Malaysia's National Semiconductor Strategy Attracts RM63 Billion in Investments, Bursa Tech Index Rises

The Bursa Malaysia Technology Index rose 0.04 points to 52.36, while other sectoral indices remained negative. This comes after Prime Minister Datuk Seri Anwar Ibrahim announced that the National Semiconductor Strategy has attracted RM63 billion in investments, including RM58 billion in foreign direct investments and RM5.2 billion in domestic direct investments. CIMB affirms that this positions Malaysia as a neutral, indispensable node in the global chip supply chain.

Title: Malaysia's Semiconductor Strategy Attracts RM63 Billion in Investments

The Bursa Malaysia Technology Index rose 0.04 points to 52.36, while other sectoral indices remained negative. This positive development comes in the wake of Prime Minister Datuk Seri Anwar Ibrahim's announcement that the National Semiconductor Strategy (NSS) has attracted RM63 billion in investments, including RM58 billion in foreign direct investments and RM5.2 billion in domestic direct investments. This significant influx of capital positions Malaysia as a neutral, indispensable node in the global chip supply chain [1].

The NSS, launched on May 28, 2024, aims to transform Malaysia into a global powerhouse in the semiconductor industry. The strategy outlines a three-phase plan backed by RM25 billion in fiscal support and targeted incentives. It focuses on attracting significant investments, developing local champions, and nurturing a skilled workforce, particularly in integrated circuit design, advanced packaging, and manufacturing equipment [1].

Prime Minister Anwar Ibrahim highlighted the success of the strategy, noting that as of March 2025, Malaysia has secured investments from notable companies such as Carsem, NXP, Infineon, Syntiant, and Plexus. These investments are expected to contribute to the growth of 13 homegrown companies across the semiconductor value chain, with nine companies projected to generate over RM500 million in revenue this year [1].

The government's efforts to create a robust tech talent pipeline are also underway. A collaboration between CREST and HRD-Corp aims to develop a pipeline of 60,000 engineers by 2030, with an initial allocation of RM1.2 billion over five years. This initiative is crucial given the tight labor market for skilled tech talent [1].

However, geopolitical tensions and the Trump administration's trade policies pose challenges. The White House has announced a 25% import tariff on all Malaysian products entering the US, effective August 1, which could erode Malaysia's price competitiveness, especially in electronics and semiconductor goods. Additionally, the Trump administration is reportedly drafting new AI chip export controls that could limit access to certain high-end chips [2].

Despite these challenges, CIMB affirms that Malaysia's strategic position in the global chip supply chain remains strong. The country is the world's sixth-largest exporter of semiconductors, contributing significantly to global markets. As the semiconductor industry continues to evolve, Malaysia's commitment to innovation and investment in the sector is poised to solidify its standing as a key player [1, 3].

References:
[1] https://www.malaymail.com/news/malaysia/2025/07/24/anwar-govt-has-secured-more-than-rm63b-investments-through-national-semiconductor-strategy-as-of-march-2025/185070
[2] https://finimize.com/content/tech-shares-see-mixed-moves-as-semis-waver-and-c3ai-sinks
[3] https://theedgemalaysia.com/node/762836