KEYNOTE ADDRESS BY YAB PRIME MINISTER: LAUNCHING CEREMONY STRATEGIC PARTNERSHIP IN THE SEMICONDUCTOR INDUSTRY

KEYNOTE ADDRESS BY

THE HONOURABLE DATO’ SERI ANWAR IBRAHIM

PRIME MINISTER OF MALAYSIA

AT THE

LAUNCHING CEREMONY STRATEGIC PARTNERSHIP IN THE SEMICONDUCTOR INDUSTRY

5 MARCH 2025 | WEDNESDAY | 3.30PM

SHANGRI-LA HOTEL, KUALA LUMPUR

Assalammualaikum Warahmatullahi Wabarakatuh dan Salam Sejahtera.

YB Dato’ Seri Mohd Rafizi bin Ramli,

Menteri Ekonomi;

YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz,

Menteri Pelaburan, Perdagangan dan Industri;

YBhg. Tan Sri Dato’ Sri Shamsul Azri bin Abu Bakar,

Ketua Setiausaha Negara;

Mr Rene Haas,

Ketua Pengarah Eksekutif Arm Holdings;

Duta-Duta Besar; dan

Rakan-rakan yang saya muliakan.

Hari ini sebenarnya kita catat satu sejarah dalam dunia semikonduktor. Satu tekad dengan dasar, Semiconductor Strategy yang kita luncurkan tahun lalu dan kita laksanakan melalui beberapa inisiatif dan dengan Arm, gergasi dalam bidang semikondoktor dan AI, dan seperti mana yang disebut seolah-seolah sebagai pencetus perubahan ini saya anggap Malaysia di tapak yang benar. Saya nak ambil kesempatan ini juga untuk menyatakan bahawa persiapan bukan sahaja daripada yang disebut ekosistem tetapi latihan, segala kemudahan yang mungkin harus dikerahkan untuk melaksanakan program ini.

Tengah hari tadi saya dengan KSN ke MOSTI dan apa yang kita tekankan? kita bicara soal Arm, kita bicarakan keperluan seluruh jentera Kerajaan, universiti, pusat penyelidikan, industri, agensi sains harus digerak dan dikerahkan untuk pastikan anak-anak kita punyai latihan yang cukup dari segi kelayakan, keterampilan, kemahiran, supaya dapat memanfaatkan kehadiran syarikat semikonduktor gergasi seperti Arm.

Excellencies, Ladies and Gentlemen,

Today, we stand at a similar crossroads, as we experienced in the 70s, referred to the Rene Haas just now. The National Semiconductor Strategy (NSS), launched last year, represents a fundamental shift—elevating Malaysia beyond a production hub to become a leader in high-value semiconductor activities.

Beyond assembly and testing, the NSS prioritizes IC design, semiconductor manufacturing equipment, advanced packaging, and front-end processes, making strides to expand Malaysia’s role in the global semiconductor supply chain.

Thank you, Rene and I must state that last year I had and opportunity to participate the KL20 and met CK Tseng.

CK Tseng, thank you very much, I somehow rather identified him and said I want to see you if possible tomorrow in the office and took the opportunity to listen. The Arm team is quite formidable because in half an hour they were able to convince me, partly because I think my technical critics may be limited. So, these enchanting terms were dramatic.

So, with Rafizi and Zafrul, the team, we started working and they said that about 8-9 months was surprisingly short in terms of affecting this major stride. I told them given a choice; I would have done it in three months. That’s how I’m convinced about Malaysia’s partnership with Arm to ensure that we succeed.

Now, the Government has made semiconductors a national priority, committing significant resources and a structured, long-term strategy to drive this transformation.

Today, Malaysia’s collaboration with Arm represents the start of the second semiconductor wave or I would say even revolution. This marks a fundamental shift in our approach to semiconductors and technology that will define our future.

Through a comprehensive partnership with Arm, we have conceived one of the most ambitious technological plans Malaysia has ever seen: to pioneer Made by Malaysia AI chips. These chips will be designed, manufactured, tested and assembled here, and sold to the rest of the world.

This partnership has three key features: First, it will establish comprehensive training programmes for 10,000 IC design engineers, creating a robust talent pipeline for our semiconductor industry.

I alluded to this issue early on in Malay to instruct all relevant agencies both in the public and the private sector. Our education institutions, our universities must focus and start this program immediately, and I think the various ministers must then receive immediate report on the monthly basis about the plan in collaboration with arm and the industries now.

Second, it will provide selected Malaysian companies with privileged access to ARM’s cutting-edge technology and the IP portfolio.

Third, it will facilitate the development of a locally designed semiconductor products, advancing five of the nation’s goal of producing more advanced chips in Malaysia.

Beyond offering state-of-the-art technologies that cover all parts of semiconductor design, ARM is also establishing its first ASEAN office in Kuala Lumpur. With the aim to expand outreach to ASEAN, Australia and New Zealand markets. I am thankful for the trust that the ARM senior management has placed on our country.

This partnership was made possible by cross ministerial effort involving Ministry of Economy, Ministry of Investment, Trade and Industry (MITI). We will have to ensure a competitive and structured investment framework is easier with MITI than the Ministry of Finance. MIDA must continue to spearhead facilitation efforts and finalizing the agreement. Of course, the Ministry of Finance, the urging of the Ministry of Economy of course, so that we can align our financial incentives and sustainable long term economic impact.

Together, these ministries have worked diligently to secure Malaysia’s position as a global semiconductor leader. I am confident, Insya-allah, that we will create economic multipliers that are not confined by the beautiful shores of Malaysia.

The day — where Malaysia embarks on the second semiconductor wave — is finally here.

Thank you again. Terima kasih.

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