Samsung Vietnam’s 2024 Profit Drops Despite Revenue Growth
Samsung Electronics’ factories in Vietnam generated over $3.2 billion in profit in 2024, marking a decline compared to the previous year, despite increased revenue. Samsung Electronics Vietnam Thai Nguyen Co. Ltd. (SEVT), the company’s largest mobile phone factory globally, recorded nearly $22.9 billion in revenue, up 7.5% from 2023, but its profit fell by over 7% to $1.44 billion. Similarly, Samsung Electronics Vietnam in Bac Ninh reported $14.8 billion in revenue with a profit drop of nearly 8%, while Samsung Display Vietnam saw declines in both revenue and profit, with the latter plunging 26% to $584 million.
Despite these setbacks, Samsung continued to expand its investment in Vietnam, including a $1.8 billion display and electronic component project in Bac Ninh. The South Korean tech giant remains Vietnam’s largest foreign direct investor, with six factories and over $22 billion in investments. Meanwhile, Samsung Electronics HCMC CE Complex, specializing in television production, saw a 14% revenue increase but a 5.2% drop in profit to $265 million. Overall, Samsung Electronics posted $220 billion in consolidated revenue and $25.2 billion in profit in 2024, both higher than in 2023, even as Vietnam’s Ministry of Finance reported a rising trend of losses among foreign direct investment enterprises in the country.
Editor’s Note: Samsung Electronics’ factories in Vietnam saw a profit decline in 2024 despite a 7.5% revenue increase, with profits dropping over 7% at SEVT and nearly 8% at Bac Ninh, while Samsung Display Vietnam experienced a 26% plunge in profit. However, the company continued expanding its investments in Vietnam, remaining the largest foreign investor in the country with over $22 billion in investments.
Schneider Electric Opens Training Center in Vietnam to Boost Green Skills
Schneider Electric and the Schneider Electric Foundation, in collaboration with multiple agencies, have inaugurated the Center of Excellence at Ly Tu Trong College in Ho Chi Minh City. The facility is designed to train over 200 teachers and enhance skills for more than 45,000 students across Vietnam in energy and automation. Equipped with advanced technology solutions such as smart building systems, smart factories, and solar energy systems, the center aims to bridge the gap between education and industry, preparing young professionals for careers in digital transformation and energy transition.
Schneider Electric plans to support 20 vocational colleges in Vietnam, training thousands of students and teachers in electricity, automation, and renewable energy by 2030 to meet the growing demand for green human resources. Diane Le Goff, global manager of the firm’s Youth Education & Entrepreneurship CSR programs, emphasized the company’s commitment to fostering a highly skilled workforce and driving Vietnam’s sustainable economic transformation. As part of its global efforts, Schneider Electric aims to train one million young people in energy management this year.
Editor’s Note: Schneider Electric has opened a Center of Excellence at Ly Tu Trong College in Ho Chi Minh City to train over 200 teachers and enhance skills for 45,000 students in energy and automation, focusing on digital transformation and green energy. The company plans to support 20 vocational colleges in Vietnam by 2030, aiming to train thousands in electricity, automation, and renewable energy to meet the growing demand for green talent.
Vietnam’s Enfarm Recognized at Global AI Summit for Agricultural Innovation
Vietnamese agritech start-up Enfarm has been named one of the 50 most innovative initiatives at the Artificial Intelligence (AI) Action Summit in Paris, standing out as one of just four Asian projects selected from over 800 applications. Enfarm, co-founded by CEO Nguyen Do Dung and Dr. Ho Phi Long, integrates AI and IoT technology to provide farmers with high-precision soil analysis, optimizing fertilizer use, improving crop yields, and reducing greenhouse gas emissions. The company’s AI-driven platform has boosted coffee farm yields in Vietnam’s Central Highlands by 30% while cutting fertilizer use by the same percentage, effectively increasing farmers’ income by 1.5 times.
Dung highlighted the company’s mission to bring cutting-edge AI solutions to smallholder farmers, addressing challenges like climate change, market volatility, and inefficient resource use. He emphasized the need for greater AI adoption in Vietnam, calling for government support, AI literacy programs, and consumer backing of domestic AI products to enhance the country’s technological self-sufficiency. With its innovative approach and strong social impact, Enfarm aims to expand beyond Southeast Asia and establish itself as a global leader in AI-powered agriculture.
Editor’s Note: Vietnamese agritech start-up Enfarm was recognized at the AI Action Summit in Paris for its innovative use of AI and IoT to optimize fertilizer use, improve crop yields, and reduce emissions, boosting coffee farm yields in Vietnam by 30%. Co-founded by Nguyen Do Dung and Dr. Ho Phi Long, Enfarm aims to expand globally, advocating for increased AI adoption to support smallholder farmers and address challenges like climate change and market volatility.
ASEAN Urged to Boost Regional Cooperation in Trade, Digitalization, and Sustainability
Amid growing concerns over climate change and technological competition, ASEAN nations are being called to strengthen regional cooperation in trade, digitalization, and connectivity to secure economic growth and national interests. With trade in services—spanning finance, telecom, travel, and transport—gaining momentum, ASEAN has positioned itself as a net exporter of services. The tourism sector, which accounts for over 40% of intra-regional travel, presents a key opportunity for economic resilience. Meanwhile, ASEAN’s digital economy is expected to expand from $300 billion to nearly $1 trillion by 2030, with the potential to reach $2 trillion through enhanced regional policies such as the Digital Economy Framework Agreement, which focuses on cybersecurity, data flow, and digital trade.
Infrastructure development and climate-conscious policies are also critical in sustaining ASEAN’s economic competitiveness. Regional cooperation in sustainable infrastructure—such as clean energy and low-carbon transport—aligns with commitments under the Paris Agreement, targeting net-zero emissions by 2050. Strengthening digital connectivity, streamlining supply chains, and improving cross-border logistics will further bolster economic resilience while mitigating environmental impact. As global economic fragmentation poses risks, ASEAN policymakers are urged to view regional collaboration as a public good, ensuring sustainable and inclusive growth for the bloc’s future.
https://vir.com.vn/asean-can-leverage-trade-and-digitalisation-to-foster-resilience-123286.html
Editor’s Note: ASEAN nations are urged to strengthen regional cooperation in trade, digitalization, and sustainability to secure economic growth and address climate change and technological competition. The region’s digital economy is set to grow from $300 billion to nearly $1 trillion by 2030, with potential to reach $2 trillion through policies like the Digital Economy Framework Agreement. Infrastructure development, climate-conscious policies, and enhanced digital connectivity are essential for ASEAN’s economic competitiveness and achieving net-zero emissions by 2050.
Vietnam, India, and US AI Stocks Poised for Strong Growth in 2024
Vietnam and India are expected to be the top-performing Asian stock markets this year, while US artificial intelligence (AI) technology stocks could deliver up to 25% returns, according to Maybank Securities. Dan Ives, the firm’s global head of technology, predicts Nasdaq-listed AI stocks will continue their upward trajectory, driven by increasing global adoption. Apple is projected to become the first company to reach a $4 trillion market capitalization, while Nvidia and Tesla remain strong growth contenders. Despite lingering risks from US-China trade tensions, Ives suggests a portfolio with 60-70% in US stocks, 10-15% in Chinese stocks, and the remainder in alternative investments.
Maybank Securities (Thailand) also highlights Vietnam’s potential, with its stock market poised for an upgrade to the FTSE Emerging Index in September, attracting more investors. Vietnam boasts Asia’s highest profit growth rate of around 25%, significantly outpacing the MSCI ex-Japan average of 11%. However, risks include the depreciation of the dong and potential US tariff increases due to Vietnam’s trade surplus with Washington. Maybank suggests investors allocate 35% of their portfolio to global stocks—70% of which should be US stocks—while balancing with fixed income assets, Thai stocks, and alternative investments.
https://www.bangkokpost.com/business/general/2968191/maybank-upbeat-on-us-ai-tech
Editor’s Note: Vietnam and India are expected to lead Asian stock markets in 2024, with US AI stocks projected to deliver up to 25% returns, driven by global adoption and companies like Apple, Nvidia, and Tesla. Maybank Securities highlights Vietnam’s strong profit growth and potential FTSE upgrade, though risks include currency depreciation and US trade tensions, advising a balanced portfolio with a focus on US stocks.
Indonesia Lifts iPhone 16 Ban After Apple Agrees to Increased Investment
Indonesia and Apple Inc. have reached an agreement to lift the country’s ban on iPhone 16 sales, ending a five-month standoff over local manufacturing requirements. In exchange, Apple has pledged to invest several billion dollars in the country, including funding research and development programs and establishing new production facilities. The Ministry for Industry is expected to sign a memorandum of agreement with Apple this week, with an official permit to follow soon. The dispute began in October when Indonesia refused to grant a sales permit, but Apple’s increased investment, including plans for an AirTag production plant on Batam island and an accessories factory in Bandung, helped secure the deal.
The agreement is a political win for President Prabowo Subianto, whose administration’s tough negotiations have led to a larger foreign investment commitment from the US tech giant. While Apple has no immediate plans to manufacture iPhones in Indonesia, it has settled a previous $100 million compliance debt and will expand its Apple academies to train local talent. The move grants Apple access to Indonesia’s vast consumer market as it looks to offset declining sales in China. However, with Indonesia having backtracked on business agreements in the past, uncertainties remain over the deal’s final implementation.
Editor’s Note: Indonesia has lifted its ban on iPhone 16 sales after Apple agreed to invest billions in local manufacturing, including new production facilities and R&D programs. This agreement, which includes an AirTag plant on Batam island and an accessories factory in Bandung, marks a political victory for President Prabowo Subianto, who secured a larger foreign investment commitment from Apple. While the deal grants Apple access to Indonesia’s consumer market, uncertainties remain due to past issues with business agreements in the country.
Alibaba to Invest $53 Billion in AI and Cloud Amid Tech Resurgence
Chinese tech giant Alibaba has announced plans to invest at least 380 billion yuan ($53 billion) in artificial intelligence and cloud computing over the next three years, marking its largest investment in the sector to date. The move underscores the company’s commitment to AI-driven growth and long-term technological innovation, following years of regulatory scrutiny that had dampened investor confidence. The announcement comes on the heels of Alibaba’s strong quarterly earnings report, which saw an 8% revenue increase to 280 billion yuan, sparking a 14% surge in its Hong Kong-listed shares.
The investment also follows Alibaba co-founder Jack Ma’s recent appearance at a high-profile meeting with President Xi Jinping, signaling potential government support for the private sector. The tech industry in China has been experiencing a resurgence, bolstered by new AI advancements, including the launch of a chatbot by Chinese startup DeepSeek. As Beijing seeks to revive economic growth amid sluggish consumption and property market concerns, Alibaba’s renewed focus on AI and cloud computing is seen as a strategic move to reclaim its dominance in the tech sector.
Editor’s Note: Alibaba plans to invest $53 billion in AI and cloud computing over the next three years, marking its largest investment in the sector as it seeks long-term growth following regulatory challenges. The announcement follows strong earnings and a meeting between co-founder Jack Ma and President Xi Jinping, signaling potential government support for Alibaba’s tech resurgence.
China’s DeepSeek Sparks AI Shockwave, Disrupts Global Markets
In a groundbreaking moment reminiscent of the 1957 Sputnik launch, Chinese AI startup DeepSeek stunned the global tech industry by unveiling a powerful chatbot at a fraction of the cost of US-developed models. The revelation triggered a market upheaval, with shares of chip giant Nvidia plunging 17%, erasing nearly $600 billion in market value—the largest single-day loss for a public company. Meanwhile, some of Nvidia’s key customers saw modest gains. The unexpected development underscores China’s growing AI capabilities, raising concerns about the competitive landscape and geopolitical implications.
The US responded swiftly, announcing broad-based tariffs on Canada, Mexico, and China, signaling potential economic tensions ahead. Newly appointed Treasury Secretary Scott Bessent downplayed the move, calling tariffs a negotiating tool rather than a lasting policy shift. Investors, already bracing for heightened volatility in 2025, are urged to diversify beyond large-cap IT stocks, as cyclical sectors like industrials, financials, and mid-cap equities gain traction. While DeepSeek’s true impact remains to be seen, its emergence reinforces the rapid pace of technological advancement and the vulnerability of even the most dominant tech firms.
https://www.bangkokpost.com/business/general/2968336/tariffs-and-the-ai-sputnik-moment
Editor’s Note: Chinese AI startup DeepSeek disrupted global markets by unveiling a powerful chatbot at a fraction of the cost of US models, causing Nvidia’s shares to drop 17%, erasing $600 billion in market value. The development highlights China’s growing AI capabilities and prompted the US to impose tariffs, signaling potential economic tensions and urging investors to diversify as volatility rises.
EECO and HSBC Thailand Partner to Boost Global Investment in EEC
The Eastern Economic Corridor Office of Thailand (EECO) has signed a strategic partnership with HSBC Thailand to attract foreign direct investment into Thailand’s high-value industries, targeting THB500 billion over the next five years. The agreement grants EECO access to HSBC’s vast international network, spanning 58 markets, and aims to strengthen investment opportunities from key economic corridors such as China, Europe, ASEAN, and Japan. HSBC will support EECO’s investment promotion roadshows in 2025, focusing on sectors like next-generation automotive, digital technology, aerospace, and bio-circular-green industries. EECO Secretary-General Chula Sukmanop emphasized that foreign investment is crucial for Thailand’s economic growth and that HSBC’s global expertise will enhance the EEC’s competitiveness as a regional investment hub.
HSBC Thailand CEO Giorgio Gamba reaffirmed the bank’s commitment to facilitating foreign investment, highlighting Thailand’s strategic location and strong manufacturing ecosystem. In 2024, Thailand saw THB727 billion in FDI approvals, the highest in two decades, with the EEC accounting for 78% of the total. The surge in investment, particularly in smart electronics and electric vehicle production, underscores the EEC’s role in global supply chains. The MoU signing was followed by a business seminar attended by over 50 leaders from multinational corporations, embassies, and chambers of commerce, further reinforcing Thailand’s position as a premier investment destination in Southeast Asia.
https://www.nationthailand.com/business/economy/40046830
Editor’s Note: EECO and HSBC Thailand have partnered to attract THB500 billion in foreign direct investment over the next five years, focusing on high-value industries like automotive, digital tech, aerospace, and bio-circular-green sectors. The collaboration leverages HSBC’s global network to strengthen Thailand’s position as a regional investment hub, following a record THB727 billion in FDI approvals in 2024, with the EEC accounting for 78% of the total.
Grab’s Economic Impact in Thailand: Contributes 1% of GDP, Creates 280,000 Jobs
A new study by the Thailand Development Research Institute (TDRI) has revealed that ride-hailing and delivery platform Grab contributed approximately 1% of Thailand’s GDP in 2023, generating 179 billion baht in economic activity. The study found that Grab’s operations created over 280,000 new jobs and boosted household income by 24 billion baht. TDRI research fellow Nonarit Bisonyabut emphasized that digital platforms like Grab have a widespread economic impact, influencing sectors such as tourism, automotive, energy, and retail. However, experts warn that the rapid rise of the gig economy, particularly among younger workers, may lead to significant shifts in traditional employment structures.
The study also addressed regulatory challenges and the need for government intervention to support gig workers and small businesses. Associate Professor Dr. Danuvas Sagarik from NIDA stressed the importance of upskilling and reskilling programs to help workers adapt to labor market changes. Additionally, researchers urged policymakers to enhance consumer protections against online fraud and implement balanced regulations that encourage fair competition. The TDRI report proposed three key recommendations: leveraging digital platforms to reduce inequality, enforcing regulations that protect users while fostering innovation, and providing support for gig workers and MSMEs to ensure sustainable economic growth.
https://www.nationthailand.com/business/economy/40046750
Editor’s Note: A study by TDRI found that Grab contributed 1% of Thailand’s GDP in 2023, generating 179 billion baht in economic activity and creating over 280,000 jobs, while boosting household income by 24 billion baht. The report calls for regulatory support for gig workers and small businesses, emphasizing the need for upskilling programs, consumer protection, and balanced regulations to ensure sustainable economic growth.
Nissan Reportedly Seeks Tesla Investment Amid Turnaround Efforts
Nissan is reportedly exploring investment from Tesla as part of its search for a new strategic partner following failed merger talks with Honda, according to the Financial Times. Former Tesla board member Hiromichi Mizuno, backed by former Japanese Prime Minister Yoshihide Suga, is leading efforts to secure a deal, with some Nissan board members aware of the discussions. A consortium led by Tesla is being considered, with Taiwan’s Hon Hai Precision Industry Co. potentially taking a minority stake to prevent a full takeover, given its close ties to Beijing.
As part of the talks, Mizuno and his team are reportedly hoping Tesla will consider acquiring Nissan’s manufacturing plants in Tennessee and Mississippi. However, Tesla CEO Elon Musk appeared indifferent to the idea, stating on X, “The Tesla factory IS the product,” signaling that the EV giant may not be interested in integrating Nissan’s facilities into its operations. The negotiations come as Nissan seeks stability and new growth opportunities in the evolving electric vehicle market.
https://www.nationthailand.com/blogs/business/automobile/40046561
Editor’s Note: Nissan is reportedly seeking investment from Tesla as part of its efforts to find a new strategic partner after failed merger talks with Honda, with a consortium led by Tesla and potential involvement from Hon Hai Precision. However, Tesla CEO Elon Musk expressed disinterest in acquiring Nissan’s manufacturing plants, as the company focuses on its own factory operations amidst Nissan’s push for growth in the electric vehicle market.
AI, Omnichannel, and D2C Reshape ASEAN Retail Market
Artificial Intelligence (AI), omnichannel strategies, and direct-to-customer (D2C) business models are transforming the ASEAN retail sector, including Thailand, as consumer behavior shifts toward sustainability and convenience. Kristie Davison, vice president for sales in Asia Pacific at Relex Solution, highlighted that Thai consumers are increasingly purchasing eco-friendly products through social media while demanding greater personalization and seamless shopping experiences. The rapid growth of e-commerce and technological advancements are further shaping the region’s retail landscape, requiring businesses to adapt to changing consumer expectations.
To stay competitive, retailers are embracing three key trends: AI-driven personalization to enhance customer experience and delivery efficiency, omnichannel strategies that integrate online and offline shopping for a seamless journey, and the D2C model, which allows brands to engage directly with customers through exclusive deals. Davison emphasized that AI is playing a crucial role in improving operational efficiency and meeting the demands of younger, sustainability-conscious consumers. As the retail sector evolves, businesses that successfully leverage these trends will be better positioned to thrive in the competitive ASEAN market.
https://www.nationthailand.com/business/economy/40046543
Editor’s Note: AI, omnichannel strategies, and direct-to-customer models are reshaping the ASEAN retail market, with consumers increasingly demanding eco-friendly products, personalization, and seamless shopping experiences. Retailers are embracing AI-driven personalization, omnichannel integration, and D2C models to stay competitive and meet the needs of younger, sustainability-conscious consumers.
Digital investments in Malaysia more than tripled in 2024, amid govt push into AI, advanced computing — MDEC
KUALA LUMPUR: Digital investments in Malaysia more than tripled to hit a record high in 2024, amid the government’s push into artificial intelligence (AI) and advanced computing, latest government data showed.
In 2024, Malaysia’s digital sector attracted RM163.6 billion in investments, a significant increase from RM46.8 billion in 2023, driven by the government’s focus on artificial intelligence and advanced computing.
Investments in data centres and cloud infrastructure accounted for 76.8% of total approved digital investments in 2024. Malaysia has established a dedicated Data Centre Task Force to drive further growth and ensure that the sector stays in line with the country’s long-term sustainability goals. MDEC CEO Anuar Fariz Fadzil emphasized the agency’s commitment to collaborating with other government bodies to attract strategic investments.
Editor’s Note: This substantial growth in digital investments underscores Malaysia’s strategic emphasis on AI and advanced computing, positioning the nation as a competitive player in the global digital economy. The establishment of a dedicated Data Centre Task Force aligns with national sustainability goals, ensuring that technological advancement proceeds responsibly. Such initiatives are expected to bolster economic growth, create high-value jobs, and enhance Malaysia’s standing in the international tech community.
https://theedgemalaysia.com/node/746161
Malaysia Promotes ASEAN’s Digital Economy and Green Initiatives
KUALA LUMPUR (VNA): At the second ASEAN Future Forum (AFF) held in Hanoi on February 25-26, 2025, Malaysian Prime Minister Anwar Ibrahim is expected to emphasized ASEAN’s commitment to sustainable development, stating that the region must address pressing issues to “secure the future of member countries”.
Malaysia is spearheading efforts to strengthen ASEAN’s digital economy and sustainability agenda, aligning with regional goals for innovation and environmental responsibility. The government is focusing on enhancing digital infrastructure, advancing artificial intelligence (AI), and fostering green investments to drive long-term economic growth. Malaysia’s leadership in these areas is expected to create new business opportunities and position ASEAN as a competitive force in the global digital and green economy.
With the region’s growing reliance on digital transformation and sustainable practices, Malaysia aims to collaborate with ASEAN member states to establish regulatory frameworks, encourage cross-border trade, and attract foreign investments in key sectors such as renewable energy and smart technology.
Editor’s Note: Malaysia’s focus on digital and green initiatives reflects the broader shift towards a tech-driven and sustainable future in ASEAN. Strategic collaborations and policy innovations will be crucial in ensuring the region remains globally competitive.
https://en.vietnamplus.vn/malaysia-promotes-aseans-digital-economy-green-initiatives-post310506.vnp
US Policies Have Minimal Impact on Malaysia’s Semiconductor Industry Amid Strong Trade
KUALA LUMPUR: On the back of strong trade ties between Malaysia and the United States, the potential negative impact of US policies on Malaysia’s semiconductor export performance is considered “minimal”, a senior minister said.
In a written parliamentary reply, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that last year, the US was Malaysia’s third-largest trading partner, with a total trade value of RM324.9 billion, accounting for 11.3 per cent of Malaysia’s overall trade. Exports to the US totalled RM198.6 billion, accounting for 13.2 per cent of Malaysia’s exports, while imports from the country reached RM126.3 billion, or 9.2 per cent of total imports, he said. Tengku Zafrul said these figures underscore the strong trade interdependence between Malaysia and the US.
Malaysia’s semiconductor industry remains resilient despite shifting US trade policies, with strong global demand and diversified trade partnerships helping to mitigate potential risks. According to government and industry experts, Malaysia continues to attract semiconductor investments, reinforcing its role as a key player in the global supply chain.
Editor’s Note: Malaysia’s proactive approach in the semiconductor sector positions it to capitalize on global shifts in manufacturing and supply chains. Malaysia’s semiconductor industry remains strong due to strategic investments and global trade partnerships. As demand for advanced chips continues to rise, maintaining innovation and supply chain resilience will be crucial for long-term success.
Malaysia’s Digital Investments Hit Record High at $37 Billion in 2024
Malaysia’s digital economy achieved a major milestone in 2024, with digital investments reaching a record-high $37 billion. The surge in investments reflects the country’s rapid digital transformation, driven by advancements in artificial intelligence (AI), cloud computing, and semiconductor manufacturing.
In 2024, Malaysia’s digital sector achieved a record high in investments, reaching MYR 163.6 billion (approximately $36.81 billion), a significant increase from MYR 46.8 billion ($10.53 billion) in 2023. This surge is attributed to a stable government and pro-business policies that have reinforced the country’s reputation as a regional tech hub.
The Malaysia Digital Economy Corporation (MDEC) highlighted that strong infrastructure and strategic public-private partnerships have bolstered investor confidence. Additionally, Malaysia’s focus on artificial intelligence (AI) and quantum computing has attracted high-value global investments.
Editor’s Note: Malaysia’s record-breaking digital investments underscore its growing influence in the regional tech landscape. Strategic policies and private-sector collaboration will be key to sustaining long-term digital economic growth.
https://technode.global/2025/02/28/malaysias-digital-investments-hit-record-high-at-37b-in-2024/
Malaysia warns US tariffs could halve trade growth as tough semiconductor restrictions loom
Malaysia’s semiconductor industry could face significant headwinds if the United States reintroduces tariffs under former President Donald Trump’s trade policies, a government minister has warned. As a key player in the global semiconductor supply chain, Malaysia’s exports may be impacted, potentially disrupting trade flows and investment confidence.
Malaysia’s Trade Minister, Tengku Zafrul Aziz, has expressed concerns that the U.S. administration’s proposed tariffs could significantly impact Malaysia’s trade growth, particularly affecting key exports like semiconductors. He warned that such measures might halve the nation’s trade growth this year, stating that “should there be tariffs, any new measures by [other] countries or a trade war, there will be an impact.” In response, Malaysia plans to engage in discussions with the U.S. to highlight the mutual benefits of their trade relationship, especially in the semiconductor sector. This proactive approach aims to mitigate potential disruptions in the global supply chain and maintain economic stability.
Despite these concerns, officials remain optimistic about Malaysia’s long-term semiconductor strategy, emphasizing its diversified trade partnerships and ongoing efforts to strengthen local manufacturing and chip design capabilities. The government is also working on mitigating risks through enhanced regional collaborations, particularly within ASEAN and key markets in Europe and China.
Editor’s Note: The proposed U.S. tariffs present both challenges and opportunities for Malaysia. While there is a risk of reduced trade growth, Malaysia’s proactive engagement with the U.S. could lead to strengthened bilateral relations and a more resilient semiconductor industry. This situation underscores the importance of strategic diplomacy in navigating global trade tensions. With geopolitical uncertainties shaping global trade, Malaysia’s ability to adapt and diversify its semiconductor industry will be crucial.