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 Energy Transition and Water Transformation Ministry has announced that electricity tariffs in Peninsular Malaysia will remain unchanged for the first half of 2025 under the Imbalance Cost Pass-Through (ICPT) mechanism.
Key points:
- Electricity subsidies: The government will finance RM2.388 billion in subsidies to shield domestic consumers from tariff hikes.
- Fourth Regulatory Period: The average basic tariff for Tenaga Nasional Bhd will be maintained under the Incentive-Based Regulation framework from 2025 to 2027.
- Future tariff changes: A new tariff schedule reflecting actual supply costs will be implemented from July 1, 2025, involving a financial allocation of RM3.57 billion by the government.
This approach ensures a balance in the energy trilemma of security, sustainability, and affordability, safeguarding domestic consumers while striving for competitive electricity pricing.
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