Seizing the Next Wave of E&E Investment into Malaysia
15 Sep 2021
Malaysia Remains an Attractive Location For Semiconductor And E&E Companies
Kuala Lumpur, 15 September 2021 – The Malaysian Investment Development Authority (MIDA) and the Malaysia Semiconductor Industry Association (MSIA) hosted a webinar today on ‘Seizing the Next Wave of E&E Investment into Malaysia’. The webinar, which was broadcasted online, successfully attracted more than 350 participants, represented by manufacturers, service providers and potential investors.
Dato’ Seri Wong Siew Hai, President of MSIA welcomed the attendees and iterated that the webinar was important to emphasise that Malaysia is open-for-business, with continued and sustained discussions between the Government and electrical and electronics (E&E) companies to improve the ease of doing business in the country. This is part of the efforts to make Malaysia more competitive in the E&E sector and move up the global value chain.
Presently, Malaysia stands as a crucial global hub in the semiconductor global supply chain, with approximately seven (7) per cent of the total global semiconductor trade flowing through the nation. In 2020, the E&E exports recorded RM386 billion, accounting for 39.4 per cent of Malaysia’s total exports.
Mr. Arham Abdul Rahman, the Chief Executive Officer (CEO) of MIDA, in his Keynote Address highlighted the need for Malaysia to be in the forefront in seizing opportunities in the E&E, particularly the semiconductor segment. This is especially important as more global companies are seeking to capitalise on Malaysia to develop new technologies, venture into additional products and ramp up production capacities to meet the growing needs and demands of the industry.
“Malaysia welcomes investments of complex and high value-added products, intensification of R&D activities, adoption of digitalisation and new technologies. Malaysian companies are encouraged to participate in the greater E&E value chain, especially in closing the ecosystem gaps, such as in IC design, advanced IC packaging, engineering and testing services, as well as Electronic Manufacturing Services (EMS),” said Mr. Arham.
“Towards this, various stimulus packages, namely PENJANA were introduced to continue supporting new and existing industry players and promoting the development of industries in Malaysia. These massive allocations are necessary to help businesses and industries to retain workers, meet market demands and remain operational beyond the current economic climate. We are optimistic that these measures will solidify Malaysia’s position as a competitive and profitable investment destination in line with our National Investment Aspirations (NIA). In this regard, industry players are strongly urged to take the full advantage of all the packages available, particularly those offered through MIDA to facilitate investments and businesses.”
The webinar featured an expert forum between Mr. Arham; Mr. Gursharan Singh, Senior Vice President for Global Assembly and Test of Micron Technology; Mr. Ng Kok Tiong, Senior Vice President and Managing Director of Infineon Technologies Kulim Sdn. Bhd.; and Mr. Yogannaidu Sivanchalam, Country Managing Director of Texas Instruments Malaysia Sdn. Bhd. The panel was moderated by Dato’ P’ng Soo Hong, Vice President and Managing Director of Manufacturing Operations at First Solar Malaysia Sdn. Bhd.
Mr. Yogannaidu from Texas Instruments Malaysia remarked, “Given the long-term trend of semiconductors growth in electronics, and the fact that manufacturing is the main engine of Malaysia’s economic growth, the Government and industry players must seize this opportunity by improving Malaysia’s attractiveness as a global E&E investment destination.” Over its nearly 50-year history in Malaysia, Texas Instruments Malaysia has created thousands of jobs, including hiring graduates from local universities.
Drawing from Infineon’s 47 years in Malaysia, with activities comprising of wafer fabrication, assembly, test and R&D facilities, Mr. Ng Kok Tiong shared, “Malaysia has cost advantages and supportive economic environment, which continue to be very attractive for Infineon to expand its existing operations and R&D capabilities in new technologies. We are confident that our long-term presence will continue to position Malaysia in enhancing its global semiconductors supply chain hub.”
Mr. Gursharan Singh elaborated on Micron’s steady growth in Malaysia since 2018, “In the last decade, Malaysia has become critical to our global manufacturing footprint. Despite the pandemic, we have successfully established two facilities in two years in Seberang Perai (2019) and Batu Kawan (2020), Penang. With 99 per cent of our workforce recruited locally, Micron will continue to generate employment with our continued growth, and deeply engage in the communities where we operate.” Currently, with close to 4,000 team members, Micron, the global leader in memory and storage, plans to generate another 2,000 jobs over the next three (3) to four (4) years in Malaysia.
Companies interested to leverage Malaysia to establish their E&E operations may engage with MIDA’s E&E Division through www.mida.gov.my.
MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube.
Malaysia Semiconductor Industry Association (MSIA) is an industry association which cover individuals and companies incorporated in Malaysia who are involved directly or related to Semiconductor Industry (Electronics and Systems), Semiconductor Industry supply chain, institutions providing significant related services to semiconductor industry such as engineering, finance, legal and those societies, associations, chambers and government – linked agencies. For more information, please visit http://www.msia.org.my.
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