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Melaka Strengthening Its Semiconductor Industry to Attract High-Value Investments

Melaka: Melaka is reinforcing its status as one of Malaysia's prominent semiconductor and advanced manufacturing centers by capitalizing on its robust industrial ecosystem, skilled workforce, and strategic geographical location, aiming to lure high-value investments for future growth.

According to BERNAMA News Agency, Chief Minister Datuk Seri Ab Rauf Yusoh emphasized that the state's Semiconductor Strategic Plan 2026-2035 is designed to enhance industry capabilities, fortify supply chain resilience, and support high-value investments aligned with the National Semiconductor Strategy (NSS). With a history of over fifty years in semiconductor manufacturing, Melaka is poised to take advantage of the increasing global demand for technologies such as artificial intelligence, autonomous mobility, advanced manufacturing, healthcare technologies, and data centers.

The Chief Minister underscored the need for enhanced collaboration between government entities, industry sectors, and academia, particularly in talent development via technical and vocational education and training (TVET), innovation, and sustainable manufacturing practices. This was highlighted during the MSIA Dialogue and Networking Session with the Chief Minister of Melaka, organized by the Malaysia Semiconductor Industry Association (MSIA), Malaysian Investment Development Authority (MIDA), Invest Melaka Bhd, Infineon Technologies (Malaysia) Sdn Bhd, and Maybank.

MIDA's chief executive officer, Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, noted that Melaka has established a solid industrial foundation, skilled workforce, and supplier network crucial for competing for the next wave of high-value investments. The electrical and electronics industry continues to lead Malaysia's investment landscape, attracting RM6 billion in approved investments in the first quarter of 2026, the highest among manufacturing industries. MIDA remains committed to facilitating quality investments that build capabilities, drive innovation, and create quality jobs, supported by the New Incentive Framework (NIF).

Invest Melaka Bhd's CEO, Datuk Ginie Lim Siew Lin, highlighted the importance of continuous engagement with industry players to understand evolving investment trends and requirements. Melaka's semiconductor strength, built over decades, aims to connect emerging opportunities with the right capabilities and partnerships to strengthen its position as a preferred location for semiconductor growth.

MSIA president Datuk Seri Wong Siew Hai pointed out that Malaysia's future competitiveness hinges on the strength of its semiconductor ecosystem. He emphasized the transition from 'Made in Malaysia' to 'Made by Malaysia,' with every state playing a role. Melaka, with its strong foundation, is positioned to be a key driver of advanced technologies, talent development, and innovation, reinforcing Malaysia's global semiconductor leadership.

Maybank's managing director, Ranita Abdullah, reaffirmed the bank's commitment to supporting Melaka's efforts to attract quality investments into advanced and high-tech industries while strengthening the ecosystem of multinational corporations and local SMEs. The bank is also keen on supporting the state's sustainability aspirations and Smart City digital transformation agenda, aligning with Maybank's strategy to mobilize substantial funds in sustainable finance and the new economy across ASEAN.

The event saw the participation of nearly 150 industry leaders, policymakers, government agencies, financial institutions, and ecosystem partners, highlighting Melaka's dedication to becoming a future-ready semiconductor and advanced manufacturing hub.

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