05/03/2025

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WEDNESDAY | MAR 5, 2025

CPE Technology gears up to meet semiconductor demand

Malaysian capital market’s average daily value up 50% in 2024 KUALA LUMPUR: The Malaysian capital market’s average daily value (ADV) rose by more than 50% to RM3.15 billion in 2024 from RM2.06 billion in 2023, underscoring investor confidence and interest, according to Second Finance Minister Senator Datuk Seri Amir Hamzah Azizan. He said market capitalisation showed a rise of nearly 16%, from RM1.8 trillion in 2023 to RM2.08 trillion last year. “Market velocity also showed an increase to 39.4% in 2024 compared to 29.3% in 2023,” he said in response to Senator Manolan Mohamad in the Dewan Negara on the factors contri buting to the increase in company listings on Bursa Malaysia, with 55 listed in 2024 and this year’s target. He said Bursa Malaysia performed excellently last year in terms of initial public offerings (IPO). It ranked first among Asean stock exchanges for the number of IPO and IPO funds raised. He said the listing of 55 IPO last year marked a significant 72% in crease versus 32 recorded in 2023. Amir Hamzah said the total funds raised from these 55 IPO rose by 107% to RM7.42 billion against 2023. The listings of these 55 IPO contributed to a 130% increase in market capitalisation, amounting to RM31.37 billion versus 2023, he said. “The record number of IPOs in 2024 and the overall strong IPO performance are evidence of interest from both domestic and international investors, due to confidence in Malaysia’s economic prospects and the strong regulatory framework implemented by market regulators. “Other contributing factors in clude Malaysia’s political stability and a clear national direction, such as the Madani economic framework, which provides structured, progressive growth and expands the country’s economy, thereby contributing to the capital market’s growth,” Amir Ham zah said. He added that with the momen tum achieved last year, Bursa Malay-sia is targeting 60 IPO in 2025. – Bernama

Ű BY JOHN GILBERT sunbiz@thesundaily.com

o Company invests in new factory, advanced CNC machines to enhance manufacturing capabilities

stable and peaceful coalition, while working together to upgrade its FTA. As a bloc, he said, Asean would also continue with the principle of Asean centrality, amid differences in views on certain matters. “It is more important than ever in terms of the ability of Asean to stand together on issues that will affect all of us,” he said in an interview with CNBC. – Bernama “This diversification reduces reliance on any single customer or region, ensuring a more stable demand flow. “Additionally, we are optimising production planning by strate gically relocating 38 CNC machines to our new facility, which will be operational in July 2025, helping to relieve congestion and improve efficiency. With the plans of inte gration of advanced electron beam welding capabilities, we are also enhancing our sub-assembly offer ings to provide higher-value solu tions,” Lee said. In 2025, he said, CPE Tech nology’s semiconductor strategy will focus on enhancing engi neering capabilities and auto mating operations. “While we do not conduct direct R&D, we prioritise process im provements for precision, effi ciency, and quality. “Strategic partnerships with tech nology providers help us integrate advanced manufacturing solutions like CNC automation and high precision welding. These efforts en sure competitiveness, scalability, and long-term growth in the evolving semiconductor industry,” he said. Lee noted that while the primary focus remains on the semicon ductor sector, the company is expanding its customer base geo graphically. “Beyond our established part nerships with US and Japanese customers, we are actively exploring opportunities with semiconductor companies in Penang to strengthen our presence in Malaysia’s growing semiconductor ecosystem. “Meanwhile, our stable business in life sciences, medical devices, and sports equipment provides a predictable revenue base that supports our long-term semicon ductor investments. “By aligning these key initiatives, we are positioning CPE Technology to navigate short-term market fluc tuations while reinforcing our long term competitiveness in the global semiconductor supply chain,” he said.

KUALA LUMPUR: CPE Technology Bhd is expanding production capacity to meet the anticipated surge in semiconductor demand this year, particularly in artificial intelligence (AI) and high-per formance computing. The company has invested in a new factory of about one acre, which features a 25,000-square-foot production floor. CPE Technology executive director and group CEO Lee Chen Yeong ( pic ) said to optimise the production efficiency, the company will relocate 38 computer numerical control (CNC) machines from an existing plant to the new facility, alleviating congestion and streamlining operations. “Additionally, we have also invested in 16 advanced CNC machines, which will be stra tegically placed across both the new and existing plants to enhance overall manufacturing capabilities. The new facility and machines will be fully operational by July 2025,” he told SunBiz . According to a Bursa Malaysia filing, as of Dec 31, 2024, CPE Technology had invested RM5.61 million in capital, mainly for the purchase of 16 CNC machines. This investment aims to expand production capacity and enhance operational efficiency in response to growing demand, particularly from the semiconductor industry. The group seeks to strengthen its manufacturing capabilities by acquiring these CNC machines and supporting long-term business growth. Lee said a key highlight of this expansion is the establishment of an entirely new sub-assembly division, which will occupy 40% of the new plant. “To support this division, we are also investing in advanced welding equipment, which may include electron beam welding technology, to serve our semiconductor cus tomers better. This investment will

duction planning and maintaining flexible capacity allocation to adapt efficiently to demand fluctuations.” For the second quarter ended Dec 31, 2024 (Q2’24), CPE Tech nology’s net profit increased a whopping 601.27% to RM10.47 million from RM1.49 million posted in Q2’23. Revenue for the quarter in-creased 52.42% to RM33.19 million from RM21.78 million posted in Q2’23. Moving on, Lee said CPE Technology is diversifying its semi conductor business geographically, expanding beyond key markets in the US and Japan to explore oppor tunities in Malaysia. “With global supply chain shifts, including US-China chip re strictions, we see strong potential in supporting Malaysia’s semicon ductor ecosystem. “To strengthen our market position further, CPE Technology is expanding within the Integrated Gas System segment and broa-dening its geographical reach. While we continue serving key US and Japanese customers, we are exploring new opportunities with semiconductor companies in Malaysia.

enable us to offer high-precision, high-integrity welded components that meet the stringent require ments of semiconductor manu facturing. “Beyond capacity expansion, we are also strengthening our supply chain partnerships and investing in workforce upskilling to ensure we remain a trusted and strategic supplier for semiconductor equip ment manufacturers. “With these initiatives, we are well-positioned to support our customers’ growth and the evolving demands of the semiconductor industry.” CPE Technology is an engineer ing support services provider pri marily involved in manufacturing precision-machined parts and components and providing CNC machining services. Lee said the semiconductor segment accounts for 66% of CPE Technology’s revenue and remains a key focus. “Despite short-term market volatility, we are implementing strategies to enhance resilience and long-term growth. “This includes optimising pro

Asean to hold trade talks with US, GCC and China: Tengku Zafrul KUALA LUMPUR: Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz has said that the summit that Asean plans to hold with the United States is in the planning stages. It was previously reported that, in a major move to protect US metal producers, US President Donald Trump last Monday imposed 25% tariffs on all steel and aluminium imports, removing all previous exemptions. Brazil, Mexico, South Korea and Vietnam. GCC and Asean, and we are also looking at cross-border invest ment.

Meanwhile, Tengku Zafrul said the Asean summit with the Gulf Cooperation Council (GCC) and China is expected to take place in May, with the objective of ini tiating discussion between Asean and GCC for a free trade agree ment (FTA). “We want to increase and improve trade relations between

“At the same time, we want to see how we can be the bridge between Asean and the markets and have better flows of trade and supply chain with the three blocs,” he added. With Malaysia as Asean chair this year, Tengku Zafrul said, the grouping will continue to be a

This aligns with the latest development involving trade and tariffs between the US and other countries and how the shift would impact the region.

The decision, seen as a step towards a full-blown trade war, aimed to close loopholes that allowed tariff circumvention through countries such as Canada,