kuala lumpur: The government is working with the Malaysian Semiconductor Industry Association (MSIA) to improve the investment environment and ease of doing business to attract global semiconductor companies to relocate to Malaysia.
MSIA chairman Datuk Seri Wong Siew Hai said regulatory changes were needed to improve the investment environment along with streamlining operations.
Equally important, he said, is the reduction of bureaucracy, proper infrastructure development, necessary public works, and the creation of an industrial ecosystem including industrial clusters to support relocating companies.
“This will make Malaysia a preferred investment destination for well-known companies looking to expand and grow their business overseas due to the geopolitical tensions brought on by the US-China chip war.” said Wong, a 27-year veteran of the company. The semiconductor industry said in an interview with Bernama today.
He pointed out that the most important thing for Malaysia is not to lose sight of the fact that the semiconductor industry is the country’s “golden goose”.
“We need to carefully nurture and grow this industry and make it a globally significant industry,” Wong said, adding that institutions involved in attracting and approving investments, including state governments, should reduce bureaucracy and It needs to be easier to do business, he added.
He said Malaysia needed to prepare for foreign investment by building the necessary infrastructure rather than resting on its laurels amid regional competition.
These include power, water and airports, as well as boosting transport that will increase exports for businesses and countries.
Wong will develop an industrial ecosystem such as clusters, wafer fabrication (fabs) and assembly test facilities to make it more attractive for multinational companies to relocate to Malaysia, and will develop these to increase chip manufacturing capacity. He explained that it is important to build a new fab.
Competition is tough as these companies are being chased by countries such as Vietnam, Thailand, the Philippines and India, all of which are “trying to come in and get in the game.”
These measures to improve the investment climate are appropriate and even more important as the Madani government aims to rank Malaysia 12th in global competitiveness within 10 years, up from the current 27th place. .
To facilitate the necessary improvements in the investment, Mr Wong, who has long worked for Intel Penang, said MSIA collected feedback from the electrical and electronics (E&E) industry and passed it on to the government.
“The good news is that the government is working with MSIA,” he said, adding that MSIA’s feedback has led to online applications for expatriate work permits in the industry to be extended by six months from 2022 to 2023. ~12 months, but has now been shortened to just 10 days, he added. , just 5 days for those on a green lane or fast track basis.
“There may be other areas that are more difficult to resolve, but at least with political will and a willingness to work together, we can keep moving forward.
“If our rate of improvement is faster than theirs (other countries), we will be a favorable country for investment,” Wong said.
One of the main reasons for foreign semiconductor companies to relocate to locations other than their home base was the suspension of business due to the impact of the new coronavirus infection.
Recalling the pandemic, he said that not only Malaysia, but many countries such as Taiwan, the United States and Germany are unable to ship products.
“However, Malaysia was singled out as the country that stopped all car production around the world. This is because there are several semiconductor companies that manufacture car chips and car integrated circuits.
“To reduce such risks, many companies, especially those in the US and China, believe that they cannot stay in just one country and are relocating to other destinations to avoid US tariffs as well. We have decided.
“That’s how it all started (the scramble to find other investment destinations) and Malaysia turned out to be the perfect investment destination and beneficiary,” Wong said. – Bernama
