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Malaysia targets global semiconductor leadership through innovation push

Malaysia aims to lead in semiconductor and advanced technology innovation, with exports growing from RM106 billion to RM387 billion since 2015.

KUALA LUMPUR: Malaysia is positioning itself as a high-tech, innovation-driven nation with a clear strategy to advance beyond manufacturing into technology creation and global semiconductor leadership, said Science, Technology and Innovation Minister Chang Lih Kang.

Speaking at the seventh edition of the Ministry of Science, Technology and Innovation (MOSTI) Tech Talks at UCSI University here on Wednesday (November 5) night, Chang said Malaysia’s technological future hinges on its ability to invest in talent, research and innovation, particularly in the fast-growing semiconductor sector.

“We are in a global race not just to make technology, but to master it. That race will be won by countries that invest in talent, innovation and courage,” he said.

Chang said the country’s electrical and electronics (E&E) industry remains one of its strongest economic pillars, with semiconductor exports expanding from RM106 billion in 2015 to RM387 billion in 2023.

ALSO READ: Malaysia intensifies drive to become global semiconductor hub – Msia

The sector accounts for a quarter of Malaysia’s gross domestic product (GDP) and supports around 100,000 jobs.

“Through new investments, specialised training and strategic partnerships, we are building the full spectrum of semiconductor capability. Our goal is clear, to make Malaysia’s semiconductor ecosystem not only competitive, but complete, resilient and future-ready,” he said.

He said the National Science, Technology and Innovation Policy (NSTIP) 2021–2030 forms the foundation of Malaysia’s high-tech aspirations, comprising six policy thrusts and 40 cross-ministerial initiatives to strengthen research and innovation governance.

“Malaysia aims to raise research and development (R&D) expenditure to 2.5 per cent of GDP, with 70 per cent driven by the private sector. Human capital is central to this mission, with a target of 200 researchers, scientists, engineers and technologists per 10,000 workers,” he said.

Chang noted that Malaysia ranked 34th in the 2025 Global Innovation Index, while Kuala Lumpur climbed from 93rd to 86th among the world’s top science clusters, making Malaysia one of only 15 countries with two or more recognised innovation clusters.

He said MOSTI agencies, particularly MIMOS, play a key role in advancing this agenda through R&D, technology transfer and talent development.

MIMOS’s Semiconductor Technology Centre now offers world-class testing and reliability facilities, including an international automotive testing capability, while the MIMOS Junior Academy inspires young Malaysians to explore science and innovation from an early age.

“This journey cannot be achieved by the government alone. Public–private collaboration is key, bringing together government policy, industry expertise and academic innovation under one shared mission,” Chang said.

He added that MOSTI remains focused on ensuring every investment in innovation delivers measurable national value, and urged collective effort to position Malaysia as a leader in the global technology race, not merely a participant. – Bernama

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