H.E Yeo Seung-bae
Ambassador of the Republic of Korea to Malaysia
Mr Kim Jeonghoi
Vice Chairman of the Korea Semiconductor Industry Association
Senior Government Officials from the Republic of Korea and Malaysia
Distinguished guests, ladies and gentlemen,
Annyeonghaseyo, and a very good morning.
1. This important Government-to-Government (G2G) dialogue on semiconductor cooperation between Malaysia and the Republic of Korea is a very timely effort given the world and the world of semiconductors is facing fundamental shifts. I would like to thank the Government of Korea for the collaboration and shared commitment in advancing the strategic semiconductor agenda.
2. I recall vividly a strong message articulated by Professor Keun Lee of Seoul National University where he compared Penang with Korea, Taipei and Shenzhen. He argues that the reasons Penang did not acquire Malaysia’s own technologies and could not create giants such as Samsung, TSMC, or Huawei were due to heavy reliance on foreign direct investment without strong localisation.
3. This is something that has always been on my mind: how can Malaysia take this opportunity to learn from Korea in building on our strengths to leapfrog our semiconductor industry?
4. In 2023, I visited Korea and met with the economic security advisor to the then President of Korea. He told me that Korea mapped out the supply chain for 195 critical items. I am impressed by the capability and ability to think through how to build a resilient supply chain. This is also something that Malaysia can learn from Korea, especially in the semiconductor industry.
Malaysia’s Semiconductor Vision
5. Now, the key is for Malaysia to build up local knowledge, capabilities and innovation, to create an ecosystem.
6. Malaysia’s semiconductor industry is undergoing a transformative phase. With the launch of our National Semiconductor Strategy (NSS), we are charting a new course to position Malaysia as a critical node in the global semiconductor value chain, one that goes beyond assembly and testing to embrace advanced packaging, IC design, equipment manufacturing, and innovation.
7. Last year, Prime Minister Datuk Seri Anwar Ibrahim announced the National Semiconductor Strategy in order to guide the government to shape semiconductor investments and policies. As part of this strategy, the Prime Minister laid out our ambition to establish at least 10 Malaysian companies in design and advanced packaging, with revenues between RM1 billion to RM4.7 billion (USD210 million to USD1 billion), and at least 100 semiconductor-related companies with revenues close to RM1 billion (USD210 million), ultimately creating higher wages for Malaysian workers.
8. We acknowledge that the Government of Korea has always been guided by industrial policy in building the semiconductor industry, and Malaysia wants to be able to emulate this and collaborate with Korea in building our own semiconductor supply chain.
9. This dialogue marks an important step toward realising a structured and future-oriented partnership between our two nations.
10. Let us work together, Government to Government, and industry to industry, to unlock the full potential of our partnership for the benefit of our economies, our industries and our people.
Thank you, Kamsahamida, Terima kasih.