In a bid to enhance its position as a global manufacturing hub, Malaysia is actively pursuing foreign investments in high-value sectors like electric vehicles (EVs), semiconductors, and carbon capture, according to the country's Trade and Investment Minister, Tengku Zafrul Aziz.
With a well-established reputation in manufacturing, Malaysia now seeks to ascend the value chain within industries such as energy and electricals. Tengku Zafrul Aziz emphasized the importance of attracting the right kind of investments that generate meaningful spillover effects for the country.
Malaysia is exploring new avenues such as carbon capture, utilization, and storage, capitalizing on its abundant oil resources. Additionally, the nation is poised to become a key supplier of components for EVs, given its robust electrical and electronics industry, especially in semiconductor chip production.
Tengku Zafrul Aziz underscored the natural progression of EV manufacturing in Malaysia, backed by its prowess in the electrical and electronics sector. He mentioned that the country plays a pivotal role in supplying numerous components required for electric vehicles, with each EV estimated to incorporate over 1,400 chips.
Furthermore, Malaysia aspires to advance beyond assembly and testing in the semiconductor industry. Currently accounting for about 13% of global testing and packaging, the nation aims to shift its focus to the front end, encompassing integrated circuit design and wafer fabrication.
In addition to EVs and semiconductors, Malaysia has its sights set on attracting foreign investments in aerospace, petrochemicals, the digital economy, and pharmaceuticals.
Trade and Investment Minister Tengku Zafrul Aziz is set to meet with potential investors in the United States in the upcoming week, preceding meetings with leaders of the Asia-Pacific Economic Cooperation (APEC). These efforts align with Malaysia's drive to foster economic growth and innovation through strategic foreign investments in high-value industries.