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Tag: Manufacturing

  • Pakistan Orders 9 Tyre Manufacturers to Install Digital Monitoring by Nov 30

    Pakistan Orders 9 Tyre Manufacturers to Install Digital Monitoring by Nov 30

    Pakistan’s Federal Board of Revenue ordered registered tyre manufacturers on Friday to install electronic production monitoring systems by Nov 30, linking factory machinery directly to state revenue servers to track output in real time.

    The mandate aims to help bridge a national sales tax gap estimated at Rs3.7 trillion between current collections and actual revenue potential.

    Under Sales Tax General Order No. 32 of 2026, initial compliance targets nine companies: Ghandhara Tyre and Rubber Company Ltd, Service Long March Tyres Ltd, Service Tyres (Private) Ltd, Panther Tyres Ltd, Diamond Tyres Ltd, Service Industries Ltd, Ghauri Tyre and Tube (Pvt) Ltd, Crown Tyres Ltd, and United Rubber (Pvt) Ltd. Tyre makers must fit approved tracking hardware and software across every curing press, takeaway conveyor, and finishing line. The equipment counts cured tyres, screens out uncured units, and separates genuine production runs from maintenance, warm-ups, and dry runs. It records each product by diameter, width, tread design, and weight using certified stock keeping unit data.

    Single Vendor System and Factory Rules

    The Federal Board of Revenue selected ISSM Labelling Solutions (Pvt) Ltd as the sole authorised provider to install and run the tracking platform across plants. The system streams production events directly into the central tax control room, automatically flagging unexpected stoppages, machinery breakdowns, interruptions, and any physical or software tampering.

    Manufacturers cannot transport finished tyres off factory grounds unless the output passes through the electronic inspection network. Companies must supply the underlying information technology infrastructure, reliable power, and network connectivity at their own cost, while also paying service fees to the authorised vendor.

    Initial Hit List for Industrial Compliance

    Regulators singled out nine major tyre producers for the initial rollout: Ghandhara Tyre and Rubber Company Ltd, Service Long March Tyres Ltd, Service Tyres (Private) Ltd, Panther Tyres Ltd, Diamond Tyres Ltd, Service Industries Ltd, Ghauri Tyre and Tube (Pvt) Ltd, Crown Tyres Ltd, and United Rubber (Pvt) Ltd. Tax officials noted the list is not final and will expand to every licensed producer in the country.

    For supply chain operators and vehicle assembly partners across South Asia, the measure removes unrecorded factory off-takes that frequently leak into local wholesale distribution. Tyre suppliers operating in Pakistan face immediate capital outlays for hardware integration, alongside tighter inventory audits that leave zero room for off-the-books stock.

    The policy tilts the operating balance toward fully documented parts suppliers while forcing mid-tier producers to absorb compliance costs. Distributors and replacement retailers buying from these plants will see tighter paper trails on all commercial invoices, shrinking informal discounting across aftermarket supply routes.

    Expanding Digital Tax Control

    The tyre sector is the latest consumer goods segment brought under automated plant surveillance. Tax authorities previously placed packaged tea, household electronics, paper and paperboard, edible oils, leather, textile spinning, tiles, packaged milk, fruit juices, bottled water, and carbonated beverages under similar digital recording orders.

    Inland Revenue chief commissioners are now appointing dedicated regional focal persons to inspect factory lines and monitor vendor installations alongside company managers. Regional field formations hold orders to add unlisted tyre factories to the registry and submit formal compliance reports to headquarters.

  • Malaysia Trade Missions Generate RM59.5 Billion in Inflows

    Malaysia Trade Missions Generate RM59.5 Billion in Inflows

    Fourteen international trade and investment missions led by Prime Minister Datuk Seri Anwar Ibrahim and Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani generated RM59.5 billion in potential capital inflows between 2025 and September 2026. The engagements spanned twelve export destinations across Asia, Europe, Africa, and Latin America.

    Official records submitted to the Dewan Rakyat confirm that Malaysian authorities have formally approved RM14.2 billion of the total projected investments. Another RM45.3 billion remains under active negotiation across bilateral working groups.

    State bodies Malaysian Investment Development Authority (MIDA) and Malaysia External Trade Development Corporation (MATRADE) coordinated the cross-border delegations alongside Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani. These ministerial visits yielded RM6.77 billion in exports.

    Approval Timelines and Conversion Rates

    Securing headline pledges is standard government practice, but moving capital through site acquisitions and plant construction tests real economic absorption. Miti acknowledged that industrial investments typically take 18 to 24 months to materialize, tethered to regulatory clearances and macroeconomic shifts.

    For commercial operators and supply chain vendors in Southeast Asia, the key indicator is the RM14.2 billion already approved rather than the broader preliminary figure. The gap between initial memorandums and registered capital deployment often defines whether domestic suppliers see actual procurement orders.

    Export Diversification in Emerging Corridors

    Trade missions shifted attention beyond traditional buyers in North America and Western Europe, targeting frontier regions across Africa, Central Asia, and Latin America. Shipments to these three combined regions rose 23.06 per cent to reach RM69.84 billion over the first nine months of 2026.

    Individual trade volumes revealed aggressive surges in secondary consumer and industrial hubs. Outbound trade with Namibia jumped 426.1 per cent, while shipments to Angola rose 55.6 per cent and sales to Brazil expanded 41.0 per cent.

    East African corridors mirrored that expansion pattern. Exports grew 35.9 per cent to Tanzania, 28.5 per cent to Ethiopia, and 11.6 per cent to Kenya following direct diplomatic interventions.

    Strategic Shifts for Southeast Asian Commerce

    RetailNews Asia views this geographic diversification as an operational hedge for Malaysian consumer product manufacturers and industrial distributors facing sluggish demand in legacy Western markets. Distributing export exposure into Latin America and Sub-Saharan Africa reduces vulnerability to single-market tariff shifts and consumer retrenchment.

    The policy stance marks a deliberate effort to bind outward trade promotion directly to factory-level inbound capital commitments. The risk lies in foreign counterparty financing, where volatile currencies across Sub-Saharan Africa can stall import contracts after high-level state visits conclude.

    The Trajectory of Ministerial Delegations

    The latest parliamentary accounting follows a two-year government push to re-establish Malaysia as an export hub amid shifting supply chains in the wider region.

    Ministerial delegations to heavyweights including China, Japan, South Korea, India, and the United Kingdom secured foundational supplier links. The transition during 2026 into South American and African economies broadened those legacy connections into alternative consumer goods markets.

    MIDA and MATRADE now face the operational delivery phase for the RM45.3 billion balance remaining under negotiation. Investors and domestic market suppliers await the subsequent parliamentary sitting for data on how much of that pending balance converts into registered factory groundbreakings.

  • Li Auto Builds 200,000 Li I6 SUVs as November Target Reaches 20,000

    Li Auto Builds 200,000 Li I6 SUVs as November Target Reaches 20,000

    Li Auto built its 200,000th Li i6 battery electric SUV on October 30, roughly 13 months after the five-seat model entered the Chinese market in September 2025.

    Assembly lines are scheduled to produce 20,000 units in November before lifting throughput further in December to clear an order backlog running at seven to eight weeks.

    The manufacturing run rate follows the release of the updated 2026 Li i6 on October 28. Deliveries across China started on October 29. Official retail pricing stays unchanged at 249,800 yuan ($37,210), though early buyers securing an order before November 30 receive promotional pricing of 239,800 yuan.

    Hardware upgrades and plant throughput

    Li Auto product line head Li Xinyang outlined the production ramp on Weibo, stating that vehicles for initial fulfillment were assembled in advance to cushion delivery wait times. Buyers placing orders at the end of October are scheduled to receive vehicles before the calendar year closes.

    The refreshed 2026 SUV features the company’s proprietary Mach M100 driver-assistance chip as standard equipment. Energy storage comes from a 96-kilowatt-hour Lianshan 5C lithium iron phosphate battery pack. That hardware gives the rear-wheel-drive configuration a CLTC driving range of 780 kilometers.

    Factory output targets demand that factory shifts run smoothly through the fourth quarter. Hitting 20,000 units monthly requires the assembly line to outpace earlier delivery volumes by a wide margin.

    Deliveries dip ahead of model refresh

    Delivery figures had slowed sharply prior to the refresh as showroom buyers held back for the updated specification. Li Auto handed over 7,379 i6 vehicles in September, representing a 56.54 percent drop from August numbers.

    That volume represented 23.19 percent of all Li Auto deliveries in September. Through the first nine months of the year, the company delivered 160,221 i6 units, which lifted cumulative deliveries since the vehicle’s market debut to 189,192 units by September 30.

    The gap between the 189,192 customer handovers logged through September and the 200,000-unit factory threshold reflects production buffers, test units, and vehicle consignments currently moving through domestic logistics channels.

    Extended range line maintains volume lead

    While Li Auto builds out its pure battery electric lineup, its hybrid powertrains continue to generate the bulk of operational volume. Cumulative output of the Li L6 extended-range SUV reached 420,000 units by late October.

    The L6 held the top sales position among extended-range passenger vehicles in China for two straight months. That steady hybrid volume provides retail cash flow while the company absorbs the capital expenses tied to producing in-house chips and dedicated battery packs for pure electric platforms.

    For automotive component suppliers, the ramp provides operational visibility through mid-winter. Component vendors supplying the battery cells and Mach M100 computing modules face strict delivery schedules to hit the December production target.

    Export timelines and European entry

    Domestic scale forms the base for Li Auto’s overseas ambitions. The automaker announced on October 12 that the vehicle, badged as the Li 6 for export markets, will launch in Europe during the first quarter of 2027.

    Initial sales outside China will focus on Norway and the Netherlands, two markets with established high-speed charging infrastructure. Those territories will test whether Li Auto can convince overseas retail buyers without relying on the extended-range powertrains that drove its domestic rise.

    Factory managers now face the immediate task of hitting the 20,000-unit build rate in November before pushing assembly rates higher in December.

  • LiveWire Warns of Going-Concern Risk as Cash Falls to $39.9 Million

    LiveWire Warns of Going-Concern Risk as Cash Falls to $39.9 Million

    LiveWire has issued a going-concern warning alongside its third-quarter 2026 results, stating there are substantial doubts about whether it can continue operating over the next twelve months without intervention. The Harley-Davidson spin-off saw liquid assets drop to $39.9 million as of 30 September, down from $82.8 million at the end of 2025.

    Management cited recurring operating losses, negative cash flows, limited liquidity, and ongoing funding needs for the warning. While insolvency has not been declared, the company has pulled its previous annual forecast of a $70 million to $80 million operating loss and is weighing options including debt and equity financing, partnerships, restructuring, recapitalisation, or a sale.

    The board of directors established a restructuring committee on 22 October to negotiate potential transactions and appointed Roy Gallagher as Chief Restructuring Officer. Beyond current liquidity strains, LiveWire faces a debt maturity due in December 2027.

    Motorcycle sales grow from a low base

    Operationally, LiveWire did see growth in the third quarter. Group revenue increased by 38 per cent to $7.9 million, while the net loss narrowed slightly from $19.4 million to $18.6 million. Adjusted EBITDA stood at minus $14.7 million.

    In terms of electric motorcycles, LiveWire sold 241 units, up from 184 in the same quarter last year, a 31 per cent increase. Revenue in the motorcycle segment rose from $1.0 million to $2.7 million, though the operating loss remained significantly higher at $17.0 million. The majority of the 7,233 total units sold were not motorcycles but part of the STACYC business, which includes electric balance bikes and e-bikes for children, with 6,992 units sold in the quarter.

    However, liquidity is the decisive factor in the current situation. As of 30 September, LiveWire had $39.9 million in cash and cash equivalents, down from $82.8 million at the end of 2025. In the first nine months of 2026, $38.3 million was used in operating activities, with free cash flow at minus $40.5 million. While both figures represent a 16 per cent improvement year-on-year, the outflow of funds remains high.

    As a result, LiveWire has withdrawn its previous annual forecast. The company had most recently expected an operating loss of $70 to $80 million for 2026.

    LiveWire targets new buyers with the S4 Honcho

    The financial challenges come as LiveWire is launching its new S4 Honcho range, which the company is using to significantly expand its offering into the lower price segment. In Europe, the S4 Honcho Trail starts at €5,299, while the road version, the S4 Honcho Street, is priced at €5,699. Previous LiveWire models, such as the S2 Mulholland, have typically been priced around the €20,000 mark.

    Production of the two lightweight electric motorcycles has already begun at Kymco. According to LiveWire, the first S4 Honcho Trail units were delivered in the US in August, with the Street version following in October at dealerships. For Europe, the first Trail deliveries were announced for October, with the Street version expected in November.

    With these more affordable models, LiveWire is targeting a significantly broader customer base than before. In parallel, the company is working on additional S2 derivatives and an electric maxi-scooter developed jointly with Kymco.

    Whether this expansion of the model range can have a rapid enough financial impact remains uncertain. The going-concern warning suggests that LiveWire first needs additional financing or another strategic solution to continue executing its business plan as intended.

    LiveWire was spun off from Harley-Davidson in 2022 and listed separately on the stock exchange. Harley-Davidson remains the majority shareholder of the electric motorcycle manufacturer.

  • Live2.ai and Rotoris Raise Fresh Capital Across Indian Tech and Retail

    Live2.ai and Rotoris Raise Fresh Capital Across Indian Tech and Retail

    This week, Indian luxury watchmaker Rotoris raised ₹70 crore (around $8.5 million) in a Series A funding round led by Blume Ventures to expand production and presence in India and overseas.

    Participation came from 9Unicorns and Centricity, which pooled backing from family offices including BlackRock global head of data Diwakar Goel, former Coca-Cola Asia Pacific group president Atul Singh, and Adhiraj Burman of the Dabur family. Actor Rannvijay Singha also invested.

    Alongside consumer brands, enterprise AI and trading platforms secured capital during the same period, led by Live2.ai’s ₹130 crore pre-Series B round from IvyCap Ventures and Mochatrade’s $5.5 million seed round.

    Luxury Manufacturing and Domestic Assembly

    Rotoris will direct the Series A proceeds toward research and development, expanded factory output, and physical store placement across India and international markets. The watch label competes in a premium segment historically dominated by Swiss and Japanese imports, where homegrown brands usually struggle to establish mechanical credibility.

    Consumer discretionary spending across India has tilted toward high-margin domestic design labels over the past two years. Investors back local manufacturing because retail shelf economics favour domestic assembly when import duties on finished Swiss timepieces stay elevated.

    Nutritional Brands Draw Fresh Cheques

    Packaged nutrition company Ace Blend raised 9.91 million dollars in a Series A2 round led by 3one4 Capital. Existing institutional investor Fireside Ventures provided follow-on capital for the transaction.

    Ace Blend plans to allocate the capital toward proprietary ingredient research, factory supply chain integration, and a wider product catalogue across health channels. The brand sells directly to consumers online while placing packaged dietary supplements into modern trade grocery chains and pharmacy networks.

    Enterprise Software and Retail Logistics

    B2B manufacturing platform Venttup secured 3 million dollars in pre-Series A funding led by Zerodha investment arm Rainmatter and Unicorn India Ventures. The engineering business runs digital supplier networks that supply precision parts to industrial clients and consumer hardware assemblers.

    Venttup plans to recruit additional design engineers and deploy artificial intelligence tools that benchmark component sourcing costs across India. The firm also plans to build fast prototyping centres to serve physical hardware makers trying to bypass Chinese vendor dependency.

    International Expansion and Trading Engines

    Software developer Live2.ai raised 130 crore rupees in pre-Series B capital led by IvyCap Ventures, combining fresh equity with secondary share sales to provide early liquidity to initial investors. The software vendor intends to sell its automated conversational agent platform to enterprise retail and commercial clients across North America, Europe, and Asia-Pacific.

    Retail-facing fintech operator Mochatrade closed a 5.5 million dollar seed round led by CoinFund, with backing from Coinbase Ventures and Zero Knowledge Ventures, while earlier backers include Y Combinator and Pioneer Fund. Mochatrade built a transaction engine aimed at Indian retail investors buying US-listed equities, pre-IPO equity contracts, and options, subject to regulatory clearances from domestic capital markets authorities.

  • Casio Announces Release of CMK-100 Mechanical Watch

    Casio Announces Release of CMK-100 Mechanical Watch

    Casio Computer Co., Ltd. Announced on Oct. 29, 2026, that it will release the CMK-100, an automatic mechanical timepiece featuring a lightweight titanium case and 10-bar water resistance.

    The Tokyo company created the model in response to rising demand for mechanical watches, targeting everyday and business wear.

    Five versions comprise the release, offering black, gray, and brown dials matched with titanium, nylon, or leather bands.

    Titanium Specs and Pricing Across Five References

    Each model in the CMK-100 family uses a lightweight titanium case with a hairline finish across the body and bezel, paired with a sapphire crystal and 100 meters of water resistance. Power comes from an automatic mechanical movement manufactured in Japan. The dials feature a matte texture intended to suppress reflection, anchored by raised indexes treated with multiple layers of phosphorescent paint for night visibility.

    Retail pricing splits across three strap configurations. The entry model, the CMK-100TC-1A on a black nylon strap, sells for $320. Two mid-tier variations, the CMK-100TCC-8A on grey nylon and the CMK-100TL-1A on black Italian leather, retail at $350 each. A brown Italian leather version designated CMK-100TCL-5A carries a $375 price tag, while the flagship CMK-100TD-1A with a solid titanium bracelet tops the catalog at $440.

    Challenging Competitors on Department Store Shelves

    Casio is putting mechanical movements inside titanium cases at competitive price points. By pricing titanium automatics below $450, Casio undercuts many comparable Japanese and Swiss mechanical field watches that trade on heritage rather than aggressive bill-of-materials value.

    For watch retail buyers and multi-brand department store operators across the region, the launch creates a margin challenge. Casio built its distribution scale on high-volume G-Shock and standard digital quartz lines that require minimal customer education. Selling mechanical timepieces forces sales clerks to pitch power reserves, sweep seconds, and automatic winding against entrenched mechanical catalogs.

    The Transition Out of Digital Resin

    The CMK-100 marks Casio’s second deliberate step into mechanical movements after decades of relying on quartz modules. The company tested consumer appetite for winding gears earlier in 2026 with the Edifice EFK collection, an integrated sport-watch series that introduced Casio’s first automatic calibres to market.

    The CMK100 is Casio’s response to the overwhelming demand of our introduction into the automatic timepiece category

    Said Shermeen Greenmun, vice president of timepiece at Casio America, framing the new line as a field watch designed for outdoor exploration and daily wear.

    Retail Rollout Begins in November

    Stock arrives at select physical retailers, Casio’s direct e-commerce portals, and the dedicated G-Shock Soho storefront in November 2026. The initial retail reception across North America and key Asian consumer hubs will determine whether Casio expands automatic calibres into its core resin-shock lineups next year.

  • Tanaka and MEP Form Venture for Malaysian Precious Metal Recycling Plant

    Tanaka and MEP Form Venture for Malaysian Precious Metal Recycling Plant

    Japan’s Tanaka Precious Metal Group has partnered with Malaysian recycler MEP this month to construct a precious metal recycling facility in Malaysia.

    Operating under the venture Tanaka MEP Refinery, the site aims to launch commercial operations in April 2029 to supply gold and other metals to the semiconductor industry.

    The plant will extract high-value materials from scrap generated during the fabrication of semiconductors and electronic components.

    Sourcing Metal from Electronic Scrap

    Tanaka MEP Refinery plans to process manufacturing waste directly from regional semiconductor and electronics assemblers. Recovered gold will feed back into the component supply chain, giving chipmakers a regional source of raw material.

    Production of microelectronics demands steady volumes of high-purity precious metals for bonding wires and plating. By processing scrap locally in Southeast Asia, the venture intends to reduce transit times and shipping costs associated with returning scrap to smelters in East Asia.

    Supply Security for Regional Foundries

    Packaging and testing facilities across Malaysia handle a substantial share of global semiconductor back-end assembly. Securing precious metal feedstock close to these assembly lines offers chipmakers tighter control over material inventories.

    Competition for high-grade scrap will test the new venture. Competing smelters across Japan already purchase industrial e-scrap from Malaysian factories, leaving Tanaka MEP Refinery to secure reliable collection contracts with local manufacturers before the plant starts up.

    Expanding Southeast Asian Operations

    Industrial demand for localized recycling grew as manufacturers expanded assembly footprints over the past decade. Tanaka previously handled recovery primarily through plants in East Asia before deciding to build refining capacity in Malaysia.

    Commercial operations are targeted to start in April 2029, with construction timelines and plant capacity metrics to be determined as facility development begins.

  • China Lab-Grown Diamond Producers Shift 2 Million Carats to High-Tech Sector

    China Lab-Grown Diamond Producers Shift 2 Million Carats to High-Tech Sector

    Chinese lab-grown diamond makers are cutting back gemstone production to supply thermal management components for artificial intelligence servers and semiconductors as retail prices drop.

    Around 70 per cent of the 2 million carats produced annually at Feng Canjun’s factory in October 2026 goes into jewellery, but the Chinese entrepreneur is pivoting capacity toward advanced materials.

    Feng plans to raise the share of functional materials at the facility to more than 50 per cent by 2030, reducing gemstone output as industrial demand accelerates.

    At the Jiaruifu factory run by Feng Canjun in Zhengzhou, about 70 per cent of its 2 million carats in annual production currently supplies jewellery retailers. Feng plans to push functional material volume past 50 per cent by 2030, reducing jewellery output to a ceiling of 30 per cent.

    Capital Reallocation to Hardware

    Capital expenditure across central China is shifting away from consumer jewellery cutting lines. Henan Liliang Diamond redirected 1 billion yuan, equivalent to $149.18 million, from an existing gem-grade expansion programme to finance a new functional-diamond manufacturing project, according to a corporate filing.

    The technical driver is heat dissipation in high-performance computing. Data centre electricity demand will more than double to roughly 945 terawatt-hours by 2030, according to an International Energy Agency forecast. That power load concentrates heat on silicon dies, creating bottlenecks for high-density AI clusters.

    Chinese media reported that Huawei and Taiwan Semiconductor Manufacturing Company are exploring synthetic diamonds for chip cooling. Lenovo launched a consumer laptop in China incorporating a diamond-copper composite cooling element, while Intel chief executive Lip-Bu Tan made a personal investment in US diamond-wafer maker Diamond Foundry.

    Thermal Management Supply Chains

    Laboratory testing demonstrates direct hardware gains from the material shift. Research published by the Ningbo Institute of Materials Technology and Engineering showed diamond-copper cooling modules improved chip heat dissipation by 80 per cent and lifted processing performance by 10 per cent.

    This adoption directly targets market share held by established chemical suppliers. Industrial materials groups including Germany’s Henkel, Dow in the US and Japan’s Shin-Etsu Chemical currently dominate chip thermal interfaces with silicones, adhesives and metal pastes.

    Jewellery retailers in Asia face shrinking synthetic gemstone inventory values as factory supply lines pivot. Downstream gemstone retail represents an estimated $100 billion annual global market, but factory operators see better pricing use in high-spec computing hardware than in consumer shopfronts.

    Global Substrate Competition

    Western and Japanese suppliers are building parallel capacity to counter China’s factory dominance in functional stones. Element Six, the synthetic-diamond division of De Beers, teamed up with Japan’s Orbray to manufacture three-inch single-crystal diamond wafers, while preparing two-inch production in Oregon.

    European capital is backing similar efforts. The Spanish government committed €753 million to support a Diamond Foundry manufacturing facility in Trujillo to produce synthetic diamond substrates for European semiconductor manufacturing.

    In the US market, cooling specialist Frore Systems introduced its LiquidJet Diamond component, an integrated coldplate module designed for high-density processors.

    The Manufacturing Hurdle

    Functional diamonds require far stricter purity controls than drill bits or gemstone baguettes. Semiconductor-grade wafers demand precise lattice alignment and minimal defect density, technical standards that many regional Chinese press operators cannot yet hit at commercial scale.

    The near-term commercial volume will stay in thermal heat spreaders rather than pure diamond semiconductor substrates. Heat spreaders tolerate lower purity tolerances while delivering immediate thermal relief to server racks.

    Factory operators in Henan are tracking corporate order volumes from domestic server assemblers as China accelerates local chip packaging buildouts. The transition turns Henan Liliang Diamond’s redirected 1 billion yuan facility into the primary test of whether Chinese gemstone presses can secure sustained industrial orders before 2030.

  • Lee Biscuits Shuts Malaysia Factory Cutting 300 Jobs

    Lee Biscuits Shuts Malaysia Factory Cutting 300 Jobs

    Lee Biscuits, a 92-year-old brand founded by Singapore’s late tycoon Lee Kong Chian, is ending production and shutting its factory in Johor by end-October, leaving around 300 workers without jobs.

    Suppliers and customers received notification of the halt last month. A senior manager told China Press that warehouse sales held over the last two weeks have sold out all remaining biscuit stocks.

    Customers attempting to buy products directly from the factory are now being redirected to retail outlets instead. The company has announced no future production plans for the biscuit brand, which is also known as Nam Lee.

    Depleted Stock and Empty Sundry Tins

    The manufacturing shutdown removes an established pantry staple from Malaysia’s independent grocers and sundry stores. The brand built its business on bulk tin formats and plastic packs containing soda crackers, Marie biscuits, banana tarts, iced gems, lemon sandwich biscuits, animal crackers, and spirulina whole wheat biscuits.

    Those products filled store displays across both West Malaysia and Singapore for decades, serving as low-cost volume drivers for neighborhood provision shops. With internal warehouse inventory cleared out entirely, distributors face an immediate supply cut once existing shop-floor stock runs dry over the coming weeks.

    Exit from Fast-Moving Consumer Goods

    The shutdown forms part of a broader corporate restructuring by the parent holding group to abandon consumer-facing packaged goods entirely. Capital is shifting back into upstream primary commodities, concentrating operations around rubber processing and palm oil plantations.

    For retailers and shelf planners, the departure opens up shelf space in the value cracker category. Operators relying on traditional sundry distribution face losing a heritage brand that required zero promotional spending to drive volume.

    The Manufacturing Move Across the Causeway

    Tycoon Lee Kong Chian established the biscuit brand in Singapore in 1934 before relocating operations across the border. Lee built the Lee Rubber Company into a regional empire before co-founding OCBC Bank through a three-way merger in 1932.

    Manufacturing ran inside Singapore for over two decades until management shifted the lines to Johor Bahru in 1955 to tap cheaper agricultural raw materials and processing facilities. Operations relocated again within Johor to the current factory site in 2005, where lines ran continuously until this month’s wind-down.

    Sequential Plant Closures in Johor

    The factory shuttering follows an identical retreat from the packaged food sector. The group permanently closed its Lee Pineapple canning facility in Skudai, Johor, in 2023, ending decades of fruit processing to focus resources on upstream estate acreage.

    Retail buyers must now run down their final cases of biscuits before factory gates close permanently by end-October.

  • Volkswagen Halts India EV Investments as It Seeks JSW Deal

    Volkswagen Halts India EV Investments as It Seeks JSW Deal

    Volkswagen AG has halted investments in an electric-vehicle program for India until it gains clarity on a potential partnership with billionaire Sajjan Jindal’s JSW Group. The pause follows an announcement last month by both companies that they are exploring a venture to develop, build and market passenger vehicles in India.

    Volkswagen has finished design work using a low-cost EV architecture originally developed for China, positioning it to scale quickly once talks conclude. However, the German group is withholding additional capital until the partners establish a firmer business plan.

    The investment hold comes amid a worldwide cost-cutting drive that aims to trim group investments by about 15% and cut tens of thousands of jobs. VW had already reduced the costs of developing EVs in India by a third last year as it searched for a partner, and it currently sells no battery-powered cars in the country under either its namesake or Skoda brands.

    Global Headwinds Squeeze Indian Budgets

    Spending cuts at headquarters are dictating the local timetable. Volkswagen is trimming its worldwide capital investments by roughly 15 per cent and eliminating tens of thousands of jobs as it grapples with weak deliveries across Europe and aggressive competition from Chinese producers.

    Those international pressures prompted management to slash its projected Indian EV development budget by a third last year while searching for a local equity partner. The spending freeze now leaves the automaker without an electric passenger vehicle on sale in India under either the Volkswagen badge or Skoda.

    Rivals Lock Down Showroom Space

    The delay hands an open field to domestic incumbents and new Asian competitors. Tata Motors Passenger Vehicles Ltd. And Mahindra & Mahindra Ltd. Dominate existing electric vehicle deliveries, while JSW’s other partner SAIC Motor Corp. Pushes its MG brand across Indian dealerships alongside entries from BYD Co., VinFast and Tesla Inc.

    Stepping back from direct capital spending shifts risk directly onto Volkswagen’s commercial footprint in South Asia. India registered more than 35,000 electric passenger cars in September, nearly doubling sales from the same month a year earlier, and stricter national fuel-efficiency standards make zero-emission models mandatory to protect traditional engine sales.

    Two Years of Search for a Local Ally

    Volkswagen and JSW disclosed last month that they are assessing an alliance to develop, manufacture and sell passenger vehicles in India as well as for export markets. The planned scope spans battery-electric vehicles, plug-in hybrids, traditional hybrids and internal-combustion engines.

    Finding a local partner has proved difficult for the German group. Management spent almost two years scouting an Indian manufacturer to split development costs after earlier partnership discussions with Mahindra broke down.

    Skoda Auto Volkswagen India Pvt. Currently generates only a marginal share of national car registrations. Resolving the partnership structure with JSW is the sole mechanism the German automaker has left to finance a competitive local electric platform before regulatory penalties tighten.

  • Chery Explores Canada Factory Plans Ahead of 2027 Retail Debut

    Chery Explores Canada Factory Plans Ahead of 2027 Retail Debut

    Chery is evaluating options to manufacture vehicles in Canada ahead of a planned retail sales rollout in 2027.

    Executive vice president Zhang Guibing confirmed the automaker is examining idle manufacturing capacity at existing Canadian automotive assembly plants while speaking with local investment partners.

    The plan involves either acquiring spare production lines or constructing assembly operations alongside regional backers. Canada holds viable commercial demand on its own merits without needing vehicle access across the United States border, Zhang said during briefings at the company headquarters in Wuhu, Anhui province.

    Tariffs and Bilateral Import Quotas

    Ottawa updated its trade rules for Chinese-built electric models following an agreement struck in January. That pact established an entry quota allowing 49,000 imported Chinese electric vehicles per year at a most-favoured-nation tariff rate of 6.1 per cent, with volume thresholds scheduled to climb annually.

    Washington maintains high tariff barriers alongside technological bans that effectively shut Chinese brands out of the American domestic network. United States officials have stated that Chinese-badged passenger cars assembled or routed via Canadian hubs will face border blockades. Establishing Canadian assembly grounds gives Chery a domestic base insulated from third-party cross-border restrictions.

    Canadian Industry Minister Melanie Joly travelled to China in June for talks with Chery, Geely and BYD regarding local joint ventures. Charlie Zhang, vice president at Chery, conducts direct discussions with Joly regarding factory structures.

    Offshore Factory Expansion Across Key Continents

    Domestic automotive price wars inside mainland China have forced original equipment manufacturers to secure higher margin vehicle volume outside Asia. Assembling cars inside host territories shields carmakers from emergency tariffs while cutting maritime logistics costs.

    Chery already operates a joint venture manufacturing facility in Spain. The group acquired Nissan’s former production plant in South Africa to anchor distribution across the continent, while assessing manufacturing slots inside Nissan’s Sunderland facility in the United Kingdom.

    Rival brands from China are following identical tracks into the Canadian car market. Geely confirmed plans on October 9 to deliver its opening vehicle range to Canadian showrooms in 2027, while BYD has reviewed site locations to establish domestic vehicle production.

    Timeline for Production and Sales Milestones

    The outreach to North America follows an active model offensive across international auto markets, including the display of Chery’s Jetour G700 sports utility vehicle at the Beijing Auto Show in April 2026.

    Operating within Canada enables Chinese carmakers to test local consumer acceptance, dealer network recruitment and service logistics before taking on broader Western vehicle markets. The main commercial risk sits with supply chain integration, as component suppliers must establish local links to keep production lines viable.

    Canadian government ministries are reviewing partner submissions as Chery vets prospective factory facilities before its planned retail vehicle launch in 2027.

  • Beko Expands Singer Bangladesh Operations as Bilateral Trade Eyes $2 Billion

    Beko Expands Singer Bangladesh Operations as Bilateral Trade Eyes $2 Billion

    Beko and parent group Koç Holding sent top leadership to inspect manufacturing plants and retail sites across Bangladesh, anchoring expansion plans around a $2 billion bilateral trade target.

    The push follows bilateral trade between Türkiye and Bangladesh touching approximately $1.36 billion in 2025.

    Executive Delegation in Narayanganj

    Polat Şen, president of the consumer durables group at Koç Holding, toured Beko’s manufacturing facility in Narayanganj alongside Zafer Üstüner, chief commercial officer for Asia, Russia and South Africa at Beko and chief executive of Arçelik Hitachi. Nihat Bayız, chief production and technology officer at Beko, joined the group to review technical operations.

    Singer Bangladesh managing director and chief executive MHM Fairoz hosted the delegation across the production plant, Singer | Beko concept stores, and the company’s newly relocated corporate headquarters. The fresh corporate base adopts Beko’s standardized workplace format.

    Retail Footprint and Factory Upgrades

    The operational overhaul spans direct production capacity and front-facing shop floors. Singer Bangladesh opened concept stores designed to merge consumer appliances with digital retail experiences, replacing older, single-line retail formats that dominated suburban trade.

    Local manufacturing in Narayanganj provides Beko with direct assembly lines inside the country, avoiding stiff import duties on fully built consumer durables. Producing locally lets the group price refrigerators, washing machines and televisions against regional competitors while insulating supply chains from freight bottlenecks.

    Market Competition and Commercial Risks

    RetailNews Asia views the appliance build-out as a calculated attempt to break domestic market leaders’ tight grip on Bangladeshi households. Domestic competitors maintain an extensive dealer network and integrated supply chain across secondary cities, giving them cost advantages that foreign brands struggle to meet without domestic fabrication.

    Suppliers and floor operators face margin pressures as consumer spending in South Asia adjusts to currency fluctuations and shifting energy tariffs. Beko’s commitment assumes middle-income appliance demand will outrun inflation risks, though financing terms for high-ticket white goods remain sensitive to local interest rates.

    Industrial Trajectory and Trade Targets

    Koç Holding operates Singer Bangladesh through its consumer durables flagship to secure a distribution base with deep brand recall. The subsequent deployment of modern concept shops and the Narayanganj factory build on capital allocation designed to convert Singer from an assembler of imported kits into an integrated appliance maker.

    Government trade planners are steering trade flows toward the $2 billion threshold, leaning on industrial equipment, electronics and textiles to clear the remaining trade gap. Factory output volumes from Narayanganj and the pace of concept store rollouts across major districts determine whether Singer Bangladesh holds off domestic champions through the next fiscal cycle.

  • Malaysia Keeps 2% Pension Contribution for 1.75M Foreign Staff

    Malaysia Keeps 2% Pension Contribution for 1.75M Foreign Staff

    Malaysia will keep the 2 per cent Employees Provident Fund contribution rate paid by employers for non-Malaysian workers, the Finance Ministry confirmed in a written parliamentary reply published on Parliament’s website yesterday.

    Responding to a query from Jimmy Puah Wee Tse (PH-Tebrau) on easing operating burdens for small and medium enterprises, the ministry stated that the current rate remains relatively low while balancing social protection objectives against business costs.

    Since mandatory contributions took effect under the Employees Provident Fund Act 1991 in October 2025, 78,129 employers have contributed for 1,754,460 non-Malaysian staff, with SMEs accounting for 67,194 of those businesses.

    Breakdown Across Business Sizes

    The requirement sits under the Employees Provident Fund Act 1991, which legislators broadened to include all foreign workers in late 2025. The Finance Ministry framed the 2 per cent employer share as a deliberate compromise designed to expand social safety nets without crushing operating budgets.

    Tebrau member of parliament Jimmy Puah Wee Tse had pressed the ministry on relief measures for small businesses, asking if foreign staff could absorb the entire statutory deduction instead. The ministry answered that the existing two per cent charge remains relatively low while meeting international baseline standards for equitable migrant protection.

    Official definitions classify manufacturing firms with up to 200 staff and services companies with up to 75 employees as small and medium enterprises. These operations employ the bulk of migrant payrolls in Malaysian factories, logistics hubs, and restaurants.

    Margins Tighten on Frontline Operators

    For store operators, wholesale distributors, and food chains, statutory payroll additions compound broader cost increases across physical supply chains. Adding mandatory provident payments directly raises monthly cash outflows for service desks and backroom staff.

    RetailNews Asia sees the policy cementing a permanent cost floor under Malaysian service networks. Similar statutory pension schemes in regional hubs like Singapore have historically pushed thin-margin operators to accelerate self-checkout counters, automated order processing, and tighter shift scheduling to cap payroll overheads. Passing statutory burdens onto low-wage migrant staff would risk choking off cross-border talent pipelines that retail backrooms depend on.

    Shifting Away from Labour Subsidies

    The October 2025 expansion dismantled decades of policy that excluded transient labour from domestic retirement plans. Regulators introduced the revision alongside wider welfare initiatives aimed at bringing domestic employment standards closer to global trade benchmarks.

    The government said it will continue monitoring business conditions and consult trade associations to gauge how small operators absorb the extra charge. The Finance Ministry left the door open to targeted operational assistance for struggling sectors while keeping the statutory contribution structure intact.

  • Samsung and SK Hynix Upgrade China Memory Plants Past 200 Layers

    Samsung and SK Hynix Upgrade China Memory Plants Past 200 Layers

    Samsung Electronics and SK Hynix are upgrading their manufacturing plants in China to produce NAND flash memory chips with more than 200 layers. The retrofits target swelling demand for artificial intelligence hardware and push back against domestic rival Yangtze Memory Technologies Co, which recently took the top position in China’s memory market.

    Yangtze Memory Technologies Co captured 38.5 percent of China’s NAND flash market during the second quarter, rising from 28 percent across all of 2025. That expansion pushed Samsung’s local market share down to 33.5 percent from 36 percent, while SK Hynix dropped to 17 percent from 20 percent.

    Samsung runs its primary overseas memory fabrication site in the northwestern city of Xian. The complex accounts for roughly 40 percent of the South Korean group’s global NAND flash output and currently builds chips stacked to approximately 200 layers.

    Retooling Xian for 286 Layers

    Under an internal project named Monami, Samsung is converting the Xian factory lines to produce 286-layer V9 NAND chips. The plant is scheduled to process 5,000 wafers monthly starting in December this year, stepping up to 40,000 wafers each month by December 2027. Samsung confirmed the plant updates are proceeding in compliance with Washington’s export regulations.

    The upgrade is aimed at meeting growing demand from global customers, including those in the US. The company is not expanding production capacity or constructing new manufacturing facilities.

    SK Hynix Pushes Dalian Operations

    SK Hynix is pursuing a parallel upgrade at its site in Dalian in northeastern China. The facility currently manufactures 192-layer NAND chips, and the company plans to transition lines toward 240 layers or higher.

    The South Korean group took over the Dalian factory in 2021 through its acquisition of Intel’s NAND flash business. The subsidiary, operating under the Solidigm brand, relies on Dalian as its sole NAND manufacturing site while preparing for an initial public offering in the United States.

    SK Hynix holds clearance to assemble chips up to 240 layers at Dalian. The company may request permission from the United States to run research and development on chips with more than 300 layers there, creating technical groundwork for planned manufacturing on American soil.

    Regulatory Pressure and Domestic Competition

    For hardware brands and electronics assemblers operating across Asia, the plant refits determine component pricing and local component availability. Samsung and SK Hynix have faced operational hurdles since the United States rolled out export controls on advanced semiconductor equipment in 2022. Both manufacturers must obtain annual American licences to import specialized tools such as etching gear into mainland China.

    The US Commerce Department’s Bureau of Industry and Security announced in 2025 that it did not intend to authorize technology upgrades or capacity expansions at foreign-owned semiconductor plants in China. Restricting foreign lines gave YMTC room to run. The Chinese manufacturer relies on 160-layer and 232-layer designs for volume shipments, but it already yields limited batches of 294-layer memory and is preparing architectures exceeding 300 layers.

    Fab Limits and the Next Phase

    South Korean chipmakers have kept their most advanced production lines at home to safeguard proprietary designs. Outside mainland China, Samsung sells NAND chips stacked up to 286 layers and showed a prototype with more than 400 layers in August, while SK Hynix markets finished memory chips reaching 321 layers.

    Operating legacy processes in China risks shutting both suppliers out of high-density solid-state drive contracts for mainland data centres and premium smartphone manufacturers. SK Hynix is concurrently holding discussions with the Trump administration regarding plans to build a new NAND factory in the United States. Samsung’s retrofitted Xian facility is aiming for an initial monthly output of 5,000 wafers in December this year.

  • VinFast Cuts Net Loss to $56 Million on Factory Disposals

    VinFast Cuts Net Loss to $56 Million on Factory Disposals

    VinFast narrowed its net loss to $56 million in the second quarter of 2026 after booking a $1.18 billion gain from selling its Vietnam factories.

    Operating losses from continuing operations rose 48 per cent from the previous quarter to $1.24 billion. The carmaker delivered 70,085 electric vehicles during the three-month period, bringing first-half deliveries to 43 per cent of its full-year target of 300,000 units.

    Factory Disposals and Debt Offloading

    The accounting relief stems from a broader balance-sheet overhaul. VinFast sold its two primary assembly plants in Vietnam and transferred $7 billion in debt to entities linked to parent company Vingroup and its founder, Pham Nhat Vuong.

    Vehicles will continue rolling off those domestic lines under long-term contract manufacturing agreements matching company specifications. The restructuring shifts heavy fixed capital off the carmaker’s books while keeping production flowing without direct factory ownership.

    Chief executive Pham Nhat Quan Anh, who took over leadership last month from his father, defended the transition toward an asset-light operating model during his debut analyst call.

    “We continue to hold and operate our plants in India and Indonesia, supporting local production,” Quan Anh said.

    Domestic Reliance and Asian Expansion

    Home-market buyers continue to absorb almost all output. Vietnam accounted for 89 per cent of deliveries in the second quarter, leaving overseas volumes heavily reliant on affiliate fleet deployments rather than direct consumer sales.

    Green SM, the taxi operator established by Vuong that runs exclusively on VinFast vehicles, serves as the primary distribution channel across new territories. The fleet operator expanded into Jakarta with motorbike services and launched operations in India, establishing initial vehicle volume ahead of retail dealer networks.

    Management identified Indonesia, India, and the Philippines as the core drivers for foreign market growth. Keeping physical factories in India and Indonesia allows the company to meet local manufacturing requirements while ducking heavy import duties in high-potential Asian markets.

    Pivot Away From Western Assembly

    The Asian focus follows severe friction in Western markets where direct sales and manufacturing stalled. North Carolina state authorities filed a lawsuit against the carmaker over missed construction deadlines and unmet job creation targets at its proposed US assembly site.

    Direct consumer demand in North America remains weak. Green SM recently launched taxi operations in Los Angeles to put vehicles on roads after private retail sales failed to gain traction, though the company plans to introduce its VF7 compact SUV and electric buses to US dealers later this year.

    Chief investment officer Chien Nguyen indicated that further expansion into the Americas and Europe remains under review, with details expected in the third quarter.

    Targets for the Second Half

    Meeting the annual 300,000-vehicle delivery target will require more than 170,000 handovers across the final six months of 2026. That push depends on ramping up the new VF Wild REEV, a range-extended electric pickup incorporating a backup combustion generator to alleviate range anxiety in developing markets.

    VinFast must now prove whether its asset-light manufacturing setup and captive taxi orders can generate real cash flow once the one-off financial gains from factory sales clear off the ledger.