KUALA LUMPUR: Diversification of operations and markets has become essential for businesses in Malaysia to stay competitive, said Malaysian Investment Development Authority (MIDA) chief executive officer (CEO) Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid. He emphasized that for the survival of many industries, diversification has become an important element for business survival.

According to BERNAMA News Agency, Sikh Shamsul highlighted specific challenges, such as the impact of United States (US) tariffs on solar producers from Malaysia, Thailand, Vietnam, and Cambodia, which will significantly increase the cost of exports to the US. These countries, which collectively contribute approximately 60% of solar exports to the US, are now under pressure to explore new markets, including within the BRICS nations, to stay competitive.

The CEO made these remarks during the ‘Budget Insights Forum: Moving Towards 2025’, organized by MIDA and the Malaysian Institute of Economic Research (MIER) at MIDA Sentral. The for
um also addressed challenges in the global semiconductor industry, which is affected by recent US restrictions on Chinese companies and their supply chains. This situation presents an opportunity for Malaysia, as Chinese companies in the semiconductor field are interested in diversifying their operations away from China to mitigate geopolitical risks.

Sikh Shamsul pointed out that Malaysia’s favorable investment environment makes it an attractive destination for these companies to establish operations that do not involve Chinese equity ownership. This strategic move allows them to reduce risks while maintaining access to global markets. He further noted that the Malaysian government is concentrating on diversifying investments in high-growth sectors such as semiconductors and electric vehicles (EVs), while also exploring new markets to lessen reliance on traditional trade partners.