Mida and MSIA Strengthen Collaboration to Expand Malaysia’s Semiconductor Industry Capabilities
New Programmes Aim to Position Local Companies Higher in Global Supply Chains
KUALA LUMPUR — Malaysian Investment Development Authority (Mida) is strengthening Malaysia’s semiconductor development agenda through a strategic collaboration with the Malaysia Semiconductor Industry Association (MSIA) and several new initiatives focused on empowering local companies.
Mida chief executive officer Sikh Shamsul Ibrahim Sikh Abdul Majid said Malaysia must ensure that foreign investments entering the country not only bring capital and technology but also generate greater value for domestic firms.
According to him, the effort is important to ensure more Malaysian companies participate actively in global semiconductor supply chains.
He said this during the “Advancing Malaysia’s Semiconductor Ecosystem Through Strategic Supply Chain Integration & Capability Enhancement” forum held alongside SEMICON Southeast Asia 2026 in Kuala Lumpur.
According to Sikh Shamsul Ibrahim, the forum serves as an important platform connecting multinational investors with Malaysian suppliers while helping identify capability gaps within the local semiconductor ecosystem.
“The key priority now is ensuring that more of the economic value generated by global investments in Malaysia can be captured by local companies,” he said.
Also present at the forum were Deputy Investment, Trade and Industry Minister Sim Tze Tzin, MSIA president Wong Siew Hai and UOB Malaysia managing director and head of wholesale banking Andy Cheah.
During his speech, Sikh Shamsul Ibrahim introduced three flagship Mida programmes aimed at strengthening Malaysia’s semiconductor ecosystem.
The first initiative is the Enterprise Growth Platform (EGP), which helps Malaysian firms expand into anchor supply chains, export markets and strategic international partnerships.
He said the recent Northern Region EGP programme in Sungai Petani, Kedah successfully brought together local companies, government agencies, financial institutions and industry partners within a single development platform.
According to him, the same approach will be expanded to other regions to support the growth of more Malaysian companies.
The second initiative is the Supply Chain Programme, which focuses on building direct connections between multinational corporations and capable local suppliers.
He said the Infineon Vendor Development Programme has become a strong success story, with participating Malaysian firms progressing from basic services into higher-value areas such as cleanroom engineering, automated testing equipment and precision manufacturing.
In addition, he said Mida’s partnership with Arm Ltd last year is expected to provide selected Malaysian SMEs access to world-class chip design technology.
According to him, the move is important for strengthening Malaysia’s ambitions in integrated circuit design and advanced semiconductor innovation.
The third initiative is the #InvestLokal campaign, which aims to strengthen domestic participation through digital communication efforts and the promotion of SME success stories in Bahasa Malaysia.
Meanwhile, Mida also signed a memorandum of understanding with MSIA to strengthen industry capability mapping, supplier readiness assessments and strategic engagement with anchor investors in the semiconductor sector.
The event also witnessed the launch of the Malaysia Advanced Packaging Consortium involving companies such as SkyeChip, Fusion AP, Inari, Pentamaster and NSW Automation.
Sikh Shamsul Ibrahim added that rapid growth in the semiconductor industry is also transforming the automotive sector, particularly in areas involving electric vehicles, smart driving technologies and future mobility systems.
-wilayah.com.my
