Malaysia’s semiconductor small and medium enterprises (SMEs) have been urged to elevate their capabilities to meet the demanding standards of multinational corporations (MNCs) in technology, quality, capacity, cost, reliability, and delivery. This call came from the Malaysia Semiconductor Industry Association (MSIA) during the SME-MNC Connect Day and SME Financing Conference 2026 held in George Town on September 24-25.
MSIA president Datuk Seri Wong Siew Hai stressed the need for local SMEs to identify gaps in their operations to better align with global supply chain requirements. “We want the growth of Malaysia’s semiconductor industry to create opportunities not only for global companies, but also for Malaysian firms to grow alongside them,” Wong said during the conference’s opening session.
The two-day event, themed “Grow Local, Compete Global,” attracted around 200 participants, including representatives from 15 major MNCs such as AT&S, Intel, Infineon, TF AMD, and MKS Instruments. The event provided a platform for direct engagement, giving local SMEs access to MNC decision-makers and allowing companies to better understand procurement policies, supplier qualification standards, and localisation opportunities.
Wong explained that the programme was initiated following feedback from both SMEs and MNCs, which revealed a disconnect. According to MNCs, some Malaysian suppliers were not fully prepared to meet global standards, while SMEs felt they lacked opportunities to showcase their capabilities. The direct dialogue helped clarify these issues by enabling MNCs to communicate their specific requirements clearly, allowing SMEs to evaluate their readiness for potential collaborations.
“If the criteria are too high, a company may need further development,” Wong noted. “If it meets the criteria, it can participate in localisation projects.” He further highlighted the challenge SMEs face in reaching key decision-makers within large corporations and said the event was designed to bridge this gap.
Wong emphasized that this initiative is part of a broader strategy aligned with Malaysia’s National Semiconductor Strategy (NSS), aimed at strengthening the domestic semiconductor ecosystem and promoting the growth of local companies. He underscored the importance of transitioning Malaysia’s role from a manufacturing base to a center of innovation and value creation, calling it a move from “Made in Malaysia” to “Made by Malaysia.”
Penang state trade committee chairman Goh Choon Aik, who also spoke at the event, highlighted the importance of converting MNC investment into tangible benefits for local SMEs. “We want more Penang SMEs to enter these supply chains, improve their capabilities and grow from being suppliers into internationally competitive companies,” he stated. Goh pointed to Penang’s established electrical and electronics (E&E), engineering, manufacturing, and professional services sectors as foundational assets that local SMEs can leverage to expand internationally.
Goh also cautioned that local companies cannot rely solely on government support; they must enhance their quality, technology, productivity, certification, delivery, and professional standards to remain competitive.
The second day of the conference focused on SME financing, connecting participants with government agencies, banks, investors, and capital market entities. The event was supported by diamond sponsors Maybank, MoneySave P2P, and TCL Grontec SEA, reflecting a broader industry effort to link companies with the necessary financial resources, technological capabilities, and ecosystem support essential for sustainable growth.