Malaysia stands to gain from global AI shift as semiconductor role grows
Malaysia is well placed to benefit from the global artificial intelligence (AI) driven shift, RHB Investment Bank said on Wednesday, citing the country’s sixth-largest share of global semiconductor exports.
Source: Bernama · August 9, 2026 at 4:14 PM · AI-assisted report
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KUALA LUMPUR, 10 AUGUST 2026 —
Malaysia poised to benefit from global AI-driven semiconductor growth, says RHB Investment Bank
Market Impact
KUALA LUMPUR, Aug 7 (Reuters) – Malaysia is set to gain from the global shift toward artificial intelligence (AI) as its semiconductor sector expands, RHB Investment Bank Bhd said in a note on Wednesday. The country ranks as the world’s sixth-largest semiconductor exporter, accounting for 6.9% of global semiconductor exports in 2023, according to the report.
The investment bank highlighted Malaysia’s growing role in higher-value semiconductor manufacturing, with the electrical and electronics (E&E) sector contributing about 48% of the country’s total exports. Electronic integrated circuits now make up 56% of E&E exports, up from 35% in 2016, reflecting increased specialization in advanced semiconductor production. Additionally, Malaysia handles approximately 13% of global semiconductor assembly, testing, and packaging activities.
Beyond manufacturing, Malaysia is attracting investments in high-value ICT services and digital infrastructure, including data centers in Johor and the Klang Valley. The report noted rising foreign direct investment in the ICT sector, driven by demand for AI, cloud computing, cybersecurity, and data center expansion. These developments position Malaysia as a key node in the global AI supply chain.
RHB Investment Bank said Malaysia’s participation in the AI ecosystem extends beyond semiconductors, with growing investments in digital infrastructure reinforcing its role in the regional data-driven economy. Further details on investment flows and sector-specific growth were not immediately available.