In line with the National Semiconductor Strategy (NSS), Malaysian companies are encouraged to ‘move up the industry value chain’ by increasing their research and development (R&D) activities to reduce risks and enhance their export competitiveness by leveraging business opportunities with Malaysia’s Free Trade Agreement (FTA) partners in trade deals with the US.
“Collaborating with major industry player, particularly from the US, can enhance local industry’s capabilities in microchip innovation and the development of new technologies in high-demand sectors such as artificial intelligence (AI) and 5G,” said the Ministry of Investment, Trade and Industry (MITI) in a statement.
According to MITI, Trump announced plans to impose new tariffs of up to 25% on imports from Mexico and Canada, along with an additional 10% tariff on all goods imported from China starting next year.
The ministry added that Malaysia, like other nations is likely to experience shifts in trade patterns as global supply chain realign.
At the same time, it is confident that Malaysia’s position as a neutral and non-aligned country could further strengthen the nation’s bilateral relations with the US.
“This approach would encourage US companies to continue investing in Malaysia as part of their risk-mitigation strategies amidst ongoing geopolitical tensions.
“Indirectly, this ensures a positive outlook for Malaysia, underpinned by its strong fundamentals and the adoption of globally favourable trends,” it added.
For example, the Sabah state government’s aspiration to position Sapangar Bay Container Port (SBCP) as a regional trade hub is expected to deliver significant long-term economic benefits for the state.
On this, Assistant Minister of Works Datuk Robert Tawik said that following the takeover of the port operations from Sabah Ports Sdn Bhd (SPSB), global port terminal operator DP World Plc has formulated various strategies to realise the goal.
“Key initiatives include expanding the container port’s capacity, with DP World planning to enhance the Sapangar Bay Port to accommodate higher cargo volumes and improve logistics efficiency. This will position Sabah as a competitive shipping hub in the region,” he said.
Robert added that DP World will also collaborate with international operators to adopt best practices and implement advanced technologies, expediting cargo transfer and reducing operational times.
Apart from that, DP World also plans to strengthen strategic trade routes by expanding its maritime network, a move expected to reduce logistics and shipping costs. Additionally, developing a free trade zone at the port is expected to attract substantial foreign investment, stimulate downstream activities and increase cargo throughput.
“The resulting economic growth will contribute to state revenue through corporate taxes collected by the Sabah government,” he said.
