In line with Donald Trump becoming US President effective this month, now Economy Minister Rafizi Ramli shared with the FT, saying Malaysia is expected to see increased investment from technology companies and chip developers from China.
This move is seen in line with Donald Trump who is expected to impose higher tariffs on Chinese companies, which could reach up to 60%.
Today, various American companies have operations in Malaysia – especially for semiconductor production in Penang, and also data centers in Johor. Although US firms dominate this sector, the Economy Minister said Malaysia may see Chinese firms start increasing investment in their efforts to reduce tariffs imposed by the US, in addition to expanding markets outside China.
At the same time, the Minister also targeted that moving forward, various investors will not only see Malaysia for production, but see Malaysia playing a more prominent role in chip design. This is also in line with the target to position Malaysia not just as a manufacturer, but moving up the semiconductor production chain.