Malaysia to reduce reliance on the semiconductor sector by diversifying E&E value chains, boosting domestic industries and expanding export markets
KUALA LUMPUR: The government will reduce Malaysia’s risk of overdependence on the semiconductor sector by diversifying the electrical and electronics (E&E) value chain and sources of economic growth, as well as by expanding export markets.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said the measures aim to enhance the resilience of the country’s exports in the event of a cyclical downturn in the global semiconductor industry.
“Firstly, we will strengthen and diversify the E&E value chain. Through the New Industrial Master Plan 2030 (NIMP 2030) and the National Semiconductor Strategy (NSS), the government is focusing on high value-added and technology-intensive activities, such as integrated circuit design and advanced packaging.
“Second, the government will diversify sources of growth beyond the E&E sector and strengthen domestic supply chains,” he said during a question-and-answer session in the Dewan Rakyat today.
He was responding to a question from Muhammad Fawwaz Mohamad Jan (PN-Permatang Pauh) on diversification strategies in the event of a downturn in the global semiconductor cycle.
Johari said that 21 sectors under NIMP 2030, including the services sector, contributed RM897 billion in 2025.
The minister said the plan aims to increase economic complexity, promote high value-added activities and create more job opportunities.
Thirdly, he said, the Ministry of Investment, Trade and Industry (MITI), through the Malaysia External Trade Development Corporation (MATRADE), continues to proactively expand export destinations, including by exploring non-traditional markets such as Central Asia, Africa and Latin America.
Responding to a supplementary question from Datuk Adnan Abu Hassan (BN-Kuala Pilah) on efforts to ensure that export diversification prioritises high-value-added products and greater mastery of local technology, Johari said the government has held several rounds of engagement with local companies.
He said the government must take firm action in the country’s long-term interest to protect Malaysia’s economy and reduce dependence on other countries, which could adversely affect the domestic economy.