Malaysia to create more investment destinations

Infineon’s investment is a reflection of the confidence level placed by global investors in Malaysia’s attractiveness and stability

by BERNAMA / pic by BERNAMA

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 yesterday, said the government would also continue with its efforts to make Malaysia the most attractive investment destination in South-East Asia and constantly encourage existing investors to re-invest in the country.

The statement came after PM Tan Sri Muhyiddin Yassin visited Infineon Technologies (M) Sdn Bhd’s factory in Batu Berendam, which is the Melaka operations of German semiconductor giant Infineon Technologies AG, after chairing the Economic Action Council’s meeting yesterday at a hotel in Bandar Hilir.

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

“With this investment, Infineon has 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 also highlighted that 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 continued to be the key driver of the supply side of the Malaysian economy with a combined share of 22.3%.

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.