HR Minister urges semiconductor industry to re-imagine Penang's future

GEORGE TOWN: Industry leaders should turn uncertainty into opportunity and accelerate Malaysia's transition into a high-value economy driven by innovation, says Steven Sim.
"They should boldly re-imagine Penang's future, one that shifts the state's economic force from Made in Malaysia to Made by Penang/Malaysia, transforming it from an outsourced manufacturing hub into an innovation-driven economy," said the Human Resources Minister.
He was speaking at two industrial dialogues organised by InvestPenang over the weekend jointly with Deputy Investment, Trade and Industry Minister Liew Chin Tong and Invest Penang chief executive officer Datuk Loo Lee Lian.
The event gathered over 30 key stakeholders from Penang's semiconductor and advanced technology sectors, including those from multinational corporations and local small and medium enterprises.
Sim said nurturing local talent, developing homegrown technology and attracting strategic investments would empower Penang-based companies to not only serve global supply chains through manufacturing but innovate and design proprietary technologies backed by local expertise.
In a statement, Sim said more than RM40bil in financing and guarantees have been mobilised to empower micro, small and medium enterprises (MSMEs), the backbone of local industry and job creation.
"At the same time, government-linked investment companies will channel more than RM100bil domestically under the five-year (2024-2028) GEAR-uP programme to spur long-term growth.
"To reinforce household spending power, the government has approved civil service pay hikes and raised the private sector minimum wage, ensuring an additional RM20bil in extra income being spent in the economy.
As the Asean chair, Sim stated that Malaysia is leading efforts to strengthen the grouping's role as a cohesive regional economic bloc, where a recent joint statement by ASEAN economic ministers reaffirmed the region's united stance in navigating global economic challenges and external market volatility.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Malay Mail

an hour ago

• Malay Mail

Tengku Zafrul: Google's Malaysia investment to boost AI growth, create jobs

KUALA LUMPUR, June 22 — Tech giant Google's investment in Malaysia is expected to continue driving Malaysia's artificial intelligence (AI) and cloud computing economy. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, who is currently on a working visit to Washington, United States, met with Google representatives to discuss how the company can continue to drive AI development in Malaysia, strengthen cybersecurity and invest in digital skills. 'The government is committed to providing full support and ensuring a conducive investment climate for high-quality investments,' he said in a Facebook post. He added that Google's strategic investment of RM9.4 billion to set up its first data centre and Google Cloud region in Malaysia is expected to generate RM15.04 billion in long-term economic impact and create 26,500 jobs by 2030. 'Thank you, Google, for your continued confidence in Malaysia. Together, we are building a brighter digital future,' he said. — Bernama

Barnama

2 hours ago

• Barnama

Economists Cautious On Malaysia's 2025 Trade Prospects Amid Tariff Uncertainty

UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the evolving United States (US) trade tariff regime is poised to exert significant pressure on global trade dynamics, with notable implications for Malaysia's export-driven economy. KUALA LUMPUR, June 22 (Bernama) -- Economists are maintaining a cautious stance on Malaysia's trade outlook this year due to persistent global tariff uncertainty, which is expected to weigh on the country's trade and manufacturing performance. Mohd Sedek said data from May 2025 illustrates early effects. Malaysia's exports to the US declined by 2.8 per cent month-on-month to RM18.68 billion from RM19.22 billion in April, reflecting broader market adjustments. 'While global trade is unlikely to collapse, a moderation in export volumes is anticipated, with the full economic impact becoming clearer within three months of tariff implementation,' he told Bernama. He said that as a key player in ASEAN, Malaysia's trade-dependent sectors such as electronics, palm oil, and manufactured goods face both challenges and opportunities amid these disruptions. According to the Ministry of Investment, Trade and Industry (MITI), Malaysia's trade increased by 2.6 per cent in May 2025 to reach RM252.48 billion, marking the 17th consecutive month of year-on-year growth since January 2024. 'This aligns with global trends, as rising geopolitical frictions, particularly US-China trade tensions, prompt supply chain reconfigurations, including re-shoring (bringing production back to domestic markets), friend-shoring (relocating to allied nations), and near-shoring (shifting to geographically proximate countries),' he explained. Among Malaysia's top 10 export destinations, only four -- China, the European Union, Taiwan, and Vietnam -- recorded month-on-month export growth, underscoring uneven trade resilience. In a statement today, it said exports moderated 1.1 per cent to RM126.62 billion, while imports grew 6.6 per cent to RM125.86 billion. Trade surplus for the month stood at RM766.3 million, marking the 61st consecutive month of trade surplus since May 2020. Malaysia's Edge in ASEAN Supply Chain Realignment Mohd Sedek said Malaysia's strategic position within ASEAN positions it as a potential beneficiary of the shifts in production base. The region's growing role as a hub for friend-shoring and near-shoring, driven by its proximity to major markets like China and its relatively stable political environment, enhances Malaysia's appeal as an alternative manufacturing base. 'For instance, multinational corporations seeking to diversify away from China due to tariffs or geopolitical risks are increasingly eyeing ASEAN nations. 'Malaysia's robust electronics sector, which accounts for approximately 40 per cent of its exports, stands to gain from such reconfigurations, particularly as firms relocate semiconductor and component manufacturing to Penang and Johor,' he said. Moreover, Malaysia is leveraging its ASEAN membership to bolster trade diversification. The Regional Comprehensive Economic Partnership (RCEP), which includes ASEAN and major economies like China, Japan, and South Korea, provides Malaysia with access to a market of 2.2 billion consumers, cushioning the impact of US tariffs. 'These gains reflect Malaysia's proactive pivot towards emerging markets, reducing reliance on traditional partners like the US,' he said. Tapping Semiconductor Growth Through Strategic Position Meanwhile, Mohd Sedek said, Malaysia can ride on the projected 12.5 per cent growth in global semiconductor sales by leveraging its strategic ASEAN position and aligning with friend-shoring trends. Deeper integration under RCEP and strengthened partnerships with Singapore and Vietnam will reinforce regional supply chain resilience. He advised that to attract firms shifting from China, Malaysia should build on the RM83 billion in electrical and electronic (E&E) foreign direct investment secured in 2024 and offer targeted incentives. Moving up the value chain into chip design and fabrication, backed by institutional support and workforce upskilling, is essential, he said. 'Although a potential 10 per cent US tariff may dampen exports and gross domestic product, diversifying into markets like India and Saudi Arabia, alongside investments in green manufacturing, Industry 4.0, and a gradual shift towards Industry 5.0, will position Malaysia as a neutral, high-tech hub in an increasingly fragmented global trade landscape,' he added. According to MITI, exports of E&E products continued to be resilient, registering an increase of nearly RM4 billion in May -- consistent with the World Semiconductor Trade Statistics forecast of an 11.2 per cent increase in global semiconductor sales in 2025. Echoing Mohd Sedek, RHB Investment Bank Bhd anticipates a slowdown in trade momentum as the effects of front-loading activities have dissipated. The investment bank said in the event of renewed tariff tensions following the expiration of the tariff pause, sectors heavily reliant on demand from the US and China -- as well as those with strong export orientation, such as E&E, crude materials, and machinery -- are expected to bear the brunt of both direct US tariffs on Malaysia and broader spillover effects from ongoing trade tensions. 'Furthermore, potential slower growth in major economies and lingering uncertainties over tariff tensions (especially after the pause period) pose significant downside risks to Malaysia's trade and growth outlook, reinforcing our cautious stance,' it added. -- BERNAMA BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies. Follow us on social media : Facebook : @bernamaofficial, @bernamatv, @bernamaradio Twitter : @ @BernamaTV, @bernamaradio Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial TikTok : @bernamaofficial

New Straits Times

3 hours ago

• New Straits Times

Google's RM9.4bil investment to create over 26,000 jobs, says Tengku Zafrul

KUALA LUMPUR: Google's landmark RM9.4 billion investment to establish its first data centre and Google Cloud Region in Malaysia is expected to create 26,500 jobs and generate RM15.04 billion in long-term economic impact. Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz described the move as a multi-faceted strategic boost. "We discussed how Google can continue to drive Malaysia's AI and cloud computing economy, strengthen cybersecurity, and invest in digital skills," he said in a Facebook post yesterday. Tengku Zafrul added that the government remained committed to providing full support and ensuring a conducive environment for high-quality investments. According to Bernama, Tengku Zafrul met with Google representatives to discuss how the company can continue to drive AI development in Malaysia, strengthen cybersecurity and invest in digital skills. He is currently on a working visit to Washington, United States. In May, Malaysia Digital Economy Corporation (MDEC) chief executive officer Anuar Fariz Fadzil said Malaysia is rapidly cementing its position as a leading destination for data centre investments in Southeast Asia. Anuar added that global technology giants are pointing to stable governance, clear digital strategies and strong institutional coordination as key enablers. Meanwhile, investor confidence is being driven by the country's coherent policy direction, effective public-private collaboration, reliable power infrastructure, low disaster risk and commitment to long-term sustainability.