MSE's RM90 Mln Matching Fund Launched To Position M'sia As Advanced Semiconductor Packaging Hub

KUALA LUMPUR, July 17 (Bernama) -- Malaysia’s Science Endowment matching fund for the semiconductor sector amounting to RM90 million, has been launched to position the country as a global hub in advanced packaging technology, an area currently dominated by a handful of countries such as Taiwan.

Deputy Prime Minister Datuk Seri Fadillah Yusof said that the semiconductor matching fund is expected to modernise Outsourced Semiconductor Assembly and Test (OSAT) towards advanced packaging, in line with the vision of the National Semiconductor Strategy.

"This strategic initiative will also meet the growing global demand for artificial intelligence (AI) chips and boost the country's electrical and electronics (E&E) exports.

"I would like to emphasise that this is not just a form of government investment but also an open invitation to the local industry to step forward, explore new research opportunities, innovate boldly, and strengthen Malaysia's position in the global value chain for next-generation semiconductor manufacturing," he said.

He said this at the 30th Anniversary of the Academy of Sciences Malaysia (ASM) and the 2024 and 2025 Fellow Awards ceremony here tonight. Also present were the Minister of Science, Technology and Innovation (MOSTI) Chang Lih Kang and the President of ASM, Datuk Dr Tengku Mohd Azzman Shariffadeen.

Fadillah said the country's achievement of climbing 11 places to the 23rd in the World Competitiveness Ranking by the Institute for Management Development 2025 recently should serve as a catalyst to further  strengthen local technological innovation and expand strategic cooperation between the research and industry sectors.

He noted that Malaysia is now in a crucial phase of enhancing its competitiveness by transitioning to a knowledge-based and innovation-driven economy, shifting from a 'Made in Malaysia' model to 'Made by Malaysia', in line with the emphasis of the 13th Malaysia Plan.

"To realise this aspiration, the government through ASM must unite expertise, coordinate resources, and strengthen the cooperation between the government, industry, academia, and the community," he said.

In conjunction with Malaysia's ASEAN chairmanship this year, Fadillah urged scientists and researchers to strengthen regional cooperation networks.

"Malaysia is committed to playing a leading role in driving mission-oriented research at the regional level to address shared challenges such as climate change, food security, and the development of ASEAN regional supply chains.

"I have been informed that ASM has produced a foresight report titled 'ASEAN Ahead: ASEAN STI Ecosystem Foresight 2035 and Beyond' which is scheduled for launch during the upcoming ASEAN Summit in October. This document will serve as the foundational reference for the preparation of the 'ASEAN Plan of Action for Science, Technology and Innovation (APASTI 2026-2035),'" he said.

Meanwhile, Chang said ASM’s uniqueness lies in its ability to deliver evidence-based research and conduct strategic engagement across sectors and ministries to address increasingly complex contemporary challenges.

"This approach serves as a key driver for more authoritative, forward-looking, and resilient decision-making at both the state and federal levels.

"Several strategic roadmaps of MOSTI also benefited significantly from ASM’s contribution, including the Research, Development, Innovation, Commercialisation, and Economy Roadmap; the Hydrogen Economy and Technology Roadmap; the National Planetary Health Action Plan; and the National Nuclear Technology Policy," he said.

At the event, Fadillah also presented the ASM Fellow award to three individuals as Senior Fellows and 63 new ASM Fellows for the years 2024 and 2025, comprising scientists, engineers, and leading technology experts of the country.

To date, ASM has 535 Fellows consisting of 30 Senior Fellows and 505 Ordinary Fellows. The titles “Academician” and “FASc” are the highest scientific honours in the country under the Academy of Sciences Malaysia Act 1994.

-- BERNAMA