KUALA LUMPUR: Malaysia is actively diversifying supply chains within its semiconductor sector to strengthen both foreign and local investments.
Deputy Investment, Trade and Industry Minister Liew Chin Tong stated that Malaysia now aspires to become an attractive supply chain hub alongside Singapore and Vietnam.
This strategic shift moves the country from the “just in time” era to the “just in case” era where companies seek multiple supply chains instead of relying on single sources.
Liew explained that during trade negotiations with the United States, MITI clarified that Malaysian exports complement existing US supply chains.
The ministry proposed that the US consider granting exemptions for Malaysian products not manufactured within the United States.
He was responding to Senator Datuk Nelson W Angang’s question about maintaining investor confidence amid US tariff uncertainties.
MITI collaborates with key industry bodies including the American-Malaysian Chamber of Commerce and the US-ASEAN Business Council for effective feedback channels.
The ministry regularly conducts engagement sessions with American investors in Malaysia, think tanks, and relevant stakeholders.
US President Donald Trump recently hinted that semiconductor and pharmaceutical products might face additional tariffs.
The US government is currently investigating under Section 232 of the Trade Expansion Act of 1962 which may lead to specific tariffs.
Investigation results are expected before December 2025 according to the deputy minister.
Malaysia’s pharmaceutical exports to the US reached RM3.04 billion in 2024 while imports from the US stood at RM11.77 billion.
Semiconductor exports to the US amount to approximately RM56.2 billion representing 14.5% of Malaysia’s total semiconductor exports.
The current US reciprocal tariff rate on Malaysia is set at 19% with semiconductor and pharmaceutical products currently exempted. – Bernama