ASEAN Biweekly News Updates-January 26- February 12

PSA hopes to capitalize on Southeast Asia's surge in server demand; Carabao recognized for sustainable practices; BAAC unveiled a carbon credit plan; Agency looks for cybersecurity partners; IEAT and Japanese companies focus on a green project; New VC funds to spur startup growth; Investment applications rise 43% in 2023; Industrial production following an upturn; ESG quick guide for MSMEs; MCCC to strengthen bilateral relations between Malaysia and Cambodia; Over 80% of MSMEs not prepared for ESG

Taiwan’s PSA hopes to capitalize on Southeast Asia’s surge in server demand
台灣的被動元件供應商 PSA 希望利用東南亞伺服器需求的增長來推動業務。

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.

T小編按: PSA 計劃通過其在馬來西亞新工廠出口印刷電路板,以利用東南亞對伺服器的增加需求。著重於為敏感技術產品多元化供應鏈,PSA 旨在抓住在地緣政治緊張局勢中,由於對中國以外地區產能需求增加而帶來的機遇。

Carabao recognized for sustainable practices
Carabao 因可持續實踐而受到表彰。

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.

BAAC unveiled a carbon credit plan
BAAC 推出了一項碳信用計劃。

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).

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.

T小編按:機構正在尋找網絡安全合作夥伴。泰國國家電子和計算機技術中心(Nectec)正在開發一個開源的安全運營中心(SOC)服務,以為製造業小型企業提供網絡安全。Nectec 正尋求網絡安全服務提供商和系統集成商採用基於訂閱的模式,將解決方案提供給中小型企業,旨在提供一種具成本效益的替代方案。

IEAT and Japanese companies focus on a green project
IEAT 和日本企業專注於一個綠色項目。

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.

T小編按:泰國工業區管理局(IEAT)與兩家日本公司合作,在雷董智慧園區進行一項綠色公用事業項目的可行性研究,強調生態友好型製造倡議。該合作旨在通過改善生產過程以滿足環境標準,解決非關稅障礙,IEAT 管轄著泰國各地的各種工業區,包括雷董的一個深海港口。

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.

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.


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.


ESG quick guide for MSMEs released by SME Corp
SME Corp發布MSMEs環境、社會和管治(ESG)快速指南

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.


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.

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.

T小編按:在馬來西亞國內銷售和服務業中,絕大多數的微型、小型和中型企業(MSMEs)認識到ESG合規的重要性,但缺乏有效實施所需的資源。根據Datuk William Ng的一項調查,不到12%的馬來西亞中小企業覺得自己對ESG實施準備充分,突顯了在這一領域需要進一步的支持和資源。