Penang International Financial Centre in talks with BNM, Securities Commission
'The results have been presented to the state Cabinet, and we are committed to realising this long-term project,' Chow said during an investiture ceremony at Dewan Seri Pinang. The PIFC will span nearly 100 acres, featuring financial facilities such as fund management, fintech zones, and an international convention centre.
The initiative aligns with the New Industrial Master Plan 2030 and the National Semiconductor Strategy, aiming to attract capital for the Northern Corridor's semiconductor sector. Chow also highlighted the Sedusun Tech Valley project, which is set to transform Penang into an 'Agricultural Silicon Valley' by promoting smart farming for higher yields.
Infrastructure upgrades remain a priority, with plans to expand the Federal Highway from Bayan Lepas to Teluk Kumbar and commence the Juru-Sungai Dua Elevated Expressway by late 2025. Chow urged federal support for these projects under the 13th Malaysia Plan. - Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
Bursa starts strong after Wall St's Friday rally
KUALA LUMPUR: Bursa Malaysia is starting the week on a on positive note following Wall Street's strong Friday closing, even as as domestic corporate earnings continue to trickle in and the US tariffs deadline approaches. At 9am, the benchmark FBM KLCI was up 4.29 points to 1,538.05, hovering near the high achieved in last week's trading. Malacca Securities said in a note that positive sentiment on Wall Street was on a rise given developments in the tariffs war coupled with the earnings season hitting its stride. "With recent developments toward de-escalating the trade war, the US-EU trade deal capping tariffs at 15% has boosted Wall Street's positive sentiment. "With more than 100 companies releasing their earnings results this week, coupled with key economic data such as JOLTS, ADP payrolls, and initial jobless claims, we expect upbeat sentiment to persist," it said. Given these developments, the research firm said positive sentiment from the US is expected to spillover onto the local market. However, TA Securities expects the local index to remain range-bound over the week as investors are likely to adopt a wait-and-see approach in anticipation of details over the 13th Malaysia Plan for potential domestic catalysts and US-Malaysia trade developments ahead of the Aug 1 deadline. "As for stock picks for this week, key index heavyweights and lower liners in the banking, telco, pharmaceutical, construction and technology sectors such as AmBank, CIMB, Maxis, Telekom Malaysia, Duopharma , Hiap Teck, Sunway Construction and VS Industry should attract bargain hunters looking for recover plays," it said in its market commentary. In early share price movements, Nestle continued its bullish ascent, rising RM1.92 to RM87.42. The share put on about 13% last week following its earnings announcement that showed a strong recovery on improved operational efficiency and sales momentum. YTL Corp gained eight sen to RM2.56 on chart-topping volume of 10.85 million shares changing hands, while subsidiary YTL Power climbed nine sen to RM4.24. Telekom Malaysia rose seven sen to RM6.80.
The Sun
2 hours ago
- The Sun
Price of scan to pay
THE pandemic brought many things with it, mostly bad, but it also paved the way forward for others, such as how it radically changed consumer habits by triggering a huge shift towards digital payments. In Malaysia today, a quick scan of a QR code can pay for anything from a small pack of nasi lemak to a full-blown car wash. Platforms such as Touch 'n Go (TNG) e-wallet, GrabPay, Boost and MAE by Maybank are well on their way to becoming a crucial part of everyday life. However, the adoption of digital wallets is not an exclusively positive phenomenon. In a country where cash was king for a long time, are e-wallets truly a superior option? The case for e-wallets ➤ Convenience at scale Scan-to-pay has taken hold in urban areas, especially among younger consumers. The TNG e-wallet, for example, claims to have over 400,000 merchant touchpoints nationwide. From paying for parking to transferring duit raya, the reach is undeniable. ➤ Cashback, coins and perks Digital wallets are not just functional – they are rewarding. Boost Coins, GrabRewards and the occasional 20% cashback deals have normalised gamified spending. For high-frequency users, especially in Klang Valley, these incentives offer tangible savings. ➤ Built-in transaction records E-wallets log every transaction automatically, even if the in-app records are not automatically updated. This is not just helpful for budgeting, it also serves as a quiet nudge toward financial accountability, especially for younger Malaysians managing freelance or gig-based incomes. ➤ Reduced theft risk Cash is vulnerable. Lose it and it is gone. E-wallets, on the other hand, are protected by PINs, biometrics and in most cases, remote lock features. Bank Negara Malaysia's Risk Management in Technology policy also requires service providers to meet certain security standards. The catch ➤ Rural disconnect Pushing an agenda for a cashless society first requires everyone to have similar easy access to the infrastructure required, which may not be the case in rural areas, where infrastructure can vary greatly not only between each other, but with cities. More often than not, cash still dominates in smaller towns and pasar malam stalls. ➤ Dependency on connectivity E-wallets are only as reliable as your internet connection. Payment failures due to weak signal or app downtime remain a frustration. Offline QR payment options exist but are not widely implemented. ➤ Easier to overspend Tap, confirm, done. The physical 'pain' of handing over cash disappears with digital payments. That psychological distance can lead to impulse spending, which is an issue particularly relevant for teens, students and even adults with weak willpower. ➤Data is not just yours E-wallets track when, where and what users spend their digital currency on. That data can be used for targeted ads or internal analysis. Malaysia's Personal Data Protection Act provides some protection, but concerns have been raised over its effectiveness. Middle ground In a top-down structured environment with streamlined digital payments from cities, chain retailers, parking systems and toll booths, to name a few, going cashless makes sense. For everything else, cash remains almost as essential. Additionally, the government is not pushing to eliminate cash, with Bank Negara Malaysia's agenda being a cashless-ready society, where digital tools are an option, rather than a be-all, end-all mandate. It allows room for further tech adoption without necessarily alienating older users, low-income earners or communities without the proper infrastructure in place. E-wallets are without a doubt useful and efficient. It has evolved fast in the past six years and will continue to do so, but in Malaysia, where the digital divide is still real, they work best as a supplement, not a full replacement, for cash. The smartest move for most? Use both. Let digital tools make your life easier but do not get rid of the backup plan in your wallets and purses just yet.
The Star
3 hours ago
- The Star
‘Muted, uneven' recovery for semicon industry
PETALING JAYA: Local semiconductor players continue to navigate a period of heightened uncertainty as a convergence of tariff and trade uncertainty, supply chain dynamics and foreign-exchange (forex) volatility continue to cloud the outlook for the sector. Fortress Capital Asset Management Sdn Bhd chief executive officer Thomas Yong said the industry is likely to experience a period of 'muted and uneven recovery' in the next two to three quarters. In particular, factory utilisation rates in segments tied to consumer electronics may remain muted, and earnings for the second quarter of 2025 (2Q25) is expected to be 'relatively stagnant on a sequential basis'. 'The market would remain volatile, reacting sharply to news related to US-China trade policies, tariff deadlines, and macroeconomic data prints. This period will test investor patience,' he told StarBiz. Yong added that there is a bifurcation in demand in the chip industry, where the artificial intelligence (AI) and data centre markets are 'booming' while the recovery in consumer electronics like smartphones and personal computers remains 'tepid and fragile'. He opined that in such a market Malaysian semiconductor companies should adopt a dual-pronged approach to their capital allocation. 'Players must simultaneously modernise their core, established businesses while selectively and strategically invest in the future growth engines outlined by the National Semiconductor Strategy. 'Take our local outsourced semiconductor assembly and test (OSAT) industry as an example. 'The actionable strategy for local OSAT players is to prioritise capital expenditure (capex) towards acquiring and mastering the capabilities for advanced chip packaging, that is, 2.5D and 3D packaging, fan-out wafer-level packaging, and system-in-package integration,' Yong said. In such a way, companies can position themselves to capture high-margin, high-volume business directly from the world's leading fabless AI chip designers. Fortress Capital's Yong said local players are facing 'significant' margin compression. Notably, a combination of lower-than-optimal production run rate, rising operational costs, including higher electricity tariffs and increased labour expenses driven by a fierce talent war, is squeezing profitability. 'This is compounded by currency effects, as a strengthening ringgit against the US dollar can temper the earnings of export-oriented firms,' he said. Nonetheless, UOB Kay Hian wealth advisor's head of investment research Mohd Sedek Jantan said the uncertainty surrounding US trade policy still stands out as the foremost risk to growth for the domestic semiconductor space. Last week, blue chip semiconductor company Vitrox Corp Bhd was downgraded by analysts following the company's second-quarter earnings announcement. 'Sell' calls for the automated test equipment (ATE) company now outweigh the 'buy' and 'hold' ratings. Hong Leong Investment Bank (HLIB) Research downgraded its call for ViTrox to a 'sell' from a 'hold' with an unchanged target price of RM2.65, derived based on price-to-earnings (PE) multiple of 34 times of the financial year 2026 (FY26) earnings per share. The research house said forex volatility, higher reciprocal tariffs from the United States, and component shortages could weigh on ViTrox's near-term margins. HLIB Research said since ViTrox's 1Q25 results, its share price has surged by 40% amid a strong rebound in sentiment for the technology sector, and that the company's current valuation at 48.5 times FY26 PE 'appears stretched', considering 'lingering demand risks from US tariff uncertainties'. Mohd Sedek is of the view that the risks in Malaysia's semiconductor sector are not yet fully priced in. While certain market and policy concerns have been reflected in valuations, several emerging and persistent risks – particularly related to trade policy, regulatory developments, and supply chain dynamics – remain underappreciated by investors, he noted. Mohd Sedek said operationally, while margin pressures from higher labour levies and escalating selling, general and administrative costs persist – particularly for OSAT and ATE players – valuations have adjusted. 'OSATs are currently trading around one standard deviation below their five-year average, with ATEs closer to two standard deviations below. 'This suggests that some risks have been recognised by the market, yet not all fully accounted for – especially considering the complex global and policy environment,' he said. Mohd Sedek cautioned that potential US legislative changes, such as the proposed One Big Beautiful Bill Act, could introduce further compliance burdens for semiconductor firms, particularly around supply chain transparency and technology transfer. He added that supply chain risks, particularly stemming from the US Section 232 investigations into semiconductors and critical minerals, also warrant attention. 'Possible tariffs or trade restrictions could disrupt Malaysia's access to vital inputs like rare earths, which are heavily sourced from China, as well as critical minerals supplied via regional partners such as Indonesia and Vietnam,' Mohd Sedek said. On top of country-specific reciprocal tariffs, the Trump administration has signalled since April that a special tariff rate will be applied to sectors like semiconductors. The United States is currently weighing on the tariff rate for the sector, pending the outcome of its ongoing Section 232 'national security' investigation. Competitive pressures also remain a structural challenge for the local chip sector. Mohd Sedek says Malaysia's 13% share of the global chip packaging market faces growing competition from Vietnam, India, and China – markets benefitting from aggressive expansion strategies and, in some cases, state support. This is also echoed by Yong that intensifying regional competition 'cannot be ignored'. 'Malaysia is not the sole beneficiary of global supply chain diversification. 'Vietnam, in particular, is aggressively courting foreign direct investment with attractive tax incentives and a national chip strategy of its own. Thailand also remains a formidable competitor, especially in the automotive semiconductor space. Complacency is a luxury we cannot afford,' Yong said. Mohd Sedek shared its base case projects a sector earnings contraction of about 2.7% in 2025, underscoring a challenging environment marked by slowing demand, regulatory hurdles, and macroeconomic uncertainties. Despite these near term challenges, experts say the long-term upside potential of the sector is 'compelling'. Yong said recovery is expected to broaden and accelerate into 2026 as inventories normalise and new investment cycles begin. He opined that the 'most significant tailwind' is the structural, multi-decade shift to de-risk global technology supply chains away from a single point of geographic concentration. He stated that Malaysia's 50-year track record, its well-established ecosystem, skilled workforce, and valued geopolitical neutrality make it a prime destination for 'China+1' and 'friend-shoring' strategies by American, European, and even Chinese firms seeking a stable, high-capability manufacturing base. 'This is not a cyclical trend that will fade; it is a fundamental realignment of global capital flows that will benefit Malaysia for years to come,' he said. Yong also believes that the country can capture the AI 'spillover' effect in that while Malaysia may not be designing the next-generation graphic processing units from scratch, the immense complexity of AI systems however, requires massive investment in what happens after the silicon wafer is fabricated: advanced packaging, highly sophisticated testing, and the manufacturing of the automated equipment that performs these critical tasks. 'Arguably, Malaysia already has the foundation necessary to capture such spillover,' he said. Mohd Sedek also echoed Yong's sentiment, noting that the structural drivers of digitalisation, 5G deployment, AI adoption, and data centre expansion are expected to reinforce Putrajaya's role within the global semiconductor supply chain. 'Infrastructure-led growth and regional mega-projects create meaningful opportunities for firms directly engaged in these emerging ecosystems,' he said. According to Mohd Sedek, technology remains a core investment theme for 2H25, and investors can focus on companies with strong exposure to high-growth segments like AI, 5G, and data centre components. He highlighted the importance of prioritising firms with sound forex hedging strategies and diversified revenue streams. 'To mitigate cyclicality risks, investors could pair semiconductor exposure with defensive sectors, while also have a long-term strategic view through anchor investments on long-term technology megatrends – recognising the sector's critical role in global digitalisation and supply chain realignment,' Mohd Sedek said.
