KUALA LUMPUR: The initiative to elevate manufacturing up the value chain will place Malaysia at the forefront of the semiconductor business, stated Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.
He stated this move presents a possibility for Malaysia to play a pivotal function within the world provide chain, particularly amid the commerce tensions between the US and China as firms are reconfiguring their provide chains.
“The semiconductor business considerably influences the worldwide provide chain. We have noticed the realignment and redefinition of provide chains.
“As firms try to turn into extra aggressive and safe their provide traces, the semiconductor business is poised for continued progress,“ he stated at the Bursa Malaysia-Hong Leong Investment Bank Stratum Focus Series XVII on “Semicon: Light at the End of the Tunnel?” in the present day.
Tengku Zafrul stated Malaysia can and will leverage its mature industrial infrastructure with good connectivity, rule of legislation, strategic location and ease of doing enterprise to additional combine ourselves into the worldwide semiconductor value chain.
”This is a vital second for Malaysia, and we should seize this second to guarantee resilience and progress in our electrical and electronics sector,” he stated.
Furthermore, he stated, transitioning to superior packaging within the semiconductor business calls for substantial capital expenditure, which poses a problem given the present fiscal constraints.
The move, whereas promising for technological development, would necessitate important authorities assist and financial backing.
“Advanced packaging requires very excessive capex, so this will additionally seemingly require so much of assist, which we could not have the fiscal house at this time limit. Hence, we want to be aggressive, however we want to be at the identical time utilizing our aggressive benefit,” he stated.
The Asia-Pacific semiconductor market dimension was estimated at virtually US$288 billion in 2023 and is forecast to attain US$612 billion by 2033, rising at a compound annual progress price of 7.83% from 2024 to 2033.
The world semiconductor business is predicted to attain US$1 trillion by 2030.
Tengku Zafrul stated the federal government is assured with the sturdy basis within the semiconductor business, Malaysia is usually a true semiconductor powerhouse not simply in meeting, but additionally in innovation and design.
At a separate perform in the present day, Tengku Zafrul commented that Google’s newest funding highlights Malaysia’s competitiveness, ease of doing enterprise and rising significance as a regional hub for digital innovation.
He stated the funding recognises the nation’s potential to lead the area’s digital financial system.
“This is especially pertinent as Malaysia intends to strongly promote the digital financial system regionally after we take up the Asean chairmanship subsequent 12 months.
“Google’s presence will not solely create 1000’s of high-skilled jobs but additionally speed up the digital transformation of our companies and public sector, strengthening our tech management and supporting Malaysia’s positioning as a tech hub in Southeast Asia,” he stated at Google Cloud Malaysia Day.
Tengku Zafrul stated this funding serves as a powerful basis for Malaysia to embrace the cloud as a springboard for its operations and enterprise innovation, unlocking alternatives and contributing to the expansion and prosperity of the Malaysian financial system.
He stated digitalisation and synthetic intelligence (AI), amongst others, are key to shaping a sustainable and inclusive socio-economic future, and the cloud is our gateway to that promising horizon.
He added that the Madani authorities recognises the transformative energy of digitalisation, cloud computing and AI, making them key drivers in our financial roadmaps, such because the New Industrial Master Plan 2030 (NIMP 2030).
“We perceive that investing in cloud infrastructure and fostering a digital-first mindset is important for making a sustainable and affluent future for our nation,” he stated.
Tengku Zafrul stated the optimistic and deep impression of cloud applied sciences on the Malaysian financial system is evident.
It boosts productiveness and creates high-skilled jobs, he added.
Malaysia has seen a surge in effectivity and innovation as industries leverage cloud-based options to streamline operations, automate duties and acquire beneficial insights from knowledge.
The manufacturing sector, particularly, has embraced cloud-enabled applied sciences to optimise provide chains, monitor tools efficiency and enhance manufacturing effectivity.
“The healthcare business has additionally seen important advantages, with hospitals leveraging cloud know-how to enhance affected person care, handle digital medical data and facilitate telemedicine providers.
“These developments not solely drive productiveness by leveraging data-driven insights but additionally create demand for high-skilled professionals in areas like knowledge analytics, software program improvement and cloud structure,” stated Tengku Zafrul. – eNM
