Malaysia Well Positioned To Benefit From Global AI-Driven Structural Shift
KUALA LUMPUR, AUG 7 (Bernama) -- Malaysia is well placed to benefit from the global artificial intelligence (AI)-driven structural shift, underpinned by its position as the world’s sixth-largest semiconductor exporter, growing specialisation in higher-value semiconductor manufacturing and growing appeal as a destination for digital infrastructure.
In a note today, RHB Investment Bank Bhd said Malaysia’s electrical and electronics (E&E) industry remains the country’s largest export sector, accounting for approximately 48 per cent of total exports.
“Malaysia accounted for 6.9 per cent of global semiconductor exports in 2023. Approximately 13 per cent of global semiconductor assembly, testing and packaging activities are undertaken in the country, alongside some presence in the front-end.
“This firmly establishes Malaysia as a key node within the global semiconductor value chain,” it said.
The investment bank said the composition of Malaysia’s E&E exports has shifted towards higher-value semiconductor products, with electronic integrated circuits accounting for 56 per cent of total E&E exports, up from 35 per cent in 2016, reflecting the country’s increasing specialisation in semiconductor manufacturing and electronic components.
It said Malaysia’s participation in the AI ecosystem extends beyond semiconductor manufacturing, with recently approved investments increasingly concentrated in high-value manufacturing and information and communication technology (ICT) services, reflecting the country's emergence as a regional digital and data-driven economy.
“Robust demand for AI, cloud computing, data centres and cybersecurity has attracted substantial investments, while rising foreign direct investment into the ICT sector underscores Malaysia's growing appeal as a destination for digital infrastructure.
“Complementing its established semiconductor manufacturing ecosystem, the rapid expansion of data centres, particularly in Johor and the Klang Valley, further reinforces Malaysia's role as an important node in the global AI supply chain,” it added.
-- BERNAMA