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Malaysia has secured a total of RM63.02 billion in proposed investments in the United States (US) mainly from technology giants, Prime Minister Datuk Seri Anwar Ibrahim said today.

Out of the total, RM8.33 billion investments were from the trade and investment mission to the US organised before the start of the Asia-Pacific Economic Cooperation (Apec), while the remaining investments were from the various one-on-one meetings held by Anwar here.

The investments from the trade mission are from Abbott Laboratories, Mondelez International, Amsted Rail, Hematogenix, PerkinElmer, Ford Motor Company, Boeing, Amazon Web Services, Enovix, and Lam Research.

“The remaining (investments) have been secured from one-on-one meetings with technology giants such as Google, Enovix Cooperation, Microsoft, TikTok and TPG,” he told the media at the end of his official visit to the US, here.

TikTok’s investment is quite big, he said, adding that it all boils down to how fast Malaysia approves these investments.

“And taking into consideration any necessary approval and incentives. I emphasise the issue of technology transfer, training so that our capabilities in the fields we explore are more advanced and challenging,” he said.

Malaysia is also actively courting electric vehicle players, including Tesla.

“Well, he seems to be positive about Tesla’s presence in Malaysia,” Anwar said when asked on his video call with Tesla’s chief executive officer Elon Musk.

Anwar, who is also the Finance Minister, said Tesla’s presence in Malaysia is a very good indicator for the country.

“The Super Charging station will be further increased in Malaysia,” he said.

Malaysia’s stance on the importance of efforts to attract investment was also voiced by the prime minister at the Apec 2023 Chief Executive Officer (CEO) Summit, particularly concerning the aspect of clear and consistent investment policies.

“The implementation of these policies and strategies plays a role in attracting investment into the country.

“The need to establish a one-stop centre for crucial investments is essential but this one-stop agency should also be more proactive in facilitating and expediting the implementation processes and procedures related to investments.”

On the issue of the US-China conflict, Malaysia would always adhere to a neutral stance as both countries are important trading partners for Malaysia.

“I emphasise that Malaysia and Asean countries in general should not be dragged into or involved in the cold war between major world powers,” he said.

Accompanying him on the official visit were his wife Datuk Seri Dr Wan Azizah Wan Ismail, Foreign Affairs Datuk Seri Dr Zambry Abd Kadir Minister, Communications and Digital Minister Fahmi Fadzil and other members of the delegation that were received by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, Malaysia’s Ambassador to the United States Datuk Seri Mohamed Nazri Abdul Aziz and Consul General of Malaysia in Los Angeles Anil Fahriza.

“I am happy we had the opportunity to express and be able to articulate our position, engage privately and discuss intimately and not in the combative mode but at least to secure understanding and collaboration,” he said.

The prime minister also participated in the Indo-Pacific Economic Framework for Prosperity (IPEF) Leaders’ meeting hosted by United States President Joe Biden on Nov 16, 2023.

The meeting was held to recognise the success of IPEF ministers in signing the Pillar 2 Agreement (Supply Chain) on Nov 14, 2023.

“Additionally, the leaders of IPEF member countries were also informed that substantive conclusions have been reached for Pillar 3 – Sustainable Economy and Core 4 – Fair Economy negotiations while Core 1 – Trade negotiations have made good progress.

“Overall, Malaysia welcomes these developments and will continue to collaborate with all IPEF countries to conclude Pillar 1 negotiations for the collective benefit of the IPEF region,” he added.

Source: Bernama

Malaysia bags RM63.02bln in US investments — PM

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Phabritek Sdn Bhd, which specialises in the manufacturing of optoelectronic multiplexers, modules and components, hasannounced the opening of its new manufacturing facility in Batu Kawan, near here, with an initial investment of RM100 million.

Phabritek, a wholly-owned unit of Accelink Technologies Co Ltd, said the new facility will primarily focus on the production of optoelectronic multiplexers, modules and components to support modern communication segment such as optical communication.

In a joint statement by the Malaysian Investment Development Authority (MIDA) and Phabritek today, Penang Chief Minister Chow Kon Yeow was quoted as saying that the official opening of the facility marked the beginning of a prosperous and enduring partnership between Phabritek and Penang.

Chow also encouraged Phabritek to explore opportunities within the region and expressed hope for their continued expansion and unparalleled achievements in their operations.

The statement also quoted Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Tengku Aziz, who said that Phabritek’s investment would foster technological advancement and strengthen Malaysia’s position as a key hub in the global supply chain for electrical and electronics (E&E) products, as stipulated in the New Industrial Master Plan 2030.

“This will certainly help elevate our manufacturing sector’s tech ecosystem for sustained growth and innovation,” he added.

Meanwhile, MIDA chief executive officer Datuk Arham Abdul Rahman said the new manufacturing facility would provide further impetus to Malaysia’s E&E ecosystem, supported by local talent and a robust semiconductor supply chain.

He added that MIDA is committed to the industry’s long-term growth across the value chain and is dedicated to creating a thriving ecosystem for a whole range of E&E activities in Malaysia for both large and small companies.

“Phabritek’s investment in Batu Kawan, aligns seamlessly with our commitment, and we stand ready to facilitate and support their endeavours, ensuring the success of this venture and contributing to the advancement of Malaysia’s position in the global E&E landscape,” he said in the statement.

Commenting on Phabritek’s investment decision, Chinese Consulate General in Penang Zhou Youbin said the state’s strategic locations and conducive manufacturing industry ecosystem have significantly facilitated the company’s decision to set up this plant.

He also hoped that Phabritek is able to showcase its strengths and emerge as an outstanding representative of the China-Malaysia cooperation, setting a new benchmark for practical collaboration between the two countries.

“We are eager to promote friendly exchanges and mutually beneficial cooperation between the people of the two places, deepen mutual understanding and friendship, and provide high-quality consular services to people from all walks of life.

“We are convinced that through unremitting efforts, the China-Malaysia comprehensive strategic partnership will continue to develop steadily and create more mutually beneficial and win-win opportunities between the two nations,” he added.

Source: Bernama

Phabritek Opens New Facility in Batu Kawan with RM100 Mln Initital Investment

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The trade and investment mission to the United States (US) organised before the start of the Asia-Pacific Economic Cooperation (APEC) has successfully generated at least RM8.33 billion cumulatively, said Minister of Investment, Trade and Industry Datuk Seri Tengku Zafrul Tengku Abdul Aziz.

In a press conference with the Malaysian media here, today, he said the companies included Abott Laboratories, Mondelez International, Amsted Rail, Hematogenix, PerkinElmer, Ford Motor Company, Boeing, Amazon Web Services, Enovix, and Lam Research.

“Besides the investment mission, the Ministry of Investment, Trade and Industry (Miti) has also organised meetings between Prime Minister Datuk Seri Anwar Ibrahim and US technology giants such as Google, Enovix Cooperation, Microsoft, TikTok, as well as TPG,” he said.

Commenting on his participation in the 34th APEC Ministerial Meeting, Tengku Zafrul said the emphasis was on economic integration through strengthening cooperation among the APEC members particularly in the economic sector.

Focus was also given on interests to ensure regional stability and encouraging all APEC economies to double their efforts to realise Putrajaya Vision 2040 amid the current geopolitics and geoeconomics.

“Most importantly, our presence and the (presence of the) respective consulting teams here are to ensure that Malaysia’s interest under the international platforms are assured,” he added.

Source: Bernama

Investment mission to US generates RM8.33 bil, says Tengku Zafrul

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Prime Minister Datuk Seri Anwar Ibrahim and his Canadian counterpart Justin Trudeau discussed ways to strengthen bilateral trade and investment between both countries on the sidelines of Apec Economic Leaders Meeting here.

The meet today was upon Canada’s request.

Besides trade and investment, the discussions also centered around cooperation in cybersecurity, education, trade, energy, and climate change, said Anwar, who is also the Finance Minister.

The total trade between Malaysia and Canada in 2022 was RM10.35 billion, an increase of 4.2 per cent, from RM9.93 billion recorded in 2021.

In 2023, Putrajaya and Ottawa celebrates 66 years of official diplomatic relations.

Anwar said both of them exchange views on the issue of Palestine.

The Canadian Prime Minister highlighted the need to protect civilians on both sides and to address the humanitarian crisis.

Trudeau upholds the two-state solution and called for an independent Palestine but reiterated support for the need for Israel to protect itself and ensure its security.

Anwar stressed the need to address the root cause of the conflict and end Israeli occupation, and also highlighted that Israel has committed various atrocities against Palestinians in the past decades with impunity and continues to build and expand illegal settlements.

Both leaders agreed that the current conflict should serve as a wake-up call for the international community on the need to end Israeli occupation based on the two-state solution.

On other development, Trudeau pledged to do more to assist Rohingya refugees in Malaysia, said Anwar.

Malaysia also took the opportunity to raise the visa issue with Canada, whereby Malaysian tourists are required to obtain Canadian visa with a waiting period between four and six months, while Canadian tourists are accorded visa-on-arrival by Malaysia.

Malaysia’s Prime Minister reiterated his request that a reciprocal arrangement be accorded to Malaysia, similar to visa-on-arrival facility accorded by Canada to Malaysia’s neighbouring countries in the region.

In response, Trudeau promised that he would rectify the situation as soon as possible.

Source: Bernama

Anwar, Trudeau discuss ways to strengthen trade, investment

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Nextgreen Global Bhd has inked a memorandum of agreement with Malaysian Bioeconomy Development Corporation Sdn Bhd to collaborate on the potential of enhancing biomass into higher value products, utilising biotechnology applications for the biomaterial and agricultural farm sector.

In a statement today, the pulp and paper manufacturer said that under this agreement, the two companies would collaborate to support the National Biotechnology Policy 2.0 Flagship Programme and the National Biomass Action Plan 2022-2030.

“(Both parties also plan) to promote the application of biotechnology in the production of downstream products from local biomass, including biofertiliser from empty fruit bunch-based pulp and paper wastewater, animal feed from oil palm fronds, and biomaterials from oil palm empty fruit bunches.

“(We also intend) to advocate for the adoption of the BioNexus status and bio-based accelerator programmes among small businesses in the biomass sector,” it said.

Nextgreen Global managing director Datuk Lim Thiam Huat said that in line with the company’s commitment to embracing a circular economy, it was eager to explore the potential products that can be produced from biomass.

“The company has studied biomass production for a significant amount of time and it looks forward to working together with Bioeconomy Corp to foster innovation, responsible resource management, and promote environmental sustainability, contributing to broader sustainability goals at the national and global levels,” he said.

Bioeconomy Corp chief executive officer Mohd Khairul Fidzal Abdul Razak said that the firm was thrilled to share its goal of fostering a sustainable bio-based market with Nextgreen Global.

“Its circular economy approach in converting their oil palm waste into higher value products such as biofertilisers and animal feed is a strong showcase of Malaysia’s biomass potential,” he said.

He noted that the Malaysian fertiliser industry was valued at RM4.7 billion in 2021 and is expected to double to RM9.2 billion by 2026.

Similarly, the animal feed market, valued at RM16.5 billion in 2021, is projected to reach RM17.5 billion by 2026, he said.

“Via this agreement, Bioeconomy Corp endeavours to champion environmental, social, and corporate governance principles and redefine industries through bio-based innovations, all aimed at fostering a more sustainable future in the country,” he added.

Source: Bernama

Nextgreen Global partners bioeconomy corp on biomass production

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Selangor is confident of achieving its target of RM45 billion in approved investment for 2023, said state executive councillor for investment Ng Sze Han.

This comprises RM12 billion in investments in the manufacturing sector and RM32 billion in the services sector.

In his wind-up speech for the 2024 Selangor Budget during the Selangor State Legislative Assembly sitting today, he noted that up to June, the state had already approved 657 projects from these two sectors, with a RM29.72 billion investment value.

“This recorded investment value has already exceeded half of our projection,” Ng said.

The approved investments involve 114 manufacturing projects with a total investment value of RM 14.75 billion, surpassing the state’s targeted projection for the year.

In the services sector, 543 projects were approved in the first six months of the year, with a RM14.96 billion investment value.

“Based on the encouraging investment momentum and performance, the Selangor government is confident the projected total investment can be achieved by the end of 2023,” he said.

Ng also clarified misconceptions regarding the Integrated Development Region in South Selangor (Idriss), stressing the state government has never committed to completing all projects under the initiative within five years.

“Most of these projects are privately owned, and the government’s role is to offer incentives and support for their timely implementation.

“Our focus is on facilitating these projects to drive regional growth, even though completion may extend beyond five years,” he said.

Ng added these projects will need proper approval from the respective technical agencies to avoid any negative impact on surrounding communities.

On a separate matter, Ng said the state, through its subsidiary Invest Selangor Bhd, will help local firms meet the requirements of free trade agreements, like the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

This is meant to help local enterprises flourish and be able to export their goods to the international market.

“The state government also actively collaborates with the Malaysia External Trade Development Corporation (Matrade) to assist Malaysian exporters in developing and expanding their export markets.

“Programmes like the Selangor International Business Summit (SIBS) and Selangor Aviation Show (SAS) have received endorsements from Matrade, meaning exhibitors can apply for the Federal’s Market Development Grant,” he said.

Source: Selangor Journal

Selangor convinced RM45 bln investment target to be met by year-end

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Investments made by large multinational corporations in Malaysia, such as Google and Enovix Corporation, are advantageous for the nation, particularly in light of the challenging global economic environment, experts said.

Universiti Kuala Lumpur Business School economic analyst Associate Professor Aimi Zulhazmi Abdul Rashid considered the investments brought in by these two companies after a meeting with Prime Minister Datuk Seri Anwar Ibrahim on the sidelines of the Asia-Pacific Economic Cooperation (Apec) Summit as substantial for Malaysia’s economic growth.

“(The investment) is huge, not only in terms of amount, but also in terms of prestige and building confidence among other investors, especially international corporations,” he said.

“It signifies that Malaysia is still the best place for investments.”

He added that the prime minister’s hard work should be applauded as he had successfully convinced the companies to invest and set up their operations in the country, despite the challenging global economic environment.

Google yesterday announced a strategic collaboration with the Malaysian government to invest in the country’s digital competitiveness, including infrastructure and artificial intelligence (AI) innovation programmes.

The initiative will see both parties getting together to help businesses of all sizes advance their digital competitiveness through skilling programmes, investment in digital infrastructure, responsible AI innovation and cloud-first policies.

Meanwhile, Enovix Corporation, an advanced silicon battery company, will establish its first high-volume manufacturing facility in Penang, marking a significant milestone in the company’s global expansion strategy.

Another economist, Putra Business School Associate Professor Dr Ahmed Razman Abdul Latiff said the deals would lift the Malaysian economy in various aspects, as well as boosting future investors’ confidence.

“It will definitely bring incremental benefits to Malaysia in the form of the offering of high-skill jobs that promised competitive salaries, infusion of capital into the country, transfer of high technology and creation of the supply chain ecosystem consisting of local vendors,” he said.

“This in turn will boost other investors’ confidence in placing their investment here as these deals signify the assurance that the Madani government is indeed a stable government and that it will remain in power until the end of its mandate.”

Source: NST

‘Major deals will boost future investors’ confidence’

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The Northern Corridor Economic Region (NCER) will be focusing on new and emerging sectors, including renewable energy (RE), in line with the sustainability and green agenda for the next five to 10 years.

Northern Corridor Implementation Authority (NCIA) chief operating officer Hasri Hasan said these emerging sectors have changed the agency’s method and approach to investments, human capital development as well as projects, among others.

“For example, in terms of investments, we see a lot of companies investing in Malaysia putting a lot of emphasis and priority on having their energy supply from renewable sources. Some have actually put a certain percentage like 10% to 15%.

“I think this is where cross sector collaboration is very important, When we design and also plan industrial parks for example, we need to look at how to ensure all of our industrial parks and projects have all this sustainability and also bring technologies,” he added.

Hasri said this during a special dialogue entitled Innovative Synergy Towards Sustainable Development — New Emerging Industries for Better Tomorrow at the Malaysia Sustainable Development Goals (SDG) Summit 2023: Northern Region here on Thursday.

He added that the NCIA has started to look into taking proactive measures to ensure that requirements by investors could be fully met.

“We need to discuss and collaborate with a lot of agencies and ministries in Malaysia such as the Natural Resources, Environment and Climate Change Ministry so that we can further enhance and improve the policies to attract investments,” said Hasri.

He noted that in terms of implementation, NCIA is working closely with the state governments to ensure that the planning stage addresses and fulfils investors’ requirements.

“RE [renewable energy] is one of our key focuses in the next five to 10 years so we need to ensure that all our projects, including industrial parks will incorporate RE elements,” he added.

The one-day summit was organised by the NCIA together with the Economy Ministry, aimed at supporting the federal government’s efforts to promote SDG implementation and achievements at state and local levels while raising awareness and understanding of the SDGs among Malaysians.

The summit highlighted the importance of economic corridors and their integration into the National SDG Framework and emphasised the need for alignment between SDG goals and local-level plans, programmes and projects, stressing the critical role of regional implementation in achieving the Sustainable Agenda 2030.

Source: Bernama

NCIA focusing on sustainable, emerging sectors — COO

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Tech giants Google, Enovix Corporation, Microsoft and Tiktok will extend their investments in Malaysia on a large scale, says Prime Minister Datuk Seri Anwar Ibrahim.

“I have held meetings with large companies that have acknowledged that they will extend their investments in Malaysia on a large scale,” Anwar said following meetings with these tech giants.

“A stable political system and clear policies are among the important factors for them to invest in Malaysia.

“The approval process will also give them confidence. The speed of the presence of new investors will give Malaysia a new record,” he told reporters from Malaysia after the meetings.

Google was represented by its president and chief investment officer Ruth Porat, Enovix by its chief operating officer Ajay Marathe, Microsoft Asia by its president Ahmed Mazhari and TikTok by chief executive officer Shou Zi Chew.

The San Francisco Bay Area is home to many of the biggest Fortune 500 companies, which are the most innovative firms in artificial intelligence (AI) development, biotech, software, clean technology, and social media.

Anwar – who is also the Finance Minister – has also received a courtesy call from TPG’s founding partner, executive chairman and director Jim Coulter. TPG is a leading global alternative asset management firm.

The Prime Minister arrived here on Monday (Nov 13) for the 30th APEC Economic Leaders’ Meeting (AELM) from Nov 14 to 17, marking his maiden visit to the official meeting as the Prime Minister of Malaysia.

Also present during the meetings were Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, Communications and Digital Minister Fahmi Fadzil, Malaysia’s ambassador to the United States Datuk Seri Mohamed Nazri Abdul Aziz as well as other senior government officials.

Source: Bernama

Tech giants to extend investments in Malaysia, says Anwar

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Nasdaq-listed Enovix Corporation, which is an advanced silicon battery company, will invest a total of US$1.2 billion (RM5.8 billion) in Malaysia over a period of 15 years, which includes an RM315 million manufacturing line announced in August.

“With more than three decades of personally working closely with the Malaysian government authorities and having successfully built and run several large factories, choosing Malaysia for our first high-volume manufacturing facility was an easy decision,” its chief operating officer Ajay Marathe said.

He said Malaysia’s deep pool of technical talent, business-friendly environment and close proximity to our vendors and our customers’ manufacturing facilities, makes it an ideal location for us to help develop the battery supply chain ecosystem and manufacture and scale our next-generation batteries.

The manufacturing line co-partnered with YBS International Bhd will be in Penang

Enovix Malaysia Sdn Bhd is currently in the process of installing its machinery and is projected to be fully operational in 2024, it said in a statement here today.

The company’s investment plan was disclosed to Prime Minister Datuk Seri Anwar Ibrahim during a one-on-one meeting held at the sidelines of the APEC Leaders’ Week 2023 here Wednesday.

“We welcome Enovix’s strategic decision to establish its first high-volume manufacturing facility in Malaysia, which signifies our appeal as a preferred investment destination in Southeast Asia for advanced technology companies,” Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said.

He said Enovix’s establishment of its hi-tech battery technology facility in Malaysia is in perfect alignment with the missions of our New Industrial Master Plan 2030 and promises significant local spillover impact, notably the creation of substantial high-quality job opportunities for Malaysians, and the enhancement of our nation’s industrial landscape.

“As Enovix lays down its foundations in Malaysia, we foresee its transformation into a key industry collaborator and contributor to our economic progress and development,” Malaysian Investment Development Authority’s (MIDA) chief executive officer Datuk Wira Arham Abdul Rahman said.

“Its investment in Malaysia is a testament to the company’s trust in the country’s capabilities and workforce, and fortifies Malaysia’s research and development ecosystem.

“MIDA looks forward to a strengthened partnership with Enovix in the years ahead.”

Enovix is headquartered in the United States with locations in India, South Korea and Malaysia. Enovix’s battery technology application extends to IoT, mobile, computing devices and vehicles.

Source: Bernama

Advanced silicon battery firm Enovix to invest RM5.8bil in Malaysia over 15 years

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HAVING branched out into warehousing during the Covid-19 pandemic and reaped significant benefits, logistics services provider Tri-Mode System (M) Bhd will continue to work the segment on growing demand.

Its founder and group managing director Datuk Hew Han Seng tells The Edge that the revenue contribution from the warehousing segment, which increased fivefold to 7.6% for the year ended June 30, from the corresponding period the year before, is anticipated to reach at least 15% in the coming financial year after its third warehouse becomes operational.

Currently, the group has two warehouses in Pulau Indah Industrial Park (PIIP) in Klang, Selangor, measuring 85,000 sq ft and 28,000 sq ft respectively, while a third facility, slated for completion in the fourth quarter of this year, is under construction nearby.

The third facility comprises a three-storey office building with a total built-up area of 136,803 sq ft and warehousing storage space of 125,000 sq ft, with 24 loading bays to house up to 20,000 pallets.

“The addition of this third warehouse will more than double the current [warehousing capacity of] 113,000 sq ft to 238,000. The space in the third warehouse has been fully taken up as we have secured a letter of acceptance from our client for the warehouse space and services,” says Hew.

Major distribution centres such as IKEA, Shopee, Luxchem Corp Bhd and Samchem Holdings Bhd are located in PIIP.

Tri-Mode’s key warehousing customers are local conglomerate manufacturers of food and packaging. Declining to name the key customers, Hew says they are secured by long-term service contracts.

In addition, the group announced last Tuesday the proposed acquisition of three parcels of leasehold land encompassing 12 acres in Pulau Indah, Klang, for RM42 million to expand its warehousing and logistics capacity. Tri-Mode targets to have a total of at least one million sq ft of warehousing space, or 100,000 to 125,000 pallet spaces, in the next five years.

Tri-Mode expects the acquisition, which is to be funded internally and/or via bank borrowings, to be completed in the first quarter of 2024 (1Q2024) subject to shareholders’ approval at an extraordinary general meeting before the year end.

Tri-Mode’s 2022 annual report shows that the ACE Market-listed company’s net profit for the financial year ended Dec 31, 2019 (FY2019), which stood at RM2.56 million, moved upwards during the pandemic to RM5.54 million in FY2020, RM7.32 in FY2021 and RM10.47 million in FY2022. Revenue grew from RM81.81 million to a peak of RM133 million during the period.

Admittedly, revenue contribution from the warehousing segment, which stood at 1.6% and 1.8% in FY2021 and FY2022, was small compared with the core contributions from the sea freight and container haulage segments. However, Hew points out that the group’s diversification into warehousing and curtain siders, a supporting extension to its transport fleet for local distribution, was meant to capitalise on growing domestic demand while navigating the global supply chain woes wrought by the pandemic and compounded by the war between Russia and Ukraine and the recent crisis in the Middle East.

Meanwhile, the group’s proposed private placement, announced in September 2021, representing not more than 20% of the total number of issued shares, lapsed on Sept 21, 2022, after a six-month extension. Hew says the fundraising exercise was meant for the expansion of the warehousing arm.

“The group currently does not have plans for another private placement as the market situation is not suitable,” he says, adding that Tri-Mode’s land acquisitions and construction of the warehouses will be funded internally as well as via bank borrowings.

Hew controls the company with a direct stake of 50.2% and an indirect stake of 20.63% via his wife Datin Sam Choi Lai, who is an executive director of the company.

Uplift in integrated freight services expected post-4Q

Hew says the company continues to face numerous industry challenges such as a worldwide downward trend in the ocean and air freight space because of price undercutting in certain service sectors and recruitment difficulties due to the long working hours and commitment required in logistics services.

“We also took other steps such as introducing cost reduction exercises to improve the company’s profitability, such as cost savings from wastage, changing from conventional operations to digitalised operations (fleet management), and computerising our inventory management. We have also had to deal with rising operational costs and a manpower shortage,” he says.

For the six months ended June 30, Tri-Mode’s sea and air freight segments contributed 47.2% and 2.7% respectively to its revenue, falling from 78.2% and 6.8% year on year. Warehousing (7.6%), container haulage (38.7%), freight forwarding (3.3%) and marine insurance (0.4%) grew from 1.4%, 11.8%, 1.5% and 0.2% previously.

Hew attributes the reduced revenue contributions from the sea and air freight segments to the decreasing trend in global sea and air freight rates and volume as well as the slowdown in global trade volume post-pandemic.

Having observed an improvement in the third quarter, he forecasts a more pronounced recovery post-4Q amid “seasonal requirements, anticipated recovery of the world economy and a more stable local political environment”.

“On the other hand, our haulage and freight forwarding services have remained stable and are experiencing continuous growth, aligning with the positive trajectory of the national economy,” says Hew.

“Lastly, our e-commerce logistics platform [Hi-Clicks] offers the convenience of consumers engaged in overseas online shopping (for example, the US, Japan, South Korea and Taiwan) and delivery back to Malaysia. Cross-border online shopping will become more common among consumers and the demand for these services will be higher when it reaches a more mature stage, and our team is dedicated and well prepared to meet the demand when the market eventually reaches that point.”

For 2Q2023 ended June 30, Tri-Mode posted a net profit of RM442,000, down 60.6% from RM1.1 million a year earlier, on 41.5% lower revenue of RM17.9 million. Net profit of RM743,000 for the cumulative six-month period was a fraction of the RM6.3 million recorded in the same period the year before, on revenue of RM34.8 million compared with RM70.7 million earlier.

In a Bursa Malaysia filing, the group attributed the lower revenue to seasonal factors such as sales fluctuations during festive periods such as Hari Raya and Chinese New Year given the shorter working days, as well as lower global freight rates compared with the hiked up global freight rates during 2022, trade barrier tension between the US and China, and slowdown in global commerce volume.

“Gross profit reduced by 20.49% as a result of lower revenue compared with the previous year’s corresponding quarter. However, the group managed to increase its gross profit margin from 15.01% in 2022 to 20.39% in 2023 despite lower revenue achieved during the quarter in review,” says Tri-Mode.

On dividends, Hew says the board of directors intends to continue paying out at least 30% of the group’s net profit excluding non-recurring income. The group paid out a dividend per share of one sen in FY2020 and FY2021 and 1.05 sen in FY2022.

Bloomberg data show that the sole analyst — Rakuten — covering the counter has a “buy” call with a target price of 66 sen.

The share price of Tri-Mode had fallen 24% from this year’s high of 45 sen at end-January to close at 34 sen last Tuesday, valuing the company at RM56.44 million.

Source: The Edge Malaysia

Tri-Mode capitalises on warehousing growth momentum

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Google, Malaysian govt announce strategic collaboration to create skill opportunities for 300,000 by 2026

Prime Minister Datuk Seri Anwar Ibrahim (5th, left) witnessing the exchange of Memorandum of Understanding (MoU) between Chief Executive Officer of Malaysian Investment Development Authority (MIDA), Datuk Wira Arham Abdul Rahman (fourth, left) and President and Chief Investment Officer; Chief Financial Officer of Alphabet and Google, Ruth Porat (5th, right) here today. — Bernama pic

The Malaysian government and Google yesterday announced a strategic collaboration to create inclusive growth opportunities for more Malaysians and homegrown companies in the fast-growing digital economy.

The collaboration brings both parties together to help businesses of all sizes advance their digital competitiveness through skilling programmes, investment in digital infrastructure, responsible artificial intelligence (AI) innovation, and cloud-first policies, Google said in a statement here today.

“This latest commitment by Google, aimed at accelerating local innovation and talent development in the field of AI, will certainly boost the nation’s digital competitiveness, in line with the Madani Economy Framework and the New Industrial Master Plan 2030 (NIMP 2030),” Prime Minister, Datuk Seri Anwar Ibrahim said today.

Malaysia’s Madani Economy Framework aims to increase the size of Malaysia’s economic pie, as well as ensure that all stakeholders — particularly the rakyat and small businesses — will enjoy the ensuing socio-economic benefits, he said.

Google said the latest initiatives are built on its investments in Malaysia over the last 12 years.

In 2022 alone, the company’s products and programmes supported more than 47,900 jobs and also contributed, directly and indirectly, an estimated US$2.8 billion in economic benefits to local businesses.

“The partnership we are announcing today with the government of Malaysia aligns Google’s local mission of Advancing Malaysia Together with the government’s goal to create a supportive ecosystem for innovation that includes more meaningful and equitable job opportunities,” said president and chief investment officer; chief financial officer, Alphabet and Google, Ruth Porat.

Meanwhile, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz welcomed Google’s continued contributions to the rakyat and homegrown businesses, especially through programmes that nurture skilled talent and help Malaysia’s small businesses scale regionally.

“Apart from supporting the achievement of NIMP 2030’s missions, these will also enhance Malaysia’s overall global competitiveness to foreign investors. The Ministry of Investment, Trade and Industry and its agency, the Malaysian Investment Development Authority (MIDA) will do our utmost to facilitate Google’s planned investments in Malaysia.”

Inclusive skilling opportunities for 300,000 Malaysians by 2026

To provide Malaysians from all backgrounds with more digital training opportunities, Google Cloud, CloudMile and Trainocate are making five digital learning paths available at no cost.

“Accessible through the Go Cloud program — which aims to upskill 300,000 Malaysians by 2026 — the learning paths consist of online courses to help individuals better apply generative AI (gen AI), data analytics and cloud-based productivity tools.”

Learners who complete the five learning paths will earn digital skills badges that they can share on their resumes and extended 30-day access to more learning paths at no cost.

Google said this builds on Gemilang, a digital training programme that has provided 31,000 Google Career Certificate scholarships to less fortunate individuals in partnership with educational institutions and nonprofits.

“This helps Malaysians earn professional certifications – at no cost – for entry-level jobs in high-demand fields such as data analytics, IT support as well as e-commerce and digital marketing.”

Besides this, the government and Google Cloud will embark on joint AI launchpad initiatives to create new jobs, enhance public service delivery and help local companies tap global markets.

Google will also support the government’s refinement of its existing Cloud First Policy for Malaysia, contributing policy expertise and its Secure AI Framework to account for the latest advancements in cloud computing and AI.

This reinforces the government’s efforts to prioritise the use of resilient, cost-efficient, and innovation-driven cloud services over capital-intensive on-premise systems, while aligning with global best practices on data privacy and security standards.

Source: Bernama

Google, Malaysian govt announce strategic collaboration to create skill opportunities for 300,000 by 2026

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TH Properties Sdn Bhd (TH Prop) has launched Phase 3 of the Bandar Teknologi Enstek Industrial Park or Techpark@Enstek in Negri Sembilan with a gross development value of RM1.4 billion.

Group chief executive officer Azman Ibrahim is confident the latest phase of its techpark, covering 249.5 hectares of freehold land, will record robust sales uptake similar to its previous two industrial park phases.

TH Prop also expects strong and steady demand in the coming year for the latest phase, driven by the accelerated growth in Malaysia’s industrial property demand.

“TH Prop is upbeat about the phase’s growth prospects, owing to the park’s prime location, seamless connectivity and access, along with the Negeri Sembilan state government’s receptive approach and open policy towards investors, especially in high-tech industries.

“We have already received inquiries from a few companies interested in the purchase of industrial plots, and we are optimistic that this phase will register healthy demand similar to the trend recorded by the previous two phases in techpark@enstek,” he said after the launch here today.

Phase 3 will be developed in six stages over 14 years, Azman said, adding that the development mix will include industrial and commercial plots as well as semi-detached factories.

Phase 1 and Phase 2 of Techpark@Enstek had been 100 per cent and 88 per cent sold respectively, he claimed.

Cumulatively, the three phases made up 708.5 hectares of freehold land within the 2071.6 hectares of Bandar Enstek township.

It is also the first technology park to receive the HALMAS status by Halal Industry Development Corp, currently houses significant numbers of multinational corporations and renowned brands since its commencement in 2002.

They include Ajinomoto Malaysia Bhd, Farm Fresh Bhd, Coca-Cola Bottlers (Malaysia) Sdn Bhd and Kellogg’s Malaysia.

Azman said within Negri Sembilan, Techpark@Enstek emerges as the key biotechnology and halal hub serving the rest of the state as well as Kuala Lumpur conurbation and Selangor.

He also said affordable land prices, reliable power infrastructure and proximity to the capital cities and the country’s main entry points such as the Kuala Lumpur International Airport and Port Klang, drew investors to the location.

As industrial lands connected to transport hubs are becoming scarcer, any spillover effect of growth in Malaysia Vision Valley 2.0 and the influx of foreign and domestic direct investment to the area are likely to benefit developers with industrial land bank holdings around transport nodes such as that of the industrial park.

“Techpark@Enstek also plays a pivotal role in the development of Bandar Enstek township by generating business and job opportunities as well as propelling the overall vibrancy of the township.

The industrial park has brought in more than RM4 billion in investment and created 1,500 job openings for the residents of Bandar Enstek and its surrounding areas.

This is expected to contribute well to the Negri Sembilan government’s target of achieving RM5 billion investment this year after it had registered the highest investment in its history last year with RM8.9 billion.

Source: NST

TH Properties launches Enstek techpark’s new phase with RM1.4bil GDV

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The Indo-Pacific Economic Framework’s (IPEF) 14 member countries have signed the supply chain agreement, marking the entry of the trade deal led by the United States (US) sealed in record time.

Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said it is now vital to send a strong signal on the tangible benefits of the IPEF.

“Not only to the partners but to the rest of the world on what we can collectively accomplish under this Framework,” he said after the signing ceremony here on Tuesday (Nov 14) on the sidelines of the Asia-Pacific Economic Cooperation (Apec) Economic Leaders’ Meeting.

The 14 countries are Australia, Brunei, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand, the US and Vietnam.

The IPEF consists of four main pillars: Pillar 1 – Trade, Pillar 2 – Supply Chain, Pillar 3 Clean Energy and Pillar 4 – Fair Economy.

IPEF negotiations will see four separate agreements for each of these pillars.

“Not only did we conclude and sign this first-of-its-kind agreement, but we also accomplished this in record time and will potentially have it enter into force in record time as well,” said Tengku Zafrul.

The minister said that in addition to this remarkable success, the Pillar 3 and Pillar 4 agreements have been substantially concluded as well as the Indo-Pacific Economic Framework for Prosperity agreement in an equally impressive time.

“While we certainly deserve to celebrate all these accomplishments, it is also time to step on the gas pedal and move to the next phase — the implementation of all that we have negotiated and agreed upon.

“Malaysia is cognisant of the due processes that are required before we can sign and ratify the Pillar 3 and Pillar 4 agreements,” he said

Tengku Zafrul said Malaysia could also begin undertaking the preparatory work for activating the implementation mechanism, such as the supply chain bodies and the committees established under the four pillars.

On that note, he registered Malaysia’s appreciation to Australia for its initiative to kickstart the capacity-building work with the “IPEF Supply Chain Crisis Tabletop Exercise”, conducted at the sidelines of the recent Kuala Lumpur round.

The minister said that these exercises are critical for assessing the readiness of partners in dealing with potential crises going forward.

Recognising the importance of climate-related infrastructure

Tengku Zafrul said Malaysia also welcomes the proposed annual IPEF Clean Economy Investor Forum, with the first meeting scheduled to take place in the first half of 2024.

He said Malaysia has always emphasised the importance of financing to catalyse the energy transition, the adoption of climate technologies and investment in climate-resilient infrastructure and initiatives.

Although Malaysia also welcomes the establishment of the IPEF Catalytic Capital Fund, it is important to recognise that climate-related infrastructures are not always bankable, but they are critical, especially for many developing partner countries, said Tengku Zafrul.

“The increasing climate-related disasters globally are clear indications of the existential threat faced by the more vulnerable developing partners.

“Therefore, Malaysia would like to propose that we explore appropriate funding mechanisms to implement climate infrastructure projects that could also include multilateral financial institutions,” he said.

The focus on innovative clean technologies, including carbon capture utilisation and storage (CCUS), will play an important role in reducing greenhouse gas (GHG) emissions in the IPEF region, said Tengku Zafrul.

He said although the CCUS has been identified as a potential technology for removing GHG in Pillar 3, there has been limited work done in cross-border storage.

“Therefore, Malaysia would like to encourage work in establishing an internationally recognised governance and accounting framework to enable this.

“I am optimistic that we will be able to carry out our work and maintain the same momentum and tenacity demonstrated in the past year when negotiating the Pillar 2 agreement,” he added.

Source: Bernama

Indo-Pacific trade deal’s tangible benefits need to be told, says Tengku Zafrul

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Only 13% of organisations in Malaysia are fully prepared to deploy and leverage artificial intelligence (AI)-powered technologies, according to Cisco’s inaugural AI Readiness Index released on Thursday. However, 33% of companies were categorised as chasers (those who are partially prepared), 53% of companies as followers, and only 1% of companies as laggards (not prepared).

The new research finds that while AI adoption has been slowly progressing for decades, the advancements in generative AI, coupled with public availability of this technology in the past year, are driving greater attention to the challenges, changes and new possibilities posed by the technology.

While 87% of respondents believe AI will have a significant impact on their business operations, it also raises new issues around data privacy and security. The Index findings show that companies experience the most challenges when it comes to leveraging AI alongside their data. In fact, 81% of respondents admit that this is due to data existing in silos across their organisations.

Nevertheless, companies in Malaysia are taking many proactive measures to prepare for an AI-centric future. When it comes to building AI strategies, 94% of organisations already have a robust AI strategy in place or are in the process of developing one.

This could be driven by the fact that almost all (99%) respondents said the urgency to deploy AI technologies in their organisation has increased in the past six months, with IT infrastructure and cybersecurity reported as the top priority areas for AI deployments.

“As companies rush to deploy AI solutions, they must assess where investments are needed to ensure their infrastructure can best support the demands of AI workloads,” said Liz Centoni, executive vice president and general manager of applications and chief strategy officer at Cisco.

“Organisations also need to be able to observe with context on how AI is being used to ensure return of investment, security, and especially responsibility.”

The index, which surveyed over 8,000 global companies, was developed in response to the accelerating adoption of AI, a generational shift that is impacting almost every area of business and daily life. The report highlights companies’ preparedness to utilise and deploy AI, showcasing critical gaps across key business pillars and infrastructures that pose serious risks for the near future.

Other key findings:

59% of respondents in Malaysia believe they have a maximum of one year to implement an AI.
strategy before their organisation begins to incur significant negative business impact.
95% of businesses globally are aware that AI will increase infrastructure workloads, but in Malaysia, only 27% of organisations consider their infrastructure highly scalable.
Majority of respondents (61%) indicate that they have limited or no scalability at all when it comes to meeting new AI challenges within their current IT infrastructures.
To accommodate AI’s increased power and computing demands, almost four-fifths (79%) of companies will require further data centre graphics processing units (GPUs) to support future AI workloads.
While data serves as the backbone needed for AI operations, it is also the area where readiness is the weakest, with the greatest number of laggards (10%) compared to other pillars. 81% of all respondents claim some degree of siloed or fragmented data in their organisation. This poses a critical challenge, as the complexity of integrating data that resides in various sources and making it available for AI applications, can impact the ability to leverage the full potential of these applications.
Boards and leadership teams are the most likely to embrace the changes brought about by AI, with 84% and 85% respectively showing high or moderate receptiveness. However, there is more work to be done to engage middle management, where 20% have either limited or no receptiveness to AI, and among employees where close to a fifth (27%) of organisations report employees are limited in their willingness to adopt AI or are outright resistant.
The need for AI skills reveals a new-age digital divide. While 95% of respondents said they have invested in upskilling existing employees, 31% alluded to an emerging AI divide, expressing doubt about the availability of enough talent to upskill.
67% of organisations report not having comprehensive AI policies in place, an area that must be addressed as companies consider and govern all the factors that present a risk in eroding confidence and trust. These factors include data privacy and data sovereignty, and the understanding of and compliance with global regulations. Additionally, close attention must be paid to the concepts of bias, fairness, and transparency in both data and algorithms.
21% of companies have not established change management plans yet, and of those that have, 76% are still in-progress.

Source: The Edge Malaysia

Malaysia’s AI preparedness level only at 13% — Cisco

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A total of 1,506 manufacturing projects with an investment value of RM88.88 billion have been approved in Selangor from 2018 to June 2023.

State Investment, Trade and Mobility Exco, Ng Sze Han said the amount comprised local investments totalling RM35.88 billion while RM53.0 billion were foreign investments.

“The approved manufacturing projects created 95,610 jobs,” he told the Selangor State Legislative Assembly (DUN) here today.

He said this in response to a question from Pua Pei Ling (PH-Bukit Lanjan) on the amount of foreign investments recorded in Selangor between 2018-2023.

Ng said the state government has been taking steps to boost foreign investments, including drafting policies such as the First Selangor Plan (RS-1), new regional development plans such as the Integrated Development Region in South Selangor (IDRISS) as well as large-scale annual programmes such as Selangor International Business Summit and the Selangor Aviation Show.

“Additionally, the state government is also actively carrying out investment promotion programmes with chambers of commerce in Malaysia and abroad.

“This includes investment missions, focusing on industries such as life sciences, food and beverage (F&B) manufacturing, electrical and electronic product manufacturing, the aerospace industry and drones as well as machinery and equipment,” he said.

As for the services sector, Ng said the state government has identified sectors that have the potential to grow in Selangor, including the logistics service industry and digital investment such as global business services, data centres and creative content technology.

“For the life science development sector, the ‘Selangor Lab Partnership’ programme was introduced to bridge the gap between educational institutions and industry to enable a more focused collaborative research and the products can be commercialised,” he said.

Source: Bernama

Selangor approves 1,506 manufacturing projects, generating investments worth more than RM88b

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Political stability and clarity in policies are vital for any economy to thrive, Prime Minister Datuk Seri Anwar Ibrahim said today.

Anwar said while clarity and consistency in policies are required, the effective implementation of policies also plays a vital role in wooing investors.

“Then, of course, the effective implementation. We all talk about the ease of doing business,” he told a question and answer session at the 30th Asia-Pacific Economic Cooperation (Apec) Chief Executive Officer (CEO) Summit titled “The Global Economy and State of The World” here today.

Anwar, who is also the finance minister, said this when asked what the most important tools political leaders from middle-sized economies can use to work with their business communities, and on the economic partnerships among their friends and partners in the Asia Pacific region.

“We all talk about a one-stop agency. The one-stop agency does not mean that it stops there. It means that you have to facilitate and accelerate the process with clear procedures and policies,” he added.

According to Anwar, Malaysia is very fortunate to have drawn investments from China, the United States (US), Europe, and also from the region that have exceeded expectations.

“I mean, (the investments) I am talking about are huge, and this signifies the confidence of the private sector in the way we set policies and we do business,” he said, adding that good governance under his administration has attracted the inflow of investments.

Anwar reiterated that a country must remain tough when it comes to policy implementation and tackling corruption, especially against the way of doing business that squanders public funds to enrich those in power.

He stressed that he has made clear his stand when it comes to corruption.

“And that I have made it very clear. I think we are on the right track to propel the economy of our country in the next few years. (We are) very ambitious, and I think based on the statement, well, in the next six, seven months, we can achieve that (economic growth target),” he said.

The prime minister also took the opportunity to woo investors to invest in Malaysia and Asean.

“Malaysia and Asean are the most stable and vibrant places to invest, and I look forward to meeting you individually in Malaysia,” he said.

Anwar arrived here on Monday (November 13) for the 30th Apec Economic Leaders’ Meeting (AELM) from November 14 to 17, marking his maiden visit for the official meeting as prime minister of Malaysia.

He is accompanied by his wife Datuk Seri Dr Wan Azizah Wan Ismail, Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz, Foreign Affairs Minister Datuk Seri Zambry Abd Kadir, and Communications and Digital Minister Fahmi Fadzil as well as other senior government officials.

Source: Bernama

PM Anwar: Political stability, clarity of policies vital for economies to thrive

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Prime Minister Datuk Seri Anwar Ibrahim has met technology giants such as Google, Enovix Cooperation, Microsoft and TikTok here.

“I have held meetings with large companies that have acknowledged that they will extend their investments in Malaysia on a large scale,” Anwar said.

“A stable political system and clear policies are among the important factors for them to invest in Malaysia.

“The approval process will also give them confidence. The speed of the presence of new investors will give Malaysia a new record,” he told reporters from Malaysia after the meetings.

San Francisco Bay Area is home to many of the biggest Fortune 500 companies, which are the most innovative firms in artificial intelligence (AI) development, biotech, software, clean technology, and social media.

Anwar, who is also the Finance Minister has also received a courtesy call from TPG’s founding partner, executive chairman and director Jim Coulter. TPG is a leading global alternative asset management firm.

The Prime Minister arrived here on Monday (Nov 13) for the 30th APEC Economic Leaders’ Meeting (AELM) from Nov 14 to 17, marking his maiden visit for the official meeting as Prime Minister of Malaysia.

Source: Bernama

PM Anwar meets tech giants in San Francisco

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Malaysia’s aerospace industry is on course to meet its revenue target of RM18 billion this year, with the industry expected to grow even faster next year as its product portfolio for the global aerospace supply chain expands.

National Aerospace Industry Corporation Malaysia Shamsul Kamar Abu Samah said revenue is estimated to be over RM16 billion as of the third quarter of the current year, but the exact amount will not be known until next year.

“We need to wait until the financial year ends to get the actual revenue figure but we see the number growing better, thanks to the new products portfolio through significant new work packages secured by the Malaysian supply chain.

“At the same time, the industry is expanding the maintenance, repair and overhaul (MRO) segment to include new aircraft types and different categories of parts and components,“ he said during a press conference in conjunction with Malaysia’s Aerospace Summit (MyAero2023) here today.

He further explained that industry players have secured multiple work packages related to parts and components for single-aisle aircraft as well as engine components, which are now widely promoted in the global aerospace supply chain.

“This segment falls under the manufacturing sector in the aerospace industry, which contributed 48 per cent of the industry’s revenue, whereas MRO contributed about 49 per cent, and the balance is the training business,“ he added.

Shamsur Kamar also said Malaysia has bagged a cumulative RM5.7 billion in new work packages secured by the local supply chain within the last two years and RM600 million worth of MRO projects which are currently being implemented by industry players.

Total January-September 2023 trade valuation soared to RM16.67 billion, an achievement accompanied by a notable 26.9 per cent rise in exports to RM4.18 billion versus RM3.29 billion in the same period in 2022, showcasing the industry’s resilience and growth potential.

MyAero2023 united industry leaders and experts to create a vibrant and sustainable future for the sector, aligning with the goals set out in the New Industrial Master Plan 2030 and the Malaysian Aerospace Industry Blueprint 2030.

Meanwhile, on small and medium enterprises (SMEs) participation in the industry, UMW Aerospace Sdn Bhd head of business development and programme management Mohamad Azili Samad said local SMEs are dealing with the challenges of meeting global companies’ requirements and standards.

“SMEs are dealing with global standards and they need to ramp up production to meet global demand. That is one of the main issues facing our small players,“ he said.

Source: Bernama

Aerospace industry on track to meet RM18b revenue target

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Malaysia’s approach in pursuing robust relations with both China and the United States without being pushed to choose one side over the other is beneficial in securing our national interests, experts say.

Universiti Malaya Institute of China Studies deputy director Dr Peter Ngeow Chow Bing said that both China and the United States are important partners to Malaysia.

“Each of them offers different benefits and advantages in their respective cooperation with Malaysia.

“As such, maintaining robust ties with both powers makes sense from the perspective of securing our national interests.”

He said there is still room to maintain a non-aligned posture between China and the United States despite the current global situation.

“However, depending on certain issues, Malaysia will be more aligned with one power or the other,” he said.

Earlier today, Prime Minister Datuk Seri Anwar Ibrahim in his talk titled Superpower Rivalry and Rising Tensions in the Asia Pacific: The View from Southeast Asia at the University of California, Berkeley said that engaging both major powers provides Malaysia with more strategic space to advance its national interests, and Putrajaya would continue to approach its relations with the superpowers pragmatically and judiciously.

Anwar also said US investments had helped to propel Malaysia’s economy as a trading nation and Putrajaya remained committed to its friendship with the superpower.

However, at the same time, he said China was also a neighbour which had matured in terms of its economic vibrancy where Malaysia would benefit immensely by engaging them as they had remained a very reliable friend and ally.

Geostrategist Dr Azmi Hassan said that positioning Malaysia strategically between the global superpowers of US and China, through the pursuit of robust relations, is a move that can yield benefits for the nation from both countries.

“China is our largest trading partner and the US is our second largest trading partner.

“What we are doing right now is that we are being friendly to both of these superpowers, where we can benefit economically.

“There is nothing new regarding our foreign policy (in this matter), especially in the relation of the US and China,” he said.

Echoing the same perspective is Universiti Teknologi Mara (UiTM) Centre for Media and Information Warfare Studies security and political analyst Dr Nirwandy Mat Noordin.

He said the multilateral stance helps Malaysia to manoeuvre along the global uncertainties and maintain the prosperity in the perspective of economic cooperations, social and security values.

“The decision has enabled us to gain recognition, as we refrain from aligning excessively with any superpower nations, including China and the US.

“Our aim is to cultivate positive bilateral objectives that sustain economic cooperation and enhance overall relations between both countries,” he said.

Source: NST

Maintaining robust ties with US, China makes sense – Experts

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Infineon Kulim is extending its strategic collaboration with renowned Germany and Malaysian universities to further enhance efforts in nurturing industry-ready talents for the global semiconductor industry.

Its senior vice president and managing director Ng Kok Tiong said the move would pave the way for all parties involved to explore new possibilities for further cooperation following decade-long collaborations which had reaped benefits for both Malaysia and Germany.

“Over the years, the collaborative parties have ventured into various activities that have helped facilitate student exchanges, industry-academia dialogue, virtual seminars, research matching, international collaboration forums, and various student activities.

“All of these have brought mutual benefits not only to the semiconductor industry and talent pipeline as a whole, but also provided solid insights from the industry that enabled and enhanced a more holistic student learning experience.

“This certainly has played a role in producing industry-ready talents that brought mutual benefit to both country Malaysia and Germany,” Ng said in his speech at the memorandum of understanding (MoU) signing ceremony to extend cooperation with

OTH Regensburg University of Germany and two Malaysian universities yesterday.

The event was opened by the Ministry of Education’s Educational Technology and Resources Division director Zainal Abas, who represented Education Minister Fadhlina Sidek.

Present were deputy head of mission, German Embassy in Kuala Lumpur, Ulrike Wolf, Universiti Tunku Abdul Rahman (UTAR) president Prof Ewe Hong Tat and Universiti Sains Malaysia (USM) Industry and Community Networking Division director Dr Shaizatulaqma Kamalul Ariffin.

Ng represented Infineon Kulim at the ceremony, where he signed an MoU with OTH Regensburg, one of the most research-oriented universities of applied sciences in Germany, in order to continue the 10-year-old collaboration.

OTH Regensburg was represented by its vice president for Research and International Affairs, Prof Dr Oliver Steffens.

During the event, Infineon Kulim also inked an MoU to extend its collaboration with UTRA while OTH Regensburg and USM Engineering Campus signed an MoU to extend their academic cooperation.

Ng added that the event also marked the celebration of the 10 years anniversary of Infineon Kulim cooperation with its partners.

“The OT Regensburg, universities in Malaysia, together with other German companies based in Malaysia have been cooperating very successfully for more than 10 years in the semiconductor industry.

“Together with our cooperation partners, we would like to celebrate this anniversary in Malaysia and explore new possibilities for further cooperation,” he said.

Germany-based Infineon Technologies AG is a global semiconductor leader in power systems and loT, offering game-changing solutions for green and efficient energy, clean and safe mobility, as well as smart and secure loT.

Kulim Infineon plant located in Kulim High Tech Park (KHTP) is the largest 200mm Front-End manufacturing site for Infineon, focusing on Automotive, Green Industrial Power & Power, and Sensor Systems.

Infineon Kulim is undergoing expansion with the construction of its Kulim wafer fab Kulim 3.

In August, Infineon Technologies AG announced that it was investing 5.0 billion euros (about RM24.9 billion) over the next five years to build the world’s largest 200mm silicon carbide (SiC) power fabrication (power fab) plant in Malaysia.

The company was reported as saying that the investment on its Kulim facility would lead to an annual SiC revenue potential of about 7 billion euros by the end of the decade.

Source: NST

Infineon Kulim inks MoU with Germany, Malaysian universities to foster collaboration

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The Science, Technology and Innovation Ministry (Mosti) has identified five primary perspectives for developing an ecosystem of advanced materials technology, which includes rare earth elements (REEs), the Dewan Rakyat was told today.

Its Deputy Minister Datuk Arthur Joseph Kurup said the perspectives include funding and financing as well as infrastructure development.

For that purpose, he said MOSTI has implemented a number of initiatives for technology development, skill enhancement, and policy formulation.

“The establishment of the National Advanced Materials Consortium (NAMC), which will serve as a communication hub for business development, will foster networking opportunities and engagements among stakeholders,” he said during the question-and-answer session.

He was responding to a question from Kuala Terengganu MP Datuk Ahmad Amzad Hashim (PN-) about how the National Advanced Materials Technology Roadmap may assist the government in its plan to capitalise on REEs in the country.

In addition, Arthur said the Malaysian Nuclear Agency is responsible for providing technology and infrastructure for the development of REEs in the upstream and midstream ecosystems.

He said that apart from graphene, nitinol, and microcrystalline cellulose polymers, REEs have been identified as one of the advanced materials that would bring market potential to industry players, with the worldwide REE market size reaching USD5.6 billion in 2021.

Arthur added that the growing demand for electric vehicles has led to increased demand for REEs.

Source: Bernama

Five perspectives for developing advanced materials technology ecosystem identified

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Industrial Development and Entrepreneurship Minister Phoong Jin Zhe concluded his first official visit to Japan with a four-day intensive schedule of business meetings and inspections.

Several Japanese companies have expressed interest in investing in Sabah’s green industries, a key sector that Phoong has actively promoted.

This demonstrates Sabah’s potential and opportunities in the field of green industries.

During the visit, Phoong led a multi-agency delegation, including Datuk Thomas Logijin, Permanent Secretary of the Ministry of Industrial Development and Entrepreneurship; Datuk Jasmine Teo, Director of Sabah Economic Planning Unit (UPEN); Datuk Fredian Gan, CEO of Palm Oil Industrial Cluster (POIC) Sabah Sdn Bhd; Datuk Harun Ismail, CEO of Sipitang Oil & Gas Development Corporation (SOGDC); Haizar Razif Hisyam, Group General Manager of Sabah Economic Development Corporation (SEDCO); Tseu Kei Yue, Director of Department of Industrial Development and Research (DIDR); Cecilia, Deputy CEO of Kota Kinabalu Industrial Park (KKIP) Sdn Bhd and Chan Loong Wei, Political Secretary to the minister.

Phoong revealed that in addition to business discussions with potential investors, a significant focus was participating in the 2023 Malaysia Fair in Tokyo organized by the Malaysian Embassy in Japan.

Seven Sabah-based companies, led by the Department of Industrial Development and Research (DIDR) under his ministry, showcased their products, successfully increasing the visibility of Sabah’s local products to the international market.

Upon arriving in Tokyo, Phoong initiated a series of tightly scheduled meetings, starting with visits to two major Japanese trade organizations: the Japan External Trade Organization (JETRO) and the Japan-Malaysia Economic Association (JAMECA).

Both meetings involved bilateral discussions and trade collaborations.

Invest Sabah Berhad (ISB) also presented trade opportunities and investment potential in Sabah to Japanese officials during these meetings.

Phoong actively sought coordination with Japanese government trade organizations to encourage more Japanese companies to invest in Sabah, fostering trade relations and friendship. He extended invitations to Japanese companies to explore investment opportunities in Sabah.

According to the officials, Japanese companies have shown significant interest in Sabah, particularly in renewable energy, food processing, biomass industries, sustainable timber, and emerging green sectors.

The discussions received support and coordination from Izran Abdullah, Director of Malaysia Investment Development Authority (MIDA) Tokyo.

In a cordial atmosphere, Phoong received verbal commitments for future collaboration, indicating that the Sabah government plans to organize a business forum in Japan with the assistance of the Malaysian and Japanese investment promotion agencies, opening more channels for Japanese companies to invest in Sabah.

The minister was welcomed by representatives of Sumitomo Corporation, a Fortune Global 500 company.

Two subsidiaries of Sumitomo Corporation engaged with the Sabah government delegation, leading to two productive two-hour business meetings.

The first meeting focused on discussions with the head of raw materials and steel industries, Hisahide Kikkawa. They expressed interest in investing in Sabah and proposed establishing a Green Steel manufacturing factory using carbon emission reduction technologies aligned with global trends.

This aligns with Phoong’s push for the development of green industries.

The representative revealed their interest in the Sipitang Oil & Gas Industrial Park (SOGIP), and if successful, this project could bring over a billion ringgit in investment to Sabah.

The second meeting involved discussions with the head of the timber industry, Shuji Hayashida, exploring the potential of emerging markets. They aim to utilize advanced technology for biomass and reforestation to develop a high-tech green industry in Sabah.

Given Sabah’s favorable conditions for biomass industries, Phoong emphasized the importance of close coordination to facilitate Sumitomo’s investment in Sabah.

Source: Borneo Post

Japan keen to develop green industry in Sabah

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By Liew Chin Tong

The polycrisis of the pandemic, geopolitical tensions and wars, financial instability and climate change makes it difficult for the steel industry to chart its future. At the recent Malaysian Iron and Steel Industry Federation (MISIF) forum on “Navigating global market dynamics for a sustainable future in the iron and steel industry”, in my capacity as the deputy minister of investment, trade and industry, I shared the government’s view on the importance of the steel industry.

For Malaysia’s steel industry to have a sustainable future, three challenges have to be dealt with collectively by the industry and government, namely, overcapacity in construction steel, green transition and financing transformation.

Overcapacity in construction steel

The overcapacity in construction steel in Southeast Asia requires all stakeholders to work together. As at 2021, the capacity of steel production in Asean stood at 75.3 million tonnes, with Malaysia being the third largest producer with a capacity of 16.1 million tonnes, behind Vietnam and Indonesia.

Based on a South East Asia Iron and Steel Institute (SEAISI) analysis, the steel production capacity in Asean is expected to balloon to 147.2 million tonnes by 2026 as a result of the influx of foreign steel investments into the region, especially those from China.

This can be an issue of concern as we see a slowdown in the construction sector and the subsequent reduction in demand for steel from China. The capacity of China-owned steel firms in Southeast Asia is intended for export to China.

The Chinese economy is increasingly looking like it is operating at two speeds: the construction sector is unlikely to be robust in the foreseeable future but technology, electric vehicles and renewable energy are all doing very well.

Through determined and aggressive supply-side reform, China took out at least 150 million tonnes of steel-making capacity between 2016 and 2020, which is a commendable feat. The Malaysian government will engage China and our Asean neighbours in a collaborative manner to ensure a win-win situation for all, as an attempt to address the issue of construction steel overcapacity in the region.

The government is committed to transforming the manufacturing industry to reach greater heights, capitalising on emerging global trends. Therefore, the New Industrial Master Plan (NIMP) 2030 is formulated with a mission-based approach in our pursuit of industrial development. Although all four missions are cross-cutting for various sectors, two of them are especially relevant to the steel industry.

It needs to move up the value chain by producing steel products not locally available to reduce dependency on imported steel and to ensure availability of raw material for the local steel consuming industry. The NIMP 2030, which was launched by the prime minister on Sept 1, has made “advancing economic complexity” its first mission.

While long products still dominate steel production in the country, the Ministry of Investment, Trade and Industry (Miti) and its agencies have always promoted and encouraged the development of flat steel to fill the gap in the supply chain. Further, developing steel products would in turn support the growth and development of our local construction, automotive, electric and electronic, machinery and equipment industries.

Green transition

Malaysia and the world are increasingly vulnerable to climate change and the steel industry, by the nature of the business, contributes very significantly to the nation’s carbon emissions.

Under the industrial processes and product uses (IPPU) sector, iron and steel industry emissions have been the fastest growing since 2014, and currently contribute 26% of the total IPPU emissions and 4% of the overall emissions. In other words, more than a quarter of the emissions from manufacturing are contributed by the steel industry. Thus, it has an outsized responsibility to craft a green transition plan.

Miti and one of its agencies, the Malaysia Steel Institute (MSI), are working with MISIF and the Malaysian Steel Association (MSA) to formulate the “Green Transition Roadmap for the Iron and Steel industry”, which will be aligned to the NIMP 2030.

The greening of the iron and steel industry should not be seen as a burden but an opportunity — a chance to innovate, adapt and secure a future where steel production aligns seamlessly with environmental stewardship. This is a win-win pursuit.

Transitioning to a sustainable, low-carbon economy will not only be good for the environment; it will also create jobs, spur innovation and enhance the industry’s global competitiveness.

The third mission in the NIMP 2030 — Push for Net Zero — aims to decarbonise the country’s industries while capitalising on new green growth areas such as renewable energy, electric vehicles, the circular economy as well as technology and services in carbon capture, utilisation and storage (CCUS). To achieve a net-zero carbon future for our industries, the nation must adopt comprehensive and bold policies.

The NIMP 2030 will prepare the industry by developing a decarbonisation pathway that utilises various measures such as implementation of energy efficiency and waste management initiatives, electrification of processes, and adoption of renewable energy and technology, supported by a robust regulatory framework.

Environmental, social and governance (ESG) initiatives have become a part of regulatory requirements and procedures for production, trade and investment, especially those who want to enter the European Union market.

Due to the regulatory changes in many countries, investors are also progressively taking ESG considerations into account in their selection of locations to invest. Malaysia’s leadership in driving ESG in the manufacturing sector is therefore timely as businesses need to be equipped with the ability to comply with the trade and investment policies that emphasise compliance with sustainability and ESG principles by our trading partners.

ESG is more than just sustainability or reducing carbon emissions. It is also about the “social” component, which involves better treatment of employees. Are our workers being paid well? Are they working in an appropriate environment? Is their productivity boosted by adoption of technology and automation? These are questions to be addressed when we discuss ESG principles.

Financing the transformation of the industry

However, all of the initiatives and measures under NIMP 2030 would be almost unattainable without one key enabler — the financing ecosystem. It goes without saying that transforming our economy and industries requires substantial financial investments to fund new technologies and innovation, and to adopt new business practices.

The NIMP 2030 has identified the mobilisation of the financing ecosystem as one of its four key enablers to achieve its industrial transition goals.

At present, through Bank Negara Malaysia, the Low Carbon Transition Facility (LCTF) has been established to support small and medium enterprises in adopting sustainable and low carbon practices. SMEs in all sectors that are committed to transform their business operations towards low carbon operations and have such a plan should apply for the LCTF. The plan should include improving energy efficiency, increasing the use of sustainable material for production, and obtaining sustainability certification.

It is also encouraging to know that based on Bank Negara’s 2022 report, 50 out of 66 financial groups are already offering green products and solutions, with more than RM110 billion financing allocated for ESG until 2025.

This shows that the financial market is proactively offering incentives to businesses implementing environmentally friendly supply chain management, promoting the integration of sustainability throughout the industrial ecosystem.

NIMP 2030 also looks to increase the utilisation of the capital market to cater for the different financing needs of companies across their growth cycles. Once the industry has the ability to access a wider range of capital and funding sources, it can strengthen its business practices, aligned to the goals and missions of NIMP 2030.

Industry players should also be ready to embrace the needed change, and be given adequate support. As the banks and major corporations move to focus on Scope 3 emissions, the financing of the industry will become an even larger challenge unless the industry players take proactive steps to reduce carbon emissions in all parts of the supply chain.

For the steel industry to act more proactively and effectively, it is also time for MISIF and MSA to consider consolidation or a merger.

It is also important to note that Minister of Investment, Trade and Industry Tengku Zafrul Tengku Aziz has decided to establish an independent committee chaired by HSBC Malaysia CEO Datuk Omar Siddiq to look at realigning the direction of the iron and steel industry with the current policy objectives of ensuring that the industry remains relevant and sustainable.

It is hoped that this committee can support the development of short-, medium- and long-term initiatives for the entire value chain of the iron and steel industry, so that it can secure a strong position in Malaysia and regionally.

Liew Chin Tong is deputy minister of investment, trade and industry

Source: The Edge Malaysia

The future of Malaysia’s steel industry

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Sarawak aims to become a hub for the semiconductor industry within South-East Asia by developing skilled local talent, says state Education, Innovation and Talent Development Minister Datuk Seri Roland Sagah.

Towards this end, state-owned company SMD Semiconductor Sdn Bhd has launched its train-the-trainer programme in analog chip design to produce integrated circuit (IC) designers and semiconductor professionals.

“Our target is to produce 500 chip designers. We hope to train more locals in IC design through this programme,” Sagah told reporters after launching the programme here on Tuesday (Nov 14).

He said the programme would involve professionals, academic researchers and lecturers with relevant experience in the electronics and microelectronics sector.

Training modules covering analogue IC design, analogue IC layout and IC testing were developed in collaboration with SMD’s industry partners Melexis, from Belgium, and Silicon Valley company Synopsys.

The four-week training programme would start in January at SMD’s premises, with subsequent training sessions to be led by the Centre for Technology Excellence Sarawak (Centexs) and Sarawak Skills Development Centre.

Sagah called on the relevant lecturers from higher learning institutions in the state to participate in the programme and be trained to mentor graduates to become IC designers and test engineers.

“The training programme will help shape the next generation of professionals in analog IC design at their institutions and enable them to excel in this specialised field of semiconductors,” he said.

Sagah also said Sarawak’s goal was to become a top choice for semiconductor investments and a leading global technology solutions provider.

“The training programme represents our strong dedication to a future where Sarawak stands out in technology and innovation,” he said.

Source: The Star

Sarawak eyes becoming SEA semiconductor hub

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