KUALA LUMPUR, MALAYSIA – Media OutReach Newswire – 3 September 2025 – Malaysia’s semiconductor ambitions are moving in step with its role as ASEAN chair, with investment momentum signalling a larger regional shift in the global chip supply chain. In the first half of 2025, the country secured RM190.3 billion (USD45.2 billion) in approved investments, an 18.7 per cent increase over the same period last year.

Singapore was the largest foreign investor with RM43.4 billion (USD10.3 billion), reflecting strong cross-border confidence in Malaysia’s trajectory.

Over 89,000 new jobs to be created through projects spanning manufacturing, services and the primary sector. The electrical and electronics (E&E) industry stood out with RM13.1 billion in new commitments, highlighting Malaysia’s push to evolve beyond its traditional role in assembly and testing. The National Semiconductor Strategy (NSS), launched in 2024, has already attracted RM54.2 billion in its first year, marking a strong start towards the government’s RM500 billion target by 2030.

“What investors are responding to is Malaysia’s ability to deliver. In semiconductors, that means proven ecosystems in Penang and Johor, strong links with Singapore, and a pipeline of trained engineers ready to take on higher-value roles. The NSS gives us a clear direction, but credibility comes from how quickly projects move from approval to operation. On that front, Malaysia is building real trust,” said Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA).

Moving Upstream

In March 2025, Malaysia signed an agreement with Arm Holdings Plc to gain access to the UK-based firm’s design library – aiming to produce its own chips within the next decade.

Malaysia currently controls seven per cent of the global semiconductor market, with six out of the 12 largest semiconductor companies globally operating in the country.

This share is expected to increase as semiconductor players worldwide turn to Southeast Asia for a stable microchip supply chain, as the US-China trade war escalates.

A Turning Point for Local SMEs

At home, small-medium enterprises (SMEs) such as CG Global Profastex hail the NSS as “a turning point” in moving beyond traditional manufacturing into higher-value activities like advanced test development, product design enablement, and process automation.

Operating out of Penang for almost a decade now, CG Global serves both front-end and back-end semiconductor-related customers – particularly in equipment, test, and automation subsystems – in Malaysia and selected ASEAN markets.

“Traditionally, EMS SMEs operated in transactional roles—limited to basic assembly or support functions. Today, under the NSS framework, we have been actively encouraged to move up the value chain.

“It pushes us to upgrade our infrastructure, adopt advanced technologies, and build the capabilities needed to support complex, precision-driven industries,” said CG Global managing director Siti Padillah Binti Abdul Wahab.

Siti Padillah said the company plans to apply for NSS-aligned funding to scale up production capacities and adopt digital tools in order to strengthen Malaysia’s position within ASEAN semiconductor landscape.

“With the NSS as our guide, we are investing in the future—so Malaysia can lead not only in volume, but in value,” she added.

If anything, CG Global reflects the confidence boost that hundreds of homegrown enterprises have received from the NSS to pursue larger ambitions and greater appetite for growth.

Going Global as a Region

In 2024, the ASEAN semiconductor market was valued at US$95.91 billion, making up 15 per cent of the global semiconductor market that reached a record high of US$627.6 billion.

The region’s market share is set to soar in the coming months, thanks to the newly-launched Johor-Singapore Special Economic Zone (JS-SEZ), which combines Singapore’s upstream excellence and Malaysia’s Outsourced Semiconductor Assembly and Test (OSAT) strength.

Johor emerged as Malaysia’s top state for approved investments in the first half of 2025, recording RM56 billion (USD13.3 billion). Among the early movers was Japan’s Ferrotec Group, a leading supplier of materials, components and equipment for the global chip industry. The company commenced operations at its new facility in Johor in April 2025, supporting both regional and international customers.

“The JS-SEZ offers efficient cross-border logistics and connectivity with Singapore, which is critical for our operations,” said Soo Kim Fatt, director of Ferrotec Power Semiconductor Malaysia. “Its proximity to Singapore provides excellent transport accessibility, making it easier for international customers, partners, and overseas colleagues to visit Johor Bahru for meetings, technical support, and collaboration.”

“The JS-SEZ is more than just proximity. It gives investors access to Singapore’s design and R&D right next to Malaysia’s manufacturing and assembly,” said Sikh Shamsul Ibrahim. “Together with the NSS, it strengthens ASEAN’s position as a credible alternative in the global semiconductor supply chain.”

Johor’s role is also expected to strengthen further by significant technological advancements from a partnership between YTL Power International and Nvidia, focused on Artificial Intelligence (AI). Located at the YTL Green Data Centre in Kulai, this landmark project adds a critical digital infrastructure layer to the state’s technology ecosystem, positioning Malaysia as a leading AI hub in the region.

Tapping the Talent Pool

Beyond infrastructure and investments, Malaysia is also actively positioning itself as a regional talent magnet and a training hub for semiconductor expertise.

As of mid-2025, Malaysia has trained over 13,000 high-skilled semiconductor talents – more than one-fifth of the 60,000 target outlined in the NSS.

The government sees this as part of a regional effort. During the one-year anniversary of the NSS, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia’s training and upskilling initiatives are part of a “broader, regional, ASEAN-wide push”, pointing to deep STEM pipelines in Vietnam, the Philippines and Indonesia. Under Malaysia’s chairmanship, initiatives such as the ASEAN Framework for Integrated Semiconductor Supply Chains (AFISS) are promoting cross-border training and collaboration.

MIDA is working with investors to align training and academic programmes with industry needs. “Talent is the decisive factor for the next phase of growth. Our priority is to make Malaysia both talent-rich and talent-ready, while attracting the best from around the region,” said Sikh Shamsul Ibrahim.

The Test Ahead

The NSS has given Malaysia a running start, drawing global names, lifting SMEs and tying national ambition to ASEAN’s broader potential. Its early success lies not only in billions invested but in the alignment, it has fostered between government, industry and regional partners.

Hashtag: #MIDA

https://www.mida.gov.my/

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SINGAPORE – Media OutReach Newswire – 3 September 2025 – Franklin Templeton, one of the world’s largest global asset managers, is celebrating 35 years of serving clients in Singapore, highlighting its long-standing commitment to delivering world class investment solutions in the country.

Since establishing its presence in Singapore in 1990 with a dedicated emerging markets research office, Franklin Templeton — through its Singapore entity, Templeton Asset Management Ltd — has grown to become a trusted partner for retail and institutional investors in the Lion City over the years. Franklin Templeton was among the first few foreign fund managers to offer overseas funds to the investing public in Singapore in 1996 with the establishment of Singapore’s first umbrella and feeder fund into the Franklin Templeton Luxembourg funds, along with Singapore’s first emerging markets fund that year. The following year, Franklin Templeton continued to break new ground with the launch of Singapore’s first global equity fund. Franklin Templeton has also played a key role in advancing financial literacy and investor education in Singapore and the broader region through its education platform – the Franklin Templeton Academy.

Singapore today serves as one of the key regional offices for Asia Pacific, anchoring the firm’s investment leadership across public and private markets, while also housing strategic regional functions including distribution, operations, marketing, human resources, compliance, and legal.

Manraj Sekhon, Chief Investment Officer of Templeton Global Investments and Co-CEO of Templeton Asset Management Ltd said: “Franklin Templeton is proud to celebrate 35 years in Singapore – a journey that has mirrored the remarkable evolution of the nation’s financial landscape. We have had the privilege of contributing to the growth of one of Asia’s most sophisticated capital markets, providing local investors with access to global opportunities and delivering deep, differentiated investment expertise across markets. Today, Singapore is not only the headquarters for Templeton Global Investments, one of our Specialist Investment Managers, but also a strategic hub as part of our firm’s broader global footprint.”

Tariq Ahmad, Head of APAC at Franklin Templeton and Co-CEO of Templeton Asset Management Ltd said, “As Franklin Templeton celebrates 35 years in Singapore – alongside the nation’s 60th year of independence – we reflect on a shared journey of growth and transformation. We are honored to have been a trusted partner to our clients through different market cycles and are proud of the relationships we have built here over the past decades. This year, we have been working on a number of pioneering initiatives from launching the country’s first retail tokenized fund, to expanding access to high-quality secondary private equity for investors. Looking ahead, we remain committed to driving innovation and delivering future-ready investment solutions that meet the evolving needs of our clients in Asia Pacific.”

Franklin Templeton’s commitment to Singapore and the Asia Pacific region is reflected in its strong partnerships with leading institutional clients and financial institutions – both global and local – delivering customized investment solutions to meet the evolving needs of the market. Looking ahead, the firm remains focused on deepening its presence in Asia Pacific by continuing to add to its diversified suite of investment capabilities designed to serve a broad spectrum of investor segments across the region.

DISCLAIMER: This press release is for information only and does not constitute investment advice or a recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. This document may not be reproduced, distributed or published without prior written permission from Franklin Templeton.

Any research and analysis contained in this document has been procured by Franklin Templeton for its own purposes and may be acted upon in that connection and, as such, is provided to you incidentally. Although information has been obtained from sources that Franklin Templeton believes to be reliable, no guarantee can be given as to its accuracy and such information may be incomplete or condensed and may be subject to change at any time without notice. Any views expressed are the views of the fund manager as of the date of this document and do not constitute investment advice. The underlying assumptions and these views are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole.

There is no assurance that any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets will be realized. Franklin Templeton accepts no liability whatsoever for any direct or indirect consequential loss arising from the use of any information, opinion or estimate herein.

The value of investments and the income from them can go down as well as up and you may not get back the full amount that you invested. Past performance is not necessarily indicative nor a guarantee of future performance.

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