Malaysia's semiconductor strength positions it to attract Shenzhen investments, says Dr Wee


KUALA LUMPUR: Malaysia's long-established semiconductor industry puts it in a strong position to attract more high-tech investments from Shenzhen, says MCA president Datuk Seri Dr Wee Ka Siong.

He said Malaysia's mature semiconductor packaging and testing ecosystem could complement Shenzhen's strengths in innovation, hardware and research and development, creating opportunities for deeper cooperation between the two sides.

“Malaysia has developed a strong semiconductor industry since the 1970s and is now one of the world's major semiconductor production hubs,” Dr Wee said in his opening speech at the China (Shenzhen Qianhai)-Malaysia Economic and Trade Cooperation Conference here on Thursday (Sept 10).

He said Malaysia's established infrastructure, strategic geographical location and well-developed ports, including Port Klang, further strengthened its appeal to high-tech manufacturers looking to establish an overseas base.

However, Dr Wee said Malaysia needed to go beyond providing land and resources if it wanted to capture greater value from the next wave of high-tech investment.

“We have already attracted many high-technology investments, including data centres. But we must not simply provide land and resources; we also need to develop our own capabilities and financial ecosystem,” he said.

Dr Wee said cooperation between Malaysia and Shenzhen had moved beyond traditional trade, with opportunities spanning high-technology industrial parks, new energy vehicles, semiconductors, capital markets, green energy and digital trade.

“In 2025, the Shenzhen Industry Going Global Alliance signed the China-Malaysia International High-Tech Eco-Industrial Park Agreement with Malaysia, involving US$22bil (RM89.5bil).

“This laid a foundation for technological cooperation between the two sides.”

He also cited the establishment of the Kedah Greater Bay Area Investment Cooperation Office by Shenzhen's Longhua District and Kedah, which he said had directly facilitated more than 10bil yuan (about RM6.1bil) in intended cooperation.

The memorandum of understanding between Bursa Malaysia and the Shenzhen Stock Exchange had also opened opportunities for cross-border financing and investment, he said.

Meanwhile, Shenzhen-based automaker BYD, together with local partners such as Sime Motors, was working on local assembly of new energy vehicles under the completely knocked-down (CKD) model and supply chain development.

Dr Wee said Malaysia's advantages extended beyond manufacturing, with its multilingual workforce, established legal system and investor-friendly policies making it an attractive destination for Chinese companies seeking to expand into Asean.

“Against the backdrop of the restructuring of global supply chains, Malaysia has demonstrated strong resilience and attractiveness.

“Therefore, there is tremendous room for further growth in China-Malaysia bilateral cooperation,” he said.

Dr Wee said Chinese companies should consider Malaysia among their first choices when expanding overseas, while Malaysian companies could use Qianhai as a springboard into the Greater Bay Area and China's wider market.

 

 

 

 

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