TAPiO Newsletter – May 2019 Issue
DIPLOMATIC SPHERE
Orientation Towards Transparency Strengthen Malaysia-France Bilateral Ties
The orientation of the new Malaysian government towards transparency, anti-corruption and a good economic environment, will lead to expand bilateral relations between Malaysia and France. Ambassador of France to Malaysia His Excellency Frédéric LAPLANCHE stated that the driven of transparency would encourage French investors to come to Malaysia to investing. There was a positive and dynamic figure for the past few months as French’s new investments into Malaysia has gone into different sectors. Besides, he added that this clearly demonstrates the French government’s trust in Malaysia and its commitment to the close relationship between Paris and Kuala Lumpur in the maritime and aerospace sectors. The big project’s announcement including Dassault Aviation’s expansion to Malaysia through the acquisition of ExecuJet Malaysia’s maintenance, repair and overhaul (MRO) facility at Subang Airport.
Malaysia And Japan Cooperate On Smart Manufacturing.
Malaysia and Japan increase collaborations in smart manufacturing to assist Malaysian manufacturers, especially small and medium enterprises (SMEs) in adopting smart manufacturing technologies. According to Deputy International Trade and Industry Minister Dr. Ong Kian Ming, the collaboration is aimed to promote Malaysia manufacturers to learn from Japanese companies on the adoption of Industry 4.0 technologies through lean management. Three focus areas have been identified which are competency development, retrofitting projects, and industry engagement through sharing sessions.
Perak Has A Good Chance Of Setting Up Japan’s Tsukuba University Branch.
According to Chief Minister of Perak Datuk Seri Ahmad Faizal Azumu, Perak would be prospects to be the first international branch campus of Tsukuba University, a Japan’s leading technical and scientific university. Faizal said that it has not been finalised but they have discussed several counter-offers with them, including a joint venture to set up the branch in Perak to allow them to lower the opening costs. He also said that the establishment of Tsukuba University would have a great impact on the development of human capital in the field of Science, Technology, Engineering and Mathematics (Stem) and Technical Education and Vocational Training (TVET) for the country.
Malaysia Works With Indonesia To Defend Palm Oil.
According to International Trade and Industry Minister Datuk Darell Leiking, Malaysia and Indonesia taking joint action to deal with the European palm oil ban. As Malaysia aware of the negative effect brought by the palm oil ban thus Malaysia have to work with Indonesia. Any reaction by Indonesia will affect the countries boycotting palm oil. He mentioned that only France blocks the use of palm oil, but is not complete while the Netherlands is one of the largest importers in European countries. However, Malaysia would not fight back with the countries that are blocking the palm oil. France and the EU as a whole are gradually withdrawing the incentives for palm oil biodiesel. It was because the calculation showed that there is a problem of balance and carbon impact.
Germany Assures To Not Ban Malaysian Palm Oil.
According to the German Ambassador to Malaysia Nikolaus Graf Lambsdorff, Germany will not ban palm oil trade from Malaysia since it was cheap and sustainable. Lambsdorff said that Malaysia should reduce the dependency on palm oil and may stop using it in the next few years as many other European countries are following suit.
Cuba Seeks Barter Trade With Malaysia
According to Cuban Ambassador to Malaysia Ibete Fernandez Hernandez, Cuba would like to establish direct trade with Malaysia, including barter trade, to ease the current shortage of supplies on the Caribbean island nation. She said the system will help Cuba in coping with food rationing due to the escalation and tightening of the trade embargo imposed by the United States. She stated that both countries can collaborate such as doing exchanges through shipments, which is the best approach to dealing difficult times. She also hoping Malaysia will continue to support Cuba in combating the embargo.
GREENTECH
Panasonic Sells Malaysia’s Subsidiary To GS-Solar China
Panasonic Corporation announced that it has reached a collaboration and acquisition agreement with GS-Solar (China) Company Limited, a thin film solar manufacturer. GS-Solar (China) will acquire Panasonic’s solar manufacturing subsidiary, Panasonic Energy Malaysia while establishing a new company with Panasonic. GS-Solar would hold 90% of share and Panasonic owning the remaining 10% in the company. Both companies will jointly operate and invest in this new company in Japan, focused on the research and development of Health Information Technology (HIT). This new collaboration may further integrate the HEMS, PV modules, storage batteries, ECO Cute heat pump systems, and Panasonic’s electric vehicle charging solutions, and expand the scope of cooperation with GS-Solar. Although it is selling its Malaysia unit, Panasonic will maintain its solar cell production bases in Japan and the United States.
BUSINESS
Feilo Sylvania And Air Liquide Grooming Local Talents.
Two multinational companies Feilo Sylvania, a manufacturer of lighting products; and Air Liquide, a world leader in industrial gases, technologies and services with its regional hubs in Malaysia are committed to investing in upskilling local talent to help them achieve global competitiveness and prepare for the technological advancement of Industry 4.0. They said they are grooming local talent to equip them with a level playing field with their international counterparts especially in the area of digital technology and automation. Feilo Sylvania Regional General Manager for Southeast Asia, Mr. Walter Hiew stated that Feilo will continue to collaborate with the talent ecosystem, academia and related parties to build and grow Malaysian talent capabilities to face new challenges ahead when Feilo grow investment in this region. Both companies said that one of the main reasons they choose Malaysia as their regional services hubs is because Malaysia has a highly skilled talent pool.
Malaysia Remained The Favourite Investment Destination For French Companies.
During the Malaysian-French Chamber of Commerce and Industry (CCIFM) Gala Night 2019 on 29 April, CCIFM stated that Malaysia remained the favourite and competitive investment destination for French companies in the Asia-Pacific region. There are over 500 French companies in Malaysia with a combined turnover of RM20 billion and have more than 30,000 employees. A tripartite memorandum of understanding (MoU) between CCIFM, TalentCorp and InvestKL was also exchanged at the event.
Oracle Malaysia Launches Cloud Solution Hub
Oracle Malaysia to launch the Oracle Cloud Solution Hub in Kuala Lumpur benefits to Asia companies to access the cloud technologies. Oracle Malaysia has been actively recruiting to meet nearly 150 new allocations for experienced and well-trained cloud consultants, especially for this new facility. The cloud solution hub will assist all organisations specifically small and medium enterprises (SMEs) on the way to harness emerging technologies such as blockchain, Internet of Things (IoT), machine learning, and etc. to drive business value and growth. The hub also developed to include a regional technical cloud centre that focusing deliver Industry 4.0 solutions to enable companies to adopt innovative and customised applications. Now, Oracle works with InvestKL to assist local companies in digital transformation strategies through Oracle’s latest technologies.
ECRL To Boost Activities At Kuantan Port.
According to Malaysia-China Chamber of Commerce chairman Datuk Andy Chiew Yoke Theng, the East Coast Rail Link (ECRL) project will boost the cargo transportation between Kuantan Port, Pahang and Port Klang, Selangor. He said that Kuantan Port is already in a good position as it has been upgraded to a deep sea terminal and a free trade zone as well as near to the Malaysia-China Kuantan Industrial Park (MCKIP) which would attract more investors to MCKIP. Besides, the completion of the ECRL project will enhance Kuantan’s image, particularly Kota SAS which will become the administrative centre of the state. Pahang is going towards a developed state by having an effective transport system.
Penang Attracts RM129.1 Billion Investment As Of 2018.
In 2018, Penang has attracted RM129.1 billion investments in the manufacturing sector and has consistently ranked among the top investment destinations in the country for the past 50 years. Malaysian Investment Development Authority (MIDA) deputy chief executive officer Arham Abdul Rahman stated that the agency had approved 4,084 manufacturing projects which created more than 516,600 jobs, mainly in electrical and electronic products, basic metal products, scientific and measuring equipment, as well as machinery and transport equipment. He also said MIDA is currently conducting programmes introduced by the Ministry of International Trade and Industry to facilitate Industry 4.0 such as readiness assessment programme, loan guarantee programmes, and the Industry4WRD vendor development programmes.
M&E exports are expected to reach RM43 billion by 2020.
According to Malaysian International Trade and Industry (MITI) Deputy Minister Dr Ong Kian Ming, Malaysia’s mechanical and electrical (M&E) exports are growing steadily with a compound annual growth rate of 4.11% and expected to reach RM43 billion by 2020. He said the total imports (RM73.6 million) is higher than exports (RM40.6 billion) in this sector thus export is need to be increased. He said MITI and MIDA should encourage local companies to venture the sector and bring more M&E companies to enter into Malaysia. He also urges local players to embrace the manufacturing technologies, registers with Industry 4WRD Readiness Assessment programme, and find opportunities from exhibitions. The government allocated RM15 million to assist 500 companies in the manufacturing sector to undertake the Industry 4WRD RA and about 300 have applied currently.
MOBILITY / AUTOMOTIVE
Minister Datuk Seri Mohd Redzuan Yusof: Track To Attain Targets.
The three main targets that Minister of Entrepreneur Development in the Ministry of Entrepreneur Development (MED) Datuk Seri Mohd Redzuan Yusof focussed on were to strengthen the halal industry, reconceptualise the third national car and advance the aerospace industry. To strengthen the halal industry, the government are planning to unify halal logos worldwide to streamline the certification process. As for reconceptualising the third national car, the government was only in a position to be a catalyst to open the market for the private sector to invest. In advancing the aerospace industry, according to the ministry, even though the flying cars seem like jokes to the public but it would be a reality in the near future as the government need to think out of the box.
Volkswagen Collaboration With Infineon For Electric Vehicles.
Volkswagen Group’s new partner Infineon Technologies would be supplier for ‘Future Automotive Supply Tracks’. The program aims to develop close cooperation in key future fields. Infineon is the market leader of semiconductors for electro-mobility as its power modules control the electric drive in Volkswagen’s modular electric drive matrix MEB which is the largest electrification platform in the industry. President of the automotive division of Infineon Peter Schiefer said the cooperation with Volkswagen could identify requirements early and create innovations that increase the range of electric vehicles or reduce charging times. Infineon is expanding its production capacities at its existing plants in Dresden, Germany, and Kulim, in Malaysia to meet the growing demand for power electronics.
Big Blue Taxi Facilities Is Expected To Bring Electric Taxis To Malaysia By August.
Big Blue Taxi Facilities, a local taxi company will launch 100 all-electric taxis in early July or August 2019. The company founder Datuk Shamsubahrin Ismail stated that the project is extended to comply with several technical factors such as obtaining Vehicle Type Approval (VTA) thus they have to coordinate with taxi creators, manufacturers and government. He also said Big Blue Taxi is in the process of signing a contract with local companies for the electric powered-cabs installation process. If successful, Big Blue Taxi is expected to produce the first 5,000 units.
Fiat Chrysler Presents A Plan For Merger With Renault.
Italian-US auto giant Fiat Chrysler presented a merger proposal to France’s Renault on Monday which would create the world’s third-largest automaker. Fiat Chrysler delivered a non-binding letter to Renault, proposing to merge their respective businesses into a 50/50 merger. Both companies would discuss the offer on Monday. Fiat Chrysler said the merger would create “a pre-eminent global automotive group”, with annual sales of 8.7 million vehicles. The brand portfolio of both companies would be broad and complementary as well as provide full market coverage, from luxury to mainstream. The merger will create an estimated annual operating rate synergies of over 5 billion euros or US$5.6 billion on top of the existing Renault-Nissan-Mitsubishi alliance.
PETROCHEMICAL
Malaysia Investments In Canada Valued
According to Julia G. Bentley, the Canada High Commissioner to Malaysia, energy is an important economic sector in Canada, the recent investment by Petroliam National Berhad (Petronas) had shown the confidence of Malaysian company towards Canada. Last October, Petronas decided to invest in the Canadian LNG terminal project in Kitimat, British Columbia, which Malaysia is a valued investor for Canada. Petronas has made the largest private investment in Canadian history by holding a 25% interest in the LNG project. It is an ambitious project, which has been the subject of long negotiations. Besides, Bentley’s goal is to reposition Petronas as one of North America’s leading natural gas exporters. Today, Malaysia is Canada’s fourth largest trading partner in ASEAN, with bilateral merchandise trade of C$3.76 billion in 2018. The High Commissioner also stated that Canada is committed to strengthening its ties with Malaysia through close collaboration in areas security, education and social responsibility. She also supported Malaysia’s efforts to strengthen the rule of law and good governance, improve human rights and the empowerment of women and girls.
Phase Three Pengerang Deepwater Terminal Start Construction.
Dialog Group Berhad has started building the storage terminal and jetty for phase three of the Pengerang Deepwater Terminals. As in line with its development plans for phase three, Pengerang Terminals (Five) Sdn. Bhd. (PT5) had signed a long-term storage agreement with BP Singapore Pte Ltd. Dialog stated that PT5 will develop, construct and operate storage tanks with a capacity of 430,000m3 for clean petroleum products, and provide storage services for BPS as a customer. The expected completion date is in mid-2021. Pengerang Deepwater Terminals Phase three would be designated for the development of more dedicated petroleum and petrochemical storage terminals for medium to long term customers. This will support a variety of downstream operations including refinery and petrochemical plants within the Pengerang Integrated Petroleum Complex.
