KUALA LUMPUR – Given that the electrical and electronics (E&E) sector contributed 24.7% to the nation’s gross domestic product last year, Putrajaya is ramping up efforts to increase investments in the semiconductor industry.
In a parliamentary reply to the Dewan Rakyat yesterday, the International Trade and Industry Ministry (Miti) said the government’s efforts are focused on encouraging research, development, commercialisation, and innovation, as well as the provision of a highly skilled workforce.
Datuk Seri Tiong King Sing (Bintulu-GPS) had queried the government’s efforts to improve Malaysia’s role in the global semiconductor industry.
Miti said the government is offering incentives in order to further expand the E&E sector, which include:
1. Competitive incentive packages through income tax exemptions;
2. Providing grants under the Domestic Strategic Investment Fund that will help local semiconductor companies improve to the level of an advanced, knowledge-intensive, and innovative industry; and
3. Encouraging local companies to be a part of the global value chain through collaboration programmes with multinational companies that have chosen Malaysia as their regional operation centre.
According to the ministry, the E&E sector achieved 17.1% of approved investments worth RM15.6 billion out of the total RM91.3 billion in approved investments last year.
“The value of trade increased from RM618.7 billion in 2019, to RM638.9 billion last year. Meanwhile, E&E products made up 39.4% of the total percentage of goods exported.”
Malaysia has been one of the leading countries in the semiconductor trade worldwide, providing as much as 7% of the world’s semiconductor trade, and accounting for 13% of the outsourced semiconductor assembly and test worldwide.
The country also houses 19 fabless companies and six wafer facilities, solidifying its position as one of the key supply chains in the Asian semiconductor industry.
The reputable companies in this area of business include Infinecs, Oppstar, Symmid, and SkyeChip that are part of the global value chain.
Moreover, the country hosts companies that are able to offer engineering and design solution services, such as Testhub and JF Technology. – The Vibes, November 18, 2021
