KUALA LUMPUR: Strengthening the supply chain ecosystem involving semiconductors is crucial not only for Malaysia but also Asean, says Liew Chin Tong.
The Deputy Investment, Trade and Industry deputy minister said that a framework was recently drafted Asean to address the uncertainties in global trade due to geopolitical tensions.
"We need to strengthen our ecosystem and supply chain.
"To ensure this, we are placing greater emphasis on localisation and value added among our industries.
"This is necessary so that we don't rely on just one country for input," he said when replying to a question raised by Syerleena Abdul Rashid (PH-Bukit Bendera) in Dewan Rakyat on Monday. (Oct 13).
Syerleena wanted to know whether there were strategies in place to develop localised technologies while exploring new markets, rather than relying on one or two countries for trade.
Liew said that strengthening the supply chain would ensure the nation's competitiveness was maintained.
He added that Malaysia would soon sign a memorandum of cooperation with Brazil on semiconductors, while in talks with India on a similar agreement covering semiconductors and other products.
Such agreements would open new export markets for Malaysian businesses and involve technology transfers, he said.
Earlier, Liew said that Malaysia's participation in the Regional Comprehensive Economic Partnership (RCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and other free trade agreements (FTAs) was crucial to strengthening the nation's economic resilience.
He said such trade agreements will help attract quality investment into the country, particularly in the electrical and electronic, automotive, halal product and digital sectors.
He added that there are also provisions under the RCEP and CPTPP related explicitly to the well-being of small and medium enterprises (SMEs).
"There is emphasis among RCEP members to share information and enhance capacity building while providing market access for SMEs," he added.
He also said that his ministry, through the Malaysia External Trade Development Corporation (Matrade) and the Malaysia Investment Development Authority (Mida), provides training for export-oriented SMEs, including an e-commerce platform to engage in cross-border trade.
On BRICs, Liew said that it is in line with the approach taken by Malaysia to have good trading relations with all parties, including BRICs.
