Malaysia’s Ambitions in Energy and Semiconductor Manufacturing

By Danial Azhar

KUALA LUMPUR (Reuters) – Malaysia aims to leverage its strategic location to become an energy and chip manufacturing hub this year. This ambition stems from a recent surge in investments and a positive outlook for the domestic economy, according to the premier and economic minister.

Malaysia is rapidly emerging as a haven in Southeast Asia, with foreign investors returning due to improving growth and a stable currency, distinguishing it from peers facing political instability and economic uncertainty.

Prime Minister Anwar Ibrahim expressed that Malaysia’s economy significantly rebounded last year, driven by an influx of strategic investments, especially in renewable energy and artificial intelligence infrastructure. He noted that inflation and the ringgit remain stable, with the stock market ranking as the region’s top performer.

> “In 2025, we aim to further capitalize on our geographical centrality to serve as a conduit for electricity, talent, and supply chain diversification,” he stated at an economic forum.

Anwar added that Malaysia intends to refine its capabilities in oil and gas, semiconductors, and Islamic finance, aspiring to emerge as a global leader in each sector.

Economy Minister Rafizi Ramli mentioned plans for Malaysia to produce its own graphics processing unit (GPU) chips as demand for artificial intelligence and data centers rises.

> “We hope to start producing made-by-Malaysia GPUs and chips within the next five to ten years,” he said.

As a significant player in the semiconductor industry—responsible for 13% of global testing and packaging—Malaysia is targeting over $100 billion in investment within the sector.

The Southeast Asian nation is well-positioned to attract more business, especially as Chinese chip companies seek diversification overseas for their assembly needs. Recently, Malaysia has secured multibillion-dollar investments from major firms such as Intel and Infineon.

Moreover, Malaysia received substantial digital investments from leading tech firms last year, including Google’s parent company Alphabet, further boosting its economy. Growth surpassed market expectations in the second and third quarters, leading to the ringgit’s status as one of Asia’s top performers in 2024.

(This story has been refiled to fix formatting of links in paragraphs 9, 10)