Business News

Five ways Asia manufacturers can mitigate the hit of inflation

-Oliver Stein, Director, South East Asia, JAGGAER Inflation recently hit its highest level in decades, and this is having a major impact on manufacturers. Many parts of Asia are also feeling the strain, however the inflation spike in Asia should be transitory, with lesser risks towards tightening measures compared to Western economies. Inflationary pressures in developing Asia are expected to remain less severe compared to that in global peers. Asia has become a global manufacturing hub with Singapore, Indonesia and Vietnam receiving 80% of new foreign direct investment inflows in 2019. Inflationary pressures moderating in Asia is a mixed blessing, as a recession may be on the horizon. This will cut margins on end products, especially in the CPG sector, without necessarily reducing input costs. How will businesses cope? Ain’t no revenue when direct supply’s gone Supply chains, already severely disrupted by a series of shocks, starting from the pandemic and now the war in Ukraine, face continued turmoil as sanctions bite and key supply sources are cut off. Companies are faced with severe inflationary risks, putting pressure on their margins. Apart from supply chain disruptions they face increasing regulatory pressures and societal expectations to follow sustainable best practices. Organisations are beginning to look more and more into how they manage responsiveness and resiliency in a time of uncertainty. For most manufacturers in Asia that also means increased tracking of sub-tier vendors where previously there was little visibility. The rising cost of direct materials is a constant challenge to bottom line results across all manufacturing and process industry sectors. Accounting for 20-80% of the cost of finished goods, the prices paid for materials and components that make up the final product that is sold to the end user are beyond the immediate control of the manufacturer. Yet manufacturers have a responsibility to customers, shareholders, […]

FPT Software opens office in Thailand

FPT Software, Vietnam’s leading IT solutions provider, has recently announced the opening of a new office in Bangkok, Thailand. This branch, targeting the top 30 IT companies in Thailand, assists FPT Software’s strategic move to expand its global footprint. FPT Software’s representatives and distinguished guests at the Appreciation Dinner on November 22 The inauguration was attended by the Ambassador of the S.R. of Vietnam to Thailand, H.E. Phan Chi Thanh, KBTG Chairman Voranuch Dejakaisaya, KBTG Vice Chairman Jarung Kiatsuphapong, Unilever IT SEA Regional Head Piyawan Triyanant, FPT Software’s CHRO Nguyen Tuan Minh, FPT Software’s SVP Nguyen Hoang Trung, FPT Greater Bay Indochina (FPT GBI – a subsidiary of FPT Software) CEO Levi Nguyen, and other distinguished guests. Speaking at the event, the Ambassador of the S.R. of Vietnam to Thailand, H.E. Phan Chi Thanh, emphasized the comprehensive cooperation between Thailand and Vietnam, especially in digital economy. The Ambassador also believes that with FPT Software’s IT capabilities, the company can contribute to strengthening this relationship and accelerating digital transformation. The Bangkok branch is expected to address the increasing demand for digital transformation in Thailand. “We aim to grow our local workforce to 500 high-quality IT engineers in the next three years and accompany Thai companies from various industries, including Retail, BFSI, Manufacturing, and more.”, FPT GBI CEO, Levi Nguyen pledged. According to FPT GBI CEO, the new office could allow FPT Software to work closer with the leading enterprises in Thailand in digital transformation projects. “Our company’s philosophy is staying close to the clients. So, this office will allow us to serve them faster and more effectively”, Levi said. “It also demonstrates our company’s strong capabilities and resources in digital platforms like KBank’s Make and AIA’s Alive & Vitality, as well as other technologies such as Cloud, Data, Artificial Intelligence, and […]

MHI and EGAT cooperate on clean power generation in Thailand

TOKYO – Mitsubishi Heavy Industries, Ltd. (MHI) and Thailand’s largest power producer Electricity Generating Authority of Thailand (EGAT) signed a Memorandum of Understanding (MoU) to study and exchange information relating to clean power generation, hydrogen, carbon capture, utilization and storage (CCUS) technologies in support of the nation’s goal of achieving carbon neutrality by 2050. Thidade Eiamsai (Deputy Governor of Power Plant Development and Renewable Energy/EGAT) (2nd from left) and Ryo Takubo (President and Managing Director/Mitsubishi Heavy Industries (Thailand)) (3rd from left) at signing ceremony Set to take place over the next three years, MHI, along with Mitsubishi Power, its power solutions brand, will exchange experiences and information on the specified areas with EGAT. This could also involve an exchange of engineers to share experiences and technical know-how on advancing cleaner power generation in Thailand. Mr. Ryo Takubo, President and Managing Director of Mitsubishi Heavy Industries (Thailand), expressed his confidence in the partnership: “MHI Group has played an instrumental role in Thailand’s vibrant energy growth story for more than five decades. Looking ahead, we will continue to contribute our capabilities around world-class gas turbines, which are being developed to co-fire cleaner fuels like hydrogen and ammonia, and CCUS technologies that are critical to lowering emissions. It is an honor to partner with EGAT to bring together our learnings and deep experience to unlock more opportunities and accelerate Thailand’s decarbonization.” Mr. Thidade Eiamsai, Deputy Governor of Power Plant Development and Renewable Energy, EGAT, reaffirmed the significance of the collaboration: “We’ve built a trusted relationship with Mitsubishi Power over the last few decades, and believe that this agreement will combine both our technological expertise and understanding of local needs to facilitate Thailand’s energy transition in accordance with the National Energy Plan. We are grateful for Mitsubishi Power’s collaboration and are excited to […]

Minetech records 32% increase in revenue for Q2

Company’s loss before tax continues to narrow on higher revenue contribution from civil engineering and manufacturing divisions KUALA LUMPUR – Civil engineering specialist and bituminous products manufacturer Minetech Resources Berhad today reported that the Company recorded a 31.9% rise in revenue to RM26.9 million for the second quarter ended 30 September 2022 (2Q FY2023) compared with RM20.4 million in the corresponding quarter of the last financial year (2Q FY2022). Matt Chin, Executive Director of Minetech The Company registered a loss before tax (LBT) of RM1.5 million for the quarter under review compared with LBT of RM4.7 million in 2Q FY2022. On a segmental basis, the civil engineering division recorded a 8.1% rise in revenue to RM16.1 million in 2Q FY2023 compared with RM14.9 million in 2Q FY2022. The manufacturing division, which produces bituminous products for pipe coating, waterproofing and sealing, posted a 166.7% increase in revenue to RM7.2 million compared with RM2.7 million in the same quarter of the previous financial year. For the first-half of the financial year ended 30 September 2023 (1H FY2023), Minetech registered a 36.9% increase in revenue to RM50.9 million compared with RM37.2 million in 1H FY2022. The Company recorded LBT of RM3.1 million in the period under review compared with RM9.1 million in 1H FY2022. Matt Chin, Executive Director of Minetech, said, “We continue to see our financial performance improve with narrower losses on higher revenue contribution from the civil engineering division’s Selinsing Gold Mine due to increase in work volume as well as from the Cheras-Kajang Highway, Wangsa Brezza Hill and GM Emerald Square.” “We have seen a significant increase in revenue contribution from the manufacturing division mainly due to the rise in sales of coating enamel and blown asphalt products as a result of improved demand from both domestic and […]

Vietnam’s FPT Software launches chipmaking subsidiary; Produces first semiconductor chips

FPT Software aims to tap into Asia Pacific’s semiconductor market which accounts for 60 percent of global semiconductor sales. FPT Tower – FPT Corporation’s headquarter in Hanoi, Vietnam. Vietnam’s leading ICT company FPT Software has launched a new subsidiary, FPT Semiconductor, marking a key milestone for the company as it enters the booming semiconductor industry. Through the new subsidiary, FPT Software aims to gain a slice of Asia Pacific’s semiconductor market which accounts for 60 percent of global sales[3]. IDC projects that worldwide semiconductor revenue will reach $661 billion in 2022, an increase of 13.7 percent over 2021[4]. FPT Semiconductor released its first integrated circuits (ICs), which were designed in Vietnam and manufactured in South Korea, in August 2022.These ICs will be used in Internet of Things (IoT) medical devices. By 2023, FPT Semiconductor plans to supply 25 million chips globally in seven types to meet diverse needs in telecommunications, IoT, automotive technology, energy, electronics, and others. “We look forward to contributing to the development of the fast-growing semiconductor industry in Vietnam and Asia on a broader scale,” said FPT Semiconductor’s Founder & Chief Executive Officer Nguyen Vinh Quang. “FPT Semiconductor looks to become the chip supplier of choice for businesses in Vietnam and further in Japan, Korea, Taiwan, China, the United States, and Europe” he said. After 23 years of leadership in IT services and solutions in Vietnam, FPT Software decided to venture into fabless manufacturing. With the establishment of FPT Semiconductor, FPT Software continues to extend its comprehensive ecosystem of digital transformation services and solutions. Building on the global presence and years of experience across various domains, FPT Software hopes to accompany clients with consulting and implementing tailor-made solutions, and now with supplying semiconductor components added to its portfolio. “We are proud that the whole research and development […]

Solar testing lab opens in Shanghai

DEKRA recently inaugurated a new testing center for renewable energy in Shanghai, China. With this step, the global expert organisation is meeting the growing demand from the Chinese solar industry for high-quality testing and certification services. The DEKRA Shanghai Renewable Energy Testing Center is its biggest and most state-of-the-art solar laboratory to date in Baoshan, Shanghai, with the aim of providing even greater support to the development of the solar industry. China is the world’s largest manufacturer of solar modules and the industry is experiencing strong growth. “DEKRA and its customers share a commitment to a safe and sustainable world. Sustainability and renewable energy are crucial factors in safeguarding our future on this planet,” said Mike Walsh, head of DEKRA’s APAC region and Executive Vice President of the DEKRA Group. “I’m proud that DEKRA has made this significant investment. The DEKRA Shanghai Renewable Energy Testing Center demonstrates our commitment to the future of our planet and our enhanced expertise in terms of solving the challenges we all face to ensure we do business sustainably.” “We are investing in leading testing infrastructure as well as talent, so that we can keep pace with the ever-growing requirements in the renewable energy industry. The new testing center demonstrates our commitment in this field, and we’re delighted to be able to support the industry with these new resources. “Thanks to our innovative and pioneering testing services, we can offer solutions to 80 percent of the world’s leading manufacturers of photovoltaic modules today,” said Kilian Aviles, Senior Vice President of DEKRA’s APAC region and Managing Director of DEKRA China, at the official opening ceremony. The DEKRA Renewable Energy Testing Center covers some 2,600 square meters and provides leading global expertise in photovoltaic technology. The laboratory offers a broad and varied service portfolio covering testing and […]

The Interview: Dr. Nelson Cheng,President & CEO,Magna Group

How are you finding current business conditions? Despite ongoing developments around the world such as the Covid-19 pandemic and war in Ukraine, I remain optimistic towards the current business outlook with opportunities to be tapped on, especially in the chemicals and manufacturing industry. My optimism can be attributed to three questions which I sought to answer when I first started my business some 30 years ago. The questions are: What are the inherent problems of each industry that will remain unsolved over the next decade or two? Which products are recession-proof and why? Who will be my customers, and why will they buy my products? My answers to the above are to continue to develop and provide innovative solutions applicable across a range of industries that see consistent demand regardless of external factors. I concluded that three issues will remain unsolved for a long period of time – namely diseases, corrosion, and friction. Diseases Viruses and bacteria will keep mutating due to the abuse of antibiotics, leading to many new strains of antibiotic-resistant bacteria, such as MRSA. Antibiotic abuse also lowers our body’s immunity, leaving our bodies susceptible and easily infected with viruses. To combat this, Magna Group has developed disinfectants and sanitisers with high efficacy of up to 99.999%. We experienced skyrocketing sales volumes because of COVID-19. Corrosion According to the fundamentals of material science, all metals corrode regardless of whether they are ferrous or non-ferrous. Based on this knowledge, we have developed a wide range of corrosion inhibitors including anti corrosion packaging, VCI emitters and anti- corrosion coatings. To protect capital intensive assets onshore as well as offshore, we developed the corrosion inhibitors and created an asset enhancement management program. Again, we are experiencing good sales volumes even with the fluctuation of oil prices and clients have engaged us […]

Network-Monitoring-Sebastian-Krueger-ASIA-MN

Network Monitoring – The competitive differentiator in manufacturing

By Sebastian Krueger, Vice President APAC, Paessler Every industrial revolution brings along a learning revolution. Digitisation is transforming the world in ways people a few decades ago would have hardly imagined. You hail a taxi ride to take you to the best restaurant in town using your smartphone and get items you ordered just yesterday delivered to your home. The list is endless. At the core of it lie technologies that have enabled these changes, which are also disrupting areas like manufacturing, automation, and energy. All these technologies have one thing in common: data. Data takes center stage in the converged IT/OT era Today, data has become a critical component to optimise your business to be more competitive, or to develop new business models based on analytical insights. One well-known term in this regard is Industry 4.0, which caters to the ultimate goal of optimising the entire value chain of a product including development, manufacturing, usage, maintenance, and even recycling. This is enabled through modern technologies and the intelligent connection between humans, machines, factories, and the end product. Digital infrastructure like cloud-hosted systems, its local production network, or simply a web shop comprises the key technology stack for a company that decides to move into the future. The convergence of Information and Operational Technology (IT/OT), Industry 4.0 and increased digitisation have all reshaped the way the production floor connects and interacts with IT. This interconnectivity makes it pertinent to have a unified overview of your entire infrastructure. These include programmable logic controllers, industrial PCs, smart industrial gateways, sensor technologies, as well as traditional IT infrastructure components like network switches, routers, and wireless devices. Monitoring it all requires an integrated solution that can coalesce OT and IT together into a single view. Why do you need holistic monitoring for your industrial IT? […]

Manufacturers can no longer postpone investments in digital technologies

After taking the temperature of process manufacturers, ABI Research finds that manufacturers of fast-moving consumer goods are approaching boiling point. Global technology intelligence firm ABI Research evaluated the impact politics, regulation, the economy, supply chain, Environmental Social and Governance (ESG), and technology are having on manufacturers of fast-moving consumer goods (FMCG), pharmaceuticals, producers of steel, chemicals, pulp and paper, as well as the mining and oil & gas sectors. “Our assessment found that the FMCG sector is under pressure from all sides,” says Michael Larner, Industrial & Manufacturing Research Director at ABI Research. Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. “Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. “We all hoped that with the rollout of COVID vaccines, the world would return to ‘normal’,” Larner continues. “However, events have taken a different turn, with the effects felt far and wide. Political decisions and regulations have the most impact on these firms’ operations. After all, governments can lock down cities and restrict transportation. At the same time, production can stop due to product recalls, as currently witnessed with Abbott Laboratories’ baby formula facility in the United States.” Each industry is at very different stages concerning its digital maturity. Large mining firms, such as Rio Tinto, are automating many processes, and oil & gas firms, including Saudi Aramco, are utilising data analytics to monitor operations and their immediate surroundings. Steel, pharma, and pulp and paper producers have more work to do to connect their operations digitally and utilise some of the cutting-edge technologies. Meanwhile, FMCG firms (Procter & Gamble is one such example) are working toward aligning IT and OT teams. Manufacturers can no longer postpone investments in […]

Mölnlycke invests EUR 50 million in a new surgical gloves plant

Mölnlycke is investing EUR 50 million in a new plant in Kulim, Malaysia, to meet future demand for high-quality surgical gloves. The new plant will start production in September 2022 and will generate 500 new local job positions. With sustainable manufacturing as one of the main drivers for the initiative, Mölnlycke is partnering with ENGIE for energy solutions and Veolia Water Technologies for wastewater treatment solutions to ensure best-in-class energy and waste water management at the new plant. “The new plant is a key part of our future plans for sustainable growth within the surgical gloves business. It will enable us to expand production to meet projected demand. But the best part is that we will achieve this in a less resource-intensive way, while creating a state-of-the-art working environment for our colleagues in Malaysia,” says Zlatko Rihter, the CEO of Mölnlycke. “As part of our commitment to reduce our operational carbon emissions by 50% by 2030 (baseline 2016), and in support of Malaysia’s national agenda to achieve net-zero emissions by 2050, Mölnlycke is focused on driving continuous energy efficiency to transition to 100% renewable electricity across all our sites globally. “We intend to optimise the new plant’s energy consumption by tapping digital energy management to monitor how energy is being used and where it is being lost. This increased transparency will help us optimise our efforts to reduce consumption.” Four out of Mölnlycke’s 14 plants are already operating fully on renewable electricity; and as of March 2022, additionally three of the surgical gloves manufacturing plants in Malaysia could be added to the list of factories fully powered by green electricity. Mölnlycke’s journey to become a zero waste company by 2050 at the latest continues with focusing on both promoting a circular economy to reduce waste in all our manufacturing processes […]

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