GEORGE TOWN: The government has urged equipment manufacturers in the country not only to make equipment for the semiconductor sector but also to help other sectors including agriculture, furniture, construction, palm oil plantation and automation.
Deputy Investment, Trade and Industry Minister Liew Chin Tong said for Malaysia to be an advanced economy, it has to adopt, automate and innovate technologies to reduce dependence on unskilled foreign labour in all sectors.
“The equipment sector should not stop short at just making equipment for the semiconductor sector. I visited ViTrox Agritech at Ara Kuda, Tasek Gelugor, yesterday and saw how technology for the semiconductor sector can be applied to precision agriculture,” he said in his speech to launch the Advanced Technology Equipment Cluster (ATEC), here today.
While the Malaysian semiconductor industry has been well connected vertically to the global supply chain, it is time for the industry to foster horizontal linkages, he said.
Liew said this will enable the semiconductor industry to design and invent chips that solve Malaysia’s problems in health, food security, transport, or green transition, just as equipment makers make equipment (that can be used) beyond the semiconductor industry.
“Only with innovations that solve our national and regional problems can we create products that improve the lives of millions. Malaysia (will then) join the ranks of South Korea, Taiwan and China to become a technology powerhouse,” he added.
On the ATEC, which comes under the Malaysia Semiconductor Industry Association, the deputy minister hopes it will help to speed up the broader localisation of equipment used by multinational companies (MNCs) that are relocating to Malaysia.
He noted that the Malaysia Investment Development Authority (MIDA) would now have a more robust list of Malaysian equipment makers to present to MNCs to help them localise their equipment purchases.
“We want to see more Malaysian companies thriving in the broader semiconductor industry. Interestingly, quite a few sizeable Malaysian companies in technology are actually in advanced technology equipment.
“Today is the start of a journey in which we give the equipment sub-sector a proper name and recognition, and see the equipment sub-sector as an important driver in the creation of many US$1 billion and RM1 billion Malaysian companies,” he said.
Prime Minister Datuk Seri Anwar Ibrahim had outlined Malaysia’s aspiration to create 10 Malaysian technology companies each with US$1 billion annual revenue and 100 more with RM1 billion annual revenue when he announced the National Semiconductor Strategy.
The ATEC is spearheaded by local equipment manufacturers including ViTrox, automation solution provider Greatech Technology Bhd and Pentamaster Corp Bhd.
