Opinion

Nation’s competitive edge: 13th Malaysia Plan to sharpen with high-value manufacturing

Economists say strategic focus on semiconductors, digitalisation and automation will position Malaysia as a key regional hub

Updated 1 year ago · Published on 22 Jul 2025 10:50AM

Nation’s competitive edge: 13th Malaysia Plan to sharpen with high-value manufacturing
Plan should prioritise the development of the semiconductor value chain and bolster the resilience of regional supply chains - July 22, 2025

THE 13th Malaysia Plan (13MP), due to be tabled in Parliament on 31 July, is expected to strengthen the country’s global competitiveness by advancing high-value manufacturing and technology sectors, according to leading economists.

Bernama reported Dr Ahmed Razman Abdul Latiff, Associate Professor at Putra Business School, describing the five-year strategic plan (2026–2030) as an opportunity to stimulate both domestic and foreign investment through targeted policy reforms and business-friendly incentives.

“The 13MP can position Malaysia as a leader by leveraging existing strengths in manufacturing and semiconductors, driving regional integration through ASEAN frameworks and adopting strategic regional positioning,” he said.

He added that the plan should prioritise the development of the semiconductor value chain and bolster the resilience of regional supply chains while maintaining a commitment to sustainability and inclusivity among local businesses.

Dr Ahmed Razman also underscored the importance of accelerating automation and digital transformation, including investment in digital infrastructure, incentives for technology adoption, support for workforce transitions, and robust cybersecurity and data governance.

Echoing these views, Professor Dr Yeah Kim Leng of Sunway University said the 13MP should establish a conducive environment for free markets and private sector-led innovation, particularly as Malaysia moves closer to attaining high-income nation status, as defined by the World Bank, during the plan’s implementation period.

“The ongoing expansion of high-value and advanced manufacturing and services will be a key driver of this transition,” said Yeah.

He noted that recent increases in foreign direct investment (FDI) have enhanced Malaysia’s competitiveness, particularly in semiconductors, data centres, and other high-tech sectors aligned with the Fourth Industrial Revolution (Industry 4.0).

“In addition to semiconductors and data centres, industries such as artificial intelligence, renewable energy, carbon capture and storage, medical devices and pharmaceuticals are also expected to benefit from structural support under the 13MP,” he said.

Yeah added that the plan should also address rising demand for more sophisticated and higher-quality services in finance, education, healthcare and aged care — sectors critical to supporting Malaysia’s economic evolution over the next five years. - July 22, 2025

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