Deputy finance minister pitches one-stop tech financing hub in Penang-Kulim area to power Malaysia’s true ‘Silicon Valley’ dream
Deputy Finance Minister Liew Chin Tong has proposed that Malaysia establish a one-stop centre for semiconductor and deep-tech financing, ...
RSS · July 21, 2026 at 8:29 AM
PENANG, 21 JULY 2026 —
KUALA LUMPUR, July 13 - Malaysia's Deputy Finance Minister Liew Chin Tong has proposed establishing a one-stop centre for semiconductor and deep-tech financing in the Penang-Kulim area, aiming to create the country's own 'Silicon Valley'. The centre would offer integrated financing solutions, bridging the gap between deep tech and capital, and supporting the growth of the technology cluster.
Market Impact
The proposal is expected to have a significant impact on the Malaysian market, particularly in the electrical and electronics (E&E) sector, which accounts for 40% of the country's national exports. The establishment of a one-stop financing hub could attract more investors to the sector, boosting growth and development. Additionally, it could lead to increased liquidity and ratings coverage, fueling the growth of the semiconductor sector. Details on the implementation and timeline of the proposal are not yet available.
According to Liew, the Penang-Kulim area has the potential to become a premier global tech cluster, rivaling Silicon Valley, Taiwan's Hsinchu, and the Netherlands' Brainport Eindhoven. He emphasized the need for industry and capital market players, as well as regulators, to work together to make this vision a reality. Liew also called on the capital market to view Malaysia as a technology nation, rather than just a trading nation, and to take the country's tech stocks more seriously. Malaysia currently carries out around 13% of global semiconductor assembly and testing, aside from China and Taiwan.
The outlook for Malaysia's technology sector appears positive, with the government's efforts to establish a one-stop financing hub and promote the country as a technology nation. The success of this initiative will depend on the collaboration between industry players, regulators, and the government. As the country moves forward with its plans to become a major tech hub, it is likely to attract more investment and talent, driving growth and development in the sector. Details on the next steps and progress of the proposal are expected to be announced in the coming months.
Related: Finance Minister · Penang