06/08/2025

BIZ & FINANCE WEDNESDAY | AUG 6, 2025

14

Gentari and AWS ink power purchase deal for India wind energy project PETALING JAYA: Clean energy solu tions provider Gentari and Amazon Web Services (AWS) have signed a power purchase agreement (PPA) for an 80MW wind power project in Tamil Nadu, India. Following a collaboration agreement signed in 2023 with AWS, the PPA marks a concrete step towards the shared ambition of delivering new, cost-effective, utility-scale renewable energy projects. Targeted to commence operations in mid-2027, the project is expected to generate about 300,000 MWh of renewable energy annually. Through the supply of renewable energy, Gentari is advancing its vision of putting clean energy into action, while supporting AWS’s goal of reaching net-zero carbon by 2040. “This collaboration reflects our shared commitment to advancing practical, scalable, and clean energy solutions – vital for Asia and the world’s move towards a low-carbon future. Through projects like the Karur wind develop ment, we are not just adding renewable capacity – we are addressing real energy needs where it matters most. “Gentari is excited to support AWS in their net zero journey, and we welcome more partners to join us in building a more robust clean energy ecosystem,” said Gentari CEO, Sushil Purohit. AWS Asean managing director Jeff Johnson said: “As the world’s largest corporate purchaser of renewable energy globally, AWS continues to work towards our goal of reaching net-zero carbon emissions by 2040. Our collaboration with Gentari, a Malaysian clean energy leader expanding its regional impact, brings us a step closer towards that. “We’re proud to work with forward thinking organisations like Gentari who share our commitment to both techno logical advancement and environmental stewardship.” Corporate directors group lauds 13MP’s focus on governance PETALING JAYA: The Malaysian Alliance of Corporate Directors (MACD) welcomes the strong direction set by the Prime Minister in the 13th Malaysia Plan (13MP), particularly its focus on good gover nance, artificial intelligence readiness and long-term national competitiveness. “We fully support the government’s goal of placing Malaysia among the top 25 in the Corruption Perception Index and top 12 in the IMD Competitiveness Yearbook. These are governance targets, and Corporate Malaysia have a central role to play in achieving them,” said MACD in a press statement yesterday. The 13MP introduces critical reforms including the ILTIZAM Act, the Public Finance and Fiscal Responsibility Act, and a renewed push for GovTech and MyDigital ID. These initiatives mark a significant step forward in strengthening accountability across both the public and private sectors. As Malaysia’s oldest director institute and sole representative to the Global Network of Director Institutes, MACD urges corporate boards to take the lead by embedding ESG into strategy and reporting, setting up board-level oversight of AI ethics and risk, and embracing diversity, in line with the government’s 60% women participation goal.

13MP – semiconductor exports goal ‘achievable’

KUALA LUMPUR: Malaysia is setting its sights on becoming a halal pharmaceutical and health care hub for Asean, leveraging partnerships with India’s boom ing pharma sector as industry leaders prepare for the Second Malaysia Pharma and Healthcare Expo (MPHC 2025) to be held in October. The expo, to be held at the World Trade Centre Kuala Lumpur from Oct 7 to 9, is expected to attract more than 100 companies, up from 70 last year, alongside policymakers, researchers and investors across Asean, India, Australia and South Korea. Organisers say the event will spotlight innovations in halal certified drugs, active phar maceutical ingredient, biotech, regenerative medicine, tele PETALING JAYA: Malaysia’s plan to boost semiconductor exports to RM1 trillion by 2030, a centrepiece of the 13th Malaysia Plan (13MP), has been hailed as ambitious yet achievable by industry leaders, though economists warn that structural reforms will be key to ensuring the benefits translate into broader economic gains. Prime Minister Datuk Seri Anwar Ibrahim, in tabling the 13MP, identified semiconductors as one of the flagship high growth, high-value industries vital to Malaysia’s transition to high-income status and deeper integration into global tech nology supply chains. Malaysia Semiconductor In dustry Association president Andrew Chan said the nation’s recent performance and policy direction provide a solid foun dation for the RM1 trillion export target. “Malaysia’s E&E exports reached RM601 billion in 2024, and with the global semicon ductor market projected to double to US$1 trillion (RM4.23 trillion) by 2030, driven largely by the surge in demand for AI chips, Malaysia’s RM1 trillion export target is both ambitious and attainable,” Chan told SunBiz . He highlighted RM319 billion in approved investments bet ween 2021 and 2024, alongside the rollout of the National Semiconductor Strategy (NSS), launched in May 2024 and updated in July 2025, as pivotal enablers for the industry. “These developments lay a strong foundation for growth,” he Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

up manufacturing or joint ven tures in India. Asean-India Economic Council chairman Datuk Ramesh Kodam mal said Malaysia stands to benefit from India’s US$50 billion pharmaceutical export industry, particularly as Asean and India review their free trade agree ment, which has been in place for 11 years. “If we work closely with India, we will have a lot of benefit,” he said, adding Malaysia has a great advantage of re-exporting with these Indian companies for the Asean market a huge market of 700 million people. Ramesh confirmed that 40 Indian companies are slated to participate in MPHC 2025, alongside Asean, Australian and South Korean firms. - by DEEPALAKSHMI MANICKAM against viewing the sector’s suc cess as a panacea for Malaysia’s broader economic challenges. “These high-value sectors are largely market driven, and government interference is often unnecessary,” he said. “The most important features of 13MP are actually the social and structural elements, the extension of the minimum wage, the review of the retirement age and reforms to pensions and healthcare.” Williams argued that without parallel reforms to raise incomes, address underemployment and open up opportunities for SMEs, semiconductor gains risk being concentrated among larger cor porations and global players. “Technology and green growth are already unfolding organi cally,” he added. “Structural reforms are needed to ensure these gains benefit the wider economy and address long-standing issues like wage stagnation and job quality.” The 13MP’s semiconductor strategy builds on the NSS’s targets to create 10 local com panies with revenues exceeding US$210 million each, nurture 100 firms approaching US$1 billion revenue and train 60,000 skilled engineers by 2030. Economists say the com bination of surging global de mand, particularly for AI chips and Malaysia’s established role in the electronics supply chain creates a unique opportunity. However, they warn that talent bottlenecks, infrastructure gaps and uneven SME participation must be addressed for the RM1 trillion target to translate into inclusive growth.

o However, experts say broader structural economic reforms required to hit RM1 trillion by 2030 target

Chan: There is a strong foundation for growth. said, pointing to foreign direct investments from global giants like Intel and Infineon as well as the rapid scaling of local cham pions such as Inari and Vitrox. Chan stressed, however, that incremental growth would not be enough. “Success will require us to make hard choices and sacri fices,” he said. “It demands a deliberate pivot into high-value segments such as IC design, advanced packaging, semiconductor equipment manu facturing, wafer fabrication and particularly the design and pro duction of AI chips and servers, where global demand will be most pronounced.” Chan noted that Malaysia’s health and AI-driven diagnostics. Malaysia-India Business Council general secretary Datuk Surendran Menon said trade between Malaysia and India stood at US$20 billion (RM84.6 billion) in 2024, but pharma ceuticals made up just US$96– 104 million of that figure, a sign that there is significant un tapped potential. “India is known as the pharma of the world, while Malaysia offers halal regulation expertise and a strategic Asean posi tion.There’s strong potential in contract manufacturing, tech nology transfer and joint R&D, especially in halal pharma ceuticals and vaccines,” Suren dran told reporters at a media briefing yesterday. He said Malaysia imports more than 70% of its pharmaceutical

products, and the government’s national pharmaceutical policy is pushing for greater domestic production, a move that could entice Indian firms seeking to expand into Asean markets. He also pointed to India’s own 200-million-strong Muslim popu lation as an untapped market for halal pharma products manu factured in Malaysia. “Even if we tap just 50 million of that halal market in India, it’s far larger than our domestic market here. Halal-certified medicines made in Malaysia could be exported not just across Asean but also back into India itself,” he said. This strategy, he added, would allow two-way investment flows, Indian companies bringing R&D and cost efficiencies to Malaysia, while Malaysian firms could set Williams: High-value sectors are largely market driven. current strength lies in out sourced semiconductor assembly and testing services but argued that capturing greater value will require moving into front-end manufacturing and design, areas currently dominated by eco nomies such as Taiwan, South Korea and the United States. “One area for greater focus is on a more coordinated talent development strategy, especially skills for the new growth areas. What got Malaysia to where we are today will not get us to RM1 trillion in E&E exports by 2030.” While agreeing that semicon ductors will be a key growth engine, economist Professor Geoffrey Williams cautioned

Malaysia sets sights on becoming Asean halal pharmaceutical and healthcare hub