Malaysia sees no immediate energy, raw material risks to semiconductor sector-Xinhua

Malaysia sees no immediate energy, raw material risks to semiconductor sector

Source: Xinhua

Editor: huaxia

2026-05-06 16:17:45

KUALA LUMPUR, May 6 (Xinhua) -- Malaysia's semiconductor industry is not facing significant risks from energy supply or raw material shortages for now, as the country's net gas exporter status provides a buffer for industrial expansion, Malaysian Investment, Trade and Industry Minister Johari Abdul Ghani has said.

Malaysia remains a net gas exporter with sufficient reserves to support industrial growth, although it imports oil, Johari said on the sidelines of SEMICON Southeast Asia 2026 on Tuesday.

He noted that while most surplus natural gas is exported, there is scope to channel more towards domestic industrial use, particularly for energy-intensive sectors.

On potential disruptions to materials such as helium, Johari said risks remain manageable but depend on global developments, especially geopolitical tensions in the Middle East.

Despite uncertainties, he noted investor sentiment towards Malaysia's semiconductor sector remains positive, with companies continuing to advance their plans.

According to him, the semiconductor segment is a key pillar of Malaysia's electrical and electronics industry, which recorded 711 billion ringgit (180 billion U.S. dollars) in exports in 2025.

He added that Malaysia must strengthen its ecosystem and expand into front-end activities, while continuing to attract foreign investment to boost high-value manufacturing.