Investment IN SEMICONDUCTORS
Central to the Malaysian proposal is the recently introduced , National Semiconductor Strategy, under which the Malaysian government will invest RM25 billion ( US$ 5.33 billion ) to transform the nation into a global semiconductor hub.
Selangor’s integrated circuit design area and Penang’s offshore” Silicon Island” are currently in development. These initiatives reflect Malaysia’s efforts to advance its place within the world’s semiconductor business and to provide alternative products to China and the US.
Malaysia’s bid to get investments beyond the US- China rivalry is no exclusive, but the country is nicely- positioned to achieve. Despite lacking a huge domestic market, Malaysia offers exceptional infrastructure and connectivity, a trusted and experienced workforce, an extensive network of free trade agreements, and pro- business policies. Local political challenges appear to be dissipating, further enhancing Malaysia’s attractiveness as a solid and beautiful purchase place.
Despite this, Malaysia’s state of neutrality may gain more popularity if Anwar embraced the Indo-Pacific concept with the same enthusiasm. The US- China rivals, mainly over Taiwan and the South China Sea, continues to pose major challenges.
US-China decoupling strategies are causing an exceedingly disjointed global trading system by causing the worldwide economic disruptions brought on by the Russia-Ukraine conflict and the COVID-19 pandemic. Malaysia, with its remarkably open market and proper location in the Indo- Pacific region, stands to lose substantially if tensions escalate.
Obviously, as with other small and mid power, Malaysia wants to ensure its business remains insulated, or at worse, adaptable to these problems. One of the main components that has negatively impacted the Malaysian economy in recent years is that it opens up the door for other supply stores to grow.