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Many had high expectations of Nvidia Corp chief executive officer Jensen Huang’s maiden visit to Malaysia last week.

Talk was rife on possible investments in data centres in Malaysia after Huang’s visit to Singapore where the media reported that Nvidia could invest in an “iconic” artificial intelligence (AI) site in the city state.

Huang had met Singapore Prime Minister Lee Hsien Loong and executives of the Economic Development Board where he hinted that a new supercomputer could be built there.

This further strengthened the views on potential data centre investments in Malaysia.

Minutes before Huang’s media roundtable, news broke that Nvidia was in advanced talks with YTL Power International Bhd to build AI infrastructure in Malaysia.

Clad in an all-black outfit and his staple leather jacket, the tech executive sidestepped queries on Nvidia and YTL.

Instead, Huang stressed Malaysia’ s potential as a hub for AI “manufacturing”.

“YTL is an extraordinary company and has incredible leadership and legacy. This is a very important hub for Southeast Asia’s computing infrastructure.

“It requires access to facilities and power which is extraordinarily important, and YTL could play a great role in that,” he said.

Huang said an AI data centre was a new type of centre, unlike the old ones which were designed mainly to hold data and run applications.

“The AI data centres are factories which take raw data and transform it into really valuable data.

“That transformation is basically like manufacturing and Malaysia is excellent in manufacturing.

“It is a regional excellence in manufacturing and now, combined with data centre technology and Nvidia’s AI capability, it could become a hub for manufacturing.”

The Taiwanese-American who pioneered graphic processing units-accelerated computing used in generative AI told the media that he would not miss the opportunity to meet the only leader in the world who had AI in his name, referring to Anwar’s initials.

“I am an AI guy so I cannot miss this opportunity. We are going to talk about how Malaysia can play a vital role in the advancement of AI in the region.”

On Friday evening, YTL announced its collaboration with Nvidia to build the AI infrastructure that will bring the fastest supercomputers to Malaysia by the middle of next year.

The AI infrastructure will be hosted in the YTL Green Data Center Park in Kulai, Johor, a 500MW facility developed by YTL that will be uniquely powered by an equivalent amount of on-site solar energy.

YTL Communications Sdn Bhd, the telecommunication subsidiary of YTL, will own and manage the AI infrastructure that will provide AI computing services to the nation.

The AI infrastructure will provide the foundation for scientific research and the development of solutions and applications that will accelerate Malaysia’s progress towards becoming an AI nation.

YTL will not only provide green, energy-efficient AI infrastructure to scientists, developers and startups across the nation, but it will also create AI-specific applications and services for its customers.

YTL plans to use NVIDIA NeMo to customise and deploy a Malay language foundation model.

Source: NST

Nvidia CEO: Malaysia can be hub for AI ‘manufacturing’

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The Penang government targets to reclaim about 400 acres (161.87 hectares) of land each year for the Silicon Island project and intends to start the construction of the first factory on that island as early as 2026.

Chief Minister Chow Kon Yeow said a five-acre (2.02-hectare) area had been reclaimed since work began in early October by using two boats, with each having the capacity to transport 7,000 cubic metres of sand.

“Next year, dredging works will be stepped up by adding two more boats with a large capacity of 20,000 cubic metres each.

“This is to speed up the progress of the project,” he told reporters after visiting the Penang South Island (PSI) here today.

With that, he said, the government expects the land component to be ready in the next eight to 10 years, and then infrastructure construction can begin.

He said the most important infrastructure construction was the temporary bridge that will connect the south of the Penang International Airport to the island to facilitate access to the construction site there, which is currently only possible by boat.

Chow is also confident that the Silicon Island project would be able to repeat the success of the Bayan Lepas Free Industrial Zone (FIZ), which brought reform to Penang’s economy more than 50 years ago.

“Today, we can still feel and rely on the contributions of the Bayan Lepas FIZ, which supplies electrical and electronic (E&E) products to the world market.

“As such, it cannot be denied that we need Silicon Island to further expand the industrial land in Bayan Lepas to guarantee the growth and increase the competitiveness of our state’s leading E&E manufacturing sector,” he said.

Silicon Island will see the construction of the high-technology industrial park Green Tech Park (GTP); global business services and software hub (or GBS Campus); commercial development; housing as well as green recreational areas which are expected to generate a Gross Domestic Product of RM1.1 trillion, investment of RM74.7 billion and 220,000 employment opportunities.

Reclamation work on the 2,300-acre Silicon Island in the south of Penang is expected to be completed by 2032 while the overall development will take about 25 years.

Earlier today, Chow, Deputy Chief Minister 1 Datuk Dr Mohamad Abdul Hamid and state executive councillors accompanied the Penang Governor, Tun Ahmad Fuzi Abdul Razak, to visit the reclamation site.

Source: Bernama

Penang aims to reclaim 400 acres of land for Silicon Island project each year

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Saitama Prefecture, which is ranked fifth in terms of population and economic productivity among the prefectures of Japan, is exploring further investment opportunities in Malaysia in the halal food and automated machinery industries.

Governor Motohiro Ono said there are currently 20 companies from Saitama with established investments in the food manufacturing, automation and electronics sectors in Malaysia.

“There are many companies from Saitama that want to enter the Malaysian market by introducing commodities and exploring opportunities to invest,” he told Bernama during the “Sedap! SAITAMA: Exhibition featuring food and sake from Saitama” event held in Kuala Lumpur recently.

Ono was on a three-day economic mission to Malaysia from Nov 7, 2023, to enhance bilateral economic relations.

According to the governor, this was the first time that Saitama Prefecture dispatched an economic mission to Malaysia.

During this trip, Ono has also met officers from the Malaysian Investment Development Authority (MIDA) to discuss the possibility of extending bilateral relationship.

“Attracting investments and people from all over the world, Malaysia has the fastest growing economy amongst the ASEAN member states and is projected to expand even further in the future,” he said.

He emphasised that Saitama, located just north of Japan’s capital Tokyo, has much to offer to Malaysia with its current gross domestic product of US$161 billion (US$1=RM4.68) and thriving food industry.

“Saitama has always had many food manufacturers and our food industry is ranked second in the country in terms of shipment of manufactured goods,” Ono said.

In addition, he said, Saitama is also rich in agriculture with its many rivers and fertile land and is one of the leading producers of wheat, vegetables and sake in Japan.

According to the Japan External Trade Organisation’s (Jetro) website, Saitama Prefecture has 27,000 manufacturing establishments and ranks sixth in Japan in terms of value of shipments of manufactured goods.

There are also companies with advanced technological capabilities for castings, moulds and equipment.

In the aerospace and automotive sectors, Saitama ranks seventh in Japan in terms of shipments and value-added transportation equipment manufacturing.

Saitama takes sixth spot in Japan for the medical, health and beauty industries in terms of value of production of pharmaceuticals and medical devices.

Ono emphasised that Saitama is the country’s leading prefecture when it comes to the shipment value of noodle products such as udon.

“It is also home to many local specialities such as Sayama tea, one of Japan’s finest tea and strawberries that were awarded the top prize in a national contest this year,” he added.

Ono beckoned Malaysians to visit and discover all that Saitama has to offer besides food.

‘’We have popular tourist attractions such as the Moomin theme park from Finland, the first of its kind overseas; the Tokorozawa Sakura Town, which is Japan’s largest pop culture entertainment complex; and the Bonsai Art Museum, with trees that are hundreds of years old,” he remarked.

Meanwhile, Japan’s ambassador to Malaysia, Katsuhiko Takahashi, said the popularity of Japanese cuisine has surged globally and in the context of Malaysia, exports of Japan’s agricultural, forestry, fisheries and food products to Malaysia have tripled over the past five years.

“In addition, the number of Japanese restaurants in Malaysia has shown a significant increase, with approximately 1,900 establishments in the country,” he said in his opening remarks at the exhibition.

While the Malaysian Chinese have been the main consumers of Japanese food so far, Takahashi said, it has recently begun to spread to Malays as well.

Momotaro Foods Sdn Bhd, which is owned by a leading Japanese traditional noodle producer based in Saitama, aims to obtain halal certification for its noodle factory in Seri Kembangan, Selangor, in the next five years.

“We have been supplying to supermarkets and Japanese restaurants in Malaysia. The materials for making noodles at the factory in Malaysia are different from the production facility in Saitama, but the production process is the same for both locations,” managing director Ikuo Koyama told Bernama.

Momotaro Shokuhin Co, Ltd, the holding company in Saitama, has established the Malaysia-based Momotaro Foods and opened a Japanese noodle restaurant in Wangsa Maju, Kuala Lumpur, in 1992.

Source: Bernama

Saitama Prefecture keen to invest in halal food, machinery industries in Malaysia

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Sarawak Premier Tan Sri Abang Johari Tun Openg urged international investors who would like to invest in the state to ensure their efforts take into account green energy over the long term.

He said the green energy sector needs to withstand future challenges in order to face developments at the global level since it is important to the growth of the world economy.

“We (the Sarawak government) will prioritise investments that focus on clean green technology that will create economic prosperity, social inclusion and environmental sustainability,” he said in a statement from the Sarawak Public Communications Unit (UKAS) which quoted his keynote address during the opening of the MINTRED Connects@London 2023 programme in London on Friday.

MINTRED Connects@London 2023 is a promotional programme organised by the Sarawak Ministry of International Trade, Industry and Investment to attract international investors to explore business opportunities in the state.

Abang Johari said the Sarawak government’s policy is clear to promote green energy through the Post-Covid-19 Development Strategy (PCDS) 2030 to become a preferred destination for foreign investment.

He said foreign investors are invited to add value to green energy by starting research and development towards the transition to clean energy.

“At the same time, we are exploring the added value of clean energy sources in the field of hydrogen production as well as sustainable aviation fuel (SAF) using microalgae,” he said.

During the event, Abang Johari witnessed the signing of four memorandums of understanding on investment, tourism, art and product distribution which will be a catalyst for better cooperation between Sarawak and the United Kingdom (UK).

Malaysia’s High Commissioner to the UK Datuk Zakri Jaafar and Sarawak Deputy Premier Datuk Amar Awang Tengah Ali Hasan, who is also Sarawak’s Minister of International Trade, Industry and Investment, were also present at the event.

Source: Bernama

Abang Johari calls for future challenge-proof investment in green energy in Sarawak

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A year ago, I was given the honour to serve as Minister of Investment, Trade and Industry (Miti) in the unity government led by Datuk Seri Anwar Ibrahim. I believe we hit the ground running, and one year hence, it is good to reflect on how far we have come, and what we can do better in 2024.

What really matters is disciplined execution

One of the first few things we did was to tweak our decades-old name to signal the importance of “Investments” in our national economic agenda. This telegraphs the seriousness of the Government in making investments one of the key components of our next economic take-off, as it is continued investments that generate employment and business opportunities for the domestic economy.

A few days ago, we proudly announced the RM225-billion approved investments that Malaysia managed to secure from January-September 2023. This already exceeded our full-year target of roughly RM220 billion. Miti and its agency, MIDA worked hard on securing those numbers, but we also recognise that we need to work doubly hard to realise those investments. The 89,495 expected job opportunities for Malaysians will be our beacon in realising that RM225-billion figure.

Further, we are determined to ensure a high realisation rate for the RM225-billion approved investments. This year alone, many investment approvals, at both federal and state levels, were expedited through the Investment & Trade Action Coordination Committee, and the Investment Coordination Committee Meeting, both of which I personally chair. We also fast-tracked the physical set-up of the Invest Malaysia Facilitation Centre (IMFC) at MIDA — where investors can settle many administrative matters directly with authorities such as Customs, Immigration, Inland Revenue, Department of Labour and others.

Meanwhile, for the 10 months to October 2023, trade reached RM2.18 trillion. Mirroring the slowdown in global trade, both exports and imports were roughly 8 per cent lower year-on-year, but partially tempered by growing exports to countries such as Brazil (up 13.5 per cent), Nigeria (up 7.3 per cent) and Tanzania (up 10 per cent), to name just a few. Kudos to our external trade arm, Matrade and its diversification strategy.

We are optimistic that exports will improve in 2024, supported by the rise in the global technology cycle, especially demand in the E&E sector. We have been proactively leveraging on the reshoring of global supply chains, and courting investments in higher-value front-end semiconductor output, like IC design and wafer fabrication. In a few years’ time, we hope to see the likes of Infineon, Nvidia, SkyeChip and Oppstar help our industry move up the semiconductor value chain to further entrench Malaysia firmly in the global market, of which we currently enjoy a 7-per cent market share.

Miti has also been proactive in pushing the halal industry to boost exports. Currently the world’s premier exhibition for halal goods and services, the Malaysia Halal Showcase (MIHAS) 2023 successfully registered RM3.11 billion of sales, 24 per cent above target. This is an exciting space to be in and we are determined to leverage on our globally recognised halal ecosystem to capture a bigger slice of this USD5-trillion global market.

Political stability, policy clarity place Malaysia back on investors’ radar

In the many meetings that I have had with existing and potential investors in this past year, the one consistent feedback that I have received is how they value the political stability of the unity government.

They also cited policy clarity in the nation’s economic direction via the administration’s key frameworks such as the New Industrial Masterplan (NIMP) 2030, and National Energy Transition Roadmap.

Our international engagements have also mattered. At various international economic and media platforms, we have continuously stressed the unity government’s drive towards socio-economic reforms, and how high-impact and high-quality investments will be facilitated to raise both ‘the ceiling’ and ‘the floor’ of the economy outlined by the Madani Economic Framework.

Cumulatively, all these initiatives have enabled us to sustain the momentum for both foreign and domestic direct investments in 2023, despite the global economic slowdown. I can confidently say Malaysia is firmly back on the investment radar.

Priorities for 2024 to sustain momentum & build resilience

But how do we sustain this momentum? Here are three things I would like Miti to focus on for 2024 and beyond, in confronting current economic realities, as well as addressing long-term structural issues like moving up the value chain, deepening our economic complexity and ensuring that benefits of broad-based industrial growth are more equitably shared.

First, we must get a grip on the impact of artificial intelligence (AI) and other technological developments on manufacturing, and its consequent demand on skilled talent. While NIMP2030 has kick-started projects on Integrated Circuit (IC) design, wafer fabrication, smart factories and advanced materials, there is a corresponding need to ramp up student enrolment in STEM subjects to fill up many highly-skilled positions in future. Therefore, skilled human capital and productivity — two key issues raised by many investors — will certainly be prioritised by Miti through stronger industry-academia collaboration.

In fact, the number of high-skilled jobs and high-tech training of Malaysians are two of the key requirements for investors wishing to establish or expand their facilities in Malaysia.

Second, sustainability has become an urgent global imperative, and ESG considerations are key to building our economic resilience. On this, Miti is revving up the embracing of ESG via various aspects of our ecosystem to achieve not just balanced growth, but also our net-zero GHG emission target by 2050. Our efforts range from courting investments in green technology, green manufacturing and renewable energy, to ramping up EV manufacturing and adoption; from developing ‘green’ industrial parks to handholding our SMEs to embrace ESG via the National Industry ESG Framework (i-ESG).

Specifically on electric mobility, sceptics said we were promoting EVs for the rich. This uninformed opinion was turned on its head with the launch of the MARiiCas scheme on 8 December 2023 to encourage the use of EV motorcycles, via rebates up to RM2,400 for citizens earning less than RM120,000 a year.

Third, disciplined execution and transparency are crucial. The year 2024 is a pivotal year as we begin to realise early phases or expansions of various investments by global brands that we successfully attracted this year, including the likes of Amazon Web Services, Enovix, Google, MASDAR, Microsoft, Yondr, SEA Limited, Tesla, TikTok and many others. We are also determined to see through the initiatives of our policies such as NIMP2030, National Automotive Policy, Malaysian Aerospace Industry Blueprint and i-ESG.

While attracting the right investments is important, being transparent on progress and milestones is equally key. We had our first Miti Report Card Day on 6 December 2023, and we intend to have this quarterly in 2024 and beyond, so we can share updates of key projects.

Heavy lifting time

The year 2023 has been beset by various global challenges — from supply chain disruptions to persistent inflation and wars. We can expect 2024 to be more challenging, with countries making up over 50 per cent of global GDP undergoing decisive elections. For sure, the results will have an impact on an already near — fragile geopolitical and economic landscape globally.

I strongly believe our trio of priorities will ensure Malaysia’s investment, trade and industry-scape remain resiliently competitive, regardless of what is happening in the world. My door is always open to those who wish to share their views on what more we should do to build a more prosperous, sustainable and equitable Malaysia for all our rakyat. MITI is taking the challenging global economic ‘bull’ by its horns, so, bring it on, 2024!

* Datuk Seri Tengku Zafrul Abdul Aziz is Minister of International Trade and Industry.

Source: Malay Mail

One year at MITI: A journey to elevate Malaysia’s economy — Tengku Zafrul Abdul Aziz

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Supermax Corp Bhd announced that its first glove manufacturing facility in the US is nearing completion, with the group having fulfilled and complied with various regulatory requirements, including permits, to operate the plant in Brazoria County, Texas.

“Supermax’s American and Malaysian teams have been working very hard to manage the setting-up of the US operations and we are pleased to announce that construction of our first manufacturing facility will be substantially completed before the end of December 2023. The next stage will involve the installation of various manufacturing equipment including AI, automation and robotics facilities,” said Supermax executive chairman Datuk Seri Stanley Thai in a statement that was issued following the group’s annual general meeting on Friday.

“A technical team from Supermax Malaysia will be deployed to the US facility in various stages for commissioning of the manufacturing facility,” Thai added.

According to the group, it is the first Malaysian company to set up a glove plant in the US, the biggest glove consuming market in the world.

The group, however, did not indicate when the plant, in which it planned an investment of US$350 million (RM1.6 billion), is expected to start production. It had originally targeted that to be in the fourth quarter of 2022, which was then pushed back to the second quarter of this year.

Meanwhile, Thai shared with shareholders at the AGM that the group is expected to continue to face challenges for the next five to six quarters, with improvements only expected in 2025.

Last month, Supermax reported a net loss of RM2.05 million for its first quarter ended Sept 30, 2023 (1QFY2024), compared to a net profit of RM5.71 million in 1QFY2023, as revenue shrunk to RM177.96 million from RM247.96 million amid weaker demand, while selling prices remained lower.

It is the group’s fourth straight loss-making quarter since 4QFY2023. Still, the group has been progressively narrowing its losses each quarter. It logged a net loss of RM108.07 million in 2QFY2023, RM39.91 million in 3QFY2023 and RM7.17 million in 4QFY2023.

In its results filing, Supermax attributed the losses it incurred to continued weak demand as buyers were still going through their heavily over-stocked positions post-pandemic, while it had to face a loss of revenue from a major market, the US, due to the Withhold Release Order imposed by the US Customs and Border Protection in October 2021, which was only lifted on Sept 18 this year.

Shares in Supermax settled unchanged at 90 sen on Friday, giving the group a market capitalisation of RM2.44 billion. The stock has climbed five sen or 5.88% since the start of this year.

Source: The Edge Malaysia

Supermax’s US factory nears completion

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The government is committed to increasing the acceptance level of Malaysians to shift to electric-based vehicles including electric motorcycles, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

He said this is due to the benefits of electric vehicle (EV) mobility which is not only limited to cars but also includes electric motorcycles which is also an important medium of public transportation.

“This is in line with the aspiration (of) and target set by the government to achieve zero carbon by 2050 as well as EV sales target of 20 per cent in 2030 through the National Energy Transition Roadmap (NETR),” he said after launching the Electric Motorcycle Use Promotion Scheme (MARiiCas) in conjunction with the Madani Government One Year Anniversary programme today.

Tengku Zafrul also advised all Malaysian citizens with annual income of RM120,000 and below to take advantage to register and apply for a cash subsidy of RM2,400 provided by the government.

He said the launch of MARiiCas is timely and the Ministry of Investment, Trade and Industry (MITI) believes this initiative can bolster the acceptance by the public to shift from using Internal Combustion Engine (ICE) to EVs.

“From another perspective, it is hopeful that this would help in achieving the electrified vehicles annual sales target of 20 per cent in 2030 as set in the NETR,” he said.

In a joint statement, MITI and the Malaysia Automotive, Robotics & IoT Institute (MARii) said this initiative offers incentives in the form of rebates to help increase the confidence and opportunity for the public to experience electric motorcycles as a medium of daily transport.

The statement said the MARiiCas application platform by MARii has been activated to enable applicants to check their eligibility, apply for the incentive, access information relating to the electric motorcycle models that are being offered, and check their application approval.

“This platform can be accessed through the website, insentif.marii.my beginning Dec 8, 2023,” it said.

Source: Bernama

Tengku Zafrul: Govt committed to increasing public acceptance of EV

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Nvidia Corporation, a United States-based multinational technology company, views Malaysia as a country with the resources and capability to fulfil the requirements and conditions for an artificial intelligence (AI) hub, said Prime Minister Datuk Seri Anwar Ibrahim.

Nvidia, a pioneer in accelerated computing, is the world’s sixth largest company in terms of market capitalisation.

Anwar said Nvidia has expressed its willingness to support Malaysia’s aspiration of being among the top 20 countries with regard to AI and has agreed to help develop the AI ecosystem in Malaysia in terms of building a centre of excellence to facilitate AI learning and research, as well as creating Malaysia’s own AI cloud computing system.

“Nvidia’s decision to invest in Malaysia is a clear sign that foreign investors, especially global technology giants, will continue to make Malaysia a preferred investment destination in the region,” he said in a Facebook post today.

Earlier today, Anwar had a discussion with Nvidia chief executive officer Jensen Huang and YTL Power International Bhd managing director Datuk Yeoh Seok Hong that touched on Malaysia’s potential to become a top 20 nation in terms of AI.

“I emphasised that Malaysia requires a world-class AI infrastructure to cultivate local talent and develop AI-based innovations,” the Prime Minister said.

Anwar said Nvidia will have a strategic partnership with Malaysian conglomerate YTL to build an AI data centre involving RM20 billion in investment.

YTL has started investing in supercomputers to be powered by Nvidia H100 graphics processing units to build an AI cloud system based in Malaysia.

Source: Bernama

Nvidia to support Malaysia’s aim to be a top 20 country in terms of AI, says Anwar

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The rise in domestic investors indicates growing investor confidence, said Investment, Trade and Industry (Miti) Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said this was proven when as much as 45% of the RM225 billion total approved investments from January to September this year were domestic investors.

“The level of confidence was not as high as it is now. This is due to positive economic overflow resulting from investments made by the local companies,” he said after the “Ada Apa dengan NIMP 2030 — Maju Industri, Maju Ekonomi Rakyat” programme, in conjunction with the Madani Government’s First Anniversary Programme here on Friday.

Tengku Zafrul also said that Miti will continue to focus on increasing the confidence of domestic investors to invest in Malaysia through the New Industrial Master Plan 2030 (NIMP 2030).

For foreign direct investment (FDI) and domestic direct investment (DDI), he said Miti will ensure that many other aspects are improved and that the approved investments can be realised as soon as possible.

Malaysia has attracted RM225 billion worth of approved investments in the service, manufacturing and primary sectors in the January-September 2023 period, up 6.6% from the RM211 billion investments approved in the same period last year.

Tengku Zafrul added that the government will continue to focus on investments based on vision rather than sectors in driving the national economy.

Source: Bernama

Domestic investors show growing confidence in Malaysia — Tengku Zafrul

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YTL Power International Bhd has confirmed that it is going to collaborate with Nvidia Corp to build an AI infrastructure that will be powered by the US-based chip giant’s technology, with the first phase of the data centre expected to commence operations by the middle of next year.

The utility group announced the deal after market close, which saw its share price as well as that of its parent YTL Corp Bhd ending the trading session at record highs, as talks swirled earlier on Friday about a potential collaboration between the two companies after Reuters reported that they were in advanced talks over a data centre deal.

In a statement, YTL Power said the data centre, which will provide AI computing services to the country, will be owned and managed by YTL Power’s 60%-owned subsidiary YTL Communications Sdn Bhd and be hosted in YTL Power’s 500MW solar-powered Green Data Centre Park in Johor.

The new collaboration was announced at a meeting on the same day between Nvidia founder and chief executive officer Jensen Huang with Prime Minister Datuk Seri Anwar Ibrahim. Also present at the event was YTL Power managing director Datuk Yeoh Seok Hong and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

“YTL will deploy Nvidia H100 Tensor Core GPUs, which power today’s most advanced AI data centres, and use Nvidia AI Enterprise software to streamline production AI. Nvidia AI Enterprise includes Nvidia NeMo, an end-to-end, cloud-native framework for building, customising, and deploying generative AI models from anywhere,” YTL Power said.

“Nvidia H100 GPUs deliver industry-leading generative AI and can speed up large language models (LLMs) by an incredible 30X compared with the previous-generation GPUs,” it added.

The utility group said it will not only provide green, energy-efficient AI infrastructure to scientists, developers and startups across the nation, but will also create AI-specific applications and services for its customers. “YTL plans to use Nvidia NeMo to customise and deploy a Malay language foundation model that will be sensitive to Malaysia’s multicultural heritage,” it said.

The AI data centre will also be the foundation for a digital economy powered by innovative solutions and applications built on Malaysia’s own LLMs, Yeoh said.

“This collaboration with Nvidia is poised to bring many benefits to the nation. Our green data centres and low-energy solutions are an ideal fit to be used with their (Nvidia’s) high-performance supercomputers. We are excited to begin this journey to bring our nation to the forefront of AI development,” Yeoh said.

YTL Power rose as much as 7.49% to RM2.44 on Friday, before paring gains to close at RM2.42, a closing record high — up 15 sen or 6.61% from Thursday’s close. The utilities group, which saw 43.77 million shares traded on Friday, is valued at RM19.74 billion.

YTL Corp, which controls 55.57% of YTL Power, climbed 15 sen or 9.74% to an all-time high of RM1.69 — valuing the group at RM18.63 billion. With 85.06 million YTL Corp shares traded, the counter was among the bourse’s most active counters on Friday.

Both YTL Power and YTL Corp have been heading north since March this year, with YTL Power having jumped 206.92% since, tracked by YTL Corp’s 201.79% climb during the period. Earlier this year, investors took cues from the utilities player being a big beneficiary of Putrajaya’s move to lift the renewable energy (RE) export ban, thanks to its power generation and retail footprint across the causeway in Singapore.

Speaking of Singapore, the island state’s annual 60MW cap on new data centres has been diverting investors to neighbouring Johor — where YTL Power’s 500MW Green Data Centre Park is located.

Nvidia boss Huang, who had a roundtable session with the media prior to his meeting with Anwar on Friday, said Malaysia has the potential to become a data centre infrastructure hub for Southeast Asia, while noting that AI data centres could become a new manufacturing sector in the country.

Nvidia is the world’s most valuable chipmaker and supplies technologies that power gaming PCs, data centres, AI applications, as well as generative AI. The chip giant has come to dominate the market for chips used in AI systems, at a time when the US is curbing export of high-end AI chips to countries like China, Iran and Russia.

Source: The Edge Malaysia

YTL Power confirms AI data centre deal with Nvidia; shares hit record high with YTL Corp

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IN RECENT years, Malaysia has shored up on investments to boost the growth of its digital economy, with the most recent being the announcement of a second 5G network in 2024.

This decision is aimed at dismantling monopolies and promoting competition.

This addition has been largely welcomed, given that Malaysia is direly in need of a boost to accelerate its 5G deployment: only 58% of the country has access to a 5G network.

Yet, relying solely on terrestrial network solutions to extend 5G reach is proving to be costly and time-intensive. Transitioning from 4G to 5G infrastructure requires providers to make enhancements to all network domains.

Faced with increasingly high costs of deploying infrastructure, Malaysia must reinvent its network advancement strategy, otherwise it runs the risk of lagging behind with a non-performant connectivity.

Securing high-speed, guaranteed connectivity will be key for Malaysia to embrace technological drivers.

Edge devices and robotic process automation, alongside e-commerce and digital banking services are paving the way to power opportunities for individuals and businesses alike.

Establishing digital foundation

In efforts to advance its digital economy, Malaysia laid the foundations with its national Blueprint and the establishment of the Digital Investment Office.

This initiative fosters multiple investments in the digital sector while driving digital adoption among entrepreneurs, enterprises, and local businesses.

More investments and national schemes have followed, such as the upgraded Pemangkin initiative this year.

As of 2022, the digital economy already contributes more than 22% to Malaysia’s national Gross Domestic Product (GDP).

Its growth shows no signs of stopping, as the country is underpinned by government investments in emerging technologies like artificial intelligence.

Similarly supported by governmental initiatives, efforts to bridge the digital divide in rural areas will go a long way in availing more digital services to consumers, which will in turn drive consumption and fuel economic growth.

The 5G challenge

However, the lack of access to high-speed and always-on connectivity remains a significant inhibitor to the success of these initiatives.

Approximately 1 in 5 Malaysians live in rural areas, which have long been disadvantaged by poor internet connectivity.

It is for this reason that accelerating 5G deployment has been a key focus, given the promise of speed and reliability that the network holds.

Despite this, deployment has been heavily impeded by licence regulations as well as challenges in balancing infrastructural costs with healthy return-of-investment (ROI) numbers.

Especially with the Malaysian government mandating 100 Mbps 5G mobile speeds by 2025, thousands of base stations would be required to be built and fiberized to meet both coverage and network speed goals.

Malaysia is no stranger to leveraging space to extend its terrestrial network, having done this as early as 1992.

Satellite technology has since played a crucial role in connecting Malaysia’s rural communities by bypassing the need for capital intensive and logistically challenging terrestrial infrastructure projects.

This has enabled Malaysia to make strides in connecting its rural communities, with over 95% of Malaysia being connected to a 2G/3G network at the minimum.

However, the demand of over 95% of Malaysians in today’s digital era means that delivering nationwide connectivity alone will no longer suffice.

As Malaysia becomes increasingly digitalised, high-speed, reliable connectivity becomes critical to unlocking new levels of growth.

High-speed connectivity with MEO satellites

A new breed of next-generation software-driven satellite technology can bridge the gap and expand the benefits of 5G to all of Malaysia.

Medium earth orbit (MEO) satellites, like O3b and the upcoming O3b mPOWER, have the capacity to provide high-performance connectivity to and from anywhere in the world, no matter the conditions.

Orbiting between 5,000km and 12,000km above Earth, MEO satellites occupy a sweet spot between Low Earth Orbit (LEO) and Geostationary Equatorial Orbit (GEO) satellites.

With just an initial constellation of six satellites in orbit and a start of service scheduled for the second quarter of 2024, O3b mPOWER will guarantee high throughput, low latency connectivity services to even the most hard-to-reach regions in Malaysia.

O3b mPOWER aims to deliver equitable access to communities and businesses ranging from remote Borneo region to the urban centres in Peninsular Malaysia ensuring they all have equitable access to digital resources facilitating access to economic opportunities.

The potential this will unlock for Malaysia is boundless: not only will rural communities be able to enjoy network speeds akin to those in cities, but businesses will have the option of scaling automation operations even in remote unoccupied areas without network quality as the sole inhibitor.

Crucially, while other satellite networks can extend mobile connectivity, what Malaysia’s digital economy needs is an extension of 5G networks to its enterprises across the country.

Enabling this will unlock new heights of business efficiency that can simultaneously spur innovation in Malaysia’s niche industries like electronics manufacturing, therefore further bolstering efforts to establish itself as a formidable manufacturing hub.

With a revamped network strategy leveraging the advantages of advanced satellite technology, realising the full potential of Malaysia’s digital economy may come sooner than later.

Harsh Verma is SES Asia vice president for Enterprise and Cloud.

Source: The Star

The key to accelerating Malaysia’s digital journey may lie 8,000km above Earth

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The Johor-Singapore Special Economic Zone (SEZ) will create a conducive environment for businesses and attract domestic and foreign investments.

Rehda Institute chairman Datuk Jeffrey Ng Tiong Lip said bilateral trade between Singapore-Malaysia reached US$83.53 billion (RM389 billion) in 2022 with both countries being each other’s second largest trading partners.

“Johor is the state to watch next year. The SEZ may stimulate infrastructure development in the region, including transportation, utilities and communication networks.

“This will create positive spillover effects on the overall economic development, including Forest City development by the Country Garden group,” said in his keynote address at the CEO Series 2023 (Economy and Business Forum) here today.

Besides the current RTS Link Project between Woodlands in Singapore to Bukit Chagar in Johor Bahru, he believed a revival of the high-speed railway (HSR) and additional crossings via ferry or even a third link bridge will generate positive effects on growth.

The RTS Link Project is expected to have an hourly capacity of 10,000 passengers per direction with a daily 40,000-passenger ridership.

“However, we also hope that the government can understand the plight of the property industry. The price increase in building materials, logistics and labour poses a serious challenge to construction and property development and has a spillover effect on the rest of the supply chain,” said Ng.

At the same event, the Real Estate and Housing Developers’ Association (Rehda) Malaysia and Rehda Institute exchanged a memorandum of understanding (MoU) with Universiti Malaya to strengthen research, academics and training for the real estate industry.

Planned areas of collaboration between Rehda Institute and UM include public policy research, affordable housing, sustainable and smart cities development, environmental, social and governance (ESG) issues, industry benchmarking and industry and consumer surveys and focus groups.

The MoU also hopes to see industry work placement opportunities and the co-development of training programmes.

Source: Bernama

Rehda Institute: Johor-Singapore Special Economic Zone to create conducive business environment

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Malaysia is now a country where foreign direct investment (FDI) entities are looking at investing in manufacturing, as their focus has shifted, revealed Investment, Trade and Industry Deputy Minister Liew Chin Tong.

He said this in his special ministerial keynote address on the “National Industrial Master Plan (NIMP) 2030: Malaysia’s New Economic Takeoff” at the CEO Series 2023 Economy & Business Forum, organised by Rehda Institute on Thursday at Le Meridien Hotel, Petaling Jaya, Selangor.

“[The focus] used to be efficiency and cost (and that’s why many manufacturing factories are in China). But now, efficiency and cost are balanced with the idea of resilience, or a second supply chain,” Liew added.

The forum was attended by more than 350 key senior stakeholders from the government and private sectors.

Liew’s optimism was supported by the recent announcement that Malaysia is the second outperforming country with about US$28 billion worth of greenfield FDI projects pledged from January to August 2023, more than double than the annual average recorded in the decade before the pandemic.

Also, Malaysian Investment Development Authority (Mida) announced on Wednesday (Dec 6) that Malaysia’s investment performance achieved an all-time high at RM225 billion of total approved investments for the first nine months of this year (9M2023) — contributed mainly by services (RM117.7 billion), manufacturing (RM99.8 billion) and primary (RM7.5 billion) sectors.

Meanwhile, for the New Industrial Master Plan 2023 (NIMP 2023), the macroeconomic targets for the manufacturing sector (impact based) is to reach a gross domestic product of RM587.5 billion; an employment of 3.3 million persons, and a median salary of RM4,510 per month. These will be driven via six engines of growth in which high-quality investments are needed.

These engines of growth are reindustrialisation, green transition, tech up, good life, services and empowering regions. Good life refers to world-class infrastructure and public services, which includes investing in better healthcare, health-related manufacturing and services, mobility, better livable cities, food security and social protection, as well as job-led consumption growth.

“There are paradigm shifts for an agile, resilient and thriving Malaysia. It is about maximising the indispensable middle position of Malaysia in the global supply chain; shifting from land/resource-based to tech-based capital, and from real estate to real sectors; shifting from labour-intensive to valuing and paying for skills; and from a low-wage workforce to a resilient middle class society; as well as putting climate at the centre of economic consideration,” he concluded.

Source: The Edge Malaysia

Malaysia in the limelight for FDIs

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Employers need a paradigm shift in investing in productivity and be willing to pay higher wages for skills, said Deputy Minister of International Trade and Industry (MITI) Liew Chin Tong.

He suggested that Malaysian business owners should work together towards a common goal that paying higher wages to employees would benefit the nation.

Liew emphasised that the country has the appropriate workforce and the ability to achieve the same level of productivity as Singapore.

“Our Prime Minister (Datuk Seri Anwar Ibrahim) has been very focused on investments. The next step is to restructure the company to allow for higher salaries and increased automation, which will require more skilled employees.

“After investing in the system, we anticipate that factories will eventually have to increase their wages. This will create greater equality, making it more appealing for Malaysians who are currently working in Singapore to return to Malaysia for work,” he told reporters after delivering his keynote address at the Rehda Institute’s CEO Series 2023: Economy and Business Forum, titled National Industrial Master Plan (NIMP) 2030: Malaysia New Economic Take Off.

In his speech, Liew stressed that Malaysia needs to change the way it sees productivity and needs to improve productivity through investments in technology, total factor productivity (TFP), machines, automation and digitalisation.

“These will help us maximise our position as an indispensable middle within the vertical integration of supply chains,” he said.

In Malaysia, Liew said the median monthly salaries and wages in 2022 stood at RM2,424, which is low compared to regional peers including Indonesia.

He noted that 50 per cent of working Malaysians are currently getting paid at this level.

Therefore, Liew said the government through NIMP 2030 aims to increase wages gradually, where it would reach RM4,510 in 2030 for the manufacturing sector and at the same time, able to have less dependency on non-skilled foreign labour.

Liew further said that the country must also move from a land-resource-based economy to a technology-based economy to be more vibrant and resilient in the future.

He said that for example, there could be an opportunity for developers to change the development of industrial parks by investing in companies that were setting up their industrial parks, and not just banking on lands.

“Developers should now focus on developing the industrial supply chain, not just land. Discussions with manufacturers should revolve around supply chains and ecosystems.

“They are encouraged to transition from a land-based economy to investing in technology, which can be beneficial to the ecosystem and help grow industries,” said Liew.

He also advised businesses to put climate at the centre of economic consideration, especially when rebuilding cities while making mobility more convenient.

Source: Bernama

MITI: Malaysia needs paradigm shift in productivity, higher wages

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Attracting more foreign direct invesment (FDI) into Malaysia, can lead to higher wages, according to Deputy Investment, Trade and Industry Minister Liew Chin Tong.

He said that last year, the median wage in Malaysia was “too low” at RM2,424, and the government plans to gradually increase wages in stages.

Citing the New Industrial Master Plan 2030, he said one of the objectives outlined was to create an environment which could support a median wage of RM4,510 for workers in the manufacturing sector.

“Higher wages will benefit all sectors,“ Liew said during the CEO Series 2023 (Economy and Business Forum) yesterday, expressing that it will further motivate workers’ performances and productivity.

He said the government recognises the importance of attracting investment into the country, which could lead to higher wages for workers.

He also noted that Prime Minister Datuk Seri Anwar Ibrahim had secured high investments from his notable trips to China and the US.

“Once you have the investment, the next thing is, can you structure it in such a way that you pay better?,“ said Lee.

However, he reckoned that when wages reached a certain level, that would entice Malaysians working in Singapore to return to the job market in their homeland.

With higher wages, Liew said, Malaysia will be able to increase the adoption of automation in all industries.

“When the use of automation is higher, we would reduce reliance on unskilled foreign workers,“ he added.

Meanwhile, Real Estate and Housing Developers’ Association Institute chairman Datuk Jeffrey Ng said the Johor-Singapore Special Economic Zone (SEZ) offers potential growth opportunities, which will attract domestic and foreign investments into the country.

Ng said that last year, trade between both countries reached US$85.53 billion (RM399.7 billion), with Singapore emerging as a major source of FDI, contributing 8.3% to Malaysia’s total investments.

He added that the establishment of SEZ in Johor, will likely stimulate job creation.

“Currently, approximately 900,000 Malaysians work in Singapore, where approximately one third (300,000) Malaysians travel across the Johor-Singapore Causeway on a daily basis.

“Many of them work in Singapore lured by favourable exchange rates. The SEZ could contribute to better job opportunities in the Johor region, where some Malaysians, could be employed in our own country,” he said.

In addition, Ng said Johor will be the “state to watch” in 2024 as the SEZ could be a catalyst for regional infrastructure development, including transport, utilities as well as communication networks.

“This will create positive spillover effects on overall economic development including Forest City,“ he added.

Source: The Sun

Attracting more FDI can lead to higher wages: Liew

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The Malaysian Investment Development Board (Mida) had approved a total of RM589,289,273 worth of green technology investments in Perak since 2015 until June this year, the State Legislative Assembly was told today.

Perak Corridor of Tourism, Industry, Investment and Development Committee chairman Loh Sze Yee said RM297,790,282 or 51 per cent of the amount is through direct domestic investment.

“The remaining 49 per cent or RM291,498,991 is through foreign direct investment,” he said.

Loh was replying to an oral question from Pantai Remis assemblyman Wong May Ing on the status of green technology investments by foreign investors in Perak.

Loh added that Perak State Development Corporation (PKNPk) as the leader of the green technology agenda has developed several initiatives to support the growth of the green technology sector under the Perak Sustainable Plan 2030.

“Among the initiatives were the Mini Hydroelectric 2 project at a cost of RM400 million involving six rivers, the large-scale solar development project with 30 megawatts of energy on 43 acres of land in Bidor with an investment of RM150 million and the mineral processing company with a zero-waste facility in Chemor with an investment value of RM100 million.

“Other projects were the Floating Hybrid Solar Farm project in collaboration with TNB Power Generation Sdn Bhd (TNB Genco) in the water catchment area of Sungai Perak Hydroelectric Power Stations (SSJ) and solar farming through subsidiary Majuperak Holdings Berhad (MHB),” he said.

Loh also said MHB had installed rooftop solar panel systems through the Net-Energy Metering (NEM) scheme in Bazaar Ipoh, local government offices, district offices and 20 mosques around the state.

“PKNPk also installed the rooftop solar panel systems at the Casuarian Hotel in Meru via the NEM scheme and the estimated savings for the first year is as much as RM135,882.00, which is a 9.4 per cent reduction in electricity bills,” he said.

Source: Malay Mail

Perak records RM589m green technology investments since 2015, state assembly told

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The Johor state government is expecting RM60 billion in additional investments covering various projects at the Pengerang Integrated Petroleum Complex (PIPC) in Pengerang, Kota Tinggi, involving the third phase of the development.

State Investment, Trade and Consumer Affairs Committee chairman Lee Ting Han said that the third phase of the PIPC development will cover the years 2026 to 2031, in line with the PIPC Master Plan.

He said seven various projects in the pipeline are expected to be realised during the development of the third phase of PIPC, including the construction of solar farms, bio-refineries and facilities producing nitrile-related products.

“These projects are still at the feasibility study stage. It is still early. Those projects are likely (to be realised) in the 2026 to 2031 phase because, like chemical and petrochemical projects, they involve massive capital expenditure.

“Once they (investors) decide to invest, they will be there for the long term. Therefore, the typical feasibility study would take two to three years or maybe more. So, these companies have been very cautious,” he told reporters on the sidelines of the Johor state assembly here today.

Lee added that the PIPC, which is currently in the middle of the second phase (2020-2025), has received a committed investment of almost RM140 billion, which is 90 per cent of the target set in the master plan.

“A total of 7,400 job opportunities have been created in the Pengerang area during the middle phase and for the third phase, we hope to add another 10,000 job opportunities,” he said.

Earlier, Lee (BN-Paloh), when replying to an oral question from Aznan Tamin (BN-Tanjung Surat), said that in Budget 2024, which was approved by the Dewan Rakyat yesterday, the federal government announced that the development of the PIPC will continue to be supported through the provision of special tax incentives or investment tax allowances.

He said the initiatives are in line with the New Industrial Master Plan (NIMP) 2030 and Chemical Industry Roadmap 2030, in which the chemical and petrochemical sector is one of the prioritised industries.

Aznan had asked what the government’s incentives were to ensure that the Pengerang area remains strategic and becomes the main choice of foreign investors.

Through Budget 2024, the federal government announced that the PIPC, which is a 9,269-hectare downstream oil and gas and petrochemical industry area in Pengerang, will be made a hub to further develop the chemical and petrochemical industry.

Source: Bernama

Johor expects RM60 bln additional investments for third phase of PIPC

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Asean countries should be confident in developing the electric vehicle (EV) industry with their expertise, said the Electric Vehicle Association of Malaysia (EVAM).

Its president, Datuk Dennis Chuah said every country, especially Malaysia, has the expertise to grow its share in the huge Asean regional market of over 650 million and aim to export globally.

“We would like to see local companies being top global suppliers for the EV ecosystem.

“So, with our strength and with the government’s willingness to increase the volume or the players in the Malaysian EV environment, once we can do that, we are on our way to being a proud export-oriented country,” he said at the E-mobility Asia 2023 conference here today.

Electric Vehicle Association of Thailand (EVAT) president Krisda Utamote said it was imperative to establish the right education and training to provide a talented workforce for the EV industry, which is expanding rapidly in Thailand.

He said that in Thailand, the EV sector is booming with companies such as MuvMi which has 600 electric three-wheelers and a targeted revenue of US$5 million (US$1=RM4.677) for 2023.

Electric Vehicle Association of Philippines (EVAP) chairman emeritus Ferdinand Raquelsantos said the Philippine government provides comprehensive training for technicians but knowledge of EVs should start from the school level.

“Not only the school children but parents should also know about electric mobility. This would ensure they appreciate the total EV ecosystem.

“They (parents) still think that EVs are expensive to buy and maintain as a day-to-day transport but the cost of running an EV can be up to 65 per cent cheaper than a conventional vehicle. These are things that we need to teach or educate the people about,” he said.

Meanwhile, Electric Vehicle Association of Singapore (EVAS) representative Leow Ju-Len said the republic has local EV expertise such as in a startup service called Power Up Tech.

“The company provides on-demand DC fast charging services for EVs anywhere within Singapore. The aim is to make it more convenient for EV owners in the republic,” he said.

EMA 2023 is the first edition of its kind and it aims to raise greater awareness and open up various business prospects to companies that intend to get into the EV industry.

Source: Bernama

Be bold to develop own expertise in EV industry, Asean nations told

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The federal capital has been ranked eighth globally and third in Asia for being the best city to live in by a recent global survey.

According to the InterNations’ annual Expat City Ranking, Kuala Lumpur stood out among the 49 cities worldwide covered in the report.

Globally, Kuala Lumpur came in eighth place, trailing four cities in Spain, Mexico City, and the two United Arab Emirates (UAE) cities mentioned earlier.

Kuala Lumpur holds the second position in Asia, trailing behind the leading cities of the UAE, namely Abu Dhabi and Ras Al Khaimah.

The rankings were determined by assessing the experiences of expatriates in the past year, with InterNations conducting a survey of over 12,000 expats globally.

A thorough examination included 177 expat nationalities in 181 countries or territories, assessing factors such as the ease of adaptation, personal finances, quality of life, and other pertinent aspects.

Furthermore, Malaysia was ranked as the fourth-best country in the world for expats to live, behind Mexico, Spain, and Panama.

The study also highlighted Malaysia’s significant improvement in quality of life rankings, advancing from 44th out of 52 destinations in 2022 to 29th out of 53 this year.

Source: NST

Kuala Lumpur ranked eighth globally and third in Asia as best city to live in

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Several Muslim businessmen and technology experts based in San Francisco, United States have expressed their interest to invest in Malaysia, said Prime Minister Datuk Seri Anwar ibrahim.

Anwar in a Facebook post today said the matter was relayed to him during their meetings, among them SpaceX Commercial Marketing director Omar Kunbargi; Rembrand chief executive officer Omar Tawakol; Ornovi chief executive officer, Fauad Hassan; Z2Data president and chief executive officer, Mohammad Ahmad; Whizz System president, Muhammad Irfan and Z2Data communications chief, Osama Ahmad.

Anwar who is also the finance minister, said they stated their interest after getting clarifications on the country’s future direction.

He said also discussed in the meeting was the need to give more attention to artificial intelligence apart from touching on education and aerospace which are equally important.

“We also discussed the question of Muslims in the United States as well as the situation affecting Palestinians.

“They also stated their support and appreciation on the firm stance of Malaysia on the sufferings of Palestinians,” he said.

The Prime Minister is in San Francisco, California, United States to lead Malaysia’s delegation to the 30th Asia-Pacific Economic Cooperation (Apec) Economic Leaders’ Meeting in San Francisco, United States which ended yesterday.

Source: Bernama

PM: Muslim businessmen, technology experts in San Francisco keen to invest in Malaysia

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Malaysia plans to further solidify its involvement in China’s Belt and Road Initiative (BRI) and explore a wider economic partnership with the world’s second-largest economy in emerging growth areas such as sustainable development and green trade, Deputy Prime Minister Datuk Seri Fadillah Yusof said.

Fadillah, who is also the Plantation and Commodities Minister, said the country has been proactive in taking pivotal measures towards the administration and production of sustainable palm oil.

“As it stands, approximately 90 per cent of oil palm planted areas amounting to 5.26 million hectares, which encompass plantations and smallholdings, have been recognised under the Malaysian Sustainable Palm Oil (MSPO) certification.

“The certified regions boast an impressive potential annual production capacity of up to 18 million tonnes,” he said in his keynote speech at the High-Level Roundtable Meeting with Major Stakeholders of Palm Oil here today.

Fadillah called on palm oil stakeholders to embrace the expansive opportunities served by the thriving trade and economic connections between Malaysia and China.

“Under my stewardship, rest assured, that we will strive to maintain optimal conditions for conducting business and investing in Malaysia.

“Therefore, forge more alliances with Malaysian corporations, specifically in pivotal sectors, to promote profound interconnections akin to the diverse uses of our versatile palm oil.

“We believe that palm oil has a great deal of potential to become more prominent in the Chinese oils and fats (market) shortly,” he stressed.

Fadillah is on his maiden official visit to China from Nov 12-19 to strengthen cooperation in research and development as well as capacity building in the field of commodities, especially in promoting the MSPO certification scheme at the global level.

In 2022, the exports of palm oil and related products from Malaysia to China reached US$3.72 billion or RM14.86 billion.

This substantial number constituted 11.4 per cent of Malaysia’s total worldwide exports of palm derivatives, which equate to RM130.25 billion.

Source: Bernama

Malaysia seeks to widen partnership with China in emerging growth areas – Fadillah

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AT a time when most local semiconductor firms are seeing a slowdown in sales — especially in the consumer segment — amid a down cycle in the global chip industry, Penang-based automation house and equipment vendor Pentamaster Corp Bhd is not resting on its laurels. It has already made plans to invest in the automotive and medical technology (medtech) sectors.

This is in line with a major global trend towards e-mobility, the company’s co-founder and executive chairman Chuah Choon Bin tells The Edge in an interview. “As a technology company, we must always stay ahead of the curve and be at the forefront of major technology structural trends. This also gives us an edge over our competition by being a ‘custom’ solutions provider, identifying the next technology trends and focusing on them.”

With the growing importance of net zero greenhouse gas (GHG) emissions globally, he expects the momentum will continue to be robust in the next three to five years as more governments and countries focus on initiatives to cut GHG emissions, starting with the automotive sector.

After setting up international units in the US, China, Japan and Singapore, Pentamaster opened its fifth unit in Germany in March. “With the establishment of our new office in Germany, we are eager to enhance our presence and diversify into the electric vehicle (EV) and medtech sectors,” says Chuah.

The German office will play a pivotal role in research and development (R&D) activities while providing technical sales support to better serve the group’s customers, he says. “Given that Europe, particularly Germany, is a key hub of the auto industry, with more than five multinational corporations (MNCs) already our customers for power module semiconductors, this expansion is strategically positioned.”

A report by Indian market research firm Mordor Intelligence shows that the auto semiconductor market is projected to achieve a five-year compound annual growth rate (CAGR) of 14.4%, reaching a value of US$140 billion (RM662 billion) by 2028. This upward trend is primarily driven by the implementation of supportive government policies and the growing acceptance of electric and hybrid vehicles in the US and China.

In addition to the EV sector, Pentamaster is also expanding into the medtech space, with a particular emphasis on the UK, Poland and Ireland markets.

“Additionally, we will leverage our presence in Germany to serve as a gateway to the North African market. Our current revenue from Europe accounts for less than 10%, indicating a significant growth potential in this region for Pentamaster,” says Chuah.

Pentamaster offers automated test equipment (ATE) for the semiconductor industry and factory automation solutions (FAS) tailored for the medtech industry. The ATE division accounts for half of the group’s revenue, while the FAS division contributes about 45%.

In the realm of ATE, Chuah says Pentamaster has achieved “remarkable success” in power modules and wafer-level testing, as well as burn-in solutions. These areas are projected to be high-growth sectors for the next five years.

“On the other hand, in the medtech segment under our FAS division, the growing market demand for precision automation in the manufacturing of high-end, technologically advanced medical products cannot be overlooked. This demand extends to precision assembly, Internet of Things integration and semiconductor technology,” he adds.

In 2024, Pentamaster plans to explore opportunities in Indonesia and the Middle East in the fields of medtech and agriculture. “Initially, we may allocate about 1% to 3% of the group’s revenue to kick-start these ventures, and our expansion will be contingent on the level of recognition and acceptance we achieve in these regions,” he says.

Today, Chuah, 62, is the single largest shareholder of Pentamaster, with a direct stake of 19.76%. The company’s top 30 shareholders include the Employees Provident Fund, Kumpulan Wang Persaraan (Diperbadankan), AIA Bhd, Kenanga Shariah Growth Opportunities Fund, two Hong Leong funds and two Public Islamic funds.

Bucking the trend

Pentamaster, ViTrox Corp Bhd, Greatech Technology Bhd and Mi Technovation Bhd are known as the Big Four ATE manufacturers listed on Bursa Malaysia.

While most of its peers and competitors have grappled with weaker financial results in the last two years, Pentamaster has maintained the upward trajectory in its earnings growth, thanks to its better product mix.

Last Thursday, Pentamaster announced that its net profit had increased 15% to RM68.43 million in the nine months ended Sept 30 (9MFY2023), up from RM59.68 million a year earlier, as the group saw improvements across its business segments.

For comparison, ViTrox saw its 9MFY2023 earnings decline 32% to RM103.9 million, while Mi Technovation’s 1HFY2023 profit decreased 7.5% to RM29.1 million.

Meanwhile, Inari Amertron Bhd — the country’s largest outsourced semiconductor assembly and test player, which has a heavy exposure to the consumer electronics segment — saw its bottom line drop 17% to RM323.5 million in its financial year ended June 30.

Notably, Pentamaster has a diversified customer base. In 9MFY2023, some 52% of the group’s revenue of RM522.93 million came from the auto segment, 18.8% from the medical device segment, 13.8% from the semiconductor segment, 9.8% from the electro-optical segment and the remaining 5.6% from the consumer and industrial product segment.

The share price of Pentamaster had gained 30% over the past 12 months to close at RM4.89 last Thursday, giving the company a market capitalisation of RM3.478 billion. The counter is currently trading at a historical price-earnings ratio (PER) of 38 times.

Chuah says he would leave Pentamaster’s share price performance and stock valuation in the hands of the market, which “sometimes can be quite irrational”, he acknowledges.

“[We have seen] PERs of 100 times for some companies and less than 10 times for some conglomerates. What we can do is deliver quality and sustainable returns to our shareholders, and we let the market decide how much we are worth,” he comments.

In a Nov 3 report, UOB Kay Hian Securities head of retail research Desmond Chong had a “buy” call on Pentamaster, but with a lower target price of RM5.80, from RM6.20 previously.

While Pentamaster’s results missed his and consensus full-year estimates due to timing differences in revenue recognition, he believes there is still value in the group’s improving operational matrix alongside traction from new customers which will continue to “anchor strong growth in 2024”.

Chong points out that against the tide of industry cyclical weakness, Pentamaster is riding on secular growth from the automotive and medical device segments — collectively contributing about two-thirds of total revenue — which is offsetting the moderate demand from the electro-optical and consumer and industrial product segments.

“The solid performance of the automotive segment is in line with the secular automobile electrification trends, where the group continues to make progressive breakthroughs with its comprehensive range of product solutions and innovations,” he says.

Targeting to hit RM1 bil revenue by 2025

Pentamaster is currently running at full capacity at its Bayan Lepas (Plant 1) and Batu Kawan (Plant 2) plants in Penang. The built-up area of Plant 1 is about 150,000 sq ft, while that of Plant 2 is 97,000 sq ft.

Chuah says the two plants have been supporting Pentamaster’s operations over the past few years, with a sales CAGR of 27%. “With last year’s revenue hitting a record high of RM600 million, we expect our sales to continue growing year on year and a bigger manufacturing plant is necessary to accommodate such expansion.”

With that, Pentamaster’s Campus 3 in Batu Kawan, with a built-up of 720,000 sq ft, is currently under construction. Some 600,000 sq ft is dedicated to production and the remaining 120,000 sq ft is allocated to R&D, administration and warehousing.

Chuah says that over the past two years, Pentamaster has experienced consistent annual revenue growth of 15% to 20%, while the CAGR of its top and bottom lines has been more than 20% over the past five years.

“Our commitment to expansion remains unwavering as we aggressively venture into high-value sectors like medtech and ATE for power electronics testing used in EVs. Our aim is to achieve a revenue milestone of RM1 billion by 2025, and if not by then, certainly by 2026,” he adds.

Chuah says the primary growth catalysts for Pentamaster in the next three to five years will be the group’s focus on power electronics semiconductor testing under the ATE division, as well as the development of medtech under the FAS division. He warns that in an increasingly competitive global landscape for the existing solutions, failure to move up the value chain could result in market disadvantage and potential profit margin erosion, or worse being made obsolete.

“Again, every industry has its ups and downs, or what we call ‘blips’. But if it proliferates on a longer trendline, you will note that the growth and structural change in the technology sector has been amazing,” says Chuah.

“Look at where we are now — artificial intelligence, driverless cars, robo-taxis, cryptocurrency and space travel. Technology has become so ingrained in our lives and we will likely see a deeper convergence going forward.”

Source: The Edge Malaysia

Pentamaster doubles down on auto, medtech segments despite global chip downturn

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Fraser & Neave Holdings Bhd (F&N) is on track to meet its Phase 1 completion of the group’s dairy farm in Ladang Permai Damai in Gemas, Negeri Sembilan by early 2025 when the first milking is expected to begin.

Chief executive officer Lim Yew Hoe said for Phase 1, the company would start to bring in 2,000 cows before slowly increasing the numbers in phases to about 4,000 cows in the first year, with a capital expenditure of around RM1.3 billion.

“We are creating an integrated dairy farm where there will be corn planting (the main feedstock for the cows), dairy farming, followed by milk processing and packaging all at the same site. Thus, we will be able to offer Malaysian consumers quality fresh milk at an affordable price.

“Our integrated farm will feature a milk processing capacity of producing 100 million litres per annum (Phase 1) and is likely the largest dairy farm in Southeast Asia.

“As of Sept 15, 2023, 202.34 hectares of land have been cleared, and we will then start planting the feed,” he said at the company’s financial year 2023 results briefing here today.

He further said the company also envisioned the fresh milk produced by its dairy farm to be sustainable, with the lowest carbon footprint end-to-end.

“F&N is committed to using 100 per cent Roundtable on Sustainable Palm Oil (RSPO) Certified Sustainable Palm Oil by 2025 and enhancing the circularity of its product packaging.

“For 2023, the group used 60 per cent Certified Sustainable Palm Oil and the remaining 40 per cent with RSPO credits,” said Lim, adding that currently, 25 per cent of its beverage and dairy packaging is sourced from recycled material.

Besides fresh milk, Lim said that the company plans to extend its product range into flavoured milk and cream-based milk in the future.

Spreading over 2,726 hectares, the integrated dairy farm would eventually house 20,000 dairy cows, producing 200 million litres of fresh milk yearly for local and international markets.

Meanwhile, following the acquisition of Cocoaland and Sri Nona, which have begun contributing to the group’s revenue, Lim said it hopes to move 100 per cent of Sri Nona’s factory to Rawang, where the current Cocoaland factory is situated, in 2024 so that both productions would share the same logistics facilities.

Currently, some of Sri Nona’s operations are still in Kepong.

On new products, Lim said the group plans to launch new plant-based oat milk for baristas and refresh Cocoaland’s brand products with a new look, among others.

Source: Bernama

F&N on track for dairy farm phase 1 completion by early 2025

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Perusahaan Otomobil Kedua Sdn Bhd (Perodua) has revised its production target to 338,000 units, supported by improved parts supply by auto vendors and healthy demand for its vehicles.

The increased production will also translate to a higher sales volume of 325,000 vehicles by end-2023, said the car manufacturer in a statement.

This marked an increase from the production target of 330,000 units and a sales target of 314,000 vehicles it announced in January 2023.

“This month saw our highest ever production and sales performances of 35,111 units made and 33,836 units registered in a single month,” said Perodua president and CEO Datuk Sri Zainal Abidin Ahmad.

He said the increase in production was achieved with available resources within current automotive ecosystem, hinting at its growth potential for both demand and supply side of the industry.

While some issues remain such as the long-term availability of semiconductor chips, Zainal said the carmaker is able to secure enough so that its fourth-quarter performance will be a historic best.

“If this momentum continues, then the automotive industry might be able to sustain such growth in 2024, which would further help boost the consumer sentiment despite the economic uncertainties next year,” Zainal said.

“For now, we are focusing on maximising our potential in both production and sales so that our customers will receive their Perodua vehicles faster,” he added.

Source: The Star

Perodua raises 2023 production target to 338,000 units

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