Latest news with #Kulim
South China Morning Post
19-05-2025
- Business
- South China Morning Post
In the heart of ‘Silicon Malaysia', spiralling living costs dent big chip dreams
Despite headline-grabbing investments, factory workers in Kulim struggle to make ends meet as the cost of rent and other essentials surges At a quiet coffee shop on the outskirts of Kulim's sprawling industrial zone, Azmin unscrews the cap of his mineral water bottle, exhales deeply, and reflects on the gap between the ambitious promises of 'Silicon Malaysia' and the reality on the ground. From his vantage point as a recruiter for one of the region's fastest-growing semiconductor production hubs, the tech sector's promises of abundant job opportunities feel hollow. 'We haven't had much demand lately,' Azmin told This Week in Asia, requesting to be identified by only his first name for fear of losing future business. 'The last round of recruitment we handled was a few months ago for 20 people at a smaller factory.' While the government paints a picture of booming industry and economic transformation, Azmin sees another side of the story. Development has raised land prices, with houses and rents surging in an area that was once oil palm plantations and farmland. The result has been good for property speculators, but bad for everyone else, he said. A decade ago, Azmin bought a modest home for 95,000 ringgit (US$22,100). Today, similar houses fetch at least 300,000 ringgit. Kulim Hi-Tech Park, established 30 years ago, was built on 5,600 acres (2,300 hectares) of cleared farmland to support Penang's semiconductor boom. Azmin's family, originally from Penang, were among the first to spot the park's potential. German chipmaker Infineon's facility at Kulim Hi-Tech Park. Photo: Shutterstock Over the years, big names like Austria's AT&S and German chipmaker Infineon have moved in. Infineon last year pledged €5 billion (US$5.6 billion) to expand its facility, while AT&S recently launched a 5 billion ringgit (US$1.2 billion) plant in the park. Newsletter Every Saturday SCMP Global Impact By submitting, you consent to receiving marketing emails from SCMP. If you don't want these, tick here {{message}} Thanks for signing up for our newsletter! Please check your email to confirm your subscription. Follow us on Facebook to get our latest news. But for many, these headline-grabbing investments do not translate into prosperity. 'It's good that there are jobs, but factory workers earn just 1,700 ringgit,' Azmin said, referencing Malaysia's minimum wage. 'Renting a place in Kulim will cost at least 700 ringgit now. If a factory worker has a wife and two children, they won't have anything left after spending on necessities.' Kulim, home to about 120,000 people, was hit hard by pandemic-era lockdowns and has struggled to recover from the economic scars of Covid-19. Official figures show nearly 10 per cent of the district's population lives in poverty. But industry leaders argue that the tech sector offers some of the best pay in Malaysia. Workers in the electrical and electronics sector earn double the national average wage, according to the Malaysian Semiconductor Industry Association. 'With competition [in the industry], salaries will continue to move [upwards],' said the association's president, Wong Siew Hai. AT&S reports that entry-level engineers at its Kulim facility earn starting salaries of around 5,000 ringgit, while it says factory line workers take home over 3,000 ringgit a month – well above the minimum wage. A worker inspects semiconductor chips at a chip packaging company in Malaysia. Photo: Reuters Resource drain? Malaysia's government aims to attract 500 billion ringgit (US$116 billion) in semiconductor investments and produce 60,000 engineers and technicians by 2030. Kulim Hi-Tech Park management announced plans in November to double its area to 12,000 acres (4,900 hectares), highlighting the high demand for industrial space. However, rapid industrialisation comes at a cost. Semiconductor plants and data centres are notoriously resource-intensive, consuming vast amounts of electricity and clean water. Malaysia's water services commission warned earlier this year that existing data centres were already pushing water supplies to the brink. In Selangor, Negeri Sembilan and Johor states, the 101 data centres present collectively require 808 million litres (213.5 million gallons) of water daily, yet current infrastructure can only supply less than 20 per cent of that demand. A man wades through flood waters in Malaysia's Johor state in 2023. Photo: AFP The issue is not a lack of rainfall – Malaysia receives more than 970 million cubic metres (34.3 billion cubic feet) annually – but rather poor water management. 'We are already experiencing serious water issues despite the fact that we are water rich,' said Chan Ngai Weng, president of conservation group Penang Water Watch. Chan stressed the need for industrial users to adopt sustainable practices, including water recycling and rainwater harvesting. Without these measures, he warned, the rush to expand industrial capacity could leave household taps dry. 'Silicon Malaysia' may yet deliver on its promises, but for Kulim's workers and small businesses, the benefits so far are unevenly distributed. In the race to build the future, who will be left behind in the rush for progress?
South China Morning Post
19-05-2025
- Business
- South China Morning Post
In the heart of ‘Silicon Malaysia', spiralling living costs dent big chip dreams
At a quiet coffee shop on the outskirts of Kulim's sprawling industrial zone, Azmin unscrews the cap of his mineral water bottle, exhales deeply, and reflects on the gap between the ambitious promises of 'Silicon Malaysia' and the reality on the ground. From his vantage point as a recruiter for one of the region's fastest-growing semiconductor production hubs, the tech sector's promises of abundant job opportunities feel hollow. 'We haven't had much demand lately,' Azmin told This Week in Asia, requesting to be identified by only his first name for fear of losing future business. 'The last round of recruitment we handled was a few months ago for 20 people at a smaller factory.' While the government paints a picture of booming industry and economic transformation, Azmin sees another side of the story. Development has raised land prices, with houses and rents surging in an area that was once oil palm plantations and farmland. The result has been good for property speculators, but bad for everyone else, he said. A decade ago, Azmin bought a modest home for 95,000 ringgit (US$22,100). Today, similar houses fetch at least 300,000 ringgit. Kulim Hi-Tech Park, established 30 years ago, was built on 5,600 acres (2,300 hectares) of cleared farmland to support Penang's semiconductor boom. Azmin's family, originally from Penang, were among the first to spot the park's potential. German chipmaker Infineon's facility at Kulim Hi-Tech Park. Photo: Shutterstock Over the years, big names like Austria's AT&S and German chipmaker Infineon have moved in. Infineon last year pledged €5 billion (US$5.6 billion) to expand its facility, while AT&S recently launched a 5 billion ringgit (US$1.2 billion) plant in the park.
Malay Mail
14-05-2025
- Malay Mail
Teluk Intan FRU truck crash: Police, family bid emotional farewell as Constable Akmal Wafi laid to rest in Kedah
KULIM, May 14 — The Federal Reserve Unit (FRU) personnel, Constable Akmal Wafi Annuar, who was killed in Tuesday's crash in Teluk Intan, was laid to rest at the Tunku Abdul Rahman Putra Mosque cemetery in Sungai Limau, Lunas, this morning. Kulim Police chief Supt Zulkifli Azizan attended the funeral along with a team of FRU personnel and Akmal Wafi's family members and friends. The funeral was conducted according to Royal Malaysia Police (PDRM) funeral honours. Zulkifli also presented the national flag to Akmal Wafi's father, Annuar Yusof. The remains of the 28-year-old constable arrived at his family's residence in Lunas at 6.30 am today and were brought to the Tunku Abdul Rahman Putra Mosque for funeral prayers led by Imam Shahril Adzhar Abu Samah. Akmal Wafi was one of the nine FRU Unit 5 members who perished in the fatal crash involving the FRU truck and a gravel-laden lorry at Jalan Chikus-Sungai Lampam, Teluk Intan, on Tuesday. Meanwhile, Annuar said the entire family is coming to terms with the tragic passing of Akmal Wafi, remembering him not only as a dedicated officer but as a hero to his loved ones. 'He had only recently joined FRU Unit 5 earlier this year, after completing his training late last year. We accept his passing with a heavy his service was short, the honour and respect shown to him were immense. We are proud of him. Today, I see him as our family's hero,' he said. Recalling his son's final days, Annuar shared that Akmal Wafi, the eldest of five siblings, showed no unusual behaviour prior to his deployment. However, before heading into the operation, he had a light-hearted video call with his sister, Wardina, expressing excitement about an upcoming break and plans to return home on Tuesday. 'He joked and asked his sister to pick him up from Ipoh. I was told he had applied for a two-day leave. He was really happy about getting the leave, and even more so that his motorcycle had finally been repaired. But instead of coming home for a short holiday, he came home for good,' Annuar said, visibly holding back tears. Annuar also expressed gratitude for the smooth funeral process and extended heartfelt thanks to PDRM and FRU Unit 5 for their unwavering support during this difficult time. — Bernama
Free Malaysia Today
08-05-2025
- Automotive
- Free Malaysia Today
Unaffected by US tariffs, Austrian tech giant ramps up AI product output
AT&S microelectronics business unit executive vice-president Ingolf Schroeder said the firm's Kulim plant will be a main contributor to its growth. (Bernama pic) KULIM : Austrian tech giant AT&S says its operations in Malaysia are unaffected by the US's 'reciprocal' tariffs, as its products do not fall under Washington's targeted trade restrictions. Ingolf Schroeder, executive vice-president of AT&S's microelectronics business unit, said the company was monitoring the situation closely but that its facility in Malaysia had not been impacted so far. He said its high-end printed circuits boards and integrated circuits (IC) substrates – critical components used in semiconductors, smartphones, industrial electronics, automotive systems, medical devices, and artificial intelligence hardware – were shipped only to outsourced semiconductor assembly and test companies in Taiwan and Malaysia. 'We will continue to ramp up production at our plants in Austria and China as well,' he told reporters at AT&S's Malaysian plant in the Kulim Hi-Tech Park. AT&S, which operates in Austria, India, China, and Malaysia, is part of the broader supply chain serving US chip giant Advanced Micro Devices Inc, or AMD. The firm has invested over RM5 billion in its Malaysian site as part of a broader RM8.5 billion Phase 1 development plan involving two production sites, including RM600 million for research and development. AT&S chose Malaysia in 2021 as the site for its first Southeast Asia facility. In March, AT&S's Kulim facility started the high-volume manufacturing of high-end IC substrates. The serial production of AT&S's cutting-edge IC substrates caters almost exclusively to AMD, particularly for incorporation into high-performance and energy-efficient data centre processors. Schroeder said the Kulim plant would be a main contributor to the company's growth, helping the Austrian firm achieve its ambition of becoming one of the world's top three IC substrate suppliers in the coming years. 'Our Kulim operations started with only one customer, AMD, but we hope to expand our clientele base to three customers by the financial year of 2026, and then five customers the following year. 'These new potential customers could be chip designers or outsourced semiconductor assembly and test companies,' he said, adding that AT&S was focused on long-term growth, especially in producing next-generation AI hardware. 'If you believe AI will be the driving force, there will not be a downturn. The products we manufacture here are top-tier, robust and resilient. There is competition, but very few can produce these next-gen products because of their complexity.' Schroeder said the company was also adapting its supply chain strategy to support its Malaysian operations, with a push to grow local content. Currently, many raw materials are sourced from outside Malaysia, but he said AT&S was working to localise suppliers, especially for critical chemicals to strengthen its operational flexibility.
