Anwar wants Malaysia to become energy, chipmaking hub, targets US$100 billion investment

PM Anwar Ibrahim envisions Malaysia as a hub for electricity, talent, and supply chain diversification, emphasising oil and gas and semiconductor expertise

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Prime Minister Anwar Ibrahim wants Malaysia to become a Southeast Asian hub for energy and chip manufacturing, by leveraging its strategic location. Photo: Pool/Reuters

Published: 6:15pm, 9 Jan 2025

Malaysia wants to leverage its location to become an energy and chip manufacturing hub this year, riding a recent jump in investments and a favourable outlook for the domestic economy, its premier and economic minister said on Thursday. Malaysia is fast becoming a haven in Southeast Asia, with foreign investors returning as improving growth and a stable currency set it apart from peers grappling with political flux and economic uncertainty.

Prime Minister Anwar Ibrahim said Malaysia’s economy rebounded dramatically last year, spurred by an influx of strategic investments, most substantially in renewable energy and artificial intelligence infrastructure. He added inflation and the ringgit were stable, and the stock market was the region’s top performer.

“In 2025, we want to double down on our geographical centrality, as a conduit for electricity, talent and supply chain diversification,” he said at an economic forum.

Anwar said Malaysia will now aim to refine its expertise in oil and gas, semiconductors, and Islamic finance to become a global market leader in each field.

Economy minister Rafizi Ramli said Malaysia is targeting US$100 million in investments in the semiconductor industry. Photo: Handout

Economy minister Rafizi Ramli said Malaysia is looking to produce its own graphics processing unit chips as demand for artificial intelligence and data centres grows.

“We are hoping that we can start producing made-by-Malaysia GPUs and chips in the next five to 10 years,” he said. Malaysia, a major player in the semiconductor industry that accounts for 13 per cent of global testing and packaging, is targeting over US$100 billion in investment for the sector.