Government, banking and industry unite to advance Melaka’s semiconductor future

• Industry leaders, policymakers, ecosystem partners discuss state’s semiconductor ambitions
• Goal to strengthen collaboration and accelerate sustainable growth within Malaysia’s semiconductor ecosystem
  

The Malaysia Semiconductor Industry Association (MSIA), in collaboration with Malaysian Investment Development Authority (MIDA), Invest Melaka Bhd, Infineon Technologies (Malaysia) Sdn Bhd and Maybank, jointly hosted the MSIA Dialogue & Networking Session with the Chief Minister of Melaka on 16 July 2026 at Hatten Hotel, Melaka. 

While it is overshadowed by Penang’s globally acknowledged semiconductor ecosystem, Melaka claims its own semiconductor heritage spanning more than five decades, and continues to build on that foundation. Anchored on the theme “Transforming Melaka into a future-ready semiconductor and advanced manufacturing hub: Driving talent, sustainability and industrial excellence,” the dialogue between the public and private sectors to discuss the state’s semiconductor ecosystem, industry competitiveness and opportunities brought together almost 150 industry leaders, policymakers, government agencies and financial institutions.

Supporting this direction, the Melaka Semiconductor Strategic Plan 2026–2035 complements Malaysia’s National Semiconductor Strategy (NSS), with discussions focused on strengthening industry capabilities, enhancing supply chain resilience and supporting high-value investments to position Melaka as one of Malaysia’s leading semiconductor and advanced manufacturing hubs. Ab Rauf Yusoh, Chief Minister of Melaka highlighted the state’s semiconductor journey and the importance of strengthening investment, industry and TVET development to support the next phase of growth. 

The MSIA dialogue featured a panel discussion moderated by Ginie Lim, CEO of Invest Melaka, with perspectives from the industry, government, and financial sectors. Tay Kheng Chiong, Group Managing Director & CEO of Dominant Opto Technologies Sdn Bhd, shared insights on the growth journey of Malaysian semiconductor SMEs, emphasising the need to strengthen capabilities and meet global customer expectations. Highlighting ecosystem development, Derrick Tanggapan, Director of MIDA Melaka, outlined how local SMEs can capture higher-value opportunities through strategic investments and partnerships.

To enable this growth, Zulfadhli Marjo, Head of Islamic Transaction Banking Solutions & Innovation at Maybank Islamic Bhd, discussed tailored financing and capital solutions aimed at supporting SMEs as they scale operations through technology, automation, and talent development.

Sikh Shamsul Ibrahim, CEO of MIDA, said, “Melaka has come a long way in building its semiconductor industry; today, it has the industrial base, skilled workforce and supplier network needed to compete for the next generation of high-value investments.”

Sikh that the electrical and electronics (E&E) industry continues to be a key driver of Malaysia’s investment landscape, attracting RM6 billion in approved investments in the first quarter of 2026, the highest among all manufacturing industries.

With its established ecosystem, Sikh expressed confidence that Melaka is well placed to capture a greater share of opportunities. “The next phase of growth requires close collaboration between government, industry and the financial sector to deepen supply chains, accelerate technology adoption and help Malaysian companies move up the value chain.”

Ginie said “Melaka’s semiconductor strength is built on decades of industrial presence and investor confidence, and our focus is to build on this foundation by connecting emerging opportunities with the right capabilities and partnerships. Through this approach, we aim to strengthen Melaka’s position as a preferred location for the next phase of semiconductor growth.” 

Wong Siew Hai, President of the Malaysia Semiconductor Industry Association (MSIA), commented, “Malaysia’s future competitiveness will not be determined by manufacturing capacity alone, but by the strength of our semiconductor ecosystem. As we move from ‘Made in Malaysia’ to ‘Made by Malaysia’, every state has a role to play. Melaka has already built a strong foundation and is well positioned to become a key driver of advanced technologies, talent development and innovation that will strengthen Malaysia’s global semiconductor leadership.” 

Ranita Abdullah, Managing Director, New Economy & Group Global Banking Sustainability, Maybank, said, “Maybank is committed to supporting Melaka’s aspirations to attract quality domestic and foreign investments into advanced and high-tech industries, while strengthening the ecosystem of multinational corporations and local SMEs as supply chains evolve and businesses enhance operational resilience. We are equally keen to support the state’s sustainability aspirations and Smart City digital transformation agenda, in line with Maybank’s ROAR30 strategy to mobilise RM300 billion in sustainable finance and RM100 billion for the New Economy across ASEAN.”