Malaysia attracted a record amount of approved investments worth RM306.5 billion in the manufacturing, services and primary sectors in 2021, driven by higher foreign direct investment (FDI) and increased projects in the manufacturing and the electrical and electronics (E&E) sectors, according to the Malaysian Investment Development Authority (MIDA) at its annual media conference on Tuesday (March 8).

In a statement, MIDA said that Malaysia’s FDI of RM208.6 billion accounted for 68.1% of total approved investments, with the remaining 31.9% coming from domestic direct investment (DDI) at RM97.9 billion.

Year-on-year, Malaysia’s FDI was significantly higher by 224.9% from RM64.2 billion in 2020, however, DDI declined marginally by 5.13% from RM103.2 billion the year before.

“The Netherlands (RM78 billion), Singapore (RM47.3 billion), the People’s Republic of China (RM31.3 billion), Austria (RM18.9 billion) and Japan (RM9.9 billion) accounted for 88.9% of total FDI approved in the manufacturing, services and primary sectors.

“Pulau Pinang (RM83.5 billion) recorded the highest investments approved last year, followed by Kedah (RM68.3 billion), Kuala Lumpur (RM37.7 billion), Selangor (RM28.8 billion) and Sarawak (RM25.7 billion).

“These five states contributed 79.6% of total approved investments in 2021,” the statement read.

Officiating the event was Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali, who said the record-breaking approved investments for the manufacturing, services and primary sectors were a 83.1% jump from 2020’s figure.

Azmin added that Malaysia’s RM97.9 billion DDI in 2021 is a signal that local industry players had grown in terms of capabilities and business capacity to be competitive on the global stage.

“Moving forward, I am delighted to share that MIDA has already secured 352 projects in the pipeline with proposed investments of RM39.2 billion for the manufacturing and services sectors.

“These projects will create more than 19,000 new job opportunities for the rakyat,” Azmin said.

Manufacturing sector continues to be mainstay with E&E topping approved investments

Meanwhile, the manufacturing sector led total investments approved in 2021 by recording RM195.1 billion, followed by the services sector and the primary sector at RM94.1 billion and RM17.3 billion respectively.

The manufacturing sector reported a leap in approved investments by 113.7% from RM91.3 billion in 2020, while the services and primary sectors saw improvements of 34.4% and 183.6% from RM70 billion and RM6.1 billion respectively.

Notably, the E&E industry contributed the bulk of the FDI as well as total approved investments within the manufacturing sector by recording RM148 billion for 94 approved projects.

Chief among the E&E industry’s RM148 billion in total approved investments included RM42.2 billion from Risen Solar for the design development and manufacturing of solar modules and solar cells, followed by Intel Electronics’ RM30 billion to produce wafer fabrication and stacked dies in Pulau Pinang, AT&S’ RM8.5 billion to establish design development and manufacturing of integrated circuit substrates in the Kulim Hi-Tech Park, and Infineon Technologies’ RM3.25 billion in Melaka.

MIDA, the country’s investment promotion and development agency, said that Malaysia secured 75 capital-intensive projects valued at RM100 million and above in 2021, which could spur the growth of new advanced manufacturing technologies and produce a highly-skilled workforce.

Meanwhile, the services sector’s 34.4% improvement in 2021 was driven by sub-sectors such as real estate (RM28.8 billion), global establishments (RM19.7 billion), financial services (RM12 billion), utilities (RM9.6 billion), and information and communications (RM8.2 billion).

The bulk of the primary sector’s approved investments were led by the mining sub-sector’s RM17.1 billion or 98.7% amid higher crude oil and natural gas prices, while the plantation and commodities and agriculture sub-sectors brought in RM211.4 million and RM20.5 million respectively.

Source: TheEdgeMarkets.com

Image source: Google Street View

Penang International Airport’s (PIA) multistorey carpark is expected to open to the public sometime this month.

State infrastructure and transport committee chairman Zairil Khir Johari said he was informed by Malaysia Airports Holdings Bhd (MAHB) that the carpark construction was already 99% completed.

The carpark, which has 2,200 bays, was originally slated for completion in May last year and was supposed to have been completed at the end of 2021.

When contacted by TheStar last week, Zairil said: “MAHB expects to open the carpark for public use this month”.

He said the delay was due to MAHB facing issues in its software system installation.

Despite the delay in the carpark’s construction, the building cost remained the same at RM70mil, he said.

It was built on the site of an existing open-air carpark, which had 650 bays.

During construction, parking bays were severely limited and scattered around the airport compound.

The construction of the carpark was part of the PIA expansion project that was mooted in 2008.

However, the expansion work came to a standstill when the government put on hold proposals to build new airports and upgrade existing ones until the aviation sector recovers from the Covid-19 pandemic.

Last Oct 5, Transport Minister Datuk Seri Dr Wee Ka Siong said upgrading works at the PIA, which were being carried out by MAHB, would be postponed, with the government currently resolving several issues including land acquisition.

In a March 27, 2021, report in The Star, then MAHB chief executive officer Datuk Mohd Shukrie Mohd Salleh said based on the Penang Airport Masterplan by MAHB, the PIA would have the capacity to take in 25 million passengers a year in 30 years’ time.

The 87-year-old airport has undergone several infrastructure expansion over the years, the first starting in 1977.

It was fully operational in 1979 with the capacity to accommodate 1.5 million passengers.

It was later expanded and upgraded in 1998 to accommodate 3.5 million passengers, and up to 6.5 million passengers in 2013.

At present, the four-phase PIA expansion project is on hold, pending finalisation of the National Airport Strategic Plan (NASP).

The NASP study on airport development is expected to be completed in 2023 in line with the National Transport Policy.

Source: TheStar.com.my

A global leader in optical solutions, ams Osram (formerly known as Osram), is expanding its presence in Penang. The company has selected a 60-acre site at the Penang International Technology Park (PITP), Batu Kawan, for its expansion.

ams Osram vice-president Glen Brownlie said the company was delighted to announce its partnership with InvestPenang and Penang Development Corporation (PDC) to develop the 60-acre greenfield land in Batu Kawan.

“Here, we will create a state-of-the-art campus. It will be home to cutting edge manufacturing facilities as well as a research and development (R&D) centre to design and develop the next generation of highly integrated optical solutions.

“Our campus will be green and clean, and a flagship facility that is visible to those arriving in Penang through Batu Kawan.

“The development of the site involves significant capital and commitment for both the purchase of the land and the construction costs which will add to the over RM5 billion that we have so far invested in Bayan Lepas over the last five decades.

“More details of the actual investment figures will be available later after we finalise our detailed plan,” he told the media during the investment announcement ceremony at PDC in Bayan Lepas today.

Brownlie said the company was among the first to set up in Penang 50 years ago.

“Along with several other ambitious corporations, we were the pioneers – the Eight Samurais – as we have been affectionately coined, who saw Penang for what it could be.

“Throughout the past five decades, and with the cooperation and support of the Penang government and agencies, we have grown from strength to strength.

“Our success has matched the success of the state. We have grown together,” he said.

Brownlie also said that the company has about 6,000 employees in ams Osram Malaysia.

“Within those 6,000 employees, we have about 350 R&D dedicated engineers, currently based in Bayan Lepas, Penang.

“The goal is to bring R&D into Asia and Malaysia. One of the reasons why we chose to stay and partner with Penang is the talent availability.

“Penang can attract talent and that is something that is not so common. We know that we can bring in talent and we can develop talent.

“We have some very good local universities here. We have the Penang Skills Development Centre (PSDC).

“It is a constant challenge to get talents, but I think the industries in Penang is doing a good job. And the people here are very strong,” he said.

Chief Minister Chow Kon Yeow said the construction of the new ams Osram campus was scheduled to begin in the second quarter of this year and is expected to be completed by the end of next year (2023).

“With ams Osram’s 50 years of presence here, this investment is indeed a strong testimony for Penang as a sustainable location for high-quality investments.

“ams Osram has witnessed, participated and contributed to the state’s industrialisation journey, transforming Penang into the Silicon Valley of the East.

“I believe that our robust industrial ecosystem, strong talent pool and conducive business environment are among the key factors for ams Osram to deepen its roots and widen its product portfolios in Penang,” Chow said.

Chow said the global optoelectronic components market is estimated to reach over US$61 billion by 2028, versus the US$42 billion market size in 2021, according to Vantage Market Research.

“I am glad that the merger between ams and Osram in March 2021 has rendered us with great opportunities to further cement Penang’s position in the global optical solutions market.

“ams Osram’s expansion plan is aligned with the state government’s direction in utilising the resources to their fullest potential.

“Repurposing our existing assets is one of the state’s multi-pronged, long-term strategies to create a positive and sustainable impact to the industry development, high-value job creation and talent attraction,” Chow said.

Approximate location:

Source: Buletin Mutiara

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