The Selangor Information Technology and Digital Economy Corp (Sidec) had inked a memorandum of understanding (MOU) with Cyberview Sdn Bhd for the advance investment, ecosystem and industry development of the Integrated Circuit (IC) Design Park Phase 2 in Cyberjaya.

This marks Selangor state’s second IC design park, following the launch of its first park in Puchong in August 2024.

Explaining further, Selangor Mentri Besar Datuk Seri Amirudin Shari revealed that the IC Design Park 2 in Cyberjaya is expected to be launched in the first quarter of 2025.

“To further strengthen our position in the semiconductor industry, I am delighted to share that we are planning the development of IC Design Park 2 in Cyberjaya.

This will expand our capabilities and reinforce Malaysia’s role as a key player in this critical global industry,” he said at the opening ceremony of the Selangor Smart City and Digital Economy Convention (SDEC) 2024.

Having seen the success of its first semiconductor IC design park, Amirudin said the move had increased Malaysia’s place on the global stage in the semiconductor space.

He proceeded to call out to international players to be a part of Malaysia’s semiconductor journey and to ensure Selangor remains at the cutting edge of the industry.

“As we move forward, our vision is clear. We want Selangor to be a global leader in digital transformation.

This means shaping a resilient and adaptable ecosystem, investing in the right technologies and empowering our entrepreneurs,” he said.

He stated that the aspects are equally critical to ensure that artificial intelligence (AI) does not end up as a buzzword and instead bring a meaningful change to people’s lives.

He added that cybersecurity awareness is also important to prevent Malaysians from being exposed to threats by those aiming to take advantage.

“We can build a future where Selangor continues to lead in the digital economy, but we must build an ecosystem which is secure, where our businesses thrive and where our people have the security and confidence to not only be users, but shepherds to this field,” he added.

During a special address, Digital Deputy Minister Datuk Wilson Ugak Anak Kumbong said collective efforts by all stakeholders – including the government, businesses, academia and the rakyat, are essential to unlock the full potential of AI, semiconductors and the digital economy.

“As we look forward, it is crucial to remember that digital transformation is a collective effort.

“Together, we can ensure that Malaysia is not just a participant in the global digital landscape, but a leader,” he added.

SDEC 2024, a part of the Selangor International Business Summit, featured sessions on Malaysia’s IC design industry and the growing convergence of AI and semiconductors.

Additionally, a separate strategic partnership was formalised during the event, involving NCT Group with Sidec to foster industrial development and promote community building at the NCT Smart Industrial Park in Sepang.

Source: The Star

Selangor strengthens its position in chip sector

Malaysia is well-positioned to be a hub of innovation and sustainable development in Southeast Asia in the long-term, supported by recently announced German Technology Park in Malacca.

MIDF Research said there are over 700 German companies in Malaysia to-date, which have created over 70,000 jobs for locals.

The firm said that the nation stood as a location of interest, given its strategic location and developed infrastructure.

“Given that German companies adhere strictly to sustainability practices, we believe this project is apt and timely to gain better investments to support the development of the technology park,” it said in a research note today.

German Technology Park is designed to attract leading German technology and manufacturing companies, and aims to be a hub of innovation and sustainable development in the region.

Cypark Resources Bhd, Melaka Corporation (MCorp) and Jakel Capital have signed a memorandum of agreement to jointly explore and develop energy solutions for the industrial park, with the shared goal to manage the planning, generation, and distribution of at least 1,000 megawatt (MW) in the next five to seven years.

The consortium will be structured with Jakel Capital holding a 51 per cent stake, Cypark Resources at 29 per cent and MCorp at 20 per cent, with an estimated RM4 billion capital expenditure.

The project includes the integration of renewable energy sources and modern energy management systems.

This includes battery storage solutions to ensure firm and cost-efficient power supply to the industrial park in consultation with Tenaga Nasional Bhd (TNB) and Suruhanjaya Tenaga via the corporate renewable energy supply scheme (CRESS).

While optimistic over the project, MIDF Research also identified certain risks which includes high upfront cost of infrastructure set up and regulatory changes.

The firm said regulatory risks are the most significant, considering that German companies had to adhere to several regulations when operating abroad.

This includes Supply Chain Due Diligence Act (LkSG) which requires medium-sized German companies to ensure their supply chain comply with human rights and environmental standards.

Meanwhile, the Foreign Trade and Payments Act (AWG) regulates foreign investments in strategic sectors including technology manufacturing and General Data Protection Regulation (GDPR) ensures data privacy and security in both companies and the nation they operate in.

“Nevertheless, regulatory risks could be mitigated through thorough due diligence in tandem with engaging legal experts to ensure the proper navigation between the policies in Germany and Malaysia.”

“Additionally, implementing a robust sustainability and human rights practices could meet LkSG requirements, through job creation and integration of greener solutions to energy generation,” it added.

Source: NST

The German Technology Park in Malacca can help make Malaysia a hub for innovation and sustainability

A total of 6,617 battery-electric vehicles (BEVs) were sold in the first half of 2024 (1H24), up 112 per cent year-on-year (YoY), said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

A total of 3,117 BEVs were sold during the same period in 2023.

Tengku Zafrul noted that the progress brings the country closer to its goal of having electric vehicles make up 20 per cent of total industry volume (TIV) by 2030.

“This remarkable growth not only signals our consumers’ growing interest, but also demonstrates Malaysians’ general buy-in to contribute to the national and global environmental agendas,” he said at the launch of Leapmotor, the latest addition to Stellantis’ portfolio in Malaysia.

He added that as of Sept 30 this year, over 171 charging stations had been installed nationwide, of which 813 were direct current (DC) fast chargers.

“We hope to reach our goal of 10,000 charging stations by end-2025,” Tengku Zafrul said.

The minister highlighted that the automotive industry continues to be a crucial driver of Malaysia’s economic growth, contributing a significant 4.0-5.0 per cent to the country’s gross domestic product (GDP) each year and providing employment for more than 700,000 people.

In comparison to 2023, the sector recorded total imports valued at RM62.14 billion, with RM37.15 billion coming from the import of automotive parts and components.

“On the export side, the sector recorded a total value of RM18.01 billion, with RM13.26 billion from automotive parts exports.

“The significant disparity between imports and exports has led to a trade deficit for the sector,” he said.

Stellantis Malaysia today launched its new electric vehicle brand, Leapmotor, along with its first global offering, the Leapmotor C10 electric SUV.

The company also revealed plans for Malaysia, which include the local assembly of Stellantis brand multi-energy vehicles at its Gurun facility in Kedah, aimed at serving the Asean market.

Additionally, Stellantis said it intends to enhance the local supply chain, support talent development, and create new job opportunities.

Tengku Zafrul said this decision will significantly boost the automotive industry, facilitate advanced technology transfer and contribute to improving exports.

Source: NST

Malaysia inches closer to EV goal

The development of a special industrial cluster in the manufacturing sector in the central region needs to be prioritised as a strategic initiative of the Madani government to strengthen the country’s position as an investment hub, said Prime Minister Datuk Seri Anwar Ibrahim.

The central region includes the Federal Territory of Kuala Lumpur, Selangor, Negeri Sembilan and Melaka.

Anwar, who is also finance minister, said this matter has been agreed upon in principle and that the importance of close cooperation between the federal government and the state governments in jointly promoting the central region should be emphasised.

“This is important in the effort to attract more high-quality investments to the focus areas in each state, speeding up the implementation of projects while improving the ‘ease of doing business’ by reducing bureaucracy,” said the prime minister through a post on X Wednesday.

Anwar chaired the National Investment Council (NIC) meeting number seven for 2024 on Wednesday.

He said the NIC on Wednesday had agreed that the Malaysia Productivity Corporation should continue the implementation of the regulation testing initiative to increase the productivity and efficiency of the delivery of regulations at all levels of government including local authorities.

“This initiative needs to be continued and also expanded based on the excellence shown especially in saving time and cost,” he added.

Anwar said this effort will also increase investments which in turn will increase revenue for local authorities, especially in matters of construction permits and land management through the Industrial Green Lane approach as has been implemented in Kulai, Johor and Kulim, Kedah.

Source: Bernama

PM wants focus on development of manufacturing industrial cluster in KL, Selangor, Negeri Sembilan and Melaka

A total of 6,617 battery-powered electric vehicles (BEVs) were sold in the first half of 2024 (1H2024) marking a significant 112 per cent year-on-year surge in the electric vehicle (EV) market, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

He said 3,117 units of BEVs were sold in 1H2023.

“So I think we should be on track to meet our target of having 20 per cent of our total industry volume (TIV) comprising EVs by 2030.

“This remarkable growth not only signals our consumers’ growing interest, but also demonstrates Malaysians’ general buy-in to contribute to the national and global environmental agendas,” he told reporters after the launch of Stellantis x Leapmotor C10 SUV here today.

Regarding charging stations, Tengku Zafrul said that as of Sept 30, 2024, more than 3,171 charging stations have been installed nationwide, including 813 DC fast chargers.

“We hope to reach our goal of 10,000 charging stations by end-2025,” he added.

He said the automotive industry remains a vital pillar of Malaysia’s economic growth, contributing an impressive four to five per cent to national gross domestic product (GDP) annually, and supporting over 700,000 jobs.

In 2023, Malaysia’s automotive sector recorded a total import value of RM62.14 billion, with RM37.15 billion attributed to the import of automotive parts and components.

On the export side, the sector recorded a total value of RM18.01 billion, with RM13.26 billion from automotive parts exports.

“The significant disparity between imports and exports has led to a trade deficit for the sector,” he noted.

He said that as the world’s fourth-largest automaker and a leading mobility solutions provider, Stellantis’ choice of Malaysia as the first market in South-east Asia for Leapmotor reflects the confidence that global players have in the country’s growing role as a hub for new energy vehicles.

“I was thrilled when Stellantis announced its decision to establish Malaysia as a regional manufacturing hub as part of its ‘Built in Asean for Asean’ strategy, alongside a regional headquarters for Asia Pacific. I am optimistic that this decision will significantly boost our automotive industry, facilitate advanced technology transfer and enhance our exports,” he said.

Stellantis today unveiled its new all-electric SUV, the C10, marking its first major entry into the South-east Asian market with its launch in Malaysia.

The C10 is part of Leapmotor International, a 51:49 joint venture between Stellantis and Leapmotor.

The all-new electric Leapmotor C10 is offered at a limited-time introductory price of RM149,000 on the road, excluding insurance, for bookings made until Nov 30, 2024. After this period, the price will be set at RM159,000.

It is available in four exterior colours — glazed green, pearly white, canopy grey, or Tundra grey — and two interior options: criollo brown (exclusive to glazed green) and midnight aurora.

Source: Bernama

BEV sales surge 112pc in Malaysia, paving the way for 2030 targets, says Tengku Zafrul

Malaysian innovators and manufacturers should seize the opportunity to tap into the immense potential of the global medical devices industry, which is projected to reach nearly US$800 billion by 2030, says Science, Technology and Innovation (MOSTI) Minister Chang Lih Kang.

Chang noted that Malaysia had many high-quality products and innovators in the medical devices sector, with the government continuously encouraging and supporting industry players in research and development (R&D) and commercialisation efforts.

“The market is vast, and we have plenty of room for success. To support R&D, of course, not limited to the medical devices industry, MOSTI offers various funding facilities, grants, matching grants, and equity where we invest in relevant startups,” he said.

Chang said this to reporters after officiating the soft launch of INNOMed: Innovation Pitching Powered by PERANTIM, a key event in the International Medical Device Exhibition & Conference (IMDEC) 2024.

Also present were Medical Device Authority (MDA) chief executive officer Dr P. Muralitharan, Malaysia Medical Devices Manufacturers Association (PERANTIM) president Johari Abu Kasim, and organising chairman of INNOMed, Dr Hyzan Mohd Yusof.

Earlier in his speech, Chang said that under Malaysia’s New Industrial Master Plan (NIMP) 2030, the government aimed to foster synergies between the manufacturing and engineering sectors and the medical devices sector. This includes creating advanced inspection tools, solutions for imaging and endoscopy, implantable devices, and minimally invasive surgical tools.

Meanwhile, Muralitharan told Bernama that, according to figures from the Department of Statistics Malaysia (DOSM), Malaysia’s total trade in medical devices, valued at RM25.61 billion from January to July this year, increased by 23.5 per cent compared to the same period in 2023 (RM20.74 billion).

He added that the export of medical devices was valued at RM20.15 billion, an increase of 25.7 per cent compared to RM16.02 billion in 2023.

In his speech, Dr Hyzan said that medical device innovation presented an opportunity to improve healthcare while boosting the economy, with the industry projected to reach nearly US$2 billion by 2025, making it one of the fastest-growing sectors.

“By focusing on innovation, we can create high-skilled jobs, reduce our dependence on imported technologies, and position Malaysia as a global leader. Last year, we spent US$5 billion on medical devices, with 95 per cent being imports. Our goal is to reduce this to 50 per cent within five years,” he said.

He also emphasised that close collaboration among universities, innovators, manufacturers, clinicians, and government agencies was key to ensuring that ideas and research transitioned smoothly from laboratories to clinical applications and into the hands of healthcare providers.

INNOMed, themed “Unleashing the Power of Medical Technology: Shaping the Future of Healthcare,“ is organised by the MDA and will take place from Dec 10 to 12 at the Kuala Lumpur Convention Centre (KLCC).

Source: Bernama

Malaysia should seize opportunity in global medical devices market – Chang

KEDAH-based electronics manufacturing services (EMS) provider Aurelius Technologies Bhd is riding a wave of robust orders and gearing up for a potentially stronger financial performance this year, driven by its strategic focus on wireless communication technology and operational efficiency.

For its fiscal first half ended June 30, 2024 (1HFY2024), the company reported a profit of RM31.76 million on revenue of RM277.96 million, placing itself in a strong position to improve on last year’s results.

“Achieving good financial results is not just about the numbers. We also place a lot of emphasis on our strategic direction and operational effectiveness,” ATech executive director and CEO Loh Hock Chiang tells The Edge in an interview at the company’s headquarters in Kulim Hi-Tech Park.

“This year’s performance clearly reflects the successful execution of the initial stages of our core strategies. We are not just aiming to meet expectations but also striving to consistently exceed them and set new benchmarks.”

After a change in its financial year end from Jan 31 to Dec 31, ATech only had 11 months in its new financial year ended Dec 31, 2023 (FY2023). Over that period, the company made a profit of RM38.24 million on turnover of RM385.55 million.

According to Loh, ATech firmly believes in the potential of wireless communication technology and, despite the scepticism in some quarters, the company remains confident that wireless solutions will eventually become central to future connectivity needs.

“In today’s world, connectivity is essential for personal, business and security purposes. As communication complexity increases, so too the need for advanced wireless solutions. Our focus on wireless technology positions us well to meet this growing demand for connectivity solutions across industries,” Loh explains.

ATech is an investment holding company whose subsidiary BCM Electronics Corp Sdn Bhd is principally an EMS firm focused on industrial electronics products. In 2019, ATech expanded into the manufacture of semiconductor components in the form of multi-component integrated circuit (IC) for Internet of Things (IoT) applications.

It is one of the first companies in Malaysia to manufacture fifth generation (5G) communication modules and related applications for global clients.

ATech’s customer portfolio currently boasts more than 10 clients, including a global communication solutions giant. ATech  is one of three main contract manufacturers in the world producing top-tier communication devices used in critical public safety systems globally.

Loh, 59, is a chartered accountant with Chartered Accountants Australia and New Zealand and has held various positions, including chief financial officer (CFO) and deputy CEO of Comintel Corp Bhd, where his last designation was executive director, before he left in January 2018.

He assumed his current position of executive director of BCM in 2018 and was appointed group CFO of ATech in March 2021. Following the passing of ATech co-founder and former CEO Lee Chong Yeow in January 2022 — a month after the company was listed on Bursa Malaysia in December 2021 — Loh was made interim CEO before assuming the role of group CEO about seven months later in August.

As at April 9 this year, Loh owned a direct stake of 7.75% in ATech. Together with the late Lee, he had held an indirect stake of 39.4% in the company through Main Stream Holdings Sdn Bhd (20.04%) and Main Stream Ltd (19.36%).

Lee’s daughter Jamie Lee Hwe Ping currently sits on the board of ATech as non-executive director. Hwe Ping’s younger brother Jonathan Lee Ming Chian, who serves as her alternate director, is the administrator of their father’s estate. They each have a direct stake of 1.94% in the company.

ATech executive director and CFO Tan Chong Hin is a substantial shareholder of the company with 6.17% equity interest via Pixel Advisers Pte Ltd.

The company’s latest annual report shows that its top 30 largest shareholders include AIA Bhd and AIA Public Takaful Bhd, three Kenanga funds, Etiqa Life Insurance Bhd and Lembaga Tabung Angkatan Tentera (LTAT).

Interestingly in June, the Employees Provident Fund (EPF) and Abrdn plc emerged as substantial shareholders of ATech, with 7.87% and 7.06% equity interest respectively.

This came in the same month that ATech completed a private placement that raised about RM132.01 million at an issue price of RM3.35 per share. Some RM55 million of the gross proceeds was earmarked for the construction of the company’s new integrated manufacturing plant.

Year to date, the share price of Main Market-listed ATech had gained 14% to close at RM2.94 last Thursday, which translated into a market capitalisation of RM1.27 billion. The counter is trading at a historical price-earnings ratio (PER) of 25 times.

More opportunities coming from automotive sector

Looking ahead, ATech is set to expand its offerings in mobility and communication products, many of which are driven by IoT solutions, especially in the motor vehicle industry.

Loh says ATech’s IoT portfolio includes vehicle telematics, electric vehicle (EV) management systems, energy management and smart asset monitoring devices. A key application is the use of vehicle telematics by automotive insurers in the US and Europe to monitor customer behaviour, he notes.

With the global rollout of 5G infrastructure, demand for 5G-related IoT solutions is expected to surge, creating more opportunities for ATech.

Loh points out that the company’s new automotive segment is gaining traction, particularly with communication modules and monitoring devices for insulation and tyre pressure. “Going forward, we believe more 5G and IoT products will be infused into automotive applications,” he says.

An important aspect of ATech’s growth strategy is its ongoing expansion in Kulim, where it currently operates three plants. The company is in the midst of building a fourth facility, dubbed P5, which is expected to be completed by the end of the year.

“We plan to double the built-up space of our premises to 520,000 sq ft from 260,000 sq ft currently via our expansion project on our 301,874 sq ft freehold industrial land with an investment of RM13.6 million,” says Loh.

P5 will be fitted with a clean room facility and is expected to be fully utilised within two to three years. Loh expects the new facility to double ATech’s production and warehousing capacity as well as its profitability. “Theoretically, our production and warehousing capacity should double by then, as should our profitability.”

Wireless technology will spearhead the utilisation of P5, with increasing focus on 5G products for automotive applications such as autonomous driving and in-vehicle infotainment, he reiterates.

Moreover, the global shift towards the China+1 manufacturing strategy has created significant opportunities for Malaysia as a preferred hub for multinational corporations (MNCs). “We are continuously exploring partnerships or participation in the supply chain to support the localisation efforts of these MNCs,” says Loh.

To mitigate the effects of market fluctuations, particularly due to the tech and semiconductor cycles, ATech has a diversified customer base, spanning industries such as communication, energy, automotive, financial technology and agriculture.

“Engaging with a diverse range of customers across different industries provides us with valuable insights and stability,” he says, adding that this diversification helps the company maintain a stable revenue stream and ensure that no single market trend disproportionately impacts its business.

“We like to maintain our priority to continuously build on our many years of cumulative knowledge and ability to serve different sectors with varying technology demands. Of course, there are still many more new customers from new industries, which we are actively working on to further diversify our customer portfolio.”

Although the semiconductor industry has been a magnet for high revenue opportunities, Loh points out the cyclical and capital-intensive nature of the business.

“We are often asked whether we are investing in the advanced semiconductor industry as it is more glamorous and high-end than the highly competitive EMS sector. We are attracted to the former’s high revenue but it can be cyclical and volatile and its extensive facilities and capital commitments are overwhelming,” he observes.

Instead of venturing into the semiconductor space, ATech remains focused on adding higher-margin products to its catalogue and driving operational efficiency, which the company believes provides it with a competitive edge on the global stage.

“We provide additional value to our customers by offering cost-effective solutions that are comprehensive, agile, faster and more efficient, facilitating cost-down initiatives for customers,” says Loh.

ATech’s net profit margin improved from 6% in the financial year ended Jan 31, 2022, to 7.7% in the financial year ended Jan 31, 2023. It improved further to 9.9% in the financial year ended Dec 31, 2023, and to 11.4% in 1HFY2024.

By comparison, the net margins of V.S. Industry Bhd and SKP Resources Bhd were 4% and 5% respectively in their latest full financial year. Meanwhile, the net margins of Cape EMS Bhd and Betamek Bhd stood at 8% and 9% respectively. 

Source: The Edge Malaysia

Aurelius Technologies stays wired to wireless solutions for growth