25 SEPTEMBER, 2024

Booming industry, potholes, mid-air theft and employee shortages

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What is going on in the insurance world at the moment? As usual there are numerous news stories involving insurance in one way or another, so let’s see what’s been happening.

Malaysia’s industrial sector will keep growing in 2024
Malaysia’s industrial sector has been enjoying a strong upward momentum for some time, so it’s good to know experts say the boom is set to continue. Strong domestic demand plus ongoing global recovery is the reason, according to Public Investment Bank Bhd. Apparently our industrial production index rose by 5.3% year-on-year in July, rising from 5% the previous month thanks to ‘robust’ growth in manufacturing, supported by booming domestic and export industries.

The world’s global semiconductor market is predicted to grow by an impressive 16% year on year for 2024, with another hefty increase of 12.5% predicted for 2025. This is particularly good news for Malaysia because our electrical and electronics sector, which is already responsible for over 40% of exports, is still growing thanks to a dramatic recovery in global demand.

From our point of view, as a Malaysia insurance intermediary, it’s important for growing businesses to make sure their insurance policies keep pace with growth, and that you have the correct business insurance policies in force to support and protect you as the business changes and grows.

The answer to Malaysia’s ongoing pothole problem
Increasing traffic, more heavy vehicles than ever plus heavy rains are taking their toll on our roads, and potholes can cause fatal accidents. The Road Accident Management System and Works Ministry say there have been 181 road accidents, 23 fatal, because of potholes between 2022 and July 2024 alone, affecting Malaysia’s 6,218.47km of federal roads. Now the Public Works Minister Datuk Seri Alexander Nanta Linggi says an innovative new paving material called Specialty Mix will boost the durability of roads and help the surface last longer, including special additives to improve and reinforce asphalt.

The new Specialty Mix will address specific issues on routes with heavy traffic, places with high surface water runoff, winding roads and steep routes. The blend of coarse and fine aggregates, fillers, bitumen and additives should deliver good resistance to ruts and cracks.

We currently use eight specialty mix pavement materials in Malaysia. So far special mixes are being used on roads at Lingkaran Pulau Indah Fasa 3, Jalan Perindustrian Rawang in Selangor, Jalan Pintasan Cameron Highlands at Jalan Baharu from Habu to Tanah Rata, Pahang, and more. As the mixes become increasingly advanced, officials say their use should be supported by all political parties.

Vehicle insurance pays out for accidents, and those in control of the quality of our roads will have public liability insurance that pays out to compensate people who have pothole-related accidents.

Keep your eyes open for thieves on board aircraft
If you think your belongings are safe 30,000 feet up in the air, think again. A theft on board a flight, shared widely on X, has brought mid-air thefts to everyone’s attention, and it looks like they’re not as unusual as you might hope.

Apparently thieves are stealing bags stored in overhead compartments in aircraft, rummaging through people’s hand-luggage in plain sight, often acting as though the bags belong to them. In the case shared on X, the thief was caught on camera trying to steal from an overhead bag. The passenger told the crew and the thief tried to run away – not easy on an aircraft! He was eventually escorted off the plane to be questioned by police.

Theft is usually covered by travel insurance policies, but it makes sense to take extra care of your belongings while flying and keep your eyes peeled for thieves.

A critical gap of 60,000 engineers to fill
Malaysia has ambitious semiconductor manufacture plans, but the country’s progress is being hampered by a shortage of skilled employees. It looks like we have a ‘critical gap’ of 60,000 engineers to fill to make the semiconductor industry as successful as predicted. The Straits Times said there’s an influx of experienced Malaysians returning home from other countries, having been unable to find work in Malaysia after graduating. It’s good news when our country has such bright industry prospects, so many valuable government incentives, and such a low cost of doing business.

With international names like Intel and Infineon already here and Penang nicknamed the Silicon Valley of the East, it’s no surprise Malaysia is determined to increase its share of the world’s semiconductor exports. At the moment it’s 7%, with a target of 15% by 2030, giving us a doubled output of RM1.2 trillion. It’s clear there’s an urgent need for 60,000 more engineers to join the 90,000 already working in our chip industry.

Employee Benefits are an excellent proven way to attract the best people and keep them with you. If your chip business needs fresh blood, you might want to consider offering them benefits they’ll value enough to be loyal for years to come.

That’s the insurance news. How can we help you today?