Business

Austrian technology company AT&S has chosen Malaysia for its first Southeast Asian manufacturing facility, investing 8.5 billion ringgits in the Kulim High-Tech Park. The project is expected to create 5,000 high-tech jobs and will focus on producing high-quality printed circuit boards and integrated circuit substrates.

The Malaysian labour market experiences pressure due to ongoing lockdowns. Despite the unemployment rate improving to 4.6% in April 2021, economists warn of potential future increases. Manufacturing sectors continue operating at reduced capacity, navigating supply chain disruptions and business constraints while following strict standard operating procedures.

The Malaysian government has extended the current tax exemption for corporate investors' income from retail money market funds through January 1, 2022. This fiscal measure aims to provide continued support to businesses amid ongoing economic challenges from the pandemic.

Malaysia's Ministry of Finance plans to implement fully cashless payments for government services by 2022. Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz aims to improve transaction safety, governance, and reduce potential fraud through digital payment strategies under the MyDigital initiative.

Despite ongoing COVID-19 restrictions and record infection rates, Malaysia continues to attract foreign direct investment. Economists like Lee Heng Guie suggest that while current shutdowns may impact investor sentiment, the country's medium-term economic prospects remain promising.

The global semiconductor chip shortage is severely affecting automakers, leading to reduced production and higher prices. Caused by increased demand for electronics during the COVID-19 pandemic and disrupted by natural disasters, experts predict the shortage will continue into 2022.

Serba Dinamik Holdings is under scrutiny after its auditor KPMG raised concerns about verifying contracts with 11 customers. Major shareholders like PNB and EPF are worried, and the company plans to appoint an independent firm to review the contract issues while the securities management investigates.

The FAO Food Price Index has risen for 12 consecutive months, reaching 127.1 points in May 2021. Compared to April, prices increased 4.8%, the highest monthly growth since October 2010, and have surged nearly 40% since May 2020, reflecting significant global food market volatility.

Malaysia's trade performance surged in April 2021, with exports reaching RM 105.6 billion, representing a 63% year-on-year increase. The Department of Statistics reported a trade surplus of RM 20.5 billion, driven primarily by strong domestic exports.

After being outbid by DNeX for SilTerra Malaysia in February, Foxconn is now in preliminary discussions to acquire a minority stake in the Malaysian chipmaker. Sources suggest the negotiations are ongoing but not yet finalized, with potential for collaboration in semiconductor expansion.