KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 3 September 2025 - Malaysia's semiconductor ambitions are moving in step with its role as ASEAN chair, with investment momentum signalling a larger regional shift in the global chip supply chain. In the first half of 2025, the country secured RM190.3 billion (USD45.2 billion) in approved investments, an 18.7 per cent increase over the same period last year. Singapore was the largest foreign investor with RM43.4 billion (USD10.3 billion), reflecting strong cross-border confidence in Malaysia's trajectory. Over 89,000 new jobs to be created through projects spanning manufacturing, services and the primary sector. The electrical and electronics (E&E) industry stood out with RM13.1 billion in new commitments, highlighting Malaysia's push to evolve beyond its traditional role in assembly and testing. The National Semiconductor Strategy (NSS), launched in 2024, has already attracted RM54.2 billion in its first year, marking a strong start towards the government's RM500 billion target by 2030. "What investors are responding to is Malaysia's ability to deliver. In semiconductors, that means proven ecosystems in Penang and Johor, strong links with Singapore, and a pipeline of trained engineers ready to take on higher-value roles. The NSS gives us a clear direction, but credibility comes from how quickly projects move from approval to operation. On that front, Malaysia is building real trust," said Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA). Moving Upstream In March 2025, Malaysia signed an agreement with Arm Holdings Plc to gain access to the UK-based firm's design library – aiming to produce its own chips within the next decade. Malaysia currently controls seven per cent of the global semiconductor market, with six out of the 12 largest semiconductor companies globally operating in the country. This share is expected to increase as semiconductor players worldwide turn to Southeast Asia for a stable microchip supply chain, as the US-China trade war escalates. A Turning Point for Local SMEs At home, small-medium enterprises (SMEs) such as CG Global Profastex hail the NSS as "a turning point" in moving beyond traditional manufacturing into higher-value activities like advanced test development, product design enablement, and process automation. Operating out of Penang for almost a decade now, CG Global serves both front-end and back-end semiconductor-related customers – particularly in equipment, test, and automation subsystems – in Malaysia and selected ASEAN markets. "Traditionally, EMS SMEs operated in transactional roles—limited to basic assembly or support functions. Today, under the NSS framework, we have been actively encouraged to move up the value chain. "It pushes us to upgrade our infrastructure, adopt advanced technologies, and build the capabilities needed to support complex, precision-driven industries," said CG Global managing director Siti Padillah Binti Abdul Wahab. Siti Padillah said the company plans to apply for NSS-aligned funding to scale up production capacities and adopt digital tools in order to strengthen Malaysia's position within ASEAN semiconductor landscape. "With the NSS as our guide, we are investing in the future—so Malaysia can lead not only in volume, but in value," she added. If anything, CG Global reflects the confidence boost that hundreds of homegrown enterprises have received from the NSS to pursue larger ambitions and greater appetite for growth. Going Global as a Region In 2024, the ASEAN semiconductor market was valued at US$95.91 billion, making up 15 per cent of the global semiconductor market that reached a record high of US$627.6 billion. The region's market share is set to soar in the coming months, thanks to the newly-launched Johor-Singapore Special Economic Zone (JS-SEZ), which combines Singapore's upstream excellence and Malaysia's Outsourced Semiconductor Assembly and Test (OSAT) strength. Johor emerged as Malaysia's top state for approved investments in the first half of 2025, recording RM56 billion (USD13.3 billion). Among the early movers was Japan's Ferrotec Group, a leading supplier of materials, components and equipment for the global chip industry. The company commenced operations at its new facility in Johor in April 2025, supporting both regional and international customers. "The JS-SEZ offers efficient cross-border logistics and connectivity with Singapore, which is critical for our operations," said Soo Kim Fatt, director of Ferrotec Power Semiconductor Malaysia. "Its proximity to Singapore provides excellent transport accessibility, making it easier for international customers, partners, and overseas colleagues to visit Johor Bahru for meetings, technical support, and collaboration." "The JS-SEZ is more than just proximity. It gives investors access to Singapore's...