A senior government official in Malaysia has stated that the country will prioritize attracting investments in high-tech industries such as semiconductor and electric vehicles to solidify its status as a manufacturing hub in Southeast Asia within the global supply chain.

Sikh Shamsul Ibrahim, the Senior Executive Director of the Malaysian Investment Development Authority (MIDA), made this announcement during the Kuala Lumpur Economic Forum. He emphasized that in the face of ongoing trade wars and geopolitical tensions, Malaysia’s goal is to leverage the realignment and redistribution of global supply chains.

Ibrahim further stated that they are placing a strong emphasis on enhancing supply chain resilience and fostering closer collaborations with their trade partners. He also pointed out that they are actively exploring priority sectors with a particular focus on high-growth industries, including semiconductors, electric vehicles, and renewable energy.

In addition, Sikh Shamsul Ibrahim highlighted the government’s objective to introduce tiered corporate tax incentive measures, as per the 2024 budget plan, to attract investments in high-value and high-growth industries.

In September of this year, Malaysia unveiled a new industrial master plan that includes a $19.91 billion investment over seven years to advance its manufacturing capabilities. Key sectors in this initiative encompass electronics, chemicals, and electric vehicles, with the country also aiming to create 3.3 million new job opportunities.

(Image credit: Pixabay)

In response to persistently low sales and failure to meet production targets, Japanese automaker Mitsubishi Motors has announced its exit from local car production in China. The company has also revealed plans to invest up to 200 million euros in Renault’s EV venture, Ampere.

Mitsubishi Motors made this announcement in a press release following a board meeting on the 24th, which includes terminating production of Mitsubishi-branded vehicles in China.

The company cited the rapidly changing market of the Chinese automotive industry over the past 2-3 years, with a swift transition to EVs and significant shifts in consumer brand preferences. Despite launching a new model in December 2022 in an effort to boost sales, Mitsubishi struggled to meet its sales targets. Furthermore, the joint venture, GAC Mitsubishi Motors, has suspended operations at its Changsha plant in Hunan province since March 2023 to adjust inventory.

GAC Mitsubishi Motors is a company jointly established by Mitsubishi Motors, Mitsubishi Corporation, and Guangzhou Automobile Group (GAC Group), operates the Changsha plant, the sole new car production facility in China for Mitsubishi Motors. The company will transfer its entire shareholding in GAC Group, which ends Mitsubishi’s involvement in the local production of Mitsubishi-branded vehicles in China. Following this, GAC Mitsubishi Motors will become a wholly-owned subsidiary of the Guangzhou Automobile Group, and its EV brand, Aion, will continue to utilize the Changsha plant.

Mitsubishi Motors stated that it will maintain cooperation with Mitsubishi Corporation and the GAC Group to provide after-sales service to customers. As for the structural reform measures, the company anticipates recognizing a special loss of 24.3 billion yen in the fiscal year 2023 (April 2023 – March 2024) financial statements. However, this special loss has been partly factored into the previously announced financial forecast for the fiscal year and will not result in any changes at this stage.

Mitsubishi Motors currently estimates that its consolidated revenue for the fiscal year will increase by 13.1% year-on-year to 2.78 trillion yen, while its consolidated operating income will decrease by 10.8% to 170 billion yen and consolidated net income will decrease by 34.8% to 110 billion yen.

Furthermore, on the 24th, Mitsubishi Motors announced its investment in “Ampere,” the EV venture established by the Renault Group. The investment could reach a maximum of 200 million euros. Mitsubishi Motors intends to strengthen its EV research and development and expand its EV product lineup through this partnership. The company will procure EVs developed and produced by Ampere for sale under its Mitsubishi Motors brand, initially targeting the European market.

Ampere is a separate entity formed by Renault for its EV business, with plans to go public in 2024. Besides Mitsubishi Motors, Nissan has also committed to a maximum investment of 600 million euros in Ampere, and semiconductor giant Qualcomm has expressed its intention to invest as well.

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• [News] Mitsubishi Motors Ceases Car Production in China, Possible Takeover by GAC Aion

(Image credit: GAC Mitsubishi Outlander 2022)

According to the World Energy Outlook (WEO) 2023 released by the International Energy Agency (IEA) on Tuesday, the significant rise of clean energy technologies, including solar, wind, electric vehicles, and heat pumps, is reshaping the way factories, vehicles, household appliances, and heating systems are powered.

As per the latest WEO report, in 2020, only 1 out of every 25 cars sold was an electric vehicle; three years later, the ratio increased to 1 out of every 5 cars. By 2030, the number of electric vehicles on the road globally is set to nearly increase tenfold. Solar photovoltaic power generation is projected to exceed the entire electricity generation capacity of the United States. The share of renewable energy in the global power structure is expected to rise from its current level of around 30% to nearly 50%. Global sales of heat pumps and other electric heating systems will surpass those of fossil fuel boilers. Investment in new offshore wind projects will be three times that of new coal and gas-fired power plants.

IEA notes that this growth in green energy is based solely on the current policy plans of governments worldwide. If nations can fulfill their national energy and climate commitments in a timely and comprehensive manner, the progress of clean energy will be even more rapid. However, stronger and more forceful measures will need to be taken globally to have a chance of achieving the goal of limiting global temperature rise to 1.5 degrees Celsius.

WEO scenarios based on current policy settings reveal that the increasing momentum behind clean energy technologies, coupled with global structural economic shifts, is significantly impacting fossil fuels. There is a chance that global demand for coal, oil, and natural gas will peak in 2030.

In this scenario, the share of fossil fuels in the global energy supply may drop from around 80% in recent decades to 73% by 2030, and global energy-related carbon dioxide emissions are expected to peak in 2025.

Fatih Birol, the Executive Director of the IEA, emphasizes that the transition to clean energy is an unstoppable global phenomenon and the sooner, the better, for everyone.

(Image credit: Tesla)

Fisker, a prominent partner of Foxconn in the EV sector, is taking steps to expedite production and deliveries of its first all-electric SUV, the “Fisker Ocean.” However, faced with slowing EV demand and the market leader Tesla initiating a price war, Fisker has joined the price reduction battle, announcing a cut in the price of their flagship model, the Ocean Extreme.

As reported by media outlets including Reuters, Fisker revealed price reductions in the U.S. market on October 23rd. The Ocean Extreme, previously priced at $68,999, has been lowered to $61,499, marking a $7,500 reduction. Customers who have already placed orders and existing owners are eligible for these reduced prices. In the Canadian market, the price has been lowered from $89,999 CAD to $79,799 CAD (approximately $58,169 USD), a reduction of $10,200 CAD.

In comparison, the Ocean Extreme competes with Tesla’s Model Y Performance, which is currently priced at $41,390 in the U.S.

Fisker’s CEO, Henrik Fisker, acknowledged the competitive nature of the rapidly growing EV market, stating, “Fisker must adapt to the realities of intensified competition in the rapidly growing EV market.”

As interest rates and inflation have both risen, impacting consumer willingness to make vehicle purchases, Tesla initiated a price reduction strategy to solidify its position as a leader in the EV industry. For EV startups that are relatively new to the market and smaller in scale, this competitive landscape can be particularly challenging.

Currently, the Fisker Ocean is available in three versions, including the base single-motor Sport, the mid-range dual-motor Ultra, and the top-tier Extreme, all featuring dual-motor all-wheel drive, with the Extreme version boasting an impressive 564 horsepower.

While Fisker has reduced the price of the Ocean Extreme, the company has simultaneously increased the prices of the lower-tier Sport and Ultra models in the U.S. market by 4% and 6%, respectively. The new prices for these models are $38,999 and $52,999, and similar price adjustments have been implemented in the Canadian market.