Taiwan’s PSA hopes to capitalize on Southeast Asia’s surge in server demand
This year, Passive System Alliance (PSA), a Taiwanese supplier of components, will start exporting printed circuit boards for servers from its new plant in Malaysia in an effort to meet the urgent need for supply chain diversification for sensitive technology products.
PSA is Taiwan’s second-largest passive component supplier. It stated at the beginning of 2018 that Global Brands Manufacture, one of its subsidiaries, would purchase Elna of Japan for 3.5 billion yen, or $23.7 million. Creating PCBs for Japanese automakers is Elna’s primary business. Given the growing demand for capacity outside of China, PSA was able to gain access to Elna’s production facilities in Malaysia and Japan, which proved useful as the Washington-Beijing trade war intensified. Previously, China or Taiwan accounted for all of PSA’s PCB output capacity.
https://ground.news/article/taiwans-psa-aims-to-tap-server-demand-boom-via-southeast-asia
Editor’s Note: Taiwanese passive component supplier PSA plans to leverage Southeast Asia’s increasing demand for servers by exporting printed circuit boards from its new Malaysian plant. With a focus on diversifying the supply chain for sensitive technology products, PSA aims to capitalize on opportunities arising from the growing demand for capacity outside of China amidst geopolitical tensions.
Carabao recognized for sustainable practices
Carabao Group has been listed in “The Sustainability Yearbook 2024,” an international publication that honors companies throughout the world for exceptional sustainable business practices.
The company stated that the accomplishment exemplifies the group’s “World Class Product, World Class Brand” vision and demonstrates comprehensive sustainable management across all aspects, including corporate governance (ESG) and environmental, social, and governance (ESM).
Carabao distinguished itself as a top-performing company by scoring in the top 15% globally among its peer industry sector.
https://beamstart.com/news/carabao-recognised-for-sustainable-practices-17077
BAAC unveiled a carbon credit plan
According to president Chatchai Sirilai, the Bank for Agriculture and Agricultural Cooperatives (BAAC) intends to buy 510,000 tonnes of carbon credits over the course of five years. The initiative is a reaction to Thailand’s objective of reaching net-zero, or a balance between greenhouse gas (GHG) emissions and absorption by 2065, and carbon neutrality by 2050.
The Low Emission Support Scheme (LESS) letters of recognition and carbon credits are being sold as part of this carbon credit project for the forestry industry by the Thailand Greenhouse Gas Management Organisation (TGO).
https://www.bangkokpost.com/business/general/2740449/baac-unveils-scheme-for-carbon-credits
Agency looks for cybersecurity partners
In order to provide cybersecurity to small businesses in the manufacturing sector, the National Electronics and Computer Technology Centre (Nectec) is creating an open-source Security Operation Centre (SOC)-as-a-service for potential partners to use.
Nectec is looking for cybersecurity service providers and system integrators to use a subscription-based model to roll out the solution for small and medium-sized enterprises (SMEs).
The service, which seeks to be a low-cost alternative for SMEs, requires partners to invest in threat intelligence data and cloud computing. The SOC service is being piloted by three factories.
https://www.bangkokpost.com/business/general/2740519/agency-seeks-partners-for-cybersecurity
Editor’s Note: The National Electronics and Computer Technology Centre (Nectec) is developing an open-source Security Operation Centre (SOC)-as-a-service to provide cybersecurity to small businesses in the manufacturing sector. Nectec is seeking cybersecurity service providers and system integrators to adopt a subscription-based model for delivering the solution to small and medium-sized enterprises (SMEs), aiming to offer a cost-effective alternative.
IEAT and Japanese companies focus on a green project
As part of its efforts to promote eco-friendly manufacturing, the Industrial Estate Authority of Thailand (IEAT) has partnered with two Japanese companies to carry out a feasibility study on a green utility project at Smart Park Industrial Estate in Rayong.
In order to avoid non-tariff barriers on their products sold to countries like those in the European Union, businesses must make their production processes more environmentally friendly.
The IEAT runs a deep-sea port at Map Ta Phut in Rayong as well as 68 industrial estates spread across 16 provinces.
https://beamstart.com/news/ieat-japanese-firms-eye-green-17074447718280
Editor’s Note: The Industrial Estate Authority of Thailand (IEAT) has collaborated with two Japanese companies to conduct a feasibility study on a green utility project at Smart Park Industrial Estate in Rayong, emphasizing eco-friendly manufacturing initiatives. This partnership aims to address non-tariff barriers by enhancing production processes to meet environmental standards, with IEAT overseeing various industrial estates across Thailand, including a deep-sea port in Rayong.
New VC funds to spur startup growth
After activity slowed during the pandemic and “crypto winter” the previous few years, several new venture capital (VC) funds are anticipated to accelerate the growth of companies this year.
The 1.3 billion baht Finno Efra Fund is one of the new funds. It is anticipated that True Incube, a startup incubator under True Corporation, will establish another VC fund.
The new fund will focus on digital transformation and digital transformation in the fintech, edutech, healthtech, agritech, and mobility tech sectors. The areas of industrial, marketing, human resources, travel, e-commerce, and lifestyle technology will be the main emphasis of the digital transformation.
https://www.bangkokpost.com/business/general/2737774/new-vc-funds-to-accelerate-growth-of-startups
Investment applications rise 43% in 2023
China was the largest foreign investor in Thailand last year, with a total of 848 billion baht, a five-year record, thanks to a 43% increase in applications, according to the Board of Investment (BoI).
BoI stated that pledges for foreign investments alone increased by 72% annually to 663 billion baht.
The electronics, automotive, and electric vehicle industries accounted for roughly a quarter of the total value of foreign projects approved by the BoI, with Chinese investment applications totaling 159.4 billion baht, according to the report.
The top three investors, after China, were the US, Japan, and Singapore.
Editor’s Note: In 2023, Thailand experienced a significant surge in investment applications, rising by 43%, with China emerging as the largest foreign investor with a record-breaking 848 billion baht investment. The Board of Investment (BoI) reported a substantial increase in pledges for foreign investments, particularly in industries like electronics, automotive, and electric vehicles, signaling growing confidence from global investors in Thailand’s economy.
Industrial production following an upturn
Industry observers speculated that the manufacturing sector may have peaked, with the improvement in January indicating the beginning of a gradual recovery in Malaysia’s total industrial production.
They stated that due to semiconductor sales and a favorable comparison basis, the country’s Industrial Production Index (IPI) is anticipated to progressively rise in the following months.
This year’s global semiconductor sales are predicted to expand by 13.1%, therefore according to chief economist Dr. Mohd Afzanizam Abdul Rashid of Bank Muamalat Malaysia Bhd, the IPI will steadily improve, especially for products related to semiconductors.
https://www.nst.com.my/business/economy/2024/02/1012367/industrial-production-recovery
Editor’s Note: Industry observers foresee a gradual recovery in Malaysia’s industrial production, noting a recent uptick in the manufacturing sector in January. With semiconductor sales expected to drive growth, particularly given a projected global expansion of 13.1%, experts anticipate a steady improvement in the country’s Industrial Production Index (IPI) in the coming months.
ESG quick guide for MSMEs released by SME Corp
To assist micro, small, and medium-sized businesses (MSMEs) in implementing environmental, social, and governance (ESG) practices, SME Corp Malaysia has released the ESG Quick Guide for MSMEs.
The goal of the guide is to make it easier for MSMEs to comprehend ESG. It was released by Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi during the National Entrepreneur and SME Development Council meeting on February 5 in Putrajaya.
The initiative is a part of the Ministry of Entrepreneur and Cooperatives Development’s (MECD) and SME Corp’s ongoing efforts to raise MSMEs’ awareness of the value of ESG and sustainability.
https://www.nst.com.my/business/esg/2024/02/1010883/sme-corp-unveils-esg-quick-guide-msmes
Editor’s Note: SME Corp Malaysia has launched the ESG Quick Guide for MSMEs to aid micro, small, and medium-sized businesses in adopting environmental, social, and governance (ESG) practices. Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi unveiled the guide during the National Entrepreneur and SME Development Council meeting, emphasizing its role in enhancing MSMEs’ understanding and implementation of ESG principles.
MCCC to strengthen bilateral relations between Malaysia and Cambodia
The Malaysia Cambodia Chamber of Commerce (MCCC) recently held its inaugural installation night and annual general meeting (AGM).
According to MCCC, the AGM featured thought-provoking debates, workshops for strategic planning, and an assessment of the chamber’s accomplishments in the previous year.
The chamber listed two upcoming events: a trade mission from Malaysia to Cambodia in July and a trade mission from Cambodia to Malaysia on April 25–28.
The goal of both trade missions, which will include roughly 150 delegates, is to improve economic links and bilateral trade relations between both countries.
https://luminews.my/news/1965208
Over 80% of MSMEs not prepared for ESG in the domestic sales and services sector
The majority of micro, small, and medium-sized firms (MSMEs) in the domestic sales and services sector recognize the need of environmental, social, and governance (ESG) compliance, but they lack the necessary resources to successfully implement the change.
Over two-thirds of Malaysian SMEs acknowledge the relevance of ESG, according to a mid-year survey conducted in September, according to Datuk William Ng, national president of the Small and Medium Enterprises Association of Malaysia (Samenta).
Less than 12% of respondents, meanwhile, said they were prepared for ESG implementation.
Editor’s Note: A significant majority of micro, small, and medium-sized enterprises (MSMEs) in Malaysia’s domestic sales and services sector acknowledge the importance of ESG compliance but lack the resources to implement it effectively. According to a survey by Datuk William Ng, less than 12% of Malaysian SMEs feel adequately prepared for ESG implementation, highlighting the need for further support and resources in this area.