New framework under National Semiconductor Strategy set to drive Malaysia's technology growth

The new framework aims to grow 110 high-value local companies and strengthen Malaysia’s role in the global supply chain.

Malaysia has introduced a new framework under the National Semiconductor Strategy (NSS) which was launched on 28 May 2024.

Approved during the National Investment Council (MPN) meeting chaired by Prime Minister Dato' Seri Anwar Ibrahim, the NSS framework outlines a direction to develop 110 Malaysian companies in high-value semiconductor activities such as integrated circuit design, advanced packaging, and advanced manufacturing equipment.

Key goals of the NSS

1) Supporting semiconductor-related companies

• The strategy will support 10 local semiconductor-related companies, each expected to generate revenue between RM1bn and RM4.7bn. It will also help establish another 100 companies, each with an estimated annual revenue of around RM1bn.

2) From 'Made in Malaysia' to 'Made by Malaysia'

• The NSS marks a strategic shift from a manufacturing-based approach to a technology-driven one, focusing on research and development (R&D) and technological sovereignty.

3) Driving economic growth and talent development

• The strategy aligns with the New Industrial Master Plan 2030 (NIMP2030) to increase the manufacturing sector’s contribution to GDP, enhance skilled talent, and raise median wages.

Collaboration and semiconductor diplomacy

The Ministry of Investment, Trade and Industry (MITI) will lead the whole-of-government approach, working with key ministries such as the Ministry of Economy, Ministry of Foreign Affairs, and Ministry of Science, Technology and Innovation.

The NSS also prioritises semiconductor diplomacy. It is a strategy to enhance cooperation with international partners and ASEAN countries, ensuring a sustainable and resilient supply chain for domestic and global semiconductor players.

By increasing the production capacity of high-value electrical and electronics (E&E) products, this strategy seeks to boost local industries, build skilled talent, and raise workforce incomes, in line with Malaysia’s MADANI Economy vision.