Syarikat semikonduktor tempatan perlu perkukuh rantaian nilai, kata Tengku Zafrul

Malaysia's local semiconductor ecosystem has become mature, according to Mida Tengku Zafrul Abdul Aziz, chairman of the Malaysia Investment and Development Corporation (Mida). However, the nation needs to strengthen its position within the global semiconductor supply chain, he said during a discussion on the 2027 budget presented by Bernama TV.

The budget allocates RM1.2 billion from Khazanah Nasional Bhd and the Employees Provident Fund (KWAP) to help local semiconductor companies move into higher-value segments. An additional RM100 million in strategic investment funds, managed by Khazanah Nasional Bhd and InvestPenang, will support early-stage semiconductor firms. Tengku Zafrul emphasized that these steps will help Malaysian companies enhance their capabilities and advance further within the supply chain.

To truly move up in the supply chain, Malaysia must focus on research and development (R&D) and innovation, he added. The government must not only attract investment but also ensure projects are implemented on time, as the approval process involving local authorities and relevant agencies can still be a concern for investors. Project investments, especially in manufacturing, can take around two years from the ground-breaking phase to the completion of the factory, depending on the industry.

Regarding wages, Tengku Zafrul believes companies should translate productivity improvements into higher wages for employees to ensure economic growth translates into a better quality of life for Malaysians.