Strategies for SME Growth

1. Small and medium-sized enterprises (SMEs) are the growth engine of many economies, but it can be a challenge for them to expand internationally and integrate into global value chains.

2. SMEs account for around 99% of companies and 70% of all jobs in OECD countries, and they contribute more than 50% of gross domestic product in high-income countries worldwide, according to a 2022 McKinsey report titled Beyond financials: Helping small and medium-sized enterprises thrive.

3. UN research from 2022 on the effect of the fourth industrial revolution on SMEs finds that major barriers to international expansion include an inability to benefit from economies of scale as easily, greater difficulty in accessing financial resources, and a higher likelihood of being burdened by bureaucracy and poor infrastructure.

4. The pandemic hit SMEs hard, setting back export growth. In mid-2020, McKinsey analysis found that 45% of small businesses were facing supply chain disruptions, which hindered their ability to export products and integrate into global value chains.

5. Advanced technologies such as artificial intelligence, data analytics, blockchain and automation are crucial in helping SMEs grow, ultimately claiming space in global value chains and further bolstering the economies of their host countries. However, the adoption of such advanced technologies often requires substantial financial investment and expertise, posing a challenge for SMEs with limited resources. Recognising this barrier, government support becomes paramount in facilitating SMEs’ access to these transformative technologies. Through funding initiatives, training programmes and strategic partnerships, governments can empower SMEs to harness the benefits of cutting-edge tools, fostering innovation and propelling international expansion.

6. Using South Korea as a case study, the UN research shows that compared with large companies, the South Korean SMEs that adopted Industry 4.0 technologies such as digital tools were more likely to invest and expand overseas.

Deepening Sino-EU cooperation serves global interests

1. The China-EU Summit, is important for many reasons, not least because it is the first face-to-face meeting between the two sides since 2019 at a time of escalating geopolitical tensions.

2. The several virtual meetings during the three years of the COVID-19 pandemic, albeit critical, were no substitutes for face-to-face meetings. There is no doubt the top leaders of the two sides need to meet more often and hold dialogue to understand each other better.

3. Unlike the European Union which has since March 2019 changed its definition of China-EU relations to cooperation partner, economic competitor and systemic rival, China's stance has been consistent: it views the China-EU relationship as a comprehensive strategic partnership, which began 20 years ago.

4. China and the EU, despite their differences, have great potential to expand cooperation, which has benefited both sides. Apart from trade, investment and people-to-people exchanges, such cooperation also includes working together to overcome global challenges such as climate change, global economic slowdown and nuclear proliferation.

Sino-US ties can seek win-win opportunities

 1. The adoption of a recommendation on critical technology areas for the European Union's economic security, for further risk assessment with EU member states by the European Commission on Oct 3, is seen by many as a concrete move by the EU to "de-risk" its economy from China's.

2. The EU has said the recommendation relates to the assessment of technology risk and technology leakage. After being referred to by European Commission President Ursula von der Leyen in March this year, "de-risking", as a term, has gained in popularity in the EU's policymaking circle, as well as among British politicians. When von der Leyen put forward the idea in a speech on EU-China ties in March, she might not have expected it to become so catchy.

3. Over the past few months, there have been intensive discussions on China in the European Union, with "de-risking" finding mention in some of the most important policy documents on China, including the European Economic Security Strategy, German National Security Strategy, and European Council statements.

4. "De-risking" is also becoming the preferred term, instead of "decoupling", for US politicians when referring to future Sino-US relations. Other G7 leaders, too, are using the term "de-risking" to describe their countries' future ties with China. Even the latest G7 Summit communique mentions "de-risking". For the EU, "de-risking" seems to have become the new prism through which to look at its relations with China.

China’s Belt and Road Initiative turns away from coal

1. Ambitious, contentious and big spending, China’s Belt and Road Initiative (BRI) is 10 years old. In that time, China has splashed more than US$1 trillion on overseas infrastructure projects. 

2. Power markets in developing economies have been major beneficiaries. But the rapid growth in much-needed generation capacity has also shone the spotlight on the initiative’s environmental impact and raised critics’ hackles over levels of indebtedness among poorer nations. 

3. Can BRI power sector projects be judged a success? Does its record on sustainability conflict with decarbonisation goals? Can Western efforts to counter China’s influence succeed? 

Can European renewables still turn a profit?

1. The European Union’s ambitious renewable energy target mandates at least 42.5% of EU energy consumption to come from renewable sources by 2030. For that to happen, developers need positive returns on their renewables investments.

2. With technology costs not evolving as hoped, where will the sources of project profitability come from instead?

Vietnam looks to build first semiconductor plant

1. Vietnam is looking to build its first semiconductor plant despite US warnings that it will involve high costs.

2. Reuters reported that officials have met with half a dozen US chip firms in the past few weeks, including with Vu Tu Thanh, head of the Vietnam office of the US-ASEAN Business Council.

3. According to one executive consulted by Reuters, the government in Hanoi is looking to build a plant for less advanced chips used in cars or telecom applications.

4. The Vietnamese government has said it wants to build its first plant by the end of this decade and  chip companies would benefit from “the highest incentives available in Vietnam”.

5. The move to attract chipmaking investors comes after a surge in FDI inflows in the country. According to national statistics, Vietnam attracted over $15.29bn in FDI between January and October 2023, marking a 54% year-on-year increase in the value of investments. Around $5.29bn was spent on 1,051 existing projects.

7 Btpa of carbon capture needed to meet net zero by 2050

 1. Urgency is needed to meet the seven billion tonnes carbon capture (Btpa) required to meet net zero goals in 2050.

2. Energy efficiencies, renewables and alternative fuels will not be enough to meet net zero by 2050.

3. We need a huge amount of carbon to be captured out of our industries and the power sector to decarbonise the last miles that can’t be easily reached by green electrification or alternatives. 

4. Right now, we are on track to meet our base case scenario, which forecasts 2 Btpa of CO2 capture and removal by 2050 – though this corresponds to a  2.5 degree global warming scenario. For net zero by 2050 and a 1.5 degree compliant scenario we would need 7 Btpa. To come close, we need to get shovels in the ground quickly.

Five trends to watch for in the electrolyser supply chain

 1. The electrolytic hydrogen sector is rapidly expanding, with over 85 Mtpa of projects announced and cumulative factory announcements exceeding 218 gigawatts of electrolyser capacity by the end of Q3 2023

2. In the ever-evolving landscape of renewable energy, the burgeoning electrolytic (green) hydrogen sector has made remarkable strides. Over 85 Mtpa of electrolytic hydrogen projects have been announced. This surge in electrolytic hydrogen has brought focus to the electrolyser supply chain, which will need to expand at an unprecedented pace to meet anticipated demand. By the close of the third quarter in 2023, cumulative factory announcements had already surpassed 218 gigawatts of electrolyser capacity.

3. As this sector matures and gathers momentum, profound transformations across the electrolyser supply chain are coming. From product design and operational strategies, to enhancing overall profitability – a shift in paradigms seems inevitable – heralding an exciting era of upheaval and innovation in the electrolytic hydrogen ecosystem.

Driving the energy transition: the EV and batteries outlook

1. Forecasts for the global electric vehicle market show there will be 44 million EVs on the road by 2030. Despite the move to de-carbonise the road transport market, the upfront costs of an EV is still prohibitive to the driver. 

2. To lessen this cost burden for consumers, governments have been offering modest tax credits and purchase subsidies. While these subsidies will give some relief in the short-term, the longer term consideration is focusing on the costs of raw materials and ensuring a protected and uninterrupted stream of battery raw materials (BRMs).

ROI for Industry 4.0 use cases

1. No factory can risk being left behind in the transition to smart manufacturing. If a factory fails to innovate its product and production process, it risks incurring a Cost of Inaction (COI), which is the cost of the lost opportunity. Deploying dedicated cellular-enabled industry 4.0 solutions can generate an operational cost savings ROI of 10x to 20x over 5 years. Learn from Industry 4.0 uses cases on how to move ahead wisely.

2. A recent study from ABI Research outlines the “intelligence” in a smart factory and how it is underpinned by cellular connectivity, which plays a business-critical role. Applications of cellular technology are exemplified with concrete Industry 4.0 use cases, providing business justification and initial steps for how manufacturers can move their digital transformation forward.

3. Calculating Return on Investment (ROI) and Cost of Inaction (COI) by weighing operational costs and savings demonstrates the business impact of Industry 4.0 applications and solutions running on dedicated cellular networks.

4. According to the report, “Over 4.7 billion wireless modules will be deployed across smart manufacturing factory floors to enable over USD 1 trillion in production value by 2030.” Manufacturing executives need to understand why and how to develop the right connectivity strategies to unlock this value.

Industry 5.0: towards a collaborative manufacturing environment

1. In just a decade, Industry 4.0 has revolutionized the day-to-day operations of many companies in the manufacturing sector. Thanks to the technological advances that have emerged over the last few years, these organizations have been able to increase their efficiency and productivity. Now experts are opening the door to a new concept: Industry 5.0. 

2. Manufacturing is one of the biggest drivers of the European economy. Proof of this is that, between 2009 and 2019, it accounted for around 20% of the EU’s GDP. Moreover, according to 2020 data, it is a sector that employs more than 35 million people.

3. Yet, while European industry has decades of experience and is one of the most competitive in the world, it is exposed to an increasingly complex and volatile geopolitical and economic landscape. It is these constant challenges that push it to continually innovate, to further improve its efficiency at different points in the value chain; to be more flexible to the changing demands of the global consumer, and to work to maintain its leadership as a global benchmark for quality.

4. To a large extent, this innovation effort is reflected in the intensive use of new technologies, essential tools for automating, interconnecting and optimizing industrial processes. Indeed, the fourth industrial revolution represents the sector’s ambition to adopt and implement technological advances to cope with an increasingly changing world and economy.

5. Now, after a decade in vogue, it seems that what we know as Industry 4.0 is clearing the way for a new concept that goes beyond pure technological change in the factory. We are referring to Industry 5.0, a vision that is beginning to gain prominence and that has come to place, at the center of the industrial revolution, its capacity to have a positive impact on society.

FDI in renewable energy: A success story

 1. The Covid-19 pandemic has accelerated the transition to net zero, making renewable energy a growing attraction for FDI.

2. The race to achieving net-zero emissions is a reality by now across industries and geographies. The timing is just right for investment in renewable energy and other sources of alternative power to bloom, as the sector has matured.

3. According to GlobalData’s FDI Projects Database, foreign direct investment (FDI) into greenfield renewables and alternative power projects has grown by 40% in the period between 2019 and 2021, going from 444 projects worldwide in 2019 to 789 in 2021.

4. Provisional data for 2022 shows that trend is being upheld with a total 811 projects in the period from January to October.

 

Manufacturing-X

 1. Manufacturing-X is a data ecosystem and industry, academia and policy initiative that aims to optimize and modernize industrial supply chains and production processes.

2. The Manufacturing-X concept represents a new generation of manufacturing technology, incorporating Industry 4.0 approaches and merging technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), robotics, and data analytics. 

3. The objective of the Manufacturing-X concept is to ensure more efficient, flexible, and cost-effective production processes while establishing a highly adaptive manufacturing environment capable of responding to individual customer demands and real-time market needs.

Carbon Border Adjustment Mechanism (CBAM)

1. Starting from 1 October 2023 designated imported goods from outside the European Union (EU) will fall under new EU regulations: the Carbon Border Adjustment Mechanism (CBAM). Referred to as CBAM goods. CBAM will be gradually implemented. From 1 October 2023, you will need to report on these goods, and from 1 January 2026, there will be a registration and payment obligation. This page provides you with more information on this matter.

2. CBAM is a price adjustment applied to imports into the EU for designated goods based on their CO2 emissions in the production process outside the EU. The aim of CBAM is to prevent the risk of carbon leakage. Also, by encouraging the reduction of emissions by operators in third countries (countries outside the EU), global carbon emissions should be reduced.

3. CBAM is an EU regulation and part of the 'Fit for 55' package. The goal of this package is to reduce greenhouse gas emissions in the EU by at least 55% by 2030.

4. Currently, the EU operates a system where producers within the EU have to purchase emission allowances for the CO2 emissions of their products (EU Emissions Trading System, EU ETS). The CBAM price adjustment ensures that these producers no longer face a competitive disadvantage when importing from third countries with lower climate standards.

Grantmaking Best Practices

1. In the last case, grantmakers have only one chance at a first introduction, and that’s very often when grant seekers enter your grant application process. Will the moment be a heartwarming meet cute or a bucket of red flags? Will the right people and nonprofits feel a connection, or will you instead attract bad fits for your mission? 

2. Grantmakers have only one chance at a first introduction, and that’s very often when grant seekers enter your grant application process. Will the moment be a heartwarming meet cute or a bucket of red flags? Will the right people and nonprofits feel a connection, or will you instead attract bad fits for your mission? 

TNB to invest additional RM35 bil over 2025-2030 to beef up grid for energy transition

1. Tenaga Nasional Bhd (TNB) plans to deploy an additional RM35 billion between 2025 to 2030 towards upgrading Malaysia’s power grid, to ensure the infrastructure does not become an obstacle in the nation’s energy transition (ET) endeavours.

2. This is on top of the national utility giant’s RM54 billion non-ET investment allocation for the grid over the same five-year period.

3. This means that TNB plans to invest a total of RM90 billion into Malaysia’s grid in the coming five-year period. This is nearly double the RM46 billion the group allocated for 2018-2024. which comprises RM40 billion for non-ET and RM6 billion for ET.

Tax Incentives Under Malaysia’s Budget 2023

 1. Malaysia’s 2023 Budget offers enhanced tax incentives to encourage investment in key industries, such as aerospace, shipbuilding, electric vehicles, and electrical and electronics. 

2. The budget also extends tax incentives for foreign workers in C-suite positions and manufacturing companies investing in automation equipment.

3. Malaysia’s Budget for 2023 is the largest in the country’s history, amounting to 388 billion ringgit (US$86.8 billion). Through the incentives in the budget, the government seeks to maintain and enhance Malaysia’s competitiveness as an investment destination.

4. Budget 2023 also made changes to Malaysia’s corporate and individual tax regimes. These are lower individual income tax rates for middle earners and increasing the rate for higher earners. MSMEs can now benefit from a decrease in the corporate income tax rate from 17 to 15 percent.

Tariff and Imbalance Cost Pass-Through (ICPT) implementation for the period of 1st July – 31st December 2023

1. Imbalance Cost Pass-Through (ICPT) implementation for the period of 1st  July – 31st December 2023 are as follows:

2. Domestic customers are not subjected to ICPT implementation.

3. Surcharge of 5.39 sen/kWh for all commercial and industrial customers.

4. The decline of Natural Gas Price has reduced the ICPT surcharge quantum from 8.19 sen/kWh in January 2023 to 5.39 sen/kWh effective 1st July 2023.

GET-ting to Know Malaysia’s Green Electricity Tariff (GET)

1. Businesses and consumers today are living in a time where being part of the clean energy revolution is becoming increasingly easier and more affordable. A few years ago, participating in the movement meant sourcing your own technology, such as solar panels, and installing them in your yard or rooftop.

2. Fast-forward to today, we see a clear diversification – and democratisation – of clean energy vehicles, ranging from government-led initiatives to private sector tools. As the clarion call to join the sustainable energy revolution grows louder, it’s evident that there is a need and demand for greater inclusion and public participation.

3. Enter the Green Electricity Tariff, or GET, is an initiative by the Government of Malaysia, introduced in 2022 to serve as a driver for this purpose. In a nutshell, this innovative tariff allows consumers to purchase green electricity generated from renewable energy, directly from utilities. It’s a great initiative for consumers or businesses interested in being part of the sustainable energy value chain without extensive investment. Here, Energy Watch explores seven interesting facts about the GET that you should know.

Malaysia's National Energy Transition Roadmap (NETR)

 1. Malaysia launched its National Energy Transition Roadmap (NETR) on July 27, 2023 with a strong focus on transforming the economy and creating potential business opportunities in the energy sector. Phase 1 of the NETR unveiled 10 flagship catalyst initiatives that aim to attract investments and generate job opportunities while reducing CO2 emissions by over 10 million tons annually.

IPA Qatar Collaborates with Siemens, Emerson, Knight Frank, and PwC

1. Investment Promotion Agency Qatar (IPA Qatar) announced the signing of new Memorandums of Understanding (MoUs) with two international companies, Siemens and Emerson, today on the sidelines of the Qatar Economic Forum, 

2. The Investment Promotion Agency Qatar (IPA Qatar) has announced a partnership with Knight Frank, a UK-based global real estate consultancy to showcase Qatar's real estate industry to international investors.

3. The Investment Promotion Agency Qatar (IPA Qatar) has signed a double deal with PwC, which will see the accounting and consulting giant help the agency attract international investors and expand its own footprint in the country.

What’s shaping CCUS project costs?

1. A better understanding of carbon capture, utilisation and storage (CCUS) costs is needed before the technology can become a commercial reality on a truly global scale

2. Carbon capture, utilisation and storage (CCUS) looks set to become a key element of net zero future. A combination of factors is prompting new project announcements: carbon taxes, government subsidies, operator and/or investor desire to reduce emissions, consumer willingness to pay more for carbon-abated products and the ability to sell carbon removal as an offset.

3. Based on risk analysis of current global projects in development and view of future growth, global capture capacity to increase more than sevenfold over the next 10 years, from 50 Mtpa to more than 370 Mtpa. Over US$150 billion in capital expenditure is required. Accelerated Energy Transition (AET) 1.5 °C scenario calls for 2 Btpa of CCUS, almost six times those projections, with roughly commensurate capital costs.

4. So, while the world determines whether and how to incentivise carbon capture to meet climate objectives, CCUS project developers are beavering away, designing projects that maximise the abatement per dollar of cost. Without improved clarity on these costs, development stumbles and capital does not flow freely.

Investment promotion agencies must be agile to attract FDI

1. FDI flows were strong in 2022, but IPAs face new challenges when it comes to attracting investors.

2. Greenfield foreign direct investment (FDI) has recovered since its near total collapse in 2020, and the past two years have been marked by a prolonged rebound. In the Middle East and North Africa, the growth shown has been significant, and the number of projects in the region soared from 2021 to 2022.

Implementation of Imbalance Cost Pass-Through (ICPT) Rates for the Period of 1 July 2023 to 31 December 2023

1. On 23 June 2023, the Government of Malaysia announced a total subsidy allocation of RM5.2 billion for the next ICPT implementation period from 1 July 2023 until 31 December 2023 to protect ~99% of TNB customers in Peninsular Malaysia from the impact of higher fuel costs which accounts for 65% of the electricity bill.

2. In electricity bill, ICPT is a mechanism that is approved by the Government and implemented since 2014 to reflect changes in the cost of electricity generation, specifically fuel costs every six (6) months. For reference, the electricity tariff schedule in Peninsular Malaysia is unchanged since 2014.

Sino-EU Investment Agreement Expectations

1. Chinese businesses operating in Europe are urging authorities in the European Union to quickly resume the approval process for the China-EU Comprehensive Agreement on Investment, or CAI, and expedite its signing, said a report released by China's top foreign trade and investment promotion agency.

2. The report — Business Environment of the European Union 2022/2023 — provided by the academy of the Beijing-based China Council for the Promotion of International Trade, said that a favorable business environment is a common expectation of foreign-invested businesses, and will create greater attraction for Chinese companies.

Renewable hydrogen production uses old tech in novel way

1. Using deep sea platform technologies to take advantage of stronger winds than those blowing closer to shore was first conceptualized in the 1970s during the energy crises. At that time, the first wind power engineering program in the United States addressed Congress, saying that turbines could eliminate the country’s reliance on imported energy.

2. William Heronemus, a professor of engineering from the University of Massachusetts envisioned offshore wind turbines generating electricity that could power seawater electricity for the storage of that energy as renewable hydrogen fuel.  It took about fifty years, but that vision is now in development from several angles.

3. Projects developing platform technologies for massive wind turbines have become commonplace and are well underway, broadening the access offshore wind has to the stronger winds that blow over deeper waters.

Penang Automation Cluster building local supply chain and elevate SME capabilities

1. Building automated equipment systems is akin to the assembly and production of vehicles. Visitors to automotive manufacturing plants would have observed that they usually operate in industrial clusters — the better to attract customers, precision engineering firms and material suppliers. Likewise for technology equipment manufacturers and automation houses, as they would require high-precision metal fabrication components, modules and systems to build their products.

2. More than four years ago, three tech-savvy manufacturers — ViTrox Corp Bhd, Pentamaster Corp Bhd and Walta Engineering Sdn Bhd — conceived the idea to build a world-class fabrication cluster at Batu Kawan Industrial Park in Penang that would serve as a one-stop metal component supply chain hub.

3. The result was Penang Automation Cluster Sdn Bhd (PAC), formed in January 2017 with the mission of enhancing the local ecosystem and uplifting the capabilities of local small and medium enterprises (SMEs).

Energy storage technology: three trends to watch

 1. Energy storage market dynamics are shaping the evolution of battery formats, components and production

2. Rapid growth in deployments is making the energy storage system (ESS) sector the new competitive battlefield for battery manufacturers. Whether diversifying from the electric vehicle (EV) market or focusing specifically on ESS, it’s an attractive opportunity to capitalise on a strong outlook over the next decade.

Joint Committee on Climate Change (JC3) aims to align CCPT practices by year-end

1. In a joint statement today, Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC) said supporting the credible, consistent and reliable implementation of the Climate Change and Principle-based Taxonomy (CCPT) continues to be one of the key priorities of Committee on Climate Change (JC3), which is a platform established to pursue collaborative actions for building climate resilience within the Malaysian financial sector.

2. The JC3 aims to substantially complete further work to align practices in the implementation of the Climate Change and Principle-based Taxonomy CCPT by the end of 2023.

Corporate Green Power Programme (CGPP)

1. Corporate Green Power Programme (CGPP) is an initiative by the Government to provide opportunity for business entities to participate in the promotion and use of renewable energy in their business operation. The programme supports the growing number of electricity consumers that aspire to achieve the Environmental, Social and Governance (ESG) target.

2. CGPP is essentially a mechanism of virtual power purchase agreement, which is implemented using the existing New Enhanced Dispatch Arrangement (NEDA) framework.

Product Spotlight - xMEMS Labs Aims to Replace Earbud and Hearing Aid Audio Drivers with Semiconductor Speakers

1. The semiconductor story is the story of constant replacement. Early transistors increasingly replaced vacuum tubes. Integrated circuits (ICs) replaced transistors. Our large-screen, flat-panel displays and televisions, which replaced cathode ray tubes, are giant-sized, thin-film semiconductors. 

2. Semiconductor-based solid-state drives are currently replacing rotating hard-disk storage in computers and servers. Even dynamic and electret microphones have started to yield to tiny arrays of semiconductor MEMS (Micro-ElectroMechanical Systems) transducers. You’ll find at least one such MEMS microphone in many new mobile phone models.

3. However, one electronic technology has long resisted replacement by semiconductors: the loudspeaker. Today’s audio speaker or earbud driver continues to use century-old, moving-coil or balanced armature technology. 

4. A company named xMEMS Labs is determined to change that situation by introducing two second-generation semiconductor MEMS speakers and a device called the Skyline DynamicVent, which is simply an electrically actuated air valve used to equalize differential pressure between the ear canal and ambient air.

Product Spotlight - Taiwan to ban disposable food utensils made of biodegradable plastic

 1. The Environmental Protection Agency (EPA) announced Friday (Feb. 3) that it plans to ban disposable food utensils made of biodegradable plastic.

2. The EPA plans to implement the policy starting Aug. 1, with the goal of lessening the impact of biodegradable plastics on Taiwan’s existing recycling mechanisms. Additionally, it is an attempt to reduce the amount of disposable food containers and cutlery.

3. The policy will affect the public sector, public and private schools, department stores and malls, wholesale stores, supermarkets, convenience store chains, fast food chains, and physical food service providers.

4. According to the EPA, after it banned plastic disposable food containers and cutlery, many food service providers turned to biodegradable options. However, as the material only decomposes quickly in specific environments and Taiwan lacks proper reuse means as well as compost facilities, it has expanded its definition to include biodegradable plastics into its list of banned materials.

What is carbon capture, usage and storage (CCUS) and what role can it play in tackling climate change?

1. CCUS refers to a suite of technologies that enable the mitigation of carbon dioxide (CO2) emissions from large point sources such as power plants, refineries and other industrial facilities, or the removal of existing CO2 from the atmosphere.

2. CCUS is expected to play a crucial role in meeting global climate targets. Leading organisations including the International Energy Agency (IEA), International Renewable Energy Agency (IRENA), Intergovernmental Panel on Climate Change (IPCC) and Bloomberg New Energy Finance (BNEF) have all produced long-term energy outlooks that rely on a rapid expansion of CCUS in order to limit global temperature rise to 1.5°C.

Total Economic Impact Study Reveals 304% ROI for Complex Manufacturers Using Supply Chain Sustainability Platform Software

1. Independent study highlights how manufacturers are leveraging product compliance and sustainability tools to improve supplier engagement and reduce non-compliance costs.

2. The findings of its commissioned Total Economic Impact™ (TEI) study. Conducted by Forrester Consulting, the study found that Assent’s Supply Chain Sustainability Platform provides customers with a return on investment (ROI) of 304% over three years with a payback period of less than six months.

3. The study also indicates that product compliance and sustainability management solutions can enhance and protect brand reputation, ease administrative burdens, and mitigate compliance risks and supply chain disruptions.

Product Spotlight - Global Bioreactors and Fermenters Market to 2035

1. Since their introduction in 1982, biologics have gained popularity owing to their therapeutic efficacy, favorable safety profiles and ability to treat a wide variety of disease indications, which are otherwise hard to treat. In fact, in the past two decades, over 170 biopharmaceuticals have already been granted approval by the FDA and over 7,500 biological interventions are under evaluation in clinical trials.

2. It is a well-known fact that the commercial and clinical-scale manufacturing of such complex biomolecules require highly specialized bioprocessing equipment to facilitate the maintenance of ideal conditions, such as optimal temperature, pH, dissolved oxygen, fluid delivery, and other critical process parameters that are essential for steady cell growth. Bioreactors are capable of providing such optimal conditions and are critical to the upstream biomanufacturing process.

3. These systems are designed to increase the concentration of viable cells, thereby enabling the production of large amounts of recombinant proteins, such as vaccines, fusion proteins, antibodies and enzymes.

4. Apart from producing conventional therapeutic proteins, bioreactors can also be used to produce advanced medicinal products (ATMPs), namely cell-based and oligonucleotide-based therapies, retroviral vectors for gene therapy and cellular components of three-dimensional tissue / artificial organs. In contrast to bioreactors, fermenters are used for the anaerobic cultivation of microbial (fungal or bacterial) cell populations to produce biologics that do not require significant post translational modifications.

5. It is worth highlighting that the use of fermenters for the manufacturing of bioproducts provides faster development, higher yields and quality, reduced variation between batches, better scalability, and lower production costs, in comparison to the biomanufacturing carried out in bioreactors.

Product Spotlight - Market Reports on the Agricultural Sector - Fruit & Vegetable Powder, Palm Oil & Rice-based Products

 1. Growing Demand for Health & Wellness Products is Fueling Fruit & Vegetable Powder Sector

2. Transition to Sustainable Production Crucial for Palm Oil Future Growth

3. Increasing Availability of Fortified and Enriched Rice-based Products Drives Growth

4. Exploring above mentioned sector's market, growth & potential. 

Industrial Product Price Index (IPPI) and Raw Materials Price Index (RMPI)

 DEFINITION
1. The Industrial Product Price Index (IPPI) reflects the prices that producers ireceive as the goods leave the plant gate. 

2. The IPPI excludes indirect taxes and all the costs that occur between the time a good leaves the plant and the time the final user takes possession of it, including the transportation, wholesale, and retail costs. 

3. The report also contains a measure of domestic producers' Raw Materials Price Index (RMPI)  which can be seen as a very loose leading indicator of the IPPI.

Singapore & Australia E-Commerce Logistics Market Forecast

1. Australia E-commerce Logistics Market is expected to generate USD ~ 10 Bn by 2026F owning to rising demand of door step delivery, increasing digitisation, reducing cost of packaging along with favorable government initiatives.

2. Singapore E-Commerce Logistics Market revenue is expected to generate USD ~2 Bn by 2026F largely due to high internet penetration & emergence of new players.

What Is Poka-Yoke And Why It Matters In Business

1. Poka-yoke is a Japanese quality control technique developed by former Toyota engineer Shigeo Shingo. Translated as “mistake-proofing”, poka-yoke aims to prevent defects in the manufacturing process that are the result of human error. 

2. Poka-yoke is a lean manufacturing technique that ensures that the right conditions exist before a step in the process is executed. This makes it a preventative form of quality control since errors are detected and then rectified before they occur. 

3. Fundamentally, poka-yoke is a lean manufacturing technique that ensures that the right conditions exist before a step in the process is executed. This makes it a preventative form of quality control since errors are detected before they occur. 

4. Of course, some process errors cannot be detected ahead of time. In this case, the poka-yoke technique seeks to eliminate errors as early on in the process as is feasible. Although the poka-yoke technique became a key part of Toyota’s manufacturing process, it can be applied to any industry or indeed any situation where there is potential for human error. 

TCFD-aligned guidelines for climate risk disclosure and management In Malaysia

 1. Climate change is posing new challenges to central banks and regulators whose main mandate is to ensure systemic financial stability. In Malaysia, many financial institutions (FIs) and the businesses they back are beginning to realise the importance of proactively addressing a wide array of physical and transition risks that can arise as the drive to build a low-carbon and climate-friendly economy intensifies.

2. For example, the increase in the frequency and intensity of extreme weather events can trigger irreversible financial losses. In turn, a system-wide transition towards net-zero, if successful, could also have far-reaching effects on critical economic sectors. Technological innovations and low-carbon solutions seen as game-changers will require businesses to make structural shifts to adapt to different realities. A new awareness about “green swan” events, defined as rare, extreme and sudden paradigm shifts brought about by this new type of systemic risk represented by climate change, has now emerged, and the financial sector knows it needs to move quickly to navigate the landscape when they occur.

RailTel to create 'Edge Data Centres' at 102 locations across India

1. RailTel, a Central Government PSU, said on Wednesday it will create 'edge data centres' at Railway premises across 102 locations, especially Tier-2 and Tier-3 towns in the country.

2. The 'edge data centres' will be set up by RailTel jointly with partners.

3. The prospective Business Associates/partners should be a company registered in India. This activity will entail an investment opportunity of around Rs 500 crore, RailTel said in a statement

4. The process to establish the edge data centres has been set in motion with the floating of Expression of Interest (EOI) inviting the industry to partner in this exercise, it said.

5. Edge data centres are small data centres located at the edge of the network, where they are closer to end-users and devices. Having such kind of facility at the edge would enable faster performance and lower latency as organisations will not have to move the data to far-flung data centres to process it.

Cambodia punches above its weight in attracting FDI

1. Cambodia, a lesser known FDI location in South East Asia, must compete against the likes of Singapore and Vietnam to attract inward investment. Despite stiff competition it has managed to win more than its fair share of greenfield projects.

2. Cambodia performs impressively in Investment Monitor’s 2022 Inward FDI Performance Index. The index measures a country’s inward investment levels against its gross domestic product (GDP) using GlobalData’s FDI Projects Database, which tracks greenfield projects. 

3. This means that Cambodia, with a score of 3.26, received more than three times its fair share of inward greenfield foreign direct investment (FDI) compared with what could be expected given its level of GDP. In that regard, Cambodia is punching well above its weight in FDI terms. Cambodia places third for FDI into Asia-Pacific based on the aforementioned index, attracting 15 projects in 2021. Singapore ranks first with an index score of 4.9 while New Zealand places second scoring 3.31.

Inflation Reduction Act changes the game for energy transformation

1. Following many months of negotiation between branches of the United States government, on 16 August 2022, President Joe Biden signed the Inflation Reduction Act (IRA) into law. Although, as the name suggests, it includes measures that aim to reduce inflation, it also contains a significant package of tax incentives and benefits designed to support the US in tackling climate change. These cover how it produces energy and other measures, such as encouraging decarbonization through carbon capture and promoting the use of electric vehicles. In September, President Biden described the IRA as “the most aggressive action ever… to confront the climate crisis and increase our energy security.” 

2. The Act’s energy industry measures are numerous and, in several cases, innovative, with new mechanisms that allow tax credits to be sold to unrelated third parties or settled through direct payments from the government. Some tax incentives are linked to the location of projects and suppliers, workers’ pay and the development of apprenticeship programs. This article will focus on a small number of tax changes that create opportunities and challenges for energy companies with US operations.

Malaysia Industrial production index growth at 6.9% in 2022

1. Industrial Production Index (IPI) is a measure of the rate of change in the production of industrial commodities in real terms over time for Manufacturing, Mining and Electricity Sectors. 

2. It is measured based on volume changes in production.  IPI are the overall index from the Index of Mining, Manufacturing and Electricity. IPI give the overview of the current trend of industrial activities and used for economic analysis.

3. Industrial production and capacity levels are expressed as an index level relative to a base year. Within the overall IPI, there are a number of sub-indices providing a detailed look at the output of highly specific industries. 

4. Industry-level data are useful for managers and investors within specific lines of business, while the composite index is an important macroeconomic indicator for economists and investors—fluctuations within the industrial sector account for most of the variation in overall economic growth.

Virtual Power Purchase Agreement (VPPA)

1. The Introduction Of Virtual Power Purchase Agreement (VPPA) Into The Malaysian Renewable Energy Industry

2. To understand how VPPA works, it is helpful to firstly establish how a Power Purchase Agreement ("PPA") works in our current ecosystem. In Malaysia, we are more than familiar with how conventional PPAs operate with it being established in Malaysia since the mid-1990s. 

3. Generally, PPA is an agreement between a solar power producer ("SPP") and Tenaga Nasional Berhad ("TNB") as the distribution licensee for the sale and purchase of electricity generated by the SPP. The electricity produced by the SPP's solar photovoltaic ("solar PV") would be physically transmitted into the local grid (owned by TNB) and such electricity would then be sold by TNB to end users/consumers3.

4. Furthermore, Net Energy Metering Scheme ("NEM") was introduced in 2016 which allowed consumers to enter into direct PPA with SPPs/investors. Under NEM, investors install and operate solar PVs (which are owned by the investors) on the consumers' premises and the electricity produced can be sold (via a PPA) directly to the consumers at a rate agreed between both parties with excess electricity sold to TNB4.

5. VPPA on the other hand, also known as Synthetic PPA, differ from the conventional PPA as it does not actually concern the transmission of the physical energy (electrons) produced by the solar PVs. As its name suggests, the supply of electricity is done virtually rather than physically. In other words, consumers continue to receive their electricity from local utility providers and the SPP will continue to sell electricity which they produce to local utility providers.

UK-Malaysia 2023 Trade and Investment Trends

1. The UK has been investing in Malaysia for the past 60 years, in fact, it was the leading FDI investor in Malaysia for its initial several years after independence. However, by the mid-1980s, for numerous reasons, the UK was overtaken by Japan (focused on the electronics industry) and Singapore (increasing trade linkages) in FDI investment. These FDI trends have accelerated in today’s rapidly evolving multi-polar greening world, led by technology and digitization. 

2. Within the past decade, not only has UK interest in FDI in Malaysia declined, three of the UK’s largest companies have made significant exits. Conversely, Malaysia has become an increasingly active investor in the UK over the past decade and is currently leading two of the UK’s leading infrastructure projects. In spite of these developments, both countries house large, international businesses which combined with their financial markets can assist both countries in developing future growth. 

Cambodia SDG Investor Map launched to accelerate sustainable development

1. New market intelligence tool identifies 15 Investment Opportunity Areas guiding the private sector to focus on SDG priority sectors that could benefit from expanded financing options.

2. The Cambodia SDG Investor Map, a market intelligence tool that identifies viable Investment Opportunity Areas aligned with the Cambodia Sustainable Development Goals (SDGs), was launched by the Royal Government of Cambodia (RGC), United Nations Development Programme (UNDP) with the support of the Centre for Impact Investing and Practices (CIIP) established by Temasek Trust. 

COP27: How countries compare on carbon emissions and pledges

1. Energy Monitor tracked the latest carbon emissions data to see how far the world is from reaching net-zero emissions by 2050.

2. The beginning of COP27 in Sharm El Sheikh, Egypt, means a year has passed since the world agreed to “keep 1.5°C alive” at the COP26 UN climate conference in Glasgow. Over the course of the intervening year, however, that tentative note of collective optimism – and Covid-19’s carbon emissions reductions – have been overtaken by geopolitics and a global energy crisis.

3. Data reveals the transition to clean energy continues at a record pace, partly out of this new ambition for energy security. Some 257GW of renewable electricity capacity was installed in 2021, according to the International Renewable Energy Agency (IRENA). In China, the five-year plan for 2021–25 will add 874GW of solar and wind capacity to the grid – equivalent to the entire electrical network of Europe. The Inflation Reduction Act in the US means the country’s wind power capacity should double, and solar power capacity quadruple, by 2030.

4. Energy Monitor tracked the latest carbon emissions data: the fundamental metric that determines our progress in addressing climate change. In doing so, we can see just how far the world is from reaching the ambition laid out in the 2015 Paris Agreement: net-zero emissions by mid-century, which is what the Intergovernmental Panel on Climate Change (IPCC) says is required for a good chance of keeping global warming to the “safe” limit of 1.5°C.