Deputy Minister of Investment, Trade and Industry Liew Chin Tong emphasised Malaysia's commitment to reinforcing international ties to protect the global semiconductor supply chain amidst potential protectionist policies following Donald Trump's victory in the US presidential election.
Speaking at the sidelines of the MSIA 2024 National Electrical and Electronics Forum today, Liew noted that Prime Minister Datuk Seri Anwar Ibrahim had worked diligently during his recent visit to Brazil to establish connections between Malaysia's semiconductor industry and its Brazilian counterpart.
"Malaysia Semiconductor Industry Association (MSIA) is also in discussions with its counterpart in the Netherlands, while the government is collaborating with ASEAN countries on semiconductor initiatives.
"We are holding serious talks with Saudi Arabia as part of our strategy to prevent disruptions in the global supply chain," he said.
Malaysia, as the world's sixth-largest semiconductor exporter, accounted for 7% of the global market share and contributed 23% of US semiconductor trade in 2022, Liew highlighted.
"The entire world is still exporting to the US, and we aim to continue close cooperation with the US," he added.
Trump, who is set to be sworn in as the 47th US President on 20 January next year, had previously implemented swift tariffs during his presidency from 2017 to 2021 to protect the US economy and address trade imbalances.
When asked whether Malaysia's semiconductor exports to the US might decline due to such protectionist measures, Liew responded, "The government will monitor the situation closely."
Meanwhile, MSIA President Datuk Seri Wong Siew Hai predicted single-digit growth for the semiconductor industry in 2025, driven by global economic trends.
"We've seen robust E&E investments this year. Our E&E exports for the January-October period totalled RM491 billion, a 1.5% increase from last year. I'm optimistic we can reach RM600 billion," Wong stated during his keynote address at the forum.
Global semiconductor sales reportedly fell by 8.2% to US$527 billion in 2023, while Malaysia's E&E exports declined by 3% to RM575.45 billion last year after recording a 30% growth to RM593 billion in 2022.
