KUALA LUMPUR: As trade tensions continue to simmer between Beijing and Washington, foreign companies are moving their manufacturing facilities out of China in a bid to establish production hubs in other nations.
With many semiconductor and electric vehicle companies relocating to Southeast Asia to bypass trade restrictions and strengthen their supply chains, Malaysia is in a particularly sweet spot. “Because of the trade war between them, we become a suitable conduit to balance trade war between these two countries ... European countries relocating to Malaysia because they want to export their products to China."Malaysian Prime Minister Anwar Ibrahim has also been on a charm offensive, travelling overseas to woo high-tech investments.
The country has seen a steady increase in foreign direct investment in the tech sector since 2021, with Intel and fellow chip giant Infineon Technologies each investing US$7 billion to go beyond packaging, assembling and testing. “We've seen examples of how some Chinese companies who have come into Malaysia in the past, they do not fully integrate with the local supply chain,” he noted.
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