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Malaysia is always at the forefront of digitalisation and is continuing its pioneering role with the recently launched Malaysia Digital initiative – aimed at driving rapid digital adoption throughout the economy, especially among key industries.

This drive is further bolstered by Digital Catalytic Programmes targeting to take the nation to the Industry 4.0 age, with applications like Big Data, Artificial Intelligence (AI) and the Internet of Things (IoT) improving operations and enhancing sustainability practices in key sectors such as oil & gas, agriculture and manufacturing. These applications are already being deployed through the Industry4WRD initiative, in anticipation of the impending national rollout of the 5G network, to further catalyse Malaysia’s prosperous digital future.

At the centre of it all are the country’s communication service providers (CSPs), which are crucial in supporting the rollout of robust, high-performance private wireless networks.

Deploying smart solutions via private wireless networks

With its digital-first initiatives, Malaysia’s key industries are accelerating their digitisation, which are being realised via smart operations, usage of Industry 4.0 applications and business facility development.

Malaysia’s leading industries must undergo digitisation in this critical period. The oil & gas sector is one of the country’s leading industries, but it has to weather volatile periods as energy demands fluctuate according to changing global events. Hence, there is a need to stay on top of these changes through digital transformation. Meanwhile, smarter factory operations can help Malaysia’s manufacturing sector reinforce its position as a key global supply chain hub, especially for electronic chips and rubber products. Also, with the country shifting its focus towards growing its agriculture sector due to food insecurity concerns, AgriTech is being prioritised to yield better crops using today’s technology.

These industries must maintain their competitive value by embracing Industry 4.0 applications delivered through private wireless networks. Such networks have the performance required to facilitate the digitisation of operations, such as helping facilities boost their capabilities via remote diagnostics, alongside harnessing artificial intelligence and machine learning (AI/ML) to sense operational faults.

However, the pertinent challenges within the current network technologies landscape are high fragmentation, lack of flexibility and dependability as well as inability to provide high-bandwidth connectivity. This is where private wireless networks can be game-changing, as they use dedicated equipment and services for a specific enterprise, site or geographic area. This can help solve many of the challenges of current networks cost-effectively, while also enabling new, higher-value applications.

The 5G difference

Adding the 5G connectivity layer atop private wireless networks can make a significant difference in digital operations. 5G provides the speed, security and reliability required to drive new processes – raising the bar for efficiency and operational throughput, in addition to enhancing collaboration, worker safety and remote expert support as well as optimising maintenance through proactive and predictive models.

5G’s rollout will be particularly transformative for Malaysia’s key industries. It can enable the collection of real-time data which will be critical in providing operators with informed, data-driven decision-making, minimising dependency on wired technologies, leading to smart and less faulty processes. This is because 5G provides ultra-reliable and low-latency system designs, allowing for seamless communication between people, machines and sensors without losing data integrity.

Therefore, Malaysia’s key industries can benefit from 5G-enhanced private wireless. For manufacturing, private wireless networks help manufacturers collect, use and host their data on-site so that the collected data can be transmitted safely and enable the network to run efficiently. Factories can utilise a multitude of 5G-enabled technologies like edge computing, big data, and IoT through private wireless networks so that they can have larger-scale automation to ensure their operations run autonomously and self-correct. They can also run diagnoses of their machinery to determine which device is close to malfunctioning, allowing them to proactively conduct maintenance and repairs.

For the oil & gas sector, as oil rigs in Malaysia often operate offshore, critical communications between the oil rig platform and the operations centre must be maintained to monitor core operations and extraction processes. Installing a private wireless network will ensure seamless connectivity for communications between the centre and the oil rig platform with no lag or downtime. Private wireless networks also allow for digitalised and automated pipeline engineering solutions, with data being organised and transferred within the company’s operations, smoothening the process and allowing the network to run more efficiently.

Meanwhile, Malaysia’s agriculture sector, especially through initiatives such as the eLadang programme, can utilise Industry 4.0 applications like data analytics and AI. This helps to better analyse crops and determine smarter solutions to mitigate situations that affect crop production such as extreme weather conditions. Moreover, farmers can use automated robots or drones to assist in labour-intensive work like planting, watering crops, distributing fertilizer and harvesting. This allows them to focus on quality control and smarter farm management, opening opportunities to use digital solutions to improve food production.

CSPs leading the way to transform key industries

Malaysia is setting its sights on prioritising the digital transformation of its key industries, both digital and physical, to reach greater heights. For these to happen, CSPs will play a leading role in ensuring sufficient network connectivity to propel the industries forward, which will drive the country’s economic growth.

Beyond that, CSPs can also explore how 5G can enhance the development and harness more advanced applications for its key sectors to move forward. This will help ensure a smoother transition towards using more Industry 4.0 tools, transforming their operations to remain competitive and relevant in today’s digital era.

Datuk Mohd Rauf Nasir is Managing Director of Malaysia, Sri Lanka & Maldives, Nokia.

Source: Bernama

Driving Malaysia’s Key Industries Forward With Private Wireless Networks And 5G

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Sarawak’s income is expected to increase to RM11 billion in 2025 once its new source of energy can be exported, said Premier Datuk Patinggi Tan Sri Abang Johari Openg.

He was cited in a Sarawak Public Communications Unit (Ukas) report as saying Sarawak can be proud of being the most advanced state in the country in the development of new energy such as hydrogen and with regard to carbon storage.

“These are all new ways to increase income. When we can generate income, only then would investment come in. When we have income, we can modernise our economy. We can set up a Sovereign Wealth Fund.

“Furthermore, we need to save the income because we need liquidity. Our savings must be there,” he was quoted saying during the closing of the High-Performance Team (HPT) Retreat 2022 for Sarawak Civil Service at the Langkawi International Convention Centre in Kedah on Saturday.

Abang Johari called on the state’s civil servants to adopt a culture of innovation in line with the rapidly changing world, stressing that the future depends on utilisation of new methods – including the use of technology – when performing daily tasks.

“That is why we (Sarawak government) implemented the digital economy (policy) and I (had) instructed the State Secretary to immediately organise the International Digital Economy Conference Sarawak (in 2017) because we know that technology is advancing and the world depends on technology.

“And the new economy is based on digital methods,” he said.

At the same time, the Premier hoped civil servants would be aware of every initiative implemented by the Sarawak government, especially the Post Covid-19 Development Strategy (PCDS) 2030 to facilitate better public service delivery.

“All state civil servants need to understand and have a shared commitment to achieve what has been outlined in the PCDS, of which is to drive Sarawak to become a developed state in Malaysia with a high income,” he said.

Abang Johari also said allocations will be provided to enable officers at the middle management level to continue their studies even abroad and improve their skills and competency.

“If they want to advance themselves to PhD level, if there are institutions that can accept them, we can do it, and this includes (going to) Harvard University, Massachusetts Institute of Technology (MIT), Oxford University, Stanford University or Silicon Valley. We must give exposure to civil servants.

“And I will provide allocation for civil servants to continue their studies,” he said.

Meanwhile, State Secretary Datuk Amar Mohamad Abu Bakar Marzuki said Sarawak civil servants have given their commitment to ensure that the state’s agenda will be successfully achieved.

He said Abang Johari, whom he named as ‘Father of Innovation’ had moved fast in introducing numerous innovative ideas since assuming the state’s leadership.

“As such, the Sarawak civil service must also move as fast as the Premier to keep up with his momentum,” he said.

The State Secretary also said all heads of departments will continue to go frequently to the ground to keep tabs of the developments going on in all districts.

He also paid tribute to past state secretaries Tan Sri Datuk Amar Mohamad Morshidi Abdul Ghani and Datuk Amar Jaul Samion as pioneers in initiating the annual retreat which served as an effective avenue to bring Sarawak forward.

The four-day retreat is attended by more than 200 heads of departments and officers from all the state agencies, departments, statutory bodies, local authorities and GLCs.

The retreat ‘themed Revisit, Rethink and Recharge’ aimed to gauge new ideas and innovations to enhance the service of the state civil service.

A total of eight papers were presented and deliberated, namely SCS Talent Development and Management; Enforcement and Safety; Rural Transformation; Digital Economy; Revenue Reengineering for Local Authorities; Post Covid-19 Development Strategy 2030; Development of Local Talent Management and Foreign Workers; and Residents and District Offices Divisional Transformation.

Also present were state Transport Minister Dato Sri Lee Kim Shin; State Attorney General Datuk Seri Talat Mahmood Abdul Rashid; State Financial Secretary Datuk Seri Dr Wan Lizozman Wan Omar; deputy state secretaries; permanent secretaries; and heads of departments.

Source: Borneo Post

Export of new energy will boost Sarawak’s income to RM11b in 2025, says premier

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The Eight Developing Countries Education City (D-8 Education City) involving an investment worth over RM2 billion will be developed in Taboh Naning here in the next 15 years.

Melaka Chief Minister Datuk Seri Sulaiman Md Ali said the D-8 Education City which focuses on the development of Islamic-based education will be a three-phase process involving an area of 149.73 hectares.

“The first phase of the D-8 Education City which is estimated to be worth RM1 billion is currently in progress and expected to be completed within five years.

“The development of this education city is an initiative of Yayasan D-8 Malaysia following a strategic collaboration which was finalised in Dec 2018 between the D-8 Organisation and Al-Hidayah Group,” he said after a thanksgiving ceremony and launch of the D8 Education City here today.

He said D-8 is an organisation for development cooperation among eight Muslim countries namely Malaysia, Bangladesh, Indonesia, Iran, Pakistan, Turkey, Egypt and Nigeria.

He said a D-8 international management centre, equipped with various shared facilities including libraries, lecture halls and sports complexes would also be located in the education city to manage the administration of development plans.

In addition, Sulaiman said the state government is always open to development in the field of education in efforts to boost learning and elevate the education sector in Melaka.

“The initiative taken by Yayasan D8 Malaysia to develop the D8 Malaysian Education City in Alor Gajah especially in terms of teaching and learning is very much in line with the state government’s policy,” he added.

Source: Bernama

D8 Education City worth over RM2 billion to be developed in Melaka

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Johor maintains its position as the country’s main investment destination, recording the highest investment for the January to September period this year, amounting to RM63.9 billion.

State Investment, Trade and Consumer Affairs Committee chairman Lee Ting Han said based on statistics from the Malaysian Investment Development Authority (Mida) on Dec 14, the recorded investment was almost 33% of the total national investment during the period, which stood at RM193.7 billion.

The services sector still dominates investment in the state at RM55.06 billion, followed by the manufacturing sector with RM8.84 billion, and the primary sector with RM25 million.

“A total of 340 projects were approved by Mida, while the number of job opportunities expected to be created through these investments would be 11,968.

“The statistics indicated that Johor remains the top investment destination in the country, mainly due to an investment and industrial ecosystem that meets the criteria of foreign and domestic investors,” he said in a statement on Friday (Dec 16).

Lee also said that the positive performance was also contributed by the provision of quality and highly-skilled human capital, political stability in the state, and adequate utilities, land and infrastructure such as ports and good basic amenities.

Meanwhile, he said Johor is also set to attract more investment in the digital, medical devices and advanced manufacturing, as well as related support industries.

He said this was evident through recent investments from foreign countries such as Insulet Corporation from the United States and Singapore, which are building factories for the production of medical devices, namely the omnipod insulin management system.

“Similarly, China’s GDS Holdings Ltd and Bridge Data Centres, as well as Malaysia’s YTL Power International Bhd are developing their own large-scale data centres, whereas Taiwan’s Wiwynn Corporation has opened a printed circuit board manufacturing facility,” he said.

Lee said the investment will also create high-skilled and quality job opportunities for the state, in addition to bolstering competitiveness.

Therefore, he lauded the initiative from the Digital Investment Office — a collaborative platform between Mida and Malaysia Digital Economy Corporation (MDEC) — in creating a unique business climate and spurring investment in digital projects, especially the development of data centres in Johor, which is the biggest contributor to this year’s increased investment.

Source: Bernama

Johor draws RM63.9b in investments for Jan-Sept period, remains top investment destination

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Vinda Southeast Asia (Vinda SEA), a unit of Hong Kong-listed Vinda International Holdings Ltd, has opened its new regional hub in Bandar Bukit Raja, Selangor.

Vinda SEA president Su Ting Nee said the investment of over RM600 million to set up the hub represented the company’s commitment to Malaysia.

“With the new Vinda SEA Regional Hub, we anticipate our regional production capacity will increase by 20 per cent. We will also be developing an additional 20-acre (8.09 hectare) site in the future,” Su said today.

Local talent development would be prioritised, said Su, adding that the new facility currently housed over 1,400 staff with 99 per cent of them belonging to the local community.

The regional hub will serve over 25 markets and employed concepts of Industrial Revolution 4.0 (IR 4.0).

The site comprises a double-storey manufacturing plant with raw material warehouse, an automated finished goods warehouse, a distribution centre, the Vinda Innovation Centre, and a six-storey management block.

The company said it had enhanced effectiveness at every stage of the supply chain and boosts efficiency while simultaneously reducing the costs of production.

Vinda SEA also said it would be investing heavily in training to upskill its workforce and vendors to meet the requirements of the new technologies.

The 12.14 hectare site has incorporated green features and is ecologically sound, with minimal environmental impact and carbon footprint.

Vinda SEA has pledged to be net zero carbon by 2025.

Source: NST

Vinda invests RM600mil on new Southeast Asian hub in Selangor

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The Ministry of International Trade and Industry (Miti) is aiming to maintain synergy and momentum with business communities, particularly in responding to and preparing for economic challenges.

Minister Tengku Datuk Seri Zafrul Abdul Aziz said Miti remains open and ready to listen to and facilitate business communities.

“Restoring investors’ confidence following the pandemic remains a top priority for Miti,” he said on his twitter page on Friday (Dec 16) after a meeting with the American Malaysian Chamber of Commerce (Amcham) recently.

Tengku Zafrul said the role of business chambers and councils such as the Amcham and the US-Asean Business Council in these efforts is critical.

“Malaysia and the US have had a strong political and economic relationship since our independence in 1957.

“So, it gives me great pleasure to discuss efforts to strengthen our relationship with the US Ambassador to Malaysia Brian McFeeters,” he added.

Source: Bernama

MITI aims to maintain synergy, momentum with business communities

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The European Union (EU), as one of the major economic blocs, should engage Asean more closely due to its vast market opportunity, said Deputy International Trade and Industry Minister Liew Chin Tong.

He suggested that gaps in capacities and resources between the two blocs could effectively be narrowed through various support such as targeted funding, technology transfer as well as capacity building programmes.

“Both regions should engage more closely in several high-value-added areas for the mutual benefit of both Asean and the EU,” he said during a fireside chat session at the 10th Asean-EU Business Summit in Belgium earlier this week.

Liew also stressed on the importance of both regions to support each other on building a middle-class society in Asean, according to a statement issued by the International Trade and Industry Ministry (Miti) today.

The fireside chat session was held with European Commission executive vice-president and trade commissioner Valdis Dombrovskis and moderated by EU-Asean Business Council executive board member Noel Clehane.

The business summit, which gathered prominent political leaders, business leaders and government officials from both the EU and Asean, was held as a sideline to the 45th Asean-EU Commemorative Summit.

Liew was accompanied by senior officials from Miti as well as its representatives in Brussels.

Souce: Bernama

EU should engage Asean more closely due to vast market opportunity, says MITI deputy minister

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Investment prospects in Malaysia have risen dramatically because of the country’s prolonged economic interaction with the global economy.

“As the Malaysian economy undergoes transformation, we must continue to develop the people’s core competencies so that our workforce can compete effectively in the global economy for the benefit of the country, attracting high-tech investments and transitioning to new sectors of comparative advantage,” said Tan Sri Dr Sulaiman Mahbob, chairman of the Malaysian Investment Development Authority (MIDA).

He said the agency had launched measures to develop a future-ready workforce to meet economic difficulties and to maintain the country’s status as a leading investment destination in the region.

Combining these activities and a skilled labour force will increase international investment prospects, he said.

“We accomplished a great deal last year, setting new highs in approved investments across manufacturing, services, and primary sectors to the tune of RM309.4 billion.

“The investors would come if their investment situate in a clean environment with transparent regulations and if we work together with the government and business sectors to create a hardworking and productive workforce,” he told Bernama.

In order to attract more investments into the country, it is important to have political stability with clear direction coupled with a pool of skilled workforce.

He said the manufacturing sector would benefit from more investment since “the younger workforce is technically capable, and those in the field are keen to expand their abilities.”

Between January and September 2022, Malaysia succeeded in attracting RM193.7 billion worth of approved investments in the manufacturing, services, and primary sectors, involving 2,786 projects.

These projects are expected to create 98,414 job opportunities.

ESG Initiative To Attract Investments In The Digital Economy

“Our economy is open to cross-border investments and our expertise in developing projects is world-class. These factors will contribute to a rapid increase in digital infrastructure,” Sulaiman said.

He added that the government’s strong support for information technology (IT) makes it the preferred destination for tech investors.

Malaysia is an attractive investment location for data centres, especially hyper-scale ones, and the country’s investor-friendly policies are backed by a solid infrastructure and the development of renewable energy. The country has an investor-friendly climate that is conducive to business activities, he said.

The needs of the IT industry are driving growth in several industries, including data centre suppliers and server manufacturers. More resources will be required to support the increasing demand for cloud services.

The IT industry also benefits from government policies that promote the growth of domestic players in data services and ICT services in general.

Sulaiman predicts that the data centre market will expand over the next three years as a result of increased funding options made available to businesses by large corporations.

Businesses are encouraged to invest in the sources of renewable energy and use energy-efficient machinery which includes solar panels, wood-burning stoves, biogas and mini-hydropower plants.

Small and medium-sized enterprises that adhere to sustainable development principles have access to funding, he said.

Future Prospects in Malaysia

Despite global challenges, including inflationary pressures, economic uncertainty, and climate change, Sulaiman said Malaysia’s 2023 economic growth forecast remains positive.

Next year’s gross domestic product (GDP) growth is expected to be between four and five per cent; the government plans to keep fiscal and non-fiscal support high to promote economic activity to maintain the GDP growth momentum.

“We are poised to develop a new paradigm in our investing environment,” he said, drawing on previous lessons and experiences.

He promised that under the New Investment Policy (NIP), which prioritises the development of innovative, high-impact, high-tech investments essential to create high-skilled jobs, MIDA will seek after such investments in order to promote socioeconomic development and trade growth.

“We want to challenge ourselves, put in long hours and develop our style as a group. Malaysia is still the region’s top choice for foreign direct investment,” he said.

Malaysia is a promising market for companies seeking to grow their operations because of its business-friendly administration and connectivity to other countries in the region.

“MIDA strives to guarantee our investors are set up for success before they even come to Malaysia, via means such as fostering the development of businesses and local talent.”

Source: Bernama

Malaysia to focus on core competency of workforce to up prospects – MIDA Chairman

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Ni Hsin EV Tech Sdn Bhd (NH EV Tech), a wholly-owned subsidiary of Ni Hsin Group Bhd, has signed a strategic collaboration agreement with Sirim Bhd to set up a lithium-ion battery recycling plant in Malaysia through a public-private partnership funding model.

Both parties will also cooperate on providing an ecosystem for a circular economy model to mitigate the impact on the environment due to lithium-ion batteries being processed illegally in the country.

The companies will set up a lithium-ion battery manufacturing plant in the country and introduce a lithium-ion battery recycling policy by working with the government.

NH EV Tech managing director Khoo Chee Kong said the company is looking forward to unlocking another piece of the environmental puzzle following its launch of EV motorcycles last month.

“As the world has grown to love and depend on the power and convenience brought by lithium-ion batteries (LIBs), their manufacturing and disposal have increasingly become subjects of political and environmental concerns.

“Most discarded LIBs eventually landfilled or stockpiled, contaminating the land while wasting energy and non-renewable natural resources. If not recycled and reused, LIBs will exert massive environmental impacts and accelerate the depletion of mineral reserves,” he said.

He added that during the end-of-life stage of LIBs, poor handling and disposal could increase the risk of fire or poisoning.

“In the coming years, the real challenge will be disposing of the huge number of batteries from electric vehicles.

“There is now a need for qualified e-waste recyclers that can handle and recycle LIBs safely and responsibly,” said Khoo.

He noted that setting up the recycling plant is the right step in furthering Ni Hsin’s green mission in support of the government’s commitment towards more sustainable, resilient and inclusive development in line with the United Nations’ 2030 Sustainable Development Goal (SDG).

Sirim president and group chief executive officer Datuk Indera Dr Ahmad Sabirin Arshad said the company is ready to work with any parties keen to explore any form of recycling business where they can contribute in terms of the latest technologies.

The Sirim-Ni Hsin lithium-ion battery recycling pilot plant will be fully operational in 2023 with an annual recycling capacity of 550 tonnes of lithium-ion batteries.

For a start, the output will be sold to lithium-ion battery manufacturers in the form of black mass.

“Under this collaboration, both companies will focus on recovering precious metals such as lithium and cobalt in 2024 and embark on lithium-ion battery manufacturing in 2025, when the volume by processing more lithium-ion batteries from other nations,” added Ahmad Sabirin.

Source: NST

Ni Hsin Group’s unit collaborates with Sirim to setup lithium-ion battery recycling plant

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Lynas Malaysia can be a catalyst for investment in the nation’s green energy and critical mineral sector, as Malaysia is home to the only significant non-Chinese supplier of rare earth elements (REEs), said chief operating officer of Lynas Rare Earths, Pol Le Roux.

He said other Asean countries have been able to attract billions of foreign direct investment in downstream manufacturing of high performance magnets and other related technologies which need rare earth elements and create thousands of new jobs.

“As an example, the development of a Malaysian super magnet factory to serve the automotive industry could produce 5,000 tonnes of NdFeb (Neodymium Iron Boron) magnets and create up to 5,000 jobs and investment of RM1 billion,” he said in a statement in conjunction with the “Mastering the Knowledge of Non-Radioactive Rare Earth Elements for Future Sustainability” conference that was held here on Thursday (Dec 15).

According to Le Roux, Malaysia has the opportunity to be a world leader in an industry that supports technologies used every day, like cars and smartphones, as well as future facing industries such as electric vehicles and wind turbines.

Meanwhile, Lynas Malaysia vice president Datuk Seri Mashal Ahmad said Malaysia should take full advantage of its rare earth deposits and its downstream activities such as cracking and leaching, solvent extraction and product finishing.

He said the country is well positioned with downstream rare earths processing expertise at Lynas’ factory in Kuantan, Pahang, and therefore, the energy crisis provides opportunities for Malaysia to move forward upstream and downstream.

“A national rare earths policy or framework would be the ideal next step to promote future developments in Malaysia’s downstream industry. Malaysia has a strategic advantage as home to the only significant non-Chinese supplier of rare earth products and we can utilise this competitive advantage to further develop the local rare earths and advanced manufacturing industries,” he said.

Mashal said Lynas Malaysia has spent over a decade developing in-house global expertise in the field, whereby rare earths processing at Lynas Malaysia has created an estimated 4,600 jobs in the Malaysia economy, including almost 900 direct jobs and contributed RM4.8 billion to Malaysia’s gross domestic product since 2013.

“Malaysia needs more high paying jobs to address the rising cost-of-living, and jobs at Lynas Malaysia are high value jobs which are good for our people. Further development of the industry will create new highly-skilled jobs in Malaysia and provide a local source of supply to Malaysian manufacturing industries, including motor vehicles and electrical appliances,” he said.

Marshal also pleaded that the government standardise and not change regulations regarding rare earth element processing too often, to attract and keep investors in the industry.

“For investors to come into the country and to invest billions of dollars, they will create thousands of jobs; it is very important that the regulations are not changed every now and then,” he said.

He added that Malaysia must not let this opportunity of having the biggest REEs supplies outside China to slip away and start focusing on local REEs processing, as well as expand its role in the global rare earth manufacturing industry, instead of letting Vietnam use Malaysian resources.

Source: Bernama

Lynas Malaysia can be a catalyst for investments in green energy, says Lynas Rare Earths COO

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Bilateral trade volume between Malaysia and South Korea surpassed US$20 million (US$1=RM4.41) for the first 10 months of 2022, said South Korea Ambassador to Malaysia Yeo Seung Bae.

He said the significant increase was driven by the semiconductor, electrical and electronic products (E&E) industry and petrochemical products.

“Last year, trade volume between both countries exceeded US$20 million and it is expected to grow more and set a new record high again this year. Investment by Korean companies will continue to increase in Malaysia.

“We would like to upgrade and expand the scope of cooperation between both countries. Now, we are very much interested in the high-tech industry and also green and renewables energy sectors,” he said after the launch of the official logo to commemorate the 40th anniversary of the Look East Policy (LEP) between Malaysia and South Korea, which enters its 40th year of implementation in 2023.

LEP was introduced in 1982 by the fourth prime minister Tun Dr Mahathir Mohamad, with the objective of learning from the experiences of both South Korea and Japan in nation-building.

The newly-launched official logo aims to reflect the robust bilateral linkage between the two countries, which consists of the flag colours of the two countries, among others.

The renowned landmarks of the two countries, namely the Petronas Twin Towers and the Kwang-hwa-moon or the main gate of the Royal Palace Gyung-bok-gung, arealso prominently portrayed in the logo.

Ministry of International Trade and Industry (MITI) deputy secretary general (industry) Datuk Seri Norazman Ayob said at the event that South Korea has always remained one of Malaysia’s top foreign direct investment (FDI) recipients.

“I am confident that there will be more opportunities for both countries to be tapped into, especially in the halal industry, and high-end technologies such as artificial intelligence (AI), Internet of Things (IOT), robotics, smart manufacturing, smart cities, emerging automotive trends and renewable energy, in which Korean companies are renowned for,” he said.

He also applauded the Embassy of the Republic of Korea for spearheading the sharing of best practices on environmental, social and governance (ESG) principles and stressed the importance of both countries tconducting more collaborations on this front under the LEP banner.

Over the span of 40 years, South Korea has become one of Malaysia’s largest foreign investors in terms of implemented projects, with a total investment value of more than US$10 billion last year.

South Korea was also Malaysia’s ninth-largest trading partner, with total trade valued at US$21.30 billion in 2021.

Source: Bernama

Malaysia-South Korea bilateral trade volume surpasses US$20 mil

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Malaysia remains a top investment destination among global investors and a hotspot for business expansion with investors continuing to show confidence to invest in the country with the new leadership focused on strengthening the country’s economic growth and retaining its reputation as a stable investment destination.

Malaysia attracted RM193.7 billion (US$41.7 billion) worth of approved investments in the services, manufacturing and primary sectors involving 2,786 projects from January to September 2022 and is expected to create 98,414 job opportunities in the country. This is a 2.5 % increase as compared with the RM188.9 billion (US$45.1 billion) investments approved in the same period last year.

International Trade and Industry Minister Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz said, “Malaysia’s success in attracting almost RM194 billion of approved investments in the first nine months of the year is a testament of its established standing as a gateway to Asean and an investment destination of choice in Asia.”

He said the Ministry of International Trade and Industry (Miti) and its agencies will ensure that new investment opportunities will build the appropriate capacity and talent base in targeted industries to develop the nation’s economy in a sustainable manner.

Foreign direct investment (FDI) remained the major contributor, at 67.5% or RM130.7 billion (US$28.1 billion), while domestic direct investment contributed 32.5% to RM63 billion (US$13.6 billion). This is a 15% increase compared with the FDI approved in the same period in 2021.

Of the total investments approved, China dominated with RM49.2 billion (US$10.6 billion) followed by the United States RM16.9 billion (US$3.6 billion), the Netherlands RM16.5 billion (US$3.6 billion), Germany RM9.2 billion (US$2 billion) and Singapore RM8.7 billion (US$1.9 billion).

During this period, the services sector assumed a significant role towards driving the country’s economic recovery, accounting for 58.5% of total approved investments with RM113.3 billion (US$24.4 billion). The sector’s stellar performance exceeded expectations for January to September 2022, an increase of 60.9% from the same period in 2021.

The manufacturing sector followed with RM64.9 billion (US$14 billion) or 33.5% and the primary sector with RM15.5 billion (US$3.3 billion) or 8%.

Malaysian Investment Development Authority (Mida) CEO Datuk Wira Arham Abdul Rahman said, “Malaysia enjoys a strong reputation internationally and investors have confidence in us. The nation has a solid foundation to provide opportunities for investors.

“The government is working aggressively to attract more high-quality, high-impact, capital-intensive projects in the manufacturing and services sectors. The government focuses on digital economy, energy and high-value manufacturing activities such as transport technology which includes electric vehicle and its ecosystem that will have a significant economic potential and sustainable long-term growth,” he added.

For the period, the services sector accounted for the largest share of the total approved investments, amounting to RM113.3 billion (US$24.4 billion) from 2,167 projects. This is a significant increase compared with the RM70.4 billion (US$16.8 billion) investments approved for the services sector in the same period last year.

Based on the total approved investments for January to September 2022, foreign investments made up the most significant portion, recording RM69 billion (US$14.9 billion) or 60.9% of the total approved investments for the services sector, while the remaining 39.1% or RM44.3 billion (US$9.5 billion) were from domestic sources.

Malaysia continued to attract high-quality investments in the manufacturing sector from January to September 2022. The sector accounted for RM64.9 billion (US$14 billion) or 33.5% of the total approved investments in various economic sectors, compared with RM103.9 billion (US$24.8 billion) for the same period in 2021.

Of the total approved investments in January to September 2022 for the manufacturing sector, FDI amounted to RM50.2 billion (US$10.8 billion) or 7.3%, while domestic investments contributed to the remaining RM14.7 billion or 22.7%.

Meanwhile, the primary sector recorded RM15.5 billion (US$3.3 billion) approved investments (8%) from January to September 2022, compared with RM14.7 billion (US$3.5 billion) for the same period in 2021. FDI was valued at RM11.5 billion (US$2.5 billion) or 74.2%, while domestic sources contributed the remaining RM4 billion (US$0.9 billion) or 25.8%.

Source: The Sun Daily

Investors show growing confidence in Malaysia

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Spritzer Bhd is banking on demand for bottled mineral water growth in 2023 on the back of a continued rise in economic activities and Malaysia’s various festivals.

The company rolled out another thematic celebration for the year’s end, complete with Instagram-able decorations and exciting activities.

Spritzer’s revenue for the third quarter (Q3) ended 30 September 2023 (FY23) rose by 51 per cent year-on-year to RM119.6 million compared with RM79.3 million in Q3 FY22, and its net profit gained 91 per cent to RM11.4 million compared with RM6.0 million.

According to Grand View Research, the global market for spring water, purified water, mineral water, sparkling water and others is expected to grow at a compound annual growth rate (CAGR) of 6.7 per cent from 2022 to 2030.

The company has now decked out the Spritzer EcoPark from 16 December 2022 to 1 January 2023 with a Winter Carnival atmosphere to spread holiday cheer and togetherness for families and friends.

This carnival features a 28-foot giant Christmas tree partially made of recycled Spritzer Sparkling and Spritzer Natural Mineral Water bottles. At the same time, igloo-like dome houses give a more wintery feel.

Visitors can also enjoy the snowfall available on select days, with four sessions per day and each session lasting 30 minutes.

Other Winter Carnival activities include a giant outdoor bubble, a pedal kart ride, mini golf in the park, and fun fair game stations.

Spritzer encourages reuse and recycling by incorporating conservation and sustainability through eco-tourism in Taiping.

Source: NST

Spritzer banking on demand for bottled mineral water growing in 2023

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THE tech rout that began in the beginning of the year, as the flip from chip shortage to glut intensified, has shaved 40% off the share price of US-based memory chip giant Micron Technology Inc year to date.

One of the world’s largest semiconductor vendors, the Nasdaq-listed company, which has a market capitalisation of US$62.68 billion (RM276 billion), is closely watched by many semiconductor and semiconductor-related firms around the world as it is seen as the bellwether of the sector.

It is certainly not an exaggeration to suggest that Micron president and CEO Sanjay Mehrotra — among the earlier ones to warn of slowing chip demand — is one of the world’s most influential CEOs.

In a rare exclusive interview with The Edge during his recent visit to Penang, the 64-year-old Indian American business executive spoke on the current semiconductor downcycle and Micron’s expansion plans in Malaysia.

He reveals that Micron’s customers are now adjusting their inventory levels downwards, as consumer demand for smartphones and personal computers (PCs) has weakened. At the same time, high inflationary and macroeconomic headwinds have pushed Micron’s customers in other segments into cautionary buying patterns.

“We are seeing a big inventory adjustment, resulting in the weakness in demand to suppliers like Micron. Basically, our customers’ inventories have to come down to normal levels and, therefore, the suppliers’ inventories would also have to come down to normal levels, before we can see improvements in the industry’s revenue and profitability,” he says.

Mehrotra points out that Micron has taken decisive action to cut down its supply growth in the coming years, through capital expenditure (capex) reduction as well as reducing utilisation action in its factories.

“The purpose of these two actions is to reduce our supply growth, so that we can get demand and supply back in balance. One important thing to understand is that this is a near-term challenge due to inventory adjustments by our customers.

“Over the course of the next few quarters, this situation will improve. I can’t tell you exactly when. It all depends on the macroeconomic environment. But as the customers’ inventories adjust to normal, the demand will increase. While the supply reduces, we will also see a balance between supply and demand, and the pricing might improve,” says Mehrotra, who acknowledges that 2023 is likely to be a challenging year, not just for Micron but for the whole industry.

“But I cannot predict for you, how many quarters it (the downcycle) will last. It is important to note that each cycle is different. There is no way to predict the next cycle. Today, the global economic environment is uncertain because of high inflation, the Russia-Ukraine war, China’s Covid-19 lockdowns, as well as other macroeconomic headwinds and weaknesses.”

Despite the setbacks, he believes future business opportunities are tremendous, and that it is Micron’s job to capture these opportunities and, more importantly, to manage the cycles of its businesses.

“Micron is well-positioned to emerge stronger from the current downturn. We will continue to enjoy the growth opportunities brought about by the data economy as we look ahead through the rest of this decade, once we are past this current downcycle.

“We need to position our company to get stronger and stronger through these cycles, and really be a leader in the memory and storage market.”

Mehrotra joined Micron in May 2017 after a long and distinguished career at flash-memory pioneer SanDisk, which he led from start-up in 1988 to its eventual sale in 2016.

In addition to being a SanDisk co-founder, he also served as its president and CEO from 2011 to 2016, overseeing its growth to an industry-leading Fortune 500 company. Prior to SanDisk, he held design engineering positions at Integrated Device Technology, Seeq Technology and Intel.

Mehrotra holds both bachelor’s and master’s degrees in electrical engineering and computer science from the University of California, Berkeley, and is a graduate of Stanford’s Executive Business Programme. He also owns more than 70 patents in flash memory design and systems.

Even though the memory industry is cyclical, Mehrotra insists that through the cycles, and across the cycles, the memory industry continues to grow, because data is more important than ever in all applications today.

“Data is really the backbone of our economic activities, national security and all aspects of our society. The longer-term trends of artificial intelligence (AI), fifth-generation (5G) connectivity, autonomous vehicles, Internet of Things (IoT) and cloud are very much intact. These are all trends that require more data,” he says.

He is of the view that AI needs deeper insights to deliver greater values to businesses, to help them to become more efficient and productive, as well as to create new business models as AI also enables smart experiences on consumer devices through data insights.

“AI is really still in a very early annex. AI relies on more and more data. Cloud, intelligent edge and smart devices make a virtual cycle of increasing data creation and data use. Ultimately, these trends drive greater demand for data, memory and storage products,” he adds.

Additional US$1 bil investment in Batu Kawan

In Malaysia, Micron has two business entities, namely Micron Semiconductor Sdn Bhd, which has operations in Muar, Johor, and Micron Memory Malaysia Sdn Bhd that operates in Batu Kawan and Prai in Penang.

With a total workforce of nearly 5,000 employees here, Mehrotra describes the Malaysian operations as “extremely important” to the Micron group. “Micron had already invested US$1 billion for our first factory at our Batu Kawan site. We built a large 600,000 sq ft factory in Batu Kawan. Quite impressively, the construction was completed during the Covid-19 times, and we have ramped up fully into production since January 2021.”

Today, Malaysia is the Centre of Excellence (CoE) for Micron’s solid-state drive (SSD) assembly and test. It is also the group’s production centre for its dynamic random-access memory (DRAM) modules and other semiconductor memory components.

“For us, Malaysia is really a large CoE for assembly and test operations, where we see silicon wafers in, SSDs out, not to mention research and development (R&D) related to our memory products, our human resources, finance and IT resources.”

Mehrotra says Micron is “extremely pleased” with its investments and strong team in Penang, in particular Batu Kawan, which is why the group is now expanding its production capacity by putting up a second building on the Batu Kawan site.

“The timing of Micron’s investments here is excellent. In 2020, we started building our first factory in Batu Kawan. Now, we are in the midst of building our second factory, which has an even bigger cleanroom and larger factory space,” he remarks.

Combining the first and second factories, Micron’s Batu Kawan site will total some 1.5 million sq ft, and by the time the second factory is ready in 2023, its total investments in that site alone will amount to US$2 billion.

Globally, Micron intends to invest more than US$150 billion over the next decade in leading-edge memory manufacturing and R&D, in a move to address the rising demand for memory.

“Of course, near-term adjustments [on capex] can be made from time to time. But just look at how fast Micron has grown here in Penang. We just started here in 2019, and today we employ nearly 4,000 people in Penang,” says Mehrotra, who reiterates that the company’s investment trajectory in Malaysia will remain strong.

“We had invested US$1 billion for our first building in Batu Kawan. We will be investing another US$1 billion in the next few years for our second building in Batu Kawan. Beyond that, we won’t be able to share with you the exact amount of our future investments in Malaysia, but all we can say is that our investments will not stop at US$2 billion.”

Source: The Edge Markets

Micron looks past semiconductor downturn for opportunities, ramps up investment in Penang

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The government will take measures and approaches to attract quality investments, transition to a low carbon economy, improve social protection, strengthen fiscal resilience to ensure that economic structural reforms are implemented in an orderly manner.

In a posting on his Facebook page today, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said this is to boost growth and strengthen the foundations of the country’s economy.

“InshaAllah, these measures will be implemented with the support of Bank Negara Malaysia (BNM) and all relevant departments,” he said after visiting BNM with both Deputy Finance Ministers Datuk Seri Ahmad Maslan and Steven Sim as well as senior officials of the Finance Ministry to attend a briefing on the prospects, challenges and focus of the country’s current economic policy.

Anwar said BNM also informed about the state of the country’s economy which has strengthened post COVID-19.

“However, the government must think about the current challenges to the national economy by taking into account risks such as slow global growth, conflicts and geopolitical problems at the international level that continue to worsen and disruption to the food supply chain.

“The government will act swiftly with a short-term and long-term approach to deal with this problem,” he said.

Meanwhile, BNM through a tweet on its Twitter page said it also underlined the importance of structural reforms so that the country can attract more quality investment, create job opportunities that generate good income for Malaysians and strengthen the country’s social protection system.

“With the challenges we are facing now, Malaysia needs to give priority to securing the future, whether through a digital economy or an orderly transition to a more sustainable economy.

“BNM will continue to implement the mandate to promote a more sustainable economy for Malaysia,” it said.

Source: Bernama

Quality investments, low carbon economy, social protection among the measures in structural economic reforms – Anwar

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Prime Minister Datuk Seri Anwar Ibrahim has expressed hope that Malaysia’s newly appointed heads of diplomatic missions would adopt fresher approaches in efforts to attract foreign investments back to Malaysia.

In a post on his offical Facebook, Anwar said he today received a courtesy call in Putrajaya from Malaysia’s new heads of diplomatic missions overseas.

“I wished them all the best in their endeavour and hope they can raise the country’s name to a higher level with regard to foreign policy direction,” he said.

Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah presented the letters of appointment to 11 heads of Malaysian diplomatic missions overseas at Istana Negara on Dec 2.

Among those who met Anwar today were Ambassador to Vietnam Datuk Tan Yang Thai, Ambassador to Germany Dr Adina Kamarudin, Ambassador to Senegal Datuk Zainal Izran Zahari, Ambassador to Kazakhstan Mohd Adli Abdullah and Ambassador to Laos Edi Irwan Mahmud.

The others present were Ambassador to Jordan Mohamad Nasri Abdul Rahman, Ambassador to Uzbekistan Ilham Tuah Illias, High Commissioner to Pakistan Mohammad Azhar Mazlan, High Commissioner to New Zealand Mazita Marzuki and High Commissioner to Sri Lanka Badli Hisham Adam.

Source: Bernama

Anwar tells M’sian diplomats to use fresher approaches to woo foreign investors

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Malaysia has the potential to become a regional hub for vocational and technical training to people of other countries in the region, says Japan’s Ambassador to Malaysia Takahashi Katsuhiko.

In recognising this, he said Japan is keen to work with Malaysia to strengthen the country’s capacity building under the Look East Policy (LEP) framework.

After 40 years of success, he said it was time both sides explored new strategy to expand the LEP and its benefits further.

“Malaysia is now becoming so developed compared to 40 years ago when the LEP started. So one thing we want to work together is to use the vocational training institutions here to provide training not only for Malaysians but also people of other countries,” he told Bernama when met here, recently.

LEP, which was introduced in 1982 by the fourth prime minister Tun Dr Mahathir Mohamad, has been the cornerstone of Malaysia-Japan relations.

The policy which aimed to emulate exemplary Japanese work culture as well as technology expertise in developing the country, had benefited at least 26,000 Malaysians, who upon their return from further studies in Japan, contributed in various fields and played important roles as a bridge to connect the two countries.

In the human resources sector, Malaysia and Japan under the LEP had partnered to form two training institutions, namely Centre for Instructor and Advanced Skill Training (CIAST) in Shah Alam, Selangor and the Japan Malaysia Technical Institute (JMTI) in Penang, in 1983 and 1998 respectively, with the objective to equip locals with vocational, technical and industry expertise.

“We have no reason to slow down, rather, there are more that we can do for the sake of the two countries,” Takahashi said.

Source : The Star

Japan keen to deepen ties with Malaysia under Look East Policy

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Malaysia remains a top investment destination among global investors and a hotspot for business expansion, according to the Malaysian Investment Development Authority (Mida).

The country attracted almost RM194bil of approved investments in the first nine months of 2022 (9M22), with a quarter of the investments coming from China.

On a year-on-year (y-o-y) basis, the total approved investments rose by 2.5% from RM188.9bil in 9M21.

Johor bagged one-third of the approved investments in 9M22, leaving other states behind.

“The strong approved investment figures proves that the country’s established standing as a gateway to Asean and an investment destination of choice in Asia,” said International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Between January and September, the country has attracted a total of RM193.7bil (US$41.7bil) worth of approved investments in the services, manufacturing and primary sectors.

This involved 2,786 projects and is expected to create 98,414 job opportunities in Malaysia.

“Our robust supply chain network, competitive cost structure, simplified business processes, cutting-edge innovation and technology capabilities, and good talent base are key ingredients in attracting investments and driving sustainable growth in this country.

“Moving forward, the International Trade and Industry Ministry and its agencies will ensure that new investment opportunities will also build the appropriate capacity and talent base in targeted industries to develop the nation’s economy in a sustainable manner,” Tengku Zafrul said in a statement.

Of the RM193.7bil approved investments, foreign direct investments (FDIs) remained the major contributor at 67.5% or RM130.7bil (US$28.1bil).

Meanwhile, domestic direct investments contributed 32.5% or RM63bil.

It is noteworthy that this represents a 15% increase as compared to the FDIs approved in the same period in 2021.

In 9M22, China dominated foreign investments totalling RM49.2bil (US$10.6bil).

This is followed by the United States (RM16.9bil), the Netherlands (RM16.5bil), Germany (RM9.2bil) and Singapore (RM8.7bil.

Five states that have recorded significant approved investments include Johor (RM63.9bil), Kuala Lumpur (RM26.1bil), Selangor (RM25.7bil), Sarawak (RM17.6bil) and Kedah (RM12.1bil).

Mida said the stellar service sector performance exceeded expectations for the 9M22 period, marking an increase of 60.9% y-o-y.

The manufacturing sector recorded approved investments of RM64.9bil and the primary sector achieved RM15.5bil in approved investments.

Mida chief executive officer Datuk Arham Abdul Rahman said the government is working aggressively to attract more high-quality, high-impact, capital-intensive projects in the manufacturing and services sectors.

“The government focuses on the digital economy, energy and high value manufacturing activities such as transport technology which include electric vehicles and its ecosystem that will have a significant economic potential and sustainable long-term growth,” he added.

Source : The Star

Zafrul: Malaysia a destination of choice

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Malaysia and China are determined to continue strengthening ties for the benefit and prosperity of the people, as well as for bilateral interests, said Prime Minister Datuk Seri Anwar Ibrahim.

In a post on his official Facebook page on Wednesday (Dec 14), Anwar said he had received a courtesy call from the Ambassador of China, Ouyang Yujing, and his delegation on Tuesday, and held discussions during the meeting.

The discussions centred on bilateral cooperations, especially in attracting investment and bolstering trade, and enhancing relations among the people of the two countries.

Source : Bernama

Malaysia, China pledge to boost ties, says PM Anwar

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Huawei Technologies (M) Sdn Bhd has inked a memorandum of understanding (MoU) with Progressture Power Sdn Bhd and JJ-LAPP (M) Sdn Bhd for the latter’s solar energy venture.

The venture will help in its quest to develop projects in renewable energy, green information and communications technology (ICT) infrastructure, energy savings as well as emission reductions to jointly accelerate the green digital transition in Malaysia.

According to Huawei, the MoU will position it and JJ-Lapp as the preferred partners for potential customers seeking cleantech solutions, as well as setting Progressture Solar as a key service provider with a shared philosophy of helping both local and multinational companies transition to net-zero carbon emissions.

It said that the partnership between the three companies is set to become the go-to solution for digital energy transitions, specifically for commercial and industrial (C&I) clients.

With this collaboration, Progressture Solar will invest heavily in the ownership and development of clean energy assets, including solar photovoltaics (PV) systems for businesses, electric vehicle (EV) charging network solutions, battery energy storage systems (BESS) and green data centre facilities.

Additionally, JJ-LAPP will be the product partner for Progressture Solar, providing the delivery of green products and solutions to meet the needs of C&I clients. Huawei will bring its expertise as a global ICT solutions provider to manufacture and equip the technical infrastructure for the tripartite venture.

Huawei Malaysia digital power business group vice-president Chong Chern Peng said that through the partnership, it can deliver solutions that meet the expectations of customers with a shared vision to bring forth power solutions that collectively deliver a greener and sustainable operational environment as part of energy transitions.

“In the long run, with a robust portfolio of solar projects, we will be able to establish a recurring income stream,” Chong said in a statement.

Progressture Solar co-founder and COO Ng Yew Weng said that with the urgency to combat climate change, businesses are and will be subjected to both local and global environmental standards, including Scope 2 and Scope 3 emissions.

“The challenge for many is knowing where or how to start their sustainability journey and being able to meet their commitments.

“This partnership paves an extensive way for us to deliver more robust, comprehensive and clean energy solutions from solar PV systems, BESS, EV charging and green data centres. With these solutions, we aid businesses to seamlessly transit to clean energy, decarbonise, strengthen their environmental, social, and corporate governance profile and ultimately move towards a greener economy,” he said.

Source : The Sun Daily

Huawei Malaysia inks MoU with 2 companies for solar energy venture

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Malaysia marked major milestones in regional trade in 2022 when it finally concluded two major deals – the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP).

Malaysia finalised the CPTPP deal on Sept 30, making it the ninth of the 11 countries to have ratified the agreement while the RCEP came into force on March 18, making Malaysia the 12th signatory of the trade pact.

CPTPP to ignite economic growth

After years of detailed deliberations, extensive consultations and careful assessments, the ratification of the CPTPP was finally done on Sept 30 and came into force on Nov 29.

Malaysia signed the pact in 2018. This agreement has already been ratified and implemented in stages since December 2018 by Australia, Canada, Japan, Mexico, New Zealand, Singapore, Vietnam and Peru.

Based on the findings of the cost-benefit analysis (CBA) carried out by the Ministry of International Trade and Industry (MITI), CPTPP will definitely elevate Malaysia’s prominence as a global trading economy with total trade expected to increase to US$655.9 billion (US$1=RM4.40) by 2030.

According to the CBA analysis published by the ministry on July 25, 2022, Malaysia is expected to achieve a higher gross domestic product (GDP) of US$56.5 billion (US$1=RM4.40) over the 2021-2030 period.

The CPTPP also offers new market access opportunities for Malaysia, namely Canada, Mexico and Peru, which it has no free trade agreements with.

MITI said that based on the 2021 data from World Bank, these three new markets collectively represented a population of over 200 million people with a combined GDP of over US$3.5 trillion – 9.4 times bigger than Malaysia’s economy.

In the meantime, China, Ecuador and Taiwan submitted their applications to be members of the CPTPP last year while the United Kingdom (UK) is currently in the process of the CPTPP “accession negotiation.”

During the 6th Meeting of the CPTPP Commission held in Singapore in early October, then Senior Minister of International Trade and Industry Mohamed Azmin Ali said the pact will add further impetus to Malaysia’s ongoing economic recovery efforts.

Most industry players have lauded the ratification, but certain groups have called for the post-GE15 new government led by Datuk Seri Anwar Ibrahim to withdraw from the CPTPP, citing that the free trade agreement has “far more costs than benefits”.

However, the Institute for Democracy and Economic Affairs (Ideas) said withdrawing from the CPTPP trade agreement would be harmful to Malaysia’s international reputation and trading interests.

Its chief executive officer Tricia Yeoh said the country backing out of the trade agreement will not only deprive Malaysia of numerous trade benefits and market access but will also be injurious to its international credibility among foreign investors.

“It took about eight years of negotiations before Malaysia finally signed the agreement in 2018, after which it took another four years before Malaysia finally ratified it late this year.

“A U-turn now could possibly scare off foreign investors who above all crave stability in a partner country,” said Yeoh.

The new government has yet to provide a clear directive on its stance on the CPTPP.

RCEP: tapping into a 2.2 billion people market

Meanwhile, the RCEP agreement has paved the way for the country to integrate into the world’s largest free trade agreement (FTA) that involves 15 countries, with a total population of more than 2.2 billion.

Anchored on the rules-based multilateral trading system, it will enable Malaysia to enjoy the global trade and investment ecosystem, benefiting from the eventual elimination of around 90 per cent of tariffs among members.

MITI said other advantages to be gained include the further liberalisation of trade, encompassing the removal of non-tariff barriers, increased trade facilitation, and the removal of barriers to the services sector. It will also see the enhancement of the business environment through regulations relating to intellectual property protection, government procurement practices and e-commerce.

According to MITI, the establishment of the RCEP positions the Asia-Pacific region as the new centre of gravity for global commerce, boosting intraregional trade by nearly US$42 billion (US$1= RM4.40).

“Among ASEAN countries, Malaysia is expected to be the largest beneficiary of the agreement in terms of gains in exports, with a projected US$200 million increase,” it said.

The RCEP, which complements the World Trade Organisation’s development agenda, will enhance recognition of the role of small and medium-sized enterprises, including micro-enterprises, in contributing to economic growth, employment and innovation.

As the world gradually recovers from the economic repercussions of the pandemic, the RCEP presents a vital tool to re-invigorate businesses and economic activities through a marked reduction in barriers to trade across the region.

Deemed the largest FTA in the world, the RCEP was signed among 15 countries on Nov 15, 2020, after going through 31 rounds of negotiations over the past eight years.

The countries were Malaysia, Brunei, Singapore, Vietnam, Cambodia, Indonesia, Laos, Myanmar, Philippines, Thailand, China, South Korea, Australia, Japan and New Zealand.

Altogether, the countries account for nearly a third of the global population and world gross domestic product (GDP).

Revitalising APEC economies post-pandemic

During the 29th Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting (AELM) in Bangkok last month, Malaysia encouraged its members to set up a collaborative platform that addresses the financial needs and support of micro, small, and medium enterprises’ (MSMEs) participation in international trade transactions.

Chief secretary to the Malaysian government Tan Sri Mohd Zuki Ali said MSMEs are the region’s growth engine, noting that they represented an estimated 95 per cent of global businesses and accounted for some 60 per cent of employment across economies at all levels of development.

However, Mohd Zuki, in his capacity as the Special Representative of the Prime Minister, said the COVID-19 pandemic has caused MSMEs to operate under tight cash flow conditions.

“In this regard, Malaysia wishes to underscore the importance of APEC Business Advisory Council (ABAC)’s recommendations to the leaders and encourage APEC economies to consider the establishment of a collaborative platform that brings together public and private sector stakeholders to explore tangible solutions,” said Mohd Zuki at a session at the 29th AELM.

He added that to achieve a dynamic and interconnected regional economy as envisioned by APEC Putrajaya Vision 2040, a strong foundation for growth, ably supported by competitive economic players, including and particularly MSMEs, is vital.

Under the chairmanship of Thailand and guided by the theme “Open. Connect. Balance”, the APEC Economic Leaders’ Week, the group’s first in-person summit in four years, was held from Nov 14-19 at the Queen Sirikit National Convention Centre in Bangkok.

The 2019 meeting was cancelled due to the domestic situation in the host country Chile, and the meetings in 2020 and 2021 were held virtually.

The CPTPP, if the government decides not to do a U-turn, is projected to complement the gains provided for by the RCEP, and both agreements are highly regarded with regard to benefiting the country and the people.

Both pacts would invigorate trade activities and economic growth, and at the same time provide low-hanging fruits for a Malaysian economy pummelled by the pandemic in the last two years.

The two FTAs would likely create a trade diversion with more countries shifting their resources to the Asia-Pacific region, including Malaysia, amid sluggish global economic growth and various headwinds expected next year.

Source : Bernama

Malaysia looks forward to robust trade after finalising CPTPP, RCEP deals in 2022

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Consul-General of Japan in Penang, Kawaguchi Yoshiyasu hopes the long-standing relations between Japan and Malaysia will continue to be strengthened under the country’s new leadership.

He expressed his hope for further collaboration between both countries following the appointment of Datuk Seri Anwar Ibrahim as Malaysia’s new prime minister.

“I am sure that the relationship will further develop and continue. When it comes to cooperation, it is not one direction.

“I hope both Japan and Malaysia will continue to promote their strong economic ties,” he told reporters after an award-presentation ceremony of Foreign Minister’s Commendations for 2022 to Datuk Tomiyasu Ushiama, here today.

Ushiama is the honorary advisor of the Perak Malaysian-Japanese Friendship Society.

According to data from the Ministry of International Trade and Industry (MITI), Japan is one of Malaysia’s top sources of foreign direct investment (FDI) in terms of implemented manufacturing projects, with a total investment value of US$688 million (US$1=RM4.405) recorded from January to June this year.

In terms of trade, Japan accounted for 6.7 per cent of Malaysia’s total trade, which rose by 49.5 per cent year-on-year to RM17.11 billion in September 2022.

Commenting on the commendation ceremony, Yoshiyasu said this award acknowledged Ushiama’s long history of contribution to upholding the relationship between Japan and Malaysia.

In his acceptance speech, Ushiama said he was honoured and humbled by the commendation.

“I was sent from Sagami, Japan to Ipoh in 1969 to establish a joint venture for manufacturing of rubber products through the establishment of Sagami Industries Sdn Bhd.

“In 1981, the Ipoh Branch of the Penang Malaysian-Japanese Society was established and renamed Perak Malaysian-Japanese Friendship Society in 1986, which aimed to enhance further the mutual understanding and friendship between the two countries,” he added.

Source : Bernama

Japan hopes for continued strong relationship with Malaysia under new leadership

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Petroliam Nasional Bhd (Petronas), Eni SpA (Eni) and Euglena Co Ltd (Euglena) on Dec 14 announced that they are jointly studying the possibility of developing and operating a biorefinery in the Pengerang Integrated Complex (PIC), one of the largest integrated refinery and petrochemical developments in Southeast Asia.

The three parties are currently carrying out technical and economic feasibility assessments for the proposed project, with the investment decision expected to be reached by 2023 and the plant targeted to be completed by 2025.

The biorefinery is expected to have a flexible configuration to maximise the production of sustainable aviation fuel (SAF) for aircraft as well as hydrogenated vegetable oil (HVO) for on-road vehicles, diesel-powered trains, and marine transportation. This flexibility will enable the production to meet the ever-changing and growing energy demands of customers.

The biorefinery is also expected to have the capability to process about 650,000 tonnes per year of raw materials to produce up to 12,500 barrels per day of biofuels, namely SAF, HVO, and bio-naphtha.

“As Petronas continues to chart its course into the biofuels space, decarbonising and diversifying its production portfolio to cater for the rising global demand for sustainable solutions, this collaboration is momentous to unlock the partners’ respective strengths and jointly strengthen our position in the field of biofuels in Malaysia and around the world,” said Petronas’ downstream business (Refining, marketing and trading) vice-president Ahmad Adly Alias.

Eni’s CEO for energy evolution Giuseppe Ricci said: “For the biorefinery project to develop together with Euglena and Petronas in Malaysia, Eni will share its experience and its breakthrough technologies that enabled the company to make the world’s first conversion of a refinery into a biorefinery in Porto Marghera (Venice) in 2014, and to inaugurate a second one in Gela, Sicily in 2019.”

The founder and president of Euglena, Mitsuru Izumo, said, “This project is a significant step for the commercialisation of our biofuel business and our challenge to expediting biofuel usages and decarbonisation in Japan. I am extremely excited for the opportunity to work with the great partners of respective expertise and stride together for a brighter and cleaner future.”

Source : The Sun Daily

Petronas, Eni and Euglena to explore biorefinery opportunity in Malaysia

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Malaysia has attracted a total of RM193.7 billion approved investments in the services, manufacturing and primary sectors involving 2,786 projects from January to September 2022.

In a statement on Wednesday, Malaysian Investment Development Authority (MIDA) said the total approved investments are expected to create 98,414 job opportunities in the country.

“This is a 2.5% increase compared with the RM188.9 billion investments approved in the same period last year,” it said.

Minister of International Trade and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia’s success in attracting almost RM194 billion of approved investments in the first nine months of the year is a testament of its established standing as a gateway to ASEAN and an investment destination of choice in Asia.

“Moving forward, MITI and its agencies will ensure that new investment opportunities will also build the appropriate capacity and talent base in targeted industries to develop the nation’s economy in a sustainable manner,” he said.

Meanwhile, MIDA said foreign direct investment (FDI) remained the major contributor, at 67.5% or RM130.7 billion, while domestic direct investment (DDI) contributed 32.5% or RM63 billion.

“It is to be noted that this is a 15% increase compared with the FDI approved in the same period in 2021.

“Of the total investments approved, China dominated foreign investments totalling RM49.2 billion, followed by the United States (RM16.9 billion), the Netherlands (RM16.5 billion), Germany (RM9.2 billion) and Singapore (RM8.7 billion),” it added.

It said five states that have recorded significant approved investments include Johor (RM63.9 billion), Federal Territory of Kuala Lumpur (RM26.1 billion), Selangor (RM25.7 billion), Sarawak (RM17.6 billion) and Kedah (RM12.1 billion).

MIDA said that in this period, the services sector assumed a significant role towards driving the country’s economic recovery, accounting for 58.5% of total approved investments with RM113.3 billion, which exceeded expectations from January to September 2022 with an increase of 60.9% against the same period in 2021.

This was followed by the manufacturing sector at RM64.9 billion or 33.5% and the primary sector at RM15.5 billion or 8%, it said.

MIDA chief executive officer Datuk Wira Arham Abdul Rahman said Malaysia enjoys a strong reputation internationally and investors have the confidence in investing in the country.

“The nation has a solid foundation to provide opportunities for investors. With its favourable business climate, the country is poised to become the next major economic hub.

“Malaysia offers companies what they need to succeed in the international marketplace by capitalising on its strategic location on the Straits of Malacca, comprehensive industrial ecosystem, dotted with abundant natural resources, and having a young, talented and vibrant population,” he said.

Arham said the government is working aggressively to attract more high-quality, high-impact, capital-intensive projects in the manufacturing and services sectors, which are expected to contribute to the country’s economic growth.

“The government focuses on the digital economy, energy and high value manufacturing activities such as transport technology which include electric vehicle and its ecosystem that will have a significant economic potential and sustainable long-term growth,” he added.

Source : Bernama

Malaysia attracts RM193.7 bil approved investments in January-September 2022

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