Kuala lumpur: Malaysia has urged Japanese investors to elevate their involvement in the country's semiconductor sector by moving beyond assembly into higher-value segments such as integrated circuit design, advanced packaging, research and development, green sectors, and local talent development. Deputy Investment, Trade and Industry Minister Sim Tze Tzin emphasized the importance of forming long-term partnerships and sourcing from local suppliers using Malaysian machinery and services.
According to BERNAMA News Agency, Sim highlighted the potential for creating shared value and strengthening supply chain resilience. He encouraged Japanese investors to engage with Malaysian small and medium enterprises (SMEs), develop local suppliers, and transfer not only technology but also the management practices that define Japanese industry. Speaking at the New Japan-Malaysia Industrial Cooperation Seminar, Sim noted that Malaysia's industrial policy aligns with Japan's strategic priorities, particularly in areas like semiconductors, green transformation, and economic security.
Malaysian Investment Development Authority (MIDA) chairman Tengku Datuk Seri Zafrul Abdul Aziz echoed Sim's sentiments, inviting Japanese investors to deepen their presence in Malaysia. He cited policy clarity and consistency, along with the MIDA-MUFG partnership and JACTIM's network as key facilitators for Japanese SMEs. Japan remains a major investor in Malaysia, with RM142.9 billion in approved investments across more than 3,800 projects by the end of 2025, generating nearly half a million jobs.
Tengku Zafrul also addressed the impact of the West Asia conflict on energy prices and its ripple effects on the semiconductor supply chain. He stressed the importance of Japanese companies understanding where their regional supply chain anchors should be, given the established links and historical alignment between Malaysia and Japan. He assured that Malaysia offers a proven foundation for future growth, supported by decades of partnership and clear policy direction.