Malaysia: Malaysia holds a strong potential to serve as a regional catalyst in semiconductor innovation and infrastructure connectivity, offering a strategic gateway for enhanced ASEAN-China economic integration.
According to BERNAMA News Agency, Dr Yao Tang, Malaysia has a well-established semiconductor sector and ongoing infrastructure development, including rail connectivity as key assets in supporting deeper economic collaboration between China and ASEAN.
Yao emphasized Malaysia’s advanced semiconductor sector as having significant potential for integration in both semiconductors and IT technology. He noted that these capabilities are vital as China and ASEAN aim for more integrated economic models in a region with over two billion people and a combined annual growth rate of about five percent.
He further explained that the ASEAN-China region could double its economic size over the next decade, increasing its influence on the global economy and reducing reliance on external factors. Malaysia’s semiconductor exports were strong in 2024, totaling approximately US$130 billion (RM575 billion). The country is responsible for about 13 percent of the world’s semiconductor testing and packaging and is investing in integrated circuit (IC) design to establish itself as a major IC design hub.
Additionally, Malaysia currently holds about seven percent of the global semiconductor market, with plans to double this share to 14 percent by 2029 through strategic investments and advancements in chip design. Yao also highlighted the importance of improving railway and transport links to support regional mobility, trade, and economic synergy, mentioning ongoing efforts towards better infrastructure connectivity.
He stressed the need for long-term strategic planning and alignment across countries in the region, particularly in coordinated investment in green energy and AI to enhance shared prosperity. On trade dynamics, Yao urged China to shift from its traditional export-driven model to a more balanced approach that promotes production localization across Southeast Asia, including Malaysia.
By relocating production capacities abroad, China could facilitate local value creation and help share growth and technology, especially in areas requiring industrial development. He also mentioned the importance of import diversification, particularly in agricultural and cultural products, with mechanisms like the Regional Comprehensive Economic Partnership (RCEP) promoting these exchanges.
Yao underscored that China could import more goods from ASEAN countries, aligning with growing demand and reduced trade barriers. He concluded by advising China to avoid seeking dominance on the global stage and instead focus on being a responsible economic leader, stating that sustainability lies in being mindful and responsible.