Latest news with #MalaysiaSemiconductorIndustryAssociation
Free Malaysia Today
17-07-2025
- Business
- Free Malaysia Today
Vietnam, Indonesia edge in US tariff fight a concern, says Chow
Penang chief minister Chow Kon Yeow at the opening of Sirim's radio frequency and electromagnetic compatibility testing lab at the Penang Skills Development Centre in Bayan Baru, Penang, today. GEORGE TOWN : Penang chief minister Chow Kon Yeow says the country is now at a 'real competitive disadvantage' after neighbours Vietnam and Indonesia were granted reduced tariff rates by US president Donald Trump. Trump recently said exports from Vietnam and Indonesia will face a 20% and 19% tariff respectively, this after Vietnam was initially hit with a 46% tariff while Indonesia was handed a 32% tariff rate. While Malaysia was first dealt with a 24% tariff rate in April, Trump increased the rate to 25% earlier this month. Negotiations to reduce the tariff are ongoing. 'The US raising tariffs on Malaysian goods to a staggering 25% is still very much a lingering issue. Meanwhile, the tariffs have been slashed for our neighbours. 'We must continue to explore creative and effective negotiation strategies, and bring these tariffs down by half,' he said. Penang is the country's number one state in terms of exports, making up nearly a third of national exports in 2024. Its strength lies in electrical and electronics goods, especially semiconductors. In a Bloomberg report last week, Malaysia Semiconductor Industry Association president Wong Siew Hai said semiconductor companies are hoping that the US will continue to exempt semiconductors from tariffs beyond Aug 1, the deadline for higher levies announced by Trump. The US is Malaysia's third-largest market for semiconductor exports, and most major semiconductor firms in Penang are from the US, including Intel, AMD, and Micron. Chow earlier opened Sirim's radio frequency and electromagnetic compatibility testing lab at the Penang Skills Development Centre in Bayan Baru here. It will mainly benefit Penang's electrical, electronics and chip-making industries, which previously had to send their products to Shah Alam for such testing.
The Sun
15-07-2025
- Business
- The Sun
MSIA: Miti move shows Malaysia's seriousness in complying with international trade obligations
KUALA LUMPUR: The trade permit imposed for US origin high-performance artificial intelligence (AI) chips reaffirms Malaysia's commitment as a trusted hub for managing advanced technology exports, transshipments, and transits. In stating this, Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai said the measure sent a strong signal of Malaysia's seriousness in complying with international trade obligations, including the US export controls. 'The trade permit makes it clear that the government will not tolerate any abuse of exports, transshipment, or illicit trading,' Wong told Bernama when asked to comment on the current measures announced by the Ministry of Investment, Trade and Industry (Miti) on Monday. He added that many Malaysian firms have already taken proactive steps, including internal audits, to ensure they adhere to local and global regulations. 'We in Malaysia, both the private sector and government, take this very seriously. We want to make sure everything is fully compliant.' However, Wong said there is a need for greater clarity from the government on specific reporting obligations under the strategic trade permit. 'We need to know what needs to be reported and what constitutes notification to authorities. Once this is clear, companies can incorporate any additional steps needed to meet compliance,' he said. Miti on Monday announced that, effective immediately, all exports, transshipments, and transits of US-origin high-performance AI chips would be subject to a Strategic Trade Permit under Section 12 of the Strategic Trade Act 2010 (STA 2010), also known as the Catch-All Control provision. Under the provision, individuals or companies are required to notify authorities at least 30 days in advance if they intend to export, transship, or transit any unlisted item that may be suspected of being misused or involved in restricted activities. Meanwhile, Pacific Research Center of Malaysia principal adviser Oh Ei Sun said the move would not affect local data centre or AI development projects, as it pertains primarily to the transshipment or export of US-made chips, not their import into Malaysia for domestic use. 'I would not say Malaysia's industry lacked transparency before this. But the US is now taking this issue very seriously, and we are acting accordingly because we value our overall relationship with the US,' he said.
Barnama
15-07-2025
- Business
- Barnama
AI Chip Trade Permit Ensures Malaysia's Compliance, Credibility
BUSINESS By Rosemarie Khoo Mohd Sani KUALA LUMPUR, July 15 (Bernama) -- The trade permit imposed for United States (US) origin high-performance artificial intelligence (AI) chips reaffirms Malaysia's commitment as a trusted hub for managing advanced technology exports, transshipments, and transits. In stating this, Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai said the measure sent a strong signal of Malaysia's seriousness in complying with international trade obligations, including the US export controls. 'The trade permit makes it clear that the government will not tolerate any abuse of exports, transshipment, or illicit trading,' Wong told Bernama when asked to comment on the current measures announced by the Ministry of Investment, Trade and Industry (MITI) on Monday. Wong added that many Malaysian firms have already taken proactive steps, including internal audits, to ensure they adhere to local and global regulations. 'We in Malaysia, both the private sector and government, take this very seriously. We want to make sure everything is fully compliant,' he added. However, Wong said there is a need for greater clarity from the government on specific reporting obligations under the strategic trade permit. 'We need to know what needs to be reported and what constitutes notification to authorities. Once this is clear, companies can incorporate any additional steps needed to meet compliance,' he said. MITI on Monday announced that, effective immediately, all exports, transshipments, and transits of US-origin high-performance AI chips would be subject to a Strategic Trade Permit under Section 12 of the Strategic Trade Act 2010 (STA 2010), also known as the Catch-All Control provision.
The Sun
15-07-2025
- Business
- The Sun
AI chip trade permit ensures Malaysia's compliance, credibility
KUALA LUMPUR: The trade permit imposed for United States (US) origin high-performance artificial intelligence (AI) chips reaffirms Malaysia's commitment as a trusted hub for managing advanced technology exports, transshipments, and transits. In stating this, Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai said the measure sent a strong signal of Malaysia's seriousness in complying with international trade obligations, including the US export controls. 'The trade permit makes it clear that the government will not tolerate any abuse of exports, transshipment, or illicit trading,' Wong told Bernama when asked to comment on the current measures announced by the Ministry of Investment, Trade and Industry (MITI) on Monday. Wong added that many Malaysian firms have already taken proactive steps, including internal audits, to ensure they adhere to local and global regulations. 'We in Malaysia, both the private sector and government, take this very seriously. We want to make sure everything is fully compliant,' he added. However, Wong said there is a need for greater clarity from the government on specific reporting obligations under the strategic trade permit. 'We need to know what needs to be reported and what constitutes notification to authorities. Once this is clear, companies can incorporate any additional steps needed to meet compliance,' he said. MITI on Monday announced that, effective immediately, all exports, transshipments, and transits of US-origin high-performance AI chips would be subject to a Strategic Trade Permit under Section 12 of the Strategic Trade Act 2010 (STA 2010), also known as the Catch-All Control provision. Under the provision, individuals or companies are required to notify authorities at least 30 days in advance if they intend to export, transship, or transit any unlisted item that may be suspected of being misused or involved in restricted activities. Meanwhile, Pacific Research Center of Malaysia principal adviser Oh Ei Sun said the move would not affect local data centre or AI development projects, as it pertains primarily to the transshipment or export of US-made chips, not their import into Malaysia for domestic use. 'I would not say Malaysia's industry lacked transparency before this. But the US is now taking this issue very seriously, and we are acting accordingly because we value our overall relationship with the US,' he said. - Bernama
The Sun
13-07-2025
- Business
- The Sun
Malaysia urged to bolster semiconductor ecosystem to shield itself from potential demand shocks
PETALING JAYA: With the United States still investigating whether to impose tariffs on semiconductors under Section 232 of the Trade Expansion Act of 1962, Malaysia is urged to bolster its semiconductor ecosystem to shield itself from any potential demand shocks. Although no tariffs have been formally introduced, the Malaysia Semiconductor Industry Association (MSIA) warned that downstream repercussions from such a move could ripple through local supply chains, particularly in manufacturing-intensive segments. 'If US tariffs are imposed arising from the investigation, manufacturing-intensive semiconductor segments will likely face the most immediate pressure,' MSIA executive director Andrew Chan Yik Hong told SunBiz in a written response. Chan stressed that Malaysia must consider proactive policy buffers to maintain its global competitiveness if geopolitical tensions escalate. 'Malaysia must continue to engage constructively with U.S. trade counterparts to ensure we remain a trusted, neutral and strategic partner in the global chip ecosystem,' he said. 'But more importantly, we must double down on what we can control.' Despite growing geopolitical headwinds, Malaysia's electrical and electronics (E&E) sector, of which semiconductors are a major component, remains robust. From January to May 2025, E&E exports surged by 20% year-on-year, far outperforming the country's total export growth of 5.5% during the same period. 'This underscores the resilience and competitiveness of our semiconductor ecosystem,' Chan noted. However, he cautioned that the sector's exposure to global demand fluctuations remains a critical vulnerability. A major shift in US trade policy could trigger ripple effects across Malaysia's electronics manufacturing, testing and packaging industries, key pillars of its export economy. 'Semiconductors are the building blocks of modern life. A slowdown in global demand, whether due to tariffs or macroeconomic uncertainty, would inevitably affect Malaysia's semiconductor output,' Chan said. He outlined three major contingency areas that Malaysia must invest in to insulate itself from future shocks and position itself as a long-term chip powerhouse – talent development, ecosystem resilience and supply chain agility. 'We must develop world-class engineers, operators and innovators through deep industry-academic collaboration and remain the most attractive hub for semiconductor design, manufacturing and advanced packaging in the region. 'Malaysia must also expand and diversify upstream and downstream capabilities to absorb global shocks more effectively,' Chan said. Malaysia currently plays a key role in the back-end and increasingly mid-stream segments of the global chip supply chain. While the nation lacks front-end fabrication capacity at scale, its strong foothold in testing, assembly and advanced packaging positions it as a critical node in the Asia-Pacific semiconductor landscape. Chan pointed to the RM319 billion in approved E&E investments between 2021 and 2024 as a sign that Malaysia is at a strategic sweet spot. 'We must capitalise on this with the right policies, long-term vision and execution,' he said. 'Malaysia can emerge stronger, not just weathering global shifts, but positioning itself as a semiconductor powerhouse for the next decade.' While US tariff decisions remain pending, Chan's message is clear: Malaysia must prepare now, not react later. 'The global semiconductor race is no longer just about who can produce the most chips. It's about who can adapt fastest and Malaysia has what it takes to lead, if we stay focused,' he said. The US launched a Section 232 investigation in April to assess whether semiconductor imports pose a national security threat, potentially paving the way for tariffs. While no tariffs are in place yet, the move signals rising protectionism amid geopolitical tensions. Malaysia, which holds 13% of the global chip packaging and testing market, could face ripple effects if global demand shifts. As a key player in the back-end and midstream supply chain, Malaysia has seen over RM319 billion in E&E investments since 2021. The country is positioning itself as a resilient, strategic semiconductor hub in the face of global trade realignments.
