Central bank highlights country’s growing role in the global semiconductor supply chain powering artificial intelligence infrastructure.
BY TENGKU NOOR SHAMSIAH TENGKU ABDULLAH
KUALA LUMPUR, March 31 – Malaysia is increasingly well positioned to benefit from the rapid expansion of global investment in artificial intelligence infrastructure, particularly through its growing role in the semiconductor supply chain, Bank Negara Malaysia (BNM) said.
Speaking during the press conference accompanying the release of its latest economic reports, Governor Dato’ Sri Abdul Rasheed Ghaffour said global demand for semiconductors, data centres and digital infrastructure is rising sharply as artificial intelligence technologies spread across industries.
This surge in technology investment is becoming a major pillar supporting global economic growth.
Malaysia already plays a significant role in the global semiconductor ecosystem, particularly in supplying key components used in advanced computing systems.
“If GPUs are the brains of AI, Malaysia supplies the nervous system and other vital organs,” Rasheed said.
These include components such as power chips, optical transceivers and high-speed connectors that are essential to modern computing systems.
Malaysia is also strengthening its capabilities in advanced semiconductor packaging and front-end activities, allowing the country to capture more value in the global electronics supply chain.
At the same time, rising investments in data centres are expected to support Malaysia’s ICT services exports and generate wider economic spillovers.
The central bank noted that Malaysia’s diversified export base also provides resilience to global economic volatility.
No single country accounts for more than 16% of Malaysia’s exports, while the country produces a wide range of goods and services ranging from commodities to advanced technology products.
- TNS NEWS