logo
Semiconductor Sector To Benefit From Supply Chain Focus In 13MP

Semiconductor Sector To Benefit From Supply Chain Focus In 13MP

Barnama3 days ago
BUSINESS
By Anas Abu Hassan & Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, July 29 (Bernama) – Malaysia's semiconductor industry is poised to benefit from the upcoming 13th Malaysia Plan (13MP), as the government seeks to strengthen the country's role in the global supply chain.
UniKL Business School economic analyst Associate Professor Dr Aimi Zulhazmi Abdul Rashid said the five-year plan comes at a pivotal time, amid shifting global trade patterns driven by geopolitical tensions and protectionist measures such as the United States' tariff policies.
'The semiconductor industry, which is the largest contributor within the manufacturing sector, is expected to spearhead Malaysia's climb up the global value chain.
'In light of current US tariff headwinds, it is critical to position Malaysian manufacturers as key global players,' he told Bernama in an exclusive interview.
Aimi Zulhazmi said the 13MP should also outline clear strategies to advance Malaysia as a producer of high-end chips for artificial intelligence (AI) and advanced electronics.
He added that the plan must align with the New Industrial Master Plan (NIMP) 2030, which targets a six per cent growth in manufacturing's contribution to gross domestic product (GDP), particularly through exports.
Boosting National Competitiveness
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Tech sector set for rebound on policy boost, US tariff cut
Tech sector set for rebound on policy boost, US tariff cut

New Straits Times

time2 minutes ago

  • New Straits Times

Tech sector set for rebound on policy boost, US tariff cut

KUALA LUMPUR: The local technology sector is poised for renewed investor interest as sentiment improves, buoyed by supportive policies under the 13th Malaysia Plan (13MP) and the United States (US)-Malaysia tariff agreement. Public Investment Bank Bhd (PublicInvest) said under the 13MP, the government aims to transform Malaysia into an inclusive and sustainable artificial intelligence (AI) nation by 2030 and position the country as a regional hub for digital technology manufacturing. It said the cornerstone of the plan is to nearly double the export value of electrical and electronic products to RM1tln by 2030, supported by the implementation of the High-Value High-Tech Semiconductor Industry Flagship Project. "As part of the National Semiconductor Strategy, the government has allocated RM2 billion—half of which will go toward the deal to expedite chip design development, while the remaining half will serve as matching grants for local research and development initiatives. "Under the strategic plan, the government aims to secure at least RM500 billion in domestic and foreign investments as well as the training and upskilling of 60,000 high skilled engineers to support the semiconductor industry," it said in a note. Meanwhile, PublicInvest said sentiment is likely to be further boosted by the reduction in US-Malaysia tariff, easing concerns for the prospects of local technology companies with substantial exposure to the US market. This includes SKP Resources Bhd, VS Industry Bhd, Greatech Technology Bhd and Inari Amertron Bhd, the firm said. On a more positive note, PublicInvest said the 19 per cent tariff rate for Malaysia is even lower than Taiwan's 20 per cent. "However, we anticipate a mixed set of results this month, as the sector faces headwinds from a softer US dollar and frontloading activities," it said, maintaining an "Overweight" rating on the sector.

Hajiji urges Sabahans to strengthen unity through shared spaces
Hajiji urges Sabahans to strengthen unity through shared spaces

The Sun

time2 minutes ago

  • The Sun

Hajiji urges Sabahans to strengthen unity through shared spaces

KOTA KINABALU: Chief Minister Datuk Seri Hajiji Noor has urged Sabahans to use shared spaces—schools, workplaces, and digital platforms—to foster unity rather than division. Speaking at the launch of the National Month, Sabah Day, and Fly the Jalur Gemilang campaign 2025, he stressed that preserving harmony is a collective responsibility. 'Sabah's strength lies in its unity amid ethnic and religious diversity. This uniqueness should be a source of pride,' Hajiji said. The event was attended by state ministers, federal officials, and agency representatives. He framed the celebrations as a reminder of past sacrifices for independence, which he said extends beyond colonial liberation to overcoming poverty and division. On development, Hajiji noted the Sabah Maju Jaya (SMJ) Plan 1.0 has achieved a 94% implementation rate across 467 initiatives as of May 2025. Priority sectors include agriculture, industry, and tourism, alongside human capital and infrastructure. Public aid programs, such as education access and the Sabah People's Protection Insurance Scheme, were also highlighted. The event concluded with the Sabah-level Kembara Merdeka Jalur Gemilang convoy launch, covering 2,500 km across 27 districts over 20 days. - Bernama

US tariff set to shift Indochina economic balance with Myanmar and Laos worst hit
US tariff set to shift Indochina economic balance with Myanmar and Laos worst hit

The Star

time13 minutes ago

  • The Star

US tariff set to shift Indochina economic balance with Myanmar and Laos worst hit

A rice vendor waits for customers at his shop in Vientiane on October 8, 2024. Landlocked Laos -- a country of only eight million -- has a gloomy outlook as it counts down to a August 1, 2025 deadline when Trump says a 40 per cent levy will kick in unless a trade deal is sealed. - AFP VIENTIANE/PHNOM PENH (Bernama): The United States' newly announced tariff structure is set to reshape South-East Asia's economic landscape, offering some relief to Vietnam and Cambodia while posing steep challenges for struggling Myanmar and Laos. Under its latest Executive Order, "Further Modifying the Reciprocal Tariff Rates,' Washington cut levies on Cambodian exports to 19 per cent from 36 per cent, a modest reprieve for Phnom Penh as it works to rebuild investor confidence and stabilise the country following its July 28 ceasefire with Thailand. Cambodian political economist Dr Darin Duch said the kingdom, even amid global uncertainties, has many factories that are still operating, a sign that investor confidence remains steady. "In a competitive landscape, ensuring that each one of Cambodia's competing neighbours continues to produce garments, travel goods, and bicycles for which Cambodia has already established a very efficient supply chain, Cambodia will remain competitive as a cost-effective and resilient manufacturing and sourcing base,' he told Bernama. He said Cambodia's young and cheap workforce, better logistics and infrastructure, and trade environment will work in its favour as manufacturers around the world look for stable and efficient supply chains. US President Donald Trump's "Liberation Day' tariff policy, however, is likely to choke Myanmar and Laos, which are facing a staggering 40 per cent tariff-the highest in the Aseqan region. Vietnam, the rising economic powerhouse in Asean, will face a 20 per cent export levy, much less than the 46 per cent tariff imposed earlier. Myanmar with its political instability and natural disasters such as typhoons and earthquakes will struggle to navigate its economic woes. The World Bank has forecast that Myanmar's gross domestic product growth this year will contract by 2.5 per cent following the huge earthquake that rocked the nation in March this year, which destroyed supply chains, farmlands, factories, and livelihoods. "The high tariffs on Myanmar and Laos would probably cut into their export competitiveness, making production costlier and less attractive to global buyers. "It may cause investment and production to move into friendlier countries with lower tariffs or a more favourable climate for business,' said Darin. Myanmar, already facing American sanctions since the military coup on February 1, 2021, mostly exports textiles and consumer goods to the US. Its exports were only RM2.8 billion (US$657 million) in 2024, but the US remains an important market for the country. Myanmar is preparing to hold its national elections in December this year. Landlocked Laos exports agricultural products, especially Lao coffee, textiles, and light manufacturing goods to the US market. Laos's exports were RM3.4 billion (US$803 million) in 2024. Like Myanmar, Laos also suffers from natural calamities. Typhoon Wipha swept across the country this week, destroying over 2,000 homes and agricultural land in the provinces. - Bernama

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store