MALAYSIAN semiconductor small and medium enterprises (SMEs) must understand multinational corporations’ (MNCs) technology, quality, capacity, cost, reliability and delivery requirements to compete for global business, says the Malaysia Semiconductor Industry Association (MSIA).
MSIA president Datuk Seri Wong Siew Hai said local SMEs needed to identify and address gaps in their capabilities to meet global supply chain standards.
“We want the growth of Malaysia’s semiconductor industry to create opportunities not only for global companies, but also for Malaysian firms to grow alongside them,” he said at the opening of the two-day SME-MNC Connect Day and SME Financing Conference 2026 in George Town.
Wong said the event aimed to give local SMEs direct access to MNCs to understand procurement requirements, supplier qualification processes and localisation opportunities.
Held under the theme “Grow Local, Compete Global”, the event drew about 200 participants and representatives from 15 MNCs, including AT&S, Intel, Infineon, TF AMD and MKS Instruments.
The first edition was held in Kuala Lumpur in April and attracted 170 participants.
Wong said the programme was created after discussions with SMEs and MNCs revealed a disconnect.
“Feedback from MNCs showed that some Malaysian companies were not ready, while SMEs told me they were prepared but lacked opportunities to prove themselves,” he said.
He noted that direct engagement helped MNCs explain their supplier requirements, selection criteria and localisation opportunities, while allowing SMEs to assess their readiness to become vendors.
“If the criteria are too high, a company may need further development.
“If it meets the criteria, it can participate in localisation projects,” he said, noting that SMEs often struggled to reach key decision-makers within large MNCs.
Wong said the direct engagement could help bridge that gap and allow MNCs to better understand the capabilities of Malaysian companies.
He said the initiative should not be viewed as a one-off event, as its success depended on the long-term business partnerships generated.
He urged local firms to enhance solution development, precision and quality to compete globally rather than focusing solely on regional markets.
He said MSIA would align its programmes with the National Semiconductor Strategy (NSS), particularly in strengthening Malaysia’s domestic ecosystem and building stronger local companies.
Wong said Malaysia must move beyond being a manufacturing location and develop more Malaysian companies with the technology and scale to create greater value.
“This is an important part of Malaysia’s transition from ‘Made in Malaysia’ to ‘Made by Malaysia’,” he emphasised.
Penang trade committee chairman Goh Choon Aik said attracting MNC investment was only the first step, as the state must ensure local SMEs benefit from the resulting supply chain opportunities.
“We want more Penang SMEs to enter these supply chains, improve their capabilities and grow from being suppliers into internationally competitive companies,” he said.
Goh said Penang’s established electrical and electronics (E&E), engineering, manufacturing and professional services sectors provided a strong base for local SMEs to expand internationally.
He said SMEs could not depend solely on government funding, but needed to improve their quality, technology, productivity, certification, delivery capabilities and professional standards.
The second day of the programme focused on financing, connecting SMEs with government agencies, banks, investors and capital-market players.
As diamond sponsors, Maybank, MoneySave P2P and TCL Gtrontec SEA supported the two-day programme and its broader objective of connecting businesses with opportunities, financing, technology and the ecosystem required to grow.
