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Trade Minister Touts Malaysia’s Advantages as a Chip Investment Destination

Published: Sep. 4, 2025  6:33 p.m.  GMT+8
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Tengku Zafrul Aziz, Malaysia’s Minister of Investment, Trade and Industry. Photo: VCG
Tengku Zafrul Aziz, Malaysia’s Minister of Investment, Trade and Industry. Photo: VCG

Lingering uncertainty over U.S. trade policy could make Malaysia an ideal destination for semiconductor investment, a Malaysian minister told Caixin.

After roughly 60 years building up its semiconductor industry, Malaysia has been “very lucky” to be able to meet the needs of global chip firms that care about supply chain resilience and security, said Tengku Zafrul Aziz, Malaysian Minister of Investment, Trade and Industry. The companies tend to invest in countries that “are neutral and already have a semiconductor ecosystem in place.”

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What Happened When
May 2024:
Malaysian government launched the National Semiconductor Strategy (NSS), a 10-year roadmap for transforming the country into a global semiconductor major.
July 31, 2025:
President Donald Trump signed an executive order to reduce reciprocal tariffs on most Malaysian imports to 19% from previously scheduled 25%.
August 2025:
President Donald Trump threatened to impose tariffs of up to 300% on semiconductor imports.
September 2, 2025:
Malaysian Minister of Investment, Trade and Industry Tengku Zafrul Aziz gave an interview in Beijing discussing Malaysia's semiconductor industry and investment climate.
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