Bursa Malaysia-HLIB Stratum Focus Series XVII Reinforces Strategies for Semiconductor Industry Growth – SME Magazine
Bursa Malaysia Berhad and Hong Leong Investment Bank (HLIB) have hosted the 17th Edition of the Bursa Malaysia-HLIB Stratum Focus Series, a platform for industry discourse on the theme: “Semiconductors: Light at The End of The Tunnel?”
Senator Tengku Datuk Seri Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry (MITI) delivered the keynote address at the event held at Bursa Malaysia, gathering industry leaders, investors, and stakeholders to explore the present landscape and prospects of the global semiconductor industry. The discussions were particularly timely given the recent launch of the National Semiconductor Strategy (NSS), emphasising the relevance and urgency of the topics addressed.
To ensure long-term growth and sustainability within the semiconductor industry, the Prime Minister Dato’ Seri Anwar Ibrahim announced the NSS in May 2024. The NSS aims to address the critical need for sought after talent, by producing 60,000 highly-skilled engineers and establishing Malaysia as a global R&D hub.
The global semiconductor industry, a critical driver of technological advancement, is poised for a significant rebound after recent fluctuations. According to the Semiconductor Industry Association, global sales are expected to grow by double digits in 2024. The World Semiconductor Trade Statistics (WSTS) echoes this sentiment, projecting an annual growth of 16.0% in 2024.
Lee Jim Leng, Group Managing Director and CEO of Hong Leong Investment Bank in her opening remarks pointed out that Malaysia has found itself at a strategic crossroad in this evolving landscape. “The current global economic landscape presents a unique opportunity for Malaysia to establish itself as a key production hub. By attracting foreign investment and establishing a resilient domestic supply chain, Malaysia can play a pivotal role in meeting the global demand for semiconductors.”
“We are committed to leveraging our investment banking expertise to connect promising Malaysian semiconductor companies with global capital markets. This will provide them with the resources they need to expand their operations and fuel domestic innovation,” Lee added.
Datuk Muhamad Umar Swift, CEO, Bursa Malaysia in his closing remarks emphasised Bursa Malaysia’s commitment to supporting the industry’s growth. “Bursa Malaysia recognises the critical role a vibrant and transparent market plays in attracting long-term investment.
“By actively facilitating investment into our local semiconductor players, we foster an environment that is conducive for growth and innovation. This, in turn, strengthens Malaysia’s position as a compelling destination for global investors seeking exposure to the exciting prospects within the semiconductor industry.”
The Bursa Malaysia Technology Index comprising 48 constituents with a total market capitalisation of about RM90 billion, primarily led by semiconductor companies, was the top performing sector in May 2024. It has climbed 18% year-to-date, reaching its highest level since April 2022. Notably, investors’ interest in the sector continued to be elevated after the announcement of the NSS.
Dato’ Seri Wong Siew Hai, President of the Malaysia Semiconductor Industry Association (MSIA), further commented on the outlook of the sector. “The semiconductor industry presents a wealth of exciting opportunities for Malaysia.
The global demand for advanced technology continues to surge, with more and more businesses across every sector becoming increasingly reliant on digital solutions. This exponential growth creates a prime environment for Malaysia to reclaim its position as a leading player in the global semiconductor landscape.”
The 17th edition of the Bursa Malaysia-HLIB Stratum Focus Series concluded with a resounding message of optimism on the future of the Malaysian semiconductor industry. By harnessing its strategic advantages, embracing innovation, and fostering a collaborative environment, Malaysia is poised to strengthen its position in this vital industry.
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