Semiconductor Sector To Benefit From Supply Chain Focus In 13MP – Economist

By Anas Abu Hassan & Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, July 29 (Bernama) – Malaysia’s semiconductor industry is poised to benefit from the upcoming 13th Malaysia Plan (13MP), as the government seeks to strengthen the country’s role in the global supply chain.

UniKL Business School economic analyst Associate Professor Dr Aimi Zulhazmi Abdul Rashid said the five-year plan comes at a pivotal time, amid shifting global trade patterns driven by geopolitical tensions and protectionist measures such as the United States' tariff policies.

“The semiconductor industry, which is the largest contributor within the manufacturing sector, is expected to spearhead Malaysia’s climb up the global value chain.

“In light of current US tariff headwinds, it is critical to position Malaysian manufacturers as key global players,” he told Bernama in an exclusive interview.

Aimi Zulhazmi said the 13MP should also outline clear strategies to advance Malaysia as a producer of high-end chips for artificial intelligence (AI) and advanced electronics.

He added that the plan must align with the New Industrial Master Plan (NIMP) 2030, which targets a six per cent growth in manufacturing’s contribution to gross domestic product (GDP), particularly through exports.

Boosting National Competitiveness

Meanwhile, economist Dr Nungsari Ahmad Radhi said the 13MP should address ways to enhance national competitiveness by improving the productivity of both firms and workers.

“Productivity means doing things better, and doing better things – which implies adopting newer, more efficient technologies,” he said.

He noted that if more local firms become globally competitive, higher-paying jobs will follow.

Nungsari stressed that development spending must prioritise education – improving the quality of teaching and the learning environment to uplift school standards.

“We have many universities, but more must be transformed into research centres that generate intellectual property in strategic fields such as semiconductors, AI and robotics,” he said.

Given the limited fiscal space for development expenditure, he argued that the 13MP must focus on fundamentals.

“Public funds should go towards public goods like education. At the same time, the government can offer fiscal incentives to encourage private sector investment in digitalisation, ESG (environmental, social, and governance) and renewable energy,” he added.

The 13MP is scheduled to be tabled in the Dewan Rakyat on July 31 by Prime Minister Datuk Seri Anwar Ibrahim.

-- BERNAMA