MCE Bets Big on Perodua EV Project to Strengthen Malaysia’s Automotive Electronics Industry
Malaysia’s MCE Holdings Bhd is positioning its involvement in Perodua’s first electric vehicle, the QV-E, as a major strategic step despite the model’s slow initial sales. The company co-developed key components for the EV, including the in-vehicle infotainment (IVI) system and advanced driver-assistance system (ADAS), working closely with Perodua over the past two years. MCE Group Managing Director Dr. Goh Kar Chun said the project has significantly improved the company’s expertise in high-end automotive electronics and mechatronics, giving it valuable design and development experience. To support this growth, MCE invested RM50 million in the first phase of its new MCE Auto Hub in Serendah, Selangor, with total planned investment for the site expected to reach between RM150 million and RM200 million.
The company aims to use its strengthened capabilities to break into wider ASEAN markets, supplying both national and foreign automakers such as BYD, while also benefiting from Malaysia’s push for greater EV localisation. New government rules require high-volume completely knocked-down (CKD) EV projects to export 80% of production and meet a 40% regional value content threshold, creating stronger demand for locally sourced high-value electronics such as ADAS and infotainment systems. MCE is also expanding globally through international contracts and Chinese partnerships, including a joint venture with Nanjing Chuhang Technology for millimetre wave radar sensors and cooperation with Adayo for smart-cockpit solutions. The company plans to double its revenue by 2030 and target RM700 million in top-line revenue by 2035 as it strengthens its role in Malaysia’s evolving EV supply chain.
https://theedgemalaysia.com/node/800790
Editor’s Note: MCE Holdings has co-developed key components for Perodua’s first EV, the QV-E, including infotainment and ADAS systems, while investing RM50 million in its new Auto Hub to strengthen expertise in automotive electronics. Leveraging this capability, the company is targeting ASEAN and global markets with partnerships in radar and smart-cockpit solutions, aiming to double revenue by 2030 and reach RM700 million by 2035 as Malaysia’s EV localisation drive accelerates.
Malaysia Pushes Upstream Growth as Semiconductor Sector Gains Strategic Importance
Malaysia is intensifying efforts to strengthen its semiconductor ecosystem amid rising geopolitical uncertainties, with semiconductors now increasingly seen as a matter of national interest. Deputy Minister of Science, Technology and Innovation Mohammad Yusof Apdal said the global industry is shifting, with greater value concentrated in front-end activities such as integrated circuit (IC) design and advanced packaging rather than traditional back-end operations. Speaking at the pre-launch of SemiconStart Malaysia in Kuala Lumpur, he said moving further up the value chain is essential for Malaysia’s long-term competitiveness, resilience, and economic relevance. He added that the National Semiconductor Strategy (NSS), reinforced by Budget 2026, reflects the country’s commitment to building impactful capabilities in higher-value segments of the industry.
To support this goal, SemiconStart Malaysia has been introduced as a structured initiative to build a stronger pipeline of semiconductor ventures and technology companies. The programme, implemented by Malaysian Technology Development Corporation (MTDC) in collaboration with Silicon Catalyst UK, offers a 260-day incubation track with grants of up to RM1 million per company, alongside access to advanced design tools, mentorship, and global investor networks. Focus areas include IC design, sensor technologies, photonics, Micro-Electro-Mechanical Systems, quantum technologies, and advanced semiconductor materials. Malaysia currently accounts for about 13% of the global semiconductor testing and packaging market and remains one of the world’s largest semiconductor exporters, with the full launch of SemiconStart Malaysia expected later this year.
https://www.bernama.com/en/news.php?id=2545109
Editor’s Note: Malaysia is stepping up its semiconductor strategy, with Deputy Minister Mohammad Yusof Apdal highlighting the need to move into higher-value areas like IC design and advanced packaging under the National Semiconductor Strategy. To support this, SemiconStart Malaysia will incubate new ventures with grants, tools, and global networks, aiming to boost Malaysia’s competitiveness beyond its current 13% share of the global testing and packaging market.
Malaysia to Host SEMICON Southeast Asia 2026 as Semiconductor Industry Targets Next Growth Phase
Malaysia will host SEMICON Southeast Asia (SEMICON SEA) 2026 from May 5 to 7 at the Malaysia International Trade and Exhibition Centre (MITEC) in Kuala Lumpur, reinforcing the country’s position as a major player in the global semiconductor ecosystem. Held in strategic partnership with the Ministry of Investment, Trade and Industry (MITI) and the Malaysian Investment Development Authority (MIDA), the event is expected to attract more than 20,000 innovators, policymakers, and technology experts. With the theme “Transform Tomorrow,” the exhibition will focus on artificial intelligence, smart manufacturing, sustainability, workforce development, advanced packaging, supplier sourcing, and next-generation semiconductor technologies. Industry leaders noted that the global semiconductor market is projected to reach US$1 trillion in annual sales in 2026, driven largely by the accelerating AI infrastructure boom and Southeast Asia’s expanding role in manufacturing, assembly, testing, and packaging.
Malaysia enters the event from a strong position, with its electrical and electronics (E&E) sector securing RM28.5 billion in approved investments in 2025 and the country moving beyond traditional assembly and testing into higher-value activities such as chip design, advanced packaging, and innovation-led manufacturing. MIDA said Malaysia aims to be at the centre of the semiconductor industry’s next phase under the New Industrial Master Plan (NIMP) 2030, supported by supply chain integration and stronger local capabilities. Key focus areas at SEMICON SEA 2026 will include AI and intelligent manufacturing, sustainability, advanced packaging, talent development, and supplier matching programmes, alongside initiatives to support Malaysia’s National Semiconductor Strategy, which targets training 60,000 highly skilled engineers by 2030. The event is expected to strengthen partnerships between global semiconductor leaders and Malaysian suppliers while accelerating new investment opportunities.
Editor’s Note: Malaysia will host SEMICON Southeast Asia 2026 from May 5–7 in Kuala Lumpur, drawing over 20,000 participants to focus on AI, smart manufacturing, sustainability, advanced packaging, and workforce development as the global semiconductor market heads toward US$1 trillion. Backed by RM28.5 billion in E&E investments and the NIMP 2030 plan, Malaysia aims to move beyond assembly into higher-value chip design and packaging, while training 60,000 engineers by 2030 to strengthen its role in the global supply chain.
Malaysia’s EV Growth Accelerates as Localisation Rules Challenge Foreign Automakers
Malaysia’s electric vehicle (EV) market is seeing strong growth in early 2026, but analysts say the main driver is not rising fuel prices following the Iran war, but the launch of Proton’s affordable new EV model priced at around MYR 59,800. Monthly EV registrations reached 4,352 units in February, marking a 58% year-on-year increase, with industry observers pointing to the “Proton effect” as the biggest contributor. At the same time, the government is tightening investment conditions for foreign automakers seeking local assembly. Under rules clarified by the Ministry of Investment, Trade and Industry (MITI), companies such as BYD must export at least 80% of locally assembled vehicles, limit domestic sales, and keep imported EV prices above MYR 100,000. Officials say these measures are designed to protect Malaysia’s domestic supply chain and support national carmakers such as Proton and Perodua rather than act as protectionist barriers.
Industry experts say the challenge now is whether Malaysia can move beyond simple EV assembly into higher-value manufacturing such as batteries, powertrains, software, and advanced electronics. Current local assembly programmes achieve only around 20–30% local content, below Thailand’s stronger localisation targets, while most Malaysian vendors still lack capabilities in advanced EV systems. Proton has responded by sourcing RM3.2 billion in local components and introducing new technologies through vendor partnerships, including collaborations with Chinese suppliers for technology transfer and joint ventures. Analysts note that Malaysia’s long-standing national car policy has limited foreign direct investment compared with Thailand, which has attracted major EV investment from Chinese manufacturers like BYD and Great Wall Motor. However, policymakers believe balancing localisation with strategic foreign partnerships will be crucial if Malaysia wants to scale its EV industry without weakening its domestic automotive ecosystem.
https://www.reccessary.com/en/news/malaysia-ev-localization-investment
Editor’s Note: Malaysia’s EV market surged in early 2026 with monthly registrations up 58% year-on-year, driven mainly by Proton’s affordable new EV priced at MYR 59,800 rather than fuel costs. Government rules now require foreign automakers to export 80% of locally assembled EVs and maintain high import prices, as Malaysia seeks to protect domestic supply chains and push into higher-value manufacturing like batteries, powertrains, and advanced electronics.
Ingram Micro Targets Thailand’s AI Boom as IT Spending Reaches New Highs
Ingram Micro Thailand is positioning itself as a solutions aggregator to capture opportunities from the country’s rapidly expanding IT market, with total IT spending projected to reach 1.1 trillion baht in 2026. Newly appointed Managing Director Suphakit Tiyawatchalapong said Thailand is moving towards becoming the artificial intelligence (AI) centre of gravity for Southeast Asia, supported by rising investments in AI-related infrastructure. According to Gartner, spending on data centre systems by enterprises and service providers is expected to grow 27.9% to 70.6 billion baht this year, while server spending will rise nearly 38% to 51.1 billion baht, driven by demand for AI-optimised servers. Growth is also being supported by expanding network infrastructure and smart warehousing systems as businesses accelerate digital transformation.
The company said enterprise buying behaviour is also shifting rapidly toward a digital-first, AI-assisted model, with decision-makers increasingly relying on generative AI tools instead of traditional search engines or direct sales interactions. Research from firms including Gartner, IDC, and McKinsey shows that 75% of enterprise buyers now prefer autonomous research, while 65% of millennial and Gen Z decision-makers use GenAI assistants as their primary tool for selecting business partners and solutions. Nearly 40% of buyers are comfortable closing deals worth over 18 million baht entirely through digital systems, with 80% of sales interactions expected to happen via digital channels by 2026. Ingram Micro said its AI-powered Xvantage platform is designed to support this transition by automating deals, analysing data, and helping Thai businesses make faster and more informed purchasing decisions.
https://www.bangkokpost.com/business/general/3237780/ingram-micro-targets-solutions-aggregation
Editor’s Note: Ingram Micro Thailand is positioning itself as a solutions aggregator in the country’s fast-growing IT market, with spending projected to hit 1.1 trillion baht in 2026 and strong demand for AI-optimised infrastructure. As enterprise buying shifts toward digital-first, AI-assisted models, its Xvantage platform aims to automate deals and support Thai businesses, with 80% of sales interactions expected to occur via digital channels by 2026.
Thailand Faces Semiconductor Shortage as AI Boom Pushes Up Chip Prices
Thailand is facing growing pressure from a global semiconductor shortage as rising demand from artificial intelligence (AI), data centres, cloud computing, and robotics drives up memory chip prices worldwide. Supant Mongkolsuthree, honorary chairman of the Federation of Thai Industries and chairman of Synnex (Thailand), said industries such as AI infrastructure and advanced technology are consuming memory chips that were once widely available for IT products, home appliances, and power systems. Prices for random access memory (RAM) have more than doubled this year, with some reports showing memory chip prices rising by as much as 90% in the first quarter of 2026. While sectors like automotive and industrial technology can better absorb the higher costs, consumer electronics including smartphones, laptops, and household appliances are facing stronger cost pressures.
Mr. Supant warned that manufacturers are likely to pass these rising production costs on to consumers, with smartphone prices expected to increase and low- to mid-range laptops potentially becoming 10–15% more expensive. He urged the Thai government to revise investment incentives and trade measures to attract more foreign semiconductor investors and strengthen local supply resilience. Thailand’s Semiconductor Board has already launched a national strategy aimed at attracting 5 billion baht in investment between 2025 and 2029, alongside workforce development plans to position the country as a regional hub for advanced semiconductor and electronics production. Additional pressure is also coming from geopolitical tensions, including the Israel-US-Iran conflict, which has disrupted helium supplies—a critical material for chip manufacturing—further threatening production across industries such as automotive manufacturing.
Editor’s Note: Thailand is facing a semiconductor shortage as AI, cloud, and robotics demand drives memory chip prices up by as much as 90% in early 2026, pressuring consumer electronics like smartphones and laptops. Industry leaders warn of rising costs being passed to consumers and urge stronger investment incentives, while Thailand’s Semiconductor Board pursues a national strategy to attract 5 billion baht in investment and build resilience amid geopolitical supply disruptions.
Thailand Steps Up Efforts to Attract US Semiconductor Investment Amid AI-Driven Demand Surge
Thailand is intensifying efforts to attract major US semiconductor investment as global demand for chips continues to surge with the rapid expansion of artificial intelligence (AI) technologies. Board of Investment (BOI) Secretary-General Narit Therdsteerasukdi said Deputy Prime Minister and Finance Minister Pichai Chunhavajira led Team Thailand to Washington, D.C., from April 13–17, 2026, during the IMF-World Bank Spring Meetings to strengthen international economic cooperation and hold strategic investment talks with leading semiconductor companies. With the global semiconductor market expected to exceed US$1 trillion by the end of 2026—four years earlier than previously forecast—Thailand sees semiconductors as a key next-generation industry critical for competitiveness, technological security, and broader industrial development.
As part of the visit, Thai officials held discussions with three leading semiconductor companies, focusing especially on attracting upstream chip production and building stronger cooperation in talent development and local entrepreneurship. One key company was Phononic, a producer of advanced cooling chips used in high-performance digital systems and AI infrastructure. Phononic has already invested more than THB3 billion in Thailand over the past 18 months through joint ventures with three local companies and has been selected as a component supplier for NVIDIA’s processing systems. The company is now preparing to relocate additional upstream semiconductor materials production from the United States to Thailand by 2027, potentially making Thailand its fully integrated manufacturing base from raw materials to finished products, with future research and development operations also likely to follow.
https://www.nationthailand.com/blogs/business/investment/40065246
Editor’s Note: Thailand is stepping up efforts to attract U.S. semiconductor investment, with Deputy PM Pichai Chunhavajira leading talks in Washington during the IMF-World Bank Spring Meetings as global chip demand surges past US$1 trillion in 2026. Discussions with firms like Phononic, which has already invested THB3 billion and supplies NVIDIA, could see Thailand become a fully integrated manufacturing base by 2027, spanning raw materials to R&D.
Fuel Crisis Drives Southeast Asia’s Shift Toward Electric Vehicles
Rising fuel prices caused by the prolonged Iran energy crisis are accelerating electric vehicle (EV) adoption across Southeast Asia, as motorists seek alternatives to costly petrol and supply disruptions. With the Strait of Hormuz remaining closed and export restrictions on refined fuel products from countries such as China and South Korea tightening supply, drivers in Thailand, Vietnam, and the Philippines are facing long queues at petrol stations and sharply higher fuel costs. Industry experts say EVs are increasingly being viewed not only as a climate solution but also as a practical response to energy security concerns. Chinese automaker BYD topped vehicle orders at the Bangkok Auto Show in April, surpassing Toyota for the first time, while seven of the top 10 brands were Chinese. Analysts note that EVs convert around 90% of stored energy into movement, compared with only about 25% for conventional gasoline engines, making them more attractive during fuel shortages.
Chinese EV makers such as BYD, XPeng, and NIO have strengthened their global competitiveness through lower battery costs, affordable pricing, and advanced features such as assisted driving and AI-powered in-car assistants. Their expansion into Southeast Asia has been supported by partnerships with regional distributors like Sime Darby in Malaysia and Singapore, and local players such as VinFast are also benefiting, with EVs now accounting for nearly 40% of Vietnam’s car sales. However, experts caution that EVs are not a complete solution, as their climate benefits depend heavily on cleaner electricity grids and sustainable battery recycling systems. While EV adoption continues to rise across the region, challenges remain in balancing affordability, infrastructure, and long-term environmental impact.
https://fortune.com/2026/04/21/how-the-iran-energy-crisis-supercharged-southeast-asias-ev-transition
Editor’s Note: Southeast Asia’s EV adoption is accelerating in early 2026 as the prolonged Iran energy crisis drives up fuel prices and disrupts supply, with Proton and Chinese automakers like BYD leading sales gains. While EVs now account for nearly 40% of Vietnam’s car sales and dominate orders at events like the Bangkok Auto Show, experts caution that long-term benefits depend on cleaner grids, affordable infrastructure, and sustainable battery recycling.
Bangkok Industries Expand Rooftop Solar Adoption to Cut Energy Costs
Factories and warehouses across Bangkok are increasingly turning their rooftops into productive financial assets by installing solar power systems, driven by rising electricity prices and strong government incentives. Businesses in areas served by the Metropolitan Electricity Authority face daytime electricity tariffs of around 4.18 baht per unit, making self-generated solar power a cost-effective alternative to expensive grid electricity. For many industrial facilities, rooftop solar systems can significantly lower operational expenses, with investment recovery typically taking between 4.2 and 5.8 years. Support from Thailand’s Board of Investment (BOI), including an eight-year corporate income tax exemption under Section 30/8 and duty-free imports of key solar equipment such as panels and inverters, further strengthens the financial appeal by reducing the payback period by nearly two years.
However, successful solar adoption requires careful planning beyond simply installing panels across available roof space. Fire safety regulations, maintenance access routes, and existing rooftop equipment such as air-conditioning systems can reduce usable space by 25% to 35%, though medium-sized factories can still typically support solar systems ranging from 300 kWp to 1 MWp. Companies usually choose between self-funding, which offers full long-term savings and tax benefits, or Power Purchase Agreements (PPAs), where third-party providers install and manage the system at no upfront cost while supplying cheaper electricity. Challenges such as Bangkok’s humid monsoon climate, frequent lightning, and the need for structural upgrades in older buildings must also be addressed. Despite these hurdles, businesses see rooftop solar as a practical long-term strategy for reducing costs and securing stable energy expenses over the next 25 years.
Editor’s Note: Factories and warehouses in Bangkok are increasingly adopting rooftop solar to cut electricity costs, with BOI incentives reducing payback periods to under six years. Despite challenges like limited roof space, climate risks, and structural upgrades, businesses see solar as a long-term strategy to lower expenses and secure stable energy for 25 years.
Thailand’s Auto Industry Rebounds in March as EV and Hybrid Demand Accelerates
Thailand’s automotive industry showed renewed signs of recovery in March 2026, with total vehicle production rising to 133,413 units, up 2.69% year-on-year and 13.11% from February, according to the Federation of Thai Industries (FTI). Surapong Paisitpattanapong, adviser to the chairman and spokesman of the FTI’s Automotive Industry Club, said export production remained a major driver, reaching 88,651 units, an increase of 6.53% from the previous year. Passenger car production for export rose by 19.91%, supporting Thailand’s manufacturing base, although exports of completely built-up vehicles slipped slightly by 0.64% due to weaker shipments to the Middle East following the closure of the Strait of Hormuz, which caused regional exports to fall by 15.96%.
Domestic vehicle sales also improved, reaching 59,865 units in March, up 7.29%, largely driven by strong deliveries from the Bangkok International Motor Show, where bookings exceeded 100,000 units. Electric vehicles accounted for more than half of total reservations, highlighting the rapid shift toward cleaner mobility. Passenger battery electric vehicle sales surged 47.62% to 12,074 units, while hybrid electric vehicle sales rose 23.81% to 14,895 units. Hybrid electric passenger vehicle production increased by 12.69%, while internal combustion engine passenger car production declined by 22.08%, reflecting a major structural shift in Thailand’s auto sector. However, domestic pick-up truck sales fell by 6.36% due to stricter lending conditions and weaker consumer purchasing power, prompting the FTI to urge the new government to speed up economic policies and investment plans to strengthen industrial confidence and sustain long-term growth.
Thailand’s auto industry shows signs of recovery as EVs and hybrids drive March growth
Editor’s Note: Thailand’s auto industry rebounded in March 2026, with vehicle production rising 2.69% year-on-year to 133,413 units, driven by export demand despite weaker shipments to the Middle East. Domestic sales also grew 7.29% to nearly 60,000 units, with EVs and hybrids accounting for more than half of new bookings, underscoring a structural shift toward cleaner mobility even as pickup sales declined due to tighter lending conditions.
Thailand Pushes for AI Sovereignty as Talent Shortage Threatens Growth
Thailand is accelerating efforts to build artificial intelligence (AI) sovereignty through a new partnership between the Digital Council of Thailand (DCT), the National Science and Technology Development Agency (NSTDA), and the Asian Institute of Technology (AIT), aimed at closing the gap between research and commercial application while addressing a growing talent shortage. The country currently produces only around 1,500 AI-ready graduates each year, far below private sector demand, which has surged into the hundreds of thousands. Under the joint action plan, the agencies will launch AI training programmes targeting 700 AI users and 300 AI developers, with pilot projects focused on retail, healthcare, and digital content industries. A regional AI-powered water management project will also begin in Nan province to help reduce disaster risks before being expanded nationwide.
The initiative also includes innovation matching programmes for entrepreneurs in the medical and agri-food sectors, a central platform for AI skills and research databases, and policy proposals to strengthen Thailand’s long-term AI ecosystem. NSTDA said the goal is to establish “technological sovereignty,” enabling Thailand to build and manage AI systems based on domestic values and needs, supported by platforms such as AI for Thai and the Thai-language large language model Pathumma. The government plans to distribute 5 million AI tool licences to people aged 15 and above and has required all university programmes to include at least two AI-related courses. However, industry leaders warn that limited research funding, weak digital education pipelines, and unclear regulations for emerging technologies such as autonomous vehicles continue to slow progress. Experts say stronger investment, tax incentives for workforce upskilling, and easier access for foreign AI talent will be critical if Thailand is to remain competitive in the regional AI race.
Bangkok Post – Thailand intensifies AI efforts in bid to close the skills gap
Editor’s Note: Thailand is pushing for AI sovereignty through a partnership between the Digital Council, NSTDA, and AIT to bridge research with commercial use and address talent shortages, with new training programs and pilot projects in retail, healthcare, and digital content. The initiative also includes innovation matching, AI skill platforms, and policy proposals, but experts warn that limited funding, weak education pipelines, and unclear regulations could slow progress unless stronger investment and foreign talent access are secured.
Apple Tightens App Store Rules as Thailand’s Developers Face Higher AI App Standards
Apple has launched a major crackdown on low-quality applications created through “Vibe Coding,” a trend where developers rely heavily on artificial intelligence tools such as OpenAI’s ChatGPT and Anthropic’s Claude to generate apps with minimal traditional coding. The move is highly relevant to Thailand’s fast-growing digital economy, where startups, freelancers, and small developers are increasingly using AI tools to accelerate app development. Apple said many of these AI-generated apps fail to meet App Store standards due to repetitive designs, poor functionality, and weak security, often resulting in what critics describe as “digital trash.” The company is specifically targeting apps that violate its “Spam and Copycat” policies, including simple utilities such as basic calculators or note-taking apps that offer little value beyond existing iPhone features.
For Thai developers and digital entrepreneurs, the stricter enforcement signals the need for stronger quality control and deeper technical oversight when using AI-assisted development. Apple warned that poorly supervised AI-generated code can create hidden security vulnerabilities, excessive battery drain, and unstable performance, all of which damage user trust. It also highlighted Rule 4.2, which requires apps to provide meaningful and unique functionality rather than low-effort duplication. While Apple clarified that this is not a ban on AI-built applications, it stressed that developers must treat AI as a tool—not a shortcut—and remain fully responsible for delivering secure, original, and high-quality software. As Thailand continues expanding its AI and startup ecosystem, the policy shift serves as a reminder that speed in development must be matched by product quality and user safety.
https://www.bangkokpost.com/life/tech/3237218/apple-cracks-down-on-lowquality-aigenerated-apps
Editor’s Note: Apple has begun cracking down on low-quality “Vibe Coding” apps built largely with AI tools like ChatGPT and Claude, citing repetitive designs, weak functionality, and security risks that violate App Store policies. For Thai developers, the move underscores the need for stronger oversight and originality in AI-assisted development, as Apple insists AI must be treated as a tool—not a shortcut—to deliver secure, high-quality software.