Malaysia’s semiconductor industry is solidifying its reputation as a key regional partner in manufacturing, trade, and innovation, Prime Minister Datuk Seri Anwar Ibrahim announced.
Speaking at the 29th International Conference on The Future of Asia, Anwar emphasised Malaysia’s strong position as the world’s sixth-largest exporter of semiconductors, highlighting the nation’s robust manufacturing base in the global electronics and electrical industry.
Amid escalating global tensions and trade restrictions in the microchip sector, Anwar underscored Malaysia’s appeal due to its stability, skilled labor force, and economic and geopolitical nonalignment.
Anwar emphasised that Malaysia stands as a safe haven for investors citing the impressive foreign direct investment (FDI) figures for Penang. In 2023, Penang attracted US$13 billion (RM61 billion) in FDI, surpassing the total for the previous seven years combined.
Anwar noted Malaysia’s strategic focus on advanced semiconductor activities, including wafer fabrication, integrated circuit design, and advanced packaging. This focus aims to position Malaysia at the forefront of the semiconductor industry.
During his speech, Anwar acknowledged Japan’s significant role in Malaysia’s economic development. He recalled the early days of the electronics and electrical industry in Penang during the 1970s, when Japanese companies like Clarion and Hitachi were part of the “Eight Samurai,” the first wave of E&E manufacturing investments in Malaysia. He highlighted the continued importance of Japanese FDI, mentioning recent investments from Kaga Electronics and Ferrotec.
Anwar also emphasised the strong relationship between Malaysia and Japan, which was recently elevated to a Comprehensive Strategic Partnership. He noted their shared vision for Asia’s future based on stability, connectivity, and cooperation in a rules-based order.
“Prime Minister Kishida and I had two summit meetings in November and December, culminating in the upgrading of our bilateral relationship to a Comprehensive Strategic Partnership. We also expanded our cooperation into the realm of security, collaborating in the maritime security sphere,” he added.
Japan has been Malaysia’s fourth-largest trading partner for nine consecutive years, with total trade between the two countries valued at RM156.64 billion in 2023.
Anwar outlined Malaysia’s ongoing efforts to enhance capabilities in various sectors, including chemicals, aerospace, pharmaceuticals, medical devices, the digital economy, electric vehicles, advanced materials, and agro-based industries. He highlighted Malaysia’s openness to trade and investment across manufacturing, services, and the primary sector. In 2023, Malaysia’s FDI performance saw a 15% increase from the previous year, with approved foreign investments reaching RM188 billion.
The prime minister’s remarks at the conference reaffirmed Malaysia’s commitment to fostering a conducive environment for investment and innovation, reinforcing its role as a crucial player in the global semiconductor industry.
