PENANG Chief Minister Chow Kon Yeow has called on the federal government to form a national coordination body to oversee the semiconductor industry.
Considering the sector may be undermined by the imposition of tariffs by the United States, Chow said that a comprehensive coordinating body is needed to improve efficiency and ensure the effective rollout of national strategies, including the National Semiconductor Strategy (NSS).
He was addressing guests at the recent Malaysia Semiconductor Industry Association (MSIA) Independence Celebration 2025 in Kuala Lumpur.
Chow stressed that the body could streamline overlapping functions, monitor delivery, and strengthen accountability across government agencies.
“The best strategies are only as strong as their execution. Perhaps it is time for Malaysia to consider a comprehensive coordinating body that ensures national strategies do not remain as policy documents, but become realities,” he said.
Citing examples, Chow pointed to the US Digital Service, which consolidated oversight of contracts and introduced digital reforms.
“I am not suggesting we copy them, but we can certainly learn, adapt and design something better, transparent, collaborative, and people-centric,” he said.
The event was officiated by Second Finance Minister Datuk Seri Amir Hamzah Azizan.
Penang contributed over RM360 billion in electrical and electronics (E & E) exports last year, which is about one-third of the national output.
While the new age challenges, such as the possibility of a 100% US import tariffs on semiconductors produced overseas, Chow said that the state needs to move up the value chain to consolidate its hold on the industry.
He cited as examples national technology firms ViTrox, Pentamaster and QES, which are expanding into new markets and investing in research and development.
Chow also mentioned that the state is aligning with the NSS target of producing 60,000 skilled engineers by 2030 through initiatives such as the Penang STEM Talent Blueprint, the Penang Chip Design Academy and the upcoming IC Design and Digital Park in Bayan Lepas.
MSIA president Datuk Seri Wong Siew Hai said the semiconductor industry continues to grow despite facing challenges worldwide, especially with the tariffs implemented.
He said MSIA is committed to nurturing local talent to move up the value chain, ensuring Malaysia cements its place among the world’s leading semiconductor nations. - August 27, 2025.
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