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The government will implement measures to bolster airport infrastructure supporting the country’s semiconductor exports in order to achieve the aspirations of the National Semiconductor Strategy.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said his ministry (MITI) will discuss the issue with the Ministry of Transport (MOT) soon.

He said that 90 per cent of the country’s exports are supported by air transportation.

“Exports to foreign countries via Singapore are quite large as they have an efficient infrastructure, especially for this high-tech sector.

“In Penang, there was an airline willing to use a 777 cargo plane, but unfortunately, the plane could not land there. There are also suggestions for us to expand our airport in Senai, Johor,” he said during the question and answer session at the Dewan Rakyat today.

Similarly, he said the government would also harness land transportation, especially the East Coast Rail Link project, which will be a catalyst for economic and industrial development in the states of the East Coast region.

“The government, via the Malaysian Investment Development Authority, always takes proactive measures in an effort to attract foreign and local investments in various sectors into any state in Malaysia,” he explained.

Tengku Zafrul said that the Kelantan state government has given excellent support in ensuring that the electrical and electronic industry grows in the state, for example, through the presence of Rohm Wako Electronics (Malaysia) Sdn Bhd with an investment value of over RM1.7 billion.

The investment has created 2,000 job opportunities for the people, especially in the engineering, science and technical fields, he said.

He added that the government will always support and be open to working with the state governments in their respective development plans to grab the opportunities to attract quality investments, such as in the field of integrated circuit design.

Source: Bernama

MITI, MOT to mull bolstering airport infrastructure for semiconductor exports – Tengku Zafrul

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The investment commitment for the flagship National Energy Transition Roadmap (NETR) projects and initiatives have reached RM60.7 billion, exceeding the initial RM25 billion target, said Deputy Economy Minister Datuk Hanifah Hajar Taib.

The commitment is based on the implementation level of 10 projects and flagship initiatives on six energy transition drivers which have been introduced.

“With the level of implementation of the flagship projects and initiatives, the government also expects 84,544 employment opportunities compared to the initial target of 23,000.

“There is also a reduction of greenhouse gas emissions of 24,264 gigagrams (Gg) of carbon dioxide equivalent every year compared to the initial target of 10,000 Gg of carbon dioxide equivalent every year,” she said in the Dewan Rakyat today.

Hanifah was responding to Rompin MP Datuk Abdul Khalib Abdullah, who wanted to know about the status of the NETR Phase One in meeting the net zero carbon emissions target, including the amount of investment identified and the number of job opportunities generated to date.

She added that the 10 flagship projects and initiatives based on the six energy transition drivers involve energy efficiency (one flagship project); renewable energy (three flagship projects); hydrogen (two flagship projects); bioenergy (a flagship project); green mobility (two flagship projects) and carbon capture, utilisation and storage (one flagship project).

“Each of these projects and initiatives has a different level of maturity, and most are still in the pre-implementation stage and on schedule,” Hanifah said.

Source: Bernama

NETR projects investment, initiatives at over RM60 bln — Deputy minister

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Malaysia has enormous potential to emerge as an “economic giant” in the region, said Prime Minister Datuk Seri Anwar Ibrahim.

Speaking during the luncheon of the 47th annual general meeting of the American Malaysian Chamber of Commerce (Amcham), Anwar stressed that Malaysia must remain a trading nation and be open to investments.

“We made it very clear that the government will support investments from overseas, particularly from the United States,” he said in reference to the domestic issue surrounding BlackRock.

Anwar, who is also the finance minister, revealed that the government is addressing the issue of preparedness to undertake the necessary measures to ensure Malaysia remains competitive and continues to grow. “We have the workforce, infrastructure and the semiconductor ecosystem, and now we are pushing ahead on the fast track the issue of energy transition, both in Peninsular Malaysia and Sabah and Sarawak,“ he said.

Anwar noted that Penang is a fine example of how investments from foreign investors have immensely benefitted the country’s economy. The Prime Minister said the advantages can be seen through the transfer of technology, training and the establishment of centres of excellence.

“From the early days…Intel Corporation for example, used Penang as their base, and Penang has now emerged as one of the major centres for semiconductors in the country, from the back end to the front end.

“Therefore, (I am) here to personally acknowledge that and thank you for your confidence and (we will) give all the necessary support and help to facilitate (and) we will accelerate (the investment process),” he said.

Anwar said although there are growing investments from Europe, particularly Germany and Netherlands, and also China, cumulatively the United States is the largest investor in Malaysia.

Source: Bernama

Malaysia has potential to become ‘economic giant’ in region – PM Anwar

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Economy Minister Rafizi Ramli said governments must adopt a holistic approach to policy and infrastructure to bolster renewable energy (RE) supply and ensure sustainable development.

He said that Malaysia plans to significantly ramp up its RE capacity over the next two to three years, paving the way for a more integrated regional approach within the Asean community.

“We need to establish comprehensive policies and robust infrastructure to support RE expansion.

“Our goal is to significantly increase our RE supply in the next few years, moving towards a cohesive regional strategy,” Rafizi said.

The minister said this during a panel session at the Annual Meeting of the New Champions, themed “The Opportunity of Managing Energy Demand”, organised by the World Economic Forum in China Tuesday.

He also said as Malaysia prepares to take over the chairmanship of Asean, it is set to champion a flagship project aimed at advancing integrated green growth across the region.

The initiative seeks to bridge the gap between RE capacities in different economies, with excess capacity in the north and higher energy demand in the south.

“Malaysia is committed to leading Asean towards integrated green growth. Our goal is to create a cohesive regional approach that facilitates the transition to sustainable energy, connecting through the peninsula to Singapore and Indonesia,” Rafizi said.

Addressing the complexities of energy demand, the minister said the critical importance of ensuring that the entire energy system is sustainable, including grid, supply, policies and incentives.

He noted that governments must be willing to invest in infrastructure and enact policy and regulatory changes, particularly concerning pricing.

“A successful public-private sector engagement (PPE) model involves the government doing everything necessary to build infrastructure and adjust policies and regulations.

“When it comes to policy and incentives, they must create a cost structure where alternatives are viable and sustainable,” Rafizi said.

Source: Bernama

Malaysia to lead push for integrated green growth across Asean — Rafizi

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The Digital Ministry sees the latest US$2.2 billion investment by Microsoft as an aspiration and a benchmark for other industries in driving national innovation.

This commitment encourages the development of digital talent and drives Malaysia towards becoming a global digital hub, the ministry said in response to Dr Richard Rapu @ Aman Anak Begri (GPS-Betong).

Rapu had asked the Digital Ministry to explain how it views Microsoft’s latest investment vis-à-vis Malaysia’s digital potential.

The ministry explained that the investment will enable Microsoft to develop cloud infrastructure and artificial intelligence (AI) in the country.

Microsoft also plans to strengthen collaboration with the government to establish a national AI centre, improve the country’s cyber security capabilities, train more than 300,000 workers in the digital sector by 2025 and support Malaysia’s target to produce a million digital talents by 2030.

The multinational computer technology company also aims to create more high-skilled job opportunities in areas such as AI, cloud computing and cyber security and support the growth of Malaysia’s software ecosystem.

The investment will also help more than 200 local companies integrate AI into their operations by 2025 to improve efficiency and innovation.

Source: Bernama

Microsoft investment sets benchmark for industry players to drive national innovation

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Malaysia has the potential to greatly improve productivity through the adoption of artificial intelligence (AI), surpassing the benefits of digitalisation, said Investment, Trade and Industry (MITI) Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said AI’s potential to simplify complex and mundane tasks boosts productivity and opens doors to creativity and strategic thinking.

Alongside AI is the move to enhance research and development (R&D) to increase economic complexity by producing and delivering competitive products and services, enabling companies and economies to participate in higher-value global chains, he said.

“In R&D, process innovation is as important as product innovation and critical to boosting productivity. Our competitors are fast catching up to us, we cannot afford to be unproductive,” he said in his speech at the launch of the Productivity Report 2024 by the Malaysia Productivity Corporation (MPC) here today.

The text of his speech was read out by MITI secretary-general Datuk Hairil Yahri Yaacob.

Tengku Zafrul highlighted that technology, regulation, and talent are critical drivers of productivity which is the essence of the Productivity Report 2024.

He noted that the report recommends governments at all levels embrace good regulatory practice (GRP) and have the ease of doing business mindset, minimising shocks and unpredictability in regulatory compliance.

“Businesses must embrace modern management and technology to reduce fixed and marginal costs.

“At the same time, they must value and reward employees who continuously upskill or reskill, ensuring their competencies stay relevant in our rapidly evolving landscape,” said the minister.

Meanwhile, Tengku Zafrul stressed that a comprehensive, whole-of-government approach is essential to address the multifaceted factors influencing competitiveness.

These include talent management, public service delivery, digitalisation improvements, and the management of both the domestic economy and international trade, he said.

Themed “Driving Malaysia’s Productivity”, the report noted that the country’s 2023 labour productivity per employee was positive, moderated to 0.9 per cent compared with 2022’s jump of 5.4 per cent.

It said the country’s productivity level increased to RM96,692 per employee in 2023, rising slightly from RM95,858 in 2022.

Source: Bernama

Embrace AI to achieve significant productivity improvements – Tengku Zafrul

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Malaysia’s Solarvest, a company specialising in clean energy solutions, has partnered with GreenRock Energy, a Taiwanese firm focused on renewable energy, to expedite the advancement of green energy solutions in Taiwan and Malaysia.

The collaboration makes GreenRock Energy the first Taiwanese company to participate in Malaysian government green energy projects.

GreenRock Energy is entering the Malaysian renewable energy market with a goal of achieving 1GW (gigawatt) of renewable energy projects within the next five years.

This regional partnership enables both companies to access each other’s established markets and expertise to navigate the complexities in the region.

The Malaysian energy market is actively transforming to achieve green energy development goals. Earlier this year, the government launched the LSS5 large-scale solar programme with a total of 2GW renewable energy capacity, marking the largest solar project in history.

This initiative complements the National Energy Transformation Policy , which encompasses a variety of green energy developments such as energy efficiency, renewable energy zones, and green hydrogen, all aimed at reducing carbon emissions and achieving a low-carbon nation by 2040.

To further support the nation’s ambition of becoming a regional renewable energy hub, the government also plans to adopt a Third Party Access mechanism and establish a renewable energy trading centre.

These initiatives will enable the export of cross-border renewable energy and accelerate the energy transition in Southeast Asia.

Despite the complexity and intense competition of local green energy policies, GreenRock is confident that its collaboration with Solarvest will overcome these challenges through its combined expertise and technological advantages.

As of March 2024, Solarvest has achieved a 1.2GW project track record regionally, with 440MW of projects under construction and 348MW of solar assets, representing its leadership position and extensive experience in the region.

Solarvest provides comprehensive services, including solar development, design, applications, construction, operation, maintenance, and asset management. Besides Malaysia, Solarvest

has developed renewable energy businesses in six other Asian markets including Taiwan, Singapore, the Philippines, Vietnam, Thailand and Indonesia.

In Taiwan specifically, Solarvest is collaborating with GreenRock Energy on large-scale agrivoltaic and aquavoltaic projects, targeting a total of 500MW projects.

Source: The Sun

Solarvest team up with Taiwan’s GreenRock Energy to advance green energy solutions

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Axrail, an Amazon Web Services (AWS) advanced tier services partner in Malaysia, has opened Southeast Asia’s first of its kind Generative AI (Gen AI) lab to support the growing demand for AI solutions and the nation’s digital economy aspirations.

The Gen AI lab pools the expertise of AWS, Phison and Axrail in one collaborative hub.

Axrail said it showcases cutting-edge cloud solutions powered by AWS, including those built on Amazon Bedrock, alongside on-premise innovation with Phison’s innovative aiDAPTIV+ technology.

Located within Axrail’s 3,000 square foot centre of excellence (CoE) for AI solutions, the lab is designed to accelerate businesses’ AI readiness by helping them to build capabilities to extract value from data and increase operational efficiency across various functions.

“It aims to cater the evolving needs of businesses seeking a fast-tracked and scalable path to AI adoption, and positions Axrail at the forefront of delivering comprehensive, end-to-end generative AI solutions for both cloud and on-premise environments,” it said.

Axrail founder and chief executive officer Kelvin Kok said the innovative sandbox will empower businesses to reimagine operations through AI, delivering measurable outcomes and future-proofing their approach.

“Our goal is to accelerate AI adoption, especially among Malaysian small and medium enterprises, leveraging the upcoming AWS Region in Malaysia for data residency, low latency and robust cloud services across Southeast Asia,” he said in a statement.

AWS Malaysia country manager Pete Murray highlighted that the lab offers business solutions that boost productivity and efficiency for industries like retail, manufacturing, healthcare and entertainment for SME customers of all sizes.

“Partners like Axrail can help customers make the most of the opportunity advanced technologies like generative AI can offer business owners,” he added.

Axrail, a subsidiary of QL Resources Bhd, has a track record of helping over 50 businesses across Malaysia and Singapore.

Source: NST

QL Resources’s unit Axrail unveils Southeast Asia’s first generative AI lab in Malaysia

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NexV Manufacturing Sdn Bhd (NMSB) has signed two major memorandums with automotive stakeholders to manufacture and assemble electric vehicles locally.

This is a significant milestone since the company initiated its groundbreaking ceremony for the new energy vehicles (NEV) manufacturing plant in Chembong, Negeri Sembilan in January 2024.

NMSB chairman Datuk SM Azli SM Nasimuddin Kamal said the first is a memorandum of agreement (MoA) between NMSB and five Tier Zero (T0) vendors.

He said T0 vendors operate in a “factory within factory” concept whereby vendors responsible for a particular component (or system) set up their operations, manpower and management system, all within the larger ecosystem of the full manufacturing process flow to assemble each component to complete a vehicle.

“This novel concept enables a more efficient management of assembly processes and material flows,” he said.

The concept enables a company to procure materials and components in a just-in-time (JIT) management system with a minimal inventory rate for critical materials and components, he said at the signing ceremony between NMSB and local automotive stakeholders to develop a new manufacturing and assembly ecosystem.

The five T0 vendors are PHN Industry Sdn Bhd, Hicom Teck See Manufacturing Malaysia Sdn Bhd, Noble Star Parts Sdn Bhd, Evan Karl Holdings Sdn Bhd, and KNR Biz Solution Sdn Bhd.

“More T0 vendors will be appointed once we complete the second and third construction phases,” SM Azli said.

He said the T0 vendors will enhance the capability and technology of existing vendors.

“For instance, one vendor may have expertise in one component. They can enhance their expertise for the entire component system in the T0 vendor system.

“Hence, our success in the NEV factory is deeply intertwined with our collaboration with T0 vendors as they provide critical components and technologies that are the backbone of our NEV products,” he said.

NMSB also signed agreements with two distributors Central Auto Distributors Bhd, a subsidiary of the Association of Malay Importers and Traders of Motor Vehicles Malaysia or PEKEMA, and Wise Star
Assets Sdn Bhd, appointing NMSB as the contract assembler.

The aim of the MoU is for NMSB to assemble brands that include Dongfeng NEV and Skywell electric buses.

He added that in fostering industrial growth, NMSB is also partnering Institut Kemahiran Tinggi Negara Chembong to equip students with skills in NEV technology, ensuring a skilled workforce ready to drive the industry forward.

NMSB’s factory is located on 29.67 hectares (73.34 acres) in the Chembong Industrial Area in Rembau, Negeri Sembilan and is set to become a cornerstone of NexV’s operations.

Source: Bernama

NexV Manufacturing inks agreements on new energy vehicle manufacturing

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Malaysia needs to move upstream both vertically and horizontally to move upstream, to grow its global share of semiconductor exports and market share, according to a policy paper by the Institute of Strategic & International Studies (ISIS) Malaysia.

Upstreaming vertically refers to advancing its assemby, testing and packaging capabilities.

For example, producing advanced packaging in the Outsourced Assembly and Testing (Osat) process.

Upstreaming horizontally refers to moving towards the front-end of the value chain, which includes integrated circuit (IC) design and wafer fabrication.

The policy paper entitled “Malaysia’s semiconductor ecosystem amid geopolitical flux”, authored by Farlina Said and Angeline Tan, said a fabless integrated device manufacturer could unlock the largest share of economic value, at 57 per cent, compared to Osat, which could be limited to 6 per cent of the value in the supply chain.

“This would articulate the appeal of upstreaming horizontally into activities like IC design, as articulated in the National Industrial Master Plan. However, increasing Malaysia’s capacity in this sector would require addressing issues, such as talent and building proficiencies for IC design,” the paper said.

Furthermore, as Malaysia already has a 13 per cent foothold in testing and packaging, growing this to advanced packaging would increase its participation in the global semiconductor industry.

The paper said Malaysia’s ATP capabilities are primarily on traditional back-end packaging and would benefit from upstreaming vertically towards higher-value opportunities.

“Currently, there are some advanced packaging capabilities being developed in Malaysia, such as through ASE Technology and Intel. Further targeted incentives are required, specifically for players to tap into capital and training necessary for upstreaming on this front. The government should facilitate greater investments to help gain momentum developing advanced ATP capacities,” it said.

It added that there is interest within Malaysia’s semiconductor industry to move towards advanced packaging. However there may be concerns over the geopolitical risk arising out of the US-China tech rivalry, which would necessitate a coordinated response from the Ministry of Investment, Trade and Industry and Ministry of Foreign Affairs to mitigate the risks to the semiconductor industry.

While acknowledging that public-private partnerships are already present in grooming small medium enterprises to fit in larger manufacturing ecosystem, such as the Penang Automation Cluster in Batu Kwan Industrial Park, the paper said the cluster and park are focused on manufacturing with lesser emphasis on building research and development (R&D), innovation and business synergy.

In upstreaming horizontally, Malaysia should grow talent in integrated circuit (IC) design, which may require exploring knowledge-transfer, training and wage policies that could appeal to multi national companies (MNCs) and universities.

The policy paper said Malaysia also needs to consider investing in the capacity in existing facilities while enhancing its successes.

It said a targeted strategy that encompasses concrete milestones, talent pipelines, incentives and investments is necessary to chart the way forward.

Source: NST

‘Malaysia must move upstream vertically, horizontally to grow semiconductor exports’

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Johor’s potential as a data centre hub is largely driven by its strategic location near Singapore and the resources it offers in terms of energy, water, transportation and suitable land, according to Malaysia Digital Economy Corp (MDEC).

MDEC digital industry acceleration head Wan Murdani Wan Mohamad said when demand for more data centre capacity exceeded the neighbouring region’s resources, global companies started looking beyond – to Batam and Jakarta in Indonesia, the Philippines, Bangkok in Thailand, and Malaysia.

He said Johor offers the perfect solution due to its geographical closeness, allowing companies to leverage Singapore’s established digital ecosystem while benefiting from the ability to expand and grow in the region.

“This proximity ensures minimal latency and high-speed connectivity, which are essential for data centre operations.

“These factors collectively create a favourable environment for the establishment and growth of data centre operations, positioning Johor as a key player in the regional data centre landscape,” he told Bernama.

Wan Murdani opined that the increasing demand for artificial intelligence (AI), cloud computing and data storage presents significant opportunities for Malaysia to advance in the digital economy.

“As more businesses transition to cloudbased services and leverage AI, the need for scalable compute and data storage solutions will drive further investments in data centres, particularly in strategic locations like Johor.

“These investments will enhance Malaysia’s digital infrastructure and attract global companies seeking cost-effective and well-connected hubs,” he said.

In attracting more investments, MDEC has established close collaborations with various federal and state agencies such as Iskandar Regional Development Authority, Invest Johor, Jcorp, Plan Malaysia Johor, and Koridor Utiliti Johor to streamline and enhance the experience for both current and potential investors.

“By working closely together, MDEC and these agencies ensure that investors’ requests and requirements are promptly addressed and effectively met,” said Wan Murdani.

Establishing data centres in Johor will significantly increase demand for commercial real estate, including new facilities and the retrofitting of existing buildings.

Another key attraction for Johor potentially becoming a data centre hub is the state’s power and water infrastructure readiness to handle large-scale data centres.

According to Wan Murdani, MDEC has been providing technical advice and assistance to state governments, Tenaga Nasional Bhd (TNB) and investment promotion agencies since 2010 in preparation for these data centre investments.

“The availability of locations with ready infrastructure in Johor, such as Sedenak Technology Park (STEP), Nusajaya Tech Park (NTP) and SILC (Southern Industrial and Logistics Clusters) allowed for the rapid development of expansive data centre facilities without the prohibitive costs seen in more densely populated areas.

“Additionally, while Malaysia’s energy costs are competitive, it was TNB’S infrastructure readiness for hyperscale data centres that enabled companies to expedite their construction plans, which played a major role,” he noted.

As data centres and digital infrastructure consume significant energy, there will be an increasing emphasis on developing eco-friendly renewable energy solutions.

Investments in renewable energy sources, energy-efficient technologies and sustainable practices will ensure that the growth of the digital economy aligns with environmental goals, positioning Malaysia as a leader in both technological and sustainable development.

Wan Murdani said Malaysia has passed the Energy Efficiency and Conservation Act, which aims to ensure energy-intensive industries, including data centres, are operated to maximise energy efficiency as much as possible.

He said MDEC has facilitated engagements between the Energy Commission and the industry.

Source: The Star

Demand boom, resources make Johor fit as data centre hub

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Seeking a formal membership to join BRICS, the largest and most influential geo-political grouping, is certainly the right thing for Malaysia to do as the global landscape changes.

The group was founded by its core members of Brazil, Russia, India, China and South Africa, thus the acronym of BRICS, but its membership has expanded very fast as countries search for multi-polar platforms.

A week ago, Thailand submitted its formal request to join the grouping of emerging economies.

It was reported that Thailand hopes to become a member at BRICS’ next summit in Russia in October, which will make the country the first Asean country to do so.

But Malaysia’s entry into BRICS would even be more significant as it will hold the Asean chairmanship next year.

Given Prime Minister Datuk Seri Anwar Ibrahim’s global stature and influence, it would certainly be more significant.

The new members of BRICS have included Saudi Arabia, Iran, Ethiopia, Egypt and the United Arab Emirates with over 30 countries having expressed interest, according to a Reuters report last week.

While there are some commentators, who have expressed concern at Malaysia’s decision to join BRICS, a grouping they said is spearheaded by Russia and China.

They see these two countries which have challenged the world order headed by the United States and its Western allies.

While these worries are understandable, they are not entirely accurate.

India, for example, is regarded to be close to the West and has well-published differences with China, but it also has a reputation for pursuing a fiercely independent foreign policy.

Malaysia has repeatedly said it would not take sides in the rivalry between the US and China and has been careful in its handling of the delicate situation.

After all, Malaysia has also gained much from the US-China chip war, for example, with Penang being the largest benefactor.

The state reportedly attracted RM60.1 billion in foreign investment last year, then the total it received from 2013 to 2020 combined.

Certainly, Malaysia will continue to welcome US investments into Malaysia, and would not do anything to harm that friendship.

The report said that the broadening curbs on Chinese technology, especially for chipmaking, are a key reason for neutral Malaysia’s appeal.

At the same time, Malaysia is also mindful that China has been its largest trading partner for the last 40 years.

Malaysia, like other countries, cannot ignore the fact that China has the largest Gross Domestic Product (GDP) of the Brics country. Combined, the BRICS bloc has a GDP of slightly more than the US.

According to reports, BRICS now accounts for 37.3 per cent of the world GDP, or more than half as much as the European Union at 14.5 per cent but the growing frustrations of members have been the dominance of the US dollar.

Joining BRICS will surely broaden markets and possibly help to reduce overreliance on the US dollar for trade settlements with local currencies being used instead of the arrangements.

As Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid rightly told Bernama, “it will effectively insulate the country and the region from the changes in the US monetary policy and currency volatility, potentially improving predictability in the currency market and lowering transaction cost for exporters and importers.”

The inclusion of new members has given BRICS a boost but like Asean, it also works on a consensus basis.

Admission of a new member is based on the consensus among member states. There is no automatic admission and Malaysia still must be on the waiting list.

Selection criteria for the New Partner Country Category include good representation and close relations with BRICS members, strong standing in regional and international politics, as well as economy and not imposing any unilateral sanctions on the Brics members.

It is also not on a first-come-first-serve basis with political decisions of BRICS leaders taking precedence.

But given Malaysia’s credentials and that of Anwar, certainly, we will be given strong consideration.

*The author of this article, Datuk Seri Wong Chun Wai, the chairman of Bernama, has been a journalist for over 40 years.*

Source: Bernama

Joining BRICS right thing to do for Malaysia

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Malaysia is optimistic that its investment growth momentum will continue in 2024 despite external challenges, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Based on current trends, he anticipates the momentum to persist, supported by the double-digit increase in trade for May.

“So we are on the right track. We can see that our exports to Asean and the US rose by double digits in May. In terms of exports, 85% are from the manufacturing sector, especially the electronics and electrical sector,” he told reporters after the launch of the Centralised Sustainability Intelligence Solution at Bursa Malaysia here on Friday.

However, he said there are many challenging issues as well. “Issues such as ongoing trade tensions and geopolitical events, like the US-China trade war, pose challenges,” he added.

Malaysia recorded approved investments amounting to RM83.7 billion in the first three months of 2024, a 13% increase over the previous year’s corresponding period, creating 29,000 new jobs for Malaysians.

Tengku Zafrul said the main sectors contributing to the approved investments are: manufacturing sector 51.3% (RM43 billion), services sector 47% (RM39.3 billion) and the primary sector 1.7% (RM1.4 billion).

“In terms of breakdown, foreign investment is 56% and domestic investment is 44%,“ he added.

Austria topped the list of foreign investors by a very wide margin, with RM30.1 billion (64%) in approved investments, followed by Singapore (RM5.6 billion), the Netherlands (RM3.6 billion), China (RM3.4 billion) and the United States (RM632.8 million).

In terms of states, Kedah recorded the highest value of approved investments (RM31.3 billion), followed by Kuala Lumpur (RM21.5 billion), Selangor (RM12.4 billion), Sarawak (RM4.2 billion) and Johor (RM4.1 billion).

Target sectors stipulated by the National Investment Aspirations (NIA) contributed RM53.7 billion, accounting for 64.1% of the total approved investments across 252 projects, which are expected to create 17,056 new job opportunities.

The NIA is built on five robust pillars: enhancing economic complexity, creating high-value job opportunities, expanding domestic linkages, developing new and existing clusters, and promoting inclusivity.

Of the total approved investments, RM47.5 billion, or 56.8%, fall under the jurisdiction of Miti/Mida, covering 500 projects with 18,517 new job opportunities.

Source: The Sun

Malaysia expects Investment growth momentum to continue in 2024

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Malaysia’s proactive measures and favourable investment policies have strategically positioned it well in the global foreign direct investment (FDI) landscape, according to the United Nations Trade and Development (UNCTAD) World Investment Report 2024.

The report, released on June 20, highlighted a slew of strategic initiatives mulled by Malaysia, ranging from assistance in obtaining specific permits to comprehensive support for foreign investors.

Among others, Malaysia adopted a dedicated visa facilitation service for strategic investors identified by the Malaysian Investment Development Authority (Mida).

The nation is also implementing fast-track “green” lanes and simplified processes to ease investment, it said.

According to UNCTAD, Asean member countries have also developed investment portals and digital platforms for e-payment and acceptance of electronic documents and certificates, further enhancing the investment landscape.

“The Asean region has long been proactive in adopting strategies and policy measures to support investment. These efforts have intensified in recent years, accelerating during the pandemic, with an increase from six new investment facilitation measures in 2019 to 28 in 2020.

“These included the introduction of online facilities, e-application systems and streamlined administrative processes, reflecting a strong regional commitment to digitalising and simplifying investment procedures,” it said.

The report also shows that Malaysia’s attractiveness is further bolstered by its steady expansion in sustainable development initiatives.

The World Investment Report 2024 said the rapid expansion in the sustainable finance market has brought about the parallel growth of national sustainable finance measures in the Group of 20 (G20) and the largest developing economies, including Malaysia.

In 2023, these economies introduced a total of 94 sustainable finance policies and regulations.

The report said that in total, FDI inflows to Southeast Asia remained stable, with an increase in merger and acquisition sales.

The number of greenfield announcements surged by 42%, adding US$62 billion more in value.

However, it said this gain was countered by a US$64 billion fall in the value of international project finance deals.

More broadly, while foreign investment flows to developing Asia receded in 2023, they remained high at US$621 billion.

The continent, led by East and Southeast Asia, continued to be the world’s largest recipient of FDI, accounting for nearly half of global inflows, UNCTAD said.

In Malaysia, notable projects included a US$10 billion expansion of Malaysian automaker Proton Holdings Bhd (KL:PROTON), which partly owned Geely.

In 2023, global FDI decreased by 2% to US$1.3 trillion.

Mida reported that in the first quarter of 2024, Malaysia attracted RM83.7 billion of approved investments, comprising RM43 billion (or 51.3%) in manufacturing, RM39.3 billion (47%) in services and RM1.4 billion (1.7%) in the primary sector.

This marked a 13% jump in overall approved investments from the same period last year.

Source: Bernama

Malaysia’s proactive measures enhance its position in global FDI landscape — UN report

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Malaysia’s potential entry into BRICS (Brazil, Russia, India, China, and South Africa) will not affect the country’s electrical and electronics (E&E) sector amid the United States (US)-China tensions.

Science, Technology, and Innovation Minister Chang Lih Kang said that research and development in the field, particularly involving semiconductors, will benefit from the multilateral cooperation.

He said that should Malaysia become a BRICS member, it would still maintain neutrality between the US and China.

“BRICS encompasses nine countries, representing roughly 45 per cent of the world’s population. This is a very large market, and we hope to gain access to this market.

“Not only Malaysia, but more and more countries, including the United Arab Emirates (UAE) and Saudi Arabia, are looking at joining BRICS. So, saying we are shifting from neutrality by joining BRICS is not true.

“So, I don’t see joining BRICS as shifting from neutrality. We are still neutral but we aim to join BRICS for economic benefits,” he told reporters after attending the pre-launch of the Industry Technology Innovation Centre (ITIC) and the opening of the Semiconductor Research Consortium and MIMOS Academy at Kulim Hi-tech Park here today.

He said that research and development in the field would benefit not only from BRICS but also from other multilateral international alliances.

“There are other multilateral platforms we are part of, BRICS is just one of these platforms. We are also part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and others,” he added.

In an X post on April 22, Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia’s geopolitical neutrality and strategic positioning are key selling points to multinational semiconductor companies looking for investment destinations.

Zafrul said that as the rivalry between the U.S. and China intensifies, many global companies are restructuring their supply chains to reduce geopolitical risks.

On Tuesday, Prime Minister Datuk Seri Anwar Ibrahim announced that Malaysia will soon begin the process of joining the intergovernmental organisation BRICS.

Anwar said that the matter has been brought to the Foreign Affairs Ministry for further study and, in principle, Malaysia has agreed to join BRICS.

Meanwhile, Chang expressed confidence that the establishment of ITIC, the Semiconductor Research Consortium, and MIMOS Academy are strategic and transformative steps for long-term industrial and talent development.

“This reflects the ministry’s commitment to creating a semiconductor technology ecosystem to enhance Malaysia’s position in the global E&E sector,” he added.

Source: NST

Joining BRICS will not affect research and development for E&E sector says Chang

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The government is confident that Malaysia’s position in the IMD’s World Competitiveness Ranking 2025 will improve compared to this year, driven by the increase in high-technology product exports.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the reduction in the country’s high-technology exports had influenced Malaysia’s lower positioning in the IMD list last year, and this was a short-term situation that is expected to improve this year.

The minister said this is following the many new investments from electrical and electronics companies in Malaysia as well as those from multinational corporations.

“All of these (investments) will begin to have an effect in the next 12 to 18 months, and they will improve our position,” he said in a post on social media.

High-technology exports are products with extensive research and development components, such as those in the aerospace, computer, pharmaceutical, scientific instruments, chemical, and electrical machinery sectors.

Tengku Zaful said Malaysia’s lower position in the IMD competitiveness ranking resulted from a fall in electronic communications exports due to lower global demand and increased global competition for electronic communications products last year.

“For example, China’s high-technology exports in the first 10 months of 2023 fell 11.4 per cent year-on-year to US$728.2 billion, while South Korea’s (high-technology exports) plummeted 28 per cent to US$110 billion, and Japan was 10 per cent lower to US$76.9 billion,” he said. (US$1 = RM4.71)

However, Tengku Zafrul said the global sales of semiconductors are projected to increase 16 per cent in 2024 and 12.5 per cent in 2025, benefiting Malaysia as the world’s sixth largest semiconductor exporter.

“When demand for semiconductors increases, it is automatic for a country’s high-technology exports to increase too,” he explained.

Tengku Zafrul added that stable economic growth, low unemployment and an inflation rate that remains under control will improve Malaysia’s position in the near future.

Source: Bernama

Malaysia’s position in IMD Competitiveness Ranking 2025 set to improve – Tengku Zafrul

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Kuala Lumpur’s diverse, multilingual talent pool, robust regulatory frameworks, business-friendly environment, and strong commitment to sustainability are making it increasingly prominent as a highly appealing and accessible hub in Asia, according to InvestKL chief executive officer Datuk Muhammad Azmi Zulkifli.

He said that the city is gaining recognition as a prime location for global service centers that empower multinational corporations (MNCs) to efficiently serve their customers across Asia in areas such as digital innovation and technology.

“We are already witnessing successes in this space. As these MNCs establish their presence in Greater Kuala Lumpur (KL), they bring not only significant investment but also invaluable expertise and cutting-edge technology, catalysing a positive ripple effect across the Malaysian economy,” he said.

Last year alone, InvestKL secured a record-breaking RM8.7 billion in foreign direct investment (FDI), resulting in the creation of 8,329 high-skilled jobs.

This marks a significant increase from RM2.79 billion in FDI and 2,805 associated jobs created in 2022.

“But far from resting on our laurels, our team is striving to surpass these achievements by strategically targeting MNCs seeking to establish a robust foothold in Asia,” Azmi said.

He added that InvestKL’s efforts to attract leading global companies and foster a collaborative environment have solidified the Greater KL position as a thriving global services hub.

He said this success translates to far-reaching economic benefits for Malaysia, including direct investment, high-value job creation, and the development of a highly skilled workforce.

Furthermore, Azmi said the dynamic collaborations forged between foreign and local companies, supported by strong public and private sector partnerships, have created a vibrant ecosystem that benefits all stakeholders.

He noted that the positive spillover effects from MNCs, such as technology transfer, knowledge sharing, and increased productivity, are key to driving Malaysia’s overall economic growth and development.

“We remain committed to nurturing these collaborative relationships, ensuring Greater KL thrives as a premier destination for global services, and contributing to Malaysia’s economic prosperity,” he said.

Malaysia continues to attract investments from world-renowned companies, drawn by its robust infrastructure, strategic location in Southeast Asia, competitive business environment, and skilled workforce. This is also underpinned by the government’s initiatives and policies aimed at fostering economic growth and innovation.

InvestKL’s success in attracting global giants such as Zimmer Biomet, a world leader in medical technology, and the London Stock Exchange Group (LSEG) exemplifies Greater KL’s growing reputation as a world-class business hub.

Azmi noted that LSEG’s flagship office in Greater KL also underscores its confidence in the region’s financial sector and commitment to nurturing local expertise.

Beyond Zimmer Biomet and LSEG, other prominent MNCs with global service hubs in the Greater KL have actively partnered with local universities to provide hands-on learning opportunities for students.

“These initiatives, facilitated by the InvestKL Talent Programme (ITP), are not just about aligning local talent with the needs of global companies but also about empowering the next generation of Malaysian professionals with the skills and knowledge to thrive in a globally competitive landscape,” Azmi said.

He said that the ESG & Sustainability ConneXion Centre (ESGS CXC), established by InvestKL in Greater Kuala Lumpur, is making significant strides in promoting sustainable business practices and encouraging the adoption of environment, social, and governance (ESG) principles.

The ESGS CXC serves as a hub for facilitating policy advocacy, capability building, and knowledge sharing among various stakeholders across the business ecosystem.

Azmi highlighted that the Greater KL Live Lab (GKL LL) continues to connect foreign MNCs with local SMEs, educational institutions, and research organisations to drive ESG and sustainability initiatives.

“We have seen international companies such as DHL using Greater KL as a testbed for maritime deliveries using drones and Japan-based digital healthcare service provider Allm Inc. collaborating with local hospitals to conduct clinical trials.

“Other companies proudly participating in the Greater KL Live Lab program include Behn Meyer AgriCare, uPledge, Quantum, and Malaysia’s own Carsome, to name a few,” he noted.

Source: NST

Greater KL gaining prominence as Asia hub, says InvestKL CEO

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Japanese investors have been invited to explore potential stakes in Sabah’s renewable energy sector and semiconductor industry.

State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe said Sabah could offer them a conducive environment.

“We have been working closely with the Japanese Ambassador to Malaysia, His Excellency Takahashi Katsuhiko, and Japanese trade associations, including Jactim and Jetro,” he said at the Sabah-Japan environmental, social and governance (ESG) forum here on Friday (June 21).

“Sabah’s proximity to Japan positions it as a pivotal player in the journey towards sustainable energy solutions development in the region,” he added.

He said Japan has been a crucial trading partner for the region, and its economic partnership with Malaysia had flourished since the 1980s under the Look East Policy.

“Japan also stands as Sabah’s fourth-largest trade partner, accounting for 7.9% of Sabah’s total trade,” he said, adding that the state’s exports to Japan amounted to RM2.936bil, representing 9.4% of its total exports.

These figures underscore the robust and vital economic relationship between Sabah and Japan, which continues to grow stronger, Phoong added.

He noted that the partnership and investments from Japan are critical as the global supply chain transitions towards energy sustainability and a low-carbon economy.

“Collaboration between Sabah and Japan will be key in leveraging Japanese expertise and technologies to drive innovation and sustainability in various sectors,” he said.

Source: The Star

Sabah has lots to offer Japanese investors in green energy and chipmaking, says minister

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The state government in collaboration with the Town and Country Planning Department (Plan Malaysia Johor) is drawing up the Johor State Data Centre Development Planning Guidelines to coordinate and monitor data centre development planning.

Johor Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han said the initiative is aimed at having a uniform guide and reference for local councils and agencies involved.

Lee, who is also the Paloh assemblyman, chaired the first meeting of the Johor State Data Centre Development Coordination Committee yesterday.

“Committee members are made up of state and Federal agencies including the Johor Economic Planning Division, Invest Johor, Malaysian Investment Development Authority (Mida), Malaysian Digital Economy Corporation (MDEC), Iskandar Regional Development Authority (IRDA), Tenaga Nasional Berhad (TNB) , Ranhill SAJ, Land and Mines Office, Environment Department and Plan Malaysia which acts as the secretariat.

“Among the functions of the committee include assisting the state government and councils to coordinate the development of data centres, providing advice on matters related to data centre development before applications are considered by the councils, considering and making recommendations for the development of data centres in existing or abandoned buildings and submitting reports related to data centre development to the State Planning Committee (if necessary),” he said in a post on his Facebook page.

Lee said the committee has decided that data centers in Johor should focus on the use of renewable technology in addition to saving electricity and water.

“In this regard, the state government will continue its investment-friendly policy since the development of data centres is one of the main requirements in increasing the use of technology and digital as a result of the development of Industrial Revolution 4.0 and Artificial Intelligence, which can increase productivity and competitiveness.

“Furthermore, the state government will work with Federal agencies such as Mida and MDEC to realise the potential of developing a wider digital ecosystem as well as attracting related and AI-based technology companies to Johor, while also creating job opportunities in the fields of technology, engineering, data management, infrastructure support for the people of Johor,” he said.

A total of nine data centre projects have been successfully implemented with a total capacity of nearly 1,280 megawatts so far.

Six projects are currently under construction with a projected capacity of nearly 1,490 megawatts in addition to more than 30 projects that are at various stages of discussion and approval.

Source: Bernama

Johor to streamline coordination of data centres for local councils and agencies

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Malaysia saw a 13 per cent jump in approved investments to RM83.7 billion for the January to March 2024 (1Q24) period, the Malaysian Investment Development Authority (Mida) said.

Of this, more than half came from foreign investors, while domestic investments made up the balance 43.8 per cent.

About 51 per cent of investments were for manufacturing, 47 per cent for services and 1.7 per cent for primary sectors.

These approved investments comprise of 1,257 projects, which are expected to generate 29,027 new job opportunities for Malaysians.

Austria topped the list of foreign investors by a very wide margin, with RM30.1 billion (64 per cent) in approved investments, followed by Singapore (RM5.6 billion), The Netherlands (RM3.6 billion), The People’s Republic of China (RM3.4 billion), and The United States of America (RM632.8 million).

In terms of states, Mida said Kedah recorded the highest value of approved investments (RM31.3 billion), followed by Kuala Lumpur (RM21.5 billion), Selangor (RM12.4 billion), Sarawak (RM4.2 billion), and Johor (RM4.1 billion).

Target sectors stipulated by the National Investment Aspirations (NIA) contributed RM53.7 billion, accounting for 64.1 per cent of the total approved investments across 252 projects, which are expected to create 17,056 new job opportunities.

Of the total approved investments, RM47.5 billion, or 56.8 per cent, fall under the jurisdiction of the Ministry of Investment, Trade and Industry (Miti)/Mida, covering 500 projects with 18,517 new job opportunities.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the approved investments of almost RM84 billion for 1Q24 reflect how Malaysia has earned investors’ trust.

He added that working closely with Mida, his ministry has delivered not just the investment numbers, but also their speedy realisation to quickly translate these investments into business opportunities for SMEs and jobs for Malaysians.

Making reference to Malaysia’s drop in world competitiveness ranking by the International Institute for Management Development, Tengku Zafrul said the real proof of Malaysia’s competitiveness is in the actual, continuous inflow of investments.

Malaysia now places at 34 among 67 countries on the list, from 27 in 2023.

On a sectoral basis, Malaysia’s manufacturing sector experienced significant momentum with approved investments of RM43.0 billion, registering a jump of 174.9 per cent compared to 1Q23.

Mida said a total of 252 projects were approved, which would create 17,991 new employment opportunities.

Of these, 80.8 per cent or 14,528 are for Malaysians, with 50.6 per cent in management, professional, technical, supervisory, and skilled labour roles.

FI accounted for RM38.2 billion or 88.8 per cent of the total approved investments in the manufacturing sector.

DI contributed RM4.8 billion or representing 11.2 per cent of the total.

Meanwhile, the country’s services sector recorded RM39.3 billion in investments across 994 projects, creating 10,988 employment opportunities.

DI accounted for RM30.6 billion (77.9 per cent), while FI contributed RM8.7 billion (22.1 per cent).

Mida said DI’s robustness was driven by government incentives, a stable economic environment, strategic national initiatives for digital transformation and infrastructure enhancement, and supportive policies for local enterprise development.

On the other hand, the primary sector secured RM1.4 billion in approved investments across 11 projects, mainly in mining.

The approved investments, dominated by domestic sources with RM1.3 billion (88.7 percent), while foreign sources contributed RM161.1 million (11.3 percent), are expected to create 48 new jobs.

Since beginning of the year, Miti and Mida have executed nine high-level overseas investment missions to key countries such as Germany, France, Australia, Italy, Singapore and Japan.

According to Mida, as of May 31, 2024, it is actively pursuing 1,775 proposed projects worth RM68 billion, with 1,709 in the services sector (RM44.7 billion) and 66 in manufacturing (RM23.3 billion), while negotiations are ongoing for high-potential leads totaling RM60.4 billion.

The National Committee on Investment also approved 2,638 manufacturing projects between 2021 and March 2024. Notably, 77.2 per cent of these projects are in various stages of implementation, ranging from production to factory construction and machinery installations. Meanwhile, 21.1 percent are in the planning phase, focusing on initial steps like site selection and consultations with developers and consultants, while a minimal 1.6 per cent remain unimplemented. Malaysia also achieved a high ranking in the UN Trade and Development (UNCTAD) Technology and Innovation Report 2023, securing the seventh position in the industry rank and placing 32nd among 166 countries in the Frontier Technologies Readiness Index.

Source: NST

MIDA: Malaysia approved RM83.7b investments for January-March period, a 13pct jump from last year

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Malaysia has recorded a total value of RM83.7 billion in approved investments across various sectors for the period from January to March 2024 (1Q 2024), representing a 13 per cent increase from RM74.1 billion in the same period last year.

Minister of Investment, Trade, and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz said approved investments of almost RM84 billion for 1Q 2024 reflect on how Malaysia has earned investors’ trust.

“Hopefully this momentum (investment) will continue, but there are many issues that may be quite challenging (among them) in terms of geopolitical trade issues that occur between this trade war between China and the US. We have to monitor this closely,” he told reporters after launching the Bursa Malaysia Bhd’s Centralised Sustainability Intelligence (CSI) Solution here today.

Meanwhile, Tengku Zafrul said in a statement that working closely with the Malaysian Investment Development Authority (MIDA), MITI has delivered not just the investment numbers, but also the speedy realisation to quickly translate these investments into business opportunities for small and medium enterprises (SMEs) and jobs for Malaysians.

He said the real proof of Malaysia’s competitiveness is in the actual, continuous inflow of investments into key target sectors outlined by the New Industrial Master Plan (NIMP) 2030, including in high-growth industries such as semiconductors, data centres, renewable energy and electric vehicles.

“This is why we will also continue to focus on longer-term industrial reforms and other strategic policy efforts to nurture a conducive investment ecosystem, to drive productivity as well as sustainable, inclusive growth that will pave the way for Malaysia to be one of the top 30 largest economies globally by 2033,” he said.

MIDA chief executive officer Sikh Shamsul Ibrahim said the 1Q 2024 investment performance is a testament to MITI and MIDA’s tireless dedication to attract investors and nurturing a fertile ground for growth and innovation.

“We are steadfast in our mission to propel Malaysia to unprecedented economic heights through strategic partnerships with MITI and other key ministries and agencies.

“Our vision is to shape Malaysia into a leader in technological prowess, sustainable practices and a thriving investment landscape,” he said.

With forward-thinking policies and bold initiatives, he said Malaysia stands as a premier destination for both global and local investors, driving prosperity for the rakyat, SMEs and the wider business community.

“This united effort will steer us towards a future of unparalleled growth and innovation,” he added.

According to MIDA, the total approved investments for 1Q 2024 comprise 1,257 projects, which are expected to generate 29,027 new job opportunities for Malaysians.

“Foreign investments accounted for 56.2 per cent, or RM47 billion of the total investments, while domestic investments made up the balance of 43.8 per cent, valued at RM36.7 billion.

“Austria topped the list of foreign investors by a very wide margin, with RM30.1 billion (64 per cent) in approved investments, followed by Singapore (RM5.6 billion), the Netherlands (RM3.6 billion), China (RM3.4 billion) and the United States (RM632.8 million),” it said.

In terms of states, MIDA said Kedah recorded the highest value of approved investments at RM31.3 billion, followed by Kuala Lumpur (RM21.5 billion), Selangor (RM12.4 billion), Sarawak (RM4.2 billion) and Johor (RM4.1 billion).

“Target sectors stipulated by the National Investment Aspirations (NIA) contributed RM53.7 billion, accounting for 64.1 per cent of the total approved investments across 252 projects, which are expected to create 17,056 new job opportunities.

“The NIA is built on five robust pillars: enhancing economic complexity, creating high-value job opportunities, expanding domestic linkages, developing new and existing clusters, and promoting inclusivity,” it said.

Of the total approved investments, MIDA said RM47.5 billion, or 56.8 per cent, fall under the jurisdiction of MITI/MIDA, covering 500 projects with 18,517 new job opportunities.

Malaysia’s manufacturing sector experienced significant momentum with approved investments of RM43 billion, registering a remarkable 174.9 per cent increase compared to 1Q 2023, with electrical and electronics (E&E) being the major industry underpinning manufacturing economic growth with approved investments of RM34.3 billion.

Source: Bernama

Malaysia records RM83.7 bln approved investments in 1Q 2024

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The opening of Penang’s Asia Design Centre is a significant step forward for Malaysia’s tech ecosystem to develop next-generation precision digital instruments, leveraging custom integrated circuit (IC) designs.

Digital Minister Gobind Singh Deo said this enables the delivery of high-performance and high-quality semiconductors, propelling Malaysia’s technological capabilities.

The Asia Design Centre is a RM71 million investment by LTX-Credence Sdn Bhd, part of US-based global tech company Cohu.

“The investment is a testament to LTX-Credence’s commitment to Malaysia’s growth. This is projected to generate an impressive RM1.6 billion in indirect economic value over the next five years, significantly boosting the local economy,” Gobind said at Asia Design Centre’s inauguration today.

“As part of Cohu, LTX Credence has established itself as a leader specialising in semiconductor test solutions. Ranked third globally in the semiconductor test industry, its expertise and innovation continue to set new benchmarks,” he said.

Gobind said Cohu has a presence with operations and customer support centres across key markets in Asia, Europe, and North America with more than 500 highly skilled field engineers.

He said the Asia Design Centre’s recruitment drive will attract up to 60 skilled research engineers, paving the way for a rise in highly trained workforce. The investment also aligns with Prime Minister Datuk Seri Anwar Ibrahim’s vision to upscale Malaysia’a semiconductor industry.

He also said LTX-Credence’s Malaysia Digital status in May 2024 underscores government support and commitment to the sector.

“Malaysia commands an impressive seven per cent share of the global semiconductor market with companies increasingly diversifying operations beyond a single location to mitigate risk and ensure continuity.

“More will be done to enhance the nation’s capabilities and infrastructure because the ultimate goal is to see Malaysia play a role in the global semiconductor industry,“ he said.

Collaborations between the centre and local universities and research institutions are a possibility, he said.

Source: Bernama

LTX-Credence’s RM71m investment in Asia Design Centre to generate economic value, jobs

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Malaysia’s decline in the IMD World Competitiveness Rankings 2024 was due to the weak ringgit last year, said Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz.

He said based on the ministry’s preliminary study of the report, the reason for the country’s drop in the index from 27th place in 2023 to 34th spot in 2024, was the reliance on 2023 data to measure national competitiveness.

“(The report) was based on data from last year, 2023, compared with 2022, so there was a one-year lag. The factor that had the most significant impact is the stability of the ringgit, as highlighted in the rankings,” he said after launching the Centralised Sustainability Intelligence Solution at Bursa Malaysia today.

Tengku Zafrul said the weak ringgit last year had various implications, including the valuation of investments, productivity, and efficiency, which is closely related to the currency’s value, consequently reflecting concerns about economic stability.

“As you know, the ringgit was affected in 2023, and that had an effect on our competitiveness, but now the ringgit has strengthened, and if the same momentum continues, the ranking should improve,” he said.

He said low contribution from the electrical and electronic (E&E) export sector last year also affected the country’s ranking.

The minister noted that exports of high-end manufacturing products, especially E&E, had declined last year, which affected its weightage.

“This was in tandem with the slowdown in trade worldwide, but this year we can see that the sector has improved.

“Trade numbers have gone up quite considerably, by more than 10 per cent in May 2024,” he said.

Malaysia slipped by seven places to 34th place out of 67 in the IMD World Competitiveness Ranking 2024, after ranking 27th in the index last year.

In the Asia-Pacific region, out of 14 countries, Malaysia slid by four spots to 10th place.

Source: Bernama

Weak ringgit in 2023 downed Malaysia’s competitiveness ranking — Tengku Zafrul

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A total of nine data centre projects have been completed in Johor, while six others are in the process of completion, says Lee Ting Han.

The Johor investment, trade, consumer affairs and human resources committee chairman said that the state has become a key player in the development of data centres in the region due to several key advantages.

“Among the factors that have made Johor ideal for the development of data centres include its strategic location, the availability of utilities, infrastructure and human resources, as well as the investor-friendly approach of the state and federal governments.

“As of June this year, nine data centre projects with a combined capacity of 1,280 megawatts have been completed in the state, while six other projects with an estimated capacity of almost 1,490 megawatts are in the process of being completed.

“On top of that, there are 30 other projects that are in discussion and approval level,” he said in a statement here on Thursday (June 20).

Lee added that in view of the rapid growth, the state government has taken some steps to ensure that the development of data centres is being properly planned and that it will benefit the locals.

“As such, the state government and the Johor Town and Country Planning Department (PLANMalaysia) have come out with guidelines.

“This will act as a guide for local councils and agencies involved in the coordination and monitoring of data centres,” he said.

He added that he had chaired the first meeting of the Johor data centres coordination and development committee on Wednesday (June 19), where several key matters were discussed.

“The committee has decided that data centres in Johor should focus on the use of renewable technology capable of saving electricity and water,” he said, adding that the state government will continue sticking to its investor-friendly policy.

Source: The Star

Nine data centres in Johor completed, six others in progress, says exco rep

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IT is not very often that Malaysia garners global attention for good reasons. Amid escalating geopolitical tensions between the US and China, and supply chain diversification worldwide, Malaysia is now in a sweet spot to become a third force in the global semiconductor industry.

Following back-to-back reports by Financial Times and The New York Times in March, which claimed that Malaysia has emerged as a surprising winner in the global chip industry, the nation continues to attract the attention of foreign media from China, Taiwan, South Korea and Vietnam.

Some of these foreign media have even questioned their governments, highlighting Malaysia’s success in attracting foreign direct investments (FDIs) in the tech space, and urging their own countries to take similar action.

Ironically, this is something we Malaysians have been doing for years — urging our government to do more so we can catch up with the Four Asian Tigers: Hong Kong, Singapore, South Korea and Taiwan.

It feels strange, but gratifying, of course, to be envied by others.

While tremendous opportunities have now been presented right at our doorstep, it is not yet time to celebrate. Our work has only just begun.

As Prime Minister Datuk Seri Anwar Ibrahim unveiled Malaysia’s National Semiconductor Strategy (NSS) at Semicon Southeast Asia 2024 on May 28, most industry players agree that the initiatives and headline targets are precisely what the nation should aim to accomplish.

For the longest time, Malaysia has aspired to move up the electrical and electronics (E&E) value chain. However, there was no concrete plan or national road map to drive this — until now.

As Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Aziz rightly pointed out, Malaysia has a “once-in-a-generation opportunity” to propel the country’s E&E industry forward.

“We must act now, become more resilient and seize the opportunity because failing to do so may result in a missed economic advantage that could set us back for years,” he said during a media briefing on the NSS in Putrajaya a day after it was unveiled.

The sense of excitement and anticipation of the opportunities that have come knocking on our door was palpable at the Semicon Southeast Asia 2024 exposition, recently held at the Malaysia International Trade and Exhibition Centre (Mitec) in Kuala Lumpur.

The bustling event that ran from May 28 to 30 (Tuesday to Thursday) was crowded with participants, so much so that Mitec’s parking lots were filled to capacity. And exhibitors gave overwhelmingly positive feedback.

The consensus is that the worst is over for the semiconductor downcycle and chip glut. Some even suggest that a bull run is possible in the second half of the year.

And Malaysia, whose Penang state has long evolved into an industrial hub for semiconductor and E&E products — earning it the nickname “Silicon Valley of the East”, will be right in the centre of it all.

Penang’s transformation from a thriving free port into a manufacturing and tourism hub started as early as the 1970s, when the state government, led by the late Tun Dr Lim Chong Eu, kick-started the state’s industrialisation.

The initiative attracted significant FDI and saw “The Eight Samurai” — the eight multinational corporations that brought the first wave of E&E manufacturing investments into Malaysia — setting up their operations here. They are Intel, Robert Bosch, Clarion, Advanced Micro Devices (AMD), Hewlett-Packard (now Keysight Technologies and Agilent Technologies), Litronix (now Osram Opto Semiconductors), Hitachi (now Renesas Electronics) and National Semiconductor.

Despite that strong start five decades ago, Malaysia stagnated in the E&E value chain, primarily remaining in the outsourced semiconductor assembly and test segment.

Even with the rise of the automated test equipment sub-sector in recent years, Malaysia has continued to struggle to elevate itself, particularly in front-end semiconductor design.

The newly launched NSS seeks to address this hurdle. As with all plans, though, success hinges on its execution. How effectively we implement these initiatives will determine whether we can capitalise on current global shifts and secure a favourable position in the semiconductor industry.

The NSS represents a pivotal step for Malaysia, but it is only the beginning. Malaysia must avoid past missteps and leverage this window of opportunity that has come upon us. The road ahead requires concerted efforts from all stakeholders, and the coming years are crucial in defining Malaysia’s trajectory in the high-stakes world of technology.

Can Malaysia regain its momentum and rise to the occasion?

The world is keenly watching. Let’s make sure we get this right.

Source: The Edge Malaysia

All eyes on Malaysia amid global chip war

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