In making the call, the minister said although Malaysia has been a prominent player in the global semiconductor sector for over 50 years now, there is still room for improvement.

“We have been a major player in the last 50 years and we now want to move up that value chain from back end to front end, but at the same time we also want more Malaysian companies to participate in the development of this ecosystem,” he said.

He said Malaysia has strengths in both the digital and green economies. While Malaysian companies play a big role in renewable energy, there is a need for improvement in the digital economy, namely in data centres.

“I think we should encourage more Malaysian companies to invest in this sector as well and Miti is actually engaging with local companies, investors, especially government-linked investment companies, to see how they can participate as well,” he said on the sidelines of the Industrial Take Off Year 2024 programme organised by Concorde Club at Wisma Bernama.

Tengku Zafrul said Miti is working on institutionalising the process and inviting local businesses to invest in the sector.

He said Malaysia has seen favourable flows of capital and investments as a result of trade tensions between two superpowers, the US and China.

It was reported that Malaysia has emerged as a surprising victor in the global semiconductor business during the current trade war between the US and China.

The news report further said manufacturers in Malaysia are harnessing the chance to upscale their operations and extend their global market footprint as rival manufacturers from the two global powerhouses face constraints.