ASEAN Biweekly News Updates- April 13 – 28

Policymakers plan to draft more AI regulations; Solar giants want high US tariffs on panels from Asean; Four companies to invest in 15 power plants; Demand to increase renewable proportion; Somnics of Taiwan co-invests in manufacturing facility; Apple CEO Tim Cook is seeking to increase investment in Vietnam; FPT of Vietnam to invest $200 million in an AI using Nvidia chips; Apple will ‘look at’ manufacturing in Indonesia: CEO Cook

Policymakers plan to draft more AI regulations

Policymakers worldwide are increasingly focused on developing new regulations to govern artificial intelligence (AI), aiming to prevent ethical violations while fostering its responsible development. With the European Union’s recent approval of the AI Act, hailed as the world’s first comprehensive AI law, many countries, including Thailand, are poised to follow suit. Legal experts anticipate the emergence of comprehensive AI legal frameworks akin to the EU’s legislation, as nations seek to mitigate the risks associated with AI technologies. In Thailand, the National Digital Economy and Society Commission has already established AI ethic guidelines, with plans to convene a digital economy promotion subcommittee by the end of May. This committee will deliberate on drafting AI regulations aimed at enforcing ethical standards and overseeing AI developers and service providers.

Putchapong Nodthaisong, secretary-general of the National Digital Economy and Society Commission, highlighted the significance of these forthcoming regulations in ensuring adherence to AI ethics. The emphasis on governance and guidelines for generative AI reflects a global shift towards prioritizing responsible AI development while addressing potential risks and ethical concerns.

https://www.bangkokpost.com/business/general/2781934/policymakers-set-to-prepare-more-ai-rules

Editor’s Note: Policymakers worldwide, including those in Thailand, are actively crafting regulations to govern the development and deployment of artificial intelligence (AI). With a focus on ethical standards and oversight, these efforts aim to balance innovation with accountability to ensure responsible AI advancement.

Solar giants want high US tariffs on panels from Asean

Some of the world’s largest solar equipment manufacturers are urging the US government to impose significant tariffs on solar panels and cells imported from four Asian nations—Malaysia, Cambodia, Vietnam, and Thailand. This appeal comes from the American Alliance for Solar Manufacturing Trade Committee, comprised of companies worried about protecting their substantial investments in US manufacturing. The group accuses Chinese companies, operating factories in these Southeast Asian countries, of flooding the US market with solar panels priced below production costs. This influx has led to a price collapse of over 50%, posing a severe threat to domestically manufactured solar products. To address this concern, the US-based solar makers are seeking government intervention, requesting investigations and proposing tariffs ranging from 70.4% to 271.5% on imports, which constitute approximately 80% of solar panels used in the US. They argue that these imports unfairly benefit from subsidies, including those from Chinese government entities.

In parallel, policymakers globally are turning their attention to formulating new regulations to govern artificial intelligence (AI) and ensure adherence to ethical standards. This shift follows the approval of the European Union’s groundbreaking AI Act, considered the world’s first comprehensive AI legislation. Legal experts anticipate the development of comprehensive AI legal frameworks in many countries, Thailand included, in line with the EU’s initiative. Thailand’s National Digital Economy and Society Commission has already established AI ethic guidelines, with plans to further bolster regulation through the formulation of AI-specific laws. This proactive approach underscores the importance of governance and planned guidelines in promoting responsible AI development and mitigating associated risks, echoing broader international efforts to address AI ethics and governance concerns.

https://www.bangkokpost.com/business/general/2781557/solar-giants-seek-high-us-tariffs-on-asean-panels

Editor’s Note: Some of the world’s leading solar equipment manufacturers are urging the US government to impose substantial tariffs on solar panels imported from Malaysia, Cambodia, Vietnam, and Thailand. The move aims to protect domestic manufacturing investments from what they perceive as unfair competition fueled by Chinese companies operating in Southeast Asia.

Four companies to invest in 15 power plants

Local power and waste management companies in Thailand are embarking on a collaborative effort to invest in waste-to-energy infrastructure, aligning with the state’s bio-, circular, and green economic policies. Together, these companies aim to co-invest in the development of 12 waste-to-energy power plants and three refuse-derived fuel production facilities. This partnership not only seeks to enhance the country’s power generation capacity but also addresses the pressing need for effective waste management within the industrial sector. Supawat Khunvoravinij, acting managing director of Earth Tech Environment, emphasized the importance of this collaboration in tackling waste disposal challenges while contributing to sustainable energy production.

Key players involved in this initiative include Earth Tech Environment, Gulf Energy Development, Waste Tech Exponential, and Better World Green. These companies have come together to combine their expertise in waste recycling, power generation, and waste management to drive forward projects in both power generation and waste disposal. Already, a significant milestone has been achieved with the signing of a power purchase agreement with the Provincial Electricity Authority, signaling a commitment to advancing sustainable energy solutions in Thailand. According to Yupapin Wangviwat, deputy chief executive and chief financial officer of Gulf Energy Development, the timeline for the operation of these power plants is within the next two years, indicating swift progress towards achieving both environmental and energy objectives.

https://www.bangkokpost.com/business/general/2781167/four-companies-to-jointly-invest-in-15-power-plants

Editor’s Note: Four prominent companies in Thailand’s power and waste management sectors are collaborating to invest in 15 new infrastructure projects, including waste-to-energy power plants and refuse-derived fuel facilities. This joint effort aims to bolster the country’s energy capacity while addressing critical waste management challenges, aligning with Thailand’s green economic policies and sustainability goals.

Demand to increase renewable proportion

The Thai government is under pressure to raise the proportion of renewable power generation beyond the target of 50% outlined in the upcoming Power Development Plan (PDP), scheduled for finalization in the second quarter of this year. This call for an increase, from the current level of 10-12% of total power supply, stems from the nation’s commitment to achieving carbon neutrality by 2050. Tanachai Bunditvorapoom, chief executive of Absolute Clean Energy, emphasized the necessity of this adjustment, highlighting that while Thailand has plans to reduce carbon dioxide emissions in the power sector, efforts in other sectors remain unclear. Thus, increasing the renewable energy target in the PDP becomes crucial in aligning with the broader national goal of carbon neutrality.

Thailand’s announcement at the 26th UN Climate Change Conference in Glasgow in 2021 underscored its determination to address climate change seriously. Alongside the pledge to strive for carbon neutrality by 2050, the country also aims for a net-zero target by 2065. This commitment signals a significant shift towards sustainability and underscores the urgency of accelerating efforts to reduce carbon emissions across all sectors. By elevating the renewable energy target in the PDP, Thailand can bolster its position in achieving these ambitious climate goals while simultaneously driving innovation and economic growth in the renewable energy sector.

https://www.bangkokpost.com/business/general/2779925/call-to-hike-renewable-proportion

Editor’s Note: The Thai government is facing pressure to raise the proportion of renewable power generation beyond the planned 50% outlined in the upcoming Power Development Plan, aligning with its commitment to achieve carbon neutrality by 2050. This adjustment is deemed crucial in addressing climate change seriously and accelerating efforts to reduce carbon emissions across all sectors, signaling a significant shift towards sustainability and innovation in the renewable energy sector.

Somnics of Taiwan co-invests in manufacturing facility

The government’s initiative to position Thailand as a medical hub in Southeast Asia has spurred collaboration between Thai and Taiwanese medical equipment companies. Namwiwat Medical Corporation (Nam), a local sterilized medical equipment manufacturer, has joined forces with Zhubei-based Somnics Inc, known for its expertise in developing technologies to treat obstructive sleep apnea. This partnership aims to establish a new factory in Thailand, serving as an export base for various medical products, including those geared towards improving sleep quality. Viroj Chaiturdkiet, CEO of Nam, disclosed that the factory will operate as a joint venture and will be situated on a 10-rai plot of land in Samut Prakan.

Negotiations with the Board of Investment are underway to secure investment incentives for the medical business sector, actively promoted by the government. With plans to conclude the investment arrangement this month, construction of the factory is anticipated to commence shortly thereafter, with an estimated completion timeframe of two years. This collaboration underscores Thailand’s commitment to fostering innovation and growth in the medical industry, leveraging partnerships with international companies to bolster its position as a regional leader in healthcare innovation and manufacturing.

https://www.bangkokpost.com/business/general/2778349/taiwans-somnics-co-invests-in-factory

Editor’s Note: Namwiwat Medical Corporation and Somnics Inc. of Taiwan are teaming up to establish a new medical manufacturing facility in Thailand, driven by the government’s initiative to position the country as a medical hub in Southeast Asia. This collaboration aims to leverage each company’s expertise to produce medical products, including those targeting sleep apnea treatment, reinforcing Thailand’s commitment to innovation and growth in the healthcare industry.

Apple CEO Tim Cook is seeking to increase investment in Vietnam

During his two-day working visit to Vietnam, Apple CEO Tim Cook met with Vietnamese Prime Minister Pham Minh Chinh on April 16 in Hanoi. Cook provided an overview of Apple’s operations in Vietnam, expressing his satisfaction with the achievements made in cooperation with local partners. He emphasized the mutually beneficial nature of their relationship and expressed his optimism for further collaboration in the future, aiming for even greater accomplishments. In response, PM Chinh assured Cook of Vietnam’s commitment to supporting Apple’s investment and expansion efforts in the country. He announced the establishment of a working group dedicated to facilitating Apple’s endeavors, emphasizing the importance of a rapid, robust, sustainable, and enduring partnership.

Cook reiterated Apple’s dedication to enhancing cooperation and investment in Vietnam, particularly in the development of high-tech products and applications for the App Store. He pledged to increase procurement from Vietnamese suppliers and to support the country’s creative innovation initiatives. Cook also acknowledged the significant contributions of Vietnamese application developers to Apple’s global products. Notably, he highlighted Apple’s substantial investment of nearly US$16 billion in 150 Vietnamese suppliers since 2019. Furthermore, Cook proposed potential areas of collaboration in clean energy, digital transformation, and human resource training, underscoring Apple’s commitment to contributing to Vietnam’s socio-economic development goals.

https://tuoitrenews.vn/news/business/20240423/apple-keen-on-boosting-investment-in-vietnam-ceo-tim-cook/79514.html

FPT of Vietnam to invest $200 million in an AI using Nvidia chips

FPT, in collaboration with Nvidia, intends to bolster AI research in Vietnam, aiming to develop AI applications and solutions, including generative AI and autonomous driving, at the planned data center factory. FPT Chairman Truong Gia Binh outlined the company’s vision to establish factories not only in Vietnam but also in potential markets like Japan and South Korea. The partnership with Nvidia marks a significant step towards realizing FPT’s ambition of positioning Vietnam as an AI hub, leveraging Nvidia’s support in technology, business development, and talent training. Additionally, the firms signed a comprehensive strategic partnership agreement, solidifying their commitment to collaborative efforts in advancing AI research and development.

Nvidia’s CEO, Jensen Huang, expressed the company’s desire to expand partnerships with Vietnam’s top tech firms and support talent development for AI and digital infrastructure. Nvidia’s Vice President of Worldwide AI Initiatives, Keith Strier, highlighted the multifaceted collaboration with FPT, emphasizing tailored agreements and strategies for various operating units within FPT. While Nvidia has already invested over $250 million in Vietnam, it remains uncertain whether the new partnership will lead to further investments. FPT, recognized as Vietnam’s most valuable technology company, boasts a market capitalization of $5.5 billion and offers a range of AI, cloud, and big data services, with total revenues exceeding $2 billion in the previous year.

https://tuoitrenews.vn/news/business/20240423/vietnam-s-fpt-to-invest-200-million-in-ai-factory-using-nvidia-chips/79507.html

Editor’s Note: FPT of Vietnam plans to invest $200 million in AI research utilizing Nvidia chips, aiming to develop applications like generative AI and autonomous driving. This collaboration between FPT and Nvidia signifies a significant step towards positioning Vietnam as a hub for AI innovation, supported by Nvidia’s technology and FPT’s market leadership in technology services.

Apple will ‘look at’ manufacturing in Indonesia: CEO Cook

Following a meeting with Indonesia’s President Joko Widodo, Apple CEO Tim Cook expressed the company’s openness to considering manufacturing operations in Indonesia. Cook indicated that the discussion centered on the president’s desire to foster local manufacturing, a prospect Apple is willing to explore. He emphasized the vast investment potential in Indonesia and expressed confidence in the country’s prospects, affirming Apple’s commitment to contributing to its economic development.

Apple’s interest in diversifying its manufacturing base away from China has been evident in recent years, particularly following disruptions caused by the Covid-19 pandemic. With operations at its main iPhone factory in China impacted, Apple has accelerated efforts to broaden its manufacturing footprint. Vietnam has emerged as a significant beneficiary, serving as one of Apple’s major manufacturing hubs outside of China. The company’s increased focus on Vietnam is evident, with products like MacBook, iPad, and Apple Watch being manufactured there. Cook’s recent visit to Vietnam underscores Apple’s commitment to expanding its manufacturing presence in the region. Additionally, Apple has intensified its manufacturing efforts in India, with reports indicating a significant increase in iPhone production in the country over the past year.

https://www.cnbc.com/2024/04/17/apple-will-look-at-manufacturing-in-vietnam-tim-cook.html

Malaysia AI Storage: A new multi-million venture supported by Phison.

KUALA LUMPUR: Matrix Connexion (MatrixC) has received the Google 2024 Cloud Sales and Services Partner of the Year Award for Malaysia marking the ongoing spirit of innovation and collaboration that defines the industry. The company was recognised for its achievements in the Google Cloud ecosystem, supporting global customers throughout its entire cloud journey. 

The services partner category helps customers with end-to-end, artificial intelligence (AI)-enabled solutions and services in data, IT infrastructure and application modernisation, security, work transformation and sustainability.Google Cloud corporate vice president of global ecosystem and channels said Google Cloud’s Partner Awards celebrate the transformative impact and value that partners have delivered for customers. 

Editor’s Note:  The establishment of MaiStorage presents a promising opportunity for Malaysia to leverage cutting-edge technology and nurture local talent in the rapidly evolving field of AI storage. By providing extensive training and attractive salaries to students, MaiStorage not only fosters innovation but also contributes to the country’s economic growth and competitiveness in the global tech landscape.

https://www.malaymail.com/news/malaysia/2024/04/22/malaysia-ai-storage-a-new-multi-million-venture-supported-by-phison/130229

Masverse unveils platform to “revolutionise” digital ecosystem.

KUALA LUMPUR: Blockchain specialist Masverse Sdn Bhd has launched MasChain, a platform to “revolutionise” the digital ecosystem for government, enterprises and industries by enhancing the security and trustworthiness of transactions via Proof of Authority (PoA). Masverse also signed two memorandums of agreement (MoA) with Gambit Group Sdn Bhd for enhanced custodian wallet services and Intelligence Traceability Sdn Bhd for halal compliance and recycling product traceability services. On top of that, it signed five other MoUs namely with Vero AI Sdn Bhd (to establish e-halal ecosystem within Asean countries), Jabo Plantation Sdn Bhd (for smart farming and tokenisation of the Jaboticaba Plantation), JomStay Digital Technology Sdn Bhd, Accelerator Resources Sdn Bhd and Asia Digital Bank Ltd.

MasChain redefines the approach to identity verification, transaction security, and information storage, tailored to meet client-specific needs, thereby digitally transforming Malaysia’s cyber landscape. MasChain was designed to cater to various needs and applications, from financial technology, halal traceability, education, retail and supply chain management to digital identity and beyond, and for authorities and businesses to benefit from a blockchain solution.

Editor’s Note: MasChain’s launch, and strategic partnerships signal a significant step towards harnessing blockchain technology for enhanced security and trust in Malaysia’s digital ecosystem. By democratizing blockchain solutions and addressing specific industry needs like halal traceability and smart farming, Masverse is poised to drive innovation and efficiency across sectors while bolstering Malaysia’s position as a leader in digital transformation.

https://www.nst.com.my/business/corporate/2024/04/1041778/masverse-unveils-platform-revolutionise-digital-ecosystem

Matrix Connexion gets Google accolade for supporting global customers

KUALA LUMPUR: Matrix Connexion (MatrixC) has received the Google 2024 Cloud Sales and Services Partner of the Year Award for Malaysia marking the ongoing spirit of innovation and collaboration that defines the industry. The company was recognised for its achievements in the Google Cloud ecosystem, supporting global customers throughout its entire cloud journey. The services partner category helps customers with end-to-end, artificial intelligence (AI)-enabled solutions and services in data, IT infrastructure and application modernisation, security, work transformation and sustainability.

MatrixC chief executive officer Sean Tay said the company has pivotal projects, including its partnership with the Ministry of Education under the Digital Learning Initiative which has been the highlight of MatrixC’s journey. He added that implementing Google Workspace for 5.5 million users has revolutionised digital education in Malaysia, enhancing the capabilities of students and educators across the country. This monumental achievement, completed in a record three months, marked the largest single commercial deal for Google Workspace in the non-education sector, and underscored our position as a leader in the industry. Tay noted that MatrixC will remain committed to pushing the boundaries of innovation, delivering unparalleled service, and creating lasting impacts in the world of Google Cloud solutions.

Editor’s Note: Matrix Connexion’s recognition as the Google 2024 Cloud Sales and Services Partner of the Year for Malaysia underscores its exemplary contributions to the digital landscape, particularly in revolutionizing education and facilitating government migration to Google Workspace. By pushing boundaries in innovation and service delivery, MatrixC not only elevates its own standing but also enhances Malaysia’s position as a leader in leveraging technology for societal advancement.

https://www.nst.com.my/business/corporate/2024/04/1040029/matrix-connexion-gets-google-accolade-supporting-global-customers

CGS International unveils new brand and vision following purchase of CGS-CIMB Securities

KUALA LUMPUR: CGS International Securities Malaysia (CGS MY) has introduced its new brand and vision following the complete acquisition of CGS-CIMB Securities (Malaysia) by China Galaxy Securities (CGS) on Dec 29, 2023.  This rebranding includes a new corporate name and updated logo that reflects the company’s heritage while signaling its growth trajectory.  According to CGS MY, its new name builds upon the positive brand equity of the CGS-CIMB joint venture and its capabilities, both locally and regionally through its network. The acquisition is expected to enhance CGS International Securities Pte Ltd’s networks in China and Asean, specifically in Malaysia, Indonesia, Singapore and Thailand.

CGS MY chief executive officer Azizah Mohd Yatim said Malaysia is in a unique position to offer the region and the world, products and solutions that meet with the social and ethical values of many investors and businesses, such as Islamic finance and sustainability. These include enhancing our platforms, customer service and experience, whilst broadening our advisory and equity capital market capabilities and wealth management solutions,” she said at CGS MY rebranding launch event today. Azizah also noted that the company has plans in the pipeline to grow its private equity and venture capital business.  She said by tapping into group-wide capabilities, it will be able to transform CGS MY into a formidable player in the highly competitive financial services sector.  

Editor’s Note: CGS International Securities Malaysia’s rebranding post-acquisition signals a strategic move to leverage its expanded capabilities and regional networks, benefiting both clients and investors in Malaysia and across ASEAN. By focusing on growth pillars like enhancing platforms and expanding into new areas like private equity, CGS MY aims to strengthen its position in the competitive financial services sector while delivering innovative solutions and democratizing access to investment opportunities.

https://www.nst.com.my/business/corporate/2024/04/1041561/cgs-international-unveils-new-brand-and-vision-following-purchase

Smart#1 one of Malaysia’s most preferred premium EVs

KUALA LUMPUR: ​Proton New Energy Technology Sdn Bhd (Pro-Net)’s flagship electric vehicle (EV) model, smart#1, is ranked third in the local EV SUV category for cars worth more than RM180,000, making it one of the most preferred premium EVs in Malaysia. smart#1 was designed by Mercedes-Benz and built on Geely’s sustainable electric architecture. The smart #1 sold 100 units within a month, setting a new sales record.

The Malaysian EV market saw exponential growth in recent years, with EV sales volume surging from 3,079 units in 2022 to 11,624 units in 2023, accompanied by a significant increase in market share from 0.43 per cent to 1.45 per cent. Against this backdrop of rapid electrification and shifting consumer preferences, the company said it emerged as a frontrunner, capturing the hearts and minds of Malaysian consumers with its commitment to innovation and customer-centricity. Additionally, smart Malaysia’s collaboration with key stakeholders and expansion of its dealer network from 10 to 13 locations. This includes the establishment of the first-ever community-centric hub in East Malaysia, underscores its commitment to meeting the evolving needs of Malaysian consumers and driving EV adoption across the country.

Editor’s Note: Proton New Energy Technology’s success with the smart#1 EV underscores Malaysia’s growing appetite for electric vehicles and marks a significant milestone in the country’s transition towards sustainable transportation. As the company continues to innovate and expand its offerings, its commitment to meeting consumer needs and driving EV adoption holds the potential to further accelerate Malaysia’s shift to greener mobility solutions.

https://www.nst.com.my/news-cars-bikes-trucks/2024/04/1038454/smart1-one-malaysias-most-preferred-premium-evs)