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The recovery in Asean compares favourably to the 30% average growth in developing economies, UNCTAD reports

INFLOWS of foreign direct investment (FDI) in Asean increased by 42% in 2021 to US$174 billion (RM765.6 billion), returning to pre-pandemic record levels, according to the latest Asean Investment Report 2022.

The report published by The Asean Secretariat and the United Nations Conference on Trade and Development (UNCTAD) said the rebound underscores the resilience of the region, which has been battered by successive waves of the pandemic.

“The recovery in Asean compares favourably with the 30% average growth in developing economies.

“Six member states recorded a rise in inflows and in two, inflows remained flat.

“This contrasted with the situation in 2020 when only two member states recorded a rise,” it added.

The report also highlighted that Asean remained a top recipient of FDI in developing regions, second after China in 2021, and continued to be an engine of growth.

It said the region’s share of global FDI inflows rose from a pre-pandemic annual average of 7% in 2011-2017, to 11% in 2018-2019, and to 12% in 2020-2021. Strong inflows pushed up FDI stock in the region to US$3.1 trillion, an increase of 72% from 2015 (US$1.8 trillion).

Robust Upturn

According to the report, several factors led to the robust upturn namely, rising investment across different modalities; a strong rebound in manufacturing; corporate investment strategies focusing on capacity expansion to bolster supply chains and for the post-pandemic recovery; significant investment from key source countries and; investment in infrastructure-related activities, including in the digital economy.

“Announced greenfield investment project numbers rose by 12%, with most investment in manufacturing and infrastructure-related activities.

“Three industries (electronics and electrical equipment, energy and gas supply and information and communication) accounted for 68% of announced greenfield investment values in 2021.

“Cross-border mergers and acquisitions declined in number but rose significantly in value, from -US$4.7 billion in 2020 to almost US$50 billion because of a few megadeals, including the US$34 billion special purpose acquisition company established by Grab (Singapore) and Altimeter Growth (the US).

“Announced international project finance values increased from US$66 billion to US$114 billion, with the largest increase in renewable energy, followed by industrial estates.

“These two industries accounted for 75% of international project finance activities in

2021. The number of international project finance deals rose by 18% to 134,” it noted.

Apart from that, the report also said a broad-based rise in FDI in manufacturing played a key role in 2021. It pointed out that strong investment in manufacturing, finance and some services industries associated with the rapidly growing digital economy and Industry 4.0 activities were the main industry drivers.

Investment in manufacturing recorded the strongest growth (134%), to US$45 billion, in industries such as electric vehicles (EVs), electronics, biomedical and pharmaceuticals.

Finance and banking remained the largest FDI recipient industry with 22% growth, to US$57 billion, underpinned by Asean and foreign banks picking up investment and multinational enterprises in banking resuming their regional expansion plans.

The active fintech industry in the region was another contributory factor. The strong digital economy helped attract rising investment in data centres and in information and communication activities.

Semiconductors

Meanwhile, robust investment in semiconductors, electronics and EVs were significant drivers of the rise in manufacturing FDI, the report noted.

It said the announced greenfield investment in electronics and electrical equipment quadrupled to US$33 billion in 2021, increasing the share of these two industries in the total value to 52%, from 12.4% in 2020.

On top of that, the report also said investment in all FDI components — equity, intracompany loans and reinvested earnings — rose.

“New equity investment was prominent, suggesting new investment interest or further injection of capital into expanding existing operations,” it added.

On future prospects, the report noted that it is expected that Asean will continue to receive a high level of FDI flows following the significant rebound.

However, it said potential new waves of the pandemic, inflationary pressures and a weakening global economy will put downward pressure on both global and regional FDI.

It added that other developments on the global stage in 2022, such as the Ukraine war, food-fuel-finance crises, recession fears could also dampen the growth momentum.

Nevertheless, the report said despite the worsening outlook for global FDI, several factors will support continued growth in Asean, including vibrant industrial development, regional integration momentum, growing numbers of middle-income consumers and a consistent policy push.

“The interaction of internal (such as regional integration, market attraction) and external factors (such as adjustment or strengthening supply chain capacity and regional corporate expansion strategies) favourable to the region will help sustain a high level of inflows.

“FDI in manufacturing is expected to remain strong particularly in the EV value chain, electronics and semiconductors and in activities related to the digital economy,” it noted.

Source: The Malaysian Reserve

Asean FDI surges 42%, back to pre-pandemic level

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A stable government that is able to implement good policies will attract foreign investors, says Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar.

Wahid made the remark as Prime Minister Datuk Seri Anwar Ibrahim is expected to test his majority in Parliament in about two weeks.

Asked about his “advice” to the Cabinet, Wahid said the country must continue its efforts to achieve the shared prosperity vision. To achieve this, it needs the help of a competent civil service.

Speaking to reporters yesterday during the launch of the final two digital guidebooks under the public-listed companies (PLCs) Transformation Programme here, he said beyond the sentiment on political stability, the performance of PLCs is a key factor to woo investors.

“We expect to see our PLCs continue to increase their top line, improve their earnings, pay more dividends, and this will lead to a continuous improvement of the stock market,” he said.

Earlier in his speech, Wahid said the earnings performance of the PLCs has not been attractive for more than a decade.

“Our PLCs’ earnings performance, as measured by growth in Malaysia’s Index earnings per share (EPS) has been muted since the global financial crisis. Earnings fell to a 10-year low in 2020 and only began to recover last year. Despite the buds of recovery, our EPS remains lower than the 2012-level.

“Malaysia’s weightage in the Morgan Stanley Capital International Emerging Markets Index has been generally declining since 2019, negatively impacting our ability to capture larger fractions of global funds. Nonetheless, we are glad that our weightage has recently increased to 1.62% in October 2022, up from 1.39% in 2021,” he said.

Wahid, who was also the former chief executive officer of Malayan Banking Bhd, stressed that local PLCs should take deliberate and committed actions to improve their performance.

“This is where Bursa Malaysia’s PLC Transformation Programme is timely.

Out of the 971 companies listed on Bursa Malaysia, more than 100 PLCs have committed to participate in the PLC Transformation programme.

By end-2025, Abdul Wahid expects at least 300 PLCs to be part of the programme.

However, he noted that the programme is not mandatory for the PLCs.

Commenting on the two guidebooks launched yesterday, Abdul Wahid said they would aid PLCs in realising areas in which the companies’ practices can be improved.

Source: The Star

‘Stability will attract investors’

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Tenaga Nasional Bhd (TNB) plans to invest RM20 billion worth of capital expenditure annually over the next 28 years to support the country’s net-zero agenda.

Speaking at ENLIT Europe 2022 in Frankfurt, Germany, TNB president and chief executive officer Datuk Indera Baharin Din said TNB is keen to meet with other European electricity supply industry players to explore the opportunities for partnerships and investments as well as delivering energy transition solutions for sustainable business growth.

He said in a press statement the initiatives to fast-track TNB’s sustainability agenda are focused on embarking on responsible energy transition in the areas of transitioning power generation to cleaner sources, enhancing the Grid of the Future to enable more green solutions, and facilitating consumer participation in the energy transition, including through electric vehicle (EV) adoption.

Indera said Asean recognises the strong interconnection among European countries had led to the delivery of several values, including sharing of resources, while managing the variability of renewable energy (RE).

“TNB has been working with the regional Asean Power Grid to strengthen the interconnection to obtain the similar advantage,” he added.

He said that TNB is keen to explore opportunities for partnerships and investments with its EU counterparts to deploy EVs, embark on hydrogen and expand decentralised RE.

The three-day ENLIT Europe 2022 which ended on Dec 1 was a gathering of thought leaders, visionaries, top officials and experts in the energy industry. The summit brought together over 4,000 delegates of like-minded organisations and industry players worldwide, who were on the same energy transition journey, to collaborate, innovate and discuss the most pressing issues in the energy sector.

Indera pointed out that for developing nations, “the core of an ideal energy system remains in balancing the energy trilemma, where access to affordable energy and security of supply are key”.

He said Malaysians benefit from among the most competitive electricity tariffs in Southeast Asia and TNB’s System Average Interruption Duration Index (SAIDI) is 45 minutes, which is currently on a par with the best-developed countries in the world.

The challenge is the need to rapidly transition to a lower-carbon world while meeting the growing expectations of TNB’s shareholders and stakeholders, he added.

“The scale and speed of the energy transition is a question of economics. Thus, we believe that managing these challenges will require a gradual transition. Governments will be key in this transition by helping introduce innovative financing schemes and policies that ease the transition and reduce risks,” he said.

Source: The Edge Markets

TNB to invest RM20b annually over 28 years to support country’s net-zero plan

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MOU will explore other potential investment ventures within JLand’s portfolios
Both parties will conduct a feasibility study on developing a hyscale data centre

JLand Group Sdn Bhd (JLG) has signed a memorandum of understanding (MOU) with Mitsui and Co Ltd, through its wholly owned subsidiary Mitsui and Co. (Malaysia) Sdn. Bhd (Mitsui) to jointly explore prospective business opportunities and strategic project developments in Ibrahim Technopolis (IBTEC) including Sedenak Tech Park (STeP).

This will be done over the next two to three years, the real estate and infrastructure arm and subsidiary of Johor Corporation (JCorp) said in a statement.

It said within the immediate terms of the MOU, the firm and Mitsui will conduct a joint feasibility study on the development of a hyperscale data centre as well as a renewable energy (RE) facility in the form of a captive solar farm to power the data centres in STeP.

It added that following the completion of the study, JLG and Mitsui and its co-developers will form a joint venture partnership to invest, develop and operate these projects.

Syed Mohamed Syed Ibrahim, president and chief executive of JCorp and chairman of JLG, said this strategic collaboration with Mitsui is a testament to our sustainable-driven projects and dedicated focus on enabling corporations to meet their ESG goals.

“In an increasingly data-dependent digital economy, we are proactively identifying and implementing renewable energy sources for the future of decarbonising data centres.

“This initiative is one of the major milestones for JCorp’s vision of a sustainable future, while ensuring the state and country meets its decarbonisation aspirations,” he said.

Akmal Ahmad, director, real estate and infrastructure division at JCorp, said the MOU between JLG and Mitsui reflects the commitment displayed by responsible corporations to shift towards cleaner energy sources to power their businesses.

“Our strategic partnership to develop these high-value sustainable projects brings together collective industry knowledge and technical expertise to further transform the energy industry.

“JLG is proud to reinforce our contribution to Johor’s renewable energy goals, while catering to the growing needs of industrial customers in STeP that requires green and clean energy as secondary power supply,” said Akhmal.

He added that the positive boom of the data centre sector over the past years has brought the importance of sustainability and renewable energy to the fore, as data centre operators explore cleaner technologies to turn operations green.

“We are proud to be among the pioneers in hyperscale green data centres in Johor and are excited to partner with Mitsui and RE co-developer to advance the decarbonisation of data centres through clean power procurement,” he said.

Under this strategic collaboration, STeP, the flagship 700-acre data centre hub is poised to attract the global hyperscale data centres.

It aims to do this by offering future availability of RE and comprehensive supporting packages including competitive green project financing from the market.

This will provide excellent opportunities for regional customers seeking green data centres to meet their needs, it aid.

According to JLG, the collaboration will also involve other industry partners as co-developers, who will contribute sector expertise and knowledge transfer throughout the project investment, design, development, and maintenance phases.

It said as part of the MOU, JLG and Mitsui will also explore other potential investment ventures within the group’s portfolios. This includes Ibrahim Technopolis (IBTEC) which focuses on advanced industrial developments and environmentally friendly technologies, as well as the port business.

Other areas of interest may include, but not limited to renewable energy, digital and mobility infrastructure and high-tech industrial development.

Source: Digital News Asia

JLand Group, Mitsui to develop hyperscale data centre, solar farm

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Newly-appointed Minister of Economy Mohd Rafizi Ramli said his overall focus will be on taking Malaysia towards becoming a high-income nation.

He said this is in view of the continued strong focus on industries and economic activities that can boost Malaysia’s status to become a high-income nation.

“There is a lot of focus on states which currently do not enjoy good growth and have more poor people.

“Strong focus should be on the most vulnerable groups in society economically through the hardcore poverty eradication programme and so on,” he said during his first press conference after clocking in at work today.

He also said that focus should also be on sustainable development goals (SDGs) as well as technology and the knowledge economy.

Mohd Rafizi said the most important thing to do is to make sure that there is strong cohesion from the top leadership of the government all the way down to make sure that what is being planned is actually carried out properly.

Therefore, building the economy can be the focus rather than politics, he added.

Meanwhile, on policy changes, Mohd Rafizi said it is still premature to say anything about policy but he will give more information in the weeks and months ahead.

Commenting on the budget development, he said the government will be tabling the budget for emoluments in the next Parliamentary sitting, while the full budget will be tabled in one or two months.

“We have gone through it (the budget), and it is at a very micro level. It is very premature to say anything now…. We are going through the process anyway,“ he added.

Source: Bernama

Overall focus is to turn Malaysia into a high income nation: Rafizi

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PRECISION engineering parts maker FoundPac Group Bhd is buying two adjoining plots of industrial land in Penang for RM25.5 million to increase its production capacity.

In a bourse filing today, FoundPac said its wholly owned unit, FoundPac Technologies Sdn Bhd, entered into a sale and purchase agreement with Zoomic Technology (M) Sdn Bhd, a unit of Iqzan Holding Bhd, to purchase the industrial lands measuring 8,365 sq m in the Bayan Lepas Free Industrial Zone in Penang, with a double-storey detached factory-cum-office building thereon.

“The purpose of the acquisition is to enable FoundPac Technologies to increase its production capacity,” the group said.

FoundPac said that the land will be used as FoundPac Technologies’ new manufacturing facility, as it is less than a kilometre away from the unit’s existing manufacturing facilities and therefore represents an opportunity to contribute positively to FoundPac Technologies’ earnings in the medium to long term.

It added that the purchase consideration will be financed via internally generated funds.

Barring unforeseen circumstances, as well as the requisite approvals, FoundPac said the group expects to complete the acquisition by June 30, 2023.

Shares in FoundPac closed 1.5 sen or 2.73% lower at 53.5 sen today, giving the group a market capitalisation of RM289.15 million.

Source: The Malaysian Reserve

FoundPac buys land in Penang to boost production capacity

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Tenaga Nasional Bhd (TNB) has called on energy players, as well as public and private sectors around the world to continuously engage, collaborate and leverage on each other’s best practices in the journey towards a sustainable future.

Speaking at Enlit Europe 2022 in Frankfurt, Germany, TNB president and chief executive officer Datuk Indera Baharin Din said energy has become the biggest driver of transformation, with rapid changes in the world.

At the same time, he said the trilemma between energy equity, and environmental and energy security, remain “the biggest challenges in the energy transition”, TNB said in a statement on Sunday (Dec 4).

Baharin said for developing nations, the core of an ideal energy system remains in balancing the energy trilemma, where access to affordable energy and security of supply are key.

“Malaysians benefit from among the most competitive electricity tariff in Southeast Asia, and TNB’s System Average Interruption Duration Index (Saidi) is 45 minutes, which is currently at par with the best-developed countries in the world,” he said.

For TNB, he said the energy transition represents both a challenge and an opportunity. The challenge is the need to rapidly transition to a lower carbon world, while meeting the growing expectations of TNB’s shareholders and stakeholders.

“The scale and speed of energy transition is a question of economics. Thus, we believe that managing these challenges will require a gradual transition. Governments will be key in this transition by helping introduce innovative financing schemes and policies that ease the transition and reduce risks,” he said.

On another note, he said Asean recognises that the strong interconnection among European countries had led to the delivery of several values, including sharing of resources, while managing the variability of renewable energy.

Referring to the cost savings benefits — particularly during this year’s energy crisis — gained by early adopters of renewable energy in Europe in the past two decades, he said TNB has been working with regional Asean Power Grid to strengthen the interconnection to obtain a similar advantage.

The three-day Enlit Europe 2022, which ended on Dec 1, is a gathering of thought leaders, visionaries, top officials and experts in the energy industry.

The summit brought together over 4,000 delegates of like-minded organisations and industry players worldwide who are on the same energy transition journey, to collaborate, innovate and discuss the most-pressing issues in the energy sector, the statement said.

Source: Bernama

Global energy players, public and private sectors must work towards sustainable future, says TNB

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Bilateral trade between Malaysia and the United Arab Emirates (UAE) estimated to reach over US$7 billion by the end of 2022 — a remarkable increase from US$5.4 billion in 2021.

UAE Ambassador to Malaysia Khalid Ghanim Alghaith during his speech at the country’s 51st National Day reception held here recently, had said among sectors that contributed very much to the increase were petrochemical, jewellery, machinery and electrical appliances.

Alghaith also congratulated the new Malaysian Prime Minister Datuk Seri Anwar Ibrahim and looks forward to further enhancing the strong bilateral relations between the UAE and Malaysia.

He highlighted UAE’s guiding principles for the coming 50 years, also known as “Principles of 50”, in his speech which was made available to Bernama through a statement.

He also touched on the developments and achievements of his country in the areas of economy, science and technology, as well as cultural diplomacy, the statement added.

Tengku Laksamana Selangor Tengku Sulaiman Shah Al-Haj and Sarawak’s Head of State’s wife Toh Puan Datuk Patinggi Hajjah Raghad Kurdi Taib were among guests who attended the reception.

The two countries had established bilateral relationships in the early 1970s, followed by the opening of the Malaysian diplomatic mission in Abu Dhabi in 1983 and the UAE Embassy in Kuala Lumpur in 1995.

Source: Bernama

Malaysia-UAE bilateral trade to reach over US$7 bil in 2022, says envoy

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International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz has listed out three top priorities to restore investors’ confidence in light of the expected economic slowdown in 2023.

In a statement today, he said there is need to ensure that trade remains a robust key growth driver, to restore investors’ confidence, and to look at the various bilateral and multilateral agreements to ensure that their formulation and/or implementation is of real value and advantage to participants in the Malaysian supply chain, particularly the micro and small SMEs.

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He said there was a need “to increase foreign direct investment (FDI), which has been a key building block of economic resilience, providing the country with one of the largest sources of foreign exchange.”

Leveraging on his previous experience in the Finance Ministry, and his past corporate experience, Tengku Zafrul said he will ensure that his ministry continues to be the focal point to make Malaysia a preferred investment destination and among the most globally competitive trading nations.

“Through the 2023 Budget that will be presented again to Parliament, MITI will propose the creation of a special investment fund to attract more high-value-added investments to generate higher-paid professional employment opportunities,” the statement said.

The statement highlighted several industries, namely, the electronics and electrical (E&E) sector, aerospace, chemical and petrochemical, nanotechnology, health-tech, medical devices and smart manufacturing.

He said there was a need to attract investors to the country’s E&E sector, including the development of applications based on radio frequency and bluetooth technology for the automotive industry.

He said these efforts will be matched with human capital development measures to contribute to the restructuring of Malaysia’s trade ecosystem in the medium and long term.

“I will start engaging with the stakeholders of Malaysian trade, both domestically and internationally, to ensure that we maintain or improve our competitive, business focused trade ecosystem,” he added.

Sourc: Bernama

Tengku Zafrul: Three top priorities to face 2023 global economic slowdown

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Malaysia cannot afford to withdraw from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), as the agreement is crucial for the country’s trade, moving forward.

The Malaysian Consortium of Mid-Tier Companies (MCMTC) said unlike other trade agreements, the CPTTP does not only open up trade but also brings about technical assistance and technology/know-how transfer, which are critical for capacity building for the local businesses

“The MCMTC stands with the Federation of Malaysian Manufacturers (FMM) against the call from certain parties urging the government to withdraw from the long-awaited CPTPP, which took effect from Nov 29, 2022,” president Callum Chen said in a statement on Sunday (Dec 4).

He said the delay in ratification has already caused Malaysia to lose ground in terms of Foreign Direct Investment (FDI), wherein Vietnam, which signed earlier in January 2019, has become the springboard into the Asean market for Canada via the CPTPP.

“Much has already been said about the costs versus benefits of the CPTPP. Malaysia is a small country in terms of population and land area but in terms of trade, we are ranked 25th in the world. We have become an integral part of the global supply chain,” Chen added.

Source: Bernama

Malaysia can’t afford to withdraw from CPTPP, says MCMTC

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Prime Minister Datuk Seri Anwar Ibrahim said he is looking forward to working with his Thai counterpart Prayut Chan-o-Cha, to further advance the deep and long-standing bilateral relations between Malaysia and Thailand.

Anwar was responding to a congratulatory message from Prayut on his appointment as Malaysia’s 10th prime minister on Facebook.

“Thank you my friend Prime Minister Prayut Chan-o-Cha for your kind wishes,” he said as he uploaded a congratulatory message from Prayut.

Prayut, in his note said he is looking forward to working closely to further enhance bilateral relations, including cooperation at the regional and international levels.

“I am confident that Malaysia will soundly progress and prosper under your vision and leadership and that the neighbourly and fruitful ties between Thailand and Malaysia will continue to grow and yield many extensive mutual benefits for our people and our region,” Prayut said.

Anwar, 75, took his oath of office as prime minister before Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah at Istana Negara on Nov 24.

In February, Malaysia and Thailand reaffirmed their commitment to promote bilateral trade and investment, working closely to achieve the bilateral trade target of US$30 billion by 2025.

Source: Bernama

Malaysia to further advance long-standing bilateral relations with Thailand, says PM Anwar

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Malaysia’s 5G network has been recognised globally at the prestigious Glotel award, which acknowledges innovation and excellence in advancing and transforming telecommunications.

The winners were revealed at the global awards ceremony in London on Thursday (Dec 1), where Ericsson’s joint submission with Digital Nasional Bhd (DNB) won the “Best Vendor 5G Innovation” category.

In a statement on Sunday (Dec 4), Head of Ericsson Malaysia, Sri Lanka and Bangladesh, David Hagerbro said the award was testimony to the technology and innovations being incorporated into the network that Ericsson is delivering for DNB, which would be the backbone for Malaysia’s digital transformation.

He said the award goes to the telecom companies that have developed the best new technology or service that raises the bar for 5G, while demonstrating a significant contribution to the advancement of 5G on the whole.

“The Glotel award is just one example of our commitment to provide a world-class 5G network for Malaysia that offers affordability, a world class user experience and security that is accelerating the digital transformation and becoming an attractive destination for foreign investment, where secure and robust connectivity is required for operations and manufacturing,” he said.

For consumers, 5G will enhance their digital lifestyle in areas such as gaming, streaming, healthcare and education, while enterprises will be able to rely on business-critical use cases in areas such as mining, logistics and agriculture.

The award-winning entry was for “Multi-Operator Core Network and Dynamic Resource Partitioning for the National Wholesale 5G Network”.

DNB’s 5G network is the first commercial network in the world to apply Dynamic Radio Resource Partitioning (DRP), a 5G Radio Access Network (RAN) Slicing solution from Ericsson.

Hagerbro said DRP enabled six telecommunications operators on DNB’s shared network to deliver customised 5G services, allowing them to achieve the best possible speed which provides consumers with uncompromised choice, while driving value for the network with 5G as an innovation platform.

He complemented the Multi-Operator Core Network (MOCN) that is also used on DNB’s 5G network that allows operators to share radio resources fairly without any compromise to quality during busy hours and differentiate their offerings for customers.

Hagerbro said the ability for active sharing would maximise spectrum utilisation and ultimately lead to lower costs of 5G services for Malaysia, which in turn would accelerate adoption and digital transformation.

”We are looking forward to bringing the latest innovation and technology to Malaysia, while achieving more milestones that will strengthen its competitiveness and accelerate the nation’s journey, as it leapfrogs forward as a Digital Nation,” he added.

Source: Bernama

Malaysia’s 5G network recognised globally at prestigious Glotel award in London

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It’s been a bumper year for car sales!

Malaysia’s total industry volume (TIV) is poised to settle at a record high this year, driven by strong initial bookings figures and sustained demand.

Car sales and accumulated bookings recorded by several marquees in the first half (H1) of 2022 far exceeded their earlier projections, thanks to the low-interest-rate environment and the government’s sales and service tax (SST) exemption.

Perusahaan Otomobil Kedua Sdn Bhd (Perodua) made big strides, selling 127,343 units in H1 2022, recording a 30 per cent surge from the same period last year.

The car maker also received total bookings of over 200,000 units during the period following the SST exemption.

It reported an unprecedented highest single-day booking, with 25,100 vehicle orders received on June 30, 2022, the deadline for the SST initiative.

Not to be left out, Proton Holdings Bhd is also making a splash. It recorded total sales of 60,124 units in H1 2022, an increase of 3.9 per cent over the same period last year.

The national car maker received a 300 per cent jump in bookings in the last week before the SST exemption ended on June 30, 2022, compared to normal weeks.

Firm second-half performance

The Malaysian Automotive Association (MAA) on July 21 raised its 2022’s TIV forecast by 5.0 per cent to 630,000 cars, from the estimated 600,000 previously, following the pent-up demand for new cars in H1.

The upward revision of the MAA’s 2022 Malaysian automotive TIV forecast was reportedly mainly due to the continued recovery of the Malaysian economy post-pandemic, and the Ministry of Finance’s decision to extend the car registration deadline to March 31, 2023, to enable car buyers, who had booked their vehicles by June 30, 2022, to enjoy the sales tax exemption.

Data from MAA showed that TIV for the first 10 months of 2022 (January-October) grew 50 per cent year-on-year (y-o-y) to 577,902 units.

The January-October 2022 TIV performance was driven by higher sales in the non-national segment (+60.5 per cent y-o-y) led by Japanese marques, while both Perodua and Proton delivered 44.1 per cent y-o-y TIV growth.

Perodua registered a total of 222,203 vehicles year-to-date (YTD) as of end-October, up 51.2 per cent from 146,951 units sold in the same period in 2021.

YTD as of end-November, it sold 250,795 units, surpassing its full-year target of 247,800 units announced earlier this year. This was the highest sales achievement for the company so far.

The compact car company expects the registration to continue its upbeat momentum until the end of the year, driven by its top three models — Bezza, Myvi and Axia, as well as its all-new Alza B-segment multi-purpose vehicle.

Proton too has gone into overdrive this year. The national car maker delivered 115,366 units YTD as of end-October, surpassing the 114,708 units achieved for the whole of 2021, recording an increase of 33.6 per cent thus far for the first ten months of 2022.

Saga is the company’s best-seller with YTD sales (including exports) hitting 45,865 units up to end-October 2022, followed by the X50 (33,193 units) and the X70 (15,536 units) so far this year.

Proton has earlier set a target to register a total of 150,000 vehicles in 2022.

Toyota leads non-national marques

Meanwhile, Toyota retained its leading position in the non-national brand with a 13.7 per cent market share in the January-October 2022 period and is currently ahead of its sales target of 80,000 units for this year.

Other marques such as Honda, Hyundai, Nissan, Mazda, and BMW also reported encouraging sales improvement y-o-y due to the low base effect and reportedly will have no problem hitting their respective sales targets this year.

Macroeconomic headwinds may dampen booking sentiments in the remaining months, following the ringgit’s depreciation, rising interest rates, ongoing chip and component shortages, and inflationary pressures.

Car marques however may roll out new or upgraded models and offer year-end discounts to woo consumers, while the original equipment manufacturers accelerate production, imports and deliveries to meet the high order backlogs.

Auto analysts remained upbeat on the remaining months on sustained delivery momentum and some predicted that the TIV for 2022 will end up at a record high, far better than MAA’s TIV forecast of 630,000 units.

Kenanga Research projected a record-breaking TIV for 2022 at 680,000 units from its earlier forecast of 650,000 units, while Hong Leong Investment Bank Research raised its 2022 TIV target to 700,000 units from 600,000 units.

In perspective, Malaysia’s automotive TIV totalled 508,911 units in 2021. It declined 12.4 per cent to 529,434 units in 2020 from the pre-pandemic level of 604,281 units in 2019.

Moving forward, electric vehicle (EV) is expected to be the theme and catalyst for the industry next year and beyond as more funds and tax incentives are geared toward this segment and green technology, to meet the net zero greenhouse gas emissions by 2050 target and the sustainability agenda that are expected to be introduced or extended.

Source: Bernama

Malaysia’s automotive sector set for bumper year, record-breaking TIV

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The 4th Asean-Japan Smart Cities Network High Level Meeting kickstarted here on Sunday (Dec 4), with Asean highlighting three key efforts in promoting smart and sustainable city development in the region.

Asean Secretary General Datuk Lim Jock Hoi, in delivering his opening remarks at the event, highlighted that firstly, investment in digital infrastructure is critical for smart city development, whereby data can help officials make informed decisions to service their citizens more effectively.

“Robust and integrated central digital infrastructure is necessary to realise excellence in public service delivery, “ he said in his speech, which was pre-recorded, at the event.

In this regard, he said Japan has been supporting Asean through Smart Japan-Asean Mutual Partnership, which conducts feasibility studies to help cities determine the appropriate digital infrastructure for smart city development.

Lim also said Asean emphasised on enhancing human capital, which is essential to seize smart city opportunities, especially when considering various capacities of Asean cities in managing smart city projects.

He said many Asean cities, especially small- and middle-sized ones, require the support of the institutions that could help local government design and implement smart city initiatives.

“As such, Asean and Japan can collaborate to provide strategic and technical support that helps localities in executing smart city plans,” he added.

Thirdly, Lim said that inclusive community participation is crucial to implement Smart City initiatives, with reaching out to people in the problem-solving process, which will subsequently help the local government select appropriate solutions to various community issues in the respective areas.

Thus, he said this will help improve the quality of life of those who work and live in the cities.

Lim said pursuing smart and sustainable city development is high on Asean’s agenda, as the regional grouping strive to tackle urban challenges and empower vulnerable communities in those cities.

“In this regard, I would like to commend the government of Japan for their unwavering support towards realising smart city initiatives in Asean,” he added.

Lim said the Covid-19 pandemic impacted every aspect of urban life, and in response, Asean member states and cities have continued to transform digitally and sustainably to tackle urban challenges, as well as advance their recovering efforts.

“Thus, I believe today’s meeting will bring enormous opportunity for members of the Asean Smart Cities Network to exchange ideas and experiences with Japan in making our cities more liveable,” he said.

The two day 4th Asean-Japan Smart Cities Network High Level Meeting, which ends on Monday, is hosted by Japan’s Ministry of Land, Infrastructure, Transport and Tourism, in partnership with Asean member states and related government agencies and municipalities.

This annual international meeting has contributed to building collaborative relationships in the smart city field between Asean and Japan, since its inaugural meeting in 2019.

The high-level meeting held at the University of Aizu in Aizuwakamatsu in Fukushima, is being attended by delegates from Asean states, besides three media personal from the Philippines, Cambodia and Malaysia.

Source: Bernama

Asean highlights three key efforts to promote sustainable city development

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WITH electric vehicles (EVs) set to proliferate and become more accessible to drivers around the world, several emerging markets are looking to expand their EV manufacturing.

Once a luxury segment of the automotive industry, EVs have become popular among consumers and companies alike in recent years, with solid growth trends attracting public and private investment.

EV uptake is essential to the global energy transition, as transport remains the sector with the highest reliance on fossil fuels, producing an estimated 37% of CO2 emissions from end-use sectors in 2021.

The number of passenger EVs on the road is expected to triple globally in the next decade to over 77 million, according to BloombergNEF.

Debuting brands in MENA

Although China currently dominates EV manufacturing, accounting for 57 per cent of global output in 2021, several emerging markets – especially in MENA – have announced plans to jump-start domestic production.

In March 2022 El Nasr Automotive Manufacturing Company (NASCO) signed a shareholders’ agreement with the National Automotive Company to establish the country’s first EV distributor, with the first EVs produced by NASCO hitting the market in 2023.

That same month NASCO also signed a memorandum of understanding with Valeo Egypt, a subsidiary of the French automotive supplier of the same name, to design, develop and produce EV components. As of December 2021 the project was seeking some US$127 million in investment and targeting annual production of 20,000 units over a three-year period.

Private players are also seeking to support the EV goals of North Africa’s most populous country. Shifting his investments from social media to green projects, Egyptian billionaire Mohamed Mansour announced plans in November 2022 to produce 15,000 EVs in Egypt over the next three to five years via his company Al Mansour Automotive. The company also plans to import and market five models of Cadillac EVs by 2025.

Meanwhile, Brightskies, an Egyptian company specialising in EVs and power systems, signed an agreement with NASCO and the Engineering Automotive Manufacturing Company in February 2021 to produce the country’s first electric buses, localising and manufacturing the technological components in Egypt.

Elsewhere in MENA, in November 2022 Saudi Arabia’s Public Investment Fund, the country’s sovereign wealth fund, announced a partnership with Taiwan-based tech company Foxconn to manufacture the Kingdom’s first EVs by 2025. The brand, known as Ceer, is expected to draw more than US$150 million in foreign direct investment and contribute $8bn to the Kingdom’s GDP by 2034.

In May 2022 Saudi Arabia’s Ministry of Industry and Mineral Resources said the construction of a US$2 billion EV battery metals plant was already under way, an integral component in the Kingdom’s EV manufacturing plans and in line with its aim of attracting US$32 billion in investment in its mining sector as part of ongoing economic diversification efforts.

Turkey has also joined the regional push into EV manufacturing, with the first SUV models of its domestically produced Togg EVs set to reach the local market at the end of the third quarter of 2023. The country’s Automobile Joint Venture Group, the consortium behind the project, is planning to export the vehicles within 15 to 18 months of their first domestic sales.

Attracting investment in South-east Asia

In addition to the proliferation of domestic brands, some countries – most notably in South-east Asia – are working to attract investment for EV manufacturing and technology uptake from more mature markets.

Already the region’s top auto-manufacturing centre, Thailand has implemented policies to bring in EV manufacturers and boost output, including a cash subsidy for passenger EVs and a planned subsidy for batteries.

The country aims for EV production to account for 30 per cent of total automobile output by 2030.

As OBG reported in April 2022, Indonesia is also set to become a major EV player, as the world’s two-largest EV battery producers are preparing to invest in projects in the country.

The country released its EV Roadmap in September 2020, which includes plans to produce 600,000 four-wheeled EVs and 2.45m two-wheeled EVs annually by 2030, along with complementary metals-refining and battery-production targets.

China’s Contemporary Amperex Technology – the world’s biggest EV battery maker – and a South Korean consortium headed by LG Energy Solution have also signed respective agreements with Indonesian partners on mines-to-manufacturing EV projects worth US$6 billion and US$9 billion.

Upgrading infrastructure

The expansion of ride-sharing services and micromobility options such as electric scooters could help drive EV uptake in emerging markets, especially in urban environments as an alternative to car ownership. For example, 46 per cent of three-wheelers sold from the start of 2022 in India as of April were electric, pushing the share of EVs in overall automobile sales to 2.6 per cent.

Launched by Drive Electric, a global philanthropic campaign supporting transport solutions powered by clean energy, the Leapfrogging to E-mobility Acceleration Partnership has committed US$1 million in grants to 10 projects to boost EV adoption in emerging markets, with the target to eventually raise US$1 billion for the cause.

Subsidies or tax exemptions have proven to be useful tools for encouraging the adoption of EVs. In some states of Mexico, EV drivers are exempt from an annual tax based on car value. In Vietnam, the government has exempted EVs from registration fees for three years, in addition to reducing the excise tax on smaller EVs to three per cent.

The global charging industry is set to grow at a compound annual growth rate of 34.5 per cent from 2022 to 2030, as governments encourage the construction of EV infrastructure and award large-scale contracts.

The UAE, which boasts one of the biggest charging station-to-vehicle ratios in the world, plans to increase the number of EVs on the street to 42,000 by 2030.

Under way since 2015, Dubai’s EV Green Charger initiative aims to boost the number of charging stations in the UAE to meet expected demand, with the number of chargers in the country at 325 as of August 2022.

In March 2022 the first EV and battery logistics hub in MENA opened in Dubai’s Jebel Ali Free Zone. It is designed to bolster the regional circular economy for EVs by providing an area where batteries can be stored, repaired, recycled or processed.

Egypt, meanwhile, is offering private sector players a 40 per cent share in a new company established to oversee pay-to-use charging stations, with a total of 3,000 charging stations in the works, the first of which are set to be launched in Alexandria and Cairo.

This column was produced by the Oxford Business Group.

Source: The Borneo Post

EMs are targeting a share of the global EV market

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THE state government earned a total of RM1.3bil in real investment from January to June 2022, says Penang trade, industry and entrepreneurial development committee chairman Datuk Abdul Halim Hussain.

“RM6.5bil more was recorded for reinvestment. This brings up the total investment value to RM7.8bil.

“The data was obtained from Invest Penang and Malaysian Investment Development Authority (Mida),” he said during his winding up speech at the recent state assembly sitting.

On a separate matter, Abdul Halim said he took note the proposal by Kumaresan Arumugam (PKR-Batu Uban) to accommodate more local entrepreneurs at the Penang Pesta site in Sungai Nibong.

“The site is under the supervision of the state Finance Department and we are always keen to provide business opportunities to locals.

“Penang Pesta has been held annually for almost 50 years and rebranding is needed to make it a tourist attraction,” he said.

Meanwhile, state public works, utilities and flood mitigation committee chairman Zairil Khir Johari said there were plans to boost the ferry service which earned a total ridership of 930,529 this year.

“The ferry travel time issue was brought up to Penang Port Sdn Bhd (PPSB) in a meeting on Nov 17.

“PPSB responded that they only have two speedboat ferries for the time being.

“I hope this number will be increased to five ferries within half a year,” he said, adding that he would also request that the ferry service begin operations at an earlier time.

On the raw water matter, Zairil said the state was well aware of the urgent need to provide an additional source by tapping into Sungai Perak.

“This is because Sungai Muda can only meet the raw water needs of Penang until 2025.

“The state government will ensure that negotiations with the Perak government are concluded as soon as possible.

“A study by the Environment and Water Ministry on the Sungai Perak Raw Water Transfer Scheme (SPRWTS) project shows that the river can meet the needs of Penang and northern Perak until 2050,” he said.

Source: The Star

Almost RM8bil investment pumped into Penang

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Minister of International Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz has pledged to ensure Malaysia continue to be an important destination for investment while making the country competitive in the eyes of investors.

“I believe the task is already [a] big task but going forward, we need to ensure that Malaysia continues to achieve the momentum to ensure we attract key investment, especially in the area that brings value to the country,” he told reporters after clocking in for the first time as minister at Menara MITI at 6.07pm here on Saturday (Dec 3).

Earlier on Saturday, he was sworn in before the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah along with the two deputy prime ministers and 24 members of Cabinet at Istana Negara here.

Tengku Zafrul said Malaysia, being a small and open economy, has posted four quarters of strong gross domestic product (GDP) growth.

“By growing forward, we have to ensure that this momentum continues and I hope my role in MITI (Ministry of International Trade and Industry) with the support of the prime minister, cabinet members and colleagues, we can ensure that Malaysia navigates well for the year 2023,” he said.

On the urge to review the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by certain parties, Tengku Zafrul said he would have a discussion at the cabinet level once he received the briefing from ministry officials.

“I still haven’t been fully briefed…. it’s too early for me to comment,” he said.

Commenting on former international trade and industry minister Tan Sri Rafidah Aziz’s statement on his appointment, Tengku Zafrul said the appointment was the prerogative of the prime minister and thus, the focus would be on ensuring his role as the minister of MITI to assist the country.

According to a report by a local news portal, Rafidah questioned the appointment of Datuk Seri Dr Ahmad Zahid Hamidi and Tengku Zafrul to the Cabinet, likening it to “scraping the bottom of the barrel”.

The former finance minister was appointed as international trade and industry minister under the administration of Datuk Seri Anwar Ibrahim, the third prime minister to name him into the Cabinet after Datuk Seri Ismail Sabri Yaakob and Tan Sri Muhyiddin Yassin.

Source: Bernama

Zafrul pledges to ensure Malaysia continues to be competitive, important investment destination

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Former finance minister Datuk Seri Tengku Zafrul Abdul Aziz has been appointed as the international trade and industry (Miti) minister under the administration of Datuk Seri Anwar Ibrahim, the third prime minister to name him in their Cabinet line-up after Datuk Seri Ismail Sabri Yaakob and Tan Sri Muhyiddin Yassin.

Tengku Zafrul will replace former senior minister and Miti minister Datuk Seri Mohamed Azmin Ali, who was defeated in the 15th general election.

The former banker embarked on his ministerial journey on March 9, 2020, when he was appointed as finance minister in Muhyiddin’s Cabinet, and was reappointed to the same post on August 27, 2021, under Ismail Sabri’s administration.

He oversaw the implementation of eight economic stimulus packages worth RM530 billion to address the Covid-19 outbreak.

Tengku Zafrul was also in charge of the National Recovery Plan and Coordination Unit Between National Agencies (Laksana).

He contested for the Kuala Selangor parliamentary seat in the 15th general election under Barisan Nasional but lost.

Prior to his government appointment, Tengku Zafrul was the group chief executive officer and executive director of CIMB Group Holdings Bhd.

Azmin served as senior minister of the economic cluster and as Miti minister from 2020 to 2022.

Source: Bernama

Tengku Zafrul returns as Miti minister under unity government

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Global semiconductor equipment billings rose 7% year-over-year to US$28.75 billion in the third quarter of 2022, according to the US-based Semiconductor Equipment & Materials International (SEMI).

In its Worldwide Semiconductor Equipment Market Statistics (WWSEMS) Report released on Wednesday (Nov 30), SEMI said the figure was 9% higher quarter-on-quarter.

SEMI president and chief executive officer Ajit Manocha said semiconductor equipment revenue growth in the third quarter remained in line with positive forecasts for 2022.

“The 9% quarter-over-quarter increase in equipment spending for 3Q reflects the semiconductor industry’s determination to bolster fab capacity to support long-term growth and technology innovation,” he said.

The data is compiled from information submitted by members of SEMI and the Semiconductor Equipment Association of Japan (SEAJ).

The WWSEMS Report is a summary of the monthly billings figures for the global semiconductor equipment industry.

Source: The Edge Markets

Global semicon equipment billings up 7% y-o-y to US$29 bil in 3Q, says SEMI

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Advancencon Holdings Bhd is collaborating with the Perak State Development Corporation (PKNPk) to initiate a pilot project for the development of centralised labour quarters (CLQ) in Perak, with the aim of supporting the growth rate of the state’s industrialisation and economic development.

Located in Asrama Murni in Jelapang, near Ipoh, the pilot project is a public-private partnership in which Advancecon will contribute the necessary technical expertise to reduce the risk of CLQ implementation. It is currently expected to house up to 368 workers.

“One of the understandings in the collaboration agreement between PKNPk and Advancecon is for this pilot project to be a benchmark to continue the development of CLQ throughout Asrama Murni and other potential locations,” said PKNPk chief executive Datuk Redza Rafiq Abdul Razak.

“The CLQ development aims to have the capacity to accommodate 12,000 workers within five years to support Perak’s rapidly developing industrial sector,” Redza said in a statement.

Advancecon managing director Phum Ang Ka said he hopes that the success of the pilot project would pave the way for the state’s ongoing development.

“Advancecon’s expertise in undertaking construction works for reputable public and private-sector projects for more than two decades shows that we understand the importance of timeliness and work quality for this CLQ pilot project, and are equally committed to ensuring its success together with PKNPk,” Phum added.

Meanwhile, Perak Menteri Besar Datuk Seri Saarani Mohamad sees positive developments with the pilot project, which has already begun to accommodate employees from major multinational corporations such as Carsem.

“The state government, through PKNPk, is already in discussions with more international and domestic companies to advocate the benefits of CLQ, and is confident of securing more tenants for future phases,” said Saarani.

Advancecon shares price closed up 0.5 sen or 2% to 25.5 sen on Thursday (Dec 1), giving the group a market capitalisation of RM126 million.

Source: The Edge Markets

Advancecon partners with Perak govt to initiate centralised labour quarters project

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The Perak state government, in collaboration with the State Development Corporation (PKNP) will implement a project to build centralised labour quarters (CLQ) in industrial areas in the state that can accommodate 12,000 foreign workers within the next five years.

Menteri Besar Datuk Seri Saarani Mohamad said the pilot project carried out in the Jelapang industrial estate here would be used as a benchmark model for developing CLQ projects in large-scale industrial areas with a high number of foreign workers.

“For example, this CLQ project will also be implemented in the Kerian industrial estate, Kamunting industrial park, Silver Valley Technology Park, Kinta District industrial area, as well as the Bemban and Seri Iskandar industrial parks.

“The implementation of the CLQ project signifies the state government’s commitment to move forward to support the rapid growth of industrial development in the state,” he said after visiting the CLQ project site at Asrama Murni in Persiaran Jelapang here on Thursday (Dec 1).

Commenting further, Saarani said the CLQ project would be built and managed in compliance with the Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446) for the well-being of workers.

He said the CLQ project offered high standards and value-added services as more international and domestic companies support it with more tenants for future phases.

“This CLQ pilot project is in line with the 2030 Perak Prosperity Development Plan, which is based on five basic principles to drive sustainable, inclusive and dynamic socio-economic development,” he said, while not disclosing the total cost of the project.

Source: Bernama

Perak to build centralised labour quarters for foreign workers in next five years, says MB

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Industrial areas that come complete with worker dormitories as well as much cheaper industrial land enabled Johor to overtake Selangor in terms of manufacturing investment value in the first six months of 2022.

Selangor Standing Committee on Investment, Trade, Industry and Small and Medium Industries chairman Datuk Teng Chang Khim said the state recorded approved investments totalling RM4.88 billion during that period, while Johor attracted investments of RM6.67 billion.

However, in terms of the number of manufacturing projects approved, he said Selangor recorded 118 projects, higher than any other states, including Johor, which registered 68 projects.

“In attracting investments, Selangor and Johor have similar strengths, such as having a strategic location, port facilities and highway networks linking various areas,” he said at the Selangor state assembly sitting here on Thursday (Dec 1).

He was replying to Datuk Mohd Shamsudin Lias’ (Barisan Nasional-Sungai Burong) query on why total investments in Selangor fell to the second place, after Johor, in the January-June 2022 period.

Teng said that in an effort to bring in more new investments, the state government through investment promotion agency Invest Selangor Bhd had continuously implemented various programmes to ensure the state remains relevant and continues to attract investor confidence.

He said this includes strategic planning through the First Selangor Plan (RS-1), the setting up of the Integrated Development Region in South Selangor, the Selangor Biotechnology Action Plan, and the Selangor Rail Industry Council, as well as investment promotion incentive programmes.

Source: Bernama

Worker dorms, cheaper land enable Johor to surpass Selangor in attracting investments, state assembly told

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The Selangor government plans to take over part of the federal roads in the industrial areas that are managed by the Public Works Department (JKR) and hand them over to the local authorities (PBT).

State Local Government, Public Transport and New Village Development Committee chairman Ng Sze Han said the PBT has the allocation to repair roads in the areas concerned.

Discussions are in progress between the PBT and JKR on the matter, he said in response to a supplementary question from Datuk Dr Ahmad Yunus Hairi (PAS-Sijangkang) at the state assembly sitting here on Thursday (Dec 1).

In another development, Ng said the local government authorities were also monitoring the status of abandoned premises in industrial areas to avoid them from becoming dumping grounds and being used for unlawful activities.

He said this in response to an oral question from Syamsul Firdaus Mohamed Supri (PH-Taman Medan) on the matter.

Source: Bernama

Selangor plans to take over federal roads in industrial areas

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KL International Airport (KLIA) and Langkawi International Airport (LGK) retained their positions as the world’s best airports by achieving perfect scores of 5.00 respectively in the Airport Service Quality (ASQ) survey in the third quarter (Q3 2022).

Both airports attained the same top spot in Q2 2022, Malaysia Airports Holdings Bhd (MAHB) said in a statement today.

“For Q3, KLIA shared the achievement in the over 40 million passengers per annum (mppa) category alongside eight other airports. LGK was the only airport in its category of 2–5 mppa to score full points in the survey,” said the statement.

ASQ is a global survey by Airports Council International (ACI) that measures overall passenger satisfaction for terminal safety, facilities, services, and cleanliness.

According to MAHB managing director Datuk Iskandar Mizal Mahmood, air travel is experiencing a more rapid recovery in the second half of the year.

“With increasing passengers coming through the airport, we wish to remove any unnecessary stress from travelling by ensuring efficient procedures, well-functioning facilities and hospitable airport staff,” he said.

More airlines have resumed their flight routes to Malaysia in October including KLM Royal Dutch Airlines, All Nippon Airways and Lion Air who fly non-stop from Amsterdam, Tokyo-Haneda and Surabaya to Kuala Lumpur, respectively.

MAHB also witnessed the reinstatements of the Manila–Kota Kinabalu route by Cebu Pacific and the Penang–Denpasar route by AirAsia in Malaysia.

On traffic performance, MAHB said passenger traffic performance in October for its Malaysia operations registered 5.4 million movements with 2.1 million international passengers and 3.3 million domestic passengers, while its Turkiye operations at Istanbul Sabiha Gokcen International Airport (SAW) recorded 2.9 million (international: 1.5 million; domestic: 1.4 million).

Compared with the preceding month, international traffic increased by 9 per cent at the group’s airports in Malaysia and 3 per cent at SAW.

Overall, MAHB recorded 8.3 million passenger movements for October, surpassing the 8 million mark for the second month in a row.

Source: The Malaysian Reserve

KLIA and Langkawi are world’s best in Q3 2022 airport survey

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Dutch Lady Milk Industries Bhd (DLMI) has announced the optimisation of its dairy production operations, which will see its milk powder operations in Petaling Jaya discontinued.

Its milk powder operations will also not be carried out at the company’s new manufacturing facility in Bandar Enstek, Negeri Sembilan.

This move, however, does not impact the supply of milk powder products for the Malaysian market as it will be sourced from parent company Royal FrieslandCampina NV’s network in Asia which will continue to provide for the needs of the Malaysian market, its managing director Ramjeet Kaur Virik said.

Royal FrieslandCampina NV, a Dutch company, is one of the largest dairy cooperative companies in the world.

DLMI will also be discontinuing the production of some of its other lines in phases over the next two years starting on May 31, 2023, in the intended optimisation exercise, she said.

The intended optimisation is in line with the approach of FrieslandCampina to enhance business operations and shift to a more sustainable business model that drives focus, innovation, and efficiency for FrieslandCampina’s long-term strategic reasons and to continue to cater to consumers in the future.

“Unfortunately, as a result of this decision that we have taken, about 100 existing job roles will be impacted. These positions will not be required at our new facility at Bandar Enstek,” she revealed, adding that this will be done in phases starting from May 31, 2023, until up to the second quarter of 2024.

“DLMI as a company has about 600 employees and this optimisation impacts specific lines.

“We have multiple lines such as the liquid business and powder business. Many of our employees will continue their career journey with us at Bandar Enstek,” she said.

DLMI is investing RM540 million in the new facility in Bandar Enstek as a future hub for the liquid business in the region. The new facility will replace the current operations in Petaling Jaya.

Hence, the optimisation of the supply chain is going by product type, to ensure economies of scale and efficiency, she revealed.

“The 100 people are mainly from the powder plant and the optimisation of some other lines in phases in the next two years (starting May 31, 2023),” she told Bernama.

“We will honour our contractual obligations to help our impacted employees transition. DLMI is committed to supporting all our employees and ensuring business continuity,” she said.

Ramjeet said besides monetary compensation, DLMI is bringing in the right experts to give the impacted employees coaching and workshops on financial wellness, entrepreneurship as well as digital businesses to prepare them for careers after they leave the company.

“These are among the initiatives DLMI is putting in place to help the affected employees make the transition,” she added.

For those who are moving with DLMI from its current operations in Petaling Jaya to Bandar Enstek, there will also be transition and relocation support, said Ramjeet.

There will also be upskilling and reskilling of those moving to Bandar Enstek as it is envisioned as a high technology-based manufacturing plant.

“We will also be working with the Negeri Sembilan government to explore housing and schooling options for those who relocate. They will also be shuttle services from strategic locations here,” she continued.

“The business model at DLMI remains unchanged, stable, and solid. We have to make decisions that look into the overall commercial considerations for the long-term in order to continue winning in the market,” she said.

DLMI is committed to providing high-quality, halal, and affordable nutritious products long into the future with its impending move to Bandar Enstek.

“With the implementation of Industry 4.0 technology at the new manufacturing facility, DLMI strives to achieve operational excellence and efficiency to continue winning in Malaysia and future markets,” she added.

The adoption of new innovations will allow the organisation to meet its dairy production growth and immensely benefit the growing local dairy industry while improving the quality and volume of local raw milk production.

DLMI has been part of the Malaysian landscape since 1963 and has been part of its nation-building ever since and will continue this important role in the future, said Ramjeet.

“We continue to support the government’s health agenda, especially on the nutritional status of Malaysians and the country’s food security,” she added.

Source: Bernama

Dutch Lady Milk Industries to optimise dairy production operations, company says business remains solid

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