Kuala Lumpur, January 10, 2025 – Malaysia is positioning itself as a key player in Southeast Asia, attracting foreign investments amid a stable economic environment. Prime Minister Anwar Ibrahim announced plans to leverage the country's geographical advantages to establish itself as a hub for energy and semiconductor manufacturing.
The Malaysian economy has shown significant recovery, driven by strategic investments, particularly in renewable energy and artificial intelligence infrastructure. Anwar noted that inflation remains stable, and the ringgit has been performing well, with the stock market leading the region.
By 2025, Malaysia aims to enhance its capabilities in oil and gas, semiconductors, and Islamic finance, aspiring to become a global leader in these sectors. Economy Minister Rafizi Ramli revealed plans to produce domestic graphics processing unit (GPU) chips to meet the growing demand from AI and data centers within the next five to ten years.
Malaysia currently accounts for 13% of the global semiconductor testing and packaging market and is targeting over $100 billion in investments for the sector. The country is well-positioned to attract businesses as Chinese chip firms seek to diversify their operations overseas, with recent multibillion-dollar investments from companies like Intel and Infineon.
Last year, Malaysia also welcomed significant digital investments from major tech firms, including Alphabet's Google, contributing to the economy's growth that exceeded market expectations in the latter half of the year.