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Malaysia Productivity Corporation (MPC) deputy director-general Dr Mazrina Mohamed Ibramsah (Right) saidMalaysian companies that adopt Artificial Intelligence (AI) have improved efficiency by up to 80 per cent and reduced operating costs by up to 60 per cent, exceeding global benchmarks. — NSTP/ROHANIS SHUKRI. Malaysian companies that adopt artificial intelligence (AI) have improved efficiency by up to 80 per cent and reduced operating costs by up to 60 per cent, exceeding global benchmarks, said the Malaysia Productivity Corporation (MPC). MPC deputy director-general Dr Mazrina Mohamed Ibramsah said the results were achieved through a hands-on approach that focused on practical implementation rather than theoretical training, particularly among small and medium enterprises (SMEs). She said MPC had implemented 600 AI proof of concept projects under the AI for Productivity programme, covering factory automation, AI-enabled production processes, workforce optimisation and real-time customer analytics. She said the projects had generated value creation exceeding RM400 million. "MPC's role is to facilitate. Unlike previous programmes that focused mainly on AI training, where participants are shown various AI tools without clear application, we require companies to first identify their actual problems. "Companies may face labour shortages, low sales, high costs or challenges in marketing, such as whether to hire agents or develop marketing materials. Many lack sufficient manpower and face high wage costs. "Once we understand their problems, we introduce the most suitable tools for their needs," she said after the AI for Productivity 2025 programme. Mazrina said the initiative was designed to ensure AI adoption was inclusive, with strong emphasis on small firms, local vendors and SMEs, allowing them to strengthen their digital capabilities and become more competitive within the industrial value chain. In 2025 alone, she said, MPC rolled out 200 AI for Productivity knowledge-sharing and mentoring sessions, involving about 3,000 participants from 2,143 companies across 14 sectors. "Many companies think AI requires heavy capital expenditure. In reality, there are tools in the market that cost less than RM100 a month or are even free, but can significantly improve productivity if used in the right context." To scale adoption across the economy, MPC asked companies to act as "lighthouses", where selected firms that successfully implemented AI served as benchmarks for others in similar industries. "With nearly one million SMEs in Malaysia, we cannot reach everyone at once. By developing model companies, we allow others to replicate proven improvements rather than start from scratch." She said while international organisations such as the World Bank and the Organisation for Economic Co-operation and Development estimated productivity gains of 25 to 35 per cent from digital adoption, MPC's assessments showed efficiency improvements ranging from 35 per cent up to 80 per cent. "In some cases, efficiency improved by up to 80 per cent, productivity increased by 60 to 80 per cent across companies and projects and cost savings reached 40, 50 or even 60 per cent." The AI for Productivity 2025 programme, themed "Empower Learning, Drive Lasting Productivity", brings together industry players, technology practitioners and representatives from the manufacturing and services sectors to share best practices and showcase successful digital transformation initiatives. Source: www.nst.com.my

RX BITEC Invites Manufacturers to Lead Trends and Increase Profitability Through Technologies from 30 Countries Thailand’s manufacturing sector is facing a new wave of challenges and pressure. RX BITEC therefore invites entrepreneurs and manufacturers from around the world to join in transforming production through innovations at Manufacturing Expo 2026, ASEAN’s most comprehensive machinery and technology event for manufacturing and supporting industries. The event will bring together more than 2,000 brands from 30 countries and 29 international pavilions, showcasing technologies across plastics manufacturing, mold & die, automotive parts manufacturing, robots and automation, electronics manufacturing, surface finishing, as well as factory and facility management solutions. Seven specialized exhibitions will be held together under one roof from 17–20 June 2026, occupying more than 45,000 square meters across Halls 98–104 at BITEC, Bangkok. Mrs. Varaporn Dhamcharee, Managing Director of RX BITEC (Thailand) Co., Ltd., revealed that this year’s event is organized under the theme “Innovations that Define All Industries.” “We selected this theme because innovation is what our participants told us they are looking for. Last year, approximately 30% of visitors were factory owners and senior executives across various departments, followed by 29% management-level professionals, while the remaining 41% comprised engineers, procurement teams, R&D personnel, QC teams, IT professionals, and other operational functions. Visitors traveled from 37 provinces across Thailand and 86 countries spanning six continents, including ASEAN, Asia, Europe, Africa, North America, Oceania, and South America. They represented diverse industries including automotive, electronics and electrical appliances, medical devices, food and beverage, aerospace, packaging, cosmetics, jewellery and watches, furniture, construction and building, oil and gas, and many others.” Visitors to InterPlas Thailand, dedicated to plastics manufacturing technologies, showed strong interest in plastic injection machinery and equipment, chemicals and raw materials, as well as packaging production machinery. These trends reflect manufacturers’ growing demand to enhance production capabilities and explore new raw materials, particularly environmentally friendly materials. In the automotive sector, visitors to Automotive Manufacturing showed strong interest in Automotive Electronics innovations, automotive parts manufacturing machinery, and software for automotive parts design. Meanwhile, visitors to NEPCON Thailand, dedicated to electronics manufacturing technologies, showed strong interest in electronic component design tools, SMT technologies, inspection and measurement technologies, and PCB technologies. “This year, we have recorded a 91% increase in exhibitors related to PCB technologies,” Mrs. Varaporn added. As every parts manufacturing process requires molds and dies, InterMold Thailand, dedicated to mold and die manufacturing, attracts visitors from a wide range of industries. Visitors showed strong interest in mold and die manufacturing machinery, tools and tooling solutions, mold design software, and 3D printing innovations. “Once parts are produced, one essential process that cannot be overlooked is Surface Finishing — including surface preparation, coating, and finishing. This process is not only about appearance, but also provides additional properties such as UV protection, anti-corrosion, anti-bacterial performance, and anti-static protection. Visitors to Surface & Coatings showed particular interest in surface coating materials, surface coating equipment, and surface preparation technologies.” Across every production process, automation and robots also play critical roles in improving manufacturing efficiency. At Assembly & Automation Technology, visitors showed strong interest in assembly technology, industrial robots, as well as electrical and control systems. “All of these production processes should operate within factories that can effectively manage energy and environmental performance, embrace sustainability, and digitally manage machinery and systems. Factory owners and building executives from various industries who visited FacTech last year showed strong interest in energy management systems, IT solutions, as well as construction and maintenance technologies,” Mrs. Varaporn revealed For this reason, Manufacturing Expo 2026 and all seven co-located exhibitions under Manufacturing Expo have gathered the latest innovations from over 2,000 brands across 30 countries and 29 international pavilions from China; Japan; Singapore; South Korea; and Taiwan, China. In addition, RX BITEC has collaborated with AMTS, organized by RX in China, to bring leading automotive parts manufacturing technology providers representing global brands from Germany, Italy, the United Kingdom, and China to showcase world-class manufacturing technologies accessible to Thai entrepreneurs through the dedicated AMTS Pavilion. Innovation Highlights of Manufacturing Expo 2026 InterPlas Thailand: Imported from Germany, the precisionMolding (500–3,200 kN) all-electric plastic injection molding machine delivers outstanding precision and energy efficiency. Presented by KraussMaffei Machinery (China), the system is equipped with MuCell Micro-Foaming Technology that helps reduce product weight while supporting lightweight vehicle development, environmentally friendly manufacturing practices, and next-generation automotive industries. The solution also meets manufacturing requirements for the medical device and electronics industries. InterMold Thailand: SODICK (THAILAND) will showcase the Wire-cut EDM AL i Groove+ Edition series, an advanced wire-cut EDM and electrical metal processing solution designed to enhance energy efficiency and productivity. Equipped with a full inverter system, the machine can reduce energy consumption by up to 50% while increasing productivity by 20% compared with previous models Automotive Manufacturing: SUZHOU TOX PRESSOTECHNIK is set to present intelligent manufacturing solutions from Germany’s TOX® at the AMTS Pavilion. The showcase highlights their comprehensive, end-to-end services covering production design, system installation and customization, training, after-sales support, as well as complete machinery and turnkey production line solutions. Assembly & Automation Technology: Launched in Thailand for the first time, the Free Navigations AGV by Creform Yazaki (Thailand) is an intelligent AGV system that operates without floor guidance lines, offering flexible route adjustment that makes it ideal for modern factories where production layouts frequently change. Featuring iPad-based control, a LiDAR system, and advanced safety technology, the solution helps improve the efficiency of internal factory logistics and transportation. Surface & Coatings: Specially manufactured in the United States, the Pureray XRF Supreme by PURERAY INSTRUMENT (THAILAND) is a high-precision, non-destructive coating analysis and thickness measurement technology capable of simultaneously analyzing up to 10 coating layers. Ideal for the electroplating and PCB industries, the system delivers speed, accuracy, and reduced calibration processes for enhanced operational efficiency. NEPCON Thailand: The SIPLACE V, a flagship high-speed electronic component placement machine by ASMPT SMT SINGAPORE PTE. LTD., one of the world’s leading component placement technology providers, is a newly re-engineered system that combines industry-leading performance, maximum flexibility, and exceptional precision, while ensuring full compatibility with existing SMT production lines. FacTech: Join SCG in transforming your factory, as SCG’s team of experts will provide consultation for factory operators across all industries on UPVC roofing systems, which play an important role in energy and environmental management, as well as employee well-being within factories. SCG will also showcase solar energy systems, supported by expert consultation and calculation models designed to help factory owners minimize electricity costs through solar energy installation. In addition, ONNEX by SCG will present energy solutions, factory efficiency technologies, and practical pathways toward becoming a Sustainable Factory that businesses can realistically implement. Beyond the technology exhibition area, Manufacturing Expo 2026 will also feature an extensive knowledge-sharing and conference program with 90 seminar topics presented by 133 speakers, with content developed in collaboration with 43 partner organizations including: Automotive Summit 2026, organized jointly with the Thailand Automotive Institute for the 13th consecutive year under the theme “Smart Mobility – Smarter is Future,” will explore the future of mobility through four key dimensions: safety, pleasure, cost efficiency, and environmental sustainability. Participants will also hear from international experts and industry leaders shaping the future of global mobility. TAPMA Conference, organized by the Thai Auto-Parts Manufacturers Association, will feature a special session titled “Automotive in Transition: Redefining in a Changing World.” Manufacturing Expo Forum, a dedicated seminar platform located in Hall 104, will feature a wide range of specialized conferences, including: INTERMOLD FORUM, organized jointly with the Thai-German Institute, will reflect the opportunities and challenges facing the industry. The forum will focus on innovations throughout the plastic injection value chain amid rising energy and material costs. ROBOTICS & AUTOMATION SYMPOSIUM, organized jointly with the Institute of Field Robotics and the Thai Automation and Robotics Association, will highlight robotics and automation as game-changing technologies capable of transforming manufacturing and elevating Thailand’s industrial competitiveness to international standards. NEPCON Forum, organized jointly with The National Electronics and Computer Technology Center (NECTEC, a member of NSTDA), will feature key discussions on Smart Investment promotion measures, the outlook for the electronics industry value chain, and corporate roadmap development through the Thailand 4.0 Index. SURFACE & COATINGS FORUM will serve as a conference platform bringing together technology leaders, researchers, and industry experts from Thailand and overseas to exchange insights on digital transformation, sustainability, and the evolving role of plating and surface coating technologies. Organized jointly with Thailand Electroplating Industrial Network Association, the forum will also feature the presentation of the Surface & Coatings Innovation Prize 2026. Industrial AI Developer Summit, held for the second consecutive year in collaboration with the Artificial Intelligence Association of Thailand and the Thai IoT Association, will highlight how AI can transform manufacturing and accelerate the transition toward smart factories. FacTech Focus will serve as a dedicated platform analyzing modern factory management technologies, including water management, waste management, and real-time monitoring systems, featuring 19 focused sessions designed specifically for factory owners and executives in Hall 98. Special Zones and Activities: Visitors can also explore dedicated innovation zones and activities, including the BIOPLASTICS ZONE, showcasing innovations in bio-based plastics; the 3D Tech Pavilion, featuring the latest advancements in 3D printing technologies; and the Tools & Tooling Pavilion, a dedicated center for industrial tools and equipment. Additional highlights include the Surface & Coatings Innovation Prize 2026, a competition recognizing innovations in metal and material coating technologies, open to industrial professionals, researchers, and new-generation innovators competing for prizes totaling more than THB 100,000. The event will also feature the IPC Hand Soldering Skill Development Workshop, a competition and training workshop based on international soldering standards, as well as The 2nd WorldSkills Thailand Roadshow covering Mechatronics, Robot Systems Integration, and Autonomous Mobile Robotics, organized jointly with the Department of Skill Development, Ministry of Labour. Alongside the roadshow, the WorldSkills Thailand Friendly Match 2026 - Welding will gather welding representatives from 10 ASEAN countries ahead of Asian-level competition. “We also provide a business matching service called Meet My Match. Visitors who pre-register for the exhibition will receive an email containing a Username and Password to access the online platform, where they can schedule business meetings with exhibitors of interest in advance before meeting onsite at the Business Matching Lounge during the event,” Mrs. Varaporn added. Manufacturing Expo 2026 will take place from 17–20 June 2026, from 10:00 AM to 6:00 PM, at Halls 98–104, BITEC, Bangkok. Admission is 500 Baht; however, visitors who pre-register by 16 June will receive free admission. Registration is available at www.manufacturing-expo.com. A single registration grants access to all seven exhibitions throughout the four-day event, including seminar participation and access to the business matching platform. For more information, please contact +66 2 686 7222 or email contactcenter@rxbitec.com

ProPak China 2026, the 31st International Processing and Packaging Exhibition, is scheduled to be held at the National Exhibition and Convention Center (NECC, Shanghai) from June 15 to 17, 2026. Organized by Sinoexpo Informa Markets, the event focuses on technological innovation and full-industry-chain collaboration, demonstrating the growing strength of Asia’s processing and packaging industry in its digital and sustainable transformation process. Co-hosted with FoodPack China, Hi & Fi Asia-China, HNC Expo and Starch Expo, this five-in-one exhibition forms a complete industrial ecosystem covering raw materials, processing, packaging and finished products. With a total exhibition area of 200,000 square meters, it will gather more than 2,500 leading exhibitors from various countries and regions including Belgium, China, Canada, France, Germany, Italy, Japan, New Zealand, Norway, Spain, Sweden, Switzerland and the United States, and is expected to welcome over 120,000 professional buyers from around the world. As a high-influence industry platform, the exhibition integrates product display, business matching and industry networking, effectively promoting global trade and industrial development. Eight Themed Zones Drive Smart and Efficient Production Upgrading The exhibition features eight core sectors: packaging machinery, food processing, intelligent equipment, filling, fermentation, daily chemical packaging, packaging materials and label printing, highlighting cutting-edge technologies and practical solutions to support corporate transformation. Renowned exhibitors from across the world will showcase their flagship processing and packaging equipment and innovative technologies, offering diverse options for end-users in food, beverage, dairy, daily chemicals, FMCG, pharmaceuticals, healthcare and other sectors. From single-point technological breakthroughs to intelligent line-wide collaboration, exhibitors will address industrial upgrading demands with innovative practices, propelling the processing and packaging sector to leap from automation to intelligence. Empowering Cross-border Trade to Build a Global Business Bridge According to China Customs statistics, China’s export value of food processing and packaging equipment rose 18% year-on-year in 2025, and the export share of intelligent packaging machinery exceeded 40%, reflecting remarkable improvement in technical capabilities. This trend has been positively received in global procurement: the previous edition attracted nearly 6,000 overseas professional buyers from 135 countries Backed by a 30‑year buyer database and hosted buyer programs, ProPak China 2026 offers a full‑service trade system: from targeted sourcing to dedicated matchmaking and efficient deals. In 2025, the show hosted 498 business matching sessions, with over 70% international sessions connecting exhibitors with buyers from Malaysia, Vietnam, Thailand, Indonesia, Russia, Egypt, Germany, Mexico and beyond. Discussions covered intelligent filling equipment, digital packaging lines, aseptic processing and other cutting-edge sectors. High-level Forums to Forge an Industry Think Tank Responding to strong demand for cross-border integration, technological innovation and practical implementation, the event will host a series of high-standard professional forums, focusing on smart manufacturing, packaging design, green packaging materials, Prepared dish industrialization, daily chemical processing and packaging. In-depth discussions will cover policy implementation, technology application, efficiency improvement and cost optimization, providing forward-looking insights and practical guidance for industrial transformation. A dedicated immersive experience zone will showcase cutting-edge achievements in smart factories, innovative design and green packaging, and daily chemical product experiences, enabling visitors to explore real‑world applications and future‑ready solutions. Join ProPak China 2026 in Shanghai This June ProPak China 2026 presents the full landscape of new quality productive forces in processing and packaging. We invite global professionals to network, source and partner in Shanghai this June. ProPak China 2026 Date: June 15–17, 2026 Venue: National Exhibition and Convention Center (NECC, Shanghai) Media & Visitor Inquiry Ms. Jovienne Dai Sinoexpo Informa Markets Tel: 86 21 3339 2386 E-mail: Jovienne.Dai@imsinoexpo.com

Microsoft unveiled US$23 billion in new artificial intelligence investments, with the bulk earmarked for India as the US tech giant deepens its bet on one of the world’s fastest-growing digital markets. AFP PIC Microsoft unveiled US$23 billion in new artificial intelligence investments, with the bulk earmarked for India as the US tech giant deepens its bet on one of the world's fastest-growing digital markets. CEO Satya Nadella said Microsoft would spend US$17.5 billion in India in its largest investment in Asia, building on a US$3 billion commitment announced earlier this year. The four-year spending plan starts in 2026 and would give Microsoft the largest cloud-computing presence in India. With around a billion internet users and deep tech talent, India has become a key destination for US tech giants, which are investing billions of dollars to build AI infrastructure. Data centres are seen as the South Asian country's best shot at breaking into the boom, given that it has limited chip-manufacturing capabilities. Google said in October it would invest US$15 billion over five years to build an AI data centre in the southern state of Andhra Pradesh, its biggest commitment in the world's most populous nation. The Microsoft spending will "help build the infrastructure, skills, and sovereign capabilities needed for India's AI first future," Nadella said in a post on X, sharing a photo of himself with Indian Prime Minister Narendra Modi. Nadella is in the country for a three-day trip for the company's AI conferences, with events in the capital New Delhi, IT hub Bengaluru and financial centre Mumbai starting Wednesday. The investments - the latest big-ticket outlay by technology companies in the high-stakes AI race - come amid a diplomatic standoff between New Delhi and Washington over tariffs and a stalled trade deal. Canada Investment Plans Microsoft said earlier in the day it would invest more than C$7.5 billion (US$5.42 billion) in Canada over the next two years, with new cloud capacity under the investment slated to come online in the second half of 2026. The move was part of its total planned Canada spending of C$19 billion between 2023 and 2027. That would help the company expand its Azure Local cloud offering in the country, and Microsoft is also partnering with Canadian AI startup Cohere to offer the firm's advanced AI models on its Azure platform. The Windows maker and other big US cloud providers are expected to spend more than US$400 billion on AI this year to build out data centres needed to support services such as ChatGPT, Copilot and Gemini. But that growing spending, limited evidence of real-world AI productivity gains, soaring valuations and a web of circular investments have stoked fears of an AI bubble. Data Centre Expansion, More Skilling Initiatives Microsoft said a new data centre in Hyderabad would be its largest hyperscale region in India and is expected to go live in mid-2026. It will also expand its three existing regions in Chennai, Hyderabad and Pune, and has doubled a January pledge to equip 20 million Indians with essential AI skills by 2030. Total data centre capacity in India is expected to more than triple to about 4.5 gigawatts by 2030, according to real estate consultancy Colliers. One gigawatt of computing power is roughly enough to power about 750,000 US homes. Microsoft employs more than 22,000 people in India and about 5,300 in Canada. It announced plans to invest US$10 billion in AI infrastructure in Portugal as well as US$15 billion in the United Arab Emirates last month. Source: www.nst.com.my

Malaysia’s technology (tech) sector continued its strong momentum in 2025, powered by rapid advances in artificial intelligence (AI) and a boom in data centre investments, amid intensifying strategic competition between the United States and China. Malaysia's technology (tech) sector continued its strong momentum in 2025, powered by rapid advances in artificial intelligence (AI) and a boom in data centre investments, amid intensifying strategic competition between the United States and China. This year, Malaysia remains an attractive alternative for multinational technology investors, with Penang and Johor standing out as the country's primary tech hubs. Penang, dubbed as Malaysia's Silicon Valley, continued to lure semiconductor and high-value electronics manufacturers, supported by its robust supply chain and skilled talent pool. Johor, meanwhile, cemented its position as a rising data centre cluster and strategic extension of Singapore's digital infrastructure spillover, drawing billions in cloud, AI, and hyperscale investments. Government incentives, public-private collaborations and growing confidence among global tech companies have reinforced the country's place on the regional technology map. The sector's growth is further supported by government initiatives under the Malaysia Digital Economy Blueprint (MyDIGITAL) and by stronger foreign investment in data centres and cloud computing. Prime Minister Datuk Seri Anwar Ibrahim stated that companies benefit from tax incentives and research and development support, encouraging the development of local talent and collaboration across industries to boost technological advancements and operational efficiency. Investments In 2025 In the first half of 2025 (1H 2025), approved investments in the AI sector reached RM13.29 billion. The data centre and cloud vertical were the leading area of investment under the Malaysia Digital initiative, contributing RM30.95 billion to total digital investments. According to the Malaysian Investment Development Authority (MIDA), Malaysia continued to chart a resilient course in the 1H 2025, recording RM190.3 billion in approved investments across the services, manufacturing, and primary sectors, an 18.7 per cent increase compared to the same period last year. In the 1H 2025, RM88.3 billion or 46.4 per cent of approved investments were aligned with the National Investment Aspirations' (NIA) priority sectors, namely advanced technology, digitalisation, green growth, and inclusivity. A total of 143 data centre investment projects have been approved between 2021 and June 30, 2025, including 25 projects with Malaysia Digital status under the Digital Ecosystem Acceleration Scheme incentive, with total investments worth RM144.4 billion and the creation of 1,429 new jobs. Furthermore, major global tech players have announced substantial investments in Malaysia, particularly in data centres and AI infrastructure, including commitments from Microsoft, Google and Amazon Web Services (AWS). On July 29, YTL Power International and Nvidia Corp signed an agreement to develop US$2.36 billion (US$1=RM4.12) of AI infrastructure in Malaysia, and on Oct 31, Malaysia's first Nvidia-powered AI data centre in Johor became operational. On Feb 12, Asia Pacific and Japan hyperscale data centre specialist AirTrunk announced plans to develop its second cloud and AI-ready data centre, AirTrunk JHB2, located in Iskandar Puteri, Johor. Meanwhile, Basis Bay's collaboration with ST Telemedia Global Data Centres was described as a model of how regional partnerships can strengthen Malaysia's position as a digital hub for Southeast Asia. Data Centre Development Blooms This Year This year, the data centre market in Malaysia boomed, driven by demand for cloud computing and rising AI workloads. Currently, Malaysia has 119 data centres listed, with 15 different markets (locations) in Malaysia. Johor is becoming Southeast Asia's fastest-growing data centre hub, which is expected to account for 60 per cent of Malaysia's capacity by 2030. Anwar, citing third-quarter 2025 gross domestic product (GDP) data, noted that the services account turned around to record a surplus of RM0.7 billion in that quarter, marking the first surplus in 14 years. He explained that the achievement was driven by the MADANI Economy strategies, digital transformation through the New Industrial Master Plan (NIMP), the energy transition agenda, the National Semiconductor Strategy (NSS) and high-impact sectors such as data centres. The rapid development of data centres has benefited the national economy. Although their construction requires substantial initial imports, the assets would eventually generate significant service exports after operations begin, thereby contributing to the overall improvement of the services sector. "Service export earnings from data centre development are now showing very strong performance," Anwar stated. Strengthening Malaysia's Position in The Technology Ecosystem This year, while serving as ASEAN 2025 chair, Malaysia also played an important role in driving the tech sector, including the Asean Technology Cooperation and Development Summit and Asean Digital Ministers' Meeting, focusing on AI, cybersecurity and digital economy frameworks. The Digital Economy Framework Agreement (DEFA), which aims to boost digital cooperation and trade in the region by establishing rules in areas such as data flows, e-payments, and cybersecurity, has made significant progress in negotiations, with the goal of concluding and signing the agreement in 2026. At the same time, the Malaysia-US Agreement on Reciprocal Trade (ART), signed by both US President Donald Trump and Anwar on Oct 26 during the 47th Asean Summit and related meetings, allows over 1,700 categories of Malaysian goods to enter the US duty-free, including the electrical and electronic sector, which is vital to Malaysia's economic growth. Under the ART, Malaysia is now recognised as a trusted supply chain partner, which is expected to facilitate smoother trade flows in goods, including strategic and high-tech products. Furthermore, Malaysia is intensifying efforts to position itself as a global hub for the semiconductor industry, in line with the government's strategic aim of moving up the value chain towards integrated circuit design and advanced manufacturing. According to the Malaysia Semiconductor Industry Association (MSIA), the NSS underscores the country's commitment to strengthening its role in the global technology ecosystem through targeted investments, talent development, and strong collaboration between the government, industry players, and local startups. Outlook According to the Ministry of Digital, 2026 will be a significant milestone in its efforts to elevate Malaysia into an AI-driven nation. The ministry noted that the country's AI ambition goes beyond technology development, as it involves creating a comprehensive ecosystem that integrates policy, talent, digital trust, and investment, enabling Malaysia to position itself as a competitive, high-impact regional AI hub. To realise this goal, the government has allocated RM1.36 billion to the ministry under Budget 2026, including RM248.5 million for operating expenses and RM1.11 billion for development projects. Hence, most analysts said Malaysia's tech sector outlook for 2026 remains optimistic, driven by the government's initiatives expected to boost the industry. Source: www.nst.com.my

Developers hope the robot can boost seniors’ rehabilitation and independence as Singapore moves towards becoming a super-aged society. Stroke survivor Leow Cher Hwa participating in a Zumba class with the help of the Data-driven Robotic Balance Assistant. Mr Leow Cher Hwa never thought something as simple as walking would become a daily struggle. The 66-year-old suffered a stroke in 2022 that left him half-paralysed. He spent two months in hospital, grappling not just with physical challenges but emotional ones as well. "I was very pessimistic and depressed. I took it very hard for the first two months,” he recounted. But things began to change for the better from August last year, when he was chosen to take part in a trial involving a new rehabilitation robot at the Lions Befrienders’ Active Ageing Centre in Tampines. Billed as the first of its kind in the world, the Data-driven Robotic Balance Assistant (DRBA) is designed to help seniors with mobility challenges by catching them before they fall. Using inbuilt sensors and artificial intelligence, the robot can instantly detect a loss of balance and support the user, potentially preventing serious injuries. It was rolled out during a Zumba class with Mr Leow and fellow seniors on Wednesday (Jan 21), which was attended by Tampines Member of Parliament Charlene Chen. As Singapore moves towards becoming a super-aged society, the robot’s developers hope the robot can be rolled out through community care groups to support rehabilitation and help seniors stay independent. For users like Mr Leow, the DBRA has been a confidence booster. Strapped securely to the device, he is now able to take part in standing activities and even dance with peace of mind. For community care providers, the benefits go beyond safety. "DRBA allows them to come off from the machines or their motorised wheelchair, to be able to stand up and join in the standing activities. Otherwise, they're only confined to chair Zumba and anything seated down, which means that it further weakens the leg muscles," said Ms Karen Wee, executive director of Lions Befrienders. Making It More Affordable However, affordability remains a major challenge. The robot is estimated to retail at around S$90,000 (US$70,000), putting it out of reach for most individuals and community groups. To address this, the team behind it - led by researchers from Nanyang Technological University - is exploring a rental model for community health organisations. "It has to be a price that the seniors are willing to pay, so we're targeting maybe S$30 to S$40 out of pocket for them. But that's not the real cost,” noted Associate Professor Ang Wei Tech, director of the university’s Robotics Research Centre, who invented the DRBA. “The real cost should be between S$150 and S$200 per session, so that difference has to come from somewhere. Is it a government subsidy? Is it philanthropist money? That, we need to explore.” He added that discussions with government agencies could follow once the current trial concludes. “We shall see which is the best channel for us to propose this plan to the government. We know that there's a lot of funding to allow the seniors to get active … Hopefully, we can have some success in lobbying for the government to support this effort,” Assoc Prof Ang said. The team is also in the process of applying for regulatory approval. Assoc Prof Ang said the team is looking to get the Health Sciences Authority’s nod by June, after which they can sell the DBRA in Singapore. Looking ahead, researchers plan to develop a smaller version of the robot for home use later this year, potentially extending its benefits beyond community centres and into seniors’ homes. Source: www.channelnewsasia.com

Hospital Pakar Universiti Sains Malaysia (HPUSM) is now offering training in robotic technology for knee surgery as part of efforts to advance medical practice in line with current technological advancements. Universiti Sains Malaysia (USM) vice-chancellor Prof Datuk Seri Dr Abdul Rahman Mohamed said robotic technology is part of the components of the Master of Medicine (Orthopaedics) programme. He said that through the training, postgraduate students are exposed to high-precision surgical practices and data-driven pre-operative planning, as well as objective intraoperative assessment. “HPUSM is also among the main training centres for orthopaedic specialists in Malaysia. “It also offers the Arthroplasty Fellowship Programme for advanced training in joint replacement surgery,” he told the media, which included Bernama, after launching the Robotic Total Knee Replacement Surgery Service at Dewan Utama Kampus Kesihatan USM in Kubang Kerian, here yesterday. Elaborating further, he said the training is conducted by three instructors: Prof Dr Amran Ahmed Shokri, Dr Muhammad Rajaei Ahmad Mohd Zain, and Assoc Prof Dr Shaifuzain Ab Rahman. “So far, about 80 postgraduate students have enrolled in the programme, in line with HPUSM’s commitment as an academic hospital to train more specialists, particularly in robotic surgery,” he said. In a related development, Abdul Rahman said HPUSM also offers robotic total knee replacement surgery using the Rosa Knee System, which functions as a surgical assistant. He said the first procedure was successfully performed on Sept 23 last year, and to date, 13 patients have undergone surgery using the system, with early clinical outcomes showing encouraging progress. “The introduction of this service enables patients on the east coast to gain access to high-technology knee surgeries that improve their quality of life through better knee function restoration,” he said. Source: www.thestar.com.my

Currently, Digit is working with Amazon to help move products in warehouses. — Business Wire/TNS Digit the humanoid robot is 5 feet 9 inches (175cm) tall and lives in warehouses, helping its human coworkers move and stack boxes up to 35 pounds (15.87kg). It also "smiles" and waves. Robots like Digit are a growing pursuit among robotics companies that are trying to bring humanoids into everyday life, and specifically into the home as helpers. A crucial part of that equation is using artificial intelligence to help the robot observe, interpret and respond to its surroundings in real time, without human intervention. But your dishwasher is also a robot and one that works quite well, said Pras Velagapudi, chief technology officer at Agility Robotics, the maker of Digit. And, most important, it's proven safe in the home. While humanoid robots may not be folding your laundry and doing your dishes anytime soon, companies including Salem, Ore.-based Agility have a long-term goal to put robots wherever they can be in the world. "We want to be producing a humanoid robot that can solve all of those disparate types of labor problems that are out there in the world," Mr Velagapudi said. "We would love to have Digit take on all of the manual labor that people don't want to." But Digit, for now, is for industrial use. "We just have a plan to get there that involves starting with the most obvious, short-term places where we can put Digit right now," he said. Velagapudi has worked with many different robots across two decades including 10 years at Carnegie Mellon University. For him, one observation has held true. "Robots have to serve purposes," he said. "They can't just exist in the world for the sake of existing in the world. They have to be able to do useful work to prove themselves, at least at scale." Although Agility builds humanoids – which are an "extremely powerful" form – he warned against the notion that human-shaped is the only, or best, kind of robot configuration. "There's great robot arms that are welding cars together. There's conveyance systems that can store and retrieve boxes," Velagapudi said. "Your dishwasher is a robot. It works great. You wouldn't necessarily want to replace your dishwasher with a humanoid standing over the sink." Currently, Digit is working with Amazon to help move products in warehouses. On Wednesday, Agility announced a partnership with Mercado Libre, "the leading company in e-commerce and financial technology in Latin America" headquartered in Montevideo, Uruguay. Digit will help with fulfillment operations at Mercado Libre's facility in San Antonio. Employing AI Robotics and artificial intelligence grew up together, often informing each other's growth. Today, AI is helping accelerate robotics, and robotics gives AI a "body" to experience the world. But that began in the 1960s with Shakey the Robot, "the first mobile robot with the ability to perceive and reason about its surroundings," according to its genesis institution, the Stanford Research Institute. Shakey had a camera and optical rangefinder to "see," as well as bump detectors, a radio antenna and push bars to move things. "Historically, a lot of robotics techniques are AI techniques. They're indistinguishable," Velagapudi said. "They were the same things from day one." "More recently – and when I'm talking more recently, I mean decades – AI's become its own thing as it's been adapted to serve these different needs outside of just the robotics and pure computer science space." That more "modern" AI, he said, is crucial to Digit – for operating controls, learning skills, keeping balance, perceiving objects in the world, "areas where the robot can't necessarily be completely exactly told what the answer is," he said. You can't write an equation for everything, he said. Agility's team also uses AI, such as Google and Nvidia products, in their everyday workflows, "like any fast-paced business out there right now," Velagapudi said. The tools have gotten "quite good and quite affordable" he said, and AI acts as a huge multiplier to the team, helping offload documentation and program management. AI also augments Agility's coding process as a kind of "coach," which is significant given that half of the engineering team is in software development, while the other is in hardware. But ultimately, he said the engineers are fully responsible for the code they write, whether they choose to use AI or not. Safety In Future Human-Robot Coexistence Digit was a hit at the Pittsburgh Robotics Network's Robotics and AI Discovery Day, which was held at the David L. Lawrence Convention Center in November. A blue and silver humanoid, Digit garnered much attention at the convention in the "Robotics" zone, where people fawned over the bot. Digit smiled back with its pixelated eyes, and waved at its audience. But Digit was still kept behind crowd-control stanchions, away from direct contact with visitors. Although robots far more dangerous than humanoids have been a part of manufacturing and industry for some time now, the safety around humanoids is a new, developing science – and a "much, much, much harder challenge that AI on its own doesn't immediately solve," Velagapudi said. It will be some time before humanoids are proven safe in the home. "How do you add something that is potentially hazardous into your environment safely? That's why I think we can see adoption of humanoids in those sectors, in warehouse and logistics and manufacturing, because we've kind of started that work way back in the '60s when the first robot arms were coming into the space," he said. But the fact that humanoid robots can enter the world around them without necessarily changing its infrastructure is an exciting new frontier, he said. "My favourite part about all of this is we're truly at a point where we can build machines that go out in the world and affect it in ways that are very similar, on par, to what humans can do. That's so exciting," Velagapudi said. "That's never been the case before. It's never been the case that you could take a robot out into the world and easily have it do something like play cornhole, or move around the same objects that you move around without having to modify the environment, without having to put rails on it or put special tags on it." Source: www.thestar.com.my

By the Machinery & Engineering Industries Federation (MEIF) Automation is no longer novel within Malaysia’s machinery and engineering (M&E) sector. Robotic welding cells, CNC upgrades, ERP platforms, machine vision systems, and warehouse automation are increasingly common across factories of varying scale. Yet a structural gap persists. While many firms have automated discrete processes, fewer have embedded those investments within an integrated capability framework. The distinction is not semantic. It directly affects resilience, audit performance, and long-term competitiveness. Automation improves individual tasks. Sustainable performance depends on whether those tasks operate within disciplined processes, aligned standards, coordinated planning, and accountable governance structures. The Automation Illusion Across the sector, manufacturers report familiar symptoms: OEE variability despite automation investments Scrap rates that remain elevated in mixed-model production Downtime clustering linked to weak maintenance integration Traceability gaps during customer or regulatory audits Manual workarounds within digitised workflows These patterns do not necessarily indicate technology failure. More often, they reflect incomplete systems integration. Where automation is deployed without synchronising planning, quality control, maintenance, logistics, and data governance, complexity increases while coherence remains fragile. Installing robotics does not automatically stabilise sequencing discipline. Digitising workflows does not ensure crossfunctional coordination. Dashboards provide visibility, but visibility alone does not resolve structural misalignment. Capability as Competitive Infrastructure Global buyers increasingly assume a baseline level of automation. What differentiates suppliers is their ability to demonstrate: Traceability under audit Standardised operating procedures Predictable lead times Risk management discipline Governance consistency across facilities As supply chains fragment under geopolitical recalibration and compliance scrutiny intensifies, variability that once went unnoticed now carries contractual and reputational risk. Automation may be necessary. Capability maturity determines credibility. Industrial capability rests on interdependent pillars: Process discipline Standards alignment Skills architecture Operational governance Continuous improvement systems Technology strengthens these pillars when integrated coherently. On its own, it does not substitute for them. The ASEAN Moment ASEAN’s expanding role in global manufacturing creates opportunity, but also exposes structural weaknesses. Output expansion without governance maturity increases systemic risk. Performance variance is not merely operational inefficiency; in volatile markets, it compounds financial exposure and erodes buyer confidence. The next phase of competitiveness in Malaysia’s M&E sector will depend less on the volume of automation deployed and more on the consistency with which firms can: Maintain performance stability under volatility Demonstrate compliance transparency Synchronise production and logistics planning Standardise execution across facilities and shifts This is fundamentally a systems challenge. Sector-Level Coordination Industrial upgrading rarely succeeds through isolated vendor deployments or pilot projects alone. Sector-wide competitiveness depends on raising the median capability maturity across firms. Industry institutions contribute by: Encouraging shared maturity benchmarks Facilitating cross-sector dialogue Supporting structured capability mapping Promoting standards alignment Bridging industrial practice with policy frameworks Isolated excellence does not secure ecosystem resilience. Coordinated maturity does. From Digitalisation to Industrialisation Digitalisation introduces tools and data visibility. Industrialisation requires structural integration across processes, standards, governance, and workforce capability. Malaysia’s M&E competitiveness will depend on how effectively firms translate automation investment into: Stable OEE performance Reduced inter-shift variance Improved MTBF through predictive maintenance integration Standardised traceability protocols Governance systems that scale with growth Automation reduces labour intensity and enhances efficiency. Long-term relevance in global supply chains depends on whether those efficiencies are embedded within disciplined, resilient operating models. In the coming decade, firms that sustain performance will be those that treat automation as one component of a broader capability architecture — designed to remain stable even as external conditions fluctuate. Side Box ● Sit within or immediately after “The Automation Illusion” section. ● Be visually differentiated (light grey background, border, or typographic contrast). Operational Snapshot A mid-sized precision machining firm installs automated CNC cells and a warehouse management system. Machine utilisation improves, yet on time delivery continues to fluctuate. Review reveals that production sequencing, tool-change coordination, and material staging remain manually synchronised across departments. While the equipment performs as specified, variability persists because cross-functional planning and governance were never standardised. The constraint lies not in automation itself, but in the integration of processes around it.

Organized by RX, Fac Tec China will take place from June 2–4, 2026, at the Shanghai World Expo Exhibition & Convention Center. This premier trade event comes at a pivotal moment for the global electronics manufacturing industry, as companies face mounting pressure to improve efficiency, adopt sustainable practices, and upgrade to intelligent, flexible factory systems. Global demand for advanced manufacturing solutions in semiconductors, automotive electronics, PCB, and 3C electronics is projected to grow steadily over the next five years, making it crucial for industry professionals to stay ahead of technological trends and operational innovations. Spanning over 25,000 m², Fac Tec China 2026 will host more than 200 exhibitors and feature 20+ industry-focused summits and activities, including the Future Facility Showcase, Business Strategy Summit, Technical Seminars, and tailored matchmaking sessions. Exhibitors will showcase solutions across critical segments such as green factory technologies, factory safety and disaster prevention & maintenance solutions, environment control solutions, consumables and new materials, and smart & flexible manufacturing solutions, with applications in 3C electronics, automotive electronics, wireless communication systems, new energy, semiconductors, and rail transit technologies. Show floor highlights include the China Anti-Electrostatic Industry Show, EPA Demonstration Area, Japan Electronics and Automation Zone, Semiconductor Packaging and Testing Demo, Automotive Electronics Disassembly Zone, and the Green Recycling Experience, presenting the latest innovations and practical technological advances. The event will also feature a rich lineup of high-level activities, including the "Next-Generation Factory" Summit, industry forums, technology think tanks, competitions, and business matchmaking sessions. Exclusive programs such as Country Days, tech salons, factory tours, and tailored overseas buyer sessions from regions including Vietnam, Malaysia, and Thailand provide added value and engagement opportunities. Join Fac Tec China 2026 to stay ahead of industry trends, explore breakthrough manufacturing solutions, and strengthen your global network—ensuring your business remains competitive in a rapidly evolving electronics manufacturing landscape. If interested in exhibiting at Fac Tec China 2026, please contact Ms. Julia Gu Tel: +86 21-2231-7010 Email: Julia.gu@rxglobal.com If interested in visiting Fac Tec China 2026, please contact Mr. Walden Li Email: walden.li@rxglobal.com , nepconacrosschina@reedexpo.com.cn Mobile/WhatsApp/WeChat: +86 136-5125-1335 For more information, please visit Fac Tec China – your gateway to factories of tomorrow. Pre-Register: ali2.infosalons.com.cn/reg/FTC26/Web/FTC26/index.html#/login?lang=en-US&page=public&type=9XU8RK

Two autonomous tractors have been rolled out to transfer passenger bags between Terminal 1's and Terminal 4’s baggage handling areas. Changi Airport has deployed its first fleet of fully driverless tractors. (Photo: Changi Airport Group) Changi Airport has deployed its first fleet of fully driverless tractors for airside operations after nearly a year of trials. Two autonomous tractors have been rolled out in live operations to transfer passenger bags between Terminal 1's and Terminal 4’s baggage handling areas, Changi Airport Group (CAG) said on Tuesday (Jan 20). The project, co-funded by the Civil Aviation Authority of Singapore (CAAS), aligns with Changi Airport’s broader innovation strategy, the group noted. This strategy includes the integration of autonomous technology into airside operations, the use of AI in initiatives, as well as automation and robotics to increase manpower productivity, it said. “The milestone marks a significant leap in Changi Airport’s push for innovation and operational efficiency, raising manpower productivity while enhancing safety and reliability,” CAG added. Each autonomous tractor has more than 10 sensors and cameras to enable the vehicles to safely navigate the airside environment in all conditions. The tractors are also monitored in a control centre where a remote operator can step in immediately if human intervention is required. The autonomous tractors at Changi Airport are monitored in a control centre where a remote operator can step in immediately should human intervention be required. (Photo: CAG) The autonomous fleet will free up airside workers from driving tasks and let them focus on last-mile operations, which are more difficult to automate, CAG said. “Through collaborating with our airport partners to redesign work processes and infrastructural policies, we are shaping a future-proofed working environment where autonomous vehicles can function safely and seamlessly with other human-driven vehicles, with workers focusing on last-mile operations,” said CAG’s senior vice president of airport operations strategy and transformation Liu Yanling. To ensure the tractors operate safely alongside workers, clear autonomous vehicle (AV) zone markings have been painted in the airside, with clear labels also attached to all AVs. Clear labels are attached to all autonomous vehicles in use at Changi Airport. (Photo: CAG) Autonomous Fleet to Be Expanded Later this year, another six autonomous tractors will be deployed to a different route between Terminal 2’s baggage handling area and aircraft stands to support baggage operations under a CAG-SATS collaboration. The collaboration will translate into “more reliable baggage handling and smoother aircraft turnarounds, supporting on-time departures and a seamless airport experience”, said SATS Apron Services senior vice president Kuah Boon Kiam. By 2027, the driverless fleet will be expanded to 24 vehicles, with more autonomous tractors deployed to tow cargo and equipment, in addition to baggage, CAG said. “As Changi scales up to meet the operational requirements of Terminal 5 by the mid-2030s, such innovations will enable CAG and its partners to redesign and upgrade the job scopes of airside workers, to improve their productivity,” the group said. “Such productivity improvements and upgrading of airside roles are critical to grow the Singapore air hub to meet the future demands of air travel.” An autonomous tractor deployed at Changi Airport. (Photo: CAG) In July last year, CAAS’ aviation jobs transformation report indicated that up to 30 per cent of the existing workforce could experience job redesign and transformation over the next five years, with the majority of them in the ground handling sector. “The scaled deployment of autonomous tractors allows CAAS, CAG, SATS and our unions to work together to implement the technology, develop new systems and protocols, and set up job redesign programmes to help our workers adopt technology and transition to higher-value work,” said CAAS' director of aviation industry Angela Ng. “Lessons learnt here will be useful for the sector’s wider technology adoption and job transformation efforts.” Source: www.channelnewsasia.com

By Ir. Ts. Prof. Dr. Chee-Fai Tan Vice President (Technology), Malaysia Association for Sustainable Supply Chain & Innovation (MASSCI) Deputy Vice-Chancellor, Kuala Lumpur University of Science & Technology (KLUST) Artificial Intelligence has transformed how supply chains interpret data. Demand forecasting, inventory optimisation, route planning, and predictive maintenance now rely on increasingly sophisticated analytics. Yet improved visibility does not automatically translate into improved execution. Many organisations operate with realtime dashboards and predictive tools, but warehouse congestion, manual bottlenecks, and coordination delays persist. The gap lies between intelligence and action. This is where Physical AI is emerging as the next operational layer. From Software Intelligence to Embodied Systems In supply chain contexts, this includes: Autonomous mobile robots navigating live warehouse traffic AI-driven material handling systems adjusting in real time Production lines synchronising through sensor-enabled coordination Cold-chain systems dynamically regulating storage conditions The distinction is not conceptual. It is operational. Software AI informs. Physical AI executes. The Execution Gap in ASEAN ASEAN supply chains are expanding rapidly as global manufacturing diversifies across the region. However, operational maturity varies. Many firms have invested in ERP systems and digital dashboards. Fewer have integrated intelligent physical systems that adapt to changing production conditions in real time. For example: A warehouse may predict peak volume surges, yet still rely on static picking routes. A production facility may forecast maintenance needs, but lack automated systems capable of adjusting workflows immediately when disruptions occur. In such environments, decision latency — not information scarcity — becomes the limiting factor. Physical AI addresses this latency by reducing the distance between analysis and action. Strategic Use Cases Warehousing and Intralogistics AI-enabled mobile robots can dynamically reroute to avoid congestion and reprioritise tasks based on shifting demand. Unlike rule-based automation, these systems learn from environmental feedback, improving throughput consistency. Manufacturing Integration In smart factories, Physical AI allows machines to coordinate based on live sensor data. When upstream variability occurs, downstream systems adjust sequencing automatically, reducing scrap and idle time. Cold Chain and Compliance In regulated sectors, intelligent monitoring systems can autonomously recalibrate storage environments when deviations occur, maintaining compliance integrity without manual intervention. Across these applications, the objective is not mechanisation alone. It is adaptive execution. Governance and Phased Adoption The transition toward Physical AI must be deliberate. Industrial environments demand reliability and accountability. A phased approach is therefore essential: Deploy AI-enhanced robotics in controlled operational zones. Integrate predictive models with physical execution systems. Expand toward coordinated, multinode autonomy across facilities. At each stage, governance frameworks must ensure safety, transparency, and traceability. Autonomy without oversight introduces new risks. Human Capability in an Autonomous Environment As physical systems gain adaptive capability, human roles evolve rather than disappear. Engineers increasingly focus on: System orchestration Exception management Continuous optimisation Cyber-physical security The workforce shift is from manual coordination toward systems supervision and design. ASEAN’s competitiveness will depend not only on technology adoption, but also on developing the technical and governance capabilities required to manage intelligent physical systems responsibly. The Next Layer of Supply Chain Evolution Physical AI is not a replacement for digital intelligence. It extends it into execution. For ASEAN manufacturers and logistics providers, the strategic question is not whether analytics capabilities will continue to advance. They will. The question is whether execution systems will evolve in parallel, such as reducing latency, absorbing variability, and operating with adaptive resilience. Organisations that align digital insight with intelligent physical execution will reduce coordination gaps and enhance operational stability. Supply chains are becoming increasingly data-rich. Their next phase of competitiveness will depend on how effectively intelligence is translated into action. About the Author Ir. Ts. Prof. Dr. Tan Chee Fai is the Vice President of Technology at Malaysia Association of Sustainable Supply Chains & Innovation (MASSCI) and The Deputy Vice-Chancellor of Kuala Lumpur University of Science & Technology (KLUST). He is an internationally recognized expert in smart manufacturing, digital transformation, AI, and robotics. Prof. Tan also serves as Chair of the ASEAN Engineering Inspector for Mechanical & Manufacturing and contributes to ISO/IEC and WFEO initiatives on engineering innovation and sustainability.