As 2024 draws to a close, the automotive industry stands out not only because of the better-than-expected vehicle sales for the third year running but also due to the much-anticipated launch of Malaysia’s very own electric vehicle (EV).

As Prime Minister Datuk Seri Anwar Ibrahim unveiled the sleek e.MAS 7 EV on Dec 16, priced from RM120,000 onward, it marked a key step toward Malaysia embracing electrification in line with the nation’s sustainable mobility goals.

Rolling out the EV was another milestone for national carmaker Proton Holdings Bhd, which is expected to boost demand in the fast-growing EV market and drive overall auto sales.

Furthermore, in what was a clear reflection of consumers’ penchant for new cars, analysts and industry experts believe total industry volume (TIV) for 2024 will surpass that of 2023, marking the third consecutive year of an all-time high.

Key growth drivers include sustained demand in the affordable segment, attractive new launches, a robust domestic economy, healthy backlog orders and continued aggressive promotional strategies from car manufacturers.

This year, Malaysia’s automotive industry accelerated smoothly, demonstrating resilience and adaptability, reflecting steady growth and forward-thinking innovation.

Stronger Sales

The Malaysian Automotive Association (MAA) had earlier projected the total TIV for 2024 to be 740,000 units, but revised it upwards in July to 765,000 units given the positive growth in the first half of the year (1H2024).

Between January and June 2024, total TIV rose 6.6 per cent year-on-year (y-o-y) to 390,296 units from 366,176 units in the same period in 2023, supported mainly by the strong showing in the passenger car subsegment which contributed the largest volume increase.

MAA’s continued optimism led it to revise the TIV again in November to 800,000 units.

The association reported that year-to-date vehicle sales in November 2024 increased by 1.4 per cent to 731,534 units, up from 721,392 units in the same period last year.

Passenger vehicle (PV) TIV rose 3.0 per cent y-o-y to 670,650 units, while commercial vehicle (CV) TIV dropped 17 per cent y-o-y to 60,884 units.

“We believe the automotive industry will achieve another record this year,” MAA president Mohd Shamsor Mohd Zain told Bernama.

As of October 2024, Perodua led the auto sales race in Malaysia with 294,090 units, followed by Proton (122,462 units) and Toyota (102,163 units).

In other brands, Honda sales were driven by the popular Civic, City and all-new HR-V; while Nissan showcased its face-lifted Serena S-Hybrid, Navara and Almera Turbo; followed by Proton with the all-new X70, X50 and X90; Perodua (the all-new Alza, all-new Axia, MyVi, Bezza and Ativa); Toyota (all-new Vios, Yaris, Corolla Cross and Hilux); and Mazda (CX-5, CX-8 and CX-30).

As for production, some 725,173 vehicles were manufactured in January-November 2024, up 3.0 per cent y-o-y from 708,376 units in the same period a year ago.

This included 683,262 PVs (+3.0 per cent y-o-y) and 41,911 CVs (-7.0 per cent y-o-y).

MAA expects TIV in December 2024 to be higher in November, on the back of aggressive year-end promotions, especially by companies having their financial year ending on Dec 31, 2024.

Electric Vehicles On The Rise

Growth in Malaysia’s automotive industry was also supported by sales of EVs, which soared by a whopping 112 per cent to 6,617 units in 1H2024 from the 3,117 units registered in 1H2023.

MAA said 15,884 hybrid vehicles were sold in 1H2024, bringing the number of electrified vehicles (xEV), which includes hybrids, plug-in hybrids and EVs, sold in the county during the period to 22,501 units.

Though the data is already impressive, officially, it does not include the 3,079 vehicles sold by Tesla during the period given that the American automaker is not a member of the MAA.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz recently announced that xEVs on the road stood at 33,319 units as of Sept 30, approximately 5.0 per cent of the TIV.

This brisk EV adoption in the country was due to rising consumer interest, supportive government policies, initiatives and infrastructure development.

For instance, fully imported completely built-up (CBU) EVs were currently accorded full import and excise duty exemption until the end of December 2025, while locally assembled/completely knocked down (CKD) vehicles were exempted from excise and sales tax until the end of December 2027.

“These tax incentives should be further extended until 2030 in line with the government’s target of achieving 15 per cent xEV by 2030,” said MAA’s Mohd Shamsor.

Additionally, EV giants like BYD and Tesla, as well as Stellantis – the world’s fourth-largest automaker and a leading mobility solutions provider – have entered the Malaysian market, further boosting the industry’s expansion.

Proton, through its new energy vehicle arm PRO-NET, made history with the launch of the e.MAS 7, marking it as the first EV by a Malaysian original equipment manufacturer (OEM)     

As for charging stations, an issue widely discussed among car owners, more than 3,171 charging stations have been installed nationwide as of Sept 30, 2024, including 813 direct current (DC) fast chargers.

The government is keeping to the target of 10,000 EV charging stations in the country by end-2025.

Diesel Subsidy, E-Invoicing In Focus

On June 10, the targeted diesel subsidy rationalisation programme was implemented to manage subsidies more efficiently and curb smuggling and the misuse of subsidised fuel, from which the government would save RM4 billion annually.

Undoubtedly an unpopular measure, especially for Malaysians who have enjoyed subsidies for umpteen years, the retail price of diesel rose to RM3.35 per litre from the blanket subsidised price of RM2.15.

Many analysts projected that it would not have a severe impact on consumers as diesel vehicles constitute less than 12 per cent of the total vehicles nationwide.

The government has also been magnanimous in providing targeted subsidies to eligible recipients and sectors. Vehicles that use diesel engines comprise pickup trucks, vans and commercial vehicles.

Besides private use, they are primarily used in the construction, plantation, logistics, tourism and transportation sectors.

The focus in the auto industry was also centered on the implementation of e-invoicing which aims to improve transparency in financial transactions.

Kenanga Investment Bank Bhd recently said e-invoicing had a limited impact on car sales as automakers step up efforts to provide discounts and rebates to sustain demand and alleviate consumer concerns

The investment bank said e-invoicing effectively halts the widespread practice of offering 100 per cent hire purchase financing, although, under the Hire Purchase Act 1967, customers are required to pay a minimum 10 per cent down payment for vehicle purchases.

Promising Outlook For Automotive Sector

The local automotive industry is poised for growth next year, leveraging targeted government policies, wage improvements and cost advantages, while navigating challenges from evolving consumer preferences and competition.

As such, the outlook remains optimistic in 2025 despite the impending changes in RON95 fuel subsidy policies and increased competition among industry players.

Under Budget 2025, the government plans to end blanket subsidies for RON95 fuel in the second half of the year.

Many expect that a two-tier pricing system will likely be introduced, where only the T15 income group and foreigners will pay market rates. This shift is not expected to significantly impact national OEMs, which primarily cater to the B40 and M40 segments.

The affordable car segment is expected to continue thriving, supported by targeted subsidies and the progressive wage model.

Wage increases for civil servants, ranging from 7.0 per cent to 15 per cent in December 2024, will also enhance purchasing power, offsetting inflationary pressures.

However, the mid-market segment may face challenges as the M40 group might delay purchases or opt for smaller EVs to mitigate higher fuel costs.

Additionally, the industry is witnessing intensified competition from Chinese OEMs offering competitively priced models with advanced features, creating pressure on established players.

On the brighter side, the stronger ringgit against the US dollar is projected to lower automotive part costs by 2H205, improving profit margins.

Mohd Shamsor said although the xEV market is still small, EVs will likely see greater expansion in the next two to three years, provided the government policies to boost cleaner and green vehicles continue.

Nevertheless, there should be a balance between emphasis on internal combustion engine (ICE)/hybrid vehicles and EVs, he said.

“This is to ensure the co-existence of both to minimise any adverse impact on the current ecosystem which may lead to workforce displacement and the sustainability of small and medium enterprises manufacturing parts and components for ICE/hybrid vehicles.

“Moreover, hybrid vehicles are also now more efficient in fuel economy and environmentally friendly,” Mohd Shamsor added.

To recap, xEVs sold last year totalled 38,214 units, higher than 22,619 units in 2022 and 8,153 units in 2021.

Source: Bernama

The year in automotive: First national EV debuts

Phillip Capital Research says industrial players in the electronics manufacturing services (EMS) and technology sectors are better positioned than consumer electronics players to ride on the artificial intelligence (AI) boom.

The research house said in a report that industrial players in the EMS and tech sectors are also less susceptible to any global economic slowdown.

“In the technology sector, the market has already priced in the impact of significant foreign exchange losses ahead of the results for the third quarter of 2024. However, sentiment is improving as the worst seems to be over and the US dollar strengthens.

“Investors are positioning for the next semiconductor cycle, with earnings delivery being the key catalyst for further share price re-ratings. The focus is expected to remain on the AI supply chain.

“We maintain an ‘overweight’ stance, favouring long-term secular trends in data centres, automotive and solar, with a preference for front-end exposures,” the research house said.

The research house said the EMS sector offered a higher degree of earnings certainty, with Nationgate Holdings Bhd set to ramp up server production and fulfil delivery orders, driving 83% year-on-year (y-o-y) earnings per share growth in 2025.

Phillip Capital Research said the technology sector appeared to have bottomed out, signalling a gradual recovery in earnings.

“We foresee stronger earnings momentum in 2025, with sector earnings growth of 69.5% y-o-y as the semiconductor cycle turns,” the research house said.

For EMS sector exposure, the research house’s top pick is Nationgate, as it continued to benefit from rising demand for AI servers.

“We raise our target price to RM3 from RM2.65 after factoring in higher server deliveries. We also continue to like Frontken Corp Bhd due to its unique exposure to the front-end semiconductor value chain.

“We also raise our earnings and target price for Pentamaster Corp Bhd from RM4.40, on an unchanged 31 times price-earnings multiple, taking into account the increased stake in Penta International from 63.9% to 71%.

Source: The Star

Electronics, tech players to continue riding AI wave

VentureTECH Sdn Bhd and MTC Orec Sdn Bhd have formed strategic partnerships to accelerate the development of MTC Orec’s biomethane plants, reinforcing both companies’ commitment to sustainable growth and renewable energy innovation.

In a joint statement issued on Monday, the companies revealed that VentureTECH’s investment will support the establishment of new biomethane plants in Peninsular Malaysia’s northern and east coast regions.

The investment will also enable the execution of a biomethane project in partnership with a leading oil and gas player, set to commence next year.

These efforts are expected to make a significant contribution to Malaysia’s renewable energy goals, drive sustainable growth, and strengthen the nation’s commitment to reducing carbon emissions, according to the statement.

VentureTECH chief executive officer Ahmad Redzuan Sidek said the investment reflects the company’s dedication to supporting forward-thinking businesses that promote both economic growth and environmental sustainability.

“MTC Orec’s expertise in bioenergy and its contributions to Malaysia’s renewable energy targets make it an ideal partner.

“This collaboration will not only reduce carbon emissions and promote renewable energy adoption, but also create opportunities for Bumiputera companies and local communities. Together, we are paving the way for a more sustainable and inclusive energy landscape,” said Ahmad Redzuan.

He further noted that the partnership will foster the creation of high-value jobs and nurture engineering expertise, particularly in rural and underserved areas.

“MTC Orec’s innovative projects align with Malaysia’s aspirations for sustainable and inclusive growth, driving positive societal and economic transformation,” he added.

Meanwhile, MTC Orec chairman Dr Norshah Hafeez Shuaib said the investment reflects the trust and confidence that VentureTECH has in the company’s vision and capabilities.

“It will empower us to scale our operations, deliver cutting-edge biomethane projects, and make meaningful contributions to environmental preservation and rural development.

“Together with VentureTECH, we are setting a new benchmark for sustainable energy solutions that will benefit generations to come,” he said.

The partnership underscores the shared vision of VentureTECH and MTC Orec to advance Malaysia’s renewable energy ecosystem.

By championing impactful biogas projects, the collaboration promises long-term environmental, economic, and social benefits while driving innovation and sustainability in Malaysia’s energy sector, paving the way for a greener, more inclusive future.

MTC Orec is a local engineering company specialising in the bioenergy sector.

MTC Orec is a renowned leader in the design, engineering, procurement, construction, and commissioning (EPCC) of biogas facilities, with a proven track record in converting waste into renewable energy.

Notably, the company developed one of the first palm oil mill effluent (POME)-based biomethane plants to directly inject biomethane into Malaysia’s national gas pipeline, underscoring its leadership in aligning innovative solutions with Malaysia’s sustainability agenda.

Building on its successful collaborations with clients such as Gas Malaysia, MTC Orec is expanding its operations with four additional bioenergy plants under development across Johor and the northern region of Peninsular Malaysia.

These projects are crucial in addressing environmental challenges, including waste management and greenhouse gas emissions, while creating economic opportunities for local communities.

Meanwhile, VentureTECH is a government-backed impact investment company focused on catalysing the growth of local industries, particularly Bumiputera, in high-value and high-technology sectors through equity investment.

Source: Bernama

VentureTECH, MTC Orec partner to accelerate biomethane projects in Malaysia

Selangor has reaffirmed its position as the leading state in investment performance, recording approved investments of RM66.8 billion between January and September.

Selangor State Executive Councillor for Investment, Trade and Mobility Ng Sze Han said the positive investment performance showcases the vibrancy of Selangor’s industrial ecosystem, technological capabilities and competitive strengths in the manufacturing and services sectors.

Domestic investments accounted for the majority of the approved investments at 68.3% or RM45.6 billion, while foreign investments contributed 31.7% or RM21.2 billion.

Both domestic and foreign investments demonstrated remarkable growth, with domestic investments surging 74%, from RM26.2 billion, and foreign investments increasing by 68%, compared to RM12.5 billion in the same corresponding period last year.

During this period, Selangor attracted significant foreign investments, with the United States leading the contributions with RM4.8 billion, followed by Singapore RM1.8 billion, China RM1.76 billion, Japan RM564.6 million and Germany RM421.3 million.

A total of 1,371 projects were approved in Selangor, including 253 manufacturing projects and 1,116 services projects.

These projects are expected to create about 50,222 potential job opportunities, a substantial increase from the 997 approved projects and 23,060 potential job opportunities recorded in the same period last year.

The services sector continues to be the key driver of Selangor’s investment performance, with major contributions from sub-sectors such as information and communication, real estate, support services, transport services, and distributive trade.

Leading subsectors such as electrical and electronics, transport equipment, fabricated metal products, non-metallic mineral products, and machinery equipment contributed to the manufacturing sector’s strong investment performance. This underscores the sector’s resilience and continued growth.

“Selangor has certainly validated its case as a premier and attractive destination for investors. The future looks bright for Selangor, and we hope the upward momentum to continue and yield positive full-year results for 2024,“ Ng said.

Source: The Sun

Selangor outpaces other states with RM66.8b approved investments in January-September

Industrial automation and power systems provider Swift Energy Technology Bhd (SET) aims to increase export growth to 80% from the current 60% after its listing on Bursa Malaysia Securities’ ACE Market scheduled for Jan 8, 2025.

Tan also shared SET’s plans to venture into other regions, including the United Arab Emirates (UAE) and Qatar.

“The government has been instrumental in supporting us through initiatives like Matrade’s sponsorship for ADIPEC exhibitions and mid-tier company training. These efforts have helped us secure partnerships, such as with UAE-based Suwaidi Engineering,“ said Tan.

He said SET hopes to develop new products that can help address the Middle East market with the hotter ambient temperature.

“Currently, most of our projects cater to Asean and Asia-Pacific, where temperatures do not exceed 40°C. In the Middle East, temperatures range from 40°C to 55°C. Products for these conditions require special testing to ensure durability. We plan to acquire a temperature chamber simulating 55°C. Testing products in this environment will provide valuable data for this significant market,“ Tan explained.

Tan disclosed that Swift Energy Technology plans to expand operations in Indonesia.

“Indonesia is projected to become the sixth-largest economy globally and has the fourth-largest population. They demand food-related products like cooking oil, flour, sugar, and biodiesel, driven by Go Green initiatives requiring a 10% biofuel mix. It’s a vast market.”

He said SET, led by COO Chin Saw Yong, has been serving Indonesia since 2000. The company now has 300-400 installation bases and plans to address its existing markets while exploring new opportunities.

“SET’s collaboration with PT Sutrako, a specialist in offshore MCM maintenance projects, connects the company with Pertamina, Indonesia’s national oil company. With this support, we hope for expansion beyond Malaysia and Thailand,“ Chin said.

Additionally, Tan said, SET’s focus on digitalisation and continuous training has enabled the company to maintain a competitive edge in the industrial automation and power systems market.

“The ACE Market listing will provide us with the resources needed to invest in research and development, talent acquisition, and modern facilities. Currently, we have a complete range, and we hope during this one, two years ahead, we can focus on enhancing the current offering with a higher rating, with a wider coverage,“ said Tan.

Source: The Sun

Swift Energy aims to expand international footprint, boost export growth to 80% post-IPO

NOTWITHSTANDING the growth in the electronics manufacturing services (EMS) sector amid improved global demand and the increasing outsourcing trend, EMS companies on Bursa Malaysia have turned in a mixed performance owing to rising costs, high inflation and supply chain disruptions.

The movements in the share prices of closely followed EMS counters have reflected the developments in the companies.

For instance, Johor-based SKP Resources Bhd, V.S. Industry Bhd, Penang-based NationGate Holdings Bhd and P.I.E. Industrial Bhd have seen their share prices soar between 47% and 76% year to date (YTD).

Aurelius Technologies Bhd (KL:AURE) and EG Industries Bhd, both headquartered in Kedah, are up 29% and 51% respectively. But ATA IMS Bhd and JHM Consolidation Bhd are down 8% and 36% respectively.

“EMS players have corrected over the past year and the market has already adjusted for the weak outlook throughout the year. The market is now looking for recovery in this sector and we believe it will come. It’s a matter of when,” TA Investment Management Bhd chief investment officer Choo Swee Kee tells The Edge.

“EMS players ride the global consumer consumption demand. Hence, if global economic growth continues to chug along, demand for EMS services will be sustained. Other than the basic demand-supply dynamic, the current trend to diversify production due to China+1 or Taiwan+1 will benefit Malaysia’s EMS players and we expect this momentum to pick up in 2025. Overall, we are positive on EMS players in 2025.”

For SKP Resources, a recovery in consumer demand has given the electrical and electronics plastics maker a 27% year-on-year (y-o-y) improvement in its net profit to RM34.35 million for its second quarter ended Sept 30, 2024 (2QFY2025), on 22.2% higher revenue of RM635.29 million from RM519.91 million last year.

The company, which is a contract manufacturer for British consumer goods company Dyson Ltd in Malaysia, however, revealed in a statement that it is operating in a challenging business landscape of high inflation that has been weighing on production costs. In addition, it conceded that it is mindful of its heavy reliance on “a major customer” and is seeking to diversify its customer base.

Dyson recently said it intends to streamline its business in the region, including redeploying 47 employees from its advanced manufacturing facility to the global development campus in Johor. This is a move which TA Securities senior analyst Tony Chan Mun Chun believes could be intended for internal resource restructuring to boost efficiency rather than to cut down on its business here.

“We have confirmed with some local EMS companies that the order visibility from Customer D remains very healthy [with] no sign of slowing down. In fact, Customer D is looking to transfer some products from Mexico to Malaysia as it is planning to scale down the operations there,” Chan tells The Edge.

“Dyson’s move will benefit Dyson’s contractors in Malaysia with more business potential. However, we prefer to look way beyond Dyson for better diversification.”

Battling lower sales on a y-o-y basis as well as beaten down margins due to a softer US dollar, V.S. Industry posted a 37.5% y-o-y decline in net profit to RM30.6 million for the first quarter ended Oct 31, 2024 (1QFY2025).

According to PublicInvest Research’s Dec 9 note, V.S. Industry’s US-based customer was undergoing inventory rationalisation, resulting in a slowdown in production until the end of December.

“V.S. Industry’s management has revised its sales growth target higher to 6%, while net margin is estimated to come in the range of 4.8% to 5%, albeit subject to foreign exchange (forex) movements and labour costs,” said the research house, which is sanguine on the company’s outlook. It believes that stronger sales of RM300 million can be expected from a particular customer after the company bagged a contract for two new models in Malaysia.

“Meanwhile, the majority of V.S. Industry’s customers have given positive feedback on their respective outlook, led by more product launches. There is also the possibility of more products being transferred from Mexico to Malaysia by the said customer as it plans to shut down operations there. The strong earnings recovery is only expected to kick in by the second half,” says PublicInvest Research, which is maintaining its “trading buy” call on the stock with an unchanged target price (TP) of RM1.18 based on 15 times FY2026 forecast earnings per share.

To manage its expectations for the year ahead, RHB Research cut its earnings forecast for V.S. Industry’s financial year ending July 31, 2025 (FY2025) by 14% to RM233 million. But it maintained its forecasts for FY2026 and FY2027 as it viewed the Johor-based player’s job order prospects positively and foresees a recovery in demand and product launches lined up by key customers.

Meanwhile, there has been considerable scrutiny of Cape EMS Bhd’s prospects as the ACE Market-listed player’s share price was nearly halved to 41 sen in the first week of August following a slew of margin calls suffered by its group CEO and managing director Christina Tee. Her stake was slashed by more than a third from 38.4% to 11.1%, purportedly on the back of financial misguidance by the management to some institutional investors, leading to the selldown.

Cape EMS’ performance did not help its share price as it slipped into the red with a headline net loss of RM19 million in the third quarter ended Sept 30, 2024 (3Q2024), impacted by a RM12.6 million unrealised forex loss, RM4 million amortisation of intangible asset and RM2.2 million impairment on trade receivables. Following the results announcement, the counter sank further to 36 sen from 39 sen.

Cape EMS’ beaten down share price has reportedly drawn investment interest from the likes of Ekuiti Nasional Bhd (Ekuinas), which is believed to be mulling over a stake in the Johor-based EMS player.

In addition, businessman Chung Chee Yang started to accumulate Cape EMS shares on the open market and emerged as a substantial shareholder on Nov 13. As at Dec 10, he increased his stake to 8.3%, or 82 million shares, in the company.

Meanwhile, the Employees Provident Fund, which had emerged as a substantial shareholder on July 26, ceased to be one on Aug 15 after selling a portion of its shares.

Another player attracting interest is Penang-based EMS provider NationGate because of its improved bottom line. For the third quarter ended Sept 30, 2024, it saw a net profit of RM46.6 million on the back of RM1.4 billion in turnover, primarily driven by its data computing segment.

Interestingly, there have been concerns about the company’s future profitability as its net profit was heavily influenced by unrealised forex gains amounting to RM76.2 million for the quarter and RM142 million for the first nine months of the year. Had it not been for the forex gains, the company’s core operations might have faced a net loss.

Nevertheless, Kenanga Research believes the group is well positioned to benefit from the strong artificial intelligence (AI) server demand in the data computing segment and is poised for a recovery in its networking and telco divisions in FY2025. The research house has an “outperform call” on the counter with a TP of RM2.30 based on an unchanged FY2025F PER of 25 times.

“This represents a 30% premium to peers’ forward mean, justified by the group’s favourable exposure to the fast-growing networking product segment and its advanced capabilities, which yield better margins as well as enhance customer stickiness,” it says.

EMS players part of tech up cycle

Analysts have predicted for some time that the technology sector is poised for an up cycle starting in the second half of this year.

AmInvestment Bank Research said in a Dec 4 report that “interest will return to Malaysia Tech in 2025, given its relatively low holdings in investor portfolios, reasonable valuations and still positive long-term structural prospects”.

“While there is value, we advise investors to be selective, as high earnings expectations remain a key risk. We favour stocks with earnings certainty (via secured orders) or those that have been oversold, provided they have a clear strategy and long-term vision. The conclusion of the US elections and prospects of higher tariffs are a structural tailwind for Malaysia as local companies can benefit from supply chain relocation activities,” said the research house, which is “overweight” on the technology sector.

It has “buy” calls on ViTrox Corp Bhd, V.S. Industry, Malaysian Pacific Industries Bhd and Greatech Technology Bhd, with TPs of RM4.75, RM1.45 (from RM1.05), RM33.10 (from RM38) and RM2.60 (from RM5.53) respectively. It has “hold” calls for Pentamaster Corp Bhd and Inari Amertron Bhd, with TPs of RM3.50 and RM2.40 (from RM4.36) respectively.

As for the susceptibility of consumer-centric EMS companies to a potential economic slowdown on the back of weaker consumer sentiment, Choo says: “Our base case scenario is that with [US president-elect Donald] Trump in office, there will not be a US recession in 2025 and consumer demand should remain sustained. We are positive on the EMS sector due to its potential business recovery, corrected share price and the added factor of taking market share from China and Taiwan contractors.” 

Source: The Edge Malaysia

EMS players navigate uphill path despite tech up cycle

Eco World Development Group Bhd’s (EcoWorld) new collaboration with SD Guthrie Bhd and NS Corp Sdn Bhd to jointly develop an industrial park in Negri Sembilan is a “win-win” deal for all parties involved, according to analysts.

The 1,166-acre site, located in Bukit Pelandok within the Malaysian Vision Valley 2.0 and close to Kuala Lumpur International Airport, has an estimated gross development value of RM2.9bil.

“We view this positively as the strategic partnership leverages the unique strengths of both SD Guthrie and EcoWorld, driving mutual growth and long-term value creation,” said Maybank Investment Bank (Maybank IB) Research in a report.

As one of the largest landowners in Malaysia, the research house noted that SD Guthrie brings valuable “hardware” in the form of its extensive landbank.

Meanwhile, EcoWorld, as a leading property developer in the country with a strong brand presence and proven track record, plays a crucial role in unlocking the full potential of this landbank.

Maybank IB Research believed that EcoWorld’s strong branding will significantly enhance the value of the property, making it more appealing and marketable to potential business owners and investors.

Pending further details, Maybank IB Research maintained its earnings forecasts for EcoWorld.

Maybank IB Research has a “buy” call on EcoWorld with an unchanged target price (TP) of RM2.25 per share.

MIDF Research, in a note to clients yesterday, stated it was neutral to positive on the collaboration, which will expand EcoWorld’s industrial property development portfolio.

It highlighted that the property developer has been looking to expand its industrial property division due to its expertise in this segment and high demand for industrial properties in Malaysia.

The research house maintained a “neutral” call on the stock with an unchanged TP of RM2.01 per share. “We think the positives have been largely priced in as EcoWorld is trading above its latest net tangible asset value of RM1.66 per share,” it said.

Source: The Star

EcoWorld’s industrial park deal a ‘win-win’ for all

Penang’s strategic position as a global technology hub, coupled with its strong manufacturing capabilities and forward-thinking policies, positions the state as a key player in driving Malaysia’s high-tech export growth to the United States.

To explore strategies for navigating US trade dynamics and seizing market opportunities, the Global Navigator Series Penang will be held on Jan 7, 2025, at St Giles Wembley, Penang.

Themed “Expanding Horizons: Strategies for US Export Growth,” the event will feature a fireside chat between Standard Chartered Malaysia chief executive officer Mak Joon Nien and Penang Chief Minister Chow Kon Yeow, followed by a panel session and closing presentation.

The aim is to empower Malaysian exporters with the knowledge needed to make informed decisions and achieve sustained success in the competitive US market.

During the fireside chat, Chow will explore Penang’s unique advantages for exporters, sharing the state’s strategic vision and long-term plans to maintain its leadership in high-tech exports.

He will highlight Penang’s strengths in advanced manufacturing, research and development, and its ability to produce high-value products tailored for the United States market.

The conversation will further delve into the Penang government’s initiatives to enhance infrastructure, upskill talent and expand industrial zones to bolster its export ecosystem.

Additionally, untapped sectors such as halal and kosher products, professional services, and advanced medical technology – industries with significant growth potential for exporters – will be discussed.

Chow has been instrumental in driving the state’s progress, with a strong focus on industrial and infrastructure development.

His vision centres on fostering a robust ecosystem that empowers businesses and promotes sustainable economic growth.

A seasoned banker with extensive experience in investment and corporate banking, Mak brings over 27 years of esteemed service with Standard Chartered to the table.

In a separate session, participants will hear from Jonathan Koh, an economist and foreign-exchange (forex) analyst in Asia for Standard Chartered Singapore.

His presentation, titled “US & Malaysia’s Macroeconomic Outlook 2025”, will provide valuable insights into the evolving economic landscape and its potential impact on trade, investments and forex markets in the year ahead.

Attendees can expect actionable takeaways to navigate the complexities of global economic shifts effectively.

Join the Global Navigator Series

An initiative by the Export Excellence Awards (EEA) 2024, the Global Navigator Series will be held on Jan 7, 2025 at 2pm.

It is open to businesses. To register, visit this page.

The EEA 2024 is organised by Star Media Group Bhd, in partnership with Standard Chartered Malaysia, with PKT Logistics Group as a co-sponsor, and Malaysia External Trade Development Corp as patron.

The programme is audited by BDO.

Submissions for the awards are open now until Feb 13, 2025.

Source: The Star

Penang drives high-tech export growth to the US

The spent catalyst recycling facility, which is the first of its kind in Southeast Asia at the Gebeng Industrial Park here, will commence operations in early 2027.

The state-of-the-art metal recovery centre will be built by Toyo Engineering & Construction Sdn Bhd (Toyo-Malaysia), a subsidiary of Toyo Engineering Corporation. The project was awarded by Taiyo Koko Malaysia Sdn Bhd (Taiyo Koko), a subsidiary of Taiyo Koko Co Ltd, Japan.

Taiyo Koko Co Ltd president Kazufumi Suzuki described the strategic collaboration to set up the facility here as a significant milestone in advancing environmental sustainability and fostering a circular economy in Malaysia.

The facility will focus on the efficient recycling of spent catalysts, which are a waste material produced from the cracking of petroleum in oil refineries. The project, which is our first overseas expansion, aims to significantly reduce the environmental impact of spent catalyst disposal by recovering valuable metals and reducing waste.

Apart from enhancing recycling capabilities, the facility aspires to set a new benchmark for environmental stewardship and sustainable practices, driving innovation and responsibility in the recycling sector,” he said during the groundbreaking ceremony of the new facility at a hotel here yesterdaytoday.

Pahang Investment, Industries, Science, Technology and Innovation Committee chairman Datuk Mohamad Nizar Najib officiated at the eventfacility’s groundbreaking  here.

Meanwhile, Suzuki said the engineering, procurement, and construction (EPC) contract for the facility was signed on Nov 27 this year and followed by the groundbreaking ceremony yesterdaytoday (Dec 18).

“Toyo-Malaysia has always been supporting Taiyo Koko to realise their first overseas expansions over the years since its conceptual planning phase. The commercial operation for the facility in Gebeng facility is targeted in the first quarter of 2027.” he said.

Founded in 1949, Suzuki said Taiyo Koko has displayed a continuous growth in the manufacturing of rare metals and rare earths since the commercialisation of its proprietary technology to recover rare metals from spent catalysts across Japan in 1978.

“The company’s innovative processes enable the extraction and recovery of molybdenum and vanadium from heavy fuel desulfurization desulfurisation catalysts used at oil refineries.

“Taiyo Koko’s recycle system does not only safeguard the environment but also ensures a stable supply of precious metals through advanced recovery and purification technologies,”  he said.

“The approach supports resource conservation and enhances supply chain stability on a global scale. The facility here demonstrates its commitment in sharing its expertise and driving sustainable development internationally.” he said.

Toyo-Malaysia, a prominent engineering firm, is dedicated to executing projects that adhere to the highest standards of safety, quality, and sustainability.

Meanwhile, Nizar expressed his excitement with Taiyo Koko for selecting Pahang to house their spent catalyst recycling facility that would transform waste streams into sustainable solutions.

“We welcome the investment from Japan, which will not only ensure economic spillovers but create job opportunities and pave the way for more Japanese investors to set up businesses in Pahang,” he said.

Source: NST

Taiyo Koko to build metal recovery centre

Xindeco IoT Malaysia Sdn Bhd has inaugurated its cutting-edge radio frequency identification (RFID) manufacturing facility in Nilai, Negeri Sembilan, which stands as the largest RFID production hub in Southeast Asia.

In a joint statement, the Malaysian Investment Development Authority (MIDA) and Xindeco IoT said the strategic investment positions Malaysia as a key player in the global RFID technology landscape.

They said the 30,000-square-foot plant, located in the Arab Malaysian Industrial Park, is capable of producing one billion RFID tags annually.

“These solution will serve various sectors, including retail, healthcare, logistics, and supply chain management across the Asia Pacic region,” they said.

MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the investment by Xindeco IoT demonstrates the confidence global companies have in Malaysia’s technological capabilities and its skilled workforce.

“This new RFID manufacturing facility strengthens Malaysia’s position in the global supply chain and creates high-value jobs for Malaysians.

“The facility aligns perfectly with our New Industrial Master Plan (NIMP) 2030, supporting our goal to become a regional technology leader,” he said.

Xindeco IoT is a subsidiary of Chinese tech (technology) giant Xiamen Xindeco IoT Technology Co Ltd.

Source: Bernama

Xindeco IoT inaugurates RFID manufacturing plant in Nilai