Malaysia's semiconductor industry faces tough obstacles
Internal constraints such as a talent crunch, funding problems, and other supply chain gaps are key hurdles Malaysia must overcome if it wants to compete with top industry giants.
Kuala Lumpur (VNA) – 🌟Though Malaysia is making great strides in its effort to become a major player in the global semiconductor industry, analysts warn that the country still faces tough challenges and obstacles.
Experts said internal constraints such as a talent crunch, funding problems, and other supply chain gaps are key hurdles the country must overcome if it wants to compete with top industry giants such as Taiwan (China), the Republic of Korea (RoK), and Japan.
Shafiq Kadir, an equity analyst at CGS International, said local integrated circuit (IC) design houses face challenges in accessing large-scale funding, and lack a pool of experienced engineers.
One of the main reasons is that the country’s higher education system is not yet well-prepared to produce graduates with right skills, he said.
Sharing the view, President of the Malaysia Semiconductor Industry Association Wong Siew Hai said although Malaysians have experience in working with multinational companies, many choose to work abroad for higher salaries and better career advancement opportunities.
In a deal signed on March 5, Malaysia will pay Softbank-owned Arm 250 million USD over a decade to access its intellectual property. The deal also includes the training of 10,000 local semiconductor engineers.
The Malaysian Government’s 5.3-billion-USD allocation over the next decade to upscale Malaysia’s semiconductor sector is considered small compared with state investments by China and the US.
Shafiq said the tools and equipment required for chip production could run into billions of US dollars – apart from the need for highly skilled engineers and operators, adding that competing with semiconductor powerhouses will not be easy as they developed the ecosystems to support technological leadership in the past few decades.
Malaysia’s semiconductor exports were valued at 387.98 billion RM (87.52 billion USD) in 2024, making the country one of the world’s top 10 chip exporters, according to the Malaysia External Trade Development Corporation.
The Malaysia Semiconductor Industry Association is aiming for the country’s chip exports to reach 270 billion USD by 2030./.
According to Bukit Aman Commercial Crime Investigation Department (CCID) Director Datuk Seri Ramli Mohamed Yoosuf, cryptocurrency scams have become a major commercial crime trend, often luring professionals and retirees with promises of high returns.
Malaysian Prime Minister Anwar Ibrahim reaffirmed Malaysia’s commitment to sustainable, inclusive, and equitable growth, as well as its ambition to strengthen its position as a key hub for trade, investment, and technological innovation.
As ASEAN Chair in 2025, Malaysia will work to revitalise regional dialogue platforms, including ASEAN+3 and the East Asia Summit (EAS), which provide a neutral and constructive space for strategic and security discussions among major powers, Prime Minister Anwar Ibrahim said.
Addressing the ceremony, Indonesian Ambassador Simon D.I. Soekamo, the rotating Chair of the ASEAN Committee in Cuba, highlighted the bloc's spirit of friendship and solidarity, and reaffirmed ASEAN's core values of peace, stability, and prosperity through cooperation and dialogue.
Vietnam’s pavilion notably displayed traditional crafts from the centuries-old lacquerware village of Ha Thai and Chu Dau ceramics. The atmosphere was further enriched by delegations wearing their countries’ traditional costumes, including the elegant ao dai and the graceful ao tu than of Vietnamese women.
The handover ceremony was held at the Malaysian Embassy headquarters in Mexico City on August 8, with the presence of heads of diplomatic missions from ASEAN member states in Mexico.
Total trade between Indonesia and New Zealand in the first half of 2025 reached 963.23 million USD, an increase of 21.56% compared to 792.39 million USD in the same period last year. Of this amount, Indonesia's exports to New Zealand totaled 374.89 million USD, while imports 588.35 million USD
Malaysia, as ASEAN 2025 Chair, marked the bloc’s 58th founding anniversary on August 8 with a vibrant celebration in Cyberjaya, blending an official ceremony with a colorful cultural festival.
Vietnam plays an important role in Southeast Asia’s economic growth and is a key partner of her country in realising the shared vision of a peaceful, stable, and prosperous region, said Robyn Mudie, First Assistant Secretary of Office of Southeast Asia (OSA) – Southeast Asia Regional and Mainland Division at Australia’s Department of Foreign Affairs and Trade (DFAT).
The 2025 ASEAN Business Community Development (ABCD) Forum, themed “Empowering ASEAN's Next Leap: Digital, Sustainable & Entrepreneurial Transformation” brought together ministers, CEOs, and top industry experts to discuss key regional economic priorities.
The DES Ministry will seek cooperation from social media platforms to prevent the spread of fake news and monitor accounts related to such activities, he told reporters after chairing a meeting of the newly established Anti-Fake News Centre (AFNC).
The Joint Standing Committee on Commerce, Industry and Banking identified the US tariff reduction as a significant driver behind the improved economic outlook for Thailand.
Financial institutions and financial technology (fintech) players are intensifying their focus on expanding across the Association of Southeast Asian Nations (ASEAN), adopting tailored strategies to strengthen their presence in the region’s digital financial services landscape.
Featuring a permanent exhibition area, the ASEAN Hall will function both as a cultural showcase and as a dynamic venue for ASEAN-related events and programmes. Its inauguration on ASEAN Day added symbolic weight, marking a fresh milestone in ASEAN–RoK relations.
Thailand’s Ministry of Commerce and rice exporters are devising strategic plans to boost rice exports amid global market fluctuations, focusing on key markets and adjusting output.
The focus of the upcoming ASEAN Summit in October will be on strengthening economic relations through intra-regional trade and investment, as well as regional initiatives on energy networks and connectivity.
Indonesian Ambassador Rina P. Soemarno, who currently serves as Chair of the ASEAN Committee in Prague, emphasised the spirit of regional solidarity and cooperation, and the importance of enhancing ASEAN–Czech Republic relations.
The Indonesian Government is determined to seize opportunities to enhance the competitiveness of national agricultural products, an official has said, adding that it always strives to promote exports at the highest possible level, based on a mutually beneficial foundation.
Finance Minister Pichai Chunhavajira has outlined a six-point strategy to promote innovation, support small and medium-sized enterprises (SMEs), and push for Thailand's removal from the US Trade Representative (USTR)’s special 301 Watch List regarding intellectual property rights protection among trading partners.
Vietnamese Ambassador to Israel Ly Duc Trung emphasised ASEAN’s central role in regional mechanisms such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS), highlighting its significant contribution to promoting peace, stability, and prosperity in Southeast Asia.
The consumer index of the University of the Thai Chamber of Commerce (UTCC), fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said.
Deputy Speaker of the Hungarian National Assembly Istvan Jakab expressed his hope for further deepening Hungary’s ties with ASEAN countries and called for their support for Hungary’s accession to the Treaty of Amity and Cooperation in Southeast Asia.
