PENANG — Malaysia’s capital market can play a greater role in supporting the growth and expansion of the country’s semiconductor industry by providing companies with financing options suited to their stage of development, Securities Commission Malaysia (SC) chairman Datuk Mohammad Faiz Azmi said.
He said the semiconductor industry required significant and sustained investment in research and development, talent, equipment and technological capabilities, particularly as Malaysian companies sought to move into higher-value segments.
“Realising such ambitions requires significant investment,” he said in his welcoming remarks at the “Powering SemiCons: Financing Your Next Breakthrough” event in Penang on Aug 19.
Faiz said the capital market could complement traditional financing sources by offering diverse funding pathways for businesses with lengthy development cycles, substantial capital expenditure requirements and long gestation periods.
He said early-stage semiconductor design companies could tap patient and risk-tolerant capital to fund product development and commercialisation, while established equipment manufacturers could seek growth capital to expand capacity, acquire technology or enter new markets.
More mature companies, meanwhile, could access the public market to support their regional or global expansion, he said.
“For growing and early-stage businesses, this means recognising that equity crowdfunding (ECF), peer-to-peer (P2P) financing and venture capital are likely options and identifying which is more suited for your needs.
“Conversely, the equity market as well as corporate bonds and sukuk may be more appealing prospects for businesses looking to scale further,” he said.
Faiz said the right capital partner could also provide strategic guidance, stronger governance, industry networks and access to new customers and business opportunities, adding that such value could sometimes be more important than the funding itself.
He said public-private collaboration through ECF and P2P financing platforms could help catalyse and crowd in private investment into strategically important industries, including semiconductors.
He cited the New Industrial Master Plan 2030 Strategic Co-Investment Fund (NIMP CoSIF), which is designed to support strategic sectors including semiconductors and the electrical and electronics industry.
Under its proposed two-to-one co-investment structure, close to 70 per cent of the financing would come from the government, with the remaining 30 per cent mobilised from private investors, he said.
Faiz said Malaysia was already occupying a vital position in the global semiconductor value chain, with Penang having developed capabilities beyond assembly and manufacturing into semiconductor design, advanced packaging and testing, automation, specialised equipment and research and development.
He said semiconductors were strategically important to Malaysia as they powered technologies ranging from artificial intelligence and data centres to electric vehicles, medical devices, advanced manufacturing and renewable energy systems.
“More home-grown companies” should be encouraged to develop intellectual property, commercialise technology and expand internationally, he said.
Faiz said the SC remained committed to developing an inclusive, innovative and responsive capital market that could meet the financing needs of domestic businesses.
The event brought together companies, investors, market intermediaries and ecosystem partners to explore market-based financing solutions for the semiconductor industry.
