MIDA Pushes Deeper Local Participation In Semiconductor Value Chains
KUALA LUMPUR, May 7 (Bernama) -- Malaysia must continue attracting strategic, high-quality investments while ensuring that local companies capture greater share of the value created by global investors operating in the country, said Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid.
Speaking at the “Advancing Malaysia’s Semiconductor Ecosystem Through Strategic Supply Chain Integration & Capability Enhancement” forum, held on May 6, in conjunction with SEMICON Southeast Asia 2026, Sikh Shamsul Ibrahim said the session formed part of broader efforts to strengthen the country’s semiconductor ecosystem and enhance supplier capabilities.
The forum was also attended by Deputy Minister of Investment, Trade and Industry Sim Tze Tzin, Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai, and UOB Malaysia managing director and country head of wholesale banking Andy Cheah.
“This forum provides a platform to strengthen linkages, identify capability gaps, and facilitate business matching and partnerships between multinational anchor investors and Malaysian suppliers.
“It also addresses a question that is now central to the global semiconductor strategy: how much of the value created in Malaysia is ultimately captured within the country,” Sikh Shamsul Ibrahim said in his opening remarks.
He outlined three of MIDA's flagship programmes that are most relevant to the forum's theme. The first is the Enterprise Growth Platform (EGP), which supports Malaysian companies seeking to scale into anchor supply chains, export markets and strategic partnerships.
"Last week, on April 27, we ran our Northern EGP programme in Sungai Petani, Kedah, bringing together state government, financiers, regulators, and export promotion partners in one room with companies in the Northern Region.
“We will continue rolling out this format to other regions in the months ahead," he said.
The second is MIDA's Supply Chain Programme, which connects multinational anchor investors directly with qualified Malaysian suppliers.
The Infineon Vendor Development Programme is a leading example in the semiconductor sector, with participating Malaysian firms progressing beyond basic services into higher-value capabilities such as high-precision tooling, automated test equipment, and cleanroom engineering, he added.
The Infineon Vendor Development Programme is a leading example within the semiconductor sector, with participating Malaysian firms progressing beyond basic services into higher-value capabilities such as high-precision tooling, automated test equipment, and cleanroom engineering, he added.
Sikh Shamsul Ibrahim added that MIDA’s 2025 partnership with Arm Ltd, would enable selected Malaysian small and medium enterprises (SME) to access world-class chip design intellectual property, supporting the country’s integrated circuit design ambitions.
The third is the #InvestLokal initiative, a communication campaign that repositions MIDA as a partner to domestic investors and features real SME success stories on digital platforms in Bahasa Malaysia.
"Visibility translates into participation, and participation builds the depth of our supplier base," he said.
Sikh Shamsul Ibrahim said these efforts are being carried out in close coordination with sister agencies under the Ministry of Investment, Trade and Industry (MITI) and other government partners, ensuring that financing, technical assistance, and market access are aligned with industry needs.
“These programmes are not abstract. They support the engineering firms, precision manufacturers, materials specialists and test houses that make up the layer of the value chain this forum is designed to address,” he said.
He also highlighted the growing interlinkages between the semiconductor and automotive sectors, particularly in areas such as electric vehicles, advanced driver-assistance systems and smart mobility solutions.
"Semiconductors have become the backbone of modern automotive manufacturing," he said, citing power chips, sensors, battery management systems and vehicle connectivity as core enabling technologies.
He added that strengthening this integration would reinforce both Malaysia’s semiconductor ambitions and the competitiveness of its automotive industry within regional and global value chains.
During the forum, MIDA signed a memorandum of understanding with MSIA to strengthen joint capability mapping, supplier readiness assessments and coordinated outreach to anchor investors.
"MIDA values MSIA's direct line to industry, and this partnership will allow our work to reach Malaysian semiconductor firms more effectively," Sikh Shamsul Ibrahim said.
The event also witnessed the launch of Malaysia Advanced Packaging Consortium, with founding members SkyeChip, Fusion AP, Inari, Pentamaster, and NSW Automation.
-- BERNAMA