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Analysts at MIDF Amanah Investment Bank Bhd (MIDF Research) see a potential rise in foreign direct investments (FDI) for data centres as demand in the tech sector continues to surge.

In a report, it said: “We opine the robust FDI growth in ICT is highly related to data center and 5G rollout projects.”

It predicted the electrical and electronics (E&E) sector would likely remain in radar and in fact contribute higher following the New Industrial Master plan (NIMP) 2030 agenda.

“The blueprint aims to expand Malaysia’s semiconductor industry to Integrated Circuit Design and Wafer Fabrication.

“According to MITI, Malaysia’s strengths for semiconductor are the back-end segments; electronics manufacturing services and assembly and testing. Apart from that, the blueprint targets to deepen the specialty chemical vertical and launch locally made electric vehicles,” it said.

The research team also opined that Malaysia’s industrial landscape is on a promising trajectory, with significant developments across key states.

“Selangor stands out with ambitious projects such as the Selangor IC Design Park, Selangor International Aeropark and the Green Industrial Park. Johor is experiencing robust growth with ventures like the Johor-Shenzen Industrial Park and Eco Business Park VI.

“Negeri Sembilan is positioning itself for long-term success with initiatives like the SPD Tech Valley and Malaysia Vision Valley. Also, Pulau Pinang is enhancing its high-tech sector with the Penang Science Park South and Batu Kawan Industrial Park.

“In East Malaysia, Sabah’s

20,000-acre International Industrial Park and Sarawak’s Bintulu Industrial Park reflect substantial regional advancements.

“These strategic developments underscore Malaysia’s dynamic and forward-looking industrial future,” it highlighted.

Meanwhile, the global trade war between China and US is also expected to be beneficial to exporting countries such as Malaysia.

MIDF Research noted that prior to 2012, the re-exports to total exports ratio stayed below 10.0 per cent.

After one year under former US President Donald Trump, Malaysia’s re-exports ratio hit above 20.0 per cent for the first time in January 2018.

The re-exports grew by 25.3 per cent y-o-y in 2017 and +39.5 per cent y-o-y in 2018. In comparison, domestic exports only expanded by +17.7 per cent y-o-y and +1.5 per cent y-o-y respectively.

“Looking ahead, if there is a change of leadership in the US by end of this year, we expect greater intensity of existing global trade war.

“As for Malaysia, re-exports are poised to rise strongly benefiting from potential increase of global and regional distribution hubs,” MIDF Research opined.

By product, it noted that there are four products that make about 90.0 per cent of the reexports namely Machinery & Transport Equipment, Mineral Fuels, Manufactured Goods and (iv) Chemicals.

Among the four, it pointed out that Mineral Fuels and Machinery & Transport Equipment have the large re-exports rate of 36.5 per cent and 27.8 per cent in 2023 respectively.

“We may see re-exports activity improve above 10.0 per cent for Manufactured Goods if global trade war intensified,” it said.

All in, MIDF Research opined that looking ahead, we might see a stronger pick-up in export-oriented sectors such as manufacturing, mining and agriculture in 2H24 amid improving global trade activities and stable global commodity prices.

It also foresee a stronger pickup in export-oriented sectors such as manufacturing, mining and agriculture in 2H24 amid improving global trade activities and stable global commodity prices.

Source: Borneo Post

Data centres, external trade revival key FDI supporters

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At least five Bursa Malaysia-listed companies stand to benefit from the official visit by China’s Premier Li Qiang to Malaysia, which is expected to bring more foreign direct investments (FDI) from China into Malaysia, further relaxations in visa requirements and new trade agreements inked, according to Maybank Investment Bank Bhd (Maybank IB).

The five potential beneficiaries are MyEG Services Bhd (KL:MYEG), EP Manufacturing Bhd (KL:EPMB), Eco World Development Group Bhd (KL:ECOWLD), Dialog Group Bhd (KL:DIALOG), and AirAsia X Bhd (KL:AAX).

Maybank IB observed that in the past, Chinese investments into Malaysia were mostly established in and around the time Chinese President Xi Jinping visited Malaysia in October 2013 and when former Chinese Premier Li Keqiang visited Malaysia in November 2015.

When Xi Jinping visited Malaysia in October 2013, Maybank IB noted that the president touted, among other things, a proposed High Speed Rail (HSR) connecting Kuala Lumpur and Singapore, the Malaysia-China Kuantan Industrial Park, and the development of northern Malaysia. This was followed by maiden joint military exercises by both countries in September 2015.

Meanwhile, following Li Keqiang’s visit in November 2015, FDIs from China to Malaysia surged in 2016 and 2017, as Malaysia granted visa-free access to Chinese visitors from March 2016 onwards, and China Communications Construction Company (CCCC) commenced construction of the East Coast Rail Link (ECRL) in August 2017, Maybank IB noted.

With Li Qiang commencing his visit to Malaysia on Tuesday, Maybank IB posits that MYEG’s blockchain-based ZTrade platform could gain substantial traction following the signing of official documentation between Malaysia’s Ministry of Finance and the General Administration of Customs China on Wednesday.

ZTrade enables the digitalisation of trade clearance and tariff computation to cut processing time by up to 50%.

“We have yet to impute for potential ZTrade earnings accretion into our forecasts for MYEG, as cross-border trade volume is harder to ascertain (versus publicly available trade value statistics). Similar to MYEG’s Zetrix token sales business, we expect ZTrade’s net operating margins to be in the 90-95% range,” Maybank IB said in a note on Wednesday.

Meanwhile, EP Manufacturing, which recently expanded upstream, is collaborating with Chinese original equipment manufacturers (OEM) Great Wall Motor and Beijing Automotive Group Co to serve as their contract assembler in Malaysia for right-hand drive vehicles, for local and export markets.

According to Maybank IB, operations at EP Manufacturing’s assembly plant are set to begin in the second half of 2024, with an initial capacity of 6,000 units per annum, projected to reach 30,000 units per annum as EP Manufacturing secures more OEM assembly contracts.

“According to the company, this venture is expected to boost EP Manufacturing’s margins, with contract assembly offering higher margins compared to its traditional automotive parts manufacturing (teens versus low single digits in percentage terms). The vertical integration is anticipated to create synergies, enabling EP Manufacturing to supply parts to the vehicles it assembles,” Maybank IB wrote.

On the other hand, the investment bank sees Eco World’s exposure in the industrial property segment benefitting from China’s establishment of more factories and industrial facilities.

Specifically for Dialog, Maybank IB pointed to Rongsheng Petrochemical’s commitment to an estimated total investment of up to RM80 billion for a refining facility in Pengerang, Johor.

Maybank IB said that this will benefit Dialog due to a need for local EPCC expertise and storage of crude/refined/distilled products, as the company would be able to provide long-term tank terminal services to Rongsheng, should the investment come to pass.

“Based on our calculation, every RM6.5 billion tank terminal investment (long-term, independent, average utilisation rate assumptions of 87.5%, Ebitda margins of 80%) by Rongsheng will lift Dialog’s equity value by RM4.2 billion, which will raise our target price by 74 sen per share from RM3.13 currently,” it said.

Lastly, Maybank IB said AAX, which has the largest exposure to Chinese destinations among Malaysian airlines, may benefit from the potential permanent exemption of visa requirements for Chinese visitors.

Malaysia exempted visa requirements for Chinese visitors on Dec 1, 2023, which will run until Dec 31, 2025. Neighbouring Thailand, meanwhile, permanently exempted visa requirements for Chinese visitors on March 1, 2024. “Chinese visitors are known to respond favourably to visa exemptions.” Maybank IB noted.

“That said, it could charge higher fares to and from China. We estimate that every RM5 increase in average fare will accrete RM16 million-RM17 million per annum to core net profit and 26 sen to our target price,” it added.

Li Qiang’s visit to Malaysia, his first trip to the country since assuming office in March last year, coincides with the 50th anniversary of the establishment of diplomatic relations between Malaysia and China, following the signing of the Joint Communiqué between the second prime minister, Tun Abdul Razak Hussein, and then Chinese premier Chou En Lai on May 31, 1974.

Meanwhile, Bernama reported that a total of 14 Memoranda of Understanding and Agreement (MOUs/MOAs), protocol and joint statement involving nine ministries have been exchanged between Malaysia and China on Wednesday, witnessed by Prime Minister Datuk Seri Anwar Ibrahim and China Premier Li Qiang.

Nine ministries involved are the Ministry of Investment, Trade and Industry (MITI); Finance; Agriculture and Food Security; Housing and Local Government; Home Affairs; Science, Technology and Innovation (MOSTI); Higher Education (MOHE); Tourism, Arts and Culture; and Communications.

On behalf of MITI, two MOUs were exchanged, on strengthening investment cooperation in the digital economy and promoting investment cooperation in green development.

Besides the MOUs, Malaysia and China also inked the second cycle of the Malaysia-China five-year programme for economic and trade cooperation to deepen further linkages between industries in priority sectors like high-level manufacturing and digital economy.

The programme would also deepen cooperation in robotics, entrepreneur development, innovation and startup, as well as research and development in agriculture and primary industries.

For the Communications Ministry, two MOUs were exchanged. The first is with the China Media Group on cooperation in the field of media, while the second MOU is to strengthen cooperation in the postal field between the Malaysian Communications and Multimedia Commission and the China State Postal Bureau.

Under the Finance Ministry, the document exchanged was a joint statement on national single window for cross border trade initiative, while under the MOHE, the MOU on cooperation in the field of higher education while under MOSTI, on science and technology people-to-people exchange programme.

As for the Housing and Local Government Ministry, the MOU exchanged was for the fields of housing and urban development.

Earlier, both leaders had a closed door meeting to discuss bilateral relations between Malaysia and China and exchanged views on regional and international issues of mutual interests.

Next, Anwar will be hosting a luncheon for Li and his Chinese delegation before departing to Shangri-la Hotel, Kuala Lumpur.

Li will also have an audience with His Majesty Sultan Ibrahim, King of Malaysia on Wednesday.

Both Anwar and Li will also attend the East Coast Rail Link (ECRL) groundbreaking ceremony in Gombak and conclude their schedule on Wednesday with a dinner celebration for the 50th anniversary of diplomatic relations.

China has been Malaysia’s largest trading partner for 15 consecutive years since 2009. Last year, total trade with China was valued at RM450.84 billion (US$98.8 billion), contributing to 17.1% of Malaysia’s global trade.

Source: The Edge Malaysia

MyEG, EP Manufacturing, Eco World, Dialog, AAX seen reaping benefits of China premier’s visit to Malaysia

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The recent factory launch by Chery Auto Malaysia Sdn Bhd in Shah Alam, first of its kind in Asean, signifies Selangor as a prime destination for trade and investment, said Ng Sze Han.

The state executive councillor for investment, trade, and mobility said the Chery Corporate Malaysia Factory, along with national carmaker Proton’s manufacturing plant in Shah Alam, emphasises Selangor’s pivotal role in the region’s automotive industry.

“Selangor continues to shine as a dynamic hub in Southeast Asia, as demonstrated by the recent launch of Chery Malaysia’s factory in Shah Alam.

“The facility is pioneering smart transportation and intelligent manufacturing. This initiative underscores Selangor’s role in driving a new interconnected lifestyle for global consumers,” said Ng in a Facebook post after the factory launch yesterday.

Also in attendance were Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz together with China’s Industry and Information Minister Jin Zhuanglong.

The plant is the brand’s first dedicated CKD, or assembly facility, and it is tasked with producing the Jaecoo J7 All-Wheel Drive and Two-Wheel Drive as the inaugural models.

It is reported the factory will create some 500 new jobs, with the potential of growth in line with market demands.

Highlighting the 50th anniversary of Malaysia-China bilateral ties this year, Ng said continued industrial collaboration between the two nations reflects the strong enthusiasm for further business cooperation and exchange.

“The continued synergy between Selangor and China, particularly in emerging industries, highlights the strong enthusiasm for further business cooperation and exchange, reinforcing Selangor’s status as a gateway to Asean,” he added.

Meanwhile, Chery Automobile Co Ltd chairman Yin Tongyue said Malaysia remains an important market for the company’s long-term growth.

“Malaysia is a very important market for Chery. Our vision for the Malaysian market is to grow with our local partners and customers for the long term,” he said, as reported by automotive news portal AutoBuzz.

Strategically located in the Shah Alam industrial zone, the Chery Corporate Malaysia Factory is close to local manufacturers critical to its supply chain.

Its proximity to Port Klang, the country’s busiest port and the second-largest in Southeast Asia, will help the automaker access Asean region exports in the future.

Chery also operates another facility in Kulim, Kedah, where it assembles the Chery Omoda 5 and Tiggo 8 Pro SUV models.

To date, Chery has created over 1,000 new jobs nationwide.

Source: Selangor Journal

Selangor remains dynamic hub as Chery opens first Asean factory in Shah Alam

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The construction work for the 665-kilometre-long East Coast Rail Link (ECRL) project has been running smoothly and reached 67% completion despite several hiccups and challenges throughout its development and implementation phases.

Aimed at improving connectivity and stimulating economic development, the project traversing Kelantan, Terengganu, Pahang and Selangor, is set to be an economic game changer especially in boosting Malaysia’s transportation network. It is expected to be completed by the end of 2026.

The massive infrastructure project, which connects the east and west coasts of the country with 20 stations, is also a testament to the strong bilateral relationship between Kuala Lumpur and Beijing.

The project which cost RM50.2 billion notched another milestone with the groundbreaking ceremony for the ECRL Gombak Integrated Transport Terminal (ITT) Station officiated by Prime Minister Datuk Seri Anwar Ibrahim and the visiting China’s Premier Li Qiang, today.

Speaking to Bernama, Malaysia Rail Link Sdn Bhd Chairman Tan Sri Mohd Zuki Ali said the presence of Li Qiang at the groundbreaking ceremony reflects a strong bilateral relationship between two longstanding partners which ensures the successful implementation of the project under Beijing-led Belt and Road Initiative (BRI).

It is the first groundbreaking ceremony held in Selangor and also marks the beginning of construction for the first station for the ECRL line in the state, which will have a total of five stations, he said.

“This station will serve as the main gateway to the capital city, facilitating ECRL users’ travel from Klang Valley to the East Coast states or vice versa. ECRL will also be connected to the Kelana Jaya LRT Line at Gombak Integrated Terminal, providing a better network and greater passenger capacity.

“The ECRL line, from Kota Bharu in Kelantan to Gombak in Selangor is expected to be completed by the end of 2026 and operational by January 2027. Travelling time between Kota Bharu to the Klang Valley is anticipated to be around four hours compared to seven hours or more by road during festive seasons. Overall, the progress of the ECRL project is at 67%,” he said.

Speaking to the media in April, Transport Minister Anthony Loke said the ECRL network in Selangor which spans nearly 120 kilometres will have five stations namely Gombak, Kapar and Jalan Kastam Integrated Terminals for passengers only while the Bandar Serendah and Puncak Alam stations are connecting stations for passengers and cargo.

The construction phase for the ECRL project began with the groundbreaking ceremony in Kuantan, Pahang in August 2017, but the work was suspended in 2018 for financial reasons before work for the project resumed again in July 2019 at a lower cost.

The ECRL connects state capitals, major urban centres, industrial hubs, ports, airports, and tourism zones and interchanges with existing railway lines in Peninsular Malaysia.

The project is owned by MRL, a wholly owned subsidiary of the Minister of Finance (Incorporated), while China Communications Construction Company (CCCC) serves as the main contractor for the project.

Malaysia Institute of Transport (MITRANS) Director Prof Madya Ts Dr Wan Mazlina Wan Mohamed told Bernama that ECRL is a crucial national infrastructure project to boost regional development, connectivity and improving public transit across its electrified railway network, connecting urban and rural areas.

It also reduces environmental pollution by transitioning from the use of fuel-based vehicles to an electrified rail network and provides a safe alternative mode of public transport for long-distance journeys, said Wan Mazlina.

Meanwhile, Investment, Trade and Industry Minister Tengku Datuk Seri Tengku Zafrul Abdul Aziz was quoted by the media in March this year as saying that ECRL serves as a catalyst for socioeconomic growth and is expected to increase the country’s Gross Domestic Product by 3.78% by 2047.

“The ECRL is poised to be a game changer for Malaysia, linking us more closely to the Pan-Asia railway network and enhancing our connectivity with ASEAN and Eurasia regions,” said Tengku Zafrul in his keynote address at the Seminar on East Coast Rail Link – Economic Accelerator Project (ECRL–EAP) Business and Investment Opportunities.

Meanwhile, Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said that, once completed, the ECRL project will benefit the real estate sector, among others, due to the effects of urbanisation and the increase in property prices.

Malaysian Investment Development Authority (MIDA) in April said the ECRL-EAP is anticipated to generate RM1.4 trillion for Malaysia’s economy by 2047 with a focus on industrial parks, logistic hubs and transit-oriented developments.

Given that the project is the largest ever to be undertaken along the East Coast alignment, it would be ideal for companies to seize opportunities that arise, with areas that could be further explored including renewable energy; sustainability products and services; education and training centres, said MIDA.

Source: Bernama

ECRL, a game changer for Malaysia, reaches 67% completion

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Malaysia and China have agreed to implement another cycle of a five-year programme for economic and trade cooperation, which was first established in 2013, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

The programme, which will run from 2024 to 2028, aims to deepen cooperation in existing areas such as trade and investment, manufacturing, agricultural infrastructure, the digital economy, logistics, and the development of small and medium enterprises.

It also seeks to promote collaboration in new areas, including innovation, start-ups, and financial services.

To strengthen ties between the two countries, Tengku Zafrul and China’s Minister of Commerce Wang Wentao signed and exchanged three key documents today, witnessed by Prime Minister Datuk Seri Anwar Ibrahim and Chinese Premier Li Qiang.

The first document signed relates to the initial Malaysia-China Five-Year Programme for Economic and Trade Cooperation in 2013, highlighting that the programme had significantly boosted bilateral trade and deepened economic cooperation.

This includes making China Malaysia’s top trading partner since 2009 and one of Malaysia’s leading sources of foreign direct investments.

The Five-Year Programme for Economic and Trade Cooperation (2024-2028) encourages participation from businesses in other countries, as well as from international multilateral organisations and financial institutions.

Additionally, two new Memoranda of Understanding (MoU) were signed to increase high-quality investment in the digital and green economies.

Under the MoU on digital economy, both countries aim to explore cooperation in digital infrastructure, including communication networks, smart infrastructure, and smart cities, enabled by technologies such as artificial intelligence and 5G connectivity in sectors like manufacturing, transportation, business, finance, education, and healthcare.

Meanwhile, the MoU on green development seeks to explore cooperation in clean energy, new energy vehicles, green finance, sustainable infrastructure construction and green technology.

This cooperation includes research and development and the establishment of scientific and technological innovation platforms to accelerate both countries’ green transformation.

“Malaysia and China are longstanding partners, bound by a rich shared history of cooperation that has successfully translated into strong trade and investment ties.

“The signing of the three documents on economy and trade, digital economy and green economy underscore our mutual commitment to establish stable, reliable and resilient partnerships for our businesses and economy to grow,” said Tengku Zafrul.

He added that the Investment, Trade and Industry Ministry (MITI) would work closely with China’s Ministry of Commerce and its stakeholders to fully realise the outcomes of these cooperation arrangements.

MITI also welcomes the Malaysia-China cooperation on establishing a single window system to facilitate cross-border trade by streamlining trade regulatory processes and simplifying documentation.

This system will enable the seamless digital exchange of trade-related information between customs authorities in both countries.

Such digital exchange would be enabled using leading-edge technologies, including artificial intelligence and blockchain to ensure real-time, seamless and accurate exchange of data, while also expanding the spectrum of trade facilitation services to importers and exporters.

“The single window trade initiative between Malaysia and China is a strategic step towards enhancing Malaysia’s trade facilitation capabilities and is expected to significantly expedite and streamline the movement of goods while reducing the administrative burden for businesses.

“This will not only support bilateral trade growth, but also nurture economic resilience between Malaysia and China,” said Tengku Zafrul.

He added that MITI is committed to working closely with the Ministry of Finance and China’s General Administration of Customs to ensure the successful implementation of this single window interoperability to foster a more efficient, transparent, secure and resilient trade environment.

Source: Bernama

Malaysia-China to continue boosting economic, trade cooperation – MITI

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China will work with Malaysia to increase synergy of development strategies, fully leverage complementary strengths, and promote solid progress in major projects like the East Coast Rail Link and Two Countries, Twin Parks, said Chinese Premier Li Qiang on Wednesday.

Li said China would also expand trade and investment with Malaysia, broaden cooperation in areas such as logistics, new energy, artificial intelligence, digital economy and railway equipment, as well as step up cooperation on poverty reduction, to better achieve mutual benefits.

Li arrived in Malaysia for an official three-day visit on Tuesday, the third and last leg of his eight-day tour that has taken him to New Zealand and Australia.

“The two countries also need to deepen tourism, education, youth, sub-national, people-to-people and cultural exchanges, and further facilitate cross-border travel between the two sides,“ said Li in a statement.

The statement was released by China’s Ministry of Foreign Affairs.

It said China is also ready to enhance multilateral coordination with Malaysia to jointly carry forward the Five Principles of Peaceful Coexistence and the Asian values of peace, cooperation, inclusiveness and integration; uphold ASEAN centrality in regional cooperation, and advance high-quality implementation of the Regional Comprehensive Economic Partnership (RCEP).

China is also committed to conclude negotiations for Version 3.0 of the China-Asean Free Trade Agreement (CAFTA) as soon as possible to make more positive contributions to peace, stability, prosperity and development in the region and the wider world, it added.

Source: Bernama

China to work with Malaysia to boost synergy of development strategies: Premier Li Qiang

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A total of 14 memoranda of understandings, agreements (MoUs/MoAs), protocol and joint statement involving nine ministries have been exchanged between Malaysia and China today, witnessed by Prime Minister Datuk Seri Anwar Ibrahim and China Premier Li Qiang.

The documents were exchanged during Li’s official visit to Malaysia, which also marked his first visit to the country as premier, in conjunction with the 50th anniversary of diplomatic relations between Malaysia and China. He is here for a three-day official visit beginning Tuesday.

Nine ministries involved are the Ministry of Investment, Trade and Industry (Miti); Finance; Agriculture and Food Security; Housing and Local Government; Home Affairs; Science, Technology and Innovation (Mosti); Higher Education (MOHE); Tourism, Arts and Culture; and Communications.

On behalf of Miti, two MoUs were exchanged, on strengthening investment cooperation in the digital economy and promoting investment cooperation in green development.

Besides the MoUs, Malaysia and China also inked the second cycle of the Malaysia-China five-year programme for economic and trade cooperation to deepen further linkages between industries in priority sectors like high-level manufacturing and digital economy.

The programme would also deepen cooperation in robotics, entrepreneur development, innovation and startup, as well as research and development in agriculture and primary industries.

For the Communications Ministry, two MoUs were exchanged. The first is with the China Media Group on cooperation in the field of media, while the second MoU is to strengthen cooperation in the postal field between the Malaysian Communications and Multimedia Commission and the China State Postal Bureau.

Under the Finance Ministry, the document exchanged was a joint statement on national single window for cross border trade initiative, while under the MOHE, the MoU on cooperation in the field of higher education while under Mosti, on science and technology people-to-people exchange programme.

As for the Housing and Local Government Ministry, the MoU exchanged was for the fields of housing and urban development.

Earlier, both leaders had a closed door meeting to discuss bilateral relations between Malaysia and China and exchanged views on regional and international issues of mutual interests.

Next, Anwar will be hosting a luncheon for Li and his Chinese delegation before departing to Shangri-la Hotel, Kuala Lumpur.

Li will also have an audience with His Majesty Sultan Ibrahim, King of Malaysia today.

Both Anwar and Li would also attend the East Coast Rail Link (ECRL) groundbreaking ceremony in Gombak and conclude their schedule today with a dinner celebration for the 50th anniversary of diplomatic relations.

China has been Malaysia’s largest trading partner for 15 consecutive years since 2009. Last year, total trade with China was valued at RM450.84 billion (US$98.80 billion), contributing to 17.1 per cent of Malaysia’s global trade.

To recap, the diplomatic relations between the two nations was established by the Joint Communiqué signed by Malaysian Prime Minister Tun Abdul Razak and Chinese Premier Chou En Lai on May 31, 1974.

Source: Bernama

14 MoUs/MoAs exchanged between Malaysia and China

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China said it was willing to study a plan to connect Malaysia’s US$10-billion (RM47-billion) East Coast Rail Link (ECRL) to other China-backed railway projects in Laos and Thailand, potentially expanding Beijing’s Belt and Road initiative across Southeast Asia.

Chinese Premier Li Qiang, who is on a three-day visit to Malaysia, said on Wednesday the proposal would make the central line of a proposed Pan-Asia Railway, running from Kunming in China to Singapore, a reality.

“This will better promote the construction of new international land and sea trade corridors, enhance regional connectivity, and deepen the building of the Asean community,” Li said.

Li was speaking during a ground-breaking ceremony at a construction site for the ECRL — a 665km railway that will link Peninsular Malaysia’s east and west coasts by the end of 2026. Malaysia’s government said in March it would consider extending the China-backed project to its border with Thailand.

Li is on the third leg of a trip that has included New Zealand and Australia, as China looks to expand influence and investments in the Asia-Pacific region amid an ongoing rivalry with the US.

He met Malaysian Prime Minister Datuk Seri Anwar Ibrahim in the administrative capital of Putrajaya, following his arrival in Kuala Lumpur on Tuesday for a visit to mark 50 years of diplomatic ties between the two countries.

After Wednesday’s closed-door meeting, Li and Anwar witnessed the signing of more than a dozen pacts, including renewing a five-year programme to collaborate in areas such as trade and investment, agriculture, manufacturing, infrastructure and financial services, a statement after the meeting showed.

The programme, which will expire in 2028, was first introduced in 2013.

Fresh durian imports

Prime Minister Datuk Seri Anwar Ibrahim and Chinese Premier Li Qiang having durians on Wednesday. (Photo credit: Anwar’s Facebook page)

China also agreed to allow imports of fresh durian from Malaysia after it meets sanitary requirements, the statement added.

Malaysia, one of the world’s biggest producers of the spiky, smelly fruit, was previously allowed to ship only the whole frozen fruit and its products to China, with exports valued at RM1.19 billion in 2023.

The two countries also vowed to review visa-free travel arrangements set to expire in coming months.

China has been Malaysia’s largest trading partner since 2009, and the foreign ministry said total trade was valued at US$98.9 billion in 2023.

Anwar has pledged to remain neutral on China’s geopolitical rivalry with the US. Malaysia has announced large investments by companies from both countries this year, including from China’s ByteDance and US tech giants Google and Microsoft.

Anwar has said Malaysia considered China an important trading ally and accusedsome Western powers of “China-phobia”, amid ongoingclashes between neighbouring the Philippines and China in the disputed South China Sea.

China claims almost the entire South China Sea, including parts claimed by the Philippines, Brunei, Malaysia, Taiwan and Vietnam.

Anwar and Li on Wednesday agreed that China and relevant countries from the 10-member Association of Southeast Asian Nations (Asean) should independently handle the South China Sea issue, according to a report by Chinese news agency Xinhua.

The two leaders also pledged to work towards an early conclusion of a free trade agreement between China and Asean, Xinhua reported.

Source: The Edge Malaysia

China eyes plan to connect Southeast Asian rail links, including ECRL

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Joining intergovernmental organisation BRICS (Brazil, Russia, India, China and South Africa) can attract more foreign investments to Malaysia amid the intensifying economic race among global superpowers, say analysts.

Experts also said that by being part of BRICS, Malaysia could make its voice louder at the global stage.

Principal adviser for the Pacific Research Centre of Malaysia Dr Oh Ei Sun said trade and investments are urgently needed by Malaysia to boost its economy and it is only natural to join BRICS for that purpose.

“The US and other Western powers are always welcome to double their investments and trade volumes with Malaysia in order to achieve their desired goal of prying Malaysia away from China,” said Dr Oh.

Nusantara Academy for Strategic Research senior fellow Dr Azmi Hassan said when BRICS was first established in 2006, it was to counter and balance decisions made by the International Monetary Fund, World Bank and the Group of 7 (G7).

“These three bodies are basically controlled by developed nations from mostly the northern hemisphere and the West. Therefore, Malaysia has no say in decisions made by these organisations.

“It is not that we are siding with China or Russia, but we need a platform where we can voice our opinions,” said Dr Azmi.

Malaysian Institute of Economic Research head of research Dr Shankaran Nambiar said joining BRICS augurs well for Malaysia in the long run because the new economic narrative for the next generation will be set by this intergovernmental organisation.

“As the PM mentioned – to have a global economy with a greater diffusion of power,” said Shankaran.

Institute of Strategic and International Studies (Isis) analyst Yanitha Meena Louis said the participation in BRICS is a good sign of how Malaysia views itself in the emerging regional order, as it shows the ability to balance relations with multiple regional stakeholders and partners.

“Malaysia joining BRICS sends a key message that Putrajaya is ready to tackle the challenges of the day head on, on its own terms,” added Yanitha.

Asian Financial Cooperation Association Think Tankers fellow Mohd Sedek Jantan said BRICS enables its member countries to align their positions on specific topics such as economic and climate policies, as well as infrastructure development in accordance with the Belt and Road Initiative model.

Economist Prof Geoffrey Williams said BRICS offers a wide portfolio for trade and investment, as well as access to conventional and non-conventional trading blocks, which is crucial to Malaysia.

Williams acknowledged the shift in economic balance of power following Malaysia’s membership into BRICS, but said Putrajaya must respond positively.“The recent foreign direct investment deals are with independent minded American companies and not with the US government so this is what matters,” he said.

Chief economist at Bank Muamalat Malaysia Bhd Dr Mohd Afzanizam Abdul Rashid said BRICS would offer further diversification for Malaysia in respect to trade, investment as well as access to broader markets.

He said joining BRICS would also help to reduce over-concentration on the usage of the US dollar in trade settlement and effectively insulate the country and the region from the changes in the US monetary policy and currency volatility.

“The government would need to perform a cost and benefit analysis as the prevailing condition is quite fluid, especially in areas relating to geopolitics among the bigger nations.”

As such, he said the risks of economic sanction is something that Malaysia needs to be aware of.

Foreign Minister Datuk Seri Mohamad Hasan said Malaysia is currently analysing the feasibility of becoming a BRICS member.

Mohamad told reporters in Seremban that joining BRICS would strengthen Malaysia’s voice on various international issues.

Source: The Star

Analysts: BRICS could increase FDIs, strengthen M’sia’s global voice

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SD Guthrie Bhd is in a favourable position to ramp up its future renewable energy (RE) business, partly thanks to the recently launched Kerian Integrated Green Industrial Park (Kigip) master plan in Perak.

Maybank Investment Bank Research said besides Kigip, Penang could also be a potential buyer of RE from SD Guthrie’s solar farm at Kigip to offset carbon dioxide generated at its Silicon Island project.

“While the master plan has been launched, it is still unclear what SD Guthrie’s final equity structure in Kigip will be. What we know is Kigip will provide SD Guthrie with land disposal gains (when it opens up in stages) while its solar farm (likely 100% owned) will provide future recurring income.

“The project could house 157MW to 178MW of solar capacity, and form part of the company’s ambition to grow its RE capacity to 1,000MW in the next three to five years,” the research house added.

Kigip borders the states of Penang and Kedah. The master plan would be developed through the collaboration of the federal government, Perak state government, SD Guthrie, and Permodalan Nasional Bhd.

Solar will be Kigip’s main source of power, and the project aims to attracting high quality investments especially in sectors such as electrical and electronics.

This 1,000-acre Kigip site, to be developed in stages, would be supported by SD Guthrie’s 660 acre solar farm that would be built adjacent to the site.

Besides Kigip, there are other opportunities and potential projects in line with federal and state governments’ initiatives.

The brokerage said its earnings forecasts have yet to incorporate contributions from Kigip or large scale solar farms, noting that it is maintaining its “buy” call on the stock with a target price of RM4.96 per share.

Source: The Star

Potential for SD Guthrie to ramp up its RE business

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Chery Auto Malaysia Sdn Bhd’s new Chery corporate Malaysia factory here has created 500 new jobs. The factory, which is the first in Asean to locally produce Jaecoo’s J7, also comes with the potential to further grow in line with market demands.

The jobs created here are part of Chery’s commitment to create over 1,000 jobs in Malaysia through its local operations.

The brand also has a network of 100 sales and service centres across the nation.

“Malaysia is a very important market for Chery. Our vision for the Malaysian market is to grow with our local partners and customers for the long term,” said Chery Automobile Co. Ltd Chairman, Yin Tongyue, in his address at the launch of the Chery Corporate Malaysia Factory.

The factory launch was commemorated with the first ever Jaecoo J7 All-Wheel Drive (AWD) premium off-road sports utility vehicle (SUV) rolling off its production line.

The event was witnessed by Minister of Investment, Trade and Industry Malaysia Tengku Datuk Seri Utama Zafrul, and China’s Minister of Industry and Information Technology (MIIT), Dr Jin Zhuanglong.

The facility will focus on assembling Jaecoo’s models in particular the AWD and two-wheel drive (2WD) variant of the J7.

Strategically located in the Shah Alam industrial zone, the Chery Corporate Malaysia Factory is in close proximity to local manufacturers who are critical to its supply chain.

The facility is also said to be geographically located close to Malaysia’s busiest port and the second largest in Southeast Asia, which primes the automaker’s readiness to export to the Asean region in the future.

“In addition to strengthening the value chain of Chery and Jaecoo offerings to customers, today’s launch is a positive leap for Malaysia’s automotive industry and economy. Paired with our strong service network built with our local dealer partners, Chery is excited to deliver best-in-class vehicles equipped with innovative technology, and the absolute best customer experience to the Malaysian market,” Yin said.

Weighing in on the evolving Energy Efficient Vehicle (EEV) market, he added that the positive response of customers in Malaysia towards the brand and offerings by Chery and Jaecoo are making them very excited to support the growth of electric vehicles in Malaysia.

“In line with its brand ecology, “New Energy, New Eco, New Era.”, Jaecoo teased the market with a taste of its future EV portfolio recently, previewing the Tiggo 8 Pro Plug-in Hybrid Electric Vehicle (PHEV), Jaecoo J7 Plug-in Hybrid Electric Vehicle (PHEV) and the Jaecoo J6 full-fledged Electric Vehicle (EV) at the Malaysia Autoshow 2024 in May.

The new production facility launch will be closely followed by the official launch of Jaecoo’s premium off-road SUV, the J7, in Malaysia, which will be celebrated over three days, from July 19 to 21.

Chery’s models will continue to be produced in partnership with Inokom in Kulim, Kedah.

Source: NST

Chery-Jaecoo’s first local assembly plant creates 500 jobs, primed for export potential

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Telekom Malaysia Bhd (TM) is partnering Nxera, the regional data centre arm of Singapore’s Singtel’s Digital InfraCo unit, to develop data centres in Malaysia starting with a sustainable, hyper-connected artificial intelligence (AI)-ready data centre campus in Johor.

The data centre campus in Iskandar Puteri – 16 kilometres from Singapore – would be the largest to date for both TM and Nxera.

The initial phase of the data centre is planned for 64 megawatts (MW) and could be scaled up to 200MW in response to market demand, the telecommunications service providers (telcos) said in a statement today.

According to the statement, the strategic partnership aims to serve the needs of hyperscalers, next-generation AI application providers, and enterprises pursuing accelerated digitalisation and cloud in the region.

“This high-power density campus will be able to host large computing and AI capabilities such as requirements by cloud hyperscalers, graphics processing units (GPU)-as-a-service providers and features advanced technologies such as liquid cooling to support high-power density workloads and operations efficiently.

“The data centre will be a Leadership in Energy and Environmental Design (LEED)-certified green building, emphasising its commitment to greater energy efficiency and sustainable practices,” it said.

TM group chief executive officer (CEO) Amar Huzaimi Md Deris said the collaboration of two main telcos in the region is unique and has a positive impact on the development of a digital ecosystem that not only benefits businesses but also nurtures future talent.

“Establishing a hyperconnected AI-ready data centre marks the next phase in our long-standing partnership with Singtel, leveraging our strengths and commitment to elevate ASEAN as the preferred digital hub destination.

“TM brings the largest domestic network infrastructure, extensive international subsea cable systems, and the largest interconnected data centre in Malaysia, a solid backbone for this project,” he said.

Amar Huzaimi noted that the data centre would catalyse high-performance computing and lay a solid foundation for the future advancement of cloud and AI applications.

He also said that through the partnership, TM continues to demonstrate its dedication to delivering innovative and sustainable solutions, marking a pivotal step in its aspiration to become a digital powerhouse by 2030.

Meanwhile, CEO of Nxera and Singtel’s Digital InfraCo unit Bill Chang said the collaboration advances its vision to be the region’s leading sustainable, hyperconnected AI-ready data centre platform, supporting businesses with the digital infrastructure needed for the growing demand for cloud, digitalisation and AI.

“The first data centre campus development in Johor, which can be expanded in phases, demonstrates our ability to scale quickly in markets that are important to our customers.

“With our joint industry expertise and strong track record, we will build and operate one of the most efficient, sustainable and connectivity-rich data centres in Malaysia,” he said.

In addition to data centres, Chang said the company would be expanding the submarine cable connectivity between Singapore and Johor to enhance digital connectivity.

He said the joint venture would also partner with institutes of higher learning in Malaysia to nurture talent for projects and the industry.

Source: Bernama

TM, Singtel’s Nxera form joint venture to develop next-gen data centres

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Malaysia is open to joining the intergovernmental organisation comprising Brazil, Russia, India, China and South Africa (Brics) because it can bring various economic benefits to the country, said Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz.

He said the Brics organisation is also seen to be developing smoothly for now and some countries such as the United Arab Emirates (UAE) and Egypt have also joined the organisation.

“We are waiting to start further discussions on Brics as mentioned by Prime Minister Datuk Seri Anwar Ibrahim,” he said after officiating at the launch of the Chery Malaysia assembly plant here today.

Anwar said yesterday that Malaysia would start formal procedures to join the Brics economic bloc soon.

Brics was established in 2009 as a cooperation platform for emerging economies including Brazil, Russia, India and China, while South Africa joined the group in 2010.

Brics now accounts for a quarter of the global economy, including a fifth of global trade with a population of around 40 per cent of the world’s population.

Source: Bernama

Tengku Zafrul says Malaysia is open to joining Brics

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China car company Chery’s move to set up their own assembly plant in Shah Alam, refutes claims that Malaysia’s automotive supply chain is not cost effective, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said.

In his speech at the launch of Chery’s assembly plant, he said the new facility symbolises not just an expansion of their operational capabilities but also their unwavering commitment to assembling vehicles that are both technologically advanced and affordable.

Tengku Zafrul added that it also promotes domestic production, and job creation.

“Chery’s swift move into localisation involves substantial investment in localvendors. This approach has significantly reduced the cost of Chery’s locally produced components, effectively refuting the allegation that Malaysia’s automotive supply chain cannot be cost-effective, ” he said in his speech.

Earlies this month, Geely chairman Li Shufu reportedly said that Malaysia’s automotive supply chain costs 30 per cent higher than China and 10 per cent higher than Thailand, due to a reliance on overseas imports for supply of parts.

Li said that Malaysia’s automotive parts supply still relies heavily on overseas imports, and that the relatively small size of the local automotive market meant it was difficult to get enough scale to keep costs down.

Since the launch of two Chery models, the Omoda 5 and Tiggo 8 Pro, in July last year, Chery recently rolled out its 10,000th locally assembled vehicle at Inokom’s Kulim plant.

Chery Malaysia pledged an investment of RM1 billion in Malaysia last year.

“We are proud of Chery’s approach and rapid expansion as well as steadfast dedication to their investment commitments. Their efforts in producing high-quality vehicles align perfectly with our national goals of advancing technology, fostering economic growth, and providing Malaysians with more affordable, high-quality car options,” Tengku Zafrul said.

Source: NST

Tengku Zafrul: Chery’s localisation move refutes claim that Malaysia’s auto supply chain not cost effective

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Malaysia is poised to become Southeast Asia’s aerospace industry hub, driven by a robust ecosystem, but faces challenges in production capacity, talent and product development, particularly in manufacturing, according to Turkish Aerospace Malaysia (Tusas) CEO Mohd Shahiman Sulaiman.

“The ecosystem here is very solid. The supply chain is very strong. So that means ease of doing business in that nature is good. This is also something, I believe, that sparked why Malaysia is talking about design avionics more. Because designing aircraft computers, actually Malaysia is the only country in Southeast Asia that has that capability,” he told SunBiz in an interview.

Furthermore, Mohd Shahiman noted that Malaysia has strengths in designing capability as well as system integration.

“Malaysia has proven capabilities in design. Malaysia’s strength lies in its design capability. Whatever it is, car, robot, aircraft, Malaysia can design it,” he said.

He also highlighted that one of the reasons why avionics is one of Tusas’ core areas here is because of Malaysia’s strength in electronics, as it is a 50-year-old industry in the country.

However, Mohd Shahiman said, what is lacking is the opportunity for commercialisation.

What Malaysia needs, he added, is anchor companies to create final products for the global market.

“Where does the design go? Where is it sold? This has always been a limitation in Malaysia. One of the ways we can address this is through the presence of anchor companies. What makes a product successfully sell in the market? You need the capability for commercialisation,” he said.

Mohd Shahiman pointed out that robust demand for military and commercial aircraft is a driving force for the industry. “The demand is here. We have substantial backlogs to deliver to customers,“ he said.

However, he said the current industry capacity in Malaysia needs substantial scaling up to meet the demand. “And in scaling up in aero manufacturing, what is limiting Malaysia is the production capacity.”

Mohd Shahiman also highlighted the critical need for skilled designers and engineers, citing the shortage of local talent as a hurdle.

However, he said he remains optimistic about the future of the industry despite these challenges.

There is tremendous potential for growth with the right investments and strategic initiatives, Mohd Shahiman said.

“With the right policies and investments, Malaysia can become a significant player in the global aerospace industry,” he affirmed.

Malaysia launched the Malaysian Aerospace Industry Blueprint 2030, an initiative with the goal of positioning the country as Southeast Asia’s most significant aerospace market. The blueprint aims to address the gaps, focusing on areas such as maintenance, repair and overhaul; aerospace manufacturing; and, eventually, engineering services and system integration.

Malaysia is currently home to more than 200 aerospace companies, international and local.

Source: The Sun

Malaysia’s aerospace ecosystem robust, strong but faces challenges: Tusas CEO

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Malaysia’s recent influx of substantial foreign direct investment (FDI) indicates several positive trends and potential developments for the country, according to Previndran Singhe, the chief executive officer and founder of Zerin Properties.

High-profile investments, such as Apple’s new store and contributions from Microsoft and Google, can elevate Malaysia’s status as an attractive destination for FDI, he noted.

These developments are expected to enhance Malaysia’s international standing, showcasing a dynamic and resilient economy with a bright future fueled by technological advancements, diversified growth, and improved global connectivity, he told Business Times.

“With all the investments coming in, Malaysia is gaining enhanced global visibility and building investor confidence. The influx of blue-chip companies signals a stable and promising business environment, potentially attracting other savvy investors,” he said.

Malaysia has experienced a notable wave of investment from major foreign companies and tech giants throughout this year.

Prominent entities such as Google, Apple, Microsoft, ByteDance, and BlackBerry are among those investing. These investments highlight Malaysia’s appeal as a key hub for global business and technology ventures.

Google plans to invest US$2 billion (RM9.4 billion) in establishing its first data centre and Google Cloud region in Malaysia.

Ruth Porat, president and chief investment officer, and chief financial officer of Alphabet and Google, said in a statement that Google’s first Malaysian data centre and Google Cloud region is the group’s largest planned investment so far in Malaysia — a place Google has been proud to call home for 13 years.

Google said its investment is estimated to support more than US$3.2 billion (RM15.04 billion) in positive economic impact and 26,500 jobs by 2030.

Apple, meanwhile, opened its inaugural retail store, The Exchange TRX Mall, in Kuala Lumpur on June 22, marking a substantial increase in its physical retail footprint across Southeast Asia.

BlackBerry has also opened its first-ever Asia Pacific Cybersecurity Centre of Excellence in Cyberjaya, focusing on cybersecurity.

Microsoft chairman and chief executive officer Satya Nadella had also unveiled a significant investment of US$22 billion (RM90.2 billion) to advance new cloud and artificial intelligence (AI) infrastructure in Malaysia during the Microsoft Build AI Day held in Kuala Lumpur.

Concurrently, Microsoft is in the process of constructing a substantial data centre in Cyberjaya.

ByteDance, the parent company of TikTok, based in China, plans to invest US$2.13 billion (RM10 billion) to establish an AI hub in Malaysia.

In addition to this initiative, ByteDance intends to expand its data centre facilities in Malaysia’s Johor state with an additional investment of RM1.5 billion.

Previndran said that major investments across various industries suggest robust economic prospects and can significantly boost Malaysia’s gross domestic product (GDP).

He also highlighted that investments in sectors like technology, AI, cybersecurity, distribution, and sustainable energy are diversifying Malaysia’s economic base, reducing its reliance on traditional sectors such as manufacturing and oil.

Additionally, these new investments are expected to create more jobs for Malaysians.

For instance, projects by Apple and Microsoft in AI will generate numerous employment opportunities, positively impacting local job markets.

Furthermore, skill enhancement initiatives by companies like Bytedance, which focus on AI hubs, can elevate local expertise in high-tech industries, promoting skill development and enhancing the workforce’s global competitiveness.

Regarding infrastructure and technological advancement, he said that investments in digital centres and cloud infrastructures by Google, Microsoft, and others will modernise Malaysia’s infrastructure, increasing its global competitiveness.

Collaborations with global tech giants can also spur local innovation, positioning Malaysia as a hub for tech development in Southeast Asia, he said.

Sr Tan Wee Tiam, a research head, said that all these investments, whether realised, in the pipeline, or in the planning stage, are beneficial for Malaysia.

He explained that the surge in investments can be attributed to several factors.

“Firstly, Malaysia has traditionally been strong in the E&E sector but has stagnated at the low to mid-end of the production and supply chain, partly due to China attracting the bulk of FDI.

“The trade war has led to friend-shoring and de-globalisation, prompting many companies to adopt the “China + 1” strategy.

“Further, Malaysia’s strong infrastructure, reliable power and water supply, skilled workforce, widespread use of English, and robust legal system make it an attractive destination for these corporations,” he said.

On the significant influx of data centres coming to Malaysia, especially in Johor, Tan said that this trend may be due to Singapore’s 2019 moratorium on data centres and the stringent guidelines implemented when the ban was lifted in 2022.

Johor’s proximity to Singapore, lower power and water tariffs, abundant land, and the familiarity of corporate senior management with the area have expedited these decisions, he said.

“We can expect more investments to flow into Malaysia, particularly Johor, due to the foresight of both the Malaysian and Singaporean governments in collaborating on initiatives such as JS-SEZ, SFZ, RTS, and potentially HSR,” he said.

Sunway University economics professor Dr Yeah Kim Leng said the surge in investments here is due to a combination of geopolitical, economic, and strategic factors.

He noted that multinational firms are ‘trans-‘shoring’—transferring their offshore production facilities to other countries in Asia to shield from the potential US-China trade conflict escalation.

“Chinese companies are investing overseas to diversify away from US markets and capitalise on the expanding markets in Asia and other Asian countries.

“Being strategically positioned with good infrastructure, a multi-lingual and a greater English-proficient workforce than neighbouring countries.

“This also includes a well-established semiconductor and information and communication technologies (ICT) supply network, Malaysia has surged ahead in attracting high tech FDI,” he said.

Yeah added that Malaysia’s energy security, lower natural disaster risk, attractive investment policies, political stability, and forward-looking economic policies are also factors that will continue to attract both foreign and domestic investors.

Echoing similar views, another industry expert said tech giants and foreign companies will continue to choose to invest in the country due to its strategic geographical location, which offers easy access to the broader Southeast Asian market.

He opined that this is despite the country’s long-running political instability and the rising cost of doing business.

“This region is home to a rapidly growing middle class and presents significant opportunities for consumer-driven growth.

“Malaysia has a well-developed infrastructure, a highly skilled workforce, and a relatively high level of English proficiency, making it an attractive destination for technology and service-oriented industries.

“Additionally, Malaysia’s government has been proactive in creating a favorable business environment through various incentives, including tax breaks, grants for high-tech industries, and investments in digital infrastructure.

“The establishment of digital free trade zones and innovation hubs like Cyberjaya has also enhanced Malaysia’s appeal,” he noted.

The expert also highlighted that Malaysia has a stable legal framework and strong protections for foreign investors, which provides a level of security and predictability that can outweigh some of the risks.

He said the recent surge in investments, especially this year, can also be attributed to global supply chain shifts, where companies are looking to diversify their manufacturing bases in response to geopolitical tensions and disruptions, such as those experienced during the COVID-19 pandemic.

Source: NST

Favourable FDI destination

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Turkish Aerospace Malaysia (Tusas) plans to expand manufacturing capabilities in Malaysia, potentially developing entire aircraft within the country.

CEO Mohd Shahiman Sulaiman said this will involve transferring technology, setting up manufacturing facilities and increasing local content in production.

“We want to grow big, big time. If possible, we want to do the whole aircraft here in Malaysia. Normally, in a customer relationship, someone buys, someone gets a product. What we are offering is more. We are offering beyond conventional customer relationships,” he told SunBiz in an interview.

He said the local aerospace ecosystem is expected to benefit from these developments.

Increased exports and technological advancements will have a positive economic impact on Malaysia, he added.

“This initiative is an important step in our commitment to enhancing the Malaysian aerospace sector and building a self-sustaining ecosystem,” he said.

He said Tusas intends to employ 500 designers in Malaysia by 2028, up from over 100 currently.

“If we grow organically, that’s the number. But if we expand into a regional aerospace production center or hub, then the numbers will be in the thousands, easily in the thousands,” he said.

Mohd Shahiman also mentioned collaborations with local government agencies, universities, and business-to-business approach.

“We work closely with Mida and some other agencies. They have been helping us sustain in certain areas. Many agencies are stepping in to offer additional support to aid our growth.

“We partner with 10 universities for talent development, enrolling students annually across all four years of study. Each July, we send two groups of 30 students to our Ankara headquarters for industrial training, covering all expenses except for their flight tickets,” he said.

Mohd Shahiman shared that Tusas in the Malaysian market focuses primarily on avionics and aircraft structures.

“We design, manufacture, and assemble avionics, which are then send back to Ankara for further integration and distribution into new aircraft destined for global markets,” he said.

Source: The Sun

Tusas plans to expand operations in Malaysia in big way

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North Duchess Pharmaceuticals (NDP) signed a Memorandum of Understanding (MoU) with Allied Identity USA Group today to develop the Green Pharma Project in Perlis.

North Duchess Malaysia Sdn Berhad founder and director, Tengku Syarif Temenggong Perlis Datuk Seri Syed Amir Abidin Ibni Almarhum Tuanku Raja Syed Putra Jamalullail and the managing director of Asia Pacific Operations of the Allied Identity USA Group Steve Huffman signed the agreement on behalf of their companies.

“This initiative is expected to create over 300 jobs for semi or highly-skilled professionals and tap into Malaysia’s growing pharmaceuticals market, valued at RM16 billion in 2023, offering a stable growth rate of eight to 10 per cent annually.

“The project’s sustainable healthcare manufacturing focus includes the construction of a GMP-compliant Halal pharmaceutical solid dosage plant in Perlis and the production of Halal-certified pharmaceuticals for the Health Minister within 36 months, with plans for international expansion within 48 years,“ North Duchess Malaysia Sdn Bhd chief executive executive officer (CEO) Che Puan Temenggong Perlis Datin Seri Farinawati Mohd Din said in a press conference held after the MoU signing ceremony here, yesterday.

She also shared that it would take five years to complete the project, which is focused on production of diabetics, high blood pressure and high cholesterol medication.

The project, which will be developed in Chuping Valley, Perlis, aims to revolutionise pharmaceutical manufacturing in Malaysia by diversifying Perlis’s economic base and become a significant revenue driver within 36 months of acquisition, Che Puan Temenggong Perlis said.

In addition, the project is projected to generate a total revenue of RM 465 million over five years with an operational profit forecast of RM183 million.

“This project represents not just an investment in infrastructure but a commitment to advancing healthcare solutions and meeting the growing medication demands of our nations and global community.

“We aim to set new standards in eco-friendly manufacturing, leveraging cutting-edge technologies to minimise our environmental footprint and uphold the highest standards of safety and quality,“ she said.

Meanwhile, Steve Huffman said Malaysia is a very strategic market and there was great potential to export medication to neighbouring countries such as Cambodia, Thailand, and the Philippines.

“So, we want to make sure that whatever we do, we take care of the Malaysian market for drugs, but we also set up a provision for where we can export and diversify the revenue streams to make sure it’s sustainable,“ he added.

He was happy to note that the partnership represented a critical milestone, combining resources and expertise to advance sustainable pharmaceutical solutions in Perlis.

Source: Bernama

Green Pharma Project in Perlis to be completed by 2029

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Boutique developer Ancubic Group has announced a 90% take-up for the first phase of its first industrial development called A-Park Batu Kawan since its official launch on March 11. The launch was officiated by Penang Chief Minister Chow Kon Yeow.

Spanning 20.5 acres and located east of Batu Kawan Industrial Park (BKIP) in Batu Kawan, Penang, it has a gross development value of RM292 million. A-Park Batu Kawan features 50 units of 1½- and 2-storey semi-detached and detached factories. These factories will have built-up sizes ranging from 6,800 to 16,700 sq ft with selling prices from RM4 million.

The first phase of the gated and guarded industrial park consists of 31 semidee and detached factories.

“A-Park Batu Kawan is the only [new] industry development located within a 10km radius from the BKIP [for now]. Our buyers, which are mostly SMEs (small and medium enterprises) who produce and supply semiconductor components or services, such as logistics, to the large-scale manufacturers, get to enjoy a catchment of over 160 large-scale local and international investments nearby,” Ancubic’s founder, managing director and chairman Datuk Low Boon An tells City & Country.

He highlights that the units at A-Park Batu Kawan will offer a four-in-one use concept (for office, showroom, production and storage), have a modern façade, and are built with high-quality construction materials and features that are benchmarked against international standards.

These features include a 150amp power supply for semidee units and 200amp for detached units; a 9m ceiling height from the ground floor to the mezzanine floor; and a 3.5m ceiling height from Level 1. There is a 1.5-tonne loading capacity for the ground floor and 0.356 tonnes for the first floor; 13ft motorised roller shutters; a flexible floor layout with a spacious production area; a rooftop that is ready for solar panel installation; and optimal ventilation, natural lighting and visibility from the main road.

Another feature of A-Park Batu Kawan is the industrial park’s extra-wide 100ft main entrance and 50ft-wide internal roads, which will allow two trucks to go in and out simultaneously. It is also a freehold development with individual titles.

Due to the encouraging market response for the first phase, the developer is planning to roll out the second and third phases of the development in the second half of this year. The entire development is slated for completion in 2027.

A-Park Bangi

Apart from A-Park Batu Kawan, Ancubic is mulling the launch of its second industrial park in Bandar Baru Bangi, Selangor — A-Park Bangi — in August or September.

Similar to A-Park Batu Kawan, A-Park Bangi has a land size of approximately 20 acres and a gated and guarded industrial park, offering 50 2- and 3-storey semi-detached and detached factories with built-ups ranging from 9,500 to 31,000 sq ft. The selling prices will be disclosed in due course.

“Our A-Park Bangi in Selangor is surrounded by many multinational companies from the US and Japan. We are targeting the SME buyers and investors, who can supply products and services to existing large-scale manufacturers there, to set up their facility here in our development,” Low says.

When asked about the industry property market outlook, Low is confident that market demand will continue to be strong as the federal government is committed to bolstering the nation’s manufacturing sectors with microeconomic targets, which include boosting the gross domestic product (GDP) of the manufacturing sector by 6.5% annually. He believes that the policy will continue to drive market demand for modern industrial parks.

“The recently launched NIMP 2030 (New Industrial Master Plan 2030) will drive demand for quality industrial properties such as our A-Park in Batu Kawan and Bangi … As the flight-to-quality trend becomes more and more popular, gated and guarded, well-located and greener industrial parks are expected to be very sought-after, moving forward,” Low shares.

NIMP 2030 is an industrial policy for the manufacturing and manufacturing-related services sector, which was launched by the federal government in September 2023 with the aim of transforming Malaysia’s industrial landscape by achieving a RM587.5 billion contribution to Malaysia’s total GDP by 2030.

Source: The Edge Markets

A-Park Batu Kawan Phase 1 achieves 90% take-up

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Malaysia is better positioned to negotiate a free trade agreement (FTA) with the European Union (EU) this time around as geopolitics and supply chain realignment gives it some edge, say industry observers.

Universiti Tunku Abdul Rahman economics professor Wong Chin Yoong attributes this to the nation’s trade history with the EU as well as being one of the most prioritised destinations for integrated circuit investments.

He said the EU has been Malaysia’s third or fourth-largest trading partner while Malaysia is the EU’s third-largest trading partner within Asean.

“Our trade with the EU has exceeded €50bil in the last two years, which mainly include machinery and appliances along with some chemical goods and animal fats.

“Malaysia has long been a recipient of foreign direct investment (FDI) from the EU and is also an integral part of the electronics and electrical (E&E) supply chains.

“The E&E-related industries will be one of the most important components in the FTA looking at the ongoing geopolitical tensions. Hence, this puts Malaysia in a very advantageous position when it comes to negotiating with the EU,” he told StarBiz.

Negotiations for an FTA between the EU and Malaysia were launched in 2010 and put on hold after eight rounds of negotiations in 2012, at Malaysia’s request.

Both parties had exhausted their negotiating options at that time. It was then agreed that negotiations would resume when a new mandate and/or additional flexibilities were available to both sides.

In March this year, Prime Minister Datuk Seri Anwar Ibrahim said “the time is ripe to rekindle discussions on the Malaysia-EU FTA” and Europe will be able to capitalise on Malaysia as a gateway to Asia with an FTA.

Bilateral trade in goods between the EU and Malaysia totalled €50.3bil in 2022.

EU imports from Malaysia were valued at €35.6bil, while EU exports to Malaysia reached €14.7bil. Additionally, trade in services between the two partners amounted to nearly €7.6bil in 2021.

EU-Asean Business Council executive director Chris Humphrey said past talks for an FTA were put on hold partly due to local political considerations and concerns about voter reactions to ongoing FTA negotiations when the country is heading for a general election.

Humphrey added that negotiations have taken so long to restart largely due to political reasons in Malaysia and partly because the European Commission felt that the level of ambition on the Malaysian side did not match their own level of ambition for a deep and comprehensive FTA.

“The EU is always looking for new trade deals that not only remove tariffs but also non-tariff barriers and improve market access in both directions, address intellectual property rights, sustainability, and non-core trade issues like labour rights, and environmental protection.

“These may well have been some of the stumbling blocks for Malaysia at that time. Hence, the country needs to be ready to address these issues to secure an FTA with the EU,” he said in an interview with StarBiz.

Areas such as high-end electronics and semiconductors are where Malaysia can significantly enhance its role in its relationship with the EU, Humphrey noted.

“Traditional sectors like machinery, basic electronics and agricultural products will continue to grow, and an FTA would be beneficial by providing tariff-free access and facilitating easier entry into the European market.

“Similarly, European firms could potentially gain improved access to the Malaysian market and look to invest more here,” he said.

On this note, Wong said the new generation of FTAs that will benefit Malaysia the most would be those addressing non-tariff measures.

“After concluding so many rounds of FTAs, tariff barriers in trade have been largely removed. The average simple tariff rates for Malaysia in 2021 was approximately 3.6%.

“Further reduction in tariff rates would only bring about trivial gains from FTAs that are purely focusing on tariff reduction,” he said.

For instance, the biggest benefit of Regional Comprehensive Economic Partnership (RCEP) to Malaysia is not tariff removal but harmonisation of all the different rules of origins under different bilateral trade agreements rectified earlier by the members.

Sharing a single custom standard and procedures across member nations substantially reduces the cost of cross-border trading, making different markets as if a single large market and hence bolstering the gains from trade.

“I believe a proposed FTA between Malaysia and the EU will be heading towards that direction, with emphasis not just on the harmonisation of standards and procedures in goods but also service sectors.

“The benefits can be enormous for both sides, as Malaysian firms would have better access to the European market and capital while for the European companies, the access to the RCEP and Comprehensive and Progressive Agreement for Trans-Pacific Partnership markets,” Wong said.

In Asean, Singapore and Vietnam already have an FTA in place with the EU while negotiations are still ongoing with Indonesia, the Philippines and Thailand.

Humphrey said recent announcements by the EU and the Philippines show both sides are looking at a €6bil increase in trade from the signing of an FTA and this is coming from a lower base compared with what Malaysia presently has with the EU.

“With Vietnam, the growth rate in trade resulting from the FTA with the EU has far surpassed that between the EU and Malaysia.

“Malaysia is extremely well placed and is very active in Europe in terms of trying to attract investment. However, Malaysia probably has not been getting its fair share when you look at the investment flows that have been going elsewhere within South-East Asia.

“Having an FTA in place will definitely be a boost for Malaysia in that regard, going forward,” he said.

The rekindling of the Malaysia-EU FTA is also taking place at an opportune time as Malaysia edges closer to assuming the annually-rotating Asean chair in 2025 from Laos this year.

“Engagement between the EU and Asean is probably at an all-time high now, particularly regarding trade and investment issues. During Malaysia’s chairmanship of Asean next year, the Asean digital economy framework agreement should be reaching its conclusion.

“I hope that under Malaysia’s stewardship, we will achieve an agreement that is open and promotes the digital economy. This could perhaps lead to a broader agreement with Europe at the same time,” he said.

Wong said gaining access to the EU’s market, technology and finances through an FTA is important.

“We are accustomed to thinking of FDI primarily as a means of freeing trade in goods and services, promoting exports and imports as well as attracting more European investments to Malaysia.

“We must not forget that for Malaysia to become a developed country, it is crucial to have local companies that are globalised or internationalised. This is also how the country can really upgrade its overall industrial capacity,” he said.

Source: The Star

Right time to resume FTA talks with EU

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Malaysia is expected to benefit from the electronics sector recovery in the second half of the year (2H24), given its position further down the electronics value chain, according to the Institute of Chartered Accountants in England and Wales (ICAEW).

ICAEW said in a statement that the electronics sector is a bright spot for Southeast Asia’s economy, with the region projected to grow by 4% in 2024 and 2025.

“However, this is below the pre-pandemic average of 5% in the five years prior, largely due to expected challenges in domestic consumption as interest rates remain higher for longer,” it noted.

The association said electronics-focused exporters in Southeast Asia gained a better foothold in the first quarter of this year (Q1’24), in large part due to the bottoming out of the electronics sector.

“The recovery in global semiconductor sales, which saw a 15.3% year-on-year (y-o-y) increase in Q1’24, has particularly benefited Vietnam, where export growth soared to an estimated 16.8% y-o-y.

“On a seasonally adjusted basis, Singapore also saw a rebound in non-oil domestic exports in April with an estimated 9.4% month-onmonth growth, marking a positive turn after two consecutive months of decline,” it said.

Meanwhile, on domestic consumption in the region, ICAEW said domestic consumption in Southeast Asia was more resilient than expected in Q1’24, but it is unlikely to drive growth in the coming quarter as tight monetary policy in the region is expected to restrain consumer spending.

“The persistent weakness in local currencies against the US dollar is likely to limit monetary easing options for Southeast Asian central banks.

“The strong US dollar, driven by the US Federal Reserve’s (Fed) high interest rates, prevents local central banks from cutting rates without risking further currency depreciation,” it stated.

The association noted that in Q1’24, Bank Indonesia was even forced to raise rates to arrest the rupiah’s decline.

“The ongoing tight monetary policy means that debt servicing and borrowing costs will remain high, likely constraining private consumption.

“Additionally, many consumers and businesses are continuing to consolidate as they are still recovering from the pandemic and are likely to focus on rebuilding savings or repairing their balance sheets in the short term,” it said.

On the ringgit, ICAEW noted that the Malaysian ringgit encountered significant challenges in Q1’24, largely attributed to the substantial discount of the Bank Negara Malaysia’s (BNM) policy rate relative to the US Federal Funds rate.

It opined that despite inflation remaining relatively low, hovering below 2% for the past six months and showing little indication of a significant increase, the currency weakness poses an obstacle to BNM’s ability to ease policy to support the economy.

Source: Bernama

Malaysia to benefit from electronics sector recovery in second half of 2024: ICAEW

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The automaker plans to debut the 1st model by year end

NATIONAL car manufacturer, Perusahaan Otomobil Nasional Sdn Bhd (Proton), recently unveiled its first-ever venture into the electric vehicle (EV) brand with the all-new brand, Proton e.MAS, as well as the brand logo.

On June 12, Proton invited The Malaysian Reserve (TMR) to this grand unveiling of its brand-new dive into the EV market, as well as the grand reveal of the new Proton logo for this sub-brand.

Named “The Start of Something Elec- trifying”, the theme features mainly the direction that Proton is heading in the near future of 2024. Proton told the media on what Proton plans to achieve with its foray into the battery-EV (BEV) market.

The unveiling began with a presentation by Proton CEO Li Chunrong, explaining Proton’s approach to the EV market, its expansion plans to expand and how it plan to accelerate the EV growth within the Malaysia market, as well as other advancements that Malaysia has made in the expansion into the EV industry.

Li said it starts with developing a national BEV, acquiring advanced EV technology, which will boost EV adoption and finally nurture local EV talent.

During his presentation, Li also shared some of the technological advancements they hope to make in Proton e.MAS.

He said the new brand and what it produces are an extension of the values held at Proton which is innovative technology, reliability and internationalism.

“This is the next step in the evolution of the company and in the coming months, there will be additional announcements to build brand recognition and product advocacy leading up to the launch of the first e.MAS EV in December this year,” he said.

Some of these technologies include cell-to-body technology developed by Geely Auto, which is when battery cells are seamlessly integrated into the body or chassis of the car itself.

Li said this allows for much more space efficiency and weight reduction, hence, enhanced performance.

Furthermore, there will be a blade battery which increases safety, adds the lifespan and allows for faster EV charging, as well as the 11-in-1 Electric Drive which boasts a compact design, lighter weight and better thermal management. These sorts of technologies will be leveraged to boost the transition into EVs as well as offer more competitive prices to Malaysian customers.

During the launch, Proton Edar CEO Roslan Abdullah said there would be at least 20 Proton outlets to be finalised in 2024.

“Two in Sabah and Sarawak, 10 in the Selangor and Kuala Lumpur (KL) area, and another 12 across the Malaysian peninsula.”

He also discussed how Proton can help with EV adoption in the Malaysian car market, which is by offering affordable prices for e.MAS to benefit the public as well as the government.

“We noticed many EV cars that are in the market are priced well above RM100,000 and we are looking to select a suitable price range that is good for Proton, the public and the government,” he said.

Gold Standard

After the presentations, Proton unveiled the EV line, the corresponding logo of Proton e.MAS and its chief designer Azlan Othman delivered a speech breaking down the meaning and logo design of Proton e.MAS.

“While its letters share the same spelling as the Malay word ‘emas’, the pronunciation for this EV brand is quite different as the ‘e’ stands for ‘electric’ and ‘MAS’ stands for Malaysia. Therefore, e.MAS is a symbol of Malaysia’s leadership towards providing electric mobility

“This unconventional spelling and pronunciation are a deliberate choice,” Azlan said.

Azlan added that the production of Malaysia’s first EV would be towards the end of 2024, with a design based on the Geely Galaxy E5.

“In fact, Proton had held a contest before this unveiling where participants were asked to submit their guesses for the name of the Proton e.MAS.

“A lot of the workers here guessed the new line would be called the Electron, perhaps to match with the proton and electron of an atom theme.

“However, the name e.MAS carried a lot of meaning and layers to it, which gave a lot more depth to the design and name given. The contest had some hints as well such as showing the headlights and roof rails of the Geely Galaxy E5 in the teaser,” Azlan said.

The carmakers also revealed its logo for the new EV, featuring a more minimalistic design of the tiger head. This new design represents an uncaged tiger head held high, a testament to its movement towards success.

“The flattened, rather than the 3D format used, is in line with current design trends for EV brands that lean towards cleaner and less complicated graphics.

“It carries the heritage and the pride symbolised in the tiger image. It evolved from the main brand logo featuring a flattering and clearer tiger image, which further allows for the logo to be recognised even at a distance in different conditions,” Azlan said.

Proton said the first 17 EV dealers, who formalised their agreements during the ceremony, are ready to promote the EV.

The set locations for these EV dealers will be nationwide with locations ranging from Kota Bharu to Georgetown to seven locations in the Selangor and KL area such as Cheras, Petaling Jaya and Rawang, and even a location in Kota Kinabalu, Sabah.

Proton added that it aims to have 30 outlets in place by 2025, expanding the network further beyond that timeframe, if need be, and Roslan expects that the first EV model will debut around the same time.

“We have not decided on the timeline, but the first model (will be launched) very soon. It could be early 2025, or earlier,” Roslan said.

He said as the main arm of the vehicle dealership, Proton Edar would like to ensure the acceptance of Proton EV within the market.

“Depending on public demand and acceptance, we could determine the volume and model lineup for future launches,” he said.

EV Infra for Proton’s Future

This concern is, in part, what Li said during his presentation.

“With Proton being Malaysia’s premiere automotive brand, Proton must invest in EV infrastructure to help EV buyers instead of leaving them high and dry, and that infrastructure will need to be completed before we advance into the selling stage.

“Therefore, when Proton e.MAS models go on sale, customers can be reassured that all their needs will be taken care of just like it would be for buyers of the current Proton range.

“This is why Proton has been deliberate in its approach towards EVs, developing our knowledge base step by step to ensure we have a thorough understanding of the products, technology and user concerns before sales even begin,” he added.

This name and logo have truly shown that Proton approaches its projects in a very thought-out and layered method.

From the design of the name to the logo that symbolises Malaysian heritage, while also considering the affordability and the pioneering of Malaysia’s EV market via infrastructure investment shows their dedication and passion towards giving Malaysia the best EV it can manufacture.

Overall, the event was very enjoyable and is a momentous occasion in the Malaysian EV market history as the first step to Malaysia’s advancement into this industry. Proton takes what they’ve learned and adds the Malaysian aspect where they can to make products that embody Malaysian progress.

As part of Proton’s creed, “The spirit of Malaysian heritage in empowering better mobility for our future”, the national carmaker continues to develop itself.

Source: The Malaysian Reserve

Proton e.MAS — Proton’s foray into the EVs market

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More companies from China have expressed their intention to learn about the halal industry in Malaysia, said One Belt One Road Chamber of Commerce (OBORCC) president Datuk Seri Tan Thian Lai.

He said many companies in China’s food and beverage, pharmaceutical, and cosmetic industries are beginning to realise the importance of halal certification, and they view halal certification in Malaysia as one of the best in the world.

“They (the Chinese companies) see Malaysia as a country that places great emphasis on each product that it produces. To them, it is a good opportunity to learn more about these halal standards for their products,” he told Bernama today.

Tan said several countries are ready to invest in setting up preparation and packing facilities for halal goods in Malaysia.

“The halal market is extensive and is not limited to the 1.4 billion people in China alone because, of late, non-Muslim communities have come to understand the importance of halal (certification) on the products they use.

“Because of this, business partners from Guandong, Shanghai and Beijing have expressed their intentions to open their factories in Malaysia so that their halal products can be easily monitored by Jakim (Department of Islamic Development Malaysia),” he said.

In this regard, Tan hopes that the visit by the Prime Minister of China Li Qiang to Malaysia in conjunction with the 50th anniversary of Malaysia-China diplomatic ties beginning Tuesday (June 18) will benefit both countries in the effort to empower the global halal industry.

Malaysia’s Halal Certification, managed by Jakim, has gained international recognition for maintaining the top rank for 10 consecutive years for the halal food sector among 81 countries, as reported by State of the Global Islamic Economy 2023.

The global halal market is projected to reach US$9.71 trillion (US$1=RM4.69) by 2025, with countries like Malaysia expected to lead in the coming years.

In a special address at the Global Forum on Islamic Economics and Finance on May 28, Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the halal industry has proven to be one of the most competitive and rapidly growing sectors in the world, adding that such developments are also expected to be experienced by Islamic financial assets.

Source: Bernama

Chinese companies eager to learn from Malaysia’s halal industry

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The Kerian Integrated Green Industrial Park (KIGIP), bordering Kerian district in Penang and Kedah, has been hailed as a strategically significant initiative by an expert.

Prominent economist Professor Tan Sri Dr Noor Azlan Ghazali said the strategic initiative gives him confidence that KIGIP will form a great northern Malaysia growth triangle; in Batu Kawan-Kulim-Kerian.

“It has the potential to attract high-value investments within the country and also from abroad,” he said in a Facebook post.

“This idea focuses on the green technology industry which is great for our country,” he wrote.

Prime Minister Datuk Seri Anwar Ibrahim launched the KIGIP Master Plan earlier today. Noor Azlan said the announcement marked a historic day for Kerian, the northwestern district of Perak.

Noor Azlan said Kerian district has crucial logistics infrastructure including twin railway tracks, three stations, and access via the PLUS highway at Bukit Merah, Alor Pongsu, and Bandar Bahru.

Meanwhile, Bayan Lepas has become a global hub for electronics and electrical industries, with its success now spreading to Batu Kawan Industrial Park (BKIP) and Kulim Hi-Tech Park.

“Bayan Lepas International Airport will be just 40-50 minutes away now that the Sultan Abdul Halim Muadzam Shah Bridge is being built, and the Penang port is nearby.

“KIGIP will add significant value to this existing infrastructure and complete a new industrial triangle focused on green technology in northern Malaysia,” he said.

Noor Azlan also said a thorough socio-economic study of Kerian is necessary.

“This study should assess the current situation and identify steps to ensure Kerian residents can fully participate in the opportunities created by KIGIP.” he said.

KIGIP is among the key initiatives that are in the New Industrial Master Plan 2030 (NIMP 2030) launched last year.

He said, it also fulfills the four key missions of NIMP 2030, namely; advancing economic sophistication, accelerating the adaptation of technology and digitization, driving net-zero carbon emissions, and ensuring economic security and inclusivity.

Noor Azlan also showed his appreciation towards Anwar and Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz for the idea of a new industrial zone.

Source: NST

KIGIP a strategic initiative, says prominent economist

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The development of the Kerian Integrated Green Industrial Park (KIGIP) is set to offer attractive and high-quality career prospects for local talents in the surrounding area, said Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz.

Tengku Zafrul said that KIGIP will become a hub in northern Malaysia for nurturing talent and innovation, leveraging its strategic location near various high-level educational and technical and vocational education and training (TVET) institutions, as well as the Pusat Latihan Giat MARA.

“This strategic location will ensure an adequate supply of skilled graduates to fill skilled and high-value positions in KIGIP, prioritising and providing opportunities for skilled local workers to further develop,“ he said during his welcoming speech at the launching ceremony of the KIGIP Master Plan officiated by Prime Minister Datuk Seri Anwar Ibrahim here today.

Also present were Deputy Prime Minister Datuk Seri Fadillah Yusof, Perak Menteri Besar Datuk Seri Saarani Mohamad and Penang Chief Minister Chow Kon Yeow.

Tengku Zafrul highlighted that KIGIP is seen as complementing the spillover demand aligned with the rapid growth of industries in Penang and the Kulim High-Tech Park.

According to Tengku Zafrul, he believes that once KIGIP is fully operational, it will make a significant contribution to the country’s economic development.

“With its unique value proposition, KIGIP is not about competition, but rather complementing the existing industrial parks in its vicinity,“ he said.

Meanwhile, Saarani, in his address, noted that KIGIP, which will soon take root in the northern part of the state, will strengthen the industrial ecosystem in Perak.

He said that in the southern part of the state, the Automotive High Technology Valley (AHTV) is already established in Tanjong Malim, while on the west coast, there are the Lumut Maritime Industrial City (LuMIC) and the Perak Halal Industrial Park (Perak HIP), along with the Silver Valley Technology Park (SVTP) in Kinta.

“With a robust industrial ecosystem, we hope to bring abundant benefits to the people through the creation of new economic centres that provide employment opportunities, as well as spaces and opportunities for entrepreneurship and livelihoods,“ he said.

“The presence of KIGIP also brings along the construction of a new Water Treatment Plant (LRA), which will undoubtedly bring new hope to the residents, especially in the Kerian district, who have long suffered from water scarcity issues, including farmers who toil to cultivate agricultural lands,“ he added.

Source: Bernama

KIGIP offers attractive, quality career prospects – Tengku Zafrul

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