The electronics manufacturing services (EMS) sector in Malaysia has seen mixed performance in 2024 despite being part of the broader tech upcycle, with rising costs, inflation, and supply chain disruptions offsetting growth from increased global demand and outsourcing trends. Key EMS Performances Winners : SKP Resources Bhd (+76% YTD) V.S. Industry Bhd (+47% YTD) NationGate Holdings Bhd (+51% YTD) P.I.E. Industrial Bhd (+29% YTD) Strugglers : ATA IMS Bhd (-8% YTD) JHM Consolidation Bhd (-36% YTD) Growth Drivers and Challenges Diversification Opportunities : The China+1 and Taiwan+1 strategies have positioned Malaysian EMS players to gain market share. However, reliance on major customers, such as Dyson, continues to be a concern. Cost Pressures : High inflation and production costs have affected profit margins. Company Highlights SKP Resources : Recorded a 27% y-o-y net profit increase , benefiting from a recovery in consumer demand. V.S. Indust...
The Madani Government has demonstrated its commitment to addressing the cost-of-living challenges faced by Malaysians through an enhanced Sumbangan Tunai Rahmah (STR) initiative. With an allocation increase to RM13 billion in Budget 2025, up from RM10 billion previously, this marks the largest funding boost for STR to date.
Supporting Households Amid Rising Costs
Economist Prof Dr Barjoyai Bardai from Malaysia University of Science and Technology emphasized the importance of STR in easing financial burdens for households. While the aid may not cover the full cost of living for families—estimated at over RM3,000 monthly—it provides meaningful support to supplement household incomes.
Sustainable Aid Mechanism Proposed
Barjoyai suggested creating an endowment fund through a social security institution capable of generating annual income. This mechanism would ensure sustainable STR funding, reducing reliance on annual government budgets.
Expanding Reach and Impact
For 2025, STR will benefit 4.1 million households, a significant increase from 700,000 recipients in the previous year. Recipients will also receive Sumbangan Asas Rahmah (SARA) aid of RM100 monthly, starting April 2025. This assistance, credited to recipients’ MyKAD, can be used at over 600 participating supermarkets and retail outlets for essential purchases, such as:
- Food and beverages
- Medicine
- School supplies
- Personal hygiene products
Uplifting Socioeconomic Levels
Dr Noor Nirwandy Mat Noordin of Universiti Teknologi MARA highlighted the broader socioeconomic benefits of STR, noting that it helps foster reliance on government support and enhances the overall economic structure by facilitating direct benefits to citizens.
Increased Maximum Assistance
The expanded allocation allows the maximum household STR amount to rise to RM4,600, compared to RM3,700 previously. This increase underscores the government’s efforts to address living costs and promote well-being for the rakyat.
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