KULIM, Aug 8 — Investments in Malaysia keep growing despite Malaysia’s stance on Gaza compared with that of European countries, Prime Minister Datuk Seri Anwar Ibrahim said.
Anwar, who is also finance minister, said the increase in investment includes the electrical and electronics (E&E) sector, which continues to be a focus for Malaysia.
“E&E investments from the United States make up a substantial 26 per cent, which is significant. Despite strong and differing positions on Gaza that contradict the stance of the United States, both parties continue to maintain their interests in terms of investment.
“Therefore, investment continues to increase, but we are also turning to China where E&E is growing, and electric vehicles (EV) show that China can manage costs and efficiency, particularly in battery production,” he said at the Budget 2025 engagement session with players in the E&E industry at SilTerra Malaysia Sdn Bhd’s semiconductor foundry here today.
Anwar also said German Chancellor Olaf Scholz provided strong support for German semiconductor giant, Infineon Technologies AG, to invest significantly in Malaysia, despite Berlin’s opinions on Gaza.
In this regard, Anwar explained although Malaysia’s ecosystem is at a good level, the country must prepare to further develop the industry, including strengthening the fields of Technical and Vocational Education and Training and engineering.
The prime minister indicated he will discuss with the Higher Education Minister Datuk Seri Zambry Abdul Kadir, the possibility of Universiti Utara Malaysia establishing a department of engineering to meet the country’s urgent need for skilled workers in the sector, including in artificial intelligence (AI).
“However, this is not ordinary engineering; the discipline must be enhanced with a focus on digital AI as AI is dominated by engineers. Synergy is crucial,” he said.
Meanwhile, Anwar emphasised that the recent strengthening of the ringgit adds confidence that Malaysia is on the right track.
He noted that the nation must not be complacent, as good figures or data may be misleading, and there are many steps to be taken for improvement.
Regarding the engagement session, Anwar called it an opportunity to gather feedback from the industry and stakeholders on policies, incentives, programmes, and implementations before it is brought back for review at the Finance Ministry to be aligned with Madani Budget 2025.
“We must seek your (E&E industry players) input, your advice because as a government, I must say that we do not claim to have all the answers. Sometimes, what political leaders lack is humility.
“Your input is important. We will coordinate and try to improve, particularly when we announce our budget in October. This budget is important because, in recent months, Malaysia is now regarded as a regional semiconductor hub,” he said.
More than 70 E&E industry players from 52 firms based in Kedah, Penang, and Perak attended the engagement session, which was also attended by Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz and Kedah Chief Minister Datuk Seri Muhammad Sanusi Md Nor.
Budget 2025, which is the third Unity Government budget, will be tabled on October 18 in the Dewan Rakyat.
— Bernama
