He noted that Malaysia has a competitive edge in the semiconductor sector, having been a key player in the electrical and electronics industry for over five decades.

The minister highlighted that the country’s semiconductor exports currently hold a global market share of 7%.

“We have a slight advantage due to our track record and the ecosystem established by both Malaysian companies and multinational corporations,” said Tengku Zafrul, adding that the multinational companies have created numerous opportunities for local companies to thrive.

Speaking at Bloomberg’s virtual forum titled “Spotlight on Asean Business: Charting New Frontiers”, he said Malaysia aims to move to the higher-value front-end of the sector.

“Companies are also moving towards that direction. They are coming to Malaysia and you can see investments in larger amounts,” the minister said.

At the same time, Tengku Zafrul said there are a lot of opportunities for Asean members to work together to boost the semiconductor industry, including in establishing an ecosystem within the region.

He cited companies in Singapore expanding their operations into Malaysia as an example, where the front-end of the semiconductor process is mainly done in Singapore, with mid-to-back-end operations often taking place in Malaysia.

Tengku Zafrul also stated Asean has other advantages that could help boost the semiconductor industry’s growth within the region, which includes green energy.

“This sector consumes a lot of energy, and companies want green energy. Everybody is meeting their sustainability objectives and agendas.

“Malaysia is investing in green energy to support this industry, and I’m sure other Asean countries are doing the same,” he added.