FILE PHOTO: Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/Illustration/File Photo
KUALA LUMPUR: Forty-four per cent of companies in the electrical and electronics (E&E) and semiconductor industry are optimistic about their business performance in the first quarter of 2025 (1Q 2025), reflecting continued positive sentiment, according to a survey.
The Malaysia Semiconductor Industry Association (MSIA) said its E&E/Semiconductor Quarterly Pulse Survey for 4Q 2024 indicated that the companies projected slightly lower optimism compared to previous quarters (53 per cent in 3Q 2024 and 60 per cent in 2Q 2024).
"For 2025, 66 per cent of companies have expressed optimism in the overall outlook, similar to previous quarters. There is uncertainty over the short term but companies are more optimistic in the medium to long term,” MSIA said in a statement today.
The report also revealed that 37 per cent of companies surveyed reported better business performance in 4Q 2024 compared to 3Q 2024. Performance was not as strong as in previous quarters (46 per cent in 3Q 2024 and 39 per cent in 2Q 2024).
Additionally, 72 per cent of companies are hiring engineers and technicians in 1Q 2025, indicating a sustained hiring momentum from previous quarters.
Meanwhile, 44 per cent are optimistic about their 1Q 2025 investment outlook, a marginal decline in sentiment compared to earlier quarters, 52 per cent in 3Q 2024 and 58 per cent in 2Q 2024.
On the United States-China semiconductor policies and their impact, MSIA said 57 per cent of companies see opportunities for Malaysia amid the continued escalation of the US-China chip war.
The association emphasised the need for Malaysia to diversify its semiconductor markets and its supply chain, and focus on talent development to remain competitive and resilient in light of ongoing geopolitical tensions.
Commenting on the 4Q 2024 survey results, MSIA president Datuk Seri Wong Siew Hai said 2024 was a pivotal year with the launch of the National Semiconductor Strategy (NSS) in May.
"This strategic initiative underscores Malaysia's commitment to staying ahead of global competition with a focus on our capabilities and expertise in key areas like integrated circuit (IC) design, semiconductor equipment, and advanced packaging,” he said.
Wong also noted that MSIA’s proactive support for the NSS via initiatives like the MSIA Advanced Technology Equipment Cluster (MATEC), an industry-driven effort to bolster Malaysia's technological advantage.
He also said the survey results reveal that 2025 will bring significant challenges for the Malaysian semiconductor industry, including talent shortages, market competition, and external geopolitical pressures.
"Despite these headwinds, the industry remains steadfast and prepared, leveraging innovation, collaboration, and strategic planning to turn challenges into opportunities and maintain its competitive edge,” he added. - Bernama
