- Malaysia aims to become a key global hub for energy and semiconductor manufacturing by 2025, driven by strong investments and economic growth projections.
- With a stable currency and favorable business environment, Malaysia is set to attract over $100 billion in semiconductor investments, positioning itself as a critical player in the global tech supply chain.
Malaysia aims to capitalize on its strategic location to become a key energy and semiconductor manufacturing hub in 2025, following a significant rise in investments and positive economic projections, according to statements from the country’s Prime Minister Anwar Ibrahim and Economic Minister Rafizi Ramli.
The country is positioning itself as a growing destination for foreign investment, sustained by a stable currency, improving economic growth, and a favorable business environment that sets it apart from its regional peers facing political instability and economic uncertainty.
Prime Minister Anwar Ibrahim highlighted that Malaysia’s economy made a strong recovery last year, largely driven by substantial investments in renewable energy and artificial intelligence (AI) infrastructure. He pointed out that inflation remained under control, the Malaysian ringgit was stable, and the stock market was the top performer in the region.
In a speech at an economic forum, Anwar outlined Malaysia’s plan to build on its geographical advantages and transform the country into a central hub for electricity, talent, and supply chain diversification. He also emphasized the government’s focus on enhancing expertise in key sectors such as oil and gas, semiconductors, and Islamic finance, with the aim of establishing Malaysia as a global leader in each of these fields.
Economy Minister Rafizi Ramli further elaborated on the country’s aspirations to become a major player in semiconductor manufacturing. As demand for artificial intelligence and data centers continues to surge, Malaysia aims to develop its own graphics processing units (GPUs) and chips within the next five to ten years.
This long-term goal comes amid growing demand for advanced technology and the country’s existing strengths in semiconductor production, with Malaysia accounting for 13% of global semiconductor testing and packaging.
Malaysia’s semiconductor sector is poised to attract more than $100 billion in investments, with many Chinese chip companies seeking to diversify their operations abroad. The country has already secured major investments from global technology firms like Intel and Infineon in recent years, positioning itself as a critical player in the global chip supply chain.
The inflow of digital investments from tech giants such as Google in 2024 has also contributed to Malaysia’s economic growth, which exceeded market expectations during the second and third quarters. The stable economic climate, along with a resilient currency, has bolstered investor confidence in the country, making it a compelling destination for foreign businesses.
In addition to its push for semiconductor and AI infrastructure, Malaysia’s strategy includes focusing on expanding its role in renewable energy and other high-tech industries, with the aim of driving long-term economic growth and technological innovation.