Selangor and Penang are positioned to mutually benefit from increased investment in the semiconductor sector, leveraging each other's strengths to bolster Malaysia's standing in the industry.

Selangor Menteri Besar Dato' Seri Amirudin Shari emphasised that while Selangor is still developing its semiconductor industry, it stands to gain from Penang's extensive 50-year experience. He noted that Selangor's focus is on attracting high-impact investments to further develop its capabilities.

Addressing attendees at the 8th Selangor ASEAN Business Conference (SABC) held at the Kuala Lumpur Convention Centre, Amirudin described Selangor as the "new kid on the block" but insisted that this should not be seen as a challenge to Penang. Instead, he argued for a collaborative approach where healthy competition can drive both states to new heights.

"Penang has established itself as a semiconductor hub since the 1980s, with the industry becoming a cornerstone of its economy," Amirudin said. "The semiconductor industry encompasses three key segments: integrated circuit (IC) design, advanced packaging, and wafer fabrication. Selangor's strategy is to start with IC design and build out the complete ecosystem gradually."

He expressed his belief that rather than viewing Penang as a competitor, Selangor should see the situation as an opportunity for collaboration, enhancing Malaysia's overall semiconductor industry strength.

The Menteri Besar also highlighted Selangor's proactive measures, including leveraging the trade tensions between China and the United States to attract semiconductor businesses to the state. He underscored the importance of states learning from each other and capitalising on their respective strengths.

In addition, Amirudin noted that Selangor has introduced a soft landing programme to support companies relocating to Malaysia, facilitating smoother transitions into the local market. The recent launch of the IC Design Park in Puchong, Southeast Asia's largest, was cited as a significant step forward. He hinted at the potential for more similar parks in the future, reflecting Selangor's commitment to expanding its semiconductor industry infrastructure.

SABC, part of the First Series of the Selangor International Business Summit (SIBS) 2024, served as the platform for this dialogue on Malaysia's premier investment destinations.