Malaysia Seeks to Draw Foreign Investments in EV and Chip Industries

KUALA LUMPUR – Malaysia is actively seeking foreign investments in high-value sectors such as electric vehicles, semiconductors, and carbon capture, according to the nation’s trade and investment minister.

Traditionally recognized as a manufacturing hub, Malaysia aims to advance its capabilities in established industries like energy and electricals.

"We need to focus on attracting the right type of investment, as not all investments yield the spillover benefits we desire," Tengku Zafrul Aziz shared in an interview.

The minister highlighted Malaysia’s potential in emerging fields such as carbon capture and component production for electric vehicles. He noted that electric vehicles represent a logical advancement for Malaysia, which has a strong foundation in the electrical and electronics industry, particularly in semiconductor production.

"Electric vehicles are crucial for us, as we provide many components essential for their manufacturing," Tengku Zafrul explained, pointing out that a single electric vehicle can require over 1,400 semiconductor chips.

In the semiconductor sector, Malaysia aims to move beyond basic assembly and testing functions. Currently, the country plays a significant role in the industry, contributing approximately 13% of global testing and packaging. "Our goal is to progress to the front end of the semiconductor process, which includes integrated circuit design and wafer fabrication," he added.

Additionally, Malaysia is looking to attract investments in aerospace, petrochemicals, the digital economy, and the pharmaceutical sector.

Tengku Zafrul plans to meet potential investors in the United States next week, ahead of engagements with leaders from the Asia-Pacific Economic Cooperation (APEC).