Malaysia sets sights on energy and chipmaking leadership
Rising investments drive the country’s economic ambitions.
Malaysia plans to leverage its strategic location and rising investments to establish itself as a hub for energy and semiconductor manufacturing, Prime Minister Anwar Ibrahim and Economy Minister Rafizi Ramli announced Thursday. The country is benefiting from political stability, economic growth, and a strong currency, distinguishing it from regional peers facing uncertainty.
Prime Minister Anwar highlighted Malaysia’s economic rebound last year, driven by significant investments in renewable energy and AI infrastructure. He pointed to a stable ringgit, low inflation, and a leading stock market performance in Southeast Asia. ‘In 2025, we aim to capitalise on our geographical position as a conduit for electricity, talent, and supply chain diversification,’ Anwar said at an economic forum.
Economy Minister Rafizi Ramli revealed plans to produce homegrown graphics processing unit (GPU) chips in response to growing AI and data centre demands. Malaysia, which already accounts for 13% of global semiconductor testing and packaging, is targeting over $100 billion in investments for the sector. The country has attracted major firms like Intel and Infineon, as well as digital investments from Google, further boosting its economy and solidifying its role as a key player in the global semiconductor supply chain.