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The Ministry of Investment, Trade, and Industry (MITI) is finalising sustainable development guidelines for data centres.

Its Minister, Tengku Datuk Seri Zafrul Abdul Aziz, said his ministry has held several engagement sessions with various government agencies and data centre industry players in Malaysia to develop the guidelines.

He added that the guidelines include metrics such as Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE) to measure energy and water efficiency.

“In addition, to ensure a comprehensive approach to sustainable data centre development, the guidelines also set a metric for Carbon Usage Effectiveness (CUE) to measure carbon emissions by data centres.

“The guidelines are being finalised and will be one of the requirements for incentive applications for future data centre investments,“ he said during a question-and-answer session in the Dewan Rakyat today.

Tengku Zafrul said this in response to a question from Mohd Syahir Che Sulaiman (PAS-Bachok), who asked about the current status of energy and water usage guidelines for data centres, as part of efforts to ensure data centres in Malaysia support the net-zero carbon emission target by 2050.

He added that the government also encourages the implementation of green technology policies and the use of renewable energy (RE) in data centre operations to achieve the 70 per cent RE target by 2050, as outlined in the National Energy Transition Roadmap.

Tengku Zafrul noted that the Corporate RE Supply Scheme (CRESS) is also being implemented to facilitate access for data centre operators to RE sources generated by third parties.

“CRESS will facilitate and enable more data centres to benefit from RE, making the operational costs of the centres more competitive in the long term,“ he added.

Source: Bernama

MITI finalising sustainable development guidelines for data centres

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The Japan Bank for International Cooperation (JBIC) has expressed its commitment to enhancing existing investments by attracting more Japanese investors to Malaysia, said Prime Minister Datuk Seri Anwar Ibrahim.

He said that JBIC, a Japanese government-owned institution, is currently actively discussing investments with local companies in various industries.

Earlier, Anwar received a courtesy visit from a JBIC delegation led by its chairman cum special advisor to the Japanese government Tadashi Maeda.

“I emphasised the importance of strengthening the friendship and close cooperation between Malaysia and Japan to explore more high-quality investments.

“This is to ensure that investment cooperation, particularly in the energy sector, is realised for the benefit of the people,” he said in a Facebook post.

During the meeting, Anwar revealed that they also exchanged views on green energy development, renewable energy, and the energy market.

The discussions also included the construction of data centres and investments in the digitalisation industry.

Source: Bernama

JBIC commits to enhancing Japanese investments in Malaysia — PM

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Sarawak has the advantage of having renewal energy and water in abundance, which would enable the data centre industry to thrive in the state, said the Premier.

Datuk Patinggi Tan Sri Abang Johari Tun Openg noted that data centres need sufficient and reliable supply of energy and water as a cooling agent to enable them to function smoothly.

“You asked me if Google can go to Sarawak, it depends on you (Google). It’s not up to us to decide because basically what you want is the bottom line.

“If you can have the bottom line more in Sarawak, why not come to Sarawak?” he said at a luncheon jointly hosted by digital technology solutions provider Accenture and Google Singapore yesterday on the sidelines of the weeklong Singapore International Energy Week (SIEW) Summit.

Sarawak currently has one Tier IV data centre located in Santubong, which was launched in 2022 and operated by PP Telecommunication Sdn Bhd.

During the recent International Digital Economy Conference Sarawak (Idecs) 2024, Aizo Group Bhd inked a memorandum of understanding (MoU) with NetRunner Sdn Bhd to jointly establish a Tier IV data centre hub in the state to meet an increasing demand for secure and reliable data storage and processing facilities.

Abang Johari acknowledged that while places such as Singapore enjoyed an advantage in the growth of data centres, Sarawak’s location would not be a problem with connectivity.

“Your operation can be in Sarawak but you may work from other parts of the world if there’s good connectivity,” he said.

Abang Johari later met with Singapore Senior Minister Teo Chee Hean and Education Minister Chan Chun Sing.

Earlier, he had a meeting with Richard Lochhead, Minister for Business of the Scottish Government, and Deputy Minister (Energy) at the Prime Minister’s Office of Brunei Dato Seri Paduka Awang Mohamad Azmi Mohd Hanifah.

Upon arrival at the Sands Expo and Convention Centre in the morning, the Premier was interviewed by CNBC and later delivered his keynote address as well as launched the Sarawak Energy booth.

In the evening, he and key members of his entourage were guests at a dinner hosted by Second Minister for Trade and Industry Tan See Leng.

Source: Borneo Post

In wooing Google, Premier points out abundance of renewable energy, water in Sarawak for data centres to thrive

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The initiatives tabled in Budget 2025 enable Malaysia to attract more high-quality, innovative and sustainable investments, making Malaysia a preferred investment destination in the Southeast Asian region, said the Malaysian Investment Development Authority (MIDA).

Chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said Budget 2025 is an important step to realise the goals of the MADANI Economy framework.

He said MIDA continues to play a role in supporting a fresh investment climate for investors and the business community to drive economic growth and prosperity for the country.

“We are very excited about the range of incentives announced in the budget, which will further enhance the competitiveness of the business community, attract targeted quality investment and create new opportunities to generate inclusive and sustainable economic growth,” he said in a statement today.

In line with the MADANI Economy framework, MIDA said Budget 2025 reflects Malaysia’s commitment to supporting inclusive and sustainable economic growth.

“This budget will also empower the business community, drive innovation, increase the value of the dynamic manufacturing and service sector ecosystem, while generating benefits for the people.

“Through the initiatives outlined, the Ministry of Investment, Trade and Industry (MITI) and MIDA are committed to doubling their efforts and role to strengthen the country’s competitiveness at regional and international levels,” he said.

Last Friday, Prime Minister Datuk Seri Anwar Ibrahim tabled Budget 2025, containing a series of support measures to help the business community and initiatives to stimulate a strong and robust national economy.

Among the measures announced are the implementation of the Global Minimum Tax, Supply Chain Resilience Measures, and a proposal to review the feasibility of the Strategic Investment Tax Credit.

Source: Bernama

Budget 2025 To Attract More Quality Investments, Making Malaysia Preferred Investment Destination – MIDA

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The 2025 Budget features many incentives to enhance business competitiveness and attract high-quality investments.

This aligns with the government’s goal to make Malaysia a preferred investment destination in Southeast Asia, said the Malaysian Investment Development Authority (MIDA).

Its chief execuyive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the budget is a crucial step towards realising the goals of the Madani Economic Framework.

“MIDA remains dedicated to supporting a fresh investment climate for investors and the business community to drive our country’s economic growth and prosperity,” he added.

MIDA welcomed the implementation of the 15 per cent Global Minimum Tax (GMT) under Base Erosion and Profit Shifting (BEPS) Pillar 2 from January 2025.

This will ensure the country’s tax system aligns with international standards without discouraging existing investments, it said.

MIDA also said the supply chain resilience initiative can help local companies to participate in global markets as the tax deduction and investment funds will foster collaboration between multinational enterprises (MNEs) and local suppliers.

The initiatives include MNEs receiving double tax deduction of up to RM2 million annually for three years, while joint venture between MNEs and local suppliers will benefit from investment-related tax deductions.

A matching fund of RM100 million, meanwhile, is available for sectors like electronics, specialty chemicals and medical devices.

Source: NST

Budget offers incentives to drive competitiveness, attract quality investments: MIDA

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The National Semiconductor Strategy (NSS) provides a more balanced approach that focuses on developing local champions to compete globally unlike earlier strategies that prioritised foreign direct investments (FDIs), according to RHB Research.

The firm said Malaysia is now the sixth largest semiconductor exporter globally and the Investment, Trade and Industry Ministry aims to rise to the third or fourth.

The NSS is designed to help achieve this through a three-phase approach such as building on the nation’s existing strong foundation, moving to the frontier and innovating at the frontier to ensure sustained growth.

“Supporting these ambitions are the various incentives introduced, including pioneer status, investment tax allowances, import duty exemptions, and reinvestment allowances,” RHB Research said in a report after hosting an event recently featuring representatives from the ministry, Dagang NeXchange Bhd (DNeX) and Institute of Strategic and International Studies (ISIS).

RHB Research said the ministry has an ambitious RM500 billion investment target with a moving target of five to 10 years.

The focus is not limited to integrated circuit (IC) design but also includes semiconductor manufacturing equipment, advanced packaging, and front-end semiconductor processes.

Investments could also extend to specialty chemicals, equipment and material.

“In terms of fiscal support, RM25 bilion has been allocated for fiscal incentives and development expenditure to support advance packaging centres or facilities,” it added.

RHB Research said ISIS had emphasised the need to reshape the semiconductor value chain amid global tech rivalries and export controls.

To enable Malaysia to move up the value chain, the institute underscores the importance of bridging research and development (R&D) gaps, pooling resources from research institutes, and focusing on talent development.

RHB Research identified three key NSS issues which are supply chain resilience, ensuring cost competitiveness, and sourcing talent.

“To address talent gaps, initiatives such as Collaborative Research in Engineering, Science, and Technology (CREST) were introduced, collaborating with tertiary education institutions to channel resources more effectively.

“There is also a need to create attractive packages to draw talent into the sector, ensuring the industry has the necessary workforce to grow,” it said.

Meanwhile, environmental, social and governance considerations are being addressed through the development of a green framework, with the Kerian Industrial Park serving as a reference.

Source: NST

NSS gives more balanced approach to develop champions on global stage: RHB Research

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The implementation of a sustainability-linked regulatory framework could catalyse data centre developments in regions beyond Cyberjaya and Johor, such as Kedah, as investors seek to tap into new areas for digital hubs, according to BMI.

BMI, a Fitch Solutions company, believes this could create a scenario where these emerging regions either benefit from demand spillover from major markets or evolve into new digital hubs.

However, this strategy requires a higher risk tolerance, as investors may need to commit capital even when demand may not materialise immediately in these regions.

In a statement today, it noted that Kedah shares similar characteristics with Malaysia’s major markets before they became saturated, making it an attractive option for investors.

Its strategic location enables it to capitalise on the submarine cables that run in Southern Thailand — a connectivity source which could be leveraged by data centres.

It said the real estate private equity firm, the Area Group, has begun construction of a data centre campus in Kedah.

“Investment into this area comes amidst above-average power, water and connectivity infrastructure presence, hedging against the potential introduction of regulation aimed at enforcing sustainability-linked standards for the domestic data centre industry.

“These are likely to be contributing factors to the movement of investment away from saturated domestic sub-markets such as Johor,” it noted.

The first phase of the data centre campus will have an estimated gross development value (GDV) of US$2.4 billion (US$1=RM4.30), and the entire 63 hectares, upon completion, will have an estimated GDV of US$15 billion.

Nevertheless, BMI still believes Johor will continue to be the leader in Malaysia in terms of upcoming information technology (IT) (critical power) load, with 268.5 megawatts (MW) of live capacity.

There are approximately 507MW of capacity under construction, and another 921MW planned for delivery over the long term.

However, it noted that flooding is a key environmental risk, posing a threat to the timeliness and cost implications of projects within the region.

“It is noteworthy that flooding is a large risk in many parts of Malaysia, however, investors may be enticed by the lack of structural constraints compared to the most saturated markets,” it said.

Source: Bernama

Sustainability plan to boost Malaysia’s data centre growth – BMI

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Budget 2025 has set aside sizeable funds, both fiscal and non-fiscal, towards ensuring the success of the National Semiconductor Strategy (NSS), which is part of the New Industrial Master Plan 2030 (NIMP 2030).

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said that among the initiatives announced in the budget are the RM1 billion sovereign fund for the electrical and electronics sector and high-value activities as well as training funds allocated for several universities.

Apart from that, he said there are initiatives to support mid-tier companies as well as tax incentives for companies in the industry.

“I think we are on track (to achieve the target set in NIMP 2030). You have seen exports continue to grow in these sectors as well.

“And if you look at the just-announced report card yesterday for our NIMP 2030, we should see positive growth at this year-end, and growth in the manufacturing sector has contributed close to a 5% increase to our gross domestic product this year,” he said this during an interview with CNBC Asia Squawk Box on Tuesday.

Tengku Zafrul was commenting on the progress of NSS and NIMP following the Budget 2025 announcement on Friday.

When asked how the new tax will help finance the bigger budget of RM421 billion, he said that apart from the tax on dividends as well as the larger scope of the sales and service tax, emphasis is given on cost discipline, for instance, via the merging of several agencies under the Ministry of Investment, Trade and Industry.

“Yes, I am quite confident that we will meet the budget estimate. We have been meeting our deficit target, for example, and I think we will hopefully achieve it (fiscal target) in 2024 as well,” he said.

The ministry will also continue with initiatives to drive trade and investments to spur the country’s growth, added Tengku Zafrul.

Source: Bernama

Zafrul: Budget 2025 measures show strong support for semiconductor sector

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The Ministry of Investment, Trade and Industry (Miti) will remain committed to driving international trade, investments of high quality and the development of innovative industries to spur sustainable economic growth in the country.

Minister Tengku Datuk Seri Zafrul Abdul Aziz said he welcomed Budget 2025’s goals as well as the allocated Rm2.184bil that has reflected the government’s confidence in the role that Miti has played so far.

“Miti welcomes the implementation of the New Investment Incentive Framework, which is set to be introduced in the third quarter of 2025.

“We are also appreciative of the Rm200mil for the Strategic Co-investment Fund and the NIMP Industrial Development Fund,” he said in a statement.

According to Tengku Zafrul, some of the bigger plans include the Rm1bil allocation from Khazanah Nasional Bhd that will continue strengthening Malaysia’s position in the semiconductor sector that is expected to hit RM1 trillion by 2030.

He also said the expansion of tax incentives for integrated circuit design is also likely to stimulate the electric and electrical exports.

“With the aim to continue the digitisation journey, Miti welcomes the Rm10mil for the adoption of Aartificial intelligence (AI) in academia which supports the National Artificial Intelligence Office,” he said.

In the electric vehicle (EV) space, Tengku Zafrul said the Rm10mil allocation, for the extension of completely knocked down electric motorcycle usage incentive scheme which provides a rebate of up to RM2,400, will be continued by Malaysia Automotive Robotics and IOT Institute.

“The adoption of EVS by Malaysians will also be expanded through the pricing of Malaysia’s first EV, currently being produced by Perusahaan Otomobil Kedua Sdn Bhd at less than RM100,000,” he noted.

On carbon tax to be introduced in 2026, Tengku Zafrul said it would encourage the iron and steel industry to transition to low-carbon production, including carbon capture, utilisation, and storage technology.

Source: The Star

Zafrul: Govt shows confidence in the role of Miti

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The Investment, Trade and Industry Ministry (Miti) is confident of achieving the first-year targets of the New Industrial Master Plan 2030 (NIMP 2030), having already fulfilled three of the main indicators set, according to its minister Tengku Datuk Seri Zafrul Abdul Aziz.

Following the launch of NIMP 2030 on Sept 1, 2023, the manufacturing sector’s value added to the gross domestic product rose by 4.7%, or RM4.2bil, in the second quarter of 2024 against the same period in 2023 while the number of jobs increased 0.9%, or 200,000, he said.

Meanwhile, the median salary for the sector improved by RM201, or 8.2% year-on-year, in the first quarter of 2024 compared with the same quarter last year.

Under NIMP 2030, Miti targets to hit manufacturing sector value added of RM587.5bil, the creation of 3.3 million job opportunities and an increase in median salary to RM4,510 by 2030.

“Nearly all key performance indicators have been met for 2024.

“There’s still a lot of work to be done, and while we still have five years to go, time is becoming shorter and the economic situation is getting more challenging,” he told the media after presenting the Miti Report for the third quarter of this year yesterday.

Source: Bernama

Manufacturing sector gains from NIMP 2030

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Almost all KPIs have been met but there is still much work to be done, says Zafrul

THE Investment, Trade and Industry Ministry is confident that it can achieve the primary targets set for the first year of the New Industrial Master Plan (NIMP) 2030.

Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said this stemmed from the fact that three key targets had shown impressive progress since last year.

“Based on the NIMP 2030 launched on Sept 1 last year, the value-added contribution of the manufacturing sector to the gross domestic product has increased by 4.7 per cent, amounting to RM4.2 billion.

“Employment has also risen by 0.9 per cent, or 200,000 workers, as of the second quarter of this year compared to the same quarter last year. Additionally, the median salary in the manufacturing sector increased by 8.2 per cent, or RM201, as of the first quarter, year-on-year.

“Almost all key performance indicators (KPIs) for 2024 have been met,” he said after presenting the ministry’s third quarter report card yesterday.

However, Tengku Zafrul said there was still much work to be done.

He said time was running short and the economic environment was becoming more challenging.

Under NIMP 2030, the ministry aims to achieve a value-added contribution of RM587.5 billion from the manufacturing sector, create 3.3 million jobs and raise the median salary to RM4,510.

According to the report card, Malaysia approved RM6.2 billion in green investments through the Malaysian Investment Development Authority in the first half, focusing on renewable energy, energy efficiency and circular economy initiatives.

The effort resulted in 436 projects that would create 3,843 jobs, with 82.1 per cent already implemented.

The ministry also said domestic investments had shown promise with significant projects like Asiabina Solar Sdn Bhd investing RM200.4 million in a solar project in Parit Buntar, Perak.

Foreign investments include a new semiconductor manufacturing facility by Silware Precision Malaysia Sdn Bhd in Penang projected to create 3,000 jobs.

The ministry also said trade performance was robust, with total trade reaching RM2.139 trillion from January to September.

This included RM1.115 trillion in exports and RM1.024 trillion in imports, resulting in a trade surplus of RM91.21 billion.

Notable trade initiatives like the Malaysia International Halal Showcase generated significant sales.

Additionally, regulatory reforms across 27 ministries led to cost savings of RM561.5 million for businesses.

Source: The Star

Ministry Confident of Hitting Main Targets

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The implementation of the Kerian Integrated Green Industrial Park (KIGIP) development is one of the fastest in history, with planning permission approval obtained in less than three months from the launch date.

Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz said that normally, this process takes more than six months.

“The project is on track and is now closely monitored by the Special Task Force led by MITI (investment wing) and Perak’s Economic Planning Unit,” he said when presenting the MITI Report Card for the
third quarter of 2024 here on Monday.

The KIGIP groundbreaking ceremony was officiated by Prime Minister Datuk Seri Anwar Ibrahim in August.

According to Tengku Zafrul, the land study is being carried out by SD Guthrie Bhd for the soil treatment process, which is expected to start in January 2025.

“We are grateful to the Perak government and the relevant ministries for speeding up the process,” he said.

The KIGIP project is implemented in a whole-of-government approach through collaboration and synergy between the federal government, the state government as well as SD Guthrie and Permodalan Nasional Bhd.

Source: Bernama

KIGIP Industrial Park Development Implementation Among The Fastest In History – Tengku Zafrul

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THE rising demand for skilled talent in the digital industry is set to be addressed with the launch of the Digital TVET & Careers hub in Kuala Langat.

Officiated by Deputy Digital Minister Datuk Wilson Ugak Anak Kumbong, the initiative was spearheaded by TVETAA, an organisation dedicated to advancing technical and vocational education and training in Malaysia, and supported by key industry players and training organisations, aiming to equip the workforce with critical digital skills.

“The digital landscape in Malaysia is evolving rapidly, and with it, the demand for skilled talent has reached unprecedented levels, driven by local and international investments.

“The future of work is changing globally, accelerated by emerging technologies like Artificial Intelligence (AI), big data, cloud computing, and cybersecurity.

These trends are highlighted in the World Economic Forum’s Future of Jobs Report 2023, signaling the urgency for a well-prepared digital workforce,” said Wilson Ugak on Sept 26.

The Digital TVET & Careers hub aims to bridge the gap between the demand for digital talent and the current supply from educational institutions.

“We are addressing this issue by offering industry-recognised, internationally certified qualifications, ensuring our talents meet the evolving needs of digital players,” said TVETAA managing director Datuk Bruce Lim Aun Choong.

This unique partnership unites industry leaders, educational institutions, and digital training providers to create a seamless talent pipeline, he added.

Leading companies and the Malaysia Digital Chamber of Commerce (MDCC) also pledged their support by establishing industry labs and resources within the hub.

“The TVET hub offers a blend of academic learning, hands-on upskilling and reskilling, and the cultivation of a growth mindset.

“Our goal is for the hub to act as a finishing school, preparing candidates from partner institutions for real-world digital careers,” he said.

By shortening traditional educational pathways and aligning them with industry needs, the initiative ensures just-in-time talent production, preparing the workforce to meet the fast-evolving demands of the digital economy.

Malaysia Digital Economy Corporation (MDEC) senior vice president Raymond Siva said this significantly reduces the time required to develop industry-ready talents while keeping pace with technological advancements.

“We will continue collaborating with industries to identify current and future skill demands, facilitated by agencies like MDEC and the Malaysia Productivity Corporation (MPC).

“Simultaneously, we are working with institutions such as universities, polytechnics, colleges, and GIATMARA centres to identify high-potential digital talents for our training programmes,” said Wilson Ugak, who also witnessed the signing of collaborative agreements between TVETAA and institutions like Universiti Malaysia Kelantan (UMK), Universiti Putra Malaysia (UPM), Universiti Malaysia Sabah (UMS), and various polytechnics and GIATMARA centres during the event.

Source: The Star

New regional digital TVET hub to train talents

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The Investment, Trade and Industry Ministry (MITI) is confident of achieving the first-year targets of the New Industrial Master Plan 2030 (NIMP 2030), having already fulfilled three of the main indicators set, according to its minister Tengku Datuk Seri Zafrul Abdul Aziz.

Following the launch of NIMP 2030 on Sept 1, 2023, the manufacturing sector’s value added to the gross domestic product rose by 4.7 per cent, or RM4.2 billion, as of the second quarter of 2024 against the same period in 2023 while the number of jobs increased 0.9 per cent, or 200,000, he said.

Meanwhile, the median salary for the sector improved by RM201, or 8.2 per cent year-on-year (y-o-y), in the first quarter of 2024 compared with the same quarter last year.

Under NIMP 2030, MITI targets to hit manufacturing sector value added of RM587.5 billion, the creation of 3.3 million job opportunities and an increase in median salary to RM4,510 by 2030.

“Nearly all key performance indicators (KPIs) for 2024 have been met. There’s still a lot of work to be done, and while we still have five years to go, time is becoming shorter and the economic situation is getting more challenging,” he told the media after presenting the MITI Report Card for 3Q 2024 today.

Tengku Zafrul said that under Mission 1 (Economic complexity), MITI has achieved commendable progress in efforts to strengthen the country’s position in the global semiconductor landscape through two key action plans that support this mission — creating global integrated circuit (IC) champions from Malaysia and attracting global firms to establish wafer fabrication facilities.

He said that in 3Q, a total of 500 engineers and 557 technical workers have been trained to strengthen the nation’s technical expertise in IC design and semiconductor production.

“A total of 4,673 people have been hired, comprising 1,130 engineers or technical experts. Technical workers made up 97 per cent of the total hired, reflecting a rise in technical talent.

“This initiative has also attracted large investments totalling RM35.6 billion (in 3Q), comprising RM0.97 billion in direct domestic investment and RM34 billion in foreign direct investment,” he said.

Further, he said, Malaysia saw the formation of three local IC design firms, a major step towards building the nation’s capability in this critical sector.

Under the Chemical Industry Roadmap 2030, Malaysia’s chemical industry attracted investments worth RM3.1 billion in the January-June 2024, up more than 82 per cent from RM1.7 billion in the previous year.

In addition, the chemical sector contributed RM55.3 billion to exports from January-September 2024, a growth of 4.3 per cent y-o-y.

Tengku Zafrul also expressed satisfaction with the performance under Mission 2 — national digital transformation for the manufacturing and manufacturing-related services (MRS) sectors that started with the introduction of the Industry4WRD programme in 2018, including initiatives such as the intervention fund.

“Under NIMP 2030, a new, improved initiative is being introduced — Smart Technology Uptake (Smart Tech Up) Programme which will be launched in the fourth quarter (4Q) of 2024, with the main goal of creating 3,000 smart factories by 2030.

“The new Smart Tech Up technology model will replace the Industry4WRD Readiness Assessment model,” he said.

The minister said that of the 406 companies approved via the intervention fund programme to embrace Industry 4.0, the majority are in a good position to fulfil the definition of “smart factory” as outlined in the Smart Tech Up Programme.

On NIMP 2030’s Mission 2 focused on digital investments, he said there is an increasing trend, with more than 64,000 job opportunities created from the RM185 billion of investments approved from 2021 to 2Q 2024.

Mission 3 targeting net-zero carbon emissions is also going well, according to him.

“Perodua’s plan to produce its first commercial electric vehicle by 4Q 2025 is also proceeding smoothly,” he said.

He also noted that the Circular Economy Policy Framework (CEPF) was launched on Sept 26 to drive more efficient manufacturing process towards reducing waste production.

“To tackle the high emissions for sectors that are hard to terminate, MITI has completed the basic pre-feasibility work for two pioneer projects in the steel and cement sectors.

“For carbon capture, utilisation and storage (CCUS), basic pre-feasibility work has been completed with the actual study to start in 4Q this year,” he added.

Source: Bernama

NIMP 2030 succeeds in raising value added, jobs, median salary in manufacturing sector – Tengku Zafrul

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Investment, Trade and Industry Ministry will announce details of the new Investment Incentive Framework in the first quarter of next year (1Q25).

Its minister Tengku Datuk Seri Zafrul Abdul Aziz said work on the framework has already begun this year and will be presented at the National Investment Council in December.

He added that there are several reasons why the framework needs to be reviewed. This includes the need to update how investments are assessed.

He noted that investments entering the country must add value to the economic sector by benefiting local companies and providing quality job opportunities.

Tengku Zafrul said in terms of sustainability, investments must be in sectors that do not produce high carbon emissions.

“Furthermore, we must also be prepared as Malaysia is one of the countries that agreed to implement a global minimum tax of 15 per cent next year,” he told reporters after announcing the ministry’s report card for the third quarter of 2024 here today.

“Therefore, we can no longer attract investments by offering tax exemptions of up to zero percent, and there must be other incentives such as focusing on talent and green sectors.

“So fundamentally, it is a new way to look at incentives. Incentives can no longer be given in bulk but must be targeted at industries that can genuinely help enhance the country’s economic value,” he added.

The government announced the framework during the presentation of the 2025 Budget last Friday.

It will focus on high-value activities instead of existing product-based incentives and is set to be implemented in 3Q25.

The framework aims to enhance diversity in the electrical and electronic sector through high-value-added activities such as integrated circuit (IC) design services and advanced materials, along with tax incentives to promote exports related to IC design activities.

Source: NST

Details on new investment incentive framework in Q1 2025: Tengku Zafrul

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Investment in digital infrastructure is crucial for driving innovation, strengthening Malaysia’s economy, and ensuring long-term competitiveness in the global market.

In response to the 2025 Budget announcement, Open DC founder and managing director Weng-Yew Wong said, “”The allocation of RM3.8 billion by Bank Negara in SME funding loans marks a significant step in empowering entrepreneurs as they transition to digitalisation and automation.”

Wong, who is also the founder and managing director of Extreme Broadband, emphasised that this initiative will support small and medium-sized enterprises (SMEs) in their digital transition, helping them remain competitive in the global market.

He also lauded the additional RM10 million allocated to the National Cyber Security Agency (NACSA) and the recruitment of 100 new personnel to enhance national security, which will boost confidence in Malaysia’s digital economy and make the country more resilient in an increasingly interconnected world.

However, Wong noted that the RM10 million allocation is just a starting point, as the scale of investment needed is far greater.

The announcement of a second 5G network to strengthen Malaysia’s ICT sector and accelerate 5G adoption is timely, he said, especially as the country prepares for its Asean chairmanship in 2025.

Wong said he believes that the investment in digital infrastructure by the government is important to elevate Malaysia’s global position and foster a more competitive business environment.

Source: NST

Investment in digital infrastructure vital to sustain competitiveness in global market

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The Ministry of Investment, Trade, and Industry (MITI) is confident that it can achieve the primary targets set for the first year of the New Industrial Master Plan (NIMP) 2030, according to Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He noted that this confidence stems from the fact that three key targets have already shown impressive progress.

“Based on NIMP 2030, launched on Sept 1, 2023, the value-added contribution of the manufacturing sector to the gross domestic product (GDP) has increased by 4.7 per cent, amounting to RM4.2 billion.

“Employment numbers have also risen by 0.9 per cent or 200,000 workers, as of the second quarter of 2024 (2Q24), compared to 2Q23.

“Additionally, the median salary in the manufacturing sector increased by 8.2 per cent or RM201, as of 1Q24, year-on-year.

“Almost all key performance indicators (KPIs) for 2024 have met their targets,” he told reporters after presenting MITI’s 3Q24 report card today.

However, the minister noted that there is still much work to be done.

He said while five years remain, time is running short, and the economic environment is becoming more challenging.

Under NIMP 2030, MITI aims to achieve a value-added contribution of RM587.5 billion from the manufacturing sector, create 3.3 million job opportunities, and raise the median salary to RM4,510 by 2030.

According to MITI’s 3Q24 report card, Malaysia has approved RM6.2 billion in green investments through the Malaysian Investment Development Authority (MIDA) in the first half of 2024 (1H24), focusing on renewable energy, energy efficiency, and circular economy initiatives.

This effort has resulted in 436 projects, creating 3,843 jobs, with 82.1 per cent already implemented.

MITI also noted that domestic investments have shown promise with significant projects like Asiabina Solar Sdn Bhd investing RM200.4 million in a solar project in Parit Buntar.

Foreign investments include a new semiconductor manufacturing facility by Silware Precision Malaysia Sdn Bhd in Penang, projected to create around 3,000 jobs.

The ministry also said Malaysia’s trade performance has been robust, with total trade reaching RM2.139 trillion from Jan to Sept 2024.

This included RM1.115 trillion in exports and RM1.024 trillion in imports, resulting in a trade surplus of RM91.21 billion.

Notable trade initiatives like the Malaysia International Halal Showcase (MIHAS) have generated significant sales, while the Export Day 2024 reported that 50.63 per cent of companies were actively engaged in exports.

Additionally, regulatory reforms across 27 ministries have led to cost savings of RM561.5 million for businesses.

Meanwhile, Tengku Zafrul said his ministry welcomes the 2025 Budget allocation, which reflects the government’s commitment to strengthening the national economy through strategic investment, industrial, and trade initiatives.

He noted that the budget allocation for MITI was higher than in 2024, with a total of RM2.18 billion allocated to the ministry for 2025.

“MITI is committed to ensuring that every cent of the allocated funds is utilised optimally for the well-being of the people and the economic development of the country,” he said.

Source: NST

Tengku Zafrul: First-year target of NIMP 2030 is attainable

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The second 5G network can increase the country’s competitiveness as well as attract investment from technology-based companies to establish business facilities in Malaysia, said the Academic Coordinator of the Faculty of Electrical Engineering, Universiti Teknologi Malaysia (UTM), Associate Prof Dr Leow Chee Yen.

He said the second 5G network to be announced by the government, as tabled by Prime Minister Datuk Seri Anwar Ibrahim in Budget 2025 in the Dewan Rakyat last Friday, will showcase the country’s infrastructure development, which is on par with that of developed nations.

“It will also speed up the digitisation of various economic sectors. With the introduction of two 5G networks, we hope to fast-track the implementation of advanced industrial applications such as automation, robotics and artificial intelligence, which demand a network that is highly responsive, fast, and reliable,” he said when contacted by Bernama.

Leow praised the tabling of Budget 2025 which allocated RM120 million to improve internet access in all public institutions of higher learning (IPTA), schools, military camps and MARA institutions.

“The internet facilities in most of these institutions are now obsolete. The use of modern technology will provide faster and more efficient internet access,” he said.

In another development, Leow lauded the use of MyDigital ID, a unified government application that integrates all relevant agencies, making it easier for the public to manage their affairs.

He said the application allows citizens to access various government services using one account, all at their fingertips.

“For me, more important is the advanced security features in MyDigital ID. It uses the latest technologies such as encryption, blockchain, multi-factor authentication as well as smart artificial intelligence, to ensure that all online transactions are done safely and reliably.

“In addition, the use of MyDigital ID can also reduce cases of identity theft, forgery and cyber fraud that have been increasing lately,” he said.

Meanwhile, Information Technology expert, Dr T Sashi Kumar welcomed the allocation of RM100 million to strengthen the functions of the National Information Dissemination Center (NADI) nationwide.

The move, he said, will improve existing infrastructure and services, while benefiting the Small, Micro and Medium Businesses (PMKS).

“It will help speed up the business digitization process as well as resolve issues related to financing and e-payment, as often emphasised by traders.

“This will also encourage the PMKS sector to digitalise their services and accelerate the use of electronic payments,” he added.

Meanwhile, the Dean of UTM’s Faculty of Electrical Engineering, Prof Dr Jafri Din said the RM20 million allocation in Budget 2025 to strengthen the role of the National Fraud Response Centre will strengthen the management of the online fraud system in this country.

Source: Bernama

Second 5G network can increase country’s competitiveness, attract investment — academicians

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Sarawak is committed to supporting Southeast Asia’s transition to renewable energy by harnessing its potential to become the “Battery of Asean”, supplying predominantly renewable power through the interconnected Borneo and Asean Power Grid.

Sarawak Premier Tan Sri Abang Johari Tun Openg said as regional demand for clean energy increases, these efforts are crucial for enhancing cross-border energy exchange, strengthening regional energy security, and accelerating clean energy transition.

“Looking ahead to the Asean Plan of Action for Energy Cooperation for the 2026–2030 period, and with Malaysia set to assume the Asean chair in 2025, we are committed to deepening regional cooperation and fostering greater connectivity across our energy systems,” he said in his keynote address at the Singapore International Energy Week (SIEW) Summit on Monday.

The premier, in pushing the envelope further, said making the Asean Power Grid a reality would require more than just technological and financial solutions.

“It needs political will, policy alignment, harmonisation of regulations and standards, infrastructure development, and regional cooperation.”

Abang Johari said Sarawak is collaborating with the federal government to advance the Asean Power Grid, with the formation of a joint taskforce between Malaysia and Indonesia to accelerate its development.

He emphasised that Sarawak is not only focused on providing clean power for its own development but also sees significant commercial potential in exporting electricity.

Abang Johari said the state is a strong proponent of regional interconnectivity, foreseeing that power trade within Asean will gradually shift from bilateral connections to a more integrated network incorporating renewable sources.

He said Sarawak’s partnerships with Indonesia, Sabah, Brunei and Singapore could serve as a foundation for cross-border energy trade through pioneering projects such as the Borneo-Indonesia-Malaysia-Philippines Interconnection.

Abang Johari shared that since 2012, Sarawak has formed a partnership with Indonesia’s Perusahaan Listrik Negara in the Kalimantan region, marking a significant step towards regional energy collaboration in Borneo.

Building on this foundation, he said Sarawak is advancing the Mentarang Induk Hydroelectric Plant (MIHEP) in Indonesia, a project that promises to reshape the nation’s energy landscape, and explore the potential to link North Kalimantan’s significant hydropower resources to the rest of Borneo and beyond.

“From our role as energy producer, exporter and utiliser, Sarawak is committed to foster cross-border partnerships and investments as our energy transition success stories can serve as models for other jurisdictions.”

Speaking at a press conference later, Abang Johari said discussions are still ongoing with Indonesia regarding Sarawak’s undersea cable project to export electricity to Singapore, with hopes that the infrastructure could be ready by 2030.

“Next year, Malaysia as the chair of Asean will initiate further on this.”

Source: Bernama

Sarawak aims to lead regional energy transition, becoming the ‘Battery of Asean’, says Abang Johari

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Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz remains committed to increasing the productivity of his ministry to ensure that Malaysia continues to be an investor and trade-friendly country.

According to him, as a result of the Ministry of Investment, Trade and Industry’s (MITI) community, the ministry has received two certificates of appreciation from the Chief Secretary to the Government for completing the Guidelines for Self-Regulation of the Electric Vehicle and Battery Management Industry and reducing the approval period for the Regulatory Impact Statement (RIS) Process.

The approval period for RIS has been reduced from two months to 10 days, he said in a press conference to present the MITI report card for the third quarter of 2024 here on Monday.

Tengku Zafrul added that the improvement of rules and processes also saw 166 projects registered under the Bureaucracy Red Tape Reformation effort, with estimated cost savings on regulatory compliance for the citizens and businesses amounting to RM561.5 million.

“In terms of improving business regulations, as of September 2024, the Malaysia Productivity Corporation (MPC) has achieved savings of RM922 million under the Good Regulatory Practices (GRP). ”This effort will continue to increase the productivity of the agencies under the supervision of MITI,” he said.

Among the key performance indicators (KPIs) under the GRP are potential cost savings for registered projects, number of regulatory reform projects registered, number of regulatory reform projects completed and cost savings for completed projects.

Source: Bernama

Tengku Zafrul Committed To Increasing Productivity Of MITI, Agencies

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The allocation of RM421 billion under the MADANI Budget 2025 will set a strong foundation for revitalising the economy, driving positive change and ensuring the well-being of Malaysians, Iskandar Investment Berhad (IIB) president and chief executive officer Datuk Idzham Mohd Hashim said.

He added that the government’s approach reflected its commitment to sustainable growth while maintaining fiscal stability, which would help normalise spending and create a more predictable economic environment.

“The budget provides a clear path forward by maintaining fiscal discipline, encouraging investor confidence, and creating a conducive environment for foreign direct investment (FDI).

“By focusing on reducing the national debt and rationalising subsidies, the MADANI government is laying a stable foundation that aims to keep inflation in check while stimulating long-term growth, ” he said in a statement today.

Idzham said the RM7.5 billion allocated towards Technical and Vocational Education and Training (TVET) and the emphasis on science, technology, engineering, and mathematics (STEM) in education, reflect the Government’s strategy to future-proof the local workforce.

“We align with this vision by driving initiatives that foster high-value employment in Iskandar Puteri, collaborating closely with industry leaders, and leveraging EduCity Iskandar, our dedicated education arm.

“EduCity continues to play a crucial role in attracting top talent and solidifying Johor’s reputation as a centre of excellence in education and innovation,” he added.

Furthermore, he also commended the Budget’s focus on sustainability, such as the incentives for carbon capture, utilisation and storage (CCUS) activities, the introduction of carbon tax and the extension of the net-energy metering (NEM).

“This would allow us the opportunity to expand further and establish Medini as a Net Zero Carbon Central Business District, where digital innovation and sustainability converge to create a thriving business ecosystem.

“It will also present an opportunity for IIB to attract start-ups and foster the growth of Tech Medini as a dynamic hub for digital innovation in Iskandar Puteri, ” he said, adding that IIB remained dedicated to building a sustainable and inclusive metropolis in Iskandar Puteri.

“We believe that economic growth should go hand in hand with social inclusivity and environmental responsibility. By collaborating with industry leaders and stakeholders, we are creating an ecosystem that integrates technology, sustainability, and talent development, securing Johor’s future as a dynamic and resilient regional powerhouse, ” he said.

Source: Bernama

Budget 2025 Focused On Sustainable Development, Talent Growth, Strategic Investments

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The domestic manufacturing sector is expected to cement firmer footing across industries amid stable global economic growth.

According to the Economic Outlook report, the manufacturing sector is expected to strengthen by 4.5% in 2025, driven by significant policies such as the New Industrial Master Plan (NIMP 2030) and the National Semiconductor Strategy (NSS).

The report said domestic-and exportoriented industries continue to uphold the sector’s performance in line with resilient domestic demand and favourable external environment.

On the domestic front, production in household and consumer goods-related industries such as food, beverages, and textiles is expected to be sustained.

This aligns with supportive policy measures such as salary adjustments for civil servants and the withdrawal of the EPF Flexible Account, which will stimulate consumer spending.

The report said favourable tourist arrivals in conjunction with major international events will also spur the demand for consumer goods.

On the other hand, increasing approved and realised investments signifies a positive outlook for construction activities, thereby propelling growth in manufacturing construction-related materials.

Export-oriented industries are also expected to continue their growth trajectory, which aligns with the higher global demand for electronics components.

The electrical, electronic, and optical products subsector is expected to accelerate further, mainly underpinned by sustained demand for intermediate products, including advanced chips used in next-generation smartphones and other consumer devices.

Furthermore, the rising realisation of approved investment in the semiconductor industry, coupled with concerted efforts by the government to elevate the entire high-tech ecosystem under the NSS, will provide additional support to the subsector’s growth.

The report said the mining sector will likely face a subdued outlook for 2025.

It also noted that the mining sector is forecast to contract by 1% in 2025, following a sluggish performance in key subsectors.

The natural gas subsector is projected to decline as output decreases, mainly due to the planned shutdown of two facilities in Sarawak for maintenance purposes and moderating demand from major importing countries such as Japan, China and South Korea.

The overall natural gas production is expected to remain below the 2024 capacity despite several new plants being scheduled to commence operations.

Source: The Star

Domestic manufacturing industry set for expansion

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Sun Bus Tech has already laid a solid foundation for success over the past 12 months even before its official opening, firming up partnerships with industry giants like HESS Switzerland

Traditional bus maker pioneer Sun Bus Tech Sdn Bhd is set to up the game.

The leader in bus and bus body recently celebrated the grand opening of its advanced manufacturing facility in Senai Airport City, Johor.

Designed to produce over 500 commercial vehicles annually, the facility by the subsidiary of Sun Wah Group was expected to create over 150 jobs, driving local and regional economic development.

With the opening, Sun Bus Tech was set to lead the industry with its revolutionary electric buses, equipped with first-in-Malaysia technology imported from Europe and sustainable manufacturing practices.

The bus maker has unveiled its work on developing the Model T for electric vehicle manufacturer Foxtron, highlighting its capability to manage sophisticated projects for global leaders in the industry.

Sun Bus Tech founder/chairman Phang Sun Wah said that the company’s five decades of experience have led it to pioneer bus body manufacturing in Malaysia and beyond.

“Our partnership with global leaders like HESS and the technology transfer from Scania Sweden has enabled us to implement industry-first advancements, such as our patented Co-Bolt technology. This facility is not just about manufacturing buses, it’s about pushing the boundaries of what is possible in sustainable transportation, setting new standards that extend beyond conventional methods.

We are excited to have already secured significant contracts from regional and neighbouring governments, positioning Sun Bus Tech as the leader in the industry,” he said in a statement.

Johor State Public Works, Transport, Infrastructure and Communications Committee chairman Mohamad Fazli Mohamad Salleh mentioned that the establishment of Sun Bus Tech’s manufacturing plant is a good example of Johor’s dedication to becoming a sustainable and eco-friendly state.

“This venture is not only about creating green jobs and significantly reducing carbon emissions but also aligns with our broader vision for the Johor-Singapore Special Economic Zone (JS-SEZ). Through enhanced connectivity, modern facilities and an increased share of public transportation, we are determined to transition Johor — and Malaysia — towards a low-carbon economy, paving the way for a more sustainable and prosperous future,” said Mohamad Fazli.

Deputy Minister of Investment, Trade and Industry Liew Chin Tong said as Malaysia outlined its economic strategy for the ASEAN chairmanship, Johor was poised to play a pivotal role in fostering regional trade and investment.

“The JS-SEZ will also strengthen Malaysia’s position in regional and global supply chains,” he said.

Reflecting on the strategic partnership, Carrosserie HESS AG CEO Alex Naef said its collaboration with Sun Bus Tech allowed the company to bring top-tier European technology to the region, enabling the production of long-lasting, energy-efficient and recyclable transport solutions.

“This partnership is a crucial step towards a more sustainable and efficient future in public transportation,” he mentioned.

Sun Bus Tech has already laid a solid foundation for success over the past 12 months even before its official opening on Oct 11, firming up partnerships with industry giants like HESS Switzerland and secu- ring cutting-edge technology from Scania Sweden.

The integration of patented aluminium technology represents a significant industry breakthrough, while the facility’s focus on sustainability, including the use of solar panels, rainwater harvesting and energy-efficient systems, has earned the company a Green Building Index (GBI) certification, the company said in the same statement. In addition to bus and bus body manufacturing, Sun Bus Tech has also established a joint venture with the Polish seat manufacturer STER Sp z o o, focusing on the supply of commercial vehicle seats in Asia.

Sun Bus Tech’s journey began in the 1970s when it first ventured into the bus industry by launching a coachwork fabrication business. The early experience laid the ground- work for a larger venture he co-founded in 1989, focusing on bus and bus body manufacturing in Senai, Johor.

Sun Bus Tech’s expertise lies in crafting bus bodies tailored to various chassis configurations to ensure structural integrity and value. It offers solutions for every stage of the vehicle lifecycle — from design and construction to maintenance and digital platforms for real-time fleet monitoring.

Its initiatives include advanced battery recycling programmes that support a circular economy and reduce environmental impact.

Source: The Malaysian Reserve

Johor-based Sun Bus Tech opens advanced manufacturing facility

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Project to position state as digitally advanced region

Sarawak Energy Bhd (SEB) is to power the Sarawak Data Centre Park (SDCP) project, the state’s first energy-efficient tier four data centre hub to be located here.

Wholly-owned subsidiary Syarikat Sesco Bhd has inked a memorandum of understanding (MOU) with Netrunner Sdn Bhd on the sale and purchase of electricity for the project.

Netrunner is a special-purpose vehicle focused on attracting investments for a state-of-the-art data centre park in Sarawak and will lead the technical development and design of the SDCP.

Netrunner has also entered into a MOU with AIZO Bhd (formerly Minetech Resources Bhd) to explore the joint development of the SDCP.

Netrunner directors and shareholders Ahmad Rahizal Datuk Ahmad Rasidi and Emma Yazmeen Yip Mohd Jeffrey Yip are also executive directors of AIZO.

The two Mous were among several others signed and witnessed by Sarawak Premier Tan Sri Abang Johari Tun Openg during the 7th International Digital Economy Conference Sarawak 2024 here last week.

Data centre tiers are a standardised ranking system that indicates the reliability of data centre infrastructure.

This classification ranks from one to four, with one being the worst and four the best-performing level. A data centre receives this international ranking from an independent organisation, Uptime Institute.

Netrunner director Ronnie Lim said the set up of the proposed tier four data centre hub, which is targetted for completion in 2030, will enhance Sarawak’s reputation as a forward-thinking, digitally advanced region.

The SDCP is set to establish a new standard for data centre operations in Malaysia by addressing the increasing demand for advanced data storage and processing capabilities in the region.

The project aims to support local economic development while incorporating efficient technologies and sustainable practices in line with Sarawak’s commitment to green energy and responsible development.

Lim said the project will contribute to job creation, foster technological innovation and promote eco-friendly development initiatives.

“It embodies a vision where digital infrastructure growth harmonises with environmental stewardship and social responsibility, paving the way for a more sustainable future in Sarawak.”

The data centre project will provide infrastructure that supports both local enterprises and international clients, further establishing Sarawak as a hub for digital innovation.

SEB group chief executive officer Datuk Sharbini Suhaili said the state-owned utility firm’s collaboration with Netrunner demonstrates its dedication to meeting the growing digital infrastructure needs of the region with reliable energy.

“As we work towards becoming a digital utility, collaborations like these align with our vision of building a stable energy future while supporting Sarawak’s aspiration of becoming a leader in the digital economy,” he added.

AIZO executive chairman Datuk Abang Abdillah Izzarim said the MOU with Netrunner represents AIZO’S maiden venture into the data centre industry.

“This strategic move marks a key step in the company’s diversification into digital infrastructure, a rapidly growing sector that represents significant growth opportunities.

“By entering the data centre market, AIZO is positioning itself to meet the rising demand for secure and efficient data management solutions while reinforcing its commitment to innovation and sustainable development in Sarawak.

“This MOU is a significant milestone for all parties involved and we are excited to contribute to Sarawak’s advancement into the digital age.

“Working alongside the Sarawak government and Netrunner, we believe the data centre park will become a cornerstone for the region’s digital infrastructure,” added Abang Abdillah, also the son of the Sarawak Premier.

When opening the conference, Abang Johari said Sarawak had launched two major initiatives to advance its digital agenda – the Sarawak Technology and Innovation Sandbox (STIS) and Sarawak Digital Residency Programme (SDRP).

He said the STIS, which is developed in partnership with the National Technology and Innovation Sandbox, Sarawak Digital Economy Corp, Startup Borneo and Tegas, aims to facilitate the state transition to a knowledge-based economy.

The STIS is expected to drive innovation in agritech, smart cities and cultural industries, positioning Sarawak as a food security hub and supporting the Sarawak Post Covid-19 Development Strategy 2030.

The SDRP, said Abang Johari, is a bold initiative aimed at attracting professionals, remote workers, foreign entrepreneurs and investors to Sarawak.

“With flexible terms, we are positioning Sarawak as an inclusive digital hub that welcomes global talent. Our first initiative under this programme – De Rantau Sarawak – will open for applications early next year in collaboration with the Malaysian Digital Economy Corp, further solidifying Malaysia’s status as a top destination for digital nomads in South-east Asia,” he added.

Source: The Star

SEB to power Sarawak Data Centre Park

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Malaysia’s semiconductor industry is set to solidify further with various commendable initiatives outlined under Budget 2025, including the Supply Chain Resilience Initiative and the New Investment Incentive Framework.

Malaysia Semiconductor Industry Association (MSIA) director Andrew Chan said the Budget, with a stronger focus on developing talent in the electrical and electronics (E&E) sector, has further solidified the country’s role in the global semiconductor supply chain.

“These efforts aim to bolster the country’s competitiveness in the semiconductor sector and the measures outlined in the budget lay a solid foundation for long-term growth and resilience within the industry,” he told Bernama.

Budget 2025 was unveiled by Prime Minister Datuk Seri Anwar Ibrahim, who is also finance minister, on Friday, with an allocation of RM421 billion, comprising an operating expenditure of RM335 billion and a development expenditure of RM86 billion.

The expansionary budget also involved the introduction of the New Investment Incentive Framework, including a strategic investment fund worth RM1 billion aimed at enhancing the capacity of local talent and encouraging high value activities to be carried out in the country. This framework, which focuses on high value activities as opposed to existing incentives based on specific products, is expected to be implemented in the third quarter of next year.

To enhance the diversification of the E&E sector through high-value-added activities, such as integrated circuit (IC) design services and advanced materials, the government has agreed to expand the tax incentives to boost exports to include IC design activities.

In efforts to reduce the economic gap between regions, special income tax incentives will be offered for investments in 21 economic sectors in Perlis, Kedah, Kelantan, Terengganu, Sabah and Sarawak, subject to the success of economic spillovers.

Meanwhile, commenting on the government’s plan to implement a multi-tiered levy mechanism (MTLM) early next year to reduce dependence on foreign workers, Chan said it is a proactive step by the government.

He reckons that the levy proceeds will be reinvested in the industry for automation and mechanisation, which aligns well with the broader push for digital transformation and increased efficiency. “We look forward to hearing more details of the MTLM,” he added.

Source: The Sun

Budget 2025 set to strengthen Malaysian semiconductor industry: Association

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