Prime Minister Anwar Ibrahim believes Malaysia is poised to become a leading centre for global chip production – and he is willing to invest in homegrown technology talent. His goal is to have 60,000 Malaysians train to become highly skilled semiconductor engineers.

The Malaysian government plans to invest a minimum of 25 billion ringgit (US$5.33 billion) over the next decade to cultivate talent and expand domestic companies as part of the newly unveiled National Semiconductor Strategy.

Funding for talent development will be sourced primarily from sovereign wealth funds, with the programme enabling trainees to specialise in areas of chipmaking such as design, packaging, and testing. It will also feature collaborations with universities and corporations.

“Our vision is to create an ecosystem driven by dynamic Malaysian firms and world-class talent,” the Prime Minister said, “while partnering with global companies – to compete regionally and globally based on innovation and creativity.”

Malaysia to compete in the global semiconductor industry

The decision to hone local tech talent is in line with Malaysia’s bid to compete in the global semiconductor industry, which has become increasingly vital to the rise of other tech such as smartphones, computers, and cars.

By investing in a highly skilled workforce, Malaysia hopes to boost its local capabilities, attract more investments, and create higher-paying jobs.

The country is actively developing its semiconductor sector just as international businesses are revamping their supply chains and searching for alternative production hubs amid mounting tension between two tech powerhouses: the US and China.

“Today, I offer our nation as the most neutral and non-aligned location for semiconductor production to help build a more secure and resilient global semiconductor supply chain,” Prime Minister Ibrahim said.

Supporting Malaysian intellectual property in the tech sector

Malaysia’s semiconductor strategy outlines the government’s goal to attract 500 billion ringgit through domestic and foreign direct investments.

This approach is multifaceted. Attracting substantial funding for honing Malaysian talent is believed to bolster the country’s economic growth and enhance its competitiveness.

The strategy is also designed to assist local engineers in developing their own intellectual property, specifically in creating chip designs.

Supporting engineers in protecting their IP will not only foster innovation but also elevate the Southeast Asian country’s status as a creator of high-value technology, rather than just a manufacturer. This dual focus on investment and innovation can lead to sustainable economic and technological advancement.

Apart from establishing a local semiconductor industry, Malaysia has also introduced the Golden Pass to attract tech unicorns and venture capitalists to the country and assist them in setting up their local operations.

“We are positioning Malaysia as an axis for leaders in semiconductors, clean energy, agritech and Islamic fintech,” the Prime Minister said last month.