PENANG stands as a premier investment destination for foreign companies, particularly in advanced packaging (semiconductors), electrical and electronics (E&E), and other high-tech sectors.
However, many may not realise that Malaysian companies, established as far back as the early 1980s, have the capability to play a crucial role in the global supply chain.
According to Datuk Seri Wong Siew Hai, president of the Malaysia Semiconductor Industry Association (MSIA), these local companies have built a robust automation and precision-machining platform, extending beyond merely supporting the semiconductor, Integrated Circuit (IC) design, or advanced packaging industries.
“Beyond these sectors, we must shift our focus towards the equipment industry – a critical area that has been overlooked as companies concentrated on their core businesses,” Wong remarked during the launch ceremony of the Advanced Technology Equipment Cluster (ATEC) programme at Amari SPICE Penang in Bayan Lepas today.
ATEC, an initiative of MSIA, will be spearheaded by leading companies such as ViTrox Technologies Sdn Bhd, Greatech, and Pentamaster Corporation Bhd. This new programme is set to accelerate the localisation of equipment used by multinational companies relocating to Malaysia.
Deputy Investment, Trade, and Industry Minister Liew Chin Tong highlighted that ATEC’s primary goal is to unify local companies specialised in the equipment industry, fostering collaboration to enhance their global supply chain presence.
“For instance, when a multinational company chooses to invest in Malaysia, ATEC member companies can assist in localising their equipment, creating a win-win situation.
“This not only strengthens the multinational’s supply chain but also enables Malaysian companies to expand and secure a larger market share, directly benefiting from foreign investments.
“We envision the equipment industry extending its impact beyond semiconductors, into sectors like agriculture, healthcare, and furniture, where the integration of technology is increasingly vital,” Liew added.
Liew also expressed confidence in achieving Prime Minister Datuk Seri Anwar Ibrahim’s ambition of developing 10 Malaysian technology companies with annual revenues of US$1 billion and 100 more with RM1 billion, as outlined in the National Semiconductor Strategy (NSS) introduced in June this year.
Meanwhile, Chief Minister Chow Kon Yeow, who officiated the launch, emphasised the importance of a balanced approach to the Federal Government’s localisation efforts, ensuring they are favourable to both investors and local companies.
“We want to avoid making investors uncomfortable with overly stringent localisation policies, but it is essential to empower local companies to support these investments.
“Investors must recognise that they can significantly benefit from our local ecosystem, talent pool, and other resources to establish a strong presence here.
“So, it is crucial for them to seriously consider involving local companies in the localisation of their equipment, ensuring a mutually beneficial relationship,” Chow said.
He further underscored the necessity for local companies to embrace this challenge and focus on strengthening the local supply chain.
Source From : Penang emerges as top investment hub for high-tech sectors, driving Malaysia’s global supply chain