‘MALAYSIA SHIFTING TO HIGH-END PRODUCTS’

View backed by rise in investments for semiconductor industry, says Sulaiman

ASERIES of investments in Malaysia focusing on the semiconductor industry signals the country’s shift to attracting investors in high-end manufacturing.

Malaysian Investment Development Authority (MIDA) chairman Tan Sri Sulaiman Mahbob told the NSTP group that Malaysia has shifted from a country that does assembly to one that manufactures high-end products.

“If you view it from a structural perspective, we have elevated to a more high-end industry.

“This can be seen in the technology industry, among which includes the semiconductor sector which has seen an increase in demand for highly skilled workers.

“We are not merely in the assembly line anymore.”

Commenting on the need for talent in these uplifted industries, he said Malaysia’s talent pool could adapt to the shift and already had basic skills.

“We must train and upskill them by providing courses that are needed by the industries. With these skills, the companies that invest here will take these talents to the respective countries or the headquarters here for training.”

Among notable semiconductor investments that Malaysia has secured are that from German global semiconductor company Infineon Technologies AG, which will invest up to €5 billion over the next five years to build the world’s largest 200mm silicon carbide (SiC) power fabrication plant in Malaysia.

The company said the investment at its Kulim facility in

Kedah will lead to an annual SiC revenue potential of €7 billion by the end of the decade.

Meanwhile, Sulaiman said Malaysia still has a competitive edge in attracting investors, as reflected in the amount of approved investments recorded up to last year.

“The amount of approved investments from 2021 to last year was high, with a fast implementation of projects up to 70 per cent.”

Previously, MIDA said that Malaysia achieved a historic investment performance last year, with RM329.5 billion of approved investments.

Within the manufacturing sector alone, which accounted for RM152 billion of the total approved investments, 62.9 per cent or RM95.5 billion originated from existing businesses expanding and diversifying operations.

Sulaiman, who is also the Malaysian Institute of Economic Research board of trustees chairman, said Malaysia is poised to achieve the estimated growth of between 4.0 and 5.0 per cent this year.

“I am confident that we can hit the 4.0-5.0 per cent target for gross domestic product. Between 4.2 and 4.3 per cent is definitely achievable.”

On the ringgit, he said the government needs to take measures that support Malaysian brands to offset the declining value of the local currency against the US dollar.

Among key steps that the government can consider is sending scholars to local universities instead of abroad to avoid currency exchange volatility.

“Some of the courses we have here apply syllabus from international universities, so the students can reap the benefits by studying in the country.”