Official Launch of Semiconstart Malaysia

Bismillahirrahmanirrahim

Yang Berbahagia Dato' Sri Abdul Rasheed Ghaffour
Governor Bank Negara Malaysia

Yang Berbahagia Dato' Ts. Dr. Nagulendran
Secretary General Ministry of Science, Technology and Innovation

Yang Berbahagia Tan Sri Abdul Rahman Mamat
Chairman Malaysian Technology Development Corporation (MTDC)

Officials and representatives from Ministries, government agencies and associations, as well as universities and industry partners

Distinguished guests

Ladies and gentlemen,

Assalamualaikum Warahmatullahi Wabarakatuh

And Salam Malaysia MADANI.

1. It is a pleasure to be here today for the official launch of SemiconStart Malaysia. More importantly, it is a privilege to join all of you at a time when Malaysia is taking deliberate steps to strengthen its position in one of the world's most strategic and consequential industries.
   
   
2. Semiconductors have become the foundation of the modern economy. They power the technologies that drive our industries, connect our societies and increasingly shape the competitiveness of nations. From artificial intelligence and advanced manufacturing to healthcare, communications, mobility and energy systems, semiconductors sit at the centre of technological progress.
   
   
3. For Malaysia, this industry is not new. For more than five decades, we have been a trusted participant in the global semiconductor ecosystem. We have built strong manufacturing capabilities, attracted leading global players and established ourselves as an important part of the international supply chain.
   
   
4. Those achievements should give us confidence. But they should also compel us to ask a more important question: what comes next?
   
   
5. For many years, Malaysia's success was measured by our ability to participate in global supply chains. Today, success is increasingly measured by our ability to create value within them. The source of value is shifting towards innovation, intellectual property, advanced technologies and specialised capabilities. This is where the next phase of growth will be defined.

Ladies and gentlemen,

6. The global semiconductor industry is entering a new phase of growth. Global semiconductor sales are projected to approach USD1 trillion in 2026. At the same time, competition for technology leadership is intensifying. Countries are investing heavily in talent, innovation, research and advanced capabilities because they recognise that technological strength increasingly underpins economic strength. In this environment, participation alone is no longer enough.
   
   
7. The question is no longer whether Malaysia can be part of the semiconductor industry. We already are. The question is whether Malaysia can create more value within that industry. Whether we can develop more intellectual property. Whether we can build more globally competitive technology companies. Whether we can produce the next generation of innovators who will shape the future of this sector.
   
   
8. This is ultimately what the National Semiconductor Strategy seeks to achieve. It is about building capability, strengthening resilience and positioning Malaysia for long-term competitiveness in an increasingly technology-driven world.
   
   
9. This ambition is fully aligned with the National Semiconductor Strategy, which seeks to strengthen Malaysia's position across the semiconductor value chain through innovation, talent development and home-grown technology capabilities. It also reflects the broader aspirations of the Ekonomi MADANI Framework to build a more productive, innovative and resilient economy that creates greater value for businesses and better opportunities for Malaysians.
   
   
10. It is also why the Government continues to invest in strategic sectors that will shape Malaysia's future growth. These efforts are supported by strong economic fundamentals and sustained investor confidence. Malaysia recorded a historic RM426.7 billion in approved investments in 2025, while the first quarter of 2026 alone attracted RM92.8 billion in approved investments across key sectors of the economy.
    
    
11. This progress is also reflected in Malaysia's recent improvement in the IMD World Competitiveness Ranking 2026, where we moved from 23rd to 15th place globally. Malaysia was ranked 4th in Economic Performance and 5th in International Trade, underscoring the strength of our economic fundamentals and our connectivity to global markets. Strategic sectors such as electrical and electronics, particularly semiconductors, have been important contributors to this performance and demonstrate how technological capability can translate into national competitiveness.
    
    
12. These figures are important not only because they reflect confidence in Malaysia's economy. They also provide the foundation for long-term investments in industries where results are measured not in quarters, but in years and decades.

Ladies and gentlemen,

13. These priorities are being advanced through the implementation Thirteenth Malaysia Plan (RMK13) and Budget 2026, which provide a strong foundation for strengthening innovation, developing future-ready talent and fostering a more vibrant ecosystem for high-value industries such as semiconductors. Together, these efforts will help translate our long-term ambitions into sustainable economic growth and greater value creation for Malaysia.
    
    
14. Today is significant because it marks the transition from strategy to implementation. Over the past year, much attention has been given to strengthening Malaysia's semiconductor ecosystem through the National Semiconductor Strategy. Important targets have been announced, resources have been committed and new initiatives have been introduced. These are necessary steps, but ultimately, strategies must be translated into action.
    
    
15. This is why today's launch matters. It represents the beginning of implementation. It reflects a collective effort to create stronger pathways for innovation, commercialisation and technology development within Malaysia's semiconductor ecosystem.
    
    
16. The true measure of success will not be the number of initiatives we announce, but the capabilities we build, the technologies we commercialise, the investments we attract and the opportunities we create for future generations of Malaysians.
    
    
17. Building globally competitive technology companies requires more than funding. It requires talent, infrastructure, partnerships, market access and an ecosystem capable of supporting innovation from idea to commercial success.
    
    
18. This is not the responsibility of any single organisation. It requires sustained collaboration between government, industry, academia, investors and ecosystem partners, each playing their respective roles in strengthening Malaysia's long-term competitiveness.
    
    
19. Today's launch therefore represents more than the introduction of a new programme. It reflects Malaysia's continued commitment to building the capabilities, institutions and ecosystem required to compete in an increasingly technology-driven global economy.

Ladies and gentlemen,

20. As Malaysia advances towards becoming a high-value, innovation-driven economy, our ability to create, commercialise and scale technology will become increasingly important. This applies not only to semiconductors, but across the broader technology ecosystem.
    
    
21. The countries that succeed in the future will not necessarily be those with the largest markets or the lowest costs. They will be those that are able to develop talent, generate innovation and translate knowledge into economic value.
    
    
22. Malaysia already possesses many of the foundations required to succeed. We have established industrial capabilities, strong institutions, a growing innovation ecosystem and a strategic position within global supply chains. The challenge before us is how we build upon these strengths to create greater value for the country.
    
    
23. This requires a long-term perspective. Building technological capability is not a short-term undertaking. It requires sustained investment in talent, research, infrastructure, entrepreneurship and ecosystem development. Most importantly, it requires consistency of purpose.
    
    
24. This is why the Government remains committed to strengthening the innovation and technology ecosystem through strategic policies, targeted investments and partnerships that support long-term economic transformation.
    
    
25. The impact of these efforts will not be measured solely by investment figures or economic statistics. It will also be measured by the capabilities we develop, the technologies we commercialise, the industries we strengthen and the opportunities we create for future generations.
    
    
26. Ultimately, our objective is clear. We want Malaysia to be recognised not only as a trusted participant in global technology value chains, but also as a source of innovation, intellectual property and globally competitive technology companies.
    
    
27. Today's launch represents another step towards that ambition and reflects Malaysia's continued commitment to building an economy that is innovative, resilient and future-ready. I would like to congratulate MTDC and MOSTI for leading this important initiative, and for helping to bring together the partners, capabilities and institutional commitment needed to move SemiconStart Malaysia from policy intent into implementation.
    
    
28. With that, it is my honour to officially launch SemiconStart Malaysia and welcome the inaugural cohort of companies into this exciting new chapter of Malaysia's semiconductor journey.

Wabillahi Taufik Wal Hidayah, Wassalamualaikum Warahmatullahi Wabarakatuh.

Thank you.