Malaysia Targets Higher E&E Value Chain Position
Malaysia Aims to Move Up E&E Value Chain, Says Amir Hamzah
By IFCCI News Desk
Malaysia is intensifying efforts to advance its position in the electrical and electronics (E&E) value chain, with a strategic focus on strengthening mid-stream semiconductor capabilities, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.
Speaking at the Fortune Innovation Forum, Amir Hamzah said Malaysia’s E&E and semiconductor sectors remain deeply integrated with global supply chains, noting that disruptions abroad often have amplified effects domestically. He described Malaysia as operating “in the middle of the value chain,” where the country can add the greatest value by increasing technological complexity and ecosystem depth.
The minister stressed that Malaysia is not competing at the extreme ends of the semiconductor spectrum—neither at advanced front-end fabrication nor at low-margin assembly work—but is instead positioning itself in the higher-value mid-stream, an area that has become increasingly crucial amid global technological realignments.
Strengthened Commitment Under Budget 2026
Amir Hamzah highlighted that the government’s commitment to the semiconductor and E&E sectors will be deepened under Budget 2026, with new measures aimed at expanding high-value activities, improving infrastructure readiness, and enhancing supply-chain resilience. He noted that the sector’s long-term competitiveness will depend on its ability to scale technological sophistication.
Holistic Talent Development Needed
He also emphasised the need for holistic talent development, calling for stronger industry–academia collaboration to produce more skilled engineers, technicians, and semiconductor specialists. A robust talent pipeline, he said, is essential for Malaysia to secure its position as a preferred investment destination for multinational chipmakers.
Malaysia as a “Reliable Middle Power” in Global Supply Chains
Amir Hamzah reiterated that Malaysia’s stable ecosystem and balanced geopolitical positioning make it a “reliable middle power” within global semiconductor supply chains, serving both Western and Chinese technology players. He added that this neutrality continues to attract high-quality foreign direct investment into the E&E sector.
