Creating an Environment to Attract Advanced Manufacturing - Part 1 - Meta Chains

1. For traditional manufacturing projects, the timing of siting a new facility is a fairly rapid process, normally occurring approximately one year from project identification to final decision. 

2. The forces driving the decision primarily are born from actions to meet rising demand, expanding into new markets or to reduce overall distribution costs. For these rapidly moving projects, companies tend to limit their search to identify areas whose attributes include a close proximity to raw material suppliers, an existing building or pad-ready site, and an adequate labor market that can be utilized to the corporation’s advantage.

3. With advanced manufacturing organizations, the essence of their operating model is to capitalize on the explosive growth curve of new technology, creating disruptive change. This change could be for existing companies in their particular industry, or in some cases, creating entirely new industries. 

4. Their technological breakthroughs have taken many forms. Innovation can stem from areas such as the fabrication of new materials, for instance composites and ceramics, additive manufacturing via 3D printing, robotics, micro-manufacturing and clean room production. These are only a few of the descriptors for what many people now define as “advanced manufacturing.”

Malaysia National Trade Blueprint (NTBp)

1. The NTBp is a blueprint commissioned by the Ministry of Trade and Industry (‘MITI’) and developed by the Malaysia External Trade Development Corporation (‘MATRADE’).

2. The NTBp outlines a 5-year (2021-2025) development strategy and initiatives to enhance Malaysia’s competitiveness in the export of merchandise. The NTBp framework is guided by four strategic priorities, three strategic themes and eight strategic thrusts with 40 recommendations to improve and enhance Malaysia’s trade competitiveness.

3. Based on statistics by the World Trade Organisation, Malaysia has slipped from 23rd place in 2015 to 26th place in 2019 in the global export rankings; having been overtaken by our ASEAN neighbours, Thailand and Vietnam.

4. According to the Executive Summary, the contribution by Small and Medium Enterprises (‘SMEs’) to total exports has stagnated in the past five years, with the average growth being slower as compared to the country’s overall export growth and exports by non-SMEs.

5. Hence the NTBp was developed to provide clear directions and initiatives to enable the country to regain its competitiveness in trade, even as global trade becomes increasingly complex and competitive.

Thailand Issues New Incentive Package for EV & Indonesia to Build Electric Vehicle Battery Plant

1. In February 2022, Thailand released new government incentives for its electric vehicle (EV) industry as part of its ambitious plan to transform 50 percent of its total auto production to EVs by 2030 and become a production base for cleaner vehicles in Southeast Asia. The new incentive package includes significant exemption in import duty and excise tax for a wide range of EV models.

2. Indonesia is set to build its first electric vehicle (EV) battery plant and aims to begin production by 2023. 

Indonesia’s Omnibus Law Looks to Support the Aviation Industry & Enhance the Shipping Sector

1. Indonesia’s Government Regulation 32 of 2021 (GR 32/2021), an implementing regulation of the Omnibus Law, aims to support the recent liberalization of Indonesia’s aviation industry.

2. In the country’s new positive investment list, domestic air transport is open to a maximum of 49 percent foreign ownership whereas airports and airport supporting services are now open to 100 percent foreign investment.

3. GR 32/2021 provides a simplified process to obtain aircraft licensing and registration in Indonesia, as well as reduces the minimum number of aircrafts an operator must own and operate/possess.

4. Indonesia’s Government Regulation 31 of 2021 (Reg 31/2021) — an implementing regulation of the Omnibus Law — amends several aspects of the country’s shipping law.

5. The Indonesian government hopes the enactment of the new shipping regulation will attract more foreign investors into the country’s shipping industry, particularly as President Joko Widodo intends to transform Indonesia into a global maritime axis.