Malaysia Pushes Into Advanced Semiconductor Packaging With RM185 Million Consortium Initiative
Malaysia is aiming to develop domestic capabilities in advanced semiconductor packaging within the next two years through the newly established Malaysia Advanced Packaging Consortium (MAPC), a joint initiative between the government and industry players. Science, Technology and Innovation Minister Datuk Chang Lih Kang said the consortium brings together five local companies — SkyeChip Bhd, Inari Technology Sdn Bhd, FusionAP Sdn Bhd, Pentamaster Instrumentation Sdn Bhd and NSW Automation Sdn Bhd — under a matching grant model and “whole-of-nation” approach to strengthen the country’s semiconductor ecosystem. The government has approved RM92 million in research and development grants over 24 months, while participating companies will contribute RM93 million, bringing the total investment to RM185 million. Chang said the initiative is designed to help Malaysia move beyond its traditional outsourced semiconductor assembly and test (OSAT) role and establish a foothold in the highly specialised advanced packaging segment.
Chang noted that Malaysia currently lacks advanced packaging capabilities, but success in the initiative would allow the country to retain valuable intellectual property and position itself among a small group of nations with such expertise. Economy Minister Akmal Nasrullah Mohd Nasir said semiconductor development remains a strategic priority under the 13th Malaysia Plan, emphasising the need for sustained R&D investment alongside infrastructure development. Deputy Investment, Trade and Industry Minister Sim Tze Tzin added that Malaysia, already the world’s sixth-largest semiconductor exporter, could strengthen its position in the global supply chain as demand accelerates during the AI-driven semiconductor boom. He said the project aligns with the National Semiconductor Strategy (NSS) and could transform Malaysia into a major hub for semiconductor packaging, testing and exports if successfully executed.
https://sme.asia/malaysia-to-build-advanced-semiconductor-packaging-in-2-years/
Editor’s Note: Malaysia has launched the Malaysia Advanced Packaging Consortium (MAPC) with five local firms and RM185 million in combined funding to build advanced semiconductor packaging capabilities within two years. The initiative, aligned with the National Semiconductor Strategy, aims to move beyond Malaysia’s traditional OSAT role, strengthen its global supply chain position, and transform the country into a hub for packaging, testing, and exports during the AI-driven semiconductor boom.
Malaysia Pushes EV Expansion Through Tax Incentives, IoT Integration and Smart Charging Networks
Malaysia is accelerating efforts to expand its electric vehicle (EV) ecosystem through a combination of policy incentives, infrastructure development, and smart-grid integration, according to a report by quantitative data researcher David Chai. While EV adoption in Malaysia continues to grow, EV sales accounted for only around 6% of total vehicle sales in 2025, placing the country behind regional leaders such as Thailand and Vietnam. The report noted that more than 4,000 charging bays have been installed nationwide, although infrastructure remains heavily concentrated in urban areas like Kuala Lumpur and Selangor. To drive adoption, the government has introduced multiple frameworks including the National Automotive Policy (NAP), National Energy Transition Roadmap (NETR), and Low Carbon Mobility Blueprint (LCMB), alongside tax incentives such as excise-duty exemptions for locally assembled EVs until 2027 and personal income tax relief for home charging installations. Malaysia is also targeting 10,000 charging bays nationwide through collaborations between the government and private-sector operators such as Tenaga Nasional Bhd, Gentari, ChargEV, and JomCharge.
Despite policy momentum, the report highlighted major challenges slowing nationwide EV expansion, including high installation costs, grid-capacity limitations, regulatory bottlenecks, and uneven charger distribution across rural and urban regions. Selangor currently records the largest shortfall against charging-bay targets, while Penang continues facing infrastructure gaps and limited fast-charging availability. To address these issues, Malaysia is developing the e-Mobility Service Platform (EMSP), a unified digital ecosystem designed to integrate charging access, payments, interoperability, and smart-grid management using Internet of Things (IoT) technologies and blockchain-based systems. The report pointed to Singapore as a successful regional model for EV infrastructure deployment, highlighting its use of open charging standards, coordinated public-private partnerships, and high-density charger networks. It added that stronger investment in smart charging systems, rural infrastructure, and integrated energy management will be critical if Malaysia hopes to scale EV adoption and position itself as a leading sustainable mobility hub in Southeast Asia.
Editor’s Note: Malaysia is pushing EV adoption with policies, tax incentives, and infrastructure growth, including over 4,000 charging bays and a target of 10,000 nationwide by 2027. Despite progress, challenges like high costs, grid limits, and uneven charger distribution persist, prompting development of a unified e-Mobility Service Platform to improve access and smart-grid integration.
Malaysia Assures Energy Stability Despite Middle East Conflict Pressures
Malaysia has secured sufficient energy supplies to meet domestic demand until at least the end of July despite disruptions caused by the ongoing conflict involving Iran, Economy Minister Akmal Nasir said on Monday. Citing data from state energy company Petronas, Akmal said the country’s existing power reserves remain adequate even as electricity demand rises. However, he warned that the geopolitical crisis has sharply increased logistics costs, with shipping rates to the Middle East surging between 50% and 80%, while war-related insurance premiums have climbed by as much as 3%. The aviation sector has also come under pressure, recording a 31.5% decline in daily passenger flights in April due to cancellations and route diversions linked to regional instability.
Akmal said Malaysia’s commodities sector is facing mounting challenges as higher transport costs and weaker exports weigh on performance. The sector’s value declined 14.7% in the first quarter of 2026 compared with a year earlier, largely due to lower exports of key products including palm oil, cocoa, rubber and timber. Total agricultural commodity exports are projected to fall 13.48% to RM170.2 billion this year, while imports are expected to decline 3.28% to RM72.47 billion. In response, the government has advised the commodities ministry to diversify palm oil export destinations and explore new markets to maintain Malaysia’s global competitiveness amid ongoing geopolitical uncertainty.
Editor’s Note: Malaysia has secured enough energy supplies to meet demand until July despite disruptions from the Iran conflict, though rising logistics costs have hit shipping and aviation. The commodities sector is under pressure, with exports projected to fall sharply, prompting the government to diversify palm oil markets to maintain competitiveness amid geopolitical uncertainty.
Thailand Car Production Falls to Five-Year Low Amid Export and Energy Pressures
Thailand’s automobile production fell to its lowest level in five years in April as export disruptions linked to the conflict in the Middle East and rising energy prices weighed on the sector, according to the Federation of Thai Industries (FTI). Auto production slipped 0.44% year-on-year to 103,794 units, reversing the 2.69% increase recorded in March. Thailand’s vehicle exports also declined sharply by 8.43% to 60,190 units during the month, reflecting weaker external demand and logistical challenges stemming from geopolitical tensions and higher fuel costs. Despite the slowdown in manufacturing and exports, domestic car sales rose 2.54% to 48,394 vehicles, supported partly by strong bookings generated during the Bangkok Motor Show, FTI auto club president Surapong Paisitpatanapong said during a press conference.
Thailand remains Southeast Asia’s largest automotive manufacturing hub and serves as a key export base for global automakers including Toyota, Honda, BYD and Great Wall Motors. Chinese electric vehicle makers have significantly expanded investments in Thailand in recent years as the country positions itself as a regional EV production and export centre. Despite the latest production weakness, the FTI maintained its forecast for Thailand’s car production to grow 3% in 2026 to 1.5 million units, following a 0.9% decline to 1.455 million units last year. Industry observers say continued investment in EV manufacturing and government support measures could help stabilise the sector once global energy and trade conditions improve.
Editor’s Note: Thailand’s automobile production fell to a five-year low in April, with output down 0.44% and exports dropping 8.43% due to Middle East conflict disruptions and rising energy costs, though domestic sales rose slightly. Despite the slowdown, Thailand remains Southeast Asia’s top auto hub, with continued EV investments and government support expected to drive a 3% production growth forecast for 2026.
SUBCON Thailand Generates US$705 Million in Trade as ASEAN Manufacturing Demand Accelerates
SUBCON Thailand, ASEAN’s largest industrial sourcing exhibition, concluded its 20th edition with an estimated US$705.5 million (approximately 23 billion baht) in parts trade as manufacturers intensified efforts to strengthen supply-chain partnerships across Southeast Asia. Held in Bangkok from May 13–16, the event attracted more than 50,000 participants and generated over 9,600 business matching pairs. Co-organised by the Thailand Board of Investment (BOI), the Thai Subcontracting Promotion Association and Informa Markets Thailand, the exhibition brought together companies across electric vehicles (EVs), semiconductors, advanced electronics, automation, robotics, aerospace and medical devices. BOI Secretary General Narit Therdsteerasukdi said SUBCON Thailand serves as a strategic platform connecting Thai entrepreneurs to global supply chains at a time when countries worldwide are restructuring industrial capabilities to strengthen domestic manufacturing bases.
Industry participants said the event created significant opportunities for procurement agreements, supplier partnerships and technology collaborations. BMW (Thailand) Co Ltd highlighted the exhibition’s role in connecting automotive and electronics firms with local manufacturers through dedicated business-matching sessions, while S.K. Polymer Co Ltd said the platform helped Thai companies demonstrate internationally competitive quality standards. According to organisers, business matching recorded the highest satisfaction scores among all exhibition activities, reflecting strong demand for regional industrial connectivity. Looking ahead, the BOI plans to expand SUBCON Thailand’s focus into AI, semiconductors, modern vehicles, automation and logistics as part of Thailand’s broader ambition to strengthen its role within global high-tech manufacturing supply chains.
Editor’s Note: SUBCON Thailand’s 20th edition generated US$705.5 million in trade and over 9,600 business matches, connecting 50,000 participants across industries like EVs, semiconductors, robotics, aerospace, and medical devices. Organised by BOI and partners, the event strengthened supply-chain ties and will expand its focus into AI, automation, and logistics to boost Thailand’s role in global high-tech manufacturing.
Synergetic Auto Performance Plans 1.2 Billion Baht EV Expansion to Boost Growth
Thai car rental and fleet management company Synergetic Auto Performance Plc (ASAP) has announced plans to invest 1.2 billion baht in electric vehicle (EV) acquisitions and showroom expansion as part of its strategy to strengthen its position in Thailand’s growing EV market. Chief executive Songvit Titipoonya said the investment is expected to increase the company’s revenue by 70% in 2026. Around 1 billion baht of the budget will be allocated to expanding ASAP’s EV fleet for corporate customers, while the remaining 200 million baht will fund the expansion of EV showrooms nationwide. The company reported revenue of 8.65 billion baht in 2025, supported largely by its car rental business and EV dealership operations. ASAP currently distributes several EV brands from China’s Changan Automobile, including Deepal, Nevo, Lumin and Avatr models.
The company said its dealer business is projected to contribute 80% of total revenue this year, with car rental services accounting for the remaining 20%. ASAP has also been steadily increasing its EV fleet to serve government agencies, corporations and industrial estates in line with Thailand’s net-zero emissions strategy. Thailand aims to achieve net-zero emissions by 2050, accelerating demand for cleaner transport solutions and EV infrastructure. As part of its expansion plans, Synergetic intends to diversify its product lineup by introducing electric pickups, vans and light trucks from China’s Maxus brand, which is expected to enter the Thai market in the third quarter of 2026. The company targets sales of 300 electric pickups in the second half of this year, rising to 2,200 units annually by 2029 as it positions itself as a major player in Thailand’s evolving EV ecosystem.
Editor’s Note: Synergetic Auto Performance (ASAP) will invest 1.2 billion baht to expand its EV fleet and showrooms, aiming to boost revenue by 70% in 2026 and strengthen its role in Thailand’s EV market. The company plans to diversify with electric pickups, vans, and trucks from China’s Maxus brand, targeting 2,200 annual pickup sales by 2029 as part of Thailand’s net-zero strategy.
RISE Partners Harvard Business Impact to Boost AI Leadership and Innovation in Thailand
Regional corporate innovation consultancy RISE has entered a three-year exclusive partnership with Harvard Business Impact to strengthen leadership capabilities among Thai executives and accelerate innovation-driven business transformation. The collaboration will introduce the artificial intelligence (AI)-powered learning platform “HBR Spark” to Thailand, making the country one of the first in Asia alongside Indonesia and India to launch the platform. RISE chief executive Supachai Parchariyanon said Thai companies must shift from defensive business strategies toward innovation-led growth as regional competitors continue advancing rapidly. The company aims to help increase Thailand’s GDP by 1% by 2027 through innovation-driven initiatives. HBR Spark provides executives with AI-curated learning content based on Harvard Business Review resources, including more than 21,000 articles, podcasts, videos and real-world case studies tailored to users’ industries, roles and professional goals.
RISE chief financial officer Sumana Parchariyanon said the partnership was created to address the growing need for AI adoption, workforce transformation and leadership agility within Thailand’s corporate sector. Citing research showing that 39% of worker skills could become obsolete by 2030, she said many Thai businesses are currently focused on using AI primarily for cost reduction rather than generating new growth opportunities. Through the partnership, RISE aims to expose Thai executives to global business perspectives and emerging innovation strategies without requiring overseas travel. The company is targeting 5,000 corporate clients and 25,000 executives during the initial rollout phase. RISE also plans to organise experiential learning workshops featuring Harvard professors and alumni, while expanding into the healthcare sector later this year as part of its broader strategy to create new S-curve growth industries and contribute to Thailand’s long-term economic competitiveness.
Editor’s Note: RISE has partnered exclusively with Harvard Business Impact to launch the AI-powered “HBR Spark” learning platform in Thailand, aiming to boost leadership agility and innovation-driven growth among executives. The three-year collaboration targets 25,000 executives and 5,000 corporate clients, with workshops and sector expansions planned to help Thai businesses adapt to AI, workforce transformation, and global competitiveness.
Thai Deeptech Startup MUI Robotics Develops Sensory AI Platform Focused on Smell and Taste Intelligence
Thai deeptech startup MUI Robotics Co Ltd is developing a sensory artificial intelligence (AI) platform that converts smell and taste into digital intelligence, positioning Thailand to become a global leader in what the company describes as the next phase of industrial AI. Speaking at a recent seminar on sensory AI, co-founder and chief executive Wandee Wattanakrit said the world is entering an “AI economy” where sensory data represents an untapped layer of intelligence beyond traditional image, text and audio processing. MUI Robotics believes smell and taste can enable AI systems to better understand the physical world and improve decision-making across industries. Co-founder and chief scientific officer Teerakiat Kerdcharoen said AI technology is evolving from pattern recognition and reasoning capabilities toward a third phase centred on emotional perception and human-like interaction, where systems can interpret sensory experiences more similarly to humans.
The company is initially focusing on commercial applications within Thailand’s food industry, using sensory AI to accelerate product development through virtual taste simulations and advanced quality-control systems. MUI Robotics is also expanding into environmental management by developing odour-monitoring solutions for industrial pollution detection and inspection processes. After collecting food-related sensory data for more than five years, the company has accumulated around 200 million data points and plans to scale the database into the hundreds of billions to create what it believes could become the world’s most comprehensive smell-and-taste intelligence platform. Charnwit Boonchuay, president of the AI Entrepreneurs Association of Thailand, said Thailand’s AI market is projected to reach 50 billion baht in 2026, but local operators currently capture only a small portion of that value. He added that sensory AI could become a key competitive advantage for Thai industries by enabling businesses and factories to interpret real-world conditions more accurately through advanced AI-driven perception systems.
https://www.bangkokpost.com/business/general/3261558/thai-startup-digitising-smell-and-taste
Editor’s Note: Thai startup MUI Robotics is developing a sensory AI platform that digitizes smell and taste, aiming to position Thailand as a global leader in the next phase of industrial AI. Initially applied to food and environmental industries, the company has collected 200 million sensory data points and plans to scale further, with experts noting sensory AI could give Thai businesses a competitive edge in the country’s growing AI market.
Thailand Overhauls Import Tax Regime With Higher Tariffs and End of Duty-Free Parcel Exemptions
Thailand has introduced a sweeping overhaul of its customs duty framework in 2026, eliminating long-standing duty exemptions for low-value imports and imposing higher tariffs on a range of consumer goods as part of a broader push to strengthen domestic industries and tighten tax enforcement. Under Customs Notification No. 219/2568, effective January 1, 2026, all imported parcels — regardless of value — are now subject to value-added tax (VAT) and applicable import duties, ending the THB 1,500 de minimis exemption that previously supported cross-border e-commerce shipments into Thailand. The reforms were expanded further on March 30, when the Customs Department announced tariff realignments that could raise duties on products such as plastics, electronics accessories and household items to as high as 30–40%. Authorities said the changes are designed to protect Thai small and medium-sized enterprises (SMEs) from low-cost foreign imports and encourage greater domestic manufacturing competitiveness.
The reforms also place e-commerce platforms directly into Thailand’s tax collection system, requiring marketplaces to calculate duties and VAT at checkout, share transaction-level data with customs authorities, and maintain stronger compliance controls to prevent undervaluation and tax evasion. Logistics operators and customs brokers are expected to face increased administrative burdens as every imported parcel now requires full duty assessment and classification under Thailand’s Harmonized System (HS) code regime. Businesses relying heavily on low-value imports are being urged to reassess pricing structures, supply chains and contractual arrangements as the government moves toward a more protectionist trade framework. Officials estimate the measures could generate an additional THB 300 million in monthly revenue, while signalling a broader policy shift aimed at tightening oversight of foreign imports, digital commerce and investment activity within Thailand’s evolving economic landscape.
Editor’s Note: Thailand has overhauled its customs duty framework, ending the THB 1,500 exemption for low-value imports and raising tariffs on goods like plastics and electronics to protect domestic industries. The reforms also require e-commerce platforms to collect VAT and duties at checkout, with officials estimating an extra THB 300 million in monthly revenue while tightening oversight of foreign imports and digital commerce.