Malaysia pledges to further create attractive investment destination

Malaysia pledges to further create attractive investment destination

14 Sep 2020

The government will reinstate its firm and serious commitment to further creating a healthy investment climate in the country.

The Prime Minister’s Office (PMO), in a statement today, said the government will also continue with its efforts to make Malaysia the most attractive investment destination in Southeast Asia and constantly encourage existing investors to re-invest in the country.

The statement was issued after Prime Minister Tan Sri Muhyiddin Yassin’s visit to an Infineon Technologies (M) Sdn Bhd’s factory in Batu Berendam here, which is the Melaka operations of German semiconductor giant InfineonTechnologies AG, after chairing the Economic Action Council’s (EAC) meeting earlier in the morning at a hotel in Banda Hilir.

The Prime Minister also announced Infineon’s pledge of investing RM3.25 billion in a span of 10 years until 2029.

“With this multibillion investment, Infineon has, indeed, paved the way to expedite the semiconductor sector to move up the value chain towards higher-margin processes such as the Packaged Integrated Circuit,” the statement said.

The PMO said this marks another milestone in the long-standing and multi-faceted partnership between Malaysia and Germany, as well as a reflection of the confidence level placed by global investors in Malaysia’s attractiveness and stability.

The statement said within the manufacturing sector, the electronics industry topped the chart as the main contributor, as partially reflected in investments from international companies like Infineon.

Last year, the manufacturing sector continues to be the key driver of the supply side of the Malaysian economy, with a combined share of 22.3%.

Earlier, during his visit, Muhyiddin took the opportunity to engage directly with Infineon managers and employees, listening to their opinions and suggestions over the challenges in confronting the post-Covid-19 period.

Infineon has been operating in Malaysia for 47 years.

To date, Malaysia is the only country outside Germany where Infineon has both the Wafer Fabrication and Assembly and Test facilities, comprising both front-end and back-end manufacturing processes.

Infineon Melaka has grown from a conventional manufacturing site to one of the leading R&D centres since its inception.

In terms of employment, Infineon is also the largest employer in Melaka, with almost 9,000 employees, providing 2% job opportunities to the local population.

Source: Bernama