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BEIJING: Datasea Inc., a Nevada corporation engaged in innovative businesses in high-tech intelligent acoustics and 5G-Artificial Intelligence multimodal communication technology in the United States and China, announced 3 sales agreements with its subsidiaries in China. The agreements reached a total value of approximately US$61.7 million that encompass two agreements for its 5G-AI communications segment, and one agreement for Datasea’s high-tech acoustic products segment. Datasea CEO Liu Zhixin commented, “We are pleased to enter into the new agreements as they are expected to increase new customer orders for both our 5G AI communications and acoustics products segments. We believe that both of our businesses are beginning to gain excellent traction due to their high value in the 5G communications and healthy living marketplaces. “In addition, we are confident that the two segments’ core AI functionality will drive further technological innovation and increased market share,” she Zhixin. Datasea’s three new sales agreements include the company’s Guozhong Haoze subsidiary signing a 5G AI Multimodal Communication Agreement with Shenzhen Juhaowan Technology Co., Ltd., an online lifestyle services and application service provider on 15 May 2024. According to the agreement, Juhaowan can purchase 5G multimodal communication delivery services from Guozhong Haoze over the course of 12 months which have an estimated total value of up to US$30 million. Another agreement was made on 13 May 2024, involving the company’s Heilongjiang Xunrui subsidiary that signed a 5G AI Multimodal Communication Agreement with Shenzhen Yuzhongqing Technology Co., Ltd., a firm primarily engaged in internet and related services. According to the agreement, Yuzhongqing can purchase 5G multimodal communication delivery services from Heilongjiang Xunrui over the course of 12 months which have an estimated total value of up to US$30 million. Finally, on 8 June 2024, the company’s Shuhai Jingwei subsidiary entered into an Acoustic Products Sales Agreement with Tianjin Qianli Culture Communication Co., Ltd., an internet promotion and marketing service provider, for the Company’s acoustic high-tech products. According to the agreement, Qianli Culture will purchase a total of approximately 20,000 units of the company’s “Tianer” and “Star Sleep” branded products, including air disinfection machines, restroom deodorization and disinfection devices, and sleep aids, by 31 December 2024, with the total contract amount reaching approximately US$1.7 million.

KUALA LUMPUR: Malaysia’s potential to become an automotive hub for ASEAN not only lies in strategies to boost car exports, it also hinges on the increased export of parts and components. To achieve this, Malaysian automotive and parts companies must persevere to increase exports of cars significantly, enabling parts to be sold at more competitive prices. Increased sales volumes can reduce production costs and subsequently, component prices, making them more competitive than those in regional and neighbouring countries where auto parts are cheaper due to the high sales volume. Car manufacturers, auto industry researchers and economists believe that these endeavours are crucial to establishing Malaysia as a regional automotive hub for ASEAN and taking advantage of the region’s close to 700 million consumer base. “We urge original equipment manufacturers (OEMs) to not only export cars but also parts and components, thereby enhancing the overall competitiveness of the Malaysian automotive industry,” said Azrul Reza Aziz, MARii Chief Executive Officer. He said this in response to reports that Malaysia’s supply chain costs are 30% higher than Chin’s and 10% costlier than Thailand’s. Azrul Reza pointed out that it is essential to recognise that these costs vary significantly, depending on each company’s cost structure, car model and supply chain ecosystem. He highlighted that companies may have different levels of maturity in their supply chains, which impacts their overall cost efficiency. Malaysia undoubtedly has a lot of catching up to do, as, despite marking significant growth, its record-high total production volume (TPV) was only 775,000 vehicles, compared to China’s TPV which stood at around 30 million vehicles and Thailand’s at 1.8 million vehicles. Azrul Reza said Malaysian companies must transform by embracing digital advancements, leveraging Industry 4.0 (IR4.0) technologies to address the challenges. This is crucial as the country aims for carbon neutrality by 2050, focusing on the development of electric vehicle (EV) components, autonomous vehicles (AV), and Internet of Things (loT) components. “Given the constraints on purchasing raw materials in bulk due to cost implications and the added expenses of stock handling and maintenance, digital solutions offer respite in terms of immediate insights and resolutions. “Furthermore, digital solutions enhance efficiency and effective improvements in research and development, notably through the utilisation of computer-aided engineering and additive manufacturing technologies,” he said. Meanwhile, Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain noted that China and Thailand’s domestic pool of population, vehicles, and maintenance networks are considerably larger than Malaysia’s. Their reduced reliance on exports means that their vendors are less vulnerable to fluctuating exchange rates. Similarly, such costs are largely driven by the push and pull of demand and supply, he said. “Although Malaysia has a relatively mature automotive supply chain, dating back more than 50 years, the cost of setting up, or refreshing component manufacturing with new technology is very high. “The most effective way to justify these investments is for Malaysia to position itself as an export hub,” he said. Mohd Shamsor said the local automotive industry needs to build its competencies in terms of quality, affordability and productivity in locally-produced parts by expanding the export volume and ramping up OEMs’ capacities. He added that manufacturers often have different perspectives on how their business models are structured and cost is only one consideration among many. — BERNAMA

KUALA LUMPUR: Despite the ringgit’s recent strengthening and a 5.8% economic growth in the second quarter, the government is still working to ease the cost of living burden, Prime Minister Datuk Seri Anwar Ibrahim said. He said with various measures taken, the inflation rate has been successfully controlled at 2%, and the national unemployment rate at 3.3%. “But am l satisfied? No, because we are still facing cost-of-living issues in some areas, which put pressure on everyday life,” he said at the National Cooperative Congress 2024 closing ceremony, which was attended by Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick, his deputy Datuk R Ramanan, Chief Secretary to the Government Tan Sri Mohd Zuki Ali and Angkasa president Datuk Seri Dr Abdul Fattah Abdullah. Anwar emphasised that the government is continually seeking solutions to the cost-of-living issue, including the Sumbangan Tunai Rahmah (STR) totalling RM10 billion to 9 million people. He also highlighted the government’s move to review the Public Service Remuneration System (SSPA) to raise civil servants’ salaries as an effort to alleviate living costs. “Next October, we will finalise the new remuneration system with significant salary increases for civil servants. We hope this will lead to more efficient work. Control and supervision will also be tougher, as the increase is not small. It is the highest in history, exceeding 15% he said. Anwar also called for national unity to elevate the country’s dignity and expressed his desire for the cooperative movement to become a pillar of economic growth. — BERNAMA

KUALA LUMPUR: The Selangor government will focus on the development of the service sector for this 5-year period, said Selangor Menteri Besar Datuk Seri Amirudin Shari. He said the development of a third port on Carey Island, Kuala Langat which is included in the plan is expected to drive higher economic growth in the state. “The transition to services based on online or digitalised service sector is one of the key strategies forward to drive the economy in Selangor and Malaysia in general,” he added. Amirudin also outlined some of Selangor’s unique features that are able to attract investors to the state and that Selangor’s position in the middle of Peninsular Malaysia, mega infrastructure such as the airport, seaport and highway network also developed more industrial areas that contributed to the economic growth of the state. “Selangor also produces more than 40,000 graduates from 150 higher education institutions every year who can meet the needs of the industry. “The Selangor government’s durable and agile policies and administration is also one of the unique features of this state,” he said at the Selangor ASEAN Business Conference (SABC). Amirudin said the First Selangor Plan (RS-1) which is the state’s development framework is expected to increase the rate of contribution to the state’s gross domestic product (GDP) up to 0.5% in the future. He said the matter was proven when Selangor managed to contribute 25.9% to Malaysia’s GDP with an increase of 0.4% in 2023, compared to the previous year. “Before RS-1 was presented, the contribution to GDP increase was only between 0.2% and 0.3%, but when it was launched, the contribution percentage (to GDP) increased to almost 0.5%. “This is because RS-1 is more in-depth in its planning, supported by manpower and infrastructure, so we are confident of being able to contribute RM500 billion within these few years,” he said. The dialogue session which was also attended by Penang Chief Minister Chow Kon Yeow discussed the strength of the two states to attract investment into the country. Meanwhile, Selangor State Investment, Trade and Mobility Committee chairman Ng Sze Han said SABC has served as a vital platform for ASEAN and global leaders to discuss important economic issues, explore trade opportunities, and form strategic partnerships. In his opening speech, he said SABC 2024 aimed to build on its past successes, where it attracted over 2,400 participants from all 10 ASEAN countries and beyond. — BERNAMA

The contribution to the gross domestic product (GDP) by micro, small and medium enterprises (MSMEs) grew by 5% in 2023, with a value-added of RM613.1 billion and contributing 39.1% to Malaysia’s economy, according to the Department of Statistics Malaysia (DOSM). MSMEs’ growth has surpassed Malaysia’s GDP growth of 3.6% in 2023. Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said that the services and manufacturing sectors are the main contributors, which comprises 84.8% of the MSMEs’ GDP. “The agriculture sector contributed 9.1% to MSMEs’ GDP, followed by the construction (4.5%) and mining and quarrying (0.5%) sectors,” he said in a statement. Mohd Uzir said the services sector increased 6.5% in 2023 from 17.2% in the preceding year. “The performance was supported by steady growth in the main sub-sectors, namely wholesale and retail trade, food and beverages and accommodation (5.7%), finance, insurance, real estate and business services (6.3%) and transportation and storage and information and communication (10.6%). The manufacturing sector recorded a growth of 1.5% (2022: 6%) and was influenced by positive growth in food, beverages and tobacco (5%) and non-metallic mineral products, basic metal and fabricated metal products (5.3) sub-sectors. The value added of MSMES in the agriculture sector increased 1.3% in 2023, higher than the 0.9% growth in the preceding year. The performance was supported by the rubber, oil palm, livestock & other agriculture (1.8%) and fishing (0.5%) sub-sectors. Meanwhile, MSMEs’ value added of construction, mining and quarrying sectors also expanded by 5.8% (2022: 5%) and 4.9% (2022: 10.7%), respectively. On another note, Mohd Uzir said exports of MSMEs stood at RM152.2 billion with a growth of 4.5% in 2023, slower than the 17.2% recorded in the preceding year. He said MSMEs’ employment continued to register an increase, albeit at a slower annual growth of 3.5% compared to 3.8% in 2022, to record a total of 7.86 million persons from 7.59 million persons in 2022. “Accordingly, the contribution of MSMEs employment to Malaysia’s employment in 2023 was 48.5%, which grew 0.3 percentage points from 48.2% in 2022,” he said. — BERNAMA