Malaysia diversifies its E&E value chain to reduce semiconductor dependence risks

Traders Union
All News
Financial News
Malaysia reduces semiconductor risks

Highlights

Through NIMP 2030 and the National Semiconductor Strategy, the Malaysian government aims to strengthen the E&E value chain, focusing on circuit design and advanced packaging.
The 21 sectors under NIMP 2030 are expected to contribute RM897 billion to Malaysia's economy in 2025, including through increased high-value-added activities.
Matrade is expanding exports to non-traditional markets such as Central Asia, Africa and Latin America to reduce global semiconductor dependence risks.

This article was translated from the original. Read the original version by our correspondent here.

Government strategy under NIMP 2030

As reported by The Edge Malaysia, Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said the government aims to strengthen and diversify the electrical and electronics value chain through the New Industrial Master Plan 2030, or NIMP 2030, and the National Semiconductor Strategy. The focus is on technology-intensive, high-value-added activities such as integrated circuit design and advanced packaging.

He said the measures are intended to enhance the country's export resilience in the event of a downturn in the global semiconductor industry cycle. Responding to a question in the Dewan Rakyat, Johari also said the government is diversifying sources of growth beyond the E&E sector while strengthening domestic supply chains.

According to him, 21 sectors under NIMP 2030, including the services sector, contributed RM897 billion in 2025. The plan is designed to increase economic complexity, encourage high-value-added activities and create more job opportunities.

Impact on exports and economic direction

Johari said the Ministry of Investment, Trade and Industry, through the Malaysia External Trade Development Corporation, or Matrade, is continuing to proactively expand export destinations. Measures include exploring non-traditional markets such as Central Asia, Africa and Latin America.

Responding to a supplementary question on prioritising high-value-added products and greater local technology ownership, he said the government had held several rounds of engagement with local companies. He said decisive action is needed in the country's long-term interest to protect Malaysia's economy and reduce dependence on other countries that could affect the domestic economy.

In our previous coverage of semiconductor allocations under the Budget 2027, we outlined the RM1.2 billion injection by Khazanah Nasional Bhd and KWAP to help local companies move into higher-value technology segments. The article also highlighted the GEAR-uP initiative, which mobilises domestic investment, as well as the establishment of strategic funds in Selangor and Penang to strengthen the microelectronics ecosystem, including integrated circuit design and advanced packaging.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.