Melaka Boosting Its Position As Semiconductor Hub To Attract High-value Investments
MELAKA, July 16 (Bernama) -- Melaka is strengthening its position as one of Malaysia's leading semiconductor and advanced manufacturing hubs by leveraging its established industrial ecosystem, skilled workforce and strategic location to attract the next generation of high-value investments.
Chief Minister Datuk Seri Ab Rauf Yusoh said the state's Semiconductor Strategic Plan 2026-2035, which complements the National Semiconductor Strategy (NSS), will focus on strengthening industry capabilities, enhancing supply chain resilience and supporting high-value investments to drive the state's next phase of industrial growth.
He said Melaka, with more than five decades of semiconductor manufacturing heritage, is well positioned to capitalise on rising global demand for technologies such as artificial intelligence (AI), autonomous mobility, advanced manufacturing, healthcare technologies and data centres.
The state's industrial transformation would require stronger collaboration between the government, industry and academia, particularly in talent development through technical and vocational education and training (TVET), innovation and sustainable manufacturing, Ab Rauf said at the MSIA Dialogue & Networking Session with the Chief Minister of Melaka here today.
The programme, themed “Transforming Melaka into a Future-Ready Semiconductor and Advanced Manufacturing Hub: Driving Talent, Sustainability and Industrial Excellence”, was jointly organised by the Malaysia Semiconductor Industry Association (MSIA), the Malaysian Investment Development Authority (MIDA), Invest Melaka Bhd, Infineon Technologies (Malaysia) Sdn Bhd and Maybank.
MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said Melaka has built the industrial base, skilled workforce and supplier network needed to compete for the next generation of high-value investments.
He said Melaka has come a long way in building its semiconductor industry and today, it has the industrial base, skilled workforce and supplier network needed to compete for the next generation of high-value investments.
The electrical and electronics (E&E) industry, he said, continues to be a key driver of Malaysia's investment landscape, attracting RM6 billion in approved investments in the first quarter of 2026, the highest among all manufacturing industries.
“With its established ecosystem and strategic location, Melaka is well placed to capture a greater share of these opportunities. The next phase of growth requires close collaboration between government, industry and the financial sector to deepen supply chains, accelerate technology adoption and help Malaysian companies move up the value chain.
“At MIDA, we are committed to facilitating quality investments that build industrial capabilities, drive innovation, and create quality jobs for Malaysians. The New Incentive Framework (NIF) supports these efforts by encouraging investments to develop local talent, strengthen Malaysian businesses and deliver long-term value to the people of Melaka," he said.
Meanwhile, Invest Melaka Bhd chief executive officer Datuk Ginie Lim Siew Lin said continuous engagement with industry players has enabled the agency to better understand evolving investment trends and companies' requirements.
“Our continuous engagement with industry players gives us valuable insights into how investment decisions are evolving and what companies require to grow successfully. Melaka's semiconductor strength is built on decades of industrial presence and investor confidence, and our focus is to build on this foundation by connecting emerging opportunities with the right capabilities and partnerships.
“Through this approach, we aim to strengthen Melaka's position as a preferred location for the next phase of semiconductor growth,” she said.
MSIA president Datuk Seri Wong Siew Hai said Malaysia's future competitiveness would be determined not only by manufacturing capacity but also by the strength of its semiconductor ecosystem.
“Malaysia's future competitiveness will not be determined by manufacturing capacity alone, but by the strength of our semiconductor ecosystem.
“As we move from 'Made in Malaysia' to 'Made by Malaysia', every state has a role to play. Melaka has already built a strong foundation and is well positioned to become a key driver of advanced technologies, talent development and innovation that will strengthen Malaysia's global semiconductor leadership,” he said.
He said the semiconductor industry has evolved beyond powering electronic devices and now forms the foundation of artificial intelligence, autonomous mobility, advanced manufacturing, healthcare technologies, data centres and future digital economies.
Meanwhile, Maybank managing director (new economy & group global banking sustainability) Ranita Abdullah said the bank remains committed to supporting Melaka's efforts to attract quality domestic and foreign investments into advanced and high-technology industries.
“Maybank is committed to supporting Melaka's aspirations to attract quality domestic and foreign investments into advanced and high-tech industries, while strengthening the ecosystem of multinational corporations and local small and medium enterprises as supply chains evolve and businesses enhance operational resilience.
“We are equally keen to support the state's sustainability aspirations and Smart City digital transformation agenda, in line with Maybank's ROAR30 strategy to mobilise RM300 billion in sustainable finance and RM100 billion for the new economy across ASEAN,” she said.
Today’s event attracted nearly 150 industry leaders, policymakers, government agencies, financial institutions and ecosystem partners, underscoring Melaka's commitment to becoming a future-ready semiconductor and advanced manufacturing hub.
-- BERNAMA