Penang, Malaysia: Due to Malaysia’s advantageous location, highly qualified workforce, and function as a global supply chain center, Taiwanese businesses are investing more in the country.
Semiconductors are among the industries establishing or growing their presence in the nation as supply chain restructuring and geopolitical tensions influence business strategies.
Taiwanese companies increase their footprint in Malaysia
One of the numerous businesses expanding their presence in Malaysia is Taiwan’s ASE Technology Holding Co., a world leader in semiconductor testing and packaging.
According to ASE Southeast Asia President Lee Kwai Mun (李貴文), the company, which now has 3,300 employees in the nation, anticipates that figure to double in the upcoming years.
According to Lee, Penang has been actively advancing the semiconductor sector for many years, and today it is home to more than 4,000 small and medium-sized businesses and 350 international corporations.
He pointed out that the industry contributes 45% of Penang’s GDP and 5% of the world’s semiconductor sales.
In addition to semiconductors, Taiwanese businesses are growing in industries like servers, cloud computing, smart logistics, and electronics.
Investment is driven by changes in geopolitics.
Given the trade row between the United States and China and measures to diversify supply chains, Malaysia has become a desirable location for Taiwanese companies. The nation is a strategic site for businesses seeking to preserve production and distribution flexibility because of its closeness to important markets like China, Singapore, and India.
As indicated by Alex Tan, an engineer at the Southeast Asia division of Taipei-based WinWay Technology Co., which established a commercial and technical service center in Penang in May 2023, Malaysia is now establishing as a key hub for Chinese enterprises moving overseas.
Over the past few decades, Taiwanese investment in Malaysia has increased substantially. There are currently 1,700 Taiwanese companies working in the nation, and between the 1980s and September 2024, Taiwanese companies invested a total of US$15.2 billion.According to Taiwan’s envoy to Malaysia, Phoebe Yeh, 600 of these businesses are headquartered in Penang and have invested a total of US$2.7 billion.
Taiwan’s representative to Malaysia, Phoebe Yeh (葉非比), stated that 600 of these businesses are headquartered in Penang and have invested a total of US$2.7 billion.
What makes Malaysia so special?
In the opinion of industry experts, a number of factors, such as the supply chain ecosystem, bilingual workforce, and stable regulatory environment, have helped Malaysia become a desirable location for Taiwanese enterprises.
