Malaysia: Malaysia will prioritize working with reliable partners and strengthening resilience in its semiconductor sector to shield it against external disruptions and trade tensions, Prime Minister Anwar Ibrahim has said.

According to Namibia Press Agency, deepening regional cooperation through the Association of Southeast Asian Nations (ASEAN) and other mechanisms will also help the sector resist external shocks and facilitate development through research and development, as well as by creating demand as companies in the region upskill and improve their own capabilities, Anwar said in his keynote speech at the ASEAN Semiconductor Summit 2025.

"True supply chain resilience means eliminating weak links, either by producing what we need effectively or securing reliable partnerships to access what lies beyond our domestic capabilities. In these volatile times, diversifying our options is not just wise, it is essential," he stated.

Anwar emphasized that Malaysia's established semiconductor ecosystem is well poised to help the nation transition beyond a foreign direct investment-first model, focusing instead on nurturing homegrown champions. He clarified that this strategy does not entail turning away investors but rather being more strategic and prudent, welcoming long-term collaborators who can grow alongside Malaysia and strengthen the supply chains through knowledge and technology transfer.

Furthermore, Anwar highlighted Malaysia's efforts to expand its pool of trained engineers to address existing shortages. The country is also actively contributing to a broader ASEAN-wide initiative, leveraging the grouping's collective strengths to effectively address shared challenges, rather than acting in isolation.

"Malaysia must build on its local strengths to serve a larger regional and global purpose. By strengthening our domestic ecosystem, we are also helping to raise ASEAN's industrial capacity," he concluded.