Latest news with #MIDA
The Sun
13 hours ago
- Business
- The Sun
Malaysia sharpens its focus on becoming regional aerospace and shipbuilding hub
KUALA LUMPUR: Malaysia is sharpening its focus on becoming a regional aerospace and shipbuilding hub, banking on high value investment, technical capability and geostrategic positioning to elevate its industrial profile over the next decade. Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, chief executive officer of the Malaysian Investment Development Authority (MIDA), said the country is well positioned to serve as a competitive ASEAN aerospace base, driven by its strength in engineering, maintenance services and systems integration. 'At MIDA, our strategy hinges on high-quality investments, fostering local global partnerships and advancing key enablers such as industrial digitalisation and sustainability,' he said in an interview with Bernama. To date, Malaysia's aerospace sector has secured RM26 billion in approved investments, with more than 18,000 jobs generated, affirming the nation's growing significance in the regional aerospace value chain. In 2024 and the first quarter of 2025, the sector attracted RM1.5 billion spproved investments, of which 71.3 per cent was from foreign sources, with the remainder driven by domestic capital. These projects are expected to create more than 550 skilled jobs, primarily in aerospace manufacturing and maintenance, repair, and overhaul (MRO) services, particularly among Tier 1 and Tier 2 suppliers. Malaysia already hosts Boeing's only wholly owned manufacturing facility in Southeast Asia, Boeing Composites Malaysia (BCM), which produces composite parts for all Boeing commercial aircraft. President of Boeing Southeast Asia, Penny Burtt regards Malaysia as a valued partner across Boeing's commercial aviation, defence and services businesses. She said Boeing's efforts in Malaysia include advancing aviation safety, supporting sustainability initiatives, strengthening the supply chain, engaging the community and nurturing the aerospace workforce of the future. 'Boeing's 78-year presence in Malaysia is a testimony to our longstanding commitment to the country and the broader Southeast Asia region. BCM in Kedah, Boeing's first wholly owned manufacturing facility in Southeast Asia, taps the country's growing capabilities and talented workforce. 'Today, with all-Malaysian employees, BCM supplies composite products and subassemblies for all Boeing commercial airplanes,' she said. Strategic Shift to Maritime While aerospace remains the headline, Sikh Shamsul said Malaysia's ambitions extend offshore, while pointing to the shipbuilding and ship repair (SBSR) sector as an emerging pillar, underpinned by targeted investment and sustainability mandates. 'Malaysia should always remain vigilant of rising competition from lower cost yards in neighbouring economies such as Vietnam and Indonesia,' he said, adding that cost competitiveness alone will not secure the country's long-term standing. Instead, he said, Malaysia should start focusing on reducing reliance on foreign automation tools, by approaching local robotic manufacturing in Malaysia that could build a whole new automated system integration to improve productivity in the SBSR manufacturing landscape. Muhibbah Engineering (M) Bhd group managing director Mac Ngan Boon said Malaysia's geography gives the company a natural edge - over 4,600 kilometres of coastline and the domestic needs for various vessel and strategies. 'Innovation is central to our operations. We have adopted advanced technologies such as computer numerical control (CNC) laser cutting, virtual ship prototyping, and real-time simulations. These tools improve design precision, reduce production costs and enhance overall efficiency. 'We are also taking proactive steps towards sustainability, including exploring green vessel designs powered by solar and electric energy. These initiatives reflect our long-term commitment to building vessels that meet both market and environmental demands,' he said. Looking ahead, he said the group's upcoming Kuantan Maritime Hub will be a game-changer — featuring a larger shipyard, defence and training facilities, as well as maritime partners and vendors. 'This is part of our long-term strategy to strengthen the maritime ecosystem and position Malaysia as a future leader in the sector. 'We also aspire for Malaysia to place strong emphasis on developing the entire maritime industry — from establishing dedicated maritime institutes to cultivating the necessary talent and building a robust vendor and supply chain network' he said. Flagship Maritime Developments Taking Shape Malaysia is developing flagship projects such as Lumut Maritime Industrial City, Kuala Linggi International Port and Kuantan Maritime Hub to transition its maritime sector from traditional shipbuilding to advanced technologically integrated manufacturing and logistics, aiming to boost competitiveness, create jobs and foster sustainable practices. To date, MIDA has approved RM1 billion in investments for the SBSR sector. In the first quarter of 2025, the sector attracted an additional RM574.8 million, signalling sustained investor confidence. Industry growth has been driven largely by demand in the leisure and security vessel segments, with Malaysian yards now producing high specification yachts and defence-related boats. Exports have reached markets as diverse as Australia, Europe, Nigeria and Brazil. Charting a Dual-Engine Future With its twin ambitions in aerospace and maritime manufacturing, Malaysia is signalling a shift from cost-driven industrialisation to value-based engineering and strategic export leadership. As global supply chains recalibrate in response to geopolitical shocks and regional fragmentation, Malaysia must reframe its role as a high-trust systems integrator. This means anchoring local firms in design, integration, and value-added services — particularly for MRO, naval systems and advanced composite manufacturing. On the aerospace front, the country must accelerate its ambition to build sovereign capabilities in composite structures, avionics and sustainable aviation technologies. This requires stronger integration between SMEs and OEMs, not just as contract manufacturers but as co-development and IP-owning partners. Malaysia's strategy for these industries must adapt to global geopolitical changes, including; reconfiguring trade alliances, the emergence of dual-use technologies, and the trend of nearshoring, to define its desired strategic autonomy.
The Sun
13 hours ago
- Business
- The Sun
Malaysia sharpens its focus on becoming regional aerospace
KUALA LUMPUR: Malaysia is sharpening its focus on becoming a regional aerospace and shipbuilding hub, banking on high value investment, technical capability and geostrategic positioning to elevate its industrial profile over the next decade. Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, chief executive officer of the Malaysian Investment Development Authority (MIDA), said the country is well positioned to serve as a competitive ASEAN aerospace base, driven by its strength in engineering, maintenance services and systems integration. 'At MIDA, our strategy hinges on high-quality investments, fostering local global partnerships and advancing key enablers such as industrial digitalisation and sustainability,' he said in an interview with Bernama. To date, Malaysia's aerospace sector has secured RM26 billion in approved investments, with more than 18,000 jobs generated, affirming the nation's growing significance in the regional aerospace value chain. In 2024 and the first quarter of 2025, the sector attracted RM1.5 billion spproved investments, of which 71.3 per cent was from foreign sources, with the remainder driven by domestic capital. These projects are expected to create more than 550 skilled jobs, primarily in aerospace manufacturing and maintenance, repair, and overhaul (MRO) services, particularly among Tier 1 and Tier 2 suppliers. Malaysia already hosts Boeing's only wholly owned manufacturing facility in Southeast Asia, Boeing Composites Malaysia (BCM), which produces composite parts for all Boeing commercial aircraft. President of Boeing Southeast Asia, Penny Burtt regards Malaysia as a valued partner across Boeing's commercial aviation, defence and services businesses. She said Boeing's efforts in Malaysia include advancing aviation safety, supporting sustainability initiatives, strengthening the supply chain, engaging the community and nurturing the aerospace workforce of the future. 'Boeing's 78-year presence in Malaysia is a testimony to our longstanding commitment to the country and the broader Southeast Asia region. BCM in Kedah, Boeing's first wholly owned manufacturing facility in Southeast Asia, taps the country's growing capabilities and talented workforce. 'Today, with all-Malaysian employees, BCM supplies composite products and subassemblies for all Boeing commercial airplanes,' she said. Strategic Shift to Maritime While aerospace remains the headline, Sikh Shamsul said Malaysia's ambitions extend offshore, while pointing to the shipbuilding and ship repair (SBSR) sector as an emerging pillar, underpinned by targeted investment and sustainability mandates. 'Malaysia should always remain vigilant of rising competition from lower cost yards in neighbouring economies such as Vietnam and Indonesia,' he said, adding that cost competitiveness alone will not secure the country's long-term standing. Instead, he said, Malaysia should start focusing on reducing reliance on foreign automation tools, by approaching local robotic manufacturing in Malaysia that could build a whole new automated system integration to improve productivity in the SBSR manufacturing landscape. Muhibbah Engineering (M) Bhd group managing director Mac Ngan Boon said Malaysia's geography gives the company a natural edge - over 4,600 kilometres of coastline and the domestic needs for various vessel and strategies. 'Innovation is central to our operations. We have adopted advanced technologies such as computer numerical control (CNC) laser cutting, virtual ship prototyping, and real-time simulations. These tools improve design precision, reduce production costs and enhance overall efficiency. 'We are also taking proactive steps towards sustainability, including exploring green vessel designs powered by solar and electric energy. These initiatives reflect our long-term commitment to building vessels that meet both market and environmental demands,' he said. Looking ahead, he said the group's upcoming Kuantan Maritime Hub will be a game-changer — featuring a larger shipyard, defence and training facilities, as well as maritime partners and vendors. 'This is part of our long-term strategy to strengthen the maritime ecosystem and position Malaysia as a future leader in the sector. 'We also aspire for Malaysia to place strong emphasis on developing the entire maritime industry — from establishing dedicated maritime institutes to cultivating the necessary talent and building a robust vendor and supply chain network' he said. Flagship Maritime Developments Taking Shape Malaysia is developing flagship projects such as Lumut Maritime Industrial City, Kuala Linggi International Port and Kuantan Maritime Hub to transition its maritime sector from traditional shipbuilding to advanced technologically integrated manufacturing and logistics, aiming to boost competitiveness, create jobs and foster sustainable practices. To date, MIDA has approved RM1 billion in investments for the SBSR sector. In the first quarter of 2025, the sector attracted an additional RM574.8 million, signalling sustained investor confidence. Industry growth has been driven largely by demand in the leisure and security vessel segments, with Malaysian yards now producing high specification yachts and defence-related boats. Exports have reached markets as diverse as Australia, Europe, Nigeria and Brazil. Charting a Dual-Engine Future With its twin ambitions in aerospace and maritime manufacturing, Malaysia is signalling a shift from cost-driven industrialisation to value-based engineering and strategic export leadership. As global supply chains recalibrate in response to geopolitical shocks and regional fragmentation, Malaysia must reframe its role as a high-trust systems integrator. This means anchoring local firms in design, integration, and value-added services — particularly for MRO, naval systems and advanced composite manufacturing. On the aerospace front, the country must accelerate its ambition to build sovereign capabilities in composite structures, avionics and sustainable aviation technologies. This requires stronger integration between SMEs and OEMs, not just as contract manufacturers but as co-development and IP-owning partners. Malaysia's strategy for these industries must adapt to global geopolitical changes, including; reconfiguring trade alliances, the emergence of dual-use technologies, and the trend of nearshoring, to define its desired strategic autonomy.
New Straits Times
a day ago
- Business
- New Straits Times
Johor-Singapore Economic Zone draws billions as Malaysia eyes high-value growth
ISKANDAR PUTERI: The Johor-Singapore Special Economic Zone (JS-SEZ) is rapidly gaining traction as global investors bet on Johor's strategic location and policy stability to anchor their expansion into Southeast Asia. Speaking at the Nikkei Forum Medini Johor 2025, Invest Johor chief executive officer Natazha Harris said the agency had received over 400 investment enquiries from multinational companies since the zone's formal establishment in January. "Regardless of global headwinds, Johor is seen as a pocket of stability and a strong business hub," Natazha said, adding Malaysia offers peace, stability, resilience and real opportunities. He was referring to the escalating geopolitical tensions and shifting trade dynamics, with tariffs imposed by U.S president Donald Trump. The JS-SEZ, a joint initiative between Prime Minister Datuk Seri Anwar Ibrahim and Singapore's Prime Minister Lawrence Wong, spans 3,571 sq km, nearly five times the size of Singapore. It aims to catalyse bilateral integration and position southern Malaysia as a high-value investment gateway to Asean. The momentum is already visible. According to the Malaysian Investment Development Authority (MIDA), Johor pulled in RM48.5 billion in foreign direct investment (FDI) in 2024 -a 13 per cent increase from the year before. MIDA deputy chief executive officer Sivasuriyamoorthy Sundara Raja said in just the first quarter of 2025, FDI into Johor stood at RM27.4 billion, driven by the services and manufacturing sectors. "With facilitation measures in place, Malaysia is well-positioned to attract quality investments," he said. Meanwhile, Iskandar Investment Bhd chief executive officer Datuk Idzham Mohd Hashim, said Malaysia does not view Singapore as a competitor, but a strategic partner in a "natural symbiotic relationship." "We are not 'taking' companies from Singapore," he said. "We are working with Singaporean firms and authorities to draw multinationals to the region. "Johor offers up to 60 per cent cost savings compared to Singapore, and about 30 per cent compared to Kuala Lumpur," Idzham said. He added that the JS-SEZ's vision is not merely to be a low-cost extension of Singapore, but to drive high-value growth. Malaysia is targeting 100 strategic investment projects and 20,000 skilled jobs over the next decade. Proposed incentives include a 5 per cent corporate tax rate for 15 years on new manufacturing investments, and a 15 per cent income tax for knowledge workers. Iskandar Regional Development Authority chief executive officer Datuk Noorazam Osman, said almost 300,000 Johoreans cross into Singapore daily for higher wages. "This time, we are tightening bilateral coordination and adopting sector-specific approaches." The JS-SEZ is prioritising digital economy, advanced manufacturing, logistics, and green energy. "The area enjoyed a spike in data centre investments, with tech majors including ByteDance, Microsoft, and Japan's telecommunication company- Nippon Telegraph and Telephone Corporation announcing major expansion plans. The two-day forum co-organised by IIB and Japan's Nikkei Inc. concludes today. The event was hosted by the Johor state government with support from Invest Johor, the Johor Economic Planning Division and the Iskandar Puteri City Council. It is part of ongoing efforts to anchor Johor as a regional innovation hub, supporting the JS-SEZ's vision of deeper cross-border integration with Singapore.
New Straits Times
2 days ago
- Business
- New Straits Times
Perak-based Wide Agro, Japan's Orec to invest RM30mil in new facility
KUALA LUMPUR: Perak-based Wide Agro Ventures Sdn Bhd has partnered with Orec Co Ltd, a company headquartered in Fukuoka, Japan, to establish a new production facility and distribution centre at Seri Iskandar Industrial Park, Perak, with an initial investment of RM30 million. The joint initiative was unveiled through the signing of a memorandum of understanding (MoU) at the World Expo 2025 in Osaka, said Malaysian Investment Development Authority (MIDA). The initiative is expected to significantly expand the production capacity and enhance the productivity of Malaysia's agriculture sector—particularly the palm oil industry—in the coming years. Through the MoU, Orec Co Ltd will provide cutting-edge technology to Wide Agro Ventures for the production and distribution of agricultural machinery and equipment in Malaysia and the regional market. Perak Mentri Besar Datuk Seri Saarani Mohamad said Perak is a land of grace with huge agriculture activity consisting of palm oil, rubber and paddy. "Perak's agricultural sector is a significant part of the state's economy, contributing 14.2 per cent to gross domestic product (GDP). "It plays a vital role in food security and exports, with palm oil being a major export. "By producing sophisticated machinery and equipment, it will leapfrog the contribution of this sector by enhancing efficiency and productivity nationwide," he said in statement today. MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the partnership marks a timely and impactful investment that will strengthen Malaysia's capabilities in agricultural machinery manufacturing. He added that the Seri Iskandar facility is poised to become a cornerstone in the sector, acting as a catalyst for greater industrial capacity, technology transfer, and export competitiveness. "By complementing Japanese engineering excellence with Malaysian expertise, we are building a resilient and forward-looking value chain. "This will enhance productivity in the palm oil sector and beyond, while opening doors for local talents, businesses and the wider community to thrive. "Seri Iskandar offers a strategic platform aligned with our national agenda to advance mechanisation and digitalisation in agriculture, and to position Malaysia as a regional hub for high-value machinery manufacturing," he noted. Wide Agro Ventures chief executive officer Ahmad Fadzil Mustafa said this investment marks a significant milestone in the company's journey in Malaysia. "By expanding our manufacturing capabilities in Perak, we are not only reinforcing our commitment to local industrial development but also advancing our mission to deliver light and sustainable agriculture solutions across the region. "We believe in transforming the agriculture sector with better technology, responsibly, sustainably, innovatively, and collaboratively with our partner from Japan," he said.
Daily Express
6 days ago
- Business
- Daily Express
Sabah places third for Q1 investments
Published on: Saturday, June 14, 2025 Published on: Sat, Jun 14, 2025 Text Size: Kota Kinabalu: Sabah has solidified its position as one of Malaysia's top investment destinations, recording RM10.9 billion in approved investments in the first quarter of 2025, surpassing its total for the entire year of 2024. According to the latest investment performance report by the Malaysian Investment Development Authority (MIDA), Sabah now ranks third nationally in total investments, behind Selangor and the Federal Territory of Kuala Lumpur. Advertisement Foreign Direct Investment (FDI) led the surge, contributing RM6.6 billion or 61pc of the total, while Domestic Direct Investment (DDI) accounted for RM4.29 billion (39pc). The manufacturing sector emerged as the top contributor with RM7.3 billion in investments, making Sabah the number one recipient of manufacturing investments in Malaysia for the quarter. Of the manufacturing total, RM6.59 billion (91.3pc) came from foreign sources, reflecting robust international confidence in Sabah's business environment. Domestic investment in the sector amounted to RM711 million (9.7pc). The services sector drew RM2.83 billion, while the primary sector attracted RM757.1 million. Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe described the milestone as a testament to investor confidence in Sabah's economic prospects and pro-business policies. 'Despite global economic uncertainties and geopolitical pressures, Sabah remains a competitive and trusted investment hub. This performance shows our strategic policies are yielding tangible results,' he said. He added that the state government remains fully committed to strengthening Sabah's investment ecosystem and welcomes both foreign and local investors in contributing to sustainable and inclusive economic growth. 'The State Government will continue to create an enabling environment for investors and push forward with our industrial development agenda,' Phoong said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
