china launches a brand new investment fund to propel its domestic chip industry, and avert us restrictions. that friction between the us and china has allowed malaysia to step in as a new hotspot for semiconductor factories. hello and welcome to business today. i'm steve lai. to our top story — china has launched a brand new semiconductor investment fund, its largest one to date. the fund is worth over $47 billion, and comes as china tries to boost development of its domestic chip industry, amid us restrictions on beijing's access to advanced chips. china's finance ministry is the largest shareholder of the fund, along with investments from various government enterprises and state—owned banks.

those tensions between washington and beijing over taiwan, trade and technology have encouraged businesses to look beyond china for their factories. malaysia for one, is hoping get a larger slice of that manufacturing pie. intel and globalfoundries are some firms that have recently expanded their operations in malaysia. according to sources, it hopes to double share. for more, i spoke to ong kian ming. he is the former deputy minister of trade and industry of malaysia. i think there's a challenge and opportunity, how do you deploy the chinese funds to go into the chinese funds to go into the innovative companies that would be in a position to come out with new products in the sum of the then there will be one challenge. including opportunities for companies in the region including malaysia

to see how... by either investing or going to china or attracting chinese companies to come to malaysia to set up shop and invest in the sematech curtain ecosystem. == curtain ecosystem. -- semiconductor. - curtain ecosystem. -- semiconductor. if - curtain ecosystem. -- semiconductor. if we | curtain ecosystem. —— semiconductor. if we take a step back, you are in office from 2018. were focus chips and area back then? it from 2018. were focus chips and area back then?— area back then? it was, but i think that — area back then? it was, but i think that was _ area back then? it was, but i think that was the _ area back then? it was, but i think that was the start - area back then? it was, but i think that was the start of i think that was the start of realising that us—china tensions were here to stay and i think covid tensions made everyone realise the importance of having racialisation and as a result, we can see many more us, european, japanese, korean and chinese companies coming to singapore and vietnam and malaysia to acquire and invest �*s and also to have a totally

new investment in malaysia. what should be understood about malaysia's role in this? i think they occupy a crucial middle in terms of the middle of the supply chain in the semiconductor space. we're not at the top end of manufacturing. but we are not at the bottom end as well whether there's a lot more entry—level manufacturing. in the ems services, as well as the ems services, as well as the assembly and testing, malaysia is a very crucial part of the supply—chain and i think the government has identified areas where it wants to go up the chain, including in some areas of chip design, including in generative ai chip design. looking advance chemicals as the supplies to the semiconductor space, and also the kind of logistical we have

in terms of assembly and packaging that's also very important. packaging that's also very important-— packaging that's also very imortant. ~ , important. mesah competitive s - ace, important. mesah competitive space. but _ important. mesah competitive space. but it's _ important. mesah competitive space, but it's also _ important. mesah competitive space, but it's also a - space, but it's also a fast—moving one. we talked about us—china tensions earlier. the us is also increasing tariffs on chinese made chips and vehicles as well. you see this tension between these two powers working in malaysia's favour? i think it is a challenge as well as an opportunity. i will also throw in the reason... there been some actions taken not just against chinese, but also complaints against dumping. there been levels of some companies operating in the region. the opportunity would be we will see many more companies from other parts of the world coming to malaysia to set up the ecosystem. but i fear is what extent will the us

start to focus the attention on the chinese supply chain that is growing southeast asia? the leaders of _ is growing southeast asia? the leaders of china, south korea and japan have agreed to resume talks. the premier met with the south korean president and the japanese present on monday. the three also agreed to work together to combat climate change as well as low birth rates ageing populations in the country. elon musk�*s startup says it has raised $6 billion in the company's latest round. according to x al, the money will be used to improve its chatbot, which answers questions with a little humour,

recruiting, to mr musk. it has since advocated for the potential dangers of the technology. to india now, where the country's food safety regulator has banned the unauthorised sale of breast milk after reports and representations were made that there were companies involved in the business. the bbc�*s arunoday mukharji has more on why they needed to crack down. this has been a concern as some have complained that there are some companies in the country which are involved in the practice of selling breastmilk. triggered along these complaints, india's top food regulator has come up with the directive saying that the unauthorised commercialisation of breastmilk is an offence and any company that is found to violate this order will invite punitive action. we've seen reports that there are these milk banks which are involved in the sale of breastmilk, but they operate as nonprofits.

they are getting word from lactating mothers and this milk is sold at a profit. surprisingly, a lot of them have managed to get a licence from the relevant authorities, saying that they are involved in the business of dairy products, but is later on, it has been found of these dairy products consist of powdered breastmilk. so, the food regulator issued a directed saying control needs to be contained still not canteen and no licenses should be given out to any company in such practices. tackling climate change can be very expensive, but when your very existence depends on it, you might feel you have little choice. couple that with higher global interest rates, and it's even tougher to borrow the billions that's needed to fight the climate battle. that's the key challenge facing 37 nations meeting at the un's conference on small island developing states. the bbc�*s jonathan josephs spoke to the maldives' special envoy for climate

change about how they're trying to secure their future. the very beauty that brings millions of tourists to places like the maldives each year is also the biggest threat to their future. also the biggest threat to theirfuture. the also the biggest threat to their future. the 37 countries being so close to rising sea levels means access to cheaper money from richer countries is crucial to winning the fight against climate change. according to the man trying to agree an action plan.- according to the man trying to agree an action plan. where we see some _ agree an action plan. where we see some of — agree an action plan. where we see some of the _ agree an action plan. where we see some of the development | see some of the development like the coastal protection, those are really climate inefficient for us because it's protecting a lot of the coast, but financing for that falls into the category of development. it's sometimes difficult to get access to financing on those grounds. what we are asking is we need to modify those criteria which finance is provided. fire to modify those criteria which finance is provided.— finance is provided. are you able to put _ finance is provided. are you able to put any _ finance is provided. are you able to put any kind - finance is provided. are you able to put any kind of - able to put any kind of approximate number on this? are

we talking a few billions? tens or billion?— or billion? they have different fiuures in or billion? they have different figures in different _ figures in different assessments. there are billions of dollars, and when you account for her ability, that has to have a long... it should be more consensus.— has to have a long... it should be more consensus. why's it so exnensive _ be more consensus. why's it so exnensive to — be more consensus. why's it so expensive to get _ be more consensus. why's it so expensive to get a _ be more consensus. why's it so expensive to get a hold - be more consensus. why's it so expensive to get a hold of - be more consensus. why's it so expensive to get a hold of thatl expensive to get a hold of that money for a country the maldives?— maldives? the way it is provided _ maldives? the way it is provided with - maldives? the way it is provided with the - maldives? the way it is| provided with the height maldives? the way it is - provided with the height higher interest rate, it's unaffordable that's the case. most the small countries, we've got quite a lot to do. but don't make the current development that we have two be another reason not to provide the finances, because in the first place, the investment for different measures. put the inevitability to be part of measurements to provide the financing. a country iiike measurements to provide the financing. a country— financing. a country like the maldives — financing. a country like the maldives and _ financing. a country like the maldives and other- financing. a country like the i maldives and other developing states that are meeting here heavily depend on tourism for

their economy. does that need to change? does that look —— what does that look like? we have financial _ what does that look like? - have financial incentives, they've got... plus we would be coming up with agricultural development which would produce on the expenditure that we are doing as well. that would again give means to do the repayment of what we are asking for. these vulnerable islands' states remain on the flight against climate change, but financial change at home and abroad could severe their future. just a reminder of our top story— china has launched a fun worth $47 billion. we'll be back with more in the next hour. bye for now.

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