Implement Comprehensive Strategy To Attract Semiconductor, High-tech Industries To Malaysia - RHB IB
KUALA LUMPUR, Feb 18 (Bernama) -- Malaysia should implement a comprehensive strategy to attract semiconductor and high-tech industries to the country, according to RHB Investment Bank Bhd (RHB IB).
In a note today, the investment bank said the strategy includes government support, talent attraction, education reforms and industry recognition.
It said the government must be prepared to provide substantial subsidies, tax incentives, and special pricing for power and water to make the country competitive for investments.
“Efforts should be made to bring back experienced Malaysian semiconductor professionals working abroad, by offering special incentives and making the Malaysia My Second Home (MM2H) programme more attractive for expatriates.
“Strengthening universities by increasing engineering and technology programme intakes, aligning curricula with industry needs, and fostering research collaboration with companies will also help build a skilled local workforce,” it said.
RHB IB said recognising industry leaders, scientists and key contributors could also inspire greater participation in high-tech industries and drive motivation for research and development (R&D).
“Highlighting their achievements not only fosters innovation but also encourages the next generation to contribute to technological advancements,” it noted.
To strengthen its position in the semiconductor and software industries, Malaysia could collaborate with ASEAN to establish a regional cluster or hub, said RHB IB.
The bank said that working closely with Singapore will help attract major players like Micron, GlobalFoundries and Lam Research – by offering these companies incentives to expand their operations into Malaysia.
“Facilitating the seamless movement of equipment, materials and engineering support between the two countries can also enhance supply chain efficiency,” said the bank.
At a broader ASEAN level, RHB IB said linking with Thailand, Vietnam, and the Philippines could provide a cost-effective alternative to China for production activities.
It added that encouraging free trade and the smooth flow of materials within ASEAN can further enhance regional competitiveness.
“Positioning ASEAN as a China+1 alternative for semiconductor, software and equipment production will strengthen the region’s role in global supply chains, making it an attractive destination for high-tech investments,” it added.
According to RHB IB, semiconductor equipment investments are expected to double from US$100 billion (US$1=RM4.42) today to US$200 billion over the next decade, reflecting the increasing demand and continued advancements in semiconductor technology.
-- BERNAMA
