Latest news with #Asean-based
New Straits Times
29-07-2025
- Business
- New Straits Times
Malaysia, Asean must create tech MNCs to compete globally
KUALA LUMPUR: Malaysia must work towards developing more tech-driven companies capable of expanding into Asean-based multinational corporations (MNCs) and ultimately making a mark on the global stage. Deputy Investment, Trade and Industry Minister Liew Chin Tong said one of the key challenges is overcoming an outdated mindset that assumes Malaysia and Asean lack technological capabilities and must rely solely on foreign innovations. "If we invest sufficiently and if we channel the capital market into the direction of investing in technologies and not into creating more real estate bubbles, we will see the rise of Asean technologies. "We should also see ourselves as creating technologies for the bottom billions of the world's population," he said. Liew said this in his keynote address at the Securities Industry Development Corporation (SIDC)–Capacity-building Alliance of Sustainable Investment (CASI) Sustainable and Responsible Investment (SRI) Conference here today. He also highlighted that while there is frequent discussion about supporting small and medium enterprises (SMEs), in practice, foreign MNCs often receive more assistance. He added that there remains a critical gap in efforts to grow homegrown, technology-based MNCs in Malaysia and across Asean. "We are not doing enough to build Malaysian and Asean tech-based MNCs. The capital market may need to reimagine the future of Malaysian companies and their roles in the region. "We need to see more local firms with technology capabilities growing into Asean MNCs and eventually gaining a global footprint," he said. Looking ahead, he said Asean should aim to produce its own version of major global tech players such as Samsung, Huawei or TSMC in the next 20 years. He added that the world is now in a different phase of global history, and this is the time to act with courage and vision. Liew also said Malaysia must shape its capital market in ways that can influence not just the region but also the world through fresh and forward-looking ideas. These ideas, he said, should help build sustainable economies and societies where people are prosperous and fulfilled, in line with the ideals of a Madani society. Furthermore, Liew also emphasised that Malaysia and Asean must not remain bystanders but instead become active participants in shaping the future of the nation, the region, and the world. He outlined several key challenges that must be addressed to ensure sustainable growth and resilience. Firstly, he said Malaysia can no longer depend solely on the United States as the consumer of last resort and must diversify its export markets to reduce reliance on any single economy. "Second, it is not enough to diversify if the rest of the world lacks the purchasing power to buy our products. We need stronger global demand. "Third, to sustain demand, we must ensure people have the means to consume. If consumers do not exist, we must create them by making our own population wealthier and building a strong middle class. We must also hope for rising incomes across Asean. "Fourth, all of this must happen while our societies are aging rapidly. Malaysians and the people of Asean must become prosperous before they grow old," he added. Another pressing challenge is the growing threat of global populism driven by widening inequality. Liew said when large segments of the population feel excluded or have little to lose, the result is often social and political instability. This, he added, can be addressed by improving wages and narrowing the wealth gap to enable more people to join the middle class and become active consumers in the economy.
Business Times
01-06-2025
- Business
- Business Times
AI demand drives chip equipment sales forecast to new highs but tariff jitters cloud outlook
[SINGAPORE] Fuelled by the explosive demand for artificial intelligence (AI), global semiconductor manufacturing is poised for growth, with equipment sales projected to hit a record US$121 billion this year – surpassing last year's high – even as geopolitical tensions loom large. While high-end AI models continue to push demand for more powerful and efficient chips, there is also growing interest in low-power AI semiconductors from global firms looking to integrate AI into everyday operations, said Alvin Nguyen, senior analyst at Forrester. 'Generative AI is an obvious driver of semiconductor growth,' he noted, adding that demand is also rising for chips used in Internet of Things (IoT) and edge computing devices. Industry group Semiconductor Equipment and Materials International (Semi), similarly expects long-term semiconductor equipment demand to be driven by advances in AI-related technologies. Global sales of semiconductor manufacturing equipment by original equipment manufacturers did better than expected, increasing 10 per cent to US$117.1 billion in 2024. That momentum is expected to continue, with sales forecast to rise to US$121 billion in 2025, and further to US$139 billion by 2026, driven by growth across both front-end and back-end segments. The front-end segment typically includes the wafer fabrication stage, while the back-end segment refers to assembly, packaging and testing. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up In Singapore, industry players see AI as a long-term catalyst, with demand expected to remain strong across multiple application areas. Executive director Ang Wee Seng of the Singapore Semiconductor Industry Association (SSIA) expects AI-related demand to remain robust over the next one to two years, led by investments in data centres, edge computing and generative AI applications. 'This structural growth is creating new requirements across the value chain, from chips to cooling systems, and will continue to be a strong driver for the industry,' said Ang, adding that equipment manufacturers should expect a moderate rebound in demand by mid-2025. Ang noted, however, that the industry is still working through the tail-end of the 2023 oversupply. While inventory levels are improving and demand is picking up in consumer electronics, automotive and industrial segments, the recovery remains uneven across markets. He also flagged that Asean-based suppliers could face pressures from the recalibration of the US trade policies, underscoring the importance of diversification and regional collaboration. Similarly, Forrester's Nguyen pointed to the uncertainty created by tariffs, which have delayed investment decisions by some semiconductor players. Big plus for smaller players Smaller players such as Grand Venture Technology (GVT) and Frencken Group are well-positioned to ride the AI-driven wave, said SSIA's Ang, provided they remain agile and responsive to fast-evolving customer needs, such as precision components for advanced packaging and AI accelerators. However, their smaller scale also makes them more vulnerable to tariff shifts. In this environment, supply chain resilience and broader regional market access will be critical to weathering the challenges ahead. Conversely, Nguyen from Forrester explained that these companies may also benefit from supply chain impacts as the larger manufacturers look for alternative partners to simplify their supply chain logistics and lower overall risk. Both GVT and Frencken Group made it to the 2025 edition of RHB's Top 20 Small Cap Jewels report, which highlights high-potential small-cap companies in Singapore. Analysts from RHB and DBS are sanguine about the prospects of Frencken Group, which saw net profit rise 12 per cent to S$10 million in the first quarter of FY2025. RHB analyst Alfie Yeo expects Frencken Group's outlook for the remainder of the first half to remain stable, with growth likely to continue despite tariff-related headwinds. In fact, Yeo expects minimal tariff impact, since the group's exposure to the US is relatively small, and the tariffs primarily affect its customers rather than the company itself. The group's sales to a key customer in Europe, along with a rebound in Asian demand helped boost the semiconductor segment revenue of its mechatronics division by 33.7 per cent to S$106.2 million. This in turn drove revenue higher to S$215.8 million – up 11.5 per cent from the corresponding year-ago period. Yeo said that the house remained 'upbeat on Frencken Group on the back of the growth in its semiconductor and medical segments' and maintained its recommendation of 'buy', with a target price of S$1.48. DBS analyst Ling Lee Keng also maintained her 'buy' recommendation on the group, adding that its expansion in its front-end equipment is set to boost revenue. Ling mentioned that global industry association Semi expects the demand rebound to be accompanied by new highs in wafer shipments and surges in demand for silicon, supporting AI and various industrial applications. However, though the upward trend can remain intact, Ling also sees a slower momentum in growth, citing cautious market sentiments as 'pickings are likely to be harder after the low-hanging fruits dwindle'. She also maintains a 'buy' recommendation for semiconductor player GVT, which reported a 96.4 per cent jump in earnings to S$10.9 million for FY2024 from a year ago, beating DBS' estimates. Revenue grew 43.3 per cent to S$159.5 million, more than half of which came from the semiconductor segment. For the first half of 2025, DBS projected that GVT could post year-on-year revenue growth of 31.7 to 40.5 per cent, reaching between S$90 million and S$96 million on the back of rising demand for AI-related and complexity-driven equipment sales. The equipment maker is aiming to move up the value chain by upgrading its facilities with advanced semiconductor manufacturing technologies. Its acquisition of ACP Metal Finishing has also helped stabilise and diversify its customer base, Yeo noted. He also observed that GVT would have minimal impact from US tariffs, with less than 10 per cent exposure to them in FY2024. GVT's key customers are in the Asia and Europe markets. 'I think these companies are on the right track and working with the right semiconductor customers who are involved in the AI chip supply chain,' said Maybank analyst Jarick Seet. Asean will stay a key player in the global semiconductor supply chain, and trying to recreate what it has even briefly in the US won't be easy, he said. Still, Seet cautioned that no single trend can carry the industry. The semiconductor market's long-term success will hinge on sustained demand across a range of sectors.
Malaysian Reserve
02-05-2025
- Business
- Malaysian Reserve
Capital A eyes Hong Kong dual listing
CAPITAL A Bhd is exploring a potential dual listing on the Hong Kong Stock Exchange to expand its investor reach and fuel growth across its digital and aviation services. The move follows engagement with HKEX and reflects the group's strategy to attract investors, especially from Mainland China, who are increasingly interested in Asean-based companies. Its CEO Tony Fernandes in a press statement today said the listing would amplify Capital A's global story, particularly for non-aviation units like Asia Digital Engineering, Teleport, and AirAsia MOVE. An international investment bank is set to be appointed to advise on the structure and timeline, pending regulatory and internal approvals. The announcement comes as Capital A makes strong progress on its PN17 regularisation plan, targeting completion by June 2025. Milestones include the near-finalisation of a RM1 billion AirAsia X private placement, regulatory clearance from Thailand's SEC, lender approvals, and plans to dispose of its aviation businesses to AAX. Financial audits for FY2024 have been completed with robust Q1 2025 results. While the latest audit includes a going concern note, the company attributes it to procedural timing rather than operational weakness. Looking ahead, Capital A plans to reactivate its full aircraft fleet by July and focus on becoming a leaner, more globally competitive group. –TMR
