Kuala lumpur: Malaysia must continue attracting strategic, high-quality investments while ensuring that local companies capture a greater share of the value created by global investors operating in the country, said Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid. Speaking at the 'Advancing Malaysia's Semiconductor Ecosystem Through Strategic Supply Chain Integration and Capability Enhancement' forum, held on May 6, in conjunction with SEMICON Southeast Asia 2026, Sikh Shamsul Ibrahim emphasized the importance of strengthening the country's semiconductor ecosystem and enhancing supplier capabilities.
According to BERNAMA News Agency, the forum was also attended by Deputy Minister of Investment, Trade and Industry Sim Tze Tzin, Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai, and UOB Malaysia managing director and country head of wholesale banking Andy Cheah. Sikh Shamsul Ibrahim highlighted the forum's role in strengthening linkages, identifying capability gaps, and facilitating business matching and partnerships between multinational anchor investors and Malaysian suppliers. He stressed the importance of capturing more value within the country from the global semiconductor strategy.
Sikh Shamsul Ibrahim outlined three of MIDA's flagship programmes relevant to the forum's theme. The first is the Enterprise Growth Platform (EGP), which supports Malaysian companies aiming to integrate into anchor supply chains, export markets, and strategic partnerships. He noted the recent Northern EGP programme held in Sungai Petani, Kedah, and plans to expand this format to other regions.
The second initiative is MIDA's Supply Chain Programme, which connects multinational anchor investors with qualified Malaysian suppliers. The Infineon Vendor Development Programme was cited as a leading example, with Malaysian firms advancing into high-precision tooling, automated test equipment, and cleanroom engineering.
Furthermore, Sikh Shamsul Ibrahim mentioned MIDA's 2025 partnership with Arm Ltd, which aims to provide Malaysian SMEs access to world-class chip design intellectual property, supporting the country's integrated circuit design ambitions. He emphasized the importance of visibility and participation in building the depth of Malaysia's supplier base.
The efforts are being coordinated with sister agencies under the Ministry of Investment, Trade and Industry (MITI) and other government partners to align financing, technical assistance, and market access with industry needs. Sikh Shamsul Ibrahim underscored the tangible support provided to engineering firms, precision manufacturers, materials specialists, and test houses within the value chain.
He also pointed out the increasing interlinkages between the semiconductor and automotive sectors, especially in areas like electric vehicles, advanced driver-assistance systems, and smart mobility solutions. He noted that semiconductors are crucial to modern automotive manufacturing, citing power chips, sensors, battery management systems, and vehicle connectivity as core technologies.
During the forum, MIDA signed a memorandum of understanding with MSIA to enhance joint capability mapping, supplier readiness assessments, and coordinated outreach to anchor investors. Sikh Shamsul Ibrahim expressed the value of MSIA's industry connections, which will facilitate more effective outreach to Malaysian semiconductor firms.
The event also marked the launch of the Malaysia Advanced Packaging Consortium, with founding members SkyeChip, Fusion AP, Inari, Pentamaster, and NSW Automation.