Malaysia aims for $1.3 trillion in semiconductor investments by 2030

SHANGHAI, 23 SEPTEMBER 2026 —

Malaysia targets 500 billion ringgit (RM500bn) in semiconductor investments by 2030, equivalent to Rp2.1 quadrillion, as part of its push to solidify its position in advanced manufacturing, Prime Minister Anwar Ibrahim announced on Wednesday.

The move shows Malaysia’s strategic focus on high-tech industries amid global competition for semiconductor production, while also aligning with its broader economic diversification efforts. The target reflects Malaysia’s ambition to attract global players in chip manufacturing, a sector critical to electronics and electric vehicle supply chains.

Anwar made the announcement during the WorldSkills event in Shanghai, where he outlined the next phase of Malaysia’s TVET 2.0—a revamped technical and vocational education and training (TVET) reform—to better integrate industries with training institutions. The initiative aims to accelerate workforce transitions into artificial intelligence (AI), semiconductors, and renewable energy, sectors identified as key drivers of future economic growth.

The prime minister also highlighted Malaysia’s Comprehensive Strategic Partnership with China as a catalyst for expanding technical and vocational training opportunities. Malaysia is leading regional efforts to prepare Southeast Asia’s workforce for a green economy, including through the ASEAN Digital Skills Passport, a pilot program facilitating cross-border recognition of technical qualifications.

“A modern economy cannot function without technicians ensuring semiconductor production lines run smoothly or electric vehicle manufacturing stays on schedule,” Anwar said, emphasizing the critical role of skilled labor in sustaining high-tech industries. The government’s push follows global semiconductor shortages and rising demand for chips in automotive and electronics sectors, positioning Malaysia as a potential manufacturing hub in Asia.

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