Latest news with #MalaysiaSemiconductorIndustryAssociation
The Sun
15 hours ago
- Business
- The Sun
Malaysia navigating global challenges in digital transformation
KUALA LUMPUR: Malaysia is navigating a complex global environment shaped by geopolitical tensions, ongoing trade wars and the impact of tariffs across industries. Despite these challenges, the country is presented with significant opportunities in artificial intelligence, digital transformation and green technologies, requiring a thoughtful balance between risk and potential. Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai stated that Malaysia ranks 16th in global assembly production and 13th in assembly test capacity. 'But alongside these challenges, we also see significant opportunities in AI, digital transformation and green technologies, requiring us to balance both risk and potential thoughtfully,' he said during a panel discussion at the Malaysia Economic Forum 2025 today. In contrast, the global semiconductor market, valued at approximately US$600 billion (RM2.5 trillion) in 2023, is projected to grow rapidly and reach US$1 trillion by 2030, primarily driven by advances in artificial intelligence (AI) and digital transformation. Echoing this sentiment, eCouldvalley Technology Malaysia country director Sandy Woo emphasised that technology, especially digital and ICT, should be seen as a pervasive enabler that shapes lives, conducts business and protects national interests. 'Digitalisation is not just a trend – it is transforming public sector services and driving economic reform. 'We must continue to innovate, embracing tools like e-invoicing and adapting to new taxation landscapes, to strengthen business confidence and position Malaysia as a leader within Asean,' said Woo, who is also the National Tech Association of Malaysia councillor. Both agree that innovation – from digital public services to new taxation tools, such as e-invoicing – is vital to strengthening business confidence and positioning Malaysia as a leader within Asean. Wong said the semiconductor, electronics, and electrical industry in Malaysia, while representing about 1% of specific industry segments, contributes approximately 6% to the country's gross domestic product and supports employment for around 630,000 people, making it a significant sector in the national economy. Kenanga Investment Bank Bhd head of economic research Wan Suhaimie Wan Mohd Saidie said considering the current state of the economic system, it is clear that inflation is not just a temporary phenomenon. 'But rather a structural problem, resulting from a monetary system that is fundamentally engineered to produce inflation – where central banks respond to insufficient money in circulation by printing more, thereby perpetuating this inflationary environment for decades,' he shared. Wan Suhaimie added that if the conflict escalates in the Middle East and oil prices rise above US$80 per barrel – or even reach US$100 per barrel – this would compel governments to incur additional costs. FCA Capital Sdn Bhd chairman Dr Mazlan Ahmad said looking at the current state of globalisation, Malaysia must focus on leveraging and capitalising on its strengths, areas where the country already excel and have the potential to do even better. 'Although we face numerous crises globally, such as recent events in Iran and Ukraine, I choose to view these challenges as opportunities. Malaysia has the potential to become a haven for investment, business dealings, and education, as well as a destination for training and more. 'By fully exploring and utilising these abundant resources, I am confident that Malaysians will be able to secure a prosperous future – one where financial hardship and reliance on bank loans are minimised,' he said.
The Star
3 days ago
- Business
- The Star
E&E growth spurs call for stronger R&D
KUALA LUMPUR: Malaysia has enjoyed strong investment growth in the electrical and electronics (E&E) sector over the past four years, but more needs to be done to strengthen its research and development (R&D) capabilities – particularly in product innovation – to move up the value chain. Malaysia Semiconductor Industry Association (MSIA) executive director Andrew Chan Yik Hong said Malaysia continues to be the preferred investment destination for the E&E sector. 'The proof is in the pudding. Approved investments for the E&E sector in Malaysia from 2021 to 2024 total RM319bil. 'This is more than the investments secured in the past 41 years, from 1980 to 2020, of RM289bil,' he said during a panel discussion titled 'From Production Hub to Innovation Powerhouse: Strengthening Malaysia's E&E Industry' at Bank Negara's Sasana Symposium 2025 yesterday. STMicroelectronics Malaysia group vice- president and general manager Tan Chun Sheng described R&D as the 'crown jewel' of the semiconductor business and stressed the need for a change in the types of incentives offered, moving away from merely tax incentives. He believes the government should redirect support toward firms' R&D efforts in the form of grants and wage supplements. 'We are very good at manufacturing-related R&D. However, let us move up the value chain in terms of R&D, because that is what makes the country an attractive and vital part of the supply chain,' he said. Tan suggested the government consider taxing multinational corporations and ploughing back the revenue into R&D grants and incentives. 'We have always talked about the need for higher wages in the the government needs to do is declare that anyone involved in science, technology, engineering, and mathematics or R&D will receive wage supplements. Instantly, the wages will go up. 'But where will the money come from for this? Taxation,' he added. Citing South Korea, Kolon Industries senior technology adviser Sung Han said the government there offers significant tax incentives to firms across various industrial sectors based on their R&D investments. 'I think this is critically important because it incentivises talent development and drives the innovation that must happen within the R&D space, rather than just on the manufacturing floor,' he said. He also highlighted the strong public-private partnerships in Korea, where much of the R&D is government-funded, creating an environment that continuously fuels innovation across industries like semiconductors and automotive. 'What South Korean companies like Samsung Electronics Co Ltd and SK Hynix Inc have done to move up the value chain is not just developing semiconductor-related materials needed for production – because companies can't decouple material characteristics from IC (integrated circuit) design – but they have also built up local suppliers for materials and production tools. 'Today, for a few critical tools in leading-edge nodes, local Korean companies can supply many of those tools and materials. This creates the infrastructure necessary for the sector to become independent in developing and conducting its own R&D on new next-generation products. 'I think this is what Malaysia may be missing today,' Sung Han added. That said, Tan opined that Malaysia's semiconductor sector does not necessarily have to rely solely on financial incentives such as subsidies or grants from the government to attract investment. In fact, the country already holds several key advantages, chief among them being experience. 'The most important advantage that we have as a country is experience, given that the semiconductor industry has been here for more than 50 years.' He said the second advantage that Malaysia has is talent. 'Our engineers are very talented, with strong technical skills.' When asked why Malaysia has not been successful in attracting leading foundry companies, MSIA's Chan said much of the recent investment surge occurred before the National Semiconductor Strategy (NSS) was introduced. 'I believe that the Malaysian Investment Development Authority had received enquiries on this back then, but somehow the equation did not stack up. 'However, I am optimistic that if we continue to double down on the NSS – the upcycle for semiconductor fabrication plants (fabs) is not now, it is in a couple of years – we will see more fabs, hopefully, in Malaysia,' he said.
The Star
30-05-2025
- Business
- The Star
MSIA voices concern over tariffs
KUALA LUMPUR: The Malaysia Semiconductor Industry Association (MSIA) has released the latest findings from the MSIA Electrical and Electronics (E&E)/ Semiconductor Quarterly Pulse Survey for the first quarter of 2025. This ongoing survey aims to assess the sentiment, trends, challenges and opportunities within Malaysia's E&E or semiconductor industry on a quarterly basis. This quarter's survey is anchored on the implications of United States (US) tariffs, trade policies and international responses — particularly the ongoing investigation under Section 232 of the US Trade Expansion Act of 1962. While most E&E and semiconductor products have not yet been subjected to reciprocal tariffs, they are under review, which has raised alarm across the industry. The key findings are: MSIA members are currently studying the implications of the tariff to their respective companies. Companies surveyed expressed deep concern over what lies ahead. MSIA president Datuk Seri Wong Siew Hai said, 'Frequent changes to tariffs and export controls have disrupted supply chains, increased costs and slowed the global economy. 'These disruptions are expected to lower global demand, which will inevitably impact Malaysia and other major trading nations. 'MSIA is hopeful that the Malaysian Government will be able to negotiate with the United States for more favourable tariff terms — especially in light of Malaysia's five-decade-long contribution to the rise of the US semiconductor giants.' MSIA acknowledges and commends the constructive efforts of the Malaysian Government to defend the nation's interests. MSIA is actively engaging with relevant ministries and agencies to ensure the industry's concerns and recommendations are well represented in negotiations with the US.
The Star
27-05-2025
- Business
- The Star
Semiconductor industry experts brainstorm on sanctions compliance
Some of the participants at the industry engagement event to exchange insights on the practical realities of sanctions compliance. SANCTIONS compliance has emerged as one of the top three operational challenges for semiconductor companies, according to the majority of participants at an industry engagement. The recent event titled 'Strengthening Sanctions Compliance in the Global Semiconductor Sector' was jointly organised by Malaysia Semiconductor Industry Association (MSIA) and Deloitte. It brought together industry leaders and trade compliance experts in Penang to explore the increasing complexity of international sanctions regimes and their implications for the Malaysian semiconductor sector. The symposium provided a timely platform for stakeholders to exchange insights on the practical realities of sanctions compliance. Participants highlighted key concerns around export controls, dual-use technologies, supply chain transparency, and end-use or end-user monitoring. Key industry representatives and trade compliance specialists discussed how the Malaysian semiconductor sector could better navigate the increasingly complex environment shaped by international sanctions regimes. Industry leaders shared first-hand insights on operational realities, barriers to legitimate trade and the need for enhanced collaboration between industry and government to ensure compliance frameworks were effective, clear and actionable. The insights gathered will contribute to the development of practical guidance to improve industry understanding, enhance supply chain resilience and support global trade. Deloitte partner and forensic head Jules Colborne-Baber said sanctions compliance had become an operational imperative for the semiconductor sector globally. 'Today's dialogue in Penang demonstrates the industry's commitment to managing compliance risks proactively while continuing to drive innovation and competitiveness. 'Deloitte is proud to support this important conversation, helping to ensure that compliance frameworks are both effective and workable across global supply chains.' Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai said Malaysia's semiconductor industry must be both competitive and compliant to thrive globally. 'As trade rules evolve, so must our readiness. This collaboration with Deloitte strengthens our industry's ability to meet global standards and reinforces Malaysia's position as a trusted, forward-looking technology hub,' he said.
New Straits Times
16-05-2025
- Business
- New Straits Times
Semiconductor, E&E firms pressured by US tariff: MSIA
KUALA LUMPUR: Malaysia's semiconductor and electrical and electronics (E&E) companies will not be able to absorb the United States' (US) tariff implications or maintain prices for US customers, according to the Malaysia Semiconductor Industry Association (MSIA). Findings from the MSIA E&E/Semiconductor Quarterly Pulse Survey for the first quarter of 2025 revealed that 74 per cent of the respondents agreed that US policy and tariff will deter investments and weaken Malaysia's attractiveness, while 65 per cent said they will impact Malaysia's E&E industry negatively over the next 12 months. The quarterly ongoing survey, conducted among more than 300 members, assesses the sentiment, trends, challenges, and opportunities within Malaysia's E&E and semiconductor industry. It is anchored on the implications of US tariffs, trade policies, and international responses, particularly the ongoing investigation under Section 232 of the US Trade Expansion Act of 1962. In a statement, MSIA president Datuk Seri Wong Siew Hai said frequent tariff changes and export controls have disrupted supply chains, increased costs, and slowed the global economy. "These disruptions are expected to lower global demand, inevitably impacting Malaysia and other major trading nations. "MSIA is hopeful that the government will be able to negotiate with the US for more favourable tariff terms, especially in light of Malaysia's five-decade-long contribution to the rise of US semiconductor giants," he said. "MSIA acknowledges and commends constructive government efforts to defend the nation's interests, and actively engages with relevant ministries and agencies to ensure the industry's concerns and recommendations are well-represented in negotiations with the US," it said.
