Malaysia to Diversify E&E Value Chain to Cut Semiconductor Dependen

The government will reduce Malaysia’s risk of overdependence on the semiconductor sector by diversifying the electrical and electronics (E&E) value chain and sources of economic growth, and by expanding export markets. Investment, trade and industry minister Johari Ghani said the measures aim to make exports more resilient if the global semiconductor industry enters a cyclical downturn.

Central Asia, Africa, Latin America Targeted as Malaysia Seeks New Export Markets

Responding to a question from Fawwaz Jan (PN-Permatang Pauh) in the Dewan Rakyat today, Johari outlined three strategies. First, the government will strengthen and diversify the E&E value chain through the New Industrial Master Plan 2030 (NIMP 2030) and the National Semiconductor Strategy, focusing on high value-added, technology-intensive activities such as integrated circuit design and advanced packaging.

Second, it will diversify growth beyond the E&E sector and strengthen domestic supply chains. He said the 21 sectors under NIMP 2030, including services, contributed RM897 billion in 2025, and the plan seeks to raise economic complexity, promote high value-added activity and create more jobs.

Third, the ministry, through the Malaysia External Trade Development Corporation, will keep expanding export destinations, including non-traditional markets in Central Asia, Africa and Latin America.

Answering a supplementary question from Adnan Abu Hassan (BN-Kuala Pilah) on prioritising high value-added exports and local technology mastery, Johari said the government had held several rounds of engagement with local companies. He added that firm action is needed in Malaysia’s long-term interest to protect the economy and reduce dependence on other countries.