Malaysia

Industry-academia synergy will place Malaysia as a significant regional semiconductor hub

PM hails Sarawak’s RM3 billion investment and urges balanced AI training grounded in values and ethics

Updated 1 year ago · Published on 12 Sep 2025 1:49PM

Industry-academia synergy will place Malaysia as a significant regional semiconductor hub
High technology—particularly automation and artificial intelligence (AI)—is now a key factor in global semiconductor competitiveness - September 12, 2025

THE nation is on the right track to becoming a regional semiconductor hub, propelled by robust government policies, modern infrastructure, and strong investor confidence, said Prime Minister Datuk Seri Anwar Ibrahim.

Speaking at the inauguration of X-Fab Sarawak’s new building today, Anwar underscored that success in the high-value semiconductor sector depends not only on financial investment, but also on the quality of skilled labour and sustained collaboration between universities and industry players.

"The ecosystem mentioned earlier means having the right workforce, and that remains a major challenge. When we meet semiconductor industry leaders, they often say we have a disciplined workforce," he said.

"However, we must continue the synergy between this industry and universities, so that universities move beyond traditional academic training and towards utilising industry expertise and experience."

He emphasised that high technology—particularly automation and artificial intelligence (AI)—is now a key factor in global semiconductor competitiveness.

Anwar added that support from both the Federal and Sarawak governments, including under the national semiconductor strategy, would further strengthen Malaysia’s position in the global market.

He pointed to a new RM3 billion investment in Sarawak as evidence of growing foreign investor confidence in the state’s leadership in high-tech industry.

On Thursday, at a dinner event with the Sarawak community, Anwar highlighted the need to train young Malaysians in AI and digital technologies—while ensuring they remain grounded in religious, cultural, and ethical values.

"Our children in AI must be trained, first, in technological sophistication—they must master it. Secondly, they must take pride in their religion, culture, and history... so that they can preserve our national identity," he said.

Addressing a crowd that included Sarawak Premier Tan Sri Abang Johari Tun Openg and Deputy Prime Minister Datuk Seri Fadillah Yusof, Anwar stressed that what distinguishes humans from machines is "values, morals, ethics, and character".

He added that the national digital transformation policy must benefit all segments of society, and not create a digital divide between urban elites and rural communities.

"Let’s not allow a digital divide... where the elite have access, but the urban poor, those in villages and the interior, are left behind due to lack of connectivity and facilities," he said.

Anwar called for continuous monitoring of the digital policy’s implementation to ensure that the significant investments being made in technology, computing, and AI yield real productivity gains.

"We are spending heavily on technology, on computers, on IT, and now AI. There must be readiness on our part to assess whether such large spending is translating into real productivity," he noted.

The Prime Minister also underscored political stability and national unity as essential to Malaysia’s economic progress and appeal to investors.

"Imagine if politics were unstable—how could we progress, how could we have confidence? The industry itself wouldn’t have confidence. But Alhamdulillah, this political awareness comes from strong cooperation," he said.

He praised Sarawak’s enduring racial and religious harmony, suggesting the state could serve as a model amid rising social fragmentation seen elsewhere in the country. - September 12, 2025

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