MAR 30 — Prime Minister Datuk Seri Anwar Ibrahim yesterday launched the National Semiconductor Strategy during his speech at the Semicon Southeast Asia 2024. This initiative should be applauded to leapfrog the nation’s semiconductor industry to be the top globally.
With its strong presence in chip assembly, packaging, testing, and electronics manufacturing services , Malaysia has successfully transformed from a predominantly agriculture-based economy in the 1970s, to a more diversified economic structure.The electrical and electronics sector comprises about 7 per cent of Malaysia’s GDP, with semiconductor devices and electronic integrated circuits alone making up a quarter of total exports, totalling RM387 billion in export value in 2022.
In this regard, the recent effort and policy announced by Prime Minister Datuk Seri Anwar Ibrahim is the right move at the right time to boost the semiconductor industry, allowing the country to recover its competitive edge against neighbouring countries. Therefore, by providing an allocation of RM25 billion, the nation will gain the upper hand to lure the big players such as Taiwan Semiconductor and Samsung to establish a pure foundry fab in Malaysia which will bring a large spillover to the people.
Alongside the efforts to move up the value chain in front-end and high value added semiconductor activities, we need to address long-standing issues in the sector, including the brain drain and mismatch problem between industries and universities.
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