According to the latest data, Chinese photovoltaic companies have shown strong development momentum globally, with overseas module production capacity exceeding 55.4GW. Among them, Southeast Asia is the largest photovoltaic production base outside China, with module production capacity invested and built by Chinese companies as high as 50GW.
Among the four Southeast Asian countries, the development of Malaysia's photovoltaic industry is particularly eye-catching. Its module production capacity is second only to Vietnam and is the second largest module producer in the region. At the same time, its cell production capacity is also particularly outstanding, reaching 16.5GW.
At the "Malaysian Photovoltaic Industry Investment Opportunities Online Sharing Session" organized by the China Photovoltaic Industry Association, Ms. Noor Suziyanti Saad, Director of the Power Electronics Department of the Malaysian Investment Development Authority, pointed out that many Chinese photovoltaic giants have established vertically integrated production capacity in Malaysia. Among them, LONGi has a complete industrial chain covering all aspects of silicon rods, silicon wafers, cells and modules, while Jinko and Risen Energy focus on the manufacturing of cells and modules.
Yuan Huazhi, general manager of Risen Energy Technology Co., Ltd. (Malaysia), revealed that the company’s factory in Malaysia covers an area of 300 acres and has a construction scale of 4GW cells and 4GW modules. At present, the first phase of the 2GW battery module project has been successfully put into production, and focuses on PERC technology, launching three products of 550W, 600W and 660W. The second phase of the project plans to upgrade to n-type products to respond to new market demands.
In addition to Chinese companies, Malaysia has also become a hot spot for investment by overseas photovoltaic companies. First Solar, Hanwha Qcells and Maxeon have all built factories here.
Wang Chengxing, Investment Counselor of the Investment Office of the Malaysian Embassy in China, said that since 2007, the Malaysian photovoltaic industry has developed rapidly and has become an indispensable link in the global photovoltaic value chain. In 2023, Malaysia approved a total of US$71.8 billion in investment, a year-on-year increase of 23%. Among them, China, as Malaysia’s fifth largest source of investment, participated in a total of 64 investments in manufacturing projects last year. On the 50th anniversary of the establishment of diplomatic relations between China and Malaysia, this achievement undoubtedly demonstrates the huge potential and advantages of cooperation between the two countries in the low-carbon field.
The reason why Malaysia has become a hot spot for the photovoltaic industry is due to its relatively complete industrial supporting facilities and attractive investment preferential policies.
According to Ms. Suziyanti, Malaysia has more than 50 years of development in the electronics and electrical industry. It has gradually transformed from the initial labor-intensive low value-added assembly to a capital-intensive, knowledge-based high value-added link. In the upstream of the photovoltaic industry chain, Malaysia currently has a polysilicon manufacturing company OCI. According to statistics from Sinovoltaics, a third-party organization, the company’s production capacity is approximately 82,000 tons.
In addition, Malaysia also has many supporting industries such as chemical raw materials, equipment, and machinery, as well as engineering support industries that can provide multiple services such as mechanical processing, metal stamping, and surface engineering to support investment in the photovoltaic industry.
In addition to supporting industries, Malaysia has also built industrial parks with complete services. As one of the best industrial parks in the Asia-Pacific region, Kulim Hi-Tech Park brings together many high-tech companies. According to Che Abdul Khalid Md Din, chief operating officer of the park, First Solar, Risen Energy, Shandong Jinjing Science & Technology, and a certain silver pulp company have all settled in the Kulim Hi-Tech Park.
In terms of preferential investment policies, the government encourages multinational companies to invest and build factories locally. For photovoltaic module companies, it is required to establish integrated production capacity and encourage the configuration and use of new machinery and production equipment. At the same time, the government also provides a maximum 100% income tax reduction ratio and a full tax exemption for 10-15 years. Existing manufacturing companies with an investment of more than 500 million ringgit (approximately 770 million yuan) can receive a 15-year period full tax exemption for the year.