Kuala lumpur: Malaysia aims to diversify supply chains in the semiconductor sector to ensure that foreign and local investments remain strong and resilient, said Deputy Investment, Trade and Industry Minister Liew Chin Tong. Liew emphasized the strategic importance of Malaysia’s collaboration with Singapore and Vietnam to become an attractive supply chain destination for investors, driven by the National Semiconductor Strategy (NSS) launched in May 2024.
According to BERNAMA News Agency, Liew highlighted a shift from the ‘just in time’ era to the ‘just in case’ era, where international companies are now focusing on creating multiple supply chains. This change is a response to the need for more robust and flexible supply chains. During trade negotiations with the United States, the Ministry of Investment, Trade and Industry (MITI) urged the US to grant exemptions to Malaysian products not produced or manufactured in the US, emphasizing complementarity in supply chains.
In response to Senator Datuk Nelson W Angang’s query regarding efforts to maintain investor confidence amidst US tariffs, Liew explained that MITI collaborates with industry bodies such as the American-Malaysian Chamber of Commerce (Amcham) and the US-ASEAN Business Council. These collaborations ensure that efforts and feedback are effectively communicated.
He also noted that MITI holds regular engagement sessions with American investors, think tanks, and other stakeholders. On August 15, 2025, US President Donald Trump suggested that semiconductor and pharmaceutical products might face additional tariffs. The US government is investigating under Section 232 of the Trade Expansion Act of 1962, with potential tariffs to be announced by December 2025.
Liew revealed that Malaysia’s pharmaceutical exports to the US in 2024 amounted to RM3.04 billion, while imports stood at RM11.77 billion. Semiconductor exports to the US were valued at approximately RM56.2 billion, accounting for about 14.5 percent of Malaysia’s total semiconductor exports. Currently, the US reciprocal tariff rate on Malaysia is 19 percent, with exemptions for semiconductor and pharmaceutical products.