Diplomatic Sphere | Business | Automotive | Green Technology | Petrochemical
TAPiO Newsletter – December 2018 Issue
“We See Huge Business Opportunities Lies in Malaysia” – Nordic Countries
Malaysia is being seen as prime gateway to the Asean by Nordic Countries with its supportive business environment, reliable logistics, facilities, and access to resources. Swedish Ambassador to Malaysia, His Excellency Dag Juhlin-Dannfelt said that many Swedish brands have long presence in Malaysia because it has been living up to the standard of the companies and attractive. Besides that, Norwegian Ambassador to Malaysia, Gunn Jorid Roset agreed that Malaysia has a reputable market with good logistics that makes many big Norwegian companies in energy sector and O&G sector decided to keep a strong foothold in Malaysia. In addition, there are various Danish investments in Malaysia which is more concentrated on pharmaceutical sector and many Finnish firms are looking at Malaysia as their regional hub for Asean especially in ICT sector. Malaysia is attractive for investment destination because of the predictability for business partners regardless who governed added Jesper Vahr, Denmark Ambassador to Malaysia.
Malaysia Will Have New Defence Equipment and Technologies From Japan
Japan is willing to offer new defence equipment and technologies to Malaysia as part of enhanced bilateral security ties. This includes aircraft, vessels, radar, and other defence equipment and technology from Japan said Japanese Ambassador to Malaysia, His Excellency Dr. Makio Miyagawa. The MoU that was signed in September had intensified the defence and security of both country and strengthened the agreement that was signed in Kuala Lumpur in April. The MoU provided a structure for expanded collaboration across a range of activities, including defence equipment and technologies, military-to-military exchanges, joint maritime security and disaster relief operations.
Hungary Is Looking For Potential Business Opportunities To Invest In Malaysia
Hungary hopes next month’s signing of the Partnership Cooperation Agreement (PCA) between Malaysia and the European Union (EU) will hasten the Malaysia-EU Free Trade Agreement (FTA) negotiations. The Ambassador said this agreement would be crucial support for the better basis of ASEAN-EU FTA which is considered as a great phase on advancing. This will also be used to enhance more bilateral and trade agreements between the two regions, unambiguously with Hungary currently eyeing potential business opportunities in few main areas for its future investments such as in the field of education, water management and SMEs.
France and Malaysia Collaborated for the Future of Research Project
France and Malaysia have agreed to create a joint funding programme for the innovative development and high-level joint research projects, known as Hubert Curien Partnership France-Malaysia Hibiscus (PHC Hibiscus). Higher Education and Research Cooperation is a major component of the French diplomacy. The research cooperation has advanced for the last 35 years, it involves over 60 researchers from each country working with 20 Malaysian universities and 50 French universities or laboratories from prestigious French research institutions. The aims is to support research projects which will be carried out jointly by Malaysian and French teams, predominantly by facilitating knowledge exchanges between researchers, lecturers, post-doctoral and PhD students of both countries.
Sabah’s many resources make it a land of opportunities for investments in new industrial growth areas, said Deputy Minister of International, Trade and Industry Minister, Dr Ong Kian Ming. As Malaysia has different regions which are unique and have their advantages but then Sabah has a copious of natural and agricultural properties which makes it an ideal location for industrial development. In order to attract best quality investments that the government wants, Sabah needs to have good industrial parks to facilitate the necessities of these industries. Since Sabah has the required facilities, it is undoubtedly considered as one of Malaysia’s destinations for future investment.
“Great Place for Doing Business is in Malaysia” – World Bank Group’s Economist
Malaysia is in a relatively good position amid an increasingly challenging economic outlook with heightened trade tensions and a higher capital outflow back to the US, said the World Bank Group’s lead economist for macroeconomics, trade and investment, Richard Record. It is in a good condition as Malaysia is diversified across markets and products in terms of manufacturers, non-manufacturers, commodities and non-commodities. While there is a trade war going on between the US and China, the world’s two largest economies, there is concerns that the trade war might spread over to a slowdown the global investment and demand. But Malaysia could be in profit from the diversion of trade and investment from the mounting tension. Considering Malaysia, it has some benefits compared to others as it is situated in a good location, the skill sets in the country as well as its natural resources that help expand the economy.
Penang E&E Companies Has An Advantage Regarding The Demand For Electric Components
Electrical and electronic (E&E) companies in Penang have an added advantage as the demand for electric components is on the rise. This is due to the Internet of Things (IoT), Industry 4.0, Big Data, Artificial Intelligence and more which require more electric components. According to InvestPenang Director,Datuk Seri Lee Kah Choon, he stated that with the current success, there will be continuous upgrade in terms of technologyand investment in its resources, for both its human resource and machinery.
RM210 Million Will Be Allocated For Migration Of 500 SMEs To Industry 4.0 – MITI
The International Trade and Industry Ministry (MITI) will introduce by the first quarter of 2019 the Readiness Assessment criteria for the migration of 500 Small and Medium Enterprises (SMEs) to industry 4.0 platform. By identifying these 500 SMEs, the Minister of The International Trade and Industry Ministry, said a sum of RM210mil would be allocated for these SMEs to carry out the Readiness Assessment to migrate to industry 4.0 platforms via Malaysia Productivity Corp. In addition to that, another RM7.12bil would be allocated for various initiatives to support Industry 4.0 and the Digitalisation.
RM41.6b For Manufacturing Projects, New Government Eager On Industry 4.0
Malaysia’s business investments remained resilient in the face of a trade war between the US and China, said Minister of International Trade and Industry (MITI) Datuk Darell. The New Malaysian government has approved RM41.6 billion to invest in manufacturing developments from May until September. Micron Technology, an American semiconductor industry which produces many forms of semiconductor devices, which is now have a new facility in Penang that will help to reinforce the local Electrical and Electronics (E&E) ecosystem as it will integrate SSD (Solid-State Drive) for manufacturing automation and Industry 4.0 manufacturing progressions in Malaysia.
Sarawak Will Start A New Year With The First-Ever Electric Bus
Sarawak’s first electric bus service is set to commence operations in Kuching next year. The service will begin with a pilot project, initiated by local company Henz Pasific and its partner, Chinese manufacturer Zhejiang CRRC Electric Vehicle. The preliminary arrangement will comprise a 14 km-long pilot route covering areas such as Satok, Heritage Trail and iCOM Square. According to Henz Pasific Managing Director, Henry Lai, the project is scheduled to commence early next year. In addition to that, the service will be free to all riders for the first three months. It is an important step towards electrification which is the state government’s focus.
“We Aim For The Winner” – Leong Wai Ming, CFO, Pecca Group Bhd
Pecca Group Bhd plans to participate in the 3rd National Car Project but is adopting a wait-and-see approach as the car manufacturer has not been announced yet. Group CFO Leong Wai Ming said Pecca will approach the winning company to make a proposal for seat designs. It is stated by some reports that the government has received over 20 proposals for the 3rd National Car from private and also government sectors. The revision of the National Automotive Policy which is to be done by the government will consist of the 3rd National Car Project development and set to be unveiled during the first quarter of 2019.
PLUS Is Eager To Turn Malaysia Into Green Nation, Five Solar EV Charge Will Be Install
Five solar-powered electric vehicle (EV) charging stations will be installed along the North-South Expressway (NSE) by early 2020. There are ongoing discussions which are ongoing in order to set up the solar-powered EV charging stations, which will cost RM450,000 each, in places such as the Pagoh, Tapah, Dengkil, Gunung Semanggol and Seremban rest and service areas. PLUS Malaysia Bhd Managing Director stated that there are currently 249 charging stations with some 150 of them located in the Klang Valley and there will be more charging stations if needed.
BASF (Malaysia) Sdn Bhd’s industrial facility in Bukit Jelutong Business and Technology Centre in Shah Alam, Selangor is up for sale following a strategic evaluation of the 12-acre site. Industry players have estimated the sale may net BASF up to RM150 million. BASF has assessed its strategic possibilities of its Bukit Jelutong site and decided to offer it up for sale. The decision is that BASF and BPS will displace to a strategic office site so as to meet the needs of the businesses and their employees in the long term.
Murphy Oil Corporation To Sell Its Malaysian Oil And Gas Assets
Murphy Oil Corporation is in talks to sell its Malaysian oil and gas assets after an unsolicited bid that could fetch between $2 billion to $3 billion. The independent U.S. oil-gas exploration and production company has appointed banks to look for potential buyers and the matter is said to be confidential. Murphy has been in Malaysia since 1999 and has a partnership with Malaysian state-owned, Petronas. There are suggestions that Spanish oil major Repsol, whose presence in Malaysia is focused on its upstream business, or other worldwide investors could be possible buyers for Murphy’s assets.
Malaysia Company Signed Long Term Agreement with Saudi Aramco
During Saudi Aramco’s In‐Kingdom Total Value Add (IKTVA) Annual Forum in Saudi Arabia on 26 November 2018, one of the subsidiary of Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) has signed a long-term agreement with Saudi Aramco. The agreement is valid for 6 years and can be extended for another six years. It covers transportation and installation of offshore facilities, engineering, procurement, fabrication, and other works which will be executed within the waters offshore Saudi Arabia. Wan Mashitah Wan Abdullah Sani, Managing Director and Chief Executive Officer of MHB, said their entry into Kingdom of Saudi Arabia marks a significant milestone for the group’s heavy engineering segment as they pursue growth in line with the strategy to expand portfolio in the international market. This collaboration is another solid step to drive delivering the best to customers.