Bangkok: The Thai Electrical Wire Manufacturers Association (ATCM) and the Malaysian Electrical Wire Manufacturers Association (MCMA) have officially embarked on a collaborative initiative to enhance the production standards for electrical wires within the ASEAN region. This partnership, marked by the signing of a Memorandum of Understanding (MOU), seeks to improve user safety and support the ongoing energy and infrastructure transition.
According to Thai News Agency, Mr. Pongsapat Nakornsri, President of ATCM, emphasized that this collaboration aims to establish common industry standards across Thailand and Malaysia. The initiative is poised to bolster the growth potential of the Southeast Asian market, which is experiencing a surge driven by infrastructure demands and a transition towards clean energy solutions.
Mr. Pongsapat highlighted the anticipated growth in power cable demand in Southeast Asia, projected to reach a 5.8% increase by 2025, the highest globally. This surge is attributed to factors such as the digital economy, smart city developments, the electric vehicle market, and data center investments in both Thailand and Malaysia. Additionally, the ASEAN power cable industry is expected to expand further, fueled by regional projects like the ASEAN Power Grid and the shift to clean energy, necessitating standardized and safe power cables.
Mr. Tee Kok Hwa, Vice President of MCMA, stated that the collaboration aims to foster a regional network of cable manufacturers, providing a platform for sharing information on standards, market research, and joint solutions. This initiative is set to enhance the competitiveness of the electrical wire industry in both countries and throughout the region.
Malaysia is focusing on substantial investments in electricity infrastructure. Prime Minister Anwar Ibrahim recently announced a plan to allocate 43 billion ringgit (approximately US$10 billion) to upgrade the national grid infrastructure, accommodating the growth of artificial intelligence (AI) and battery energy storage systems (BESS).
The MOU between ATCM and MCMA outlines nine key areas of cooperation. These include promoting electrical wire production, enhancing industry efficiency through improved product quality standards, ensuring safety in production and distribution, and maintaining an ongoing collaboration with government agencies, trade associations, and international industry representatives.