He said a more dynamic ecosystem would include startups, innovative tech pioneers, and a blend of venture capital and private equity to stimulate growth.

“Malaysia sits very attractively in the global semiconductor and artificial intelligence scene,” he said at the opening of a recruitment day for the semiconductor industry, Bernama reported.

“This position is not guaranteed. It’s a very competitive and dynamic environment and the landscape has fundamentally shifted.”

Rafizi said research and innovation are needed to meet the challenge of moving up the value chain from back-end processes to front-end operations, particularly in integrated circuit design.

The minister said he hopes to attract 15 more foreign companies to the IC Design Park in Puchong, in order to achieve the target of jobs for 20,000 high-skilled professionals. He noted that seven firms have come on board, generating about 600 jobs in front-end chip design.

He said Malaysia has a growing demand for engineers, estimating a need for around 60,000 professionals.