was also set up and launched on November 30, 2020, to promote Malaysian E&E companies to the world.

Wong says the portal was sponsored by 27 companies and is free for two years, to encourage more companies to sign up.

“We have about 50 companies listed on the portal, but we need more. The idea is to help overseas companies who are looking for Malaysian E&E companies to work with,” he says.

Source: The Star

Grow the E&E golden goose up the value chain

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The Malaysian Malay Chamber of Commerce (DPMM) Labuan will play a crucial role in the federal territory’s economic development with the close cooperation of the local authorities and other business chambers.

DPMM Labuan president Datuk Suhaili Abdul Rahman said these organisations have the potential to make the private sector the engine of growth in the duty-free-island.

“DPMM Labuan, with the cooperation of local authorities and other business chambers can play a key part in developing and growing the roles of the private sector, not just in the economy but also in the wider governance in this island,” he told Bernama after the DPMM Labuan’s state membership committee meeting here, today.

He said Labuan must maintain its competitiveness in being Malaysia’s international business and financial centre and regional oil and gas hub or it would be on the losing end.

“As such, DPMM Labuan being a business chamber must play a crucial role to assist in shaping Labuan’s economy, develop business activities and create employment…this will be our focus for this year,” he said.

Earlier, Suhaili who is the former Labuan Member of Parliament said business chambers do not just contribute to economic growth, development, peace, and prosperity, but also towards building inclusive entrepreneurship ecosystems.

“I share that belief…we need the business chambers to be led by capable men and women with vision and integrity.

“The success of these chambers is usually quite dependent on the quality of their leadership.

“There are some whose glory days are gradually leaving them…they unintentionally made the mistake of electing incapable leaders, some of whom are more interested in petty internal politics and even fail to organise simple things like proper annual general meetings.

“They manage the organisation through divide and rule, bad-mouthing those whom they disagree with,” he said.

Suhaili said unless the leaders who have failed are quickly replaced, these organisations are more likely to suffer diminishing membership and fade away.

There are also business associations that are led by people with vision and they invite people with a variety of skills to help them in growing their associations, and they are brave enough to embrace the changing dynamics in today’s world, he noted.

“These leaders value the contributions made by their staff. Rather than using the platform to promote only themselves, they invest in good people who can champion the cause of the private sector.”

He said Malaysian businesses have been actively playing their roles in improving governance, and ‘the most vocal actors on this matter are usually the civil society’.

Source: Bernama

DPMM Labuan to play crucial role in local economic development

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V.S. Industry Bhd (VS), an electronics manufacturing services provider, has set aside RM200 million in capital expenditure for financial year 2021 (FY21) to expand and enhance its capacity and capabilities.

Managing director Datuk SY Gan said despite 2020 being an arduous year for the company in the face of unprecedented market challenges stemming from the Covid-19 pandemic and ongoing macroeconomic issues, it had managed to secure two new customers from the US.

“Additionally, we also expect the robust order flow from our existing customers to sustain into the near future. With this and the new customers secured, our existing capacity is projected to be fully filled by 2021.

“Therefore, we have earmarked approximately RM200 million for capital expenditure for FY21 to expand and enhance our capacity and capabilities,” he said in a statement after VS’ 38th annual general meeting, yesterday.

“We are striving to deliver an improved performance in the new fiscal year having posted our best-ever quarterly net profit of RM66.7 million in the first quarter (1QFY21) and supported by the rebound in global and local economies,” he added.

As part of its capacity expansion plan, VS on Oct 14, 2020 entered into Sale and Purchase and Construction Agreements with Ipark Development Sdn Bhd, a subsidiary of AME Elite Consortium Bhd, to acquire six pieces of land with industrial buildings in Senai, Johor for a total consideration of RM98.8 million. The acquisition is expected to be completed by June 30, 2021.

Source: Bernama

VS allocates RM200 mln capex for FY21

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The Malaysian Investment Development Authority (MIDA) kick-started the year 2021 with a courtesy visit from the newly appointed Ambassador of the Federal Republic of Germany to Malaysia, His Excellency Dr. Peter Blomeyer.

Germany has been Malaysia’s largest foreign investor from the European Union. As of June 2020, a total of 461 manufacturing projects with German participation have been implemented with total investments of USD9.36 billion (RM33.31 billion).

The projects have created 47,277 jobs.

Dato’ Abdul Majid Ahmad Khan, Chairman of MIDA said that “His Excellency and I discussed a host of prolific issues that need attention for both countries to continue its goods-to-people mobility, despite the continuing pandemic concerns. The closely-linked business communities from both sides urgently need to commute with the acceptance of stringent SOPs in place. MIDA has been working tirelessly with the embassies and foreign chambers to ensure that investors are provided adequate assistance to the necessary approval and access to make well-informed investment and business decisions across various markets.”

At the meeting, His Excellency Dr. Peter Blomeyer highlighted that existing German companies operating here find Malaysia as an attractive hub in Asia Pacific.

In addition, the German business communities also welcome the decision to exempt advertising requirement for positions namely investors, company owners, C-suites, expatriates for Regional Offices as well as for intra-company transfers.

His Excellency also wished to explore collaboration with local training institutions in boosting their training capabilities and facilities in human capital development by offering German Dual Vocational Training (GDVT) programmes in Malaysia.

Furthermore, His Excellency reiterated his team’s support for the business continuity of existing German companies as well as to encourage more German companies to expand their overseas operation as Malaysia is one of the most developed and matured manufacturing and related services countries in the region.

This ecosystem provides a competitive advantage for the German companies’ to locate their projects in Malaysia.

Dato’ Abdul Majid also briefed on MIDA’s plans to organise a Trade and Investment Mission and working visit to Europe including Germany once the border controls are streamlined and opened for business travellers.

The Chairman of MIDA expressed the Government’s commitment to facilitate smooth business operations, including German investment in Malaysia.

Strong commitment from both institutions is essential in attracting quality investments for high value-add, capital-intensive and knowledge-intensive projects.

Source: Bernama

Malaysia remains a competitive investment location for German companies

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Petroliam Nasional Bhd (Petronas) said today its subsidiary Petronas Carigali Sdn Bhd (PCSB) has taken over the operatorship of the E11 gas hub, located 130km offshore Bintulu, Sarawak from Sarawak Shell Bhd (SSB), which had operated the hub for the past 38 years.

In a statement today, Petronas said the E11 gas hub has been producing gas since 1982 under the MLNG production sharing contract.

“Today marks a significant milestone for PCSB as the operator of the E11 hub which is pivotal in ensuring reliable, stable and cleaner energy supply to the market, while continuing to develop Sarawak as a regional gas hub,” Petronas vice president of Malaysia assets Bacho Pilong said in the statement.

He said SSB and Petronas had implemented all the necessary activities since July 2019 to ensure a smooth handover of the E11 gas hub.

Source: The Edge Markets

Petronas takes over Sarawak offshore gas hub from Shell

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Circuit board maker PNE PCB Bhd is venturing into the rubber gloves manufacturing and distribution space.

PNE said its wholly-owned subsidiary, PNE Glove Sdn Bhd, plans to set up five glove production lines with each making approximately 300 million pieces per year.

“On an annual basis, it expects to contribute around 1.5 billion pieces of gloves to narrow global demand-supply gap,” PNE said in a statement today.

PNE Glove has also entered into a lease agreement with GP Autobat Sdn Bhd to lease certain industrial buildings located in Klang, Selangor to house its future glove production operations.

“The group’s decision to diversify its business into the production of gloves comes amidst the swell in demand as a consequence of the Covid-19 pandemic,” it said.

PNE said the capital expenditure to commission and instal all five glove-dipping lines and related facilities is expected to be RM60 million, which will be funded via a fund-raising exercise, bank borrowings and/or internally-generated funds.

“At this stage, the group is in the midst of identifying suppliers/distributors for the supply of raw materials required for the production of rubber gloves.

“The raw materials are expected to be sourced locally and/or overseas. This is subject to the lead time for the set-up, installation and commencement of the glove-dipping lines and availability of raw materials,” it said.

The production of rubber gloves is expected to commence in stages by the fourth quarter of 2021.

Going forward, the new business is expected to contribute 25% or more to the net profit of the group.

Meanwhile, the Malaysian Rubber Glove Manufacturers Association (MARGMA) has projected Malaysian exports of rubber gloves to reach between 250 billion and 270 billion pieces in 2020, an increase of between 33.69%and 44.39% from 2019 due to the ongoing pandemic.

For the year 2021, MARGMA estimates Malaysia’s rubber glove export revenue to hit RM34 billion amid an annual demand growth rate of 15% to 20%.

Globally, demand for gloves is set to reach 420 billion pieces.

Source: Bernama

PNE PCB ventures into rubber glove production, distribution

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Malaysia has been positioned as a place for business in the global community and the government understands the importance of attracting investments, said Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz.

Despite a tumultuous 2020, he said Malaysia continued to draw foreign direct investments (FDI) and domestic direct investments (DDI), recording a total of RM109.8 billion in approved investments involving close to 3,000 projects in the manufacturing, services and primary sectors for the first nine months of 2020.

In this regard, he said 59.5 per cent (RM65.3 billion) was from the manufacturing sector, 39 per cent (RM42.8 billion) from the services sector, and 1.5 per cent (RM1.7 billion) from the primary sector.

“Through Penjana Kapital, we recently facilitated the commitment by eight international venture capital fund managers together with the government to invest up to RM1.57 billion into Malaysia startups in the fields of fintech, edutech, agritech, mobility and AI, which are set to create 1,800 high-skilled jobs in the process,” he said in his speech at the 13th Annual CGS-CIMB Malaysia Virtual Corporate Day 2021.

Zafrul referred to a recent report by EY citing Kuala Lumpur as a key location for multinational corporations and the international business community, considering factors such as integrated infrastructure facilities, diversity and quality of human resources, as well as Malaysia’s readiness to adopt digital technology.

He also referred to a Bloomberg report that ranked Malaysia fifth among emerging economies as a key destination for investment and businesses, on the back of potential rapid economic recovery, stable fiscal and financial position.

On another note, Zafrul said the government also aimed to create 500,000 jobs this year, one of the biggest agendas under Budget 2021.

“For this, apart from RM3.7 billion allocated under the JanaKerja initiative, which includes hiring incentives, reskilling and upskilling and short-term employment in the public sector and among GLCs, it is equally important to note that this is the first time in Malaysia’s history that the government has set up a National Employment Council, chaired by the Prime Minister himself, and with participation from relevant Ministries such as MOF, Education, Higher Education and Human Resource.

“This shows seriousness on the part of the government to generate employment,” he said.

Zafrul said despite Fitch’s revision of Malaysia’s sovereign ratings, demand for government bonds remained high with bid-to-cover ratio of 2.6 times for a 10-year government sukuk issued in early December.

“This was a solid recognition of Malaysia’s crisis response efforts and strong economic fundamentals,” he said.

However, the minister said there is a major caveat to the country’s economic recovery and growth.

“Rising daily infections could undermine efforts to achieve our forecast and projections in 2021 and beyond. As such, we must all continue to be vigilant. We may have won many battles, but we must win the war against Covid-19.

“As such, Malaysians businesses and individuals alike, must not be complacent. Let’s stand united against Covid-19, and we shall prevail,” he said.

Source: Bernama

Finance minister: Govt understands importance of foreign direct investments

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KESM Industries Bhd will be investing in new factory space in Malacca with over 100,000 square feet to support future growth in burn-in and test of automotive semiconductors, according to its executive chairman and CEO, Sam Lim.

“We are taking a long-term view that the global car market will turn around and continue to grow,” Lim said in a statement.

He pointed out that the group serves five of the top 10 largest car semiconductor manufacturers in the world and the move towards electric and autonomous vehicles will see increased semiconductor content per vehicle.

Semiconductor reliability is a top safety concern for all new car designs, the executive chairman pointed out.

In tandem with governments’ support across the world for reduced emissions from cars, KESM is ready to ride the wave of the electric vehicle revolution.

Lim acknowledged the global car market weakened significantly last year, although the increase in semiconductor content used in cars has offset the decline in production volumes.

However, the challenges brought about by the Covid-19 pandemic are still far from over.

Despite the significant drop in volume, the group’s balance sheet remains strong as its cash pile strengthened to RM230 million from RM200 million.

On the back of its performance, its board declared an interim dividend of 1.5 sen per ordinary share, totalling RM600,000 on Aug 25, 2020 as well as a final tax-exempt dividend of 6 sen per share.

Collectively, Lim pointed out, the two dividends of 7.5 sen have translated into a high dividend payout ratio in spite of a weak performance.

“We operate in a highly capitalised market. With our strong financial health, we are taking advantage of this lull period to invest in training, upgrade our equipment and to benefit from the growing global automotive industry when the chips are up,” he said.

When the pandemic restriction gradually relaxes, the CEO projected to see a faster rate of recovery in its business activities.

Source: The Sun Daily

KESM unfazed by market downturn, to invest in new factory space in Malacca

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Aerodyne Group, an international DT3 (drone tech, data tech, and digital transformation) solutions provider, has inked a partnership agreement with Germany-based Quanto AG and Taku International LLC to expand Aerodyne’s pioneering drone solutions and services to potential customers in Austria, Switzerland, and Germany.

Quanto and Taku will offer Aerodyne’s smart drone solutions and innovative data analytics technologies to businesses across industries. This includes the DT3 company’s AI-powered, end-to-end cloud-based asset management solution, “vertikaliti”.

Aerodyne Group COO Rossi Jaafar said the strategic collaboration will benefit its German, Swiss and Austrian markets with optimum value proposition for drone services with cutting-edge intelligence and analytics.

“”I am very much looking forward to the partnership with Aerodyne. We observe a clear market trend for DT3 solutions, integrated in the backend systems of our customers,” said Quanto managing partner Jens Brakhage said.

Meanwhile, Taku managing member Karin Hollerbach said the collaboration enables the parties to bring drone data acquisition and integration solutions to its customers that no one of the three companies could do on their own.

Quanto is a leading IT and management consultancy in the DACH (comprises Germany, Austria and Switzerland) region, while Taku has expertise in the Internet of Things, artificial intelligence, and aviation-based sensor technologies for both manned and unmanned aircrafts, as well as related services.

Source: The Sun Daily

Aerodyne expands to Austria, Switzerland, Germany

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The anticipated ratification of the Regional Comprehensive Economic Partnership (RCEP) in 2021 is projected to usher in a new era of trade as the newly minted trade bloc will be the largest in the world, accounting for a third of the world’s population and close to 30% of global gross domestic product.

Economists noted the deal, which includes Malaysia as part of the 10 Asean member countries, as well as China, South Korea, Japan, Australia and New Zealand, is expected to translate into an additional US$200 billion (RM803.4 billion) annually to the global economy by 2030.

Sunway University Business School professor of economics Dr Yeah Kim Leng pointed out that the RCEP, as the world’s largest trade bloc, represents an important signal of the member countries’ pushback against trade protectionism and anti-globalisation forces that were especially evident in the US under the Trump administration.

“As seen in the tremendous expansion in trade and investment under the Asean-China FTA between 2010 and 2020, the new regional pact when implemented in 2021 is expected to provide Asean economies with a new growth impetus in the coming years,” he told SunBiz.

Yeah opined that the RCEP, coming on the heels of the creation of the Asean Economic Community, will be an important driver of regional economic integration, especially with China that is expected to overtake the US as the world’s largest economy within this decade.

He believes that the trade agreement is unlikely to lead to an EU-type of economic and political integration given the diverse social, cultural, political and economic backgrounds of the member countries.

However, the RCEP is expected to be an important institution to support Asia’s economic dynamism as it is predicted to be the quickest to recover from the Covid-19 pandemic as well as being the fastest growing region in the years to come.

With such developments, the professor recommended the Malaysian government to enhance its investment climate, reduce political uncertainty and strengthen the government machinery to support the establishment of supply chain hubs.

“To complement its abundant land and natural resources, continuing investment in good quality physical and digital infrastructure is also important for regional production centres and logistics and distribution hubs to proliferate so that local and foreign investors are able to benefit from agglomeration effects and economies of scale,” he said.

At present, tariffs on Malaysia’s exports to non-Asean RCEP partners are generally low, ranging from 10.35% for China, 1.52% for Japan, 4% for Australia and 1.88% for New Zealand.

Against this backdrop, Yeah highlighted the facilitation of trade and removal of non-tariff barriers under the RCEP that will boost Malaysia’s diversified exports.

He stated that most manufacturing and primary commodity industries will face increased competition in import and export markets, but Malaysia’s trade openness for most products suggests that the new trade pact will not be disruptive.

“Certain protected industries such as automotive and iron and steel will have to adapt more aggressively to the expected increase in competitive pressures when the RCEP is fully in force.”

AmBank Research chief economist Anthony Dass noted that most RCEP countries already have bilateral free trade agreements (FTAs). As such, the impact of RCEP on trade is likely to be mainly on the countries that currently don’t have bilateral FTAs, that is, China-Japan, and Japan-South Korea,” he said.

Nonetheless, Dass estimated that 90% of the goods traded in the region will eventually achieve zero tariffs, except for some agricultural and other sensitive goods.

Domestically, he foresees this could possibly benefit a wide range of manufacturing and service sectors, from banking & finance, ICT, electrical & electronics, chemical & chemical products, rubber products and plastic products as well as machinery & equipment.

“Nevertheless, the textile and apparel industry is expected to face competition from lower-cost producers in the RCEP region such as Vietnam. Likewise, the timber and timber product industry,” said the chief economist.

Source: The Sun Daily

Will RCEP usher in a year of trade for Malaysia?

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The demand for technology has in turn created an urgent and unprecedented demand for tech talent, and there is a rising requirement for digital skills in every function across an organisation, such as (and not limited to) accounting & finance, human resources, sales & marketing, research & development (R&D) as well as risk & compliance, according to Randstad Malaysia.

The global recruitment agency expects technology-empowered industries such as e-commerce, fintech, logistics & supply chain, manufacturing, R&D, as well as medtech & biotech, will continue to see solid growth in 2021.

In the 2021 edition of its Market Outlook & Salary Snapshot, it said the focus on technology advancements and talent development has created more job opportunities for the local workforce.

Randstad Malaysia and Singapore managing director Jaya Dass said organisational technology readiness was a critical focus in 2020, and it will continue to be for the years to come.

“Companies’ increasing focus on digital transformation will drive talent demand and shape the local workforce in 2021. There will be demand for highly specialised talent, particularly in areas such as Internet of Things (IoT), software development, cloud computing, artificial intelligence, blockchain technology, robotics, project migration and change management.”

She added that Covid-19 will continue to impact business and consumer confidence, and Malaysia’s growth will depend on both the recovery of global powerhouses and domestic market performance.

“With change and innovation as a constant, companies must stay agile and find new pockets of growth in 2021. As a global talent recruitment agency with a strong local market focus, it is important for us to start putting people to work so that we can achieve recovery and growth together.”

In the technology industry, Randstad Malaysia predicts four potential areas of technology growth in 2021 – cybersecurity, Software-as-a-Service conferencing solutions, e-commerce, and IoT.

Aligned with its projections on market growth, it said experienced talent in cybersecurity, app development, DevOps and digital marketing would be highly sought-after in 2021.

In the manufacturing industry, it anticipates hiring activities will remain stable in 2021, as the sector is expected to be resilient despite the pandemic. In the future, most jobs in manufacturing will likely have a digital element, so it is important for candidates to be equipped with strong digital skills so that they can do their work more effectively and efficiently.

In the construction industry, Randstad Malaysia said, hot jobs are in contract management, tender management, quality assessment and control as well as project management.

Randstad Malaysia pointed out that these roles have a crucial part in ensuring cost efficiency and profitability throughout the project lifecycle. Common technical skills that employers look for include BIM, IBS, Quality Assessment System in Construction and the Construction Quality Assessment System. Other in-demand soft skills would include stakeholder management, time management and vendor negotiation.

Randstad Malaysia expects digital technology-empowered industries such as e-commerce, fintech, logistics & supply chain, manufacturing, R&D, as well as medtech & biotech to continue to see solid growth in 2021.

Source: The Sun Daily

Urgent and unprecedented demand for technology talent: Randstad Malaysia

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Clean energy solutions company, Plus Solar Systems Sdn Bhd believes that government policies, digitalisation and smart grid initiatives will act as growth catalysts in the Malaysian renewable energy (RE) industry.

Plus Solar chief executive officer and co-founder Ko Chuan Zhen said the government has recognised solar energy generation as a key contributor towards the national 20 percent RE goal by 2025 with the announcement of the Net Energy Metering (NEM) 3.0 programme last week.

“The NEM 3.0 programme provides an opportunity for more users to install the solar photovoltaic (PV) systems on the roof of their respective buildings or homes for electricity bill reduction.

“Through the programme, end-users in the industrial and commercial sectors have seen significant savings, and this will continue to drive up the trend for clean energy,“ he said in a statement today.

Ko noted that Budget 2021 highlighted sustainable energy initiatives that are consistent with the United Nations’ Sustainable Development Goals, and these initiatives would place Malaysia in the right frontier alongside leading nations.

“Industry experts have singled out the one gigawatt (GW) solar development tender by the Energy Commission, expecting it to unlock RM4 billion in investments and create an estimated 12,000 new jobs.

“Solar farms have been our focus area as the company has successfully completed projects with a total capacity of 100-megawatt peak (MWp) under the government’s large-scale solar projects programme,“ he said.

These government initiatives provide opportunities for local players and aim to stimulate the country’s RE industry in the midst of the Covid-19 pandemic, he added.

“Worldwide, business owners are asking if more can be done to lower energy costs beyond simple solar setups.

“With this, we foresee the digitalisation of energy to be a trend adopted across commercial and industrial buildings in Malaysia,“ Ko said.

He noted that one of the major strains faced by businesses is managing operating expenses under financial pressures while having to optimise energy consumption.

A recent survey by audit firm PriceWaterhouseCoopers showed that 71 percent of Malaysian businesses attempted to reduce operating expenses to survive pandemic challenges.

Meanwhile, Ko said with time and continued clean energy adoption, smart energy grids will form.

A smart grid is an electricity network which enables a two-way flow of electricity and data with digital communications technology, which can detect, react and proact to changes in usage and multiple issues.

The progress can be seen in Tenaga Nasional Bhd’s RM2.7 billion investment into the “Grid of the Future” technologies that would place smart meters in Melaka and the Klang Valley, he said.

Another example is Petroliam Nasional Bhd’s newly launched solar energy and installation service firm, which includes battery storage among its fleet of offerings for commercial and industrial customers.

“Efforts ranging from government initiatives and policies to energy efficiency and battery storage are all steps in the right direction as we pursue cleaner, greener energy for a better Malaysia.

“With the attractive Green Investment Tax Allowance by the Malaysian Investment Development Authority and NEM 3.0 in place till 2023, people will begin to realise that solar energy is no longer a luxury but an affordable essential,” Ko said.

Industry players such as solar energy solution providers, policymakers, financial institutions and investors all have an important role in making this a reality, towards a vibrant RE ecosystem for Malaysia, he added.

Source: Bernama

Malaysia’s renewable energy industry on the right track — Plus Solar

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