Taiwan investment in Malaysia this year expected to surge to US$400m
28 Aug 2023
Taiwanese investment in Malaysia is projected to surge to US$400 million (RM1.85 billion) this year, up from US$80 million in 2022, due to Taiwan’s recognition of Malaysia as its vital partner in the high-tech sector.
In an exclusive interview with SunBiz in conjunction with Taiwan Expo 2023, Taiwan External Trade Development Council (Taitra) chairman James Huang said Malaysia’s robust technology ecosystem, particularly in Kuala Lumpur and Penang, has made it an attractive destination for Taiwanese companies seeking to expand their presence and tap into new markets.
“Taiwanese investment in Malaysia has increased in a big way. According to Taiwanese government statistics, in 2022, Taiwanese investment in Malaysia amounted to US$80 million. And now, for the first half of 2023, from January to June, over six months, Taiwanese investment in Malaysia already exceeds US$200 million.
“Many Taiwanese companies have come to Malaysia, establishing branches or subsidiary companies. However, these numbers were not included in the calculations, making the actual figures much larger. Therefore, I find it highly plausible that by the end of the entire year in 2023, the investment could easily reach US$400 million — a substantial increase compared to the figures from 2022,” he said.
Huang, taking the helm of Taiwan’s premier trade promotion organisation, emphasised that the island has continued to excel in various sectors amid challenging international economic conditions, particularly in areas such as ICT, semiconductors, green energy and smart manufacturing.
“Taiwan’s innovative energy comes from its people, who are creative, resilient and adaptable,” he said. The spirit is exemplified by the Taiwan Excellence Award, which enhances the global visibility of Taiwan’s industries through self-promotion and collective marketing efforts.
Regarding business ties between Taiwan and Malaysia, Huang stated that Taiwanese companies are not only investing in semiconductors but also in precision manufacturing products and logistics in Malaysia. He also expressed Taiwan’s high interest in assisting Malaysia in the electric vehicle (EV) industry.
“We have very good EV supply chain companies in Taiwan, and we collaborate with all major OEMs in the world, including car companies in Detroit, Europe, and Japan. We visited General Motors, Ford, and we were in Germany in April, visiting Mercedes-Benz, Porsche, Volkswagen, Siemens and a few others. Last month, we were in Japan. Hence, we have a very good EV supply chain,” he said.
Huang mentioned that for EV, if charging is inconvenient, it becomes an issue because people may hesitate to buy EVs. He said that Taiwanese companies are among the world’s leaders in producing EV charging facilities with Delta being one of the most renowned companies in this field.
“We also have software companies that can provide charging and integration services for customers. So I see ample opportunity for Taiwanese companies to collaborate with their Malaysian counterparts in the EV industry. My team will be visiting Malaysia’s Gentari, an establishment with a mission to promote green solutions and the EV industry,” he said.
Looking ahead, Huang said Taiwan’s strong standing in the semiconductor and high-tech industries positions it to support Malaysia’s digital and green transformation endeavours.
He stressed the significance of trade and investment relations between Taiwan and Malaysia.
“The restructuring of global supply chains due to geopolitical changes is creating opportunities for Taiwanese companies to help establish supply chains worldwide. In particular, Malaysia’s evolving semiconductor supply chain, centred in Penang, holds promise for future Taiwanese investments and collaborations,” Huang said.
Source: The Sun Daily
