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The Ministry of Investment, Trade, and Industry (MITI) aims to raise awareness about the abundance of job opportunities in high-skilled sectors.

Its Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said he had visited several industrial plants in Penang and observed positive developments, particularly in the electrical and electronics (E&E) sector.

“The E&E sector is one of the focal points under the new industrial plan or National Semiconductor Strategy (NSS) recently launched. Penang is well-known as the country’s semiconductor hub.

“Alhamdulillah, we have learned about the progress and success of companies in Penang, especially our local companies in the E&E and semiconductor fields.

“These companies are also active, particularly in terms of talent development, focusing on students from Technical and Vocational Education and Training (TVET) programmes and emphasising the importance of STEM. There are significant opportunities and demand for skilled professionals,” he said.

He made these remarks after visiting semiconductor industry plants in Penang today.

Tengku Zafrul also visited several plants, including Motorola Solutions, Abbott Medical Devices, Pentamaster, and UWC Technology in the state.

He added that the government aims to train 60,000 highly-skilled local engineers in the semiconductor industry, as previously announced by Prime Minister Datuk Seri Anwar Ibrahim.

Previously, Tengku Zafrul said shortage of the right skill workforce particularly in the engineering profession is the most challenging talent issue for Malaysia.

He emphasised on the importance of talent management as Malaysia is positioned well to ride on the current global trend.

Source: NST

‘Abundance of job opportunities in high-skilled sectors’, says Zafrul

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Efforts to produce more local talent should be supported not only by the high-tech industry but also intensified across various sectors to ensure the country’s economic growth, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

During an official visit to several electrical and electronic (E&E) and semiconductor facilities in Penang today, the minister noted that these companies were actively supporting the development of science, technology, engineering and mathematics talent, as well as technical and vocational education and training.

“We aim for various industries to support these efforts to boost Malaysia’s industrial sector,“ he said after the visit, emphasising that nurturing talent is a national responsibility.

Earlier, Tengku Zafrul visited Motorola Solutions, Abbott Medical Devices, Pentamaster and UWC Bhd facilities.

He said there is a need for the industry to be more proactive in raising awareness about the numerous job opportunities in the high-tech sector.

“For example, through the National Semiconductor Strategy (NSS), we are targeting 60,000 skilled workers in technology and engineering to attract high-quality investments that create high-income jobs,“ he said.

During the visit, Tengku Zafrul observed the companies’ progress in supporting the New Industrial Master Plan and their readiness to achieve the NSS targets.

The NSS, launched last month, focuses on sectors including E&E, with Penang as the hub for the country’s semiconductor industry.

Source: Bernama

MITI minister urges broader industry support for local talent development

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The implementation of investor-friendly policy by the State Government has brought positive development, including gaining attention from of one of the world’s economy leading nations, China.

Chairman of a government-linked company (GLC) in China, Chen Pengyu, said the policy was timely and will have a major impact in the development in the Asian region.

He said the policy had attracted more investors from his home country to engage in various industries in Sabah, particularly in the renewable and green energy sectors.

“Companies from China will be more interested in investing in Sabah and help the state move towards utilising green energy.

“I also hope that more companies from China and from around the world will invest in Sabah in the future … Sabah is a state worth investing in,” he said.

Chen said this after the Memorandum of Understanding (MoU) signing ceremony between the company he represents, Shanghai Vision Industrial Development and Bumi Borneo Consultant and Training, which will see both parties collaborate in the development of green energy in Sabah.

The MoU is part of the ‘business matching’ agenda witnessed at the 11th Sabah Oil, Gas and Energy Exhibition and Conference (SOGCE) 2024, which took place over two days starting Friday at the Sabah International Convention Centre (SICC).

Meanwhile, the managing Director of Bumi Borneo consultant and Training, Mohd Suffry Abdul Rahman, said the opportunity to collaborate with foreign companies was an ideal platform to fulfill the state government’s aspirations as a catalyst for green energy industry in Sabah.

“After the Sabah state government, through the Energy Commission of Sabah (ECoS), took over power in early January, we have been very positive.

“There have been changes in terms of energy procurement. Although it has only been five to six months, we are already seeing results.

“Last May, an open tender for solar was launched for all industry players to participate,” he added.

Earlier at the same event, an MoU was signed between Shanghai Vision Industrial Development and Bumi Borneo Consultant and Training thus establishing cooperation between both parties for the development of green energy in Sabah.

Source: Borneo Post

Investor-friendly policy a catalyst of green energy industry in Sabah

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NASDAQ-listed AGAPE ATP Corporation (ATPC) has set its eyes on Sabah’s solar farming industry as its next venture.

Prof Datuk Seri Dr How Kok Choong, the founder and global group chief executive officer of ATPC, incorporated the group back in 2016 with the aim of providing health and wellness solutions for today’s world.

It originally began with a focus on preventing diseases caused by pollution, poor diets, and unhealthy lifestyles through scientific and technological innovations.

“As we grew, we went for a listing on Nasdaq, which was a big milestone for us,” he said in an exclusive interview with The Borneo Post.

“Now, we are continuing our commitment to caring for the environment by venturing into green energy. It is an exciting journey, and we’re dedicated to making a positive impact on both health and the planet.”

How believed the power supply issues in Sabah are quite challenging, especially with the increasing demand from new businesses and investors.

“It is clear that we need to find sustainable solutions to support the region’s growth and ensure reliable energy for everyone,” he said.

When asked why they chose Sabah for their solar farm projects instead of other states, How said it was due to the state’s high potential for solar energy thanks to its sunny climate.

“Additionally, the current energy challenges in Sabah provide us with an opportunity to make a real difference and support the local community.

“The inspiration came from seeing the urgent need for sustainable energy solutions in Sabah. Solar energy is a clean and renewable option that can help address power shortages and support the region’s development in an environmentally friendly way.”

Some of the challenges include logistical issues due to remote locations, regulatory hurdles, and the need for significant upfront investment.

However, How said he and his team are working through these challenges with careful planning and collaboration with local stakeholders.

“We set up ATPC Green Energy as a subsidiary of Agape ATP Corporation for a few reasons. First off, it allows us to really focus on our renewable energy projects in Sabah,” he enthused.

“Having a dedicated company helps us streamline our efforts and bring in specialised talent to push these green energy projects forward.

“But, we are not stopping with just the project in Sabah. This new company is also a big part of our commitment to the UN Sustainable Development Goals.

“We are aiming to build a comprehensive renewable energy ecosystem across the Asean region. This includes everything from energy-saving solutions to solar projects and other renewable technologies.

“Our goal is to develop a diverse portfolio, expand our energy-saving offerings, foster great partnerships, and capture a significant market share in the region.”

ATPC Green Energy’s main plan for helping Sabah reach its renewable energy goals is to build solar farms that will provide a reliable and sustainable energy source, which is exactly what the region needs to meet its growing energy demands.

“We’re really excited about these projects because they have the potential to make a big impact and support Sabah’s target of 80 per cent renewable energy capacity by 2050.

“Where solar farms will also significantly reduce greenhouse gas emissions by replacing fossil fuel-based power generation with clean, renewable energy. This will help mitigate climate change and promote a healthier environment for the people of Sabah.”

Source: Borneo Post

ATPC eyes Sabah’s solar farming

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More developers entering the segment

WITH demand for data centres “hotting up” as of late, it’s not surprising to see more property developers getting in on the action.

Earlier this month, Prime Minister Datuk Seri Anwar Ibrahim announced that Malaysia had approved Rm114.7bil worth of investments in data centres and cloud services between 2021 and 2023.

The past few weeks have seen several real estate players announcing land deals for data centre-related ventures.

Just this month, Mah Sing Group Bhd announced its maiden entry into the data centre sector, launching Mah Sing DC Hub@southville City with Bridge Data Centres Malaysia V Sdn Bhd.

The tie-up will jointly develop data centre facilities and infrastructure on a 17.55acre freehold land within the Southville City township in Bangi, Selangor.

Earlier this month as well, Eco World Development Group Bhd (Ecoworld Malaysia) struck a deal to dispose of 123.14 acres of industrial land in Eco Business Park VI in Kulai, Iskandar Malaysia, to Microsoft Payments (M) Sdn Bhd for Rm402.3mil cash, to expand its data centre hub down south.

This month also saw UEM Sunrise Bhd selling two land parcels in Iskandar Puteri, Johor to an undisclosed global data centre player for Rm144.9mil.

Last month, Sime Darby Property Bhd announced its partnership with Pearl Computing Malaysia Sdn Bhd to develop a hyperscale data centre at Elmina Business Park, Selangor.

The 20-year lease, valued at up to Rm2bil, will see the parties developing the data centre on 49 acres within the 1,500 acres Elmina Business Park.

Zerin Properties chief executive officer Previn Singhe acknowledges that the interest in data centres is growing, adding that it was no surprise that numerous developers are “joining in.”

“Data centres are crucial for storing and managing the increasing amount of digital information.

“Yes, I do see more developers getting involved in this trend. It’s a smart move because data centres are becoming an essential part of our digital world.

“As technology continues to grow, the demand for data centres will also rise, offering great opportunities for developers,” he tells Starbizweek.

With the growing popularity in demand for data centres, KGV International Property Consultants executive director Samuel Tan says it’s no surprise that developers are keen to jump on the bandwagon to ride on the “data centre hype.”

“This is especially so for land owners or developers that have huge landbank or newly developed industrial parks.”

Meanwhile, KGV International Property Consultants research head Tan Wee Tiam says the data centre-related land deals are a good way to monetise land and kickstart a development.

“There are practically new transactions every week involving investors looking towards Malaysia, particularly Johor Baru, as a regional data centre hub.”

Strong appeal

For property developers, Previn says the data centre segment offers revenue diversification and steady income streams.

“Data centres offer stable, long-term revenue through leasing agreements with tech companies and other enterprises.”

The high demand for data centres will help ensure steady income streams, says Previn.

“With the surge in cloud computing, ecommerce and big data, there’s a growing and consistent demand for data centre space.”

As technology advances, Previn says data becomes increasingly central to operations across various industries.

“Developers investing in data centres position themselves at the forefront of this technological shift.”

Going into data centre development is also part of a growing sustainability trend, Previn adds.

“Many companies are focusing on sustainable practices and green data centres are in demand. This aligns well with future-focused investment strategies.”

Noteworthy also is that data centre-related deals will offer collaboration opportunities to developers, Previn says.

“Developers can partner with tech giants, telecommunications companies and cloud service providers, fostering strong business relationships and new growth opportunities.

“Moreover, governments often provide incentives for tech infrastructure development, enhancing business prospects.”

Meanwhile, RHB Investment Bank analyst Loong Kok Wen says developers with sizable landbank will mostly benefit from the rising data centre wave.

“We think players with a vast landbank will likely be able to capture opportunities, especially those with land that comes equipped with ready infrastructure and located not far from major cities,” she says in a recent research note.

Loong believes that UEM Sunrise, Sime Darby Property, S P Setia, Mah Sing, Ecoworld Malaysia and AME Elite Consortium Bhd are potential developers that may benefit from demand for data centres, given the location, amenities and infrastructure of their existing landbank.

“As data centres have to be distant from residential and commercial property areas due to strict security reasons, developers may choose to have them set up in their existing industrial parks.”

Loong says recent land transactions by data centre players have certainly set a new pricing benchmark for industrial land nearby.

“We gather that more are entering the fray. More developers may consider co-investing with data centre users or building and leasing shell and core data centre facilities for recurring income.

“Developers may also form a joint venture with a data centre operator for co-location facilities.”

Loong says a stable of data centre facilities would provide monetisation opportunities in the future, given the long-term nature of data centre operations.

Going forward, Previn says the future of the data centre market in Malaysia looks bright.

“Our strategic location in South-east Asia, combined with our advanced infrastructure and growing digital economy, makes Malaysia an attractive place for data centre investments.

“We can expect to see continued growth, with more local and international companies setting up their data centres here.

“This will also create more job opportunities and boost our economy. So, overall, the outlook is very positive.”

Source: The Star

Data centre appeal

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Track record, IBS make group a strong contender

“With the RM1bil total new wins for an industrial warehouse and semiconductor factory announced on June 21, this data centre project brings year-to-date FY25 wins to RM1.3bil.” CGS International Research

IJM Corp Bhd is the latest construction outfit to win a data centre job and it may play catch up to other contractors such as Sunway Construction Group Bhd (Suncon) and Gamuda Bhd, which have been winning more jobs in the data centre space.

IJM announced on Wednesday that it has been awarded its first data centre win, a Rm331.7mil contract to design and construct Block 2 of the Iskandar Puteri Data Centre in Johor, for TM Technology Services Sdn Bhd.

Construction begins from July this year and the project is slated for completion in the third quarter of 2025.

CGS International Research (CGSI Research) said IJM is likely to win more jobs in the data centre sector due to its strong track record in building projects and also its industrialised building system (IBS) plant in Bestari Jaya, Selangor.

The research house added that Suncon may be more selective in its tenders, given the urgency to complete the Sedenak data centre in Johor, while Gamuda’s strategy is to target hyperscalers that value speed of construction.

According to CGSI Research, IJM’S latest contract win is different from Telekom Malaysia Bhd and Singapore Telecommunications Ltd’s announcement on June 18, which was to develop a hyper-connected artificial intelligence-ready data centre campus in Johor with an initial capacity of 64 megawatt (MW) – potentially to be scaled up to 200MW.

The research house said IJM appears to be on track to achieve its RM5bil new order target for the financial year ending March 31, 2025 versus Rm3.7bil in the financial year 2024 (FY24), with a total order book of Rm7.3bil as at June.

“With the Rm1bil total new wins for an industrial warehouse and semiconductor factory announced on June 21, this data centre project brings year-to-date FY25 wins to RM1.3bil.

“Other potential wins include the North Pantai Expressway extension (Rm1bil), civil servant housing project in Nusantara Indonesia (Rm1bil), Penang light rail transit, ART Blue Line in Sarawak and other industrial buildings, data centres and semiconductor factories,” it added.

The research house reiterates its “add” call on the counter with a target price (TP) of RM3.66 as it continues to like IJM as a diversified infrastructure proxy in Malaysia.

Meanwhile, RHB Research estimates around 20% to 30% of IJM’S construction order book comes from industrial jobs.

“In fact, IJM stands to be the contractor with the highest number of industrial job wins (excluding data centres) in the past 12 months compared to other Malaysian large-cap contractors.

“IJM has two factories for industrial concrete piles in Ulu Choh and Senai, Johor, which we view may be utilised for providing concrete piles for the latest data centre job.”

Source: The Star

IJM likely to win more data centre jobs

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Kedah secured the top spot in approved investments among the states for the first quarter (Q1) of 2024 with RM31.3 billion in investments.

Menteri Besar Datuk Seri Muhammad Sanusi Md Nor said the figure was part of the total RM83.7 billion approved investments in Malaysia for Q1 2024.

He said the approved investments in Kedah were for 51 projects, which are expected to create 2,262 jobs.

“Kedah tops the other states with the highest approved investment value, comprising RM30.9 billion in investments in the manufacturing sector and RM327.6 million in investments in the services sector.

“From the total, RM30.6 billion or 97.7 per cent are foreign direct investments (FDI) while the remaining RM656.2 million or 2.3 are domestic investments.

Sanusi said Kedah has large tracts of land that can be developed, positioning the state as a main investment destination.

He added that Prime Minister Datuk Seri Anwar Ibrahim is expected to witness the memoranda of understanding signing ceremony involving four main investors.

“The prime minister is also expected to launch the groundbreaking ceremony for Phase 4A of the Kulim Hi-Tech Park (KHTP),” he said.

Sanusi said the development of Phase 4 of KHTP covering 104 hectares of land was funded by a loan disbursed by the state government.

Source: NST

Kedah tops Q1 2024 with RM31.3 billion in approved investments

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The Digital Ministry said 5,331 companies have been granted Malaysia Digital (MD) status as of March 31, with over 73 per cent of them local firms.

The ministry said these local companies explore and conduct activities in the provision of high-value digital products and services using the latest technologies such as artificial intelligence, blockchain technology, internet of things, cybersecurity, financial technology, and drones.

“Various incentives and benefits are also offered to MD companies to accelerate growth and increase spillover effects to the economy as well as strengthening the country’s digital ecosystem,” the Digital Ministry said in the Dewan Rakyat today in a written reply to V. Ganabatirau (PH-Klang), who asked about the statistics with regard to local companies in the field of information technology from 2020 to 2023, and if there are plans to increase them.

The Digital Ministry, through the Malaysia Digital Economy Corporation, is working to increase the potential and competitiveness of local companies in providing hi-tech products and services that can penetrate global markets via the Gateway Amplify Invest Nurture programme.

“As of March 2024, 300 companies have participated in this programme, recording a cumulative export total of RM11.265 billion,” it said.

Source: Bernama

Over 5,000 firms granted Malaysia Digital status as of March 31

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The country needs to address the challenges faced in developing the right human workforce, particularly the engineering profession as it moves towards the successful execution of the government’s economic plans, namely the New Industrial Master Plan (NIMP) 2030 and the National Semiconductor Strategy (NSS).

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said without the right human capital and the right talent management of human capital, it is difficult for the country to realise its dreams and aspiration to become an industrialised nation.

He said that given the geopolitical environment today, Malaysia is at a sweet spot where industries are converging, and companies are realigning and redefining their supply chains.

“Malaysia is involved with 16 free trade agreements (FTAs), both bilaterally and multilaterally. And in those FTAs, talent is the focus because we want the economic spillover effects to benefit the local communities,” he said in a panel session entitled ‘Strategic Integration of Trade, Talent Management and Industry Policies: Fuelling Economic Growth Through Human Capital Development’ for ‘The Ministers Leading From the Front: Creating A Talent-Driven Economy — Government Policies and Practices’ programme here on Thursday.

Meanwhile, Tengku Zafrul told the media that the government plans to be “agile” and dynamic and to use the “whole of government approach” which involves all the ministries that have engagement sessions with industry.

“With this approach, I am optimistic that the country will be able to speed up efforts to train and produce the necessary engineers,” he said.

Although Malaysia is not producing that many (engineers), Tengku Zafrul said there have been improvements in the (number of) enrolments according to the Higher Education Ministry.

“At least it is moving in the right direction. There is no quick fix for this,” said Tengku Zafrul.

He said it is important to destigmatise the traditional and conventional view on technical and vocational education and training (TVET) especially to parents, families and guardians, and stressed that TVET is equally important and not secondary to the academic track.

“However, I think this is slowly changing. Even when looking at developed countries, TVET is a crucial stream towards industrialisation, for example in Germany and many other countries.

“We must ‘widen the talent funnel’, which must begin at primary school. We need to build a robust pipeline of future-ready industrial workforce primed for embracing innovation in key technologies,” he said.

In the next five to 10 years, Malaysia is targeting 60,000 skilled technology/engineering-based talents to attract high-quality investments that creates higher-paying jobs.

Source: Bernama

Malaysia needs to address workforce challenges to execute economic plans — Tengku Zafrul

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Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz today expressed hope that German Vocational Education and Training (TVET), or German Dual Vocational Training, will be intensified to address the talent shortage in the semiconductor sector.

He said the government has agreed to provide RM25 billion in fiscal support to operationalise the National Semiconductor Strategy (NSS).

This includes a RM1.2 billion allocation to train and upskill 60,000 high-skilled Malaysian engineers to tackle the talent shortage in the sector.

“Apart from the Ministry of Investment, Trade and Industry’s joint efforts with the Ministries of Human Resources and Higher Education, we welcome the Malaysia-German Chamber of Commerce and Industry’s (MGCC) tireless efforts in coordinating German TVET or German Dual Vocational Training.

“Given the hundreds of German companies in Malaysia, I hope this highly regarded programme can be intensified to continue upskilling the next generation of Malaysian workers within your organisations, particularly in the semiconductor industry,” he said at the MGCC annual general meeting today.

Also present were the Ambassador of Germany to Malaysia Dr Peter Blomeyer, MGCC executive director Jan Noether, MGCC president Tim Groth, and MGCC vice president Geetha Kandiah.

Tengku Zafrul also proposed a Malaysian-German partnership in digitalisation.

“One exciting area is digitising the halal ecosystem and halal economy. Although Malaysia has made significant strides and built its leadership in the halal industry, there is still much more we can do beyond innovating the next award-winning sukuk model,” he said.

He said while German companies that are strong in digitalisation can support Malaysia in using technologies such as blockchain to secure the integrity of the halal supply chain, Malaysia can offer its expertise, infrastructure, and robust halal regulatory framework to serve the global halal market, which is estimated to reach US$5 trillion by 2030.

He mentioned that the European Union-Malaysia Free Trade Agreement (FTA) is still under consideration, saying, “We are looking at the terms.”

Furthermore, Malaysia has ratified and implemented two of the world’s largest regional free trade agreements: the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

“Both present expanded prospects not only for our key trading partners under the agreements but also for foreign investors, including German companies, in Malaysia,” he said, adding that being part of these trade pacts allows Malaysia to explore new levels of trade cooperation.

In addition to several FTAs in the pipeline to be concluded this year, he said, “Malaysia is always ready to collaborate with Germany on high-quality projects that will mutually benefit both our countries and industries.”

Source: Bernama

German TVET, RM1.2b NSS funding to address industrial, semiconductor talent crunch, says Tengku Zafrul

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Higher investments and exports will support Malaysia’s economic growth though consumer spending is likely to stay subdued, Australia and New Zealand Banking Group Ltd (ANZ) said.

Gross fixed capital formation, capital goods imports and rising manufacturing productions point to more robust investment activity in 2024, ANZ said in its quarterly outlook note. New export orders and intermediate goods imports have also risen, indicating that exports are likely to recover further, it said.

Uncertainties surrounding the petrol subsidy rationalisation and its impact on household purchasing power will impede consumption spending in the near term, ANZ flagged. ANZ’s forecast is for Malaysia’s economic growth to come in at 4.2% this year.

That compares to the official projection of 4%-5% growth this year. Malaysia is betting on exports recovery and higher tourist arrivals to bolster consumer spending and business investments. In the first quarter, gross domestic product grew 4.2% year-on-year.

Earlier this month, the government announced withdrawal of the blanket diesel subsidy and floated retail diesel prices in Peninsular Malaysia. The subsidy rationalisation for RON95, the most widely-used petrol variant, is expected to follow suit.

On its own, the adjustment in diesel prices will have little impact on the inflation outlook as only 1% of personal transport vehicles run on diesel, while the second-round effects should also be “limited”, ANZ noted.

The rationaliszation of petrol subsidy, however, will have “a more substantial impact” on overall inflation, ANZ said. It expects headline consumer price increase to average 2.9% in 2024 and 2.7% in 2025.

Still, “timely implementation of targeted subsidies for the RON95 fuel will be necessary to avoid the risk of a fiscal slippage”, ANZ stressed.

Malaysia’s central bank, meanwhile, will see any spike in inflation as a one-time structural adjustment in prices, which would not warrant any monetary policy action, ANZ said.

Bank Negara Malaysia (BNM) will likely keep the overnight policy rate unchanged at 3.00% till the end of 2024, according to ANZ. “There is no urgency to cut rates with real rates at low levels and wide negative spread of local rates over the USD interest rates,” it added.

BNM has kept the benchmark rate unchanged since it was last raised in May 2023 by 25 basis points.

Source: The Edge Malaysia

Higher investments, exports to support Malaysia’s growth amid tepid consumer spending — ANZ

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THE manufacturing sector, Malaysia’s third-largest carbon emitter, is at a pivotal point, requiring transformational changes to cut its greenhouse gas emissions.

Recognising this need, the government is promoting green manufacturing through the Investment, Trade and Industry Ministry’s National Industry Environmental, Social and Governance (i-ESG) framework.

This initiative is a cornerstone of the New Industrial Master Plan 2030, which sets a strategic roadmap towards sustainability and achieving net-zero emissions by 2030.

According to Lenovo Group Ltd director of Greater Asia Pacific region services sales Ronnie Lee, the i-ESG framework integrates environmental, social, and governance (ESG) principles to align industrial growth with global sustainability standards.

“It emphasises implementing eco-friendly practices, enhancing energy efficiency, reducing waste and improving the overall environmental footprint of manufacturing operations. Digitalisation is central to this transition,” he said.

BENEFITS OF DIGITISING MANUFACTURING

Adopting technology-enabled sustainability practices in manufacturing significantly contributes to achieving sustainability goals.

“Digitised operations allow manufacturers to monitor and optimise energy consumption, reduce waste and enhance resource efficiency.

“Meanwhile, smart sensors and IoT (Internet of Things) devices provide real-time data on equipment performance and energy use, facilitating predictive maintenance, preventing equipment failures and reducing downtime, thus contributing to energy savings and operational efficiency,” said Lee.

He said digitalisation enhances supply chain resilience by helping manufacturers anticipate disruptions, optimise inventory management and streamline logistics.

“Digital tools and advanced analytics predict demand fluctuations, enabling proactive adjustments to production schedules and inventory levels. This reduces the risk of overproduction and waste, making supply chains more responsive and resilient to changes and unexpected events.”

Additionally, smart manufacturing advances sustainable product design and resource management.

For instance, 3D printing minimises material usage through its

layered construction method, which utilises precisely the required amount of material. It supports on-demand production to reduce inventory waste and enables localised production to reduce transportation emissions.

Many 3D printers use recyclable materials to lower environmental impact and energy consumption.

CHALLENGES

Despite the evident benefits, Lee said the transition to smart manufacturing in Malaysia faces considerable resistance.

“A staggering 80 per cent of organisations are hesitant to adopt smart manufacturing technologies due to a lack of awareness about the tangible benefits and perceived financial and technical barriers,” he said.

Lee said many leaders are intimidated by the upfront costs associated with digitalisation, including investment in new technologies and workforce training. Additionally, there is a lack of understanding of how these technologies integrate into existing processes and the longterm return on investment (ROI).

“Overcoming this resistance requires a concerted effort to educate and support organisations, demonstrating the clear link between digital investments and enhanced sustainability and profitability,” he said.

DECIDING ON TECHNOLOGY INVESTMENTS

When considering technology investments, Lee said organisations

must evaluate several key factors:

1. Alignment with strategic goals: Technology investments should align with the organisation’s long-term strategic goals, particularly those regarding sustainability and efficiency.

2. Scalability and flexibility:

Any chosen solution should be scalable to accommodate future growth and adaptable to evolving business needs. Flexibility is crucial to ensure seamless integration with existing systems, allowing organisations to expand their capabilities without significant disruptions.

3. Cost-benefit analysis:

A thorough cost-benefit analysis should be conducted to evaluate the potential return on investment (ROI), considering both financial returns and sustainability

gains. This comprehensive view helps manufacturers make informed decisions that balance economic and environmental benefits.

4. Vendor support and expertise: Partnering with technology providers who offer comprehensive support and possess a proven track record of successful implementations is crucial. Such vendors can provide the expertise and resources necessary to navigate the complexities of new technology adoption, ensuring smooth deployment and ongoing operational success.

By embracing digitalisation and aligning with the i-ESG framework, the manufacturing sector can make significant strides towards reducing its carbon footprint and achieving its long-term sustainability goals.

Source: NST

How digitalisation drives green manufacturing

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Premier says move will draw investments, see GDP growth

Sarawak has set its sights on establishing itself as a semiconductor highvalue-added hub in Southeast Asia by 2030, Datuk Patinggi Tan Sri Abang Johari Tun Openg said.

The Premier said collaborations with United Kingdom companies strategically align with this aspiration which would lead to an increase in investments and the state’s gross domestic product.

Towards realising this, he said Sarawak will unveil its Holistic Sustainability and Circular Economy Strategy by the end of this year to solidify state-owned SMD Semiconductor Sdn Bhd’s position globally and establish new industry standards in sustainable business practices.

“I recently witnessed the exchange of a Memorandum of Understanding (MoU) between SMD Semiconductor and Compound Semiconductor Application Catapult at the House of Commons in the UK to promote collaboration in the development of advanced semiconductor chips.

“SMD Semiconductor will be setting up a research and development office in the United Kingdom to facilitate its research and commercialisation activities.

“The areas of cooperation and collaboration include the development of new compound semiconductor chips tailored for automotive and space applications,” he said when launching SMD Semiconductor’s chip design centre and academy at La Promenade Mall here yesterday.

He said the MoU also entails talent development initiatives encompassing academic, industry and governmental partnerships spanning the UK, Malaysia and Sarawak in particular, to nurture skilled professionals in the semiconductor sector.

He added that SMD Semiconductor has been granted a 10-acre plot in Samajaya Free Industrial Zone to expand its semiconductor operations, addressing the increasing importance of advanced chip packaging technologies for highperformance semiconductor chips.

“For Sarawak to participate and capture the attention of global industry leaders, SMD Semiconductor must position itself in a region with abundant expertise, vibrant innovation and a substantial market presence.

“It is crucial for the company to assemble a team of extraordinary individuals and top-tier engineers for the development of advanced semiconductor technologies,” he said.

He added that he was supportive of SMD Semiconductor working with i-CATS University College in introducing aerospace modules into the curriculum to pave the way for students to advance their career in the high-tech aerospace industry.

“I hope SMD Semiconductor can collaborate with private partners and collaborate on the research and the development of a Sarawakowned chip to be incorporated into satellites.

“The collaboration will advance our semiconductor technology and significantly elevate Sarawak’s capabilities,” he said.

Meanwhile, Education, Innovation and Talent Development Minister Dato Sri Roland Sagah Wee Inn said a batch of 15 trainees will conclude their six-month training programme next month as part of a collaboration between SMD Semiconductor and the Centre for Technology Excellence Sarawak (Centexs).

The trainees would then be employed by SMD Semiconductor and its partners with a starting salary of RM4,000 per month, he said.

Sagah highlighted that SMD Semiconductor has grown from just three engineers to its current workforce of 30 engineers, and it is projected to reach 50 engineers by this year-end.

Following the launch of the chip design centre, SMD Semiconductor and the Land and Survey Department inked an MoU for the development of an electronic tracking embedded system.

According to Abang Johari, this collaboration has the potential to drive innovative solutions in various applications, including land marking, land area calculation, slope detection and geo-positioning.

Among those present yesterday were Deputy Premier Datuk Amar Awang Tengah Ali Hasan, SMD Semiconductor chief executive officer Shariman Jamil, and Land and Survey Department director Awang Zamhari Awang Mahmood.

It is crucial… to assemble a team of extraordinary individuals and top-tier engineers for the development of advanced semiconductor technologies.

Source: Borneo Post

Positioning Sarawak as semiconductor hub

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Malaysian businesses, especially small and medium enterprises (SMEs), should invest in cloud infrastructure and adopt a digital mindset to compete globally, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

He said the adoption of cloud technologies had led to improvements in productivity and creation of high-skilled jobs in the country.

“We have seen a surge in efficiency and innovation as industries leverage cloud-based solutions to streamline their operations, automate tasks and gain valuable insights from data,” he said at Google’s Cloud Day Malaysia yesterday.

For instance, the manufacturing sector is using cloud technologies to optimise supply chains, monitor equipment performance and enhance production efficiency.

Similarly, the healthcare industry is using them to manage electronic medical records and facilitate telemedicine services, among others.

Zafrul said these advancements not only boosted productivity through data-driven insights but also created job opportunities in fields such as data analytics, software development and cloud architecture.

On the cloud’s scalability and agility, he said it enabled homegrown startups to scale up and expand their business’ reach beyond Malaysia.

“Smaller enterprises can now leverage resources previously available only to larger corporations.”

Zafrul said Malaysia had started various projects to create 3,000 smart factories and establish Malaysia as a hub for generative artificial intelligence.

These projects will require a strong cloud-based enabler and this was where Google, as one of the global companies developing and promoting cutting-edge cloud-based technologies, could play a big role.

“Google is helping Malaysia realise key missions under its industrial transformation agenda, including helping businesses and industries tech up, automate, digitalise and robotise their operations.

“From the ministry’s perspective, the tech investments that we target and particularly favour are the ones that will promote inclusive socio-economic development.”

He said Google’s recent announcement of a US$2 billion data centre investment was a testament to Malaysia’s competitiveness, ease of doing business and growing importance as a regional hub for digital innovation.

“There are only 11 countries in the world where Google has data centre investments of this scale. Regardless of how Malaysia’s global competitiveness was ranked, which was based on a snapshot of time, the proof of the pudding is in the eating,” he added.

Cloud Day Malaysia saw 479 participants coming together to exchange ideas, forge new partnerships and experience first-hand the transformational potential of Cloud and AI technology.

At the event, companies such as AirAsia Move, Gamuda Bhd and Bank Muamalat showcased their involvement in AI innovation.

Source: NST

Zafrul: Invest in cloud infrastructure, adopt digital mindset

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ENERtec Asia 2024, a threeday conference commencing today, aims to foster collaboration and knowledge exchange to address escalating air pollution and climate change caused by fossil fuel use, to meet the region’s rising energy demands.

Chairman of ENERtec Asia Tan Sri Abd Rahman Mamat said attendees will have unique opportunities to gain actionable insights, explore cutting-edge innovations and forge valuable partnerships to propel their organisations towards a low-carbon future.

“With over 300 exhibitors showcasing the most advanced solutions in renewable energy, cleantech, energy efficiency, and electric mobility, this is a true celebration of innovation and progress,” he said in his keynote address at the opening ceremony of ENERtec Asia 2024.

ENERtec Asia is organised by Informa Markets Malaysia Sdn Bhd, co-hosted by The Electrical and Electronics Association of Malaysia and in partnership with the Energy Industries Council.

Meanwhile, Sarawak’s Deputy Minister of Energy and Environmental Sustainability, Datuk Hazland Abang Hipni in his keynote address stated that ENERtec Asia provided a comprehensive platform to unite industry leaders, policymakers and stakeholders in pursuing a sustainable and secure energy landscape.

In support of the government’s commitment to the Paris Agreement, Hazland said the Sarawak state government is actively striving for a 45 per cent reduction in greenhouse gas emissions intensity relative to GDP by 2030.

“Our Ministry wholeheartedly embraces the government’s goal of achieving 31 per cent renewable energy in the national installed capacity mix by 2025, and 40 per cent by 2035.

“We are implementing a range of policies and initiatives to meet these targets, including expanding large-scale solar projects, promoting biomass and biogas energy generation, developing new hydroelectric capacity and exploring emerging technologies, such as wind and ocean energy,” he said.

He also emphasised that his ministry is implementing the National Energy Efficiency Action Plan in alignment with the government’s focus on energy efficiency.

“This plan aims to reduce electricity consumption by eight per cent across the commercial, industrial, and domestic sectors by 2025.

“We are working closely with other ministries to achieve the National Automotive Policy 2020 target of 15 per cent total industry volume for electric vehicles by 2030,” he added.

Source: Bernama

ENERtec Asia 2024 drives regional push for sustainable energy future

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The initiative to elevate production up the value chain will position Malaysia at the forefront of the semiconductor industry, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

He said this move presents an opportunity for Malaysia to play a pivotal role in the global supply chain, especially amid the trade tensions between the US and China as companies are reconfiguring their supply chains.

“The semiconductor industry significantly influences the global supply chain. We have observed the realignment and redefinition of supply chains.

“As companies strive to become more competitive and secure their supply lines, the semiconductor industry is poised for continued growth,“ he said at the Bursa Malaysia-Hong Leong Investment Bank Stratum Focus Series XVII on “Semicon: Light at the End of the Tunnel?” today.

Tengku Zafrul said Malaysia can and will leverage its mature industrial infrastructure with good connectivity, rule of law, strategic location and ease of doing business to further integrate ourselves into the global semiconductor value chain.

”This is a crucial moment for Malaysia, and we must seize this moment to ensure resilience and growth in our electrical and electronics sector,” he said.

Furthermore, he said, transitioning to advanced packaging in the semiconductor industry demands substantial capital expenditure, which poses a challenge given the current fiscal constraints.

The move, while promising for technological advancement, would necessitate significant government support and fiscal backing.

“Advanced packaging requires very high capex, so this will also likely require a lot of support, which we may not have the fiscal space at this point in time. Hence, we need to be aggressive, but we need to be at the same time using our competitive advantage,” he said.

The Asia-Pacific semiconductor market size was estimated at almost US$288 billion in 2023 and is forecast to reach US$612 billion by 2033, growing at a compound annual growth rate of 7.83% from 2024 to 2033.

The global semiconductor industry is expected to reach US$1 trillion by 2030.

Tengku Zafrul said the government is confident with the strong foundation in the semiconductor industry, Malaysia can be a true semiconductor powerhouse not just in assembly, but also in innovation and design.

At a separate function today, Tengku Zafrul commented that Google’s latest investment highlights Malaysia’s competitiveness, ease of doing business and growing importance as a regional hub for digital innovation.

He said the investment recognises the nation’s potential to lead the region’s digital economy.

“This is particularly pertinent as Malaysia intends to strongly promote the digital economy regionally when we take up the Asean chairmanship next year.

“Google’s presence will not only create thousands of high-skilled jobs but also accelerate the digital transformation of our businesses and public sector, strengthening our tech leadership and supporting Malaysia’s positioning as a tech hub in Southeast Asia,” he said at Google Cloud Malaysia Day.

Tengku Zafrul said this investment serves as a strong foundation for Malaysia to embrace the cloud as a springboard for its operations and business innovation, unlocking opportunities and contributing to the growth and prosperity of the Malaysian economy.

He said digitalisation and artificial intelligence (AI), among others, are key to shaping a sustainable and inclusive socio-economic future, and the cloud is our gateway to that promising horizon.

He added that the Madani government recognises the transformative power of digitalisation, cloud computing and AI, making them key drivers in our economic roadmaps, such as the New Industrial Master Plan 2030 (NIMP 2030).

“We understand that investing in cloud infrastructure and fostering a digital-first mindset is essential for creating a sustainable and prosperous future for our nation,” he said.

Tengku Zafrul said the positive and deep impact of cloud technologies on the Malaysian economy is clear.

It boosts productivity and creates high-skilled jobs, he added.

Malaysia has seen a surge in efficiency and innovation as industries leverage cloud-based solutions to streamline operations, automate tasks and gain valuable insights from data.

The manufacturing sector, in particular, has embraced cloud-enabled technologies to optimise supply chains, monitor equipment performance and improve production efficiency.

“The healthcare industry has also seen significant benefits, with hospitals leveraging cloud technology to improve patient care, manage electronic medical records and facilitate telemedicine services.

“These advancements not only drive productivity by leveraging data-driven insights but also create demand for high-skilled professionals in areas like data analytics, software development and cloud architecture,” said Tengku Zafrul.

Source: Bernama

Initiative to move up value chain will put Malaysia at forefront of semicon industry: Tengku Zafrul

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After Malaysia’s approved investment grew 13% in the first quarter (1Q2024), the country’s approved investment growth for 2024 should at least match its annual gross domestic product (GDP) growth, according to the Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

Malaysia achieved a record year in 2023, with approved investments totalling RM329.5 billion, up 23% from RM267.7 billion in 2022. Of 2023’s tally, 57.2% of the approved investments came from foreign capital and 42.8% from domestic investments.

The official forecast for GDP growth this year is 4% to 5%.

“We are still working on this year’s [approved investment] target. The number that Malaysian Investment Development Authority (Mida) had given me, I cannot accept at the moment because I think it is low balling,” Zafrul said at the Stratum Focus Series, jointly held by Bursa Malaysia and Hong Leong Investment Bank (HLIB) on Wednesday.

“With the first quarter (1Q2024) approved investment already up 13%, how can it be flat? To me, there should be at least a positive correlation with the GDP growth. This year’s GDP growth is between 4% and 5%, so approved investment should grow at least one time that rate.

“Of course, we can see from the pipeline of projects and investments, [that] it looks very strong,” he added.

It was reported that Malaysia recorded approved investment amounting to RM83.7 billion in the first three months of 2024 (1Q2024), marking a 13% increase from the RM74.1 billion recorded in the previous year’s corresponding period.

Source: The Edge Malaysia

Zafrul: Malaysia’s 2024 approved investment growth should at least match its GDP growth after 1Q’s 13% jump

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The Digital Investment Office (DIO) has approved a total of RM161.97 billion of digital investments from the period of its establishment in 2021 until March 2024, according to the Malaysian Investment Development Authority (Mida).

Mida deputy chief executive officer of investment promotion and facilitation Sivasuriyamoorthy Sundara Raja said this milestone has already surpassed the RM70 billion digitalisation investment target set as part of the Malaysia Digital Economy Blueprint (MyDigital) strategies for 2025.

He noted that one of the areas in which the country has excelled in attracting investments is in hyperscale data centres.

“Malaysia has thrived largely due to its early adoption of cutting-edge technologies and innovative business models that drive broader growth.

“The digital economy has enabled companies to gain access to new markets and opened multiple possibilities to trade by facilitating the seamless flow of goods, services, and data across borders,” he said during a keynote address at the Asean Business Forum 2024 here Wednesday.

According to Sivasuriyamoorthy, in the economic space, Malaysia and Singapore have substantively concluded a framework of cooperation in the digital economy and green economy.

He said the digital economy framework will further empower businesses to digitally integrate their operations globally, hence enhancing economic competitiveness.

“The country is implementing pragmatic investment strategies and criteria for institutions and economies, including rapid technological breakthroughs and broad digitalisation.

“This is key to our continued relevance as an international hub for transport, business and finance,” he added.

Source: Bernama

MIDA: RM162b in digital investments approved as of March 2024

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Malaysia achieved foreign direct investment (FDI) net inflow of RM40.4 billion in 2023 while direct investment abroad (DIA) totalled RM40.6 billion according to the Department of Statistics Malaysia.

Chief Statistician of Malaysia Datuk Seri Dr Mohd Uzir Mahidin said the FDI net inflow in 2023 decreased from RM75.4 billion in the previous year mainly due to equity and investment fund shares, reflecting the global economic slowdown.

“This was in line with Unctad’s 2024 Global Investment Trends Monitor report which highlighted that the FDI flows to developing countries declined approximately 9%, totalling US$841 billion in 2023. Notably, developing Asia dropped around 12% to US$ 584 billion, with Asean’s FDI decreasing about 16%,” he added.

However, the cumulative value of foreign investment, known as the FDI position rose to RM926 billion at the end of 2023, making up 50.8% (2022: 49.0%) of gross domestic product (GDP), primarily attributed to non-transaction categories.

Meanwhile, DIA net outlow fell from RM62.8 billion in the preceding year, while the stock increased to RM664.4 billion, representing 36.4% (2022: 33.8%) of GDP.

Looking at the sectoral distribution, the services sector emerged as the primary recipient of FDI, with a net inflow of RM35.4 billion, surpassing the manufacturing sector. Within services, information and communication contributed the highest share, which is in line with emerging digital global business and data centre related activities, followed by the financial and insurance/takaful sub-sector.

The manufacturing sector remained the highest contributor to total income despite lower net inflow, generating RM41.9 billion, largely driven by the electrical, transport equipment, and other manufacturing sub-sectors. Cumulatively, both services and manufacturing sectors significant value in position, with RM468.2 billion and RM391.3 billion, respectively.

Geographically, Asia remained the dominant source of FDI, contributing RM54.3 billion in 2023 with a position valued at RM508.4 billion. Leading investors from the region included Singapore, Hong Kong and Japan. The Americas, particularly the United States, earned the highest income from FDI, totalling RM41.4 billion.

On Malaysia’s investments abroad, Mohd Uzir said, “The DIA net outflows were mostly contributed by the services sector with a value of RM34.5 billion, primarily in financial and insurance/takaful activities and utilities. This sector also generated the highest income at RM23.9 billion, followed by mining and quarrying RM10.7 billion.

Seemingly, the services sector remained the primary contributor of DIA in 2023 by registering the accumulated position at RM461.1 billion, trailed by mining and quarrying at RM80.5 billion and manufacturing at RM60 billion.

In terms of region, Asia remained the leading destination of DIA flows in 2023 with RM29.9 billion, particularly to Singapore and Indonesia.

The highest income was also generated from Asia, amounting to RM24 billion, especially from Singapore, Indonesia and Vietnam. Hence, the DIA position of Asia stood at RM365.1 billion at the end of 2023, the highest contributor among other regions. The Americas was the second largest contributor for DIA outflows and income, both amounting to RM7.5 billion, with a total position of RM156.2 billion.

On average, the return on investment for FDI companies in 2023 decreased to 10 sen from 12 sen in the previous year for every RM1 of investment. Concurrently, Malaysian companies received 6 sen for every RM1 of investment made abroad.

Source: Bernama

Malaysia’s FDI inflow at RM40.4b DIA outflow at RM40.6b in 2023

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Google’s latest investment highlights Malaysia’s competitiveness, ease of doing business and growing importance as a regional hub for digital innovation, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the investment acknowledges the nation’s potential to lead the region’s digital economy.

“This is particularly pertinent as Malaysia intends to strongly promote the digital economy regionally when we take up the Asean chairmanship next year.

He said digitalisation and artificial intelligence (AI), among others, are key to shaping a sustainable and inclusive socio-economic future, and that the cloud is our gateway to that promising horizon.

“We understand investing in cloud infrastructure and fostering a digital-first mindset is essential for creating a sustainable and prosperous future for our nation,” he said.

Tengku Zafrul said the positive and deep impact of cloud technologies on the Malaysian economy is clear.

It boosts productivity and creates high-skilled jobs, he said.

Malaysia has seen a surge in efficiency and innovation as industries leverage cloud-based solutions to streamline operations, automate tasks and gain valuable insights from data.

The manufacturing sector, in particular, has embraced cloud-enabled technologies to optimise supply chains, monitor equipment performance and improve production efficiency.

Source: Bernama

Google’s investment testament to Malaysia’s competitiveness — Tengku Zafrul

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There is potential for approved investments this year to exceed last year’s RM329.5 billion given the positive data from the first quarter of 2024, Minister of Investment, Trade and Industry Datuk Seri Tengku Zafrul Abdul Aziz said today.

Malaysia recorded RM83.7 billion in approved investments across various sectors in the first quarter, representing a 13 per cent increase from RM74.1 billion in the same period last year.

“We can see from the pipeline of projects. It looks very strong. Some are approved and some are yet to be approved. We must make sure those investments are approved as soon as possible,” he said, adding that some are pending the local council’s approval, such as the water sector.

“So, we need to push through to get better numbers,” said Tengku Zafrul at the Bursa Malaysia-Hong Leong Investment Bank Stratum Focus Series XVII “SEMICON: Light at the end of the tunnel?” event today.

In 2023, Malaysia recorded a historic high of RM329.5 billion in approved investments, marking a 23 per cent increase from RM267.7 billion in 2022. Of the 2023 total, 57.2 per cent came from foreign investments, while 42.8 per cent came from domestic sources.

“This year’s GDP (Gross Domestic Product) growth is between four per cent and five per cent, so approved investment should grow at least one time that rate,” he said.

source: Bernama

Strong investment pipeline expected in Malaysia for 2024, says Tengku Zafrul

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The Malaysian Investment Development Authority (MIDA) and the Malaysian Plastics Manufacturers Association (MPMA) are working closely to drive industry collaboration and understand the demand and supply of recycled plastic resources, which are crucial for many industry players in their decarbonisation efforts.

MIDA said in a statement today that the ongoing collaboration between MIDA and MPMA is set to continue driving Malaysia’s advancements in the plastics industry, ensuring sustained progress and innovation.

MIDA chief executive officer Sikh Shamsul Ibrahim Sikh Abdul Majid said the growth and transformation of the plastics industry in Malaysia are remarkable, showcasing the nation’s commitment to innovation and sustainability.

“As we advance towards a circular economy, we see a significant increase in recycling activities, creating new markets for advanced recycling technologies.

“Our continued progress in this sector is a testament to Malaysia’s dedication to environmental stewardship and economic growth. Malaysia is committed to achieving net zero carbon by 2050,” he said in the statement.

Meanwhile, MPMA president CC Cheah said the main challenge facing the industry is that most of the plastics are disposed after use.

“MPMA has recently proposed a Plastics Neutrality Masterplan which provides thought leadership to drive towards zero plastics to landfills by 2050. In Malaysia, achieving plastics circularity and neutrality poses several formidable challenges.

“The masterplan addresses the challenges by promoting a multifaceted approach, involving policy reforms, investments in infrastructure, public education campaigns and collaboration among stakeholders across the plastics value chain,” he said.

Cheah also said that the masterplan reinforces the industry’s commitment to address concerns related to plastics, by making plastics circular, driving lifecycle emissions to net zero, and fostering the sustainable use of plastics.

MIDA and MPMA are co-organising the MIDA-MPMA Conference on Government Facilitation and Assistance for a Circular and Low Carbon Economy at Avante Hotel, Petaling Jaya today.

With almost 100 participants, the one-day conference was successfully organised to provide an insight into various government policies, facilitations and assistance for the manufacturing sector, specifically the plastics industry.

The conference featured sessions by speakers from the Ministry of Investment, Trade and Industry (MITI), Ministry of Economy, MIDA, Malaysia External Trade Development Corporation (MATRADE), Bursa Carbon Exchange, Alliance Bank and Argus Media.

Source: Bernama

MIDA, MPMA collaborate in plastic recycling efforts

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TWO ministries are set to hold discussions to enhance the logistics infrastructure, particularly at airports, to support the export movements of the semiconductor industry.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said his ministry and the Transport Ministry will explore ways to do so, with air transport being key to the industry.

“About 90% of semiconductor exports are transported via air, but land transport is still necessary to reach the airports,” he said.

Citing Penang’s airport for the challenges it faces in this sector, he said: “Some airlines have indicated their willingness to send Boeing 777 aircraft. Unfortunately, at the moment, the 777 cannot land in Penang in terms of cargo capacity.”

Tengku Zafrul also said there are plans for other airports, including Kuala Lumpur International Airport and Johor’s Senai Airport.

“There are proposals to expand our airports such as in Senai. We will also discuss this with the Transport Minister because, under the National Semiconductor Strategy (NSS), logistics is a crucial issue that we need to address,” he told the Dewan Rakyat yesterday.

He was responding to a question from Paya Besar MP Datuk Mohd Shahar Abdullah of Barisan Nasional, about Malaysia’s reliance on air cargo for semiconductor exports compared with railway logistics, given that 95% of semiconductor exports in Malaysia rely on air cargo.

Tengku Zafrul said Singapore has a significant advantage due to its more efficient infrastructure, especially in high-tech sectors.

He said global political tensions, such as the United States-china trade war and the Russia-ukraine crisis, have had an impact on Malaysia’s semiconductor industry.

“These conflicts indirectly affect our semiconductor industry. However, they also present opportunities for Asean and Malaysia as multinational companies diversify their locations,” he added.

Tengku Zafrul noted that companies like Intel and Globalfoundries have invested in Malaysia to diversify their supply chains.

“Other companies in the E&E (electrical and electronics) sector like Texas Instruments, Ericsson and Bosch are also diversifying their supply chains here,” he added.

He said the government is committed to ensuring continued investments in the E&E industry and to introducing the NSS, which outlines Malaysia’s plans to become a major semiconductor hub over the next 10 years.

Prime Minister Datuk Seri Anwar Ibrahim has said that under the NSS launched in April, Putrajaya aims to establish at least 10 Malaysian companies in design and advanced packaging, each generating revenue of between Rm1bil and Rm4.7bil.

He also said Malaysia intends to attract Rm500bil in investments for integrated circuit design, advanced packaging and manufacturing equipment for semiconductor chips.

Source: The Star

Govt to boost chips export logistics

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The economic partnership between the United States (US) and Malaysia has led to many shared accomplishments in the last 50 years, said US Ambassador to Malaysia, Edgard D. Kagan.

The ambassador said that in his keynote address at the 47th annual general meeting of the American Malaysian Chamber of Commerce (AMCHAM) today, Prime Minister Datuk Seri Anwar Ibrahim highlighted that US investments are the leading source of foreign direct investment (FDI) in Malaysia.

“Not only do US investments support Malaysia’s bottom line, but their commitments to training and upskilling Malaysian workers and developing impressive corporate social responsibility programmes underscore US-Malaysia shared ties and enduring values.

“We are looking forward to celebrating the opportunities that lie ahead,” he said in his official X.com (formerly Twitter) posting today (June 25).

Source: Bernama

US Ambassador lauds US-Malaysia economic partnership

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Ann Joo Resources Bhd’s recent contract win for the design and construction of electrification works for the East Coast Rail Link (ECRL) feeder stations is seen as a positive step, as it marks Ann Joo’s entry into the utility-infrastructure sector.

TA Research, which views the job win positively, said this move marks Ann Joo’s first step into vertical expansion, which would complement its existing core operations.

“Ann Joo is on the verge of entering the utility-infrastructure sector to capitalise on the increasing demand for electricity, driven by robust population growth and rising foreign direct investment in the data centre industry,” the research house noted.

Last week, Ann Joo, together with its partner PT Lumintu Insan Mandiri, secured a contract valued at Rm297.9mil from Tenaga Switchgear Sdn Bhd, a subsidiary of Tenaga Nasional Bhd (TNB).

Key components of the project include a 132 kilovolt switching station, overhead transmission lines, underground cable installation and associated work for the ECRL feeder stations.

The project is expected to be completed by May 31, 2026.

TA Research highlighted that partnering with PT Lumintu, an Indonesiabased company specialising in engineering, procurement and project management services, will enable Ann Joo to expedite its diversification process and better position itself for domestic utility-infrastructure projects.

The research firm believes Ann Joo’s venture into the sector aligns well with TNB’S indicative capital expenditure of about Rm15bil annually for upgrading the country’s power grid, as outlined in the New Energy Transition Roadmap (NETR).

“This development will stimulate demand for steel products, as more steel-based wiring and cabling will be required to support the grid upgrades,” it added.

Last month, Ann Joo Steel Bhd, a subsidiary of Ann Joo Resources, and Solarvest Holdings Bhd, a leading clean-energy expert, successfully completed the installation of a 3.3 megawatt-peak rooftop solar photovoltaic system at AJS’ manufacturing plant in Seberang Perai, Penang.

TA Research said the partnership leverages PT Lumintu’s construction expertise and allows Ann Joo to internalise its steel supply chain, thereby strengthening its market position.

Despite the positive outlook, TA Research has maintained their earnings forecasts, pending further details on the consortium’s shareholding structure.

Following the recent contract win, TA Research revised its target price-to-earnings ratio from 11 times to 12 times, resulting in a new target price of RM1.64 a share.

The research house said it believes the valuation is fair, considering Ann Joo’s potential as a key supplier of steel materials for the Penang light rail transport project, supported by its cost competitiveness from its steel-making plant in Prai, Penang.

Moreover, it said the increasing construction activity, due to the revitalisation of the property sector, is driving higher demand for steel products.

Additionally, the upgrading of the power grid, in line with the government’s energy goals, further boosts demand for steel.

Source: The Star

Positive views on Ann Joo’s expansion into infrastructure

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