9 hours ago
Liew: Move beyond low-end manufacturing
Deputy International Trade and Industry Minister Liew Chin Tong.
KUALA LUMPUR: Malaysia and Singapore must work together to move beyond low-end manufacturing and build a globally competitive supply chain centred on critical minerals as well as frontier technologies, says Deputy Investment, Trade and Industry Minister Liew Chin Tong.
In a keynote address at the Malaysia-Singapore Business Forum 2025, themed 'Building a Globally Competitive Partnership', Liew called on both nations to be more ambitious and align their economic partnership with global shifts in manufacturing, energy and technology.
'When we think about the economy, what do we think about now? We now have to think about critical minerals. Critical minerals are crucial in any production, in any supply chain,' he said.
Liew's remarks came amid reports that the Group of Seven leaders are working on a joint strategy to secure critical mineral supply chains, according to a draft document seen by Reuters.
Both countries should leverage their manufacturing strengths – with the sector contributing over 20% to each nation's gross domestic product – to build a new generation of regional technology champions.
'Combine the capabilities between Malaysia and Singapore, we can do a lot,' he said.
'We should start aspiring to see whether in the next decade, there will be a mini Samsung, mini Huawei or mini Taiwan Semiconductor Manufacturing Co Ltd as well as its associated ecosystem emerging from Malaysia and Singapore,' he added.
He also called on governments and financial institutions across the region to deepen their understanding of emerging technologies and commit capital to long-term industrial strategies.
Liew challenged outdated assumptions around the economy, calling them 'myths' that no longer hold true – including the idea that countries must move from manufacturing to services, that high-income nations can focus solely on design while outsourcing the 'dirty work', and that economies can thrive by being only financial hubs.
During a question and answer session, Liew responded to a question on capital arbitrage – where Asian savings are invested in US treasuries or assets only to be reinvested into Asia via western fund managers.
'Our sovereign funds – Singapore, Malaysia, Brunei – and our capital market, have always focused on the United States market for the longest time.
'But this is exactly why we should start thinking about creating technology companies in Malaysia and Singapore and combine companies that will tap into the capital markets in Malaysia and Singapore as well as other parts of Asia to create a new generation of technology companies for our nations,' he said.
