Baku:Local semiconductor companies must leverage Budget 2027's allocations to increase their participation in higher-value activities like integrated circuit design, as Malaysia aims to enhance its position in the global semiconductor supply chain, stated Tengku Datuk Seri Zafrul Abdul Aziz.
According to BERNAMA News Agency, speaking on Bernama TV's The Nation programme, the Malaysian Investment Development Authority (MIDA) chairman emphasized that while Malaysia has developed a mature semiconductor ecosystem over five decades, there is a need to move beyond its traditional focus on assembly and testing to capture greater industry value.
Under Budget 2027, Khazanah Nasional Bhd and the Kumpulan Wang Persaraan (Diperbadankan) (KWAP) are set to invest RM1.2 billion to assist local semiconductor companies in advancing to higher-value segments. Additionally, a RM100 million Strategic Investment Fund will be established by Khazanah Nasional Bhd and InvestPenang to support early-stage semiconductor and advanced manufacturing companies.
Tengku Zafrul highlighted that these measures would bolster Malaysian companies' capabilities and help them ascend the value chain, ultimately generating broader economic benefits by strengthening local supply chains and creating domestic business opportunities.
He further noted the importance of Malaysia investing in research, development, and innovation to ensure the country's advancement in the value chain. Moreover, he stressed the necessity for the government to facilitate not only investment attraction but also the timely realization of approved projects.
The speed of securing approvals from local councils and relevant government agencies remains a vital factor for investors, with manufacturing projects potentially taking about two years from groundbreaking to factory completion, depending on the industry.
On the topic of wages, Tengku Zafrul advocated for aligning wage increases with productivity gains, urging companies to share profits from efficiency improvements with their employees to ensure economic growth enhances Malaysians' livelihoods.