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Keyto launches Penang advanced fluid technology plant

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Keyto MY Sdn Bhd, a subsidiary of China’s Shenzhen Keyto Fluid Technology Co Ltd, has inaugurated its advanced fluid technology manufacturing plant in Batu Kawan, Penang.

The facility, which is projected to generate a revenue of RM65mil over the next three years, will be Keyto’s first overseas manufacturing plant, located in South-East Asia.

The new 3,540 sq m manufacturing facility will produce fluid management systems and precision components vital for medical devices, life science instruments and environmental monitoring.

The first phase of the facility will focus on manufacturing a range of fluid management solutions, including high-performance pumps, valves and fluid systems.

Malaysian Investment Development Authority chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the investment will attract additional foreign investments and foster innovation.

The facility will also create high-quality job opportunities for Malaysians and strengthen the country’s position in the global value chain.

Source: The Star

Keyto launches Penang advanced fluid technology plant


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The government has introduced various initiatives and incentives to enhance the capacity of the local automotive industry, aiming to increase exports of vehicles, including spare parts and components, according to the Ministry of Investment, Trade, and Industry (Miti).

The ministry emphasised that fiscal and financial incentives, including reductions in both direct and indirect taxes, have been maintained alongside the provision of trade financing facilities and services for exporters through EXIM Bank.

“Among the initiatives taken is the signing of free trade agreements (FTAs) to obtain reductions in import duties when exporting to FTA partner countries,” Miti stated on the Parliament website on Monday.

It was replying to Datuk Indera Mohd Shahar Abdullah (BN-Paya Besar) regarding the development of the local automotive industry.

Miti also said that the import duty reductions obtained by local industry players also provide a cost-competitive advantage, offering greater market opportunities for local automotive companies.

“In addition, Malaysia is undertaking strategic cooperation under the Asean Mutual Recognition Arrangement (AMRA) to facilitate local automotive companies wishing to export their products.

“With AMRA, technical trade barriers, as well as certification and testing requirements, can be addressed or minimised,” it added.

Miti also shared that based on information provided by vehicle manufacturers Proton and Perodua, the total number of vehicles exported by both local brands from 2019 to September 2024 stood at 24,272 units.

Of this total, 17,118 units were Proton models, while the remaining 7,154 units were Perodua models.

Source: Bernama

Govt offers various initiatives, incentives to drive local automotive industry, says MITI


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Artificial intelligence (AI), digitalisation and the green economy will fundamentally reshape the job market, introduce 60 new roles and upskill 1.8 million domestic workers in 10 key sectors by 2025, Human Resources Minister Steven Sim Chee Keong said.

The Human Resources Ministry has identified more than 600,000 jobs that need skill enhancements, while new roles will emerge to meet the growing demands of these sectors, he said at the launch of Talent Corporation Malaysia’s (TalentCorp) report entitled “Impact of AI, Digital and the Green Economy on the Malaysian Workforce” at Malaysia International Trade and Exhibition Centre today.

The report highlighted 10 key sectors in the first phase of the upskilling initiative – aerospace, chemicals, electrical and electronics, energy and power, food manufacturing and services, global business services, information and communications technology, medical devices, pharmaceutical manufacturing, and wholesale and retail trade. These sectors contributed about 60% of Malaysia’s gross domestic product in 2023, amounting to RM933 billion, and employed 31% of the country’s skilled and semi-skilled workforce.

“We chose these sectors because they form the backbone of our economy. Understanding their future trajectory is critical for shaping our policies,“ Sim told reporters at the launch.

He said emerging roles such as AI engineers, sustainability specialists and bioprocess engineers are expected to become increasingly significant, driven by advancements in AI and sustainability initiatives. “The report is not just about the future. It is a roadmap for ensuring our workforce is prepared to meet these challenges.”

In response to the anticipated demand for upskilling, Sim said, the government has allocated RM3 billion in funding for training programmes. “This will be channelled through agencies like TalentCorp, HRD Corp, and Perkeso. By 2025, we aim to empower workers through targeted skills training that aligns with the future needs of our economy.”

Sim noted that one key initiative is the launch of the MyMahir portal, a living document that provides real-time updates on employment trends and training opportunities. “MyMahir is not just a platform, it is a game changer. It will enable small and medium enterprises, job seekers and policymakers to align their strategies with evolving market demands.”

The report underscores the importance of adapting to technological and environmental changes, he said. “Approximately 1.8 million workers will require targeted skill enhancements to remain competitive. We are not just addressing today’s jobs but preparing for tomorrow’s jobs.”

Sim said phase two of the initiative would expand the study to include 12 additional sectors, providing a deeper understanding of Malaysia’s labour market. “Phase two will be released next year, and our goal is to ensure no sector is left behind. Collaboration across ministries and industries is key to achieving this.”

The initiative aligns with Malaysia’s broader economic goals, including transitioning to a high-income nation and fostering inclusive growth, he said. “Upskilling and reskilling are not just policy objectives; they are essential for securing a sustainable and resilient future.”

Source: The Sun

AI, digitalisation and green economy to reshape Malaysian job market: Sim


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It has been a busy November for me, having first accompanied the prime minister on his visit to the China International Import Expo (CIIE) in Shanghai and Beijing, then to Egypt before we headed to the 31st Asia-Pacific Economic Cooperation (Apec) Economic Leaders’ Week (AELW) in Peru.

It is a gruelling schedule but international engagements, including forums like Apec, are crucial to Malaysia, particularly given the geopolitical developments in recent years.

As early as 1989, Malaysia became one of the founding economies of Apec, which arguably remains a cornerstone of regional economic integration and collaboration.

This year’s Apec AELW, with the theme of “Empower-Include-Grow” sought to tackle pressing challenges and reinforce commitments to inclusivity and sustainability. This was particularly significant given Malaysia’s upcoming chairmanship of Asean in 2025 and the recent re-election of Donald Trump as US president, introducing new variables into the global “chess board” of economic prowess and positioning — something everyone was talking about in Lima.

Being part of Apec matters to and benefits Malaysia on several fronts. First, with a combined population of three billion, Apec’s 21 member economies represent approximately 62% of the world’s gross domestic product (GDP) and 47% of global trade. Aside from trade, Apec also facilitates investments, capacity building and knowledge sharing.

In 2023, Apec’s GDP grew by 3.5%, surpassing the global growth rate of 3.2%. This was driven by robust household spending and a resilient services sector, notably the recovery of travel and tourism. The same 3.5% growth rate is forecast for Apec in 2024. Although geo­political uncertainties, trade protectionism, and commodity price fluctuations may temper growth to 3.1% in 2025, there is undoubtedly resilience in our combined strength.

In terms of enhancing trade, as of July 2023, member economies had signed a combined total of 212 free trade agreements (FTAs), with 202 in force. Notably, 74 of these FTAs are intra-Apec, involving at least two member economies, and to good effect for us — in 2023, Apec economies accounted for 78.1% or over RM2 trillion of Malaysia’s total trade, while contributing 57.2% or RM107.8 billion of total approved investments across all sectors in Malaysia. In short, one can safely presume that the Apec membership has supported Malaysia’s economy in a big way.

Meanwhile, Malaysia intends to leverage its chairmanship of Asean in 2025 to bring about synergistic benefits between the Apec economies and the Asean member states, seven of which are also in Apec. Asean, arguably, is also at the heart of Apec geographically, strategically and economically.

This rare dual-role opportunity places Malaysia in a unique position to strongly advocate for both forums to pursue a balanced, non-polarising approach in the Indo-Pacific, with a clear call to action for member economies to deepen their collaborative focus on inclusivity, innovation, equitable growth and sustainability.

Indeed, Malaysia’s 2025 Asean chairmanship theme of “Inclusivity and Sustainability” is very much aligned to Apec’s 2024 theme, as both frameworks seek to prioritise the digital economy, green technologies, and support for small and medium enterprises, to pave the way for regional stability and shared prosperity.

A rules-based international system is key

But Apec’s most important contribution moving forward might be its role in enshrining a multilateral, rules-based international system. Trump’s return to the US presidency resurrects concerns that his previous “America First” policies will result in a further retreat from multilateralism, vis-à-vis Apec and other regional frameworks, although admittedly, the new administration’s official policies will only be known post-inauguration of the new US president.

However, I would likewise posit that this development also presents us with opportunities. Apec has been and can continue to serve as a platform for the US to engage constructively with the region on economic issues like supply chain resilience, strategic resources and digital trade.

Indeed, we are hopeful that the new Trump administration will approach global trade with pragmatism and a clear view of the mutual benefits of multilateral engagement, which will complement Apec’s cooperative ethos.

Apec has proven its effectiveness in fostering cooperation among diverse economies, enabling them to address shared challenges such as economic inequality. In the context of Apec, adherence to an agreed-upon rules-based system facilitates trade liberalisation, investment flows and economic integration to promote stability in international relations. It also provides mechanisms for dispute resolution and the enforcement of agreements, which are crucial for maintaining trust.

Moreover, a rules-based system upholds the sovereignty of nations while encouraging them to collaborate on global issues. This balance is key to avoid unilateral actions that can lead to conflicts and economic disruptions.

Cooperation, not conflict, for global progress

The US and China, as the two largest economies within Apec, remain pivotal to the world’s economic trajectory. This year, their economies are expected to grow by 2.5% and 4.8% respectively. In the long run, concord between the US and China is the best outcome for not only their peoples, but also the wider world.

While we may not agree on everything, I believe the Trump White House will find Malaysia, as well as Apec and Asean willing to engage with them to ensure peace, stability and prosperity in our region and beyond. When it comes to trade and investment, we believe Malaysia’s neutrality is valuable, not only to our own foreign and economic policies, but also as a bridge between rival powers. Ours is neutrality in engagement, not in isolation, to help address global supply chain vulnerabilities, economic shocks and climate-related disruptions.

Regardless of what is happening globally, Malaysians can rest assured that the government will continue to proactively navigate whatever implications arise to protect the rakyat’s interests. Indeed, recent geopolitical developments validate our strategy to be friends to all, without suppressing Malaysia’s strong views on glaring global injustices. Indeed, our continued participation in international forums like Apec, as well as new ones like the BRICS reflect Malaysia’s desire for more constructive engagement to bring about a better counterbalance of superpowers in the global world order.

As the world grapples with geopolitical realignments and economic uncertainties, institutions like Apec and Asean must stand as a beacon of multilateralism, resilience and innovation, especially in fostering deeper cooperation and consensus-based decision-making. When all is said and done, the world’s ability to thrive for the many needs more, not less constructive multilateralism.

Tengku Datuk Seri Zafrul Abdul Aziz is the minister of Investment, Trade and Industry

Source: The Edge Malaysia

Malaysia’s strategic position in shaping regional economic collaboration


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Prime Minister Datuk Seri Anwar Ibrahim has urged the electrical and electronics (E&E) and semiconductor industries of Malaysia and Brazil to leverage each other’s strengths and enhance collaboration, particularly given the increasing prominence of the Global South.

“Although we are from distant lands, the potential is immense. Brazil is a key pillar of the Latin American economy, while Malaysia is rapidly establishing itself as a semiconductor hub and an attractive destination for data centres and artificial intelligence,“ Anwar said.

Speaking at a roundtable meeting with representatives from the semiconductor industry and captains of industries here, today, he underscored the importance of this partnership for driving innovation and progress among nations in the Global South.

“So, the collaboration with Brazil, to me, is very critical at this point, as it will enable countries in the South to harness their expertise, knowledge, and research to excel in areas where they can make a significant impact,“ he said.

He also highlighted opportunities for cooperation beyond traditional sectors.

“In the context of the Global South, it is important for us to strengthen collaboration while continuing open trade engagements with major economies like the United States and China,“ he said.

The event was attended by 34 corporate leaders from 20 prominent companies across various industries.

Also present was Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz.

Acoording to Anwar, although the volume of semiconductor trade and export from Brazil is relatively small compared to Malaysia, the industry in Brazil has excelled in some areas that can be advantageous to both countries.

Malaysia has a comprehensive semiconductor ecosystem covering front-end and back-end activities, and it is currently the sixth largest semiconductor exporter globally with exports exceeding US$85 billion.

Malaysia’s ecosystem includes global giants such as Intel, Infineon, Micron, and Texas Instruments, as well as homegrown champions like Carsem and Inari.

Meanwhile, Brazil’s semiconductor export value stands at US$1 billion, and the country’s competitive edge lies in the manufacturing of integrated circuits.

Anwar, who is also Malaysia’s Finance Minister, said that the potential collaboration in the semiconductor industry was one of several topics discussed during his meeting with Brazilian President Luiz Inácio Lula da Silva on Sunday.

“We are both very neutral on trade and development, and we take a very independent view of international issues and conflicts. We are not dictated by any superpower, and that makes our stance quite similar in terms of our foreign policy interaction.

“And to me, what is especially significant is that both of us want to focus on the economy, developments and new technologies,” he said.

Anwar arrived in Rio de Janeiro on Saturday for his first official visit to Brazil on da Silva’s invitation, after participating in the APEC Economic Leaders’ Week in Lima, Peru.

Malaysia was among 17 guest nations invited to the G20 Summit in Brazil, alongside countries like Chile, Qatar, Egypt, and Singapore.

In 2023, Brazil, the largest country in South America, was Malaysia’s 20th largest trading partner, 29th largest export destination and 17th largest import source.

Among Latin American and Caribbean countries, Brazil is Malaysia’s second-largest trading partner, second-largest export destination and largest import source.

Source: Bernama

Malaysia-Brazil partnership holds huge promise for E&E, semiconductor industry – PM Anwar


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The government, through the Ministry of Investment, Trade and Industry (MITI), will soon release the findings of a report examining the impact of excess capacity from China, particularly in the iron and steel sector.

Deputy Minister Liew Chin Tong said the report was prepared by an independent committee established by MITI.

He added that the issue of dumping Chinese-manufactured products, driven by the country’s economic slowdown, especially in the construction and real estate industries, is a concern not only for Malaysia but globally.

“Capacity in Southeast Asia for iron and steel is set to rise over the next five to six years. In 2021, total capacity in the region was 75 million metric tons, with the potential to more than double to 150 million metric tons by 2026.

“The independent committee has prepared the relevant report for MITI, which will provide direction on addressing the issue of excess capacity in the iron and steel industry,“ Liew said in response to additional questions from Datuk Seri Saifuddin Abdullah (PN-Indera Mahkota) during an oral question and answer session in the Dewan Rakyat today.

Saifuddin sought details on the government’s specific plans to address the dumping of iron and steel products and their production in China.

Liew also noted that between 2015 and 2023, the government imposed nine anti-dumping measures and three protective measures against products imported from China, including iron and steel, plastics and construction materials, which have caused significant harm to Malaysia’s domestic industry.

“The government is also investigating four iron and steel products and plastics for potential anti-dumping violations arising from overcapacity in China’s manufacturing sector.

“The investigation aligns with Malaysia’s domestic laws and regulations, as well as with agreements under the World Trade Organisation,“ Liew explained, responding to a question from Datuk Seri Utama Ir Hasni bin Mohammad (BN-Simpang Renggam).

Hasni had inquired about the measures taken by the government to protect the local industry from the effects of China’s overcapacity, including price pressures on local products and the potential hindrance to the growth of Malaysia’s manufacturing sector, as well as strategies to ensure the long-term competitiveness of the Malaysian industrial sector.

Liew said MITI has also announced the revision of Act 504 and the Countervailing and Anti-Dumping Duties Regulations 1994 to better align with current international trade practices.

This revision aims to create a more conducive regulatory environment, positioning Malaysia as a sustainable business hub.

Additionally, MITI has launched the Trade Remedies Investigation Management System (TRIMA), a digital Single Window platform designed to modernise trade remedy investigations.

TRIMA will streamline the investigation process and reduce inquiry durations, potentially shortening the current statutory nine-month timeframe.

Source: Bernama

MITI to unveil report on China’s iron and steel overcapacity impact – Liew


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Malaysia is poised to become a regional industrial gateway following its collaborations with Brazil in the semiconductor sector, said Malaysia’s Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

“By leveraging our Asean chairmanship, we can position the region as a global hub for semiconductor innovation and manufacturing, benefitting not only Malaysia and Brazil but all Asean member states,” he said during the Malaysia-Brazil semiconductor industry meeting here on Sunday (Nov 17).

In his opening remarks, he said the meeting was not only a platform to showcase Malaysia’s strengths but also an opportunity to forge meaningful partnerships.

Also present were MIMOS Bhd’s chief executive officer (CEO) Dr Saat Shukri Embong, Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai, Brazilian Association of the Electrical and Electronic Industry president Dr Humberto Barbato, and the Brazilian Association of the Semiconductor Industry president Rogério Nunes.

Zafrul said that Malaysia aims to attract RM500 billion in investments by 2030, and establish 10 local semiconductor industry champions with revenues exceeding RM1 billion each.

These targets, including the training and upskilling of 60,000 engineers, are part of the National Semiconductor Strategy.

During the meeting, Tengku Zafrul also witnessed the signing of two memoranda of understanding (MOUs) involving the semiconductor industries of Malaysia and Brazil.

The first MOU was inked by Saat and Eldorado Institute CEO Roberto Soboll, while the second MOU was signed by Wong and Barbato. 

Malaysia has a comprehensive semiconductor ecosystem that spans front-end and back-end activities. 

The country is currently the sixth largest semiconductor exporter globally, with over US$85 billion (RM379.45 billion) worth of semiconductor exports.

Malaysia’s semiconductor ecosystem includes global giants such as Intel, Infineon, Micron, and Texas Instruments, as well as homegrown champions like Carsem and Inari. 

These players have turned Malaysia into a trusted hub for various industries, ranging from automotive to medical devices.

Source: Bernama

Tengku Zafrul: Semicon collab with Brazil poised to make Malaysia a regional industrial gateway


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The government will continue to provide incentives for the development of electric vehicle (EV) charging infrastructure, even though these incentives were not specifically mentioned in Budget 2025.

The Ministry of Investment, Trade and Industry (Miti) said among the incentives are Green Investment Tax Allowance (Gita) programme whereby the charging point operators (CPOs) who meet the tax incentive criteria can receive a 100% tax exemption in the form of an investment tax allowance for a period of five years.

This allowance can be used to offset up to 100% of statutory income for each assessment year.

“In addition, incentives in the form of income tax exemptions are also being offered to companies manufacturing EV charging equipment in the form of a full income tax exemption on statutory income starting from the assessment year 2023 until the assessment year 2032,” said Miti.

The ministry said this in a written reply on the Parliament website on Monday in response to a question from Tan Kok Wai (PH-Cheras) regarding the specific allocations for the development of EV charging infrastructure in the current budget.

Miti also said the government expects the total number of electric-powered vehicles (xEV) on the road to reach at least 400,000 passenger and commercial vehicles by 2030.

As of Sept 30, 2024, the total annual sales for vehicles, including hybrid, plug-in hybrid, battery electric vehicles (BEVs), and fuel cell electric vehicles (FCEVs), amounted to 33,319 units. For the whole of 2023, the sales rate was 4.12%, or 35,723 units.

Meanwhile, in supporting the development of EV charging bays (EVCBs), the ministry said that Petronas’ subsidiary Gentari and Tenaga Nasional Bhd (KL:TENAGA) have committed to making investments and had spent around RM76 million up to June 2024.

With the significant financial involvement of both companies, more EVCBs are expected to be built across Malaysia, supported by other CPOs that also provide EV charging services to the public.

“This positive development has helped boost the confidence of EV enthusiasts in purchasing and using these vehicles,” according to Miti.

Currently, there are about 30 CPOs operating in the local market.

Source: Bernama

MITI: Govt provides incentives for EV charging infrastructure development


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The new leadership change in the US is expected to affect the global trade landscape, particularly in trade relations between the US and China.

The Ministry of Investment, Trade and Industry (Miti) said that should the geopolitical issues continue, there is a greater opportunity for other countries such as Malaysia to become alternative destinations for multinational companies to increase or start their investments.

According to Miti, the government has introduced various initiatives to attract investors to move or expand their operations in Malaysia as a result of the US-China trade war.

Among the initiatives are making the semiconductor industry a major programme under the New Industrial Master Plan 2030 (NIMP 2030), drafting a National Semiconductor Strategy, including efforts to modernise the existing outsourced semiconductor assembly and test companies, which is an important element in the semiconductor value chain.

The government will also strengthen existing infrastructure, focus on local talent and encourage  government-linked investment companies to invest in local semiconductor companies, Miti said in a written reply on the parliament website on Monday to a question posed by Mohd Syahir Che Sulaiman (PN-Bachok) during a question session in Dewan Rakyat on Monday. 

Mohd Syahir inquired what the government’s plan is for the growth of the semiconductor industry in line with NIMP 2030 in view of the US-China trade war.

Source: Bernama

US-China trade war can boost Malaysia’s chances to be multinational investment destination — MITI


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A total of 2,132 investment projects in the manufacturing and services sectors have been approved in Selangor from 2023 to June 2024, with a combined investment value of RM90.21 billion, said Selangor Exco for Investment, Trade, and Mobility Ng Sze Han.

For 2023 alone, he noted that 1,311 investment projects were approved, amounting to RM55.24 billion, while from January to June 2024, 821 projects were approved with a total investment value of RM34.97 billion.

Ng also highlighted that these investments created 63,912 job opportunities in Selangor during the same period, reecting the positive development of the economic sectors.

He was responding to questions from Muhammad Izuan Kassim (PH-Kota Damansara) and Quah Perng Fei (PH-Bandar Baru Klang), who enquired about the amount of investment in Selangor for 2023 to 2024 during the Selangor State Assembly session here today.

Ng added that the state government has set a target of RM50 billion in investments for the manufacturing and services sectors this year, with RM15 billion allocated to manufacturing and RM35 billion to services.

To achieve that target, he said the state government, through Invest Selangor, has implemented various initiatives, including organising investment promotion programmes, developing new industrial areas, and conducting regular project coordination meetings.

Source: Bernama

Selangor records RM90.21 bln investment in manufacturing and services sectors


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Kuala Pilah is set to welcome a new private specialist hospital, thanks to a collaboration between Oval Gallery Sdn Bhd and Sena Healthcare Services Sdn Bhd.

The hospital, located in Taman Redani Juasseh, is expected to be completed by 2028, with an investment of RM150 million.

Oval Gallery chairman Datuk Seri Tunku Nadzaruddin Ibni Almarhum Tuanku Ja’afar said the 240-bed hospital will be built on a 0.946-hectare site and received pre-establishment (zoning) approval from the Ministry of Health in 2019.

The construction and operation of the hospital will be managed by Sena Healthcare Services, with work expected to begin at the end of 2025.

“An investment of RM150 million will be allocated to the construction and initial operating costs of the hospital”.

For the first phase, 120 beds to be added later,” he said to reporters at the memorandum of understanding (MoU) signing ceremony for the hospital’s construction and operations, witnessed by the Negeri Sembilan Menteri Besar Datuk Seri Aminuddin Harun.

Tunku Nadzaruddin added that the hospital will serve as a new landmark for the district and will provide signicant benets to the local community, including residents of Jempol, by creating job opportunities and contributing to the local economy.

Meanwhile, Aminuddin said that private sector involvement in providing healthcare services would help alleviate the burden and pressure on citizens to access more systematic treatment.

He noted that this effort aligns with the government’s goal to ensure that the public can enjoy a better standard of living, as well as the strategic location of the hospital, which is situated along the main road connecting the districts of Seremban, Kuala Pilah, Jempol, and Tampin, as well as the states of Johor and Pahang.

“This hospital will provide services to residents in these districts, with a population of nearly half a million people.

“Even residents from border areas such as Muar, Segamat, Muadzam, Rompin, and Mersing will have the option to seek treatment here,” he said.

Aminuddin also highlighted that the presence of professionals, including specialist doctors and support staff such as nurses and technicians, would indirectly contribute to the local economy by creating more job opportunities for the community.

New private specialist hospital in Kuala Pilah by 2028 with rm150 mln investment


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The introduction of the Investment Incentive Framework (IIF2025) in 2025 Budget marks a transformative step to revolutionise Malaysia’s investment landscape.

InvestKL said the step aligned to InvestKL’s focus on attracting modern services investments in areas such as Artificial Intelligence (AI), robotics, internet of things. data science and fintech.

InvestKL chief executive officer Datuk Muhammad Azmi Zulkifli said the 2025 Budget is a comprehensive and forward-looking plan to accelerate Malaysia’s economic growth.

“The introduction of IIF2025 prioritises emerging sectors and reskilling the workforce to meet industry demands, aligning with InvestKL’s mission to draw high-quality investments in the modern services sector.”

As Malaysia prepares to chair Asean in 2025 and explores joining BRICS, the 2025?

Budget positions the nation and Greater Kuala Lumpur to seize global opportunities, further solidifying their standing in the international investment landscape,” he said.

InvestKL added that targeted fiscal measures and incentives in the 2025 Budget will accelerate key sectors, including green technology, digital economy, and advanced manufacturing.

It said the 2025 Budget places a significant emphasis on expanding Malaysia’s modern services sector, a move set to profoundly impact the rakyat’s economy.

It said these measures are critical in advancing Malaysia’s roadmap towards becoming a high-income nation by 2028.

“The recent influx of foreign direct investments is poised to be a catalyst for the creation of high-skilled jobs across diverse sectors.”

“The influx is not just a financial boon; it is a transformative force that will significantly elevate the quality of employment opportunities available to Malaysians.”

“As these high-skilled jobs proliferate, they will infuse the nation’s economic engine with new vigour, driving growth and innovation,” it added.

Source: NST

2025 Budget to revolutionise Malaysia’s investment landscape: InvestKL CEO


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CCK Consolidated Holdings Bhd will be investing RM20mil in a new cold room for frozen meat and food products under an expansion project for its Kuching Bintawa factory.

The new cold room measuring 21,506 sq m will more than double the factory’s existing cold room capacity by an additional 5,000 pallets from 2,000 pallets to 7,000 pallets, according to group managing director Tiong Chiong Hiiung.

He said the new cold room will be equipped with an automated storage and retrieval system to automatically store and retrieve goods from defined storage locations to reduce labour requirements.

The building plans for the expansion project have been submitted and are awaiting the approval of the relevant authorities. Tiong said CCK also plans to invest RM8mil in a new broiler farm in Sarawak on land that is to be acquired.

The farm, which will have a maximum capacity of 200,000 heads per cycle, is expected to commence operations by the first quarter of 2026 (1Q26).

The company has planned for another capital expenditure of about RM6.34mil on the digitalisation of the group’s operations and upgrading of digital technologies.

Negotiations with a vendor, Tiong said, are in the final stages to award a RM4mil contract for services to digitalise the group’s current operations and streamline its processes to improve efficiency.

The money will also be spent for the procurement of the necessary hardware to facilitate the upgrading of the digital technologies, such as new point-of-sale systems, new weighing counters and hand-held computers. The entire process is expected to commence in 1Q25 for completion within 24 months.

Tiong said the total capital expenditure of about RM36.34mil for these projects will be funded from the proceeds of RM88.1mil, which will be raised from the proposed sale of CCK’s 26.5% equity interest in PT Adilmart, Indonesia to Astrantia Sdn Bhd.

Adilmart, which is a wholly-owned subsidiary via CCK and CCK Frest Mart (which hold a 96.25% and 3.75% stake, respectively), is involved in the production and trading of frozen food, including sausage and other processed meat, in Indonesia.

Under signed agreements, Astranita will acquire 31,772 existing shares (26.5%) in Adilmart for RM88.1mil and subscribe to 27,047 new Adilmart shares (18.4%) of the enlarged issued Adilmart shares, for RM75mil in cash.

Upon completion of the deals, Astrantia will increase its equity interest to 40%, whereas CCK will reduce its stake to 56.9%, with the balance of 3.1% held by CCK Frest Mart.

Astrantia is a special purpose vehicle company incorporated by Creador V to hold the investment of Creador V and undertake the proposed acquisition of the 26.5% stake in Adilmart and new share subscription of 18.4% in Adilmart.

CCK is seeking the approval of its shareholders on the two proposals (proposed disposal of 26.5% stake in Adilmart by CCK and proposed new share subscription of 18.4% equity interest in Adilmart by Astrantia) at its EGM here on Nov 27.

In a circular to shareholders on the two proposals, Tiong said CCK intends to reward its shareholders with an indicative special cash dividend amounting to RM30mil (4.83sen per share) from the RM88.1mil proceeds.

The balance of RM20.9mil from the proceeds will be set aside for the group’s working capital.

CCK is Sarawak’s largest integrated poultry supplier. Its business comprises four segments: retail, poultry, prawn and food service.

The group operates a wide sales network in Sarawak and Sabah, comprising 66 Fresh Mart retail stores, three CCKLocal supermarkets and six wholesale stores.

The group also has manufacturing and sales operations in Pontianak, west Kalimantan and Jakarta, Indonesia.

On the utilisation of the RM75mil proceeds from new share subscription by Astrantia, Tiong said Adilmart intends to use RM40mil to fund the construction of new manufacturing facilities, RM20mil for purchase of machineries and RM5mil for other costs (motor vehicles and administrative expenses).

“We intend to acquire a piece of land measuring approximately 11 acres in Indonesia for the construction of manufacturing facilities as our current manufacturing plants located in Jakarta and Pontianak have achieved their maximum production capacity.

“These new manufacturing facilities will be used to produce frozen food products, such as sausages, nuggets, burgers, meatballs and other meat products, which are similar to the products currently being manufactured in the existing facilities.

“We expect to double our group’s production capacity and output following the commencement of these manufacturing facilities,” he added.

Tiong said Adilmart plans to purchase and install automated machineries, such as a thermoforming machine, bowl cutter, forming machine and fryer, for about 10 production lines in the new manufacturing facilities.

These production lines are envisaged to have production capacity of between 3,000 and 4,000 tonnes a month. The new manufacturing facilities are expected to have built-up area of 19,200 sq m.

Source: The Star

CCK to invest RM20mil in new cold room


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Malaysia is poised to become a regional industrial gateway following its collaborations with Brazil in the semiconductor sector, said Investment, Trade and Industry Minister, Tengku Datuk Seri Zafrul Abdul Aziz.

“By leveraging our Asean chairmanship, we can position the region as a global hub for semiconductor innovation and manufacturing, benefiting not only Malaysia and Brazil but all Asean member states,” he said during the Malaysia-Brazil semiconductor industry meeting here today.

In his opening remarks, he said the meeting was not only a platform to showcase Malaysia’s strengths but also an opportunity to forge meaningful partnerships.

Also present were MIMOS Bhd’s chief executive officer (CEO), Dr Saat Shukri Embong; Malaysia Semiconductor Industry Association president, Datuk Seri Wong Siew Hai; Brazilian Association of the Electrical and Electronic Industry president, Dr Humberto Barbato, and the Brazilian Association of the Semiconductor Industry president, Rogério Nunes.

Tengku Zafrul said Malaysia aims to attract RM500 billion in investments by 2030 and establish 10 local semiconductor industry champions with revenues exceeding RM1 billion each. These targets, including the training and upskilling of 60,000 engineers, are part of the National Semiconductor Strategy.

During the meeting, Tengku Zafrul also witnessed the signing of two memoranda of understanding (MoU) involving the semiconductor industries of Malaysia and Brazil. The first MoU was inked by Saat and Eldorado Institute CEO, Roberto Soboll, while the second MoU was signed by Wong and Barbato.

Malaysia has a comprehensive semiconductor ecosystem that spans front-end and back-end activities.

The country is currently the sixth largest semiconductor exporter globally, with over US$85 billion worth of semiconductor exports. Malaysia’s semiconductor ecosystem includes global giants such as Intel, Infineon, Micron, and Texas Instruments, as well as homegrown champions like Carsem and Inari.

These players have turned Malaysia into a trusted hub for various industries, ranging from automotive to medical devices.

Source: Bernama

Tengku Zafrul: Malaysia-Brazil semiconductor collaboration to drive regional industry


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Strong cooperation between ASEAN and APEC remains a key agenda to ensure sustainable development and stronger economic integration in the region, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Aziz.

As Malaysia’s representative, he is confident that this commitment will continue to strengthen the country’s position in shaping a more inclusive, sustainable, and competitive Asia-Pacific economic future.

During a dialogue session with the APEC Business Advisory Council (ABAC) and APEC economic leaders, he emphasised Malaysia’s vision to drive sustainable growth and regional economic transformation.

“As Malaysia prepares to lead ASEAN in 2025, we are committed to strengthening the green economy, accelerating digital transformation, and ensuring economic inclusivity, with strong support from our regional partners under the ASEAN-APEC framework.

“I also shared Malaysia’s success in attracting foreign direct investment (FDI), particularly in the data and semiconductor sectors. These two sectors are now critical pillars in strengthening the country’s economic resilience,” he said in an Instagram post on Friday.

Tengku Zafrul added that Malaysia also believes that close cooperation between the public and private sectors plays an essential role in achieving mutual benefits for all member countries.

Through such cooperation, he said, it would ensure sustainable economic development and a more robust regional integration.

Tengku Zafrul is currently in Lima, along with the Malaysian delegation led by Prime Minister Datuk Seri Anwar Ibrahim, who is on an official visit to the capital, attending the 31st Apec Economic Leaders’ Week.

APEC member economies represent approximately three billion people or nearly 30 per cent of the global population.

These countries also account for nearly 60 per cent of the global gross domestic product and facilitate almost 50 per cent of global trade.

Source: Bernama

Strong ASEAN-APEC cooperation key to sustainable development, economic integration – Tengku Zafrul


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Prime Minister Datuk Seri Anwar Ibrahim is scheduled to hold a bilateral meeting with Brazilian President Luiz Inacio Lula da Silva here Sunday.

Anwar, who is also the Finance Minister, will also meet with representatives from the Malaysian and Brazilian semiconductor industries and participate in a roundtable session with Brazil’s captains of industry on the second day of his visit here.

The Prime Minister will also participate in the first oil celebration of Malaysia’s Yinson Holdings Bhd’s floating, production storage, and offloading (FPSO) unit, Maria Quitéria, which achieved its first oil production on Oct 15, 2024.

This milestone marked the commencement of the project’s firm charter, under which contracted day rates will be paid to the group’s unit, Yinson Production, for a period of 22.5 years until 2047.

FPSO Maria Quitéria is the second asset delivered by Yinson Production for its client, Petrobras, following the delivery of FPSO Anna Nery in May 2023. FPSO Maria Quitéria has a production capacity of 100,000 barrels of oil per day (bpd) and a storage capacity of one million barrels.

The day will end with the Prime Minister having dinner with Malaysian diaspora and friends of Malaysia.

Anwar arrived in this vibrant coastal city on Saturday after attending the APEC Economic Leaders Week (AELW) in Lima, Peru for his first official visit to Brazil and as a guest country for G20.

Malaysia, along with 16 other countries, including Chile, Qatar, Egypt, Singapore, Spain, United Arab Emirates, and Vietnam are guest countries for the G20 Summit. Anwar’s visit was made at the invitation of Brazilian President Lula da Silva.

The Prime Minister is accompanied by Foreign Minister Datuk Seri Mohamad Hasan and Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Aziz.

The Malaysian delegation also includes Deputy Minister of Natural Resources and Environmental Sustainability Datuk Seri Huang Tiong Sii, Deputy Minister of Energy Transition and Water Transformation Akmal Nasrullah Mohd Nasir, and other senior Malaysian government officials.

In 2023, Brazil, the largest country ini South America, was Malaysia’s 20th largest trading partner, 29th largest export destination, and 17th largest import source.

Among Latin American and Caribbean countries, Brazil is Malaysia’s second-largest trading partner, second-largest export destination, and largest import source.

Source: Bernama

PM Anwar to meet Brazilian president, captains of industry


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MALAYSIA’s push towards digitalisation is drawing keen interest from global tech giants, with Amazon Web Services Inc (AWS), Microsoft Corp, Google and Oracle Corp committing a combined investment of US$16.9 billion (RM75 billion) through to 2038.

These investments reflect Malaysia’s position as an emerging hub for regional cloud infrastructure, signalling its potential to become a gateway for Southeast Asia’s expanding digital economy. They also showcase Malaysia’s market opportunities within the context of a broader artificial intelligence (AI) and data centre development strategy across the region.

Oracle Corp, in particular, had last month announced a massive investment plan of over US$6.5 billion to set up its first public cloud region in Malaysia, making it the latest major investment by a global tech giant in the country.

It was reported that Oracle’s initiative is poised to be one of the largest — if not the largest — single tech investments to date in Malaysia, surpassing the US$6.2 billion that AWS announced last year.

In an exclusive interview with The Edge, Oracle Japan & Asia-Pacific senior vice-president for technology and customer strategy Chris Chelliah says this cloud region isn’t just another data centre in Malaysia. Instead, it involves multiple data centres working together, ensuring redundancy and scalable resources. This way, businesses can get the services they need without the delays that come from having everything in one place.

“The cloud region is more than just a single data centre. To us, there is a clear distinction. You can think of a data centre as a four-wall apartment, while a cloud region is more like the electrical appliances that make the apartment liveable. In other words, you could say that our cloud region is a tenant of the data centre.

“We are a platform provider, not a data centre owner. So, if you think about it, all our US$6.5 billion will be allocated to building cloud facilities, not data centres. Whereas other companies are talking about billions of investments, including the cost to build a data centre. This really shows the magnitude of our investment commitment in Malaysia,” he says.

Oracle Malaysia managing director Fitri Abdullah highlights that the group intends to create infrastructure that supports the digital transformation of businesses in Southeast Asia.

“A cloud region helps us deliver cloud services with low latency and high availability, which means companies can run efficiently and securely. This investment reflects the growing demand for cloud and AI services in the region,” he explains.

Given that every industry has different needs for digital transformation, Fitri says Oracle’s cloud region will be flexible enough to serve sectors such as finance, healthcare and manufacturing.

Moreover, it will also enable Oracle’s Malaysian clients — including government agencies and companies in the airline and hospitality sectors — to access cloud services hosted locally, rather than relying on external providers.

“We plan to engage with our customers to understand their needs, so we can offer solutions tailored to their specific challenges. Moving to cloud computing is essential for businesses that want to stay competitive.

“Our investment in the cloud region in Malaysia is about making this transition easier, giving businesses a solid foundation for adopting digital technologies. We believe our cloud solutions will open new doors for growth and innovation,” Fitri elaborates.

Third in Southeast Asia

For perspective, Oracle has 85 cloud regions around the world and is planning to build another 77, which is more than all the three hyperscalers, namely Google, Microsoft and AWS, combined.

Nevertheless, Malaysia will be equally important as compared to other cloud regions, says Chelliah.

“With our 36 years of history in Malaysia, a key reason for establishing a cloud region here is to serve our clients better. In fact, over the past eight years, Oracle Malaysia’s clients have been migrating to the cloud. This latest investment in the cloud region will enable us to provide more cutting-edge features to them,” he explains.

Currently, Oracle has 12 cloud regions in Japan and Asia-Pacific, two of which are in Singapore. Thus, the upcoming Malaysian public cloud region will be its third in Southeast Asia.

“By putting our cloud region in Malaysia, we’re not just serving local clients; we’re aiming for businesses all across Southeast Asia. Our goal is to create a seamless experience for our customers, so they can access a range of cloud services that are reliable and efficient.

“With each data centre in the region contributing to this ecosystem, data stays close to where it’s needed, cutting down on latency and improving performance,” Chelliah reiterates.

Fitri says Oracle aims to support small and medium enterprises because they are crucial to Malaysia’s economy. “Our cloud solutions are designed to help these businesses compete with larger firms. By making advanced technologies accessible, we hope to fuel innovation and growth among SMEs.

“Our investment in the cloud region shows we’re confident in Malaysia’s growth potential. We want to support local businesses on their digital transformation journeys, providing the tools they need to succeed in an ever-changing technology landscape,” he continues.

Fitri adds that there is a lot of potential for growth in Malaysia’s cloud computing market, and Oracle’s cloud region is built to meet that demand, offering flexible solutions that match modern business needs.

“As we move forward, we expect to see more companies eager to adopt cloud and AI technology for their growth strategies. We’re looking forward to what lies ahead with our cloud region in Malaysia.

“The infrastructure we’re building is meant to drive digital transformation across various sectors, helping businesses innovate and thrive. Our investment shows we believe in Malaysia as a technology hub in Southeast Asia,” he stresses.

Meanwhile, Chelliah acknowledges the importance of security, and hence, Oracle’s cloud region will have advanced measures in place to protect sensitive data. “We know that businesses need to feel secure about their data, so we’ve built our cloud architecture to meet both local regulations and international standards.”

Texas-headquartered Oracle is a US multinational computer technology company specialising in database software and cloud computing.

According to Chelliah, building a cloud region is not just about the infrastructure, but also about the software and services that empower businesses.

“We want to make it easier for our customers to focus on what they do best while we handle the complexities of the cloud. Oracle’s strength in databases is a huge advantage for us. It gives us synergies when we offer cloud services.

“Our database technology allows us to deliver robust data management solutions that are essential for businesses moving to the cloud. This expertise is what sets us apart from our competitors,” he says.

When asked, both Chelliah and Fitri declined to speculate on the economic impact that will be generated by Oracle’s investment, although they expect this project to create thousands of jobs in Malaysia.

“It’s not just about building data centres; it’s also about contributing to the local economy and helping develop talent. We’ll be collaborating with educational institutions to train the next generation of technology professionals,” says Fitri.

“Our vision is to create a space where businesses can use our cloud solutions to enhance what they do. By empowering local companies, we hope to drive innovation and growth across different sectors. The cloud region will be central to this, providing the necessary infrastructure for businesses to scale efficiently,” says Chelliah.

Over the past year, major players in the tech industry have also made significant investments in the region.

Notably, Microsoft announced cloud service investments totalling US$1.7 billion in Indonesia, while AWS revealed plans for an investment of US$9 billion in Singapore and US$5 billion in Thailand.

Meanwhile, Google recently broke ground on a US$2 billion data centre in Malaysia, which is expected to contribute over US$3 billion to the country’s economy by 2030.

As Southeast Asia positions itself as an important hub for digital transformation, the influx of investments from these tech giants signals not just a competitive landscape but also their belief in the region’s potential. However, only time will tell if the concerns and scepticism surrounding data centres and cloud regions — in Malaysia, particularly regarding their consumption of water and electricity — are justified.

The real test will be whether this growth brings lasting benefits to local businesses and communities, shaping a sustainable future for the region’s digital economy. 

Source: The Edge Malaysia

Oracle: US$6.5 bil investment in Malaysia ‘more than a data centre’


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As we enter the final two months of 2024, what are the expectations for the semiconductor industry? TechInsights’ 2025 semiconductor manufacturing outlook estimated that integrated circuit (IC) sales will witness increases of 17% and 14% in silicon demand and semiconductor capital expenditure respectively. Second, there will be a 20% rise in equipment sales, driven by strong demand from China. Third, the glass substrate business continues to optimise cost and performance in advanced packaging. Fourth, the subsystem market will grow 15%, driven by continued investment and overall market growth. Fifth, there will be significant advancements in the semiconductor testing market, with strong growth in probe cards, test and burn-in sockets, and interface boards.

In short, strong semiconductor manufacturing expectations in 2025 will be driven by robust semiconductor sales growth in 2024. As at 3Q2024, global semiconductor sales grew 23% to reach US$166 billion (RM745 billion). This substantial growth driven by rising demand for artificial intelligence (AI), 5G and electric vehicles in turn led to a significant production surge for logic and memory chips, and specifically graphic processing units and high-bandwidth memory. The new chips not only provide higher computing power but also enormous data storage capacity and faster read/write speeds that enable AI to pull data much faster than a traditional hard disk drive in the data centre.

As more IC units are being sold, they are driving better sales in semiconductor equipment. According to SEMI’s latest data, IC equipment sales reached US$53 billion in the first half of 2024 and are projected to reach US$128 billion in full-year 2025. The sales forecast comes from strong equipment investment in Asian regions. China’s purchases alone exceeded US$24 billion, driven by the country’s ambitious goal to develop its own AI chatbots, independent of Western influence. Although Taiwan’s and South Korea’s semiconductor equipment investments are insignificantly smaller compared with China’s, TSMC and Samsung foundries are focused on developing advanced chips, whereas China is heavily invested in 300mm fabs.

The top five leading front-end equipment vendors — Advanced Semiconductor Materials Lithography (ASML), Tokyo Electron, Kokusai Electric, Applied Materials, and Lam Research — accounted for 74% of the total IC equipment sales in the first half of 2024. ASML was the market leader in the wafer fabrication equipment segment, producing top-of-the-line extreme ultraviolet (EUV) lithography machines that are critical to producing the smallest and most powerful chips to support AI applications. Three weeks ago, ASML revealed that the number of machines it ordered in 3Q2024 was lower than expected, resulting in US$56 billion being wiped off its market cap, larger than Intel’s loss of US$30 billion in August.

In 3Q2024, China accounted for almost 50% of ASML’s total sales, purchasing US$2.8 billion worth of equipment, which is more than double its revenue from the US. This equipment can only be used for production of chips used mainly in consumer appliances such as refrigerators, phones, toys and automobiles. For comparison, ASML’s sales to Taiwan and South Korea were US$951 million each, where Taiwan is a leading producer of logic chips, while South Korea is a major manufacturer of memory chips. Investment in foundries has slowed, as companies realised that the EUV machines are very expensive. Each of the latest EUV machines cost US$350 million, equivalent to the price of an Airbus A350! As TSMC senior vice-president of business development Dr Kevin Zhang remarked, “I like the high-NA EUV’s capability, but I don’t like the sticker price.” Buoyed by export controls and market dynamics, ASML finds itself balancing the immediate revenue boost from China’s demand for less advanced machines with the slow uptake of cutting-edge machinery in Taiwan and South Korea. Despite this, analysts expect capital spending to likely increase again in 2025.

As ASML’s sales slow down, the back-end equipment sector is experiencing growth. Quarterly revenue grew 8.5% year on year, reaching US$1.3 billion in 2Q2024, driven by strong growth coming from wafer and die preparation and packaging equipment for advanced packaging solutions. The world’s leading back-end equipment suppliers — Hanmi, Hanwha, Semes, ASMPT, and Kulicke and Soffa (K&S) — together contributed 22% of the total IC equipment market. While front-end equipment sales are stronger, back-end equipment suppliers face fewer restrictions from export controls. Yole Group’s analysts forecast that back-end equipment revenue will reach US$1.74 billion in 1Q2025, with China as the largest buyer.

Malaysia also played a significant role in this segment of back-end equipment revenue. The Herfindahl-Hirschman Index, which measures market concentration, reveals that Malaysia hosts a sufficient number of vendors to sustain the supply of back-end equipment. This suggests that Malaysia has the ability to create a diverse and competitive equipment market, capable of supporting the needs of both local and foreign chipmakers. In 2022, Malaysia sold US$171 billion worth of industrial manufacturing equipment. Of this total, Malaysian Bursa-listed semiconductor manufacturing equipment suppliers, including Aemulus Holdings Bhd (KL:AEMULUS), Edelteq Holdings Bhd (KL:EDELTEQ), Elsoft Research Bhd (KL:ELSOFT, Greatech Technology Bhd (KL:GREATEC), Mi Technovation Bhd (KL:MI), MMS Ventures Bhd (KL:MMSV), Pentamaster Corp Bhd (KL:PENTA), TT Vision Holdings Bhd (KL:TTVHB), VisDynamics Holdings Bhd (KL:VIS) and ViTrox Corp Bhd (KL:VITROX), accounted for 34% of industrial machinery sales. China is not only the largest buyer of such machines from the West, but also one of the most attractive markets for Malaysian suppliers.

Despite harsh export controls implemented under the Biden administration, the semiconductor trade remains relatively stable. The return of Donald Trump as president-elect on Nov 5, 2024, raises some concerns about erratic decisions. In an interview in October with an American podcaster, Joe Rogan, Trump said that he did not like the CHIPS Act, and criticised the US CHIPS Act, saying that he would implement tariffs on chips from Taiwan if elected president. “You know, Taiwan, they stole our chip business … and they want protection,” Trump said.

Nevertheless, once Trump settles down, the semiconductor business in the short term should remain robust, as demand for powerful chips to drive artificial intelligence and military equipment and data centres needed by the great and middle powers would keep demand strong. In the medium term, there is worry about oversupply arising from the upturn in overall capacity. The market leaders seem to have their markets intact, whereas those with lagging technology may be the losers.

Tan Sri Andrew Sheng writes on Asian global issues. Loh Peixin is a research associate at the George Town Institute of Open and Advanced Studies, Wawasan Open University. The authors are engaged in a major study of the tech industry in Penang.

Source: The Edge Malaysia

Outlook for semiconductor manufacturing equipment market remains fair


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Amid current headwinds, the local manufacturing sector is anticipated to stabilise as it enters 2025 with the global electronics downcycle projected to bottom out.

According to the latest World Semiconductor Trade Statistics, the global semiconductor market is forecasted to grow by 12.5% next year, reaching an estimated valuation of US$687bil.

It said this growth is expected to be driven primarily by the memory and logic sectors, which are on track to each soar above US$200bil in 2025, representing an increase of more than 25% for memory and over 10% for logic compared to the previous year.

This bodes well for the Malaysian manufacturing sector, particularly the semiconductor business, industry experts noted.

OCBC senior Asean economist Lavanya Venkateswaran told StarBiz that the bank anticipates Malaysia’s manufacturing sector to stabilise in 2025, following the expected bottoming out of the global electronics downcycle in 2024.

“The growth rate for the global semiconductor market is expected to moderate to 12.5% year-on-year in 2025, versus 16% in 2024.

“This will likely imply a stabilisation of semiconductor production, even for Malaysia, by next year,” she added.

The manufacturing sector is one of the key drivers of the economy, which expanded by 5.3% in the third quarter of 2024.

The growth was primarily due to strong investment activity and continued improvement in exports.

Meanwhile, TA Research is optimistic about the outlook for domestic manufacturing, noting that the Purchasing Managers’ Index (PMI), a key indicator of the sector’s future business conditions, is expected to continue expanding at a sustained pace despite sentiment easing slightly.

The brokerage noted that the average PMI reading for the first 10 months of the year remained resilient, reflecting sustained improvement in the growth of the manufacturing sector.

“Looking ahead, new-order growth is expected to continue over the coming year, bolstering optimism about the 12-month outlook for manufacturing production.”

TA Research was referring to the improvement seen in the average PMI for the first 10 months of 2024, which stood at 49.4, compared with 47.7 during the same period last year and the 47.8 average recorded in 2023.

The seasonally adjusted S&P Global Malaysia manufacturing PMI held steady at 49.5 even though the sector experienced a slowdown in October with subdued business conditions, as production volumes were scaled back more significantly compared to September.

The manufacturing PMI gauges the prevailing economic trends in the sector. A reading above 50 signals expansion, while a reading below 50 indicates contraction.

Economist and Williams Business Consultancy Sdn Bhd founder Geoffrey Williams said the manufacturing PMI has been below 50 for the past five months, from June to October 2024, signalling a contraction in the sector.

However, Williams noted that manufacturing sales have been growing this year, after contracting from June to December last year.

He explained that sales in the first half of 2024 are likely to be sales from inventory stocks, while actual sales have slowed from July onward.

Given this trend, the signal is that manufacturing sales will continue to contract or will be sustained by inventory stocks in 2024, but may improve in 2025 as the PMI is only slightly below 50, he added.

“There may be some push from higher exports but the appreciation of the ringgit makes exports more expensive.

“Thus, any extra export sales will depend on global economic growth, which is likely to improve in 2025 but the picture remains cautious.”

Williams highlighted that headwinds for the manufacturing sector may arise from caution related to possible US tariffs, which might hold back sales until the situation becomes clearer.

On the whole, this might benefit Malaysia but many are still in a “wait and see” mode,” he said.

Commenting on the manufacturing PMI, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the index is a reflection of sentiment among the manufacturers, which has mostly remained below the 50-point threshold.

Generally, he said manufacturers are pessimistic because the cost of doing business is rising, such as logistics, raw material and labour costs.

On top of that, there is a sense of anxiety over the global environment, especially geopolitical tensions, which are affecting supply chains.

“However, judging from the manufacturing sector’s Industrial Production Index, production activities have picked up pace from a 2.1% growth in the first quarter of 2024 (1Q24) to 4.9% and 5.8% in 2Q24 and 3Q24, respectively.

“On that note, manufacturers have been busy. So, we have a situation where manufacturers remain guarded and with Trump helming the United States presidency, we can expect the PMI to remain muted,” he pointed out.

Therefore, he said the PMI for 2024 and 2025 could linger around 50, or slightly lower.

On the headwinds that could impact local manufacturing activities this year and next, Mohd Afzanizam said these challenges would be externally driven.

“Trump’s policies on tariffs, China’s slowdown and geopolitical risks (relating to Ukraine and in Gaza) are likely to wreak havoc on the global financial and commodities markets, which could impact local manufacturing activities,” he said.

OCBC’s Lavanya agreed, stating that the biggest risks to Malaysia would be from external factors.

“The potential imposition of tariffs by the United States on key trading partners, geopolitical risks and lower-than-expected demand for semiconductors are key challenges to Malaysia’s industrial production outlook,” she said.

Source: The Star

Manufacturing to stabilise in 2025


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In a world increasingly dominated by artificial intelligence (AI) and digital technologies, the Malaysian government also recognises that bridging the digital divide is crucial for equitable development across all segments of society.

Prime Minister Datuk Seri Anwar Ibrahim said while acknowledging Malaysia’s ability to attract huge investment in these areas, the government is also aware of the challenge of ensuring that its emerging economy remains competitive, equitable, and sustainable.

“If you want to ensure that an emerging economy succeeds, remains competitive, and sustainable, then it has to be through a quantum leap. And AI is the answer for that, for the matter of digital transformation.

“But there are also concerns that needs to be addressed. First, the digital divide. We can’t talk about the modern economy without trust, humanity, justice and democratisation of access,” he said at the Apec CEO Summit, in a session titled, “Opportunities and Challenges in the AI Revolution”, here on Thursday (Nov 14).

Other panellists in the session were Microsoft vice-president of data & AI, Zia Mansoor, Vobile chief executive officer Yangbin Wang, and Google vice-president, government affairs & public policy, Karan Bhatia.

Also present at the session were Foreign Minister Datuk Seri Mohamad Hasan, and International Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

The event that took place at the Grand National Theatre of Peru was moderated by Apec Business Council (ABAC) Canada member Jan De Silva.

Hence, while Malaysia has made significant strides in building its digital infrastructure, further investments are necessary to ensure that all citizens have access to the tools and resources that will allow them to thrive in the digital age. 

This requires a concerted effort to bring connectivity to remote areas, build digital literacy, and create opportunities for all Malaysians, regardless of their geographic location, said Anwar, who is also finance minister.

“All opportunities provided to urban areas must also be available to rural and heartland communities. It requires additional infrastructure investments and I don’t think we can avoid that,” he said.

Besides the infrastructure, which is more of a hardware in the ecosystem, the software part of it must be given equal priority, Anwar pointed out. 

“We have Islam as the majority of the population; we have Christians, Buddhists, Hindus and many others; so, we must ensure that digital technologies align with the nation’s values of humanity, justice, and ethics.

Therefore, Anwar highlighted that “the issue of data protection, the input that we provide or place into AI is pertinent”.

This includes safeguarding against biases in AI algorithms, ensuring transparency, and protecting citizens’ privacy, he stressed.

Hence, to ensure that AI technologies are developed and used responsibly, Malaysia seeks to develop a balanced approach that promotes innovation, while safeguarding human dignity and ethical principles.

He said while the West, particularly the United States and Europe, has been at the forefront of AI development, Malaysia is committed to ensuring that it can remain competitive without being overly reliant on any one region. 

This means adopting a neutral stance in choosing the best technologies and solutions, whether they come from the United States, China, Europe, or other parts of the world, Anwar said.

Malaysia’s approach will be centred on what is most beneficial for its people and economy, while also maintaining sovereignty over its digital future, he said, adding that the key to Malaysia’s strategy is the concept of “centrality”, which emphasises the country’s role as a major player in the global digital landscape. 

Anwar said Malaysia aims to be at the crossroads of innovation, drawing from the best practices and technologies from around the world, while maintaining control over its digital and technological future. 

Earlier, De Silva said Malaysia’s digital transformation journey has been truly impressive, attracting global attention and investment from leading technology giants, with digitalisation access exceeding 97% of the population.

“Your digital economy is so well positioned for remarkable growth,” she said when introducing Anwar at the hall.

De Silva was referring to investments of almost US$17 billion (RM76.29 billion) that have been coming in from global tech giants like Amazon, web services, Google, Microsoft, Oracle and others, as Malaysia forges ahead in its high-growth digital economy.

Source: Bernama

Anwar: Tech, AI is beyond just an access


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The second Malaysia Semiconductor IC Design Park in Cyberjaya, Sepang will be launched early next year, said Selangor Menteri Besar Datuk Seri Amirudin Shari.

Amirudin said the launch of the second integrated circuit (IC) design park was a follow-up to the successful establishment of such a park in Puchong by the Selangor Information Technology & Digital Economy Corporation (SIDEC) which successfully attracted the participation of seven local and international IC companies.

He said, the initiative was the result of close cooperation between the state government and the federal government.

“For that purpose, the Selangor government will contribute RM50 million, which is RM10 million a year from 2024 until 2029, while the federal government through the Ministry of Economy is estimated to channel RM100 million,” he said when tabling the Selangor Budget 2025 at the Selangor State Legislative Assembly here today.

At the same time, Selangor Digital School (SDS) will be upgraded to Advanced Semiconductor Academy of Malaysia (ASEM) which will develop an 80,000 square foot campus in the second IC design park, Amirudin said

Meanwhile, Amirudin said the Selangor AI Incubator Centre, which is a facility in the field of artificial intelligence (AI), will be developed with the first phase conceptualised as a technology training centre to be equipped with facilities for the AI incubator programme as well as offering specific education and certification programmes in the field.

He said the overall allocation for all these AI initiatives amounted to RM5 million, which reflected the commitment of the state government to prepare Selangor to enter the gates of AI.

“The state government is also always ready to cooperate with other AI service providers to expand the scope of the technology in Selangor,” he said.

Source: Bernama

Selangor MB: Second Malaysia Semiconductor IC Design Park to be launched early next year


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The state government is planning to introduce several initiatives under the Speed Selangor Policy next year, with a focus on emerging and advanced industries, aimed at streamlining processes and facilitating investor entry.

Menteri Besar Dato’ Seri Amirudin Shari said these efforts are in line with the administration’s objective of becoming a top choice for both domestic and international investors across Asia.

Amirudin added that the initiative can help Selangor create quality, dignified job opportunities more quickly.

“Every day and week saved is precious time for our workforce — whether they are youths, graduates, or Selangor residents already employed — to advance more quickly and contribute to strengthening the state’s economy.”

“In line with this, starting next year, the administration will introduce several initiatives under the Speed Selangor Policy, focusing on emerging industries,” he said when tabling the 2025 Selangor State Budget at the assembly here today.

“They include artificial intelligence (AI), supporting industries, semiconductors including electrical and electronics, the development of industrial parks, housing including affordable categories, aerospace, and advanced manufacturing.”

Amirudin said once focus is established on these industries, it will be expanded to involve all government processes to boost the ease of doing businesses in Selangor.

Among others, the Menteri Besar said the approval period for planning permits for industrial areas will be reduced from the current three-and-a-half months to 14 days, provided the specified criteria are met.

“For fast-track planning permit applications, all local councils will standardise their procedures, and approvals will be issued within seven days. This policy will be implemented by April 2025 at the latest.

“Processes and procedures that can be enhanced through the use of AI technology and automation will be expedited,” he said.

Meanwhile, the Industrial Green Lane approach for planned industrial areas will allow construction projects that are 80 per cent complete on site to be granted a business licence within 24 hours after the Certificate of Completion and Compliance is issued.

Separately, Amirudin said the state will develop a high-impact project management system, with an allocation of RM600,000, to ensure the success of projects initiated by the state government or those done in collaboration with private entities.

“This system will monitor every project phase, from the announcement stage, the agencies involved, allocated budgets, to planning and implementation, including any issues causing delays.

“This initiative will enhance the administration’s ability to manage high-impact projects as outlined in the First Selangor Plan and any other future plans.

“The system will also serve as a reporting platform to enhance government accountability to all stakeholders, providing an official, accurate, and reliable source of information on state government projects.”

Amirudin added that the state government has also allotted RM523,800 to enhance the state’s online tender system.

Source: Selangor Journal

Speed Selangor Policy to drive investment, create more jobs — MB


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Malaysia’s strategic location, coupled with forward-looking and progressive policies, makes it an ideal hub for business and collaboration, especially for French stakeholders aiming to tap into the Asean market, said Malaysia’s Ambassador to France, Datuk Eldeen Husaini Mohd Hashim.

Positioned in the heart of South-east Asia, he noted that Malaysia boasts a robust and diversified economy, offering unparalleled access to the rapidly growing Asean bloc.

“Having said this, there is a need for deeper engagement with our French counterparts to enhance understanding of the South-east Asian region through the Asean bloc.

“As Malaysia prepares to assume the Asean chairmanship in 2025, we (the embassy) are committed to championing this vision,” he told Bernama, in conjunction with a networking event held in Paris, France, to celebrate Malaysia’s heritage and prospects in the country.

Guided by the Madani concept, Eldeen said the embassy is committed to driving inclusive and sustainable growth that ensures no one is left behind.

He said the highlight of the event was the launch of the Malaysia Business Club, an initiative aimed at fostering stronger business ties between Malaysia and France.

“This initiative provides a dedicated platform for Malaysian and French businesses to connect, explore opportunities, and foster cross-sector collaborations.

“Positioned as a precursor to a future formal association, the club aims to strengthen bilateral trade and investment ties,” Eldeen said.

Under the theme “Inclusivity and Sustainability”, he pointed out that the event served as a prelude to Malaysia’s Asean chairmanship in 2025 and underscored Malaysia’s pivotal role in promoting Asean’s collective vision, while simultaneously strengthening bilateral relations with France.

Eldeen added that the event was held yesterday in collaboration with the Mairie du XVI (City Council of the 16th Arrondissement) and was attended by approximately 200 guests, including Excellency Mayor Jeremy Redler, members of parliament, officials from the National Assembly and Ministry of Foreign Affairs France (MFA), French business leaders, cultural practitioners, and other government officials.

On Sept 12, Bernama reported that the Malaysian Embassy in Paris plans to establish a business association for Malaysian entrepreneurs in France by the end of this year to build business ties and pave the way for new opportunities with one of Europe’s largest economies.

Source: Bernama

Malaysia aims to strengthen French ties with new ‘Business Club’ initiative, says ambassador


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The Bandar Teknologi Maju Perlis project in Chuping, set to begin next year, is expected to create around 2,000 direct job opportunities in technology fields.

Communications Minister Fahmi Fadzil said the project, costing US$11 billion (US$1 = RM4.47), is expected to begin phased operations by mid-2027.

He added that the project would also empower the country’s Technical and Vocational Education and Training (TVET) sector through collaborations with public institutions of higher education such as Universiti Malaysia Perlis (UniMAP) and other TVET institutions.

“Our youth will gain skills to support the operations of this technology city while also becoming proficient in utilising AI (artificial intelligence) technology,” he told a press conference here today.

Earlier, Fahmi had accompanied the Raja Muda of Perlis, Tuanku Syed Faizuddin Putra Jamalullail, who attended an agreement signing ceremony on Bandar Teknologi Maju Perlis, a joint venture between Sirage Capital Sdn Bhd and Skyvast Sdn Bhd.

Fahmi also said that the project would include infrastructure to accommodate an up to 1.25 Gigawatts (GW) AI data centre, which would operate off-grid, not relying on existing power networks.

“They will utilise energy sources such as solar, battery storage, or gas turbines to ensure the 1.25GW data centre can operate efficiently,” he explained.

“This strategic investment in Chuping is unique because it is one of the places with the highest sunlight exposure in Malaysia, supported by the suitable topography for the development of Bandar Teknologi Maju Perlis,” he explained.

According to Fahmi, the off-grid concept is expected to attract many companies aiming to ensure their investments receive green ratings.

He said the Communications Ministry is confident that this development would contribute to the country’s digital economy transformation, particularly in Perlis.

“This is a game-changer, a project that will put Perlis on the global map for AI data centres. The Ministry will provide support, including discussions on aspects like submarine cables to facilitate the construction of data centres in Perlis,” he said.

Source: Bernama

Bandar Teknologi Maju Perlis to offer over 2,000 jobs in technology fields – Fahmi


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Prime Minister Datuk Seri Anwar Ibrahim has conveyed the government’s readiness to collaborate with and assist the new Hong Kong Economic and Trade Office (HKETO) in Kuala Lumpur, whose establishment was announced by Hong Kong early this year.

“This will further strengthen the ties and cooperation between Malaysia and the Hong Kong Special Administrative Region (HKSAR),” he told reporters after a bilateral meeting with HKSAR chief executive John Lee Ka-chiu here on Friday.

During the meeting, the two leaders had the opportunity to consider collaborations in the areas of investment, trade, education, tourism, semiconductor, information technology, financial services and people-to-people relations, he added.

Hong Kong also invited Malaysia to learn about transportation technology and participate in its science, technology and innovation hub development project, including a science park.

Also present during the meeting were Foreign Minister Datuk Seri Mohamad Hasan and Malaysian Ambassador to Peru Ahmad Irham Ikmal Hisham.

Anwar is on an official visit to Peru where he is attending the Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Week. During the visit, bilateral meetings were also scheduled with leaders of some APEC member economies.

In February this year, the Foreign Ministry said in a statement that the move to open the HKETO in Kuala Lumpur highlights the strong economic and trade ties between the HKSAR and Malaysia.

The decision for this initiative came after Anwar, who is also the Finance Minister, made the proposal to Lee during their bilateral meeting in Putrajaya in July 2023.

“Being strategically located in Southeast Asia, Malaysia continues to solidify its position as a key partner for Hong Kong – as the two sides seek to further expand and deepen the existing trade, investment, and economic collaborations,” the statement said.

The strength of this partnership is evident in the robust trade figures between the two sides.

In 2023, Malaysia and Hong Kong enjoyed total trade of RM105.09 billion (US$23.03 billion) — comprising exports valued at RM89.84 billion (US$19.69 billion) and imports worth RM15.25 billion (US$3.34 billion) — with the trade balance being in Malaysia’s favour.

Both sides have been actively engaging one another during the exchange of high-level visits.

“The opening of the HKETO in Kuala Lumpur not only signifies a new chapter in Malaysia-Hong Kong relations, but also adds significance to the 50th anniversary of Malaysia-China diplomatic ties,” the statement said.

Source: Bernama

Malaysia prepared to work with new Hong Kong Economic and trade office, says PM


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