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.