Analysts have foreseen Malaysia’s National AI Action Plan 2030 to spur the artificial intelligence (AI) adoption across the country.

Kenanga Research said in a note that the plan may spur the adoption of AI across sectors (e.g. manufacturing, healthcare, logistics).

“It may also benefit local AI chip designers, data centers, and software integrators and encourages partnerships between academia, startups, and multinational corporations (MNCs),” said the research house.

Under the 13th Malaysia Plan (13MP), Malaysia has announced the National AI Action Plan 2030 to drive development of AI research, talent, and commercialization to support widespread AI adoption across industries.

MBSB Research house also sees the government’s move to focus on supply chain modernization using AI, promotion of IP-based research and development (R&D) and circular systems, will creates demand for warehouses, logistics hubs, and high-spec data centers.

According to the research house, AI-infused supply chain infrastructure will also benefit precision-engineered contractors and smart utility builders.

Meanwhile, the government has also announced the implementation of National Semiconductor Strategy (NSS) alongside New Industrial Master Plan 2030 (NIMP 2030) and National Energy Transition Roadmap (NETR).

The government has also started reforms in the economic structure, including through the New Industry Master Plan (NIMP 2030), Transition Roadmap State Energy (NETR), National Semiconductor Strategy (NSS) and the State TVET Policy 2030.

Kenanga opined that the policies will strengthen Malaysia’s role in global semiconductor value chain under the NSS; supports local tech firms in moving into front-end and design-led activities; potential to attract more foreign direct investment (FDI) and joint ventures in high-value semiconductor segments.

The government has also announced a flagship semiconductor program. It plans to elevate electrical and electronics (E&E) export value from MYR 600 billion ($142 billion) in 2024 to MYR 1 trillion by 2030 via the High Technology Semiconductor Industry Flagship initiative.

Kenanga says this plans will raise export competitiveness of Malaysia’s E&E cluster, benefits export-driven manufacturers and large-scale E&E providers.

“They will also encourage automation and technology upgrades, which could raise demand for precision equipment, testing systems and industrial automation solutions,” said the research house.

According to Kenanga, potential beneficiaries from these policies are automated test equipment (ATE) players.

Overall, MBSB is also positive on the government’s effort to reinvigorate the semiconductor sector in the country, which will bring about a positive multiplier effect.

Based on the ARM’s partnership, which was announced earlier this year, it noted the focus is more on developing the front end of the semiconductor value chain, especially in the field of IC design.

To note, currently Malaysia’s involvement in the semiconductor ecosystem is more on the back end of the semiconductor value chain, whereby 13 percent of the global chip assembly, testing and packaging is done in the country.

Maybank Investment Bank also viewed Malaysia’s plans a constructive policy direction that could elevate Malaysia’s position within the global semiconductor value chain.

“That said, the absence of detailed execution plans at this juncture makes it difficult to gauge the near-term impact on the players,” it noted.

While sentiment may improve around semiconductor- related counters, it believes investors will be looking for greater policy clarity and project timelines before re-rating the sector meaningfully.

Under the 13MP, the government has prioritised comprehensive reforms to strengthen Malaysia’s semiconductor industry in line with the NSS.

Strategic collaborations will be established with global and local players across the semiconductor value chain to accelerate the shift towards high-value, complex product
manufacturing.

This will be supported by a technology and IP-driven investment model, with GLICs actively involved in nurturing local firms as strategic partners or acquisition
targets.

The goal is to develop world-class local champions, particularly in IC design, and boost the production of “Made by Malaysia” high-value, high-tech (HVHT) semiconductor
products.

To support this transformation, the investment ecosystem will be enhanced through circular economy practices and AI-driven digitalization, while investment incentives will favor IP-based ventures and alternative financing such as credit guarantees and venture capital.

The government also aims to develop a skilled talent pipeline, targeting 700,000 skilled workers by 2030, supported by expanded in-industry training programs.

These initiatives will focus on key locations such as the Kerian Integrated Green Industrial Park, Kulim High Technology Park, and the Johor-Singapore Special Economic Zone (JS-SEZ) reflecting a broader effort to position Malaysia as a global hub for advanced semiconductor manufacturing.

Analysts: Malaysia’s push to rejoin global chip supply chain shows results