THE Ministry of Investment, Trade and Industry (MITI) will unveil a series of new, targeted incentives in July to further accelerate the development of Malaysia’s semiconductor industry, Minister Tengku Datuk Seri Zafrul Abdul Aziz announced on Tuesday.
Speaking at the Malaysian Investment Development Authority (MIDA) supply chain event held during SEMICON Southeast Asia (SEA) 2025 in Singapore, Tengku Zafrul said the incentives would mark the first anniversary of the National Semiconductor Strategy (NSS).
“I can’t reveal too much about what we will be announcing, but what I can say is that we are going to continue supporting this industry,” Bernama cited him saying.
“We’ve been engaging with the industry to understand its needs and priorities. Of course, we know that what it wants is more fiscal support to strengthen the ecosystem, but also the right policy framework.”
He emphasised that MITI remains committed to working closely with industry stakeholders amid ongoing geopolitical shifts and uncertainties affecting global supply chains.
“Malaysia will continue to champion global collaboration and dialogue to ensure our relevance in the international semiconductor ecosystem,” he said. “We recognise the sovereign right of nations to develop their domestic industries, but we must also stress the importance of global collaboration.”
Malaysia has been an integral part of the semiconductor industry since the 1970s, and according to the minister, now contributes 13 per cent of global back-end semiconductor output. In 2024 alone, the sector accounted for around US$130 billion (RM575 billion) in electronics exports.
At a separate luncheon with industry leaders, Tengku Zafrul highlighted Malaysia’s efforts to diversify trade, noting that the country has ratified 17 free trade agreements (FTAs) to date.
“The Malaysia-South Korea FTA will be finalised this October. We have resumed FTA negotiations with the EU. Negotiations for FTA upgrades with China and India are also ongoing at the ASEAN level, where Malaysia is leading the agenda this year as chair,” he said.
He added that talks on the Digital Economic Framework Agreement (DEFA) are also progressing this year.
Earlier in the day, Tengku Zafrul launched the Malaysia Pavilion at SEMICON SEA 2025. The event, co-organised by MITI and Global Exhibitions and Conferences Sdn Bhd (GEC), is Southeast Asia’s premier platform for the electronics and semiconductor sectors.
The Malaysia External Trade Development Corporation (MATRADE) has brought nine local companies to exhibit their products and services along the semiconductor value chain. Over 90 Malaysian companies are participating in the exhibition. - May 21, 2025
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