(From left) Ding, Lim, Amir, Chow, Wong, Tan and other MSIA board members during a cake-cutting ceremony at the Merdeka celebration.
CURRENT geopolitical tensions and global supply chain diversification have produced a huge opportunity for Malaysia to propel its electrical and electronics (E&E) industry forward.
National-level blueprints like the New Industrial Master Plan (NIMP) 2030 and the National Semiconductor Strategy (NSS) will allow the country to capitalise on it, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
While the NIMP provides a holistic approach to industrial development, the NSS employs a three-phase strategy to position the country as a global semiconductor hub.
“The first phase builds on our strong foundations and focuses on moving the local sector further up the value chain from Outsourced Semiconductor Assembly and Test (OSAT) to fabrication, design and equipment manufacturing,” he said.
Amir said the government was working to attract some RM500bil in investments for Malaysian industrial parks.
The second phase seeks to shift the frontier to cutting-edge logic and memory chip design, fabrication and testing, as well as directly engaging purchasers of such chips, he said.
This would go hand-in-hand with the goal to establish at least 10 Malaysian companies in design and advanced packaging, with targeted annual revenues of between RM1bil and RM4.7bil, he elaborated.
“Once that is achieved,” said Amir, “the third phase will promote further innovation and develop world-class Malaysian semiconductor design, advanced packaging and manufacturing equipment firms.”
“To further catalyse domestic growth, my ministry is also driving the Government-linked Enterprise Reform and Activation Programme (GEAR-uP) which uses targeted investments.
“The first phase will see six Government-Linked Investment Companies (GLICs) collectively pledging to invest RM120bil domestically over the next five years in high-growth, high- value industries, particularly in sectors such as energy transition and advanced manufacturing, with a specific emphasis on semiconductors.
“It’s not just about increasing production but transforming the semiconductor landscape in Malaysia and building entire ecosystems that stay in the country for a long time.
“The World Semiconductor Trade Statistics forecasts a 16% rise in demand this year. Clearly, the world is ready for us. Let’s seize this opportunity,” said Amir.
This was part of his keynote address at the Malaysia Semiconductor Industry Association (MSIA) Merdeka Celebration 2024 held in Gurney Drive, Penang.
Some 480 guests were in attendance, including Penang Chief Minister Chow Kon Yeow and MSIA president Datuk Seri Wong Siew Hai.
Chow said Penang was well-positioned for further expansion in the E&E sector.
He recently led a trade delegation to the United States and engaged with major global semiconductor companies.
“They showed significant interest in expanding operations or establishing new facilities in Penang, underscoring the state’s appeal as a hub for high-value manufacturing and innovation.
“But we must not get complacent with previous successes. Looking ahead, we must begin departing from the term Made in Malaysia, to Made by Malaysia.
“We have to nurture local startups capable of producing Malaysia’s very own Intellectual Property (IP) such as in chip design,” he added.
In line with NIMP 2030 and NSS, Chow said Penang had taken bold steps to introduce Penang Silicon Design @5km+, a one-of-its-kind flagship hub in Bayan Lepas that aimed to make the state more integral in the global supply chain.
Two of its three components – the IC Design and Digital Park, as well as the Penang Chip Design Academy – have been unveiled so far.
“We expect to launch the Silicon Research and Incubation Space in the third quarter of this year.
“It will be a one-stop centre aimed at supporting chip design startups,” he said.
With the global semiconductor market projected to grow to US$1 trillion (RM4.3 trillion) by 2030, Wong said the race was on for Malaysia to claim its piece of the pie.
“Amid a changing landscape, companies are increasingly adopting a plus-one strategy to diversify and de-risk their supply chains.
“But we must rise to the occasion or risk being overshadowed. For that to happen, a whole-of-nation approach is required. Companies need to step up and seize available opportunities.
“Many countries are also short on talents and thus targeting Malaysians.
“So while we work on inspiring more students to pursue STEM education and re-skilling our workforce, we also need to adopt a similar strategy of tapping into other countries’ talents to help take us to the next level,” added Wong.
Amir, Chow and Wong were later joined by MSIA vice-president I Tan Chun Sheng, vice-president II Datuk Lim Yong Jin and other board members, as well as acting Consul-General of China in Penang Ding Qiao, in a cake- cutting ceremony.
