Malaysia Targets Semiconductor Growth Through New Export Infrastructure

PAS proposes infrastructure to support semiconductor and electronics exports.

PAS has proposed a highway connecting Kulim Hi-Tech Park in Kedah, a major semiconductor manufacturing centre, to a port on Kelantan’s east-coast. The party is also looking to establish a cargo airport in Kedah. This will support exports of chips and electronics. Proposed port expansions in Terengganu and Kelantan will improve trade links and improve manufacturing and logistics investment. These proposals are a part of a comprehensive economic development plan encompassing the four Malaysian states controlled by PAS.

PAS has outlined plans to develop industries spanning semiconductors, rare earth processing, and renewable energy. The proposals cover Kedah, Kelantan, Terengganu and Perlis, collectively known as the SG4 grouping.

PAS vice president Ahmad Samsuri Mokhtar said the four states account for approximately 70% of Malaysia’s rare earth resources. The party wants to expand processing, technology transfers, and downstream manufacturing where deposits are commercially viable. It also wants local companies to participate in these activities rather than limiting development to raw material extraction and exports.

The proposals were outlined at PAS’s first business and economic forum in Kuala Lumpur. The four states signed a memorandum of understanding with investors, including China Energy International Group. The four states remain among Malaysia’s least developed and rely heavily on federal funding or oil revenue to support growth.

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“The objective should not be limited to extracting and exporting raw materials; a good chance, or even a better chance, we’ll come to that when the time comes.” Ahmad Samsuri Mokhtar, PAS vice President and Terengganu Menteri Besar.

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