The Prime Minister will announce key strategies to revitalize the Msia semiconductor sector

KUALA LUMPUR: The global reach of the Malaysian semiconductor sector promises to be exponential, with key initiatives to be unveiled by Prime Minister Datuk Seri Anwar Ibrahim, said Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz

Speaking to reporters after the opening of SEMICON Southeast Asia 2024 today, he said these initiatives will strengthen Malaysia’s position in the semiconductor space, highlighting the importance of semiconductors and the role Malaysia can play in the global value chain.

Tengku Zafrul noted the need to seize the current opportunity to make Malaysia a true semiconductor powerhouse and regional manufacturing hub, stressing the importance of attracting more investments to accelerate Malaysia’s progress in the global value chain.

He shared that over the past 18 months, Malaysia has attracted the attention of some of the world’s largest and most cutting-edge electronics companies, including industry giants such as Intel, GlobalFoundries, Infineon and Newas.

Tengku Zafrul said that as the world stands at the threshold of another technological revolution powered by artificial intelligence (AI), the future lies not only in chip assembly and testing, but more in the exciting realm of innovation and design.

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He noted that Malaysia is exceptionally well-positioned to capitalize on this historic opportunity thanks to its strong value proposition, which includes world-class manufacturing facilities, innovative R&D centers, a highly skilled workforce, attractive incentives and modern infrastructure.

At the same time, the country is upgrading its logistics infrastructure to support the semiconductor industry through a RM1.5 billion expansion of Penang International Airport, scheduled for completion in 2028.

It also established a National Strategic Semiconductor Task Force to guide improvements in incentives, talent and other key elements supporting the industry’s development and growth to attract foreign and domestic investment.

The country is also focused on identifying key actions that will lay the foundations for the sustainable development of the industry.

This includes developing a robust renewable energy supply and implementing local supplier development programs to create opportunities for local businesses and small and medium-sized enterprises, thereby supporting a vibrant, inclusive and sustainable industrial ecosystem, he said.

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“I would like to reiterate that the stronger macroeconomic outlook for 2024 signals a positive trend in the global technological recovery.

“This is evidenced by the projected growth in key economic indicators, coupled with lower trends in inflation and unemployment rates, as well as improved prospects for the ringgit,” he said.

Tengku Zafrul added that the achievement of securing approved investments worth RM329.5 billion last year demonstrates growing confidence in Malaysia’s economic stability and growth potential.