The overall sentiment in the Southeast Asian manufacturing sector is one of relief over the announced tariffs from the United States, but concern remains about weak international and domestic demand. From my own anecdotal surveys of manufacturers, purchasing agents for foreign buyers are back at the five-star hotel breakfast buffets and busy making appointments with suppliers to renegotiate deals that were on hold for months due to uncertain trade policies.
This gut-feeling sentiment is backed by PMI trends in August:
Malaysia: The PMI reached near expansionary levels at 49.9.
Thailand: The PMI hit 52.7, up from 51.9 in July, as strong trends continued.
Vietnam: The PMI remained promising at 50.4, but it was down from July鈥檚 52.4.
A few recently announced projects and investment news items are listed below:
Malaysia
On June 27, 2025, EVE Energy (China) announced that it would invest up to $1.2 billion to build and expand a production facility for energy storage batteries in northern Malaysia, near Penang. The project is estimated to take two and a half years to complete. The first phase of the plant鈥檚 production will concentrate on lithium batteries for smaller voltage applications, such as power tools and electric two-wheelers. The second phase will produce larger-scale batteries for energy storage systems.
To date, Intel (United States) has invested $12 billion in Malaysia and has pledged to invest another $2.4 billion by 2032. Much of the new investment will go toward advanced packaging and assembly/test manufacturing facilities. Some of this investment comes following the cancellation of planned expansions in Germany and Poland. Many sources confirm that Intel is doubling down on its investments in Malaysia.
JST Power Equipment Inc. (United States) recently announced the opening of a new manufacturing facility in Port Klang, Malaysia. The facility will produce pad-mounted distribution transformers ranging from 25 kVA to 6,000 kVA, with voltage ratings up to 35 kV. While initial production began in 2025, further investment will be made to scale the plant鈥檚 capacity fivefold, reaching 3,500 units next year. The move strengthens JST鈥檚 presence in Southeast Asia and supports growing demand for distribution and medium-voltage transformer solutions. The company continues to scale its operations in line with increased global electrification and infrastructure investment.
Sick AG (Germany) broke ground in May 2025 on a new facility in Johor, Malaysia, to strengthen the production of sensor-based industrial automation instruments. The total investment of $200 million will be realized by the end of 2026. The main target markets for the company鈥檚 instruments are factory automation, process industries, and safety and environmental monitoring.
Thailand
Quasar Medical (Singapore) will make a significant investment in Thailand to expand its manufacturing capacity with a new, 140,000-square-foot facility. It is a global contract development and manufacturing organization that delivers end-to-end solutions for catheter systems, balloon technologies, micro-EM sensors, and complex assemblies. The actual investment amount hasn鈥檛 been announced, but some sources estimate it at around $200 million.
Vietnam
In June 2025, Schoeller-Bleckmann Oilfield Equipment AG (Austria) announced a $20 million expansion to its facility in Vietnam, which manufactures high-precision, non-magnetic components for the oil and gas exploration industry.
Cooler Master (Taiwan), a global leader in computer hardware, particularly thermal cooling solutions, has been actively expanding its manufacturing footprint in Vietnam as part of its broader strategy to meet surging demand for AI-related cooling technologies. In July 2025, they announced a further expansion of $23 million for additional manufacturing capacity, bringing their total investments in the country to approximately $200 million.
YKK Corp. (Japan), a manufacturer of fastening products like zippers, buttons, and other apparel fasteners, announced an expansion of its operations in Vietnam on June 18, 2025. The additional investment of about $80 million in factory capacity is part of a total investment of $300 million in Vietnam over the last 25 years.
One Refractories (Belgium) announced an investment of $65 million to begin production in Vietnam. They manufacture monolithic refractory products, specializing in castables, both dense and insulating, for high-temperature applications. This investment signals that the market for high-temperature furnaces, kilns, and reactors will grow in the region.
Italian scooter and motorcycle manufacturer Piaggio Group has maintained a significant presence in Vietnam since 2007. Piaggio views Vietnam as a production base and a trendsetter for its Asia-Pacific operations, exporting to 16 countries in the region. They announced a commitment to invest an additional $29 million this year.
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