Kuala lumpur: Malaysia does not anticipate any major risks to its semiconductor industry stemming from energy supply or raw material shortages at this stage, stated Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani. The country's position as a net gas exporter bolsters its confidence in maintaining a stable supply for industrial demands.
According to BERNAMA News Agency, Johari emphasized that while Malaysia is a net importer of oil, it remains a net exporter of gas, with ample reserves to support industrial expansion. "At this moment, we have not seen that as a serious concern," Johari remarked during the launch of SEMICON Southeast Asia 2026. He noted the potential for better domestic utilization of surplus gas to fuel industrial development, particularly in energy-intensive sectors.
Addressing potential raw material supply risks, such as helium used in semiconductor production, Johari noted the situation is manageable, though it could be influenced by global events. "The only problem is actually whoever gets the supply from West Asia, as long as there is a war going on, you can see the shortage about to be seen," he explained.
Despite global uncertainties, investor sentiment towards Malaysia's semiconductor sector remains positive, with industry players continuing their expansion plans. "As far as I am concerned, I think we must continue to engage with them. But so far, I think everyone is eager to proceed," Johari said. The semiconductor sector is a crucial component of Malaysia's electrical and electronics (EandE) industry, which reported exports of approximately RM711 billion in 2025.
Johari highlighted the future growth potential, stating that semiconductors alone are expected to reach a global market size of about US$1 trillion by 2030. "Malaysia must strengthen its semiconductor ecosystem to capture future growth opportunities and remain competitive in the evolving global landscape," he asserted.
He also mentioned the industry's expected rapid expansion, driven by the demand for artificial intelligence infrastructure, including high-performance data centers, servers, and network equipment. While Malaysia has developed strong capabilities in the back-end segment, Johari stressed the need to expand into front-end activities like wafer fabrication, citing Infineon's investment in Kulim as an example of attracting foreign investment to boost high-value semiconductor manufacturing.
In other developments, Malaysia has started allocating technology tokens secured under an agreement with Arm Holdings to enhance domestic integrated circuit (IC) design capabilities and foster industry collaboration. Johari detailed that the agreement provides Malaysia access to Arm Holdings' semiconductor intellectual property, with a four-year timeframe to fully utilize the tokens and identify suitable partners.