Malaysia rises to 2nd in the Asia’s Manufacturing Index 2026, driven by a world-class semiconductor ecosystem and RM319 billion in investments.
-- Malaysia’s manufacturing sector has achieved a significant milestone, securing the 2nd rank in the prestigious Asia’s Manufacturing Index (AMI) 2026. This recognition underscores the nation’s transformative growth and robust competitiveness across 8 key pillars of industrial capability.
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The ranking validates Malaysia’s strategic position as a global investment sweet-spot, particularly for high-tech industries. This is most evident in the semiconductor sector, where the country has attracted an unprecedented RM319 billion (US$72 billion) in approved investments from 2021 to 2024, surpassing the total of the previous four decades.
“The AMI 2026 reaffirms Malaysia’s compelling value proposition as a mature, stable, and highly competitive manufacturing hub,” said Andrew Chan Yik Hong, Executive Director of the Malaysia Semiconductor Industry Association (MSIA). “Our rise in this index is intrinsically linked to our decades of excellence in semiconductors, where we are now recognized globally as the world’s #2 destination for back-end manufacturing and 5th for front-end manufacturing attractiveness. This creates a powerful virtuous cycle, attracting further investments and innovation across the entire supply chain.”
Semiconductor Leadership: The Core of Malaysia’s Industrial Strength
Malaysia’s established leadership in semiconductor packaging, assembly, and testing (back-end) is now complemented by a rapidly growing footprint in wafer fabrication (front-end). This comprehensive ecosystem supports a vast network of multinational corporations and dynamic local firms. Key local players, such as SmartLink, which provides critical engineering and manufacturing solutions, exemplify the deep expertise and advanced capabilities that have matured within the Malaysian industrial landscape, enabling and sustaining this high-tech growth.
A Foundation for Future Innovation
Industry leaders view this ranking as a testament to national strategy and a platform for the next phase of growth. The focus is now on advancing innovation, digitalization, and talent development to secure Malaysia’s position at the forefront of advanced manufacturing. The integrated efforts of the entire ecosystem—from policy makers and industry associations to companies large and small—are pivotal to maintaining this competitive momentum.
“This achievement is a collective victory for Malaysia,” added Andrew Chan. “It is a powerful signal to the global market. Our task is to build on this foundation, ensuring Malaysia remains the destination of choice for smart, sustainable, and technologically advanced manufacturing.”
About the Asia’s Manufacturing Index 2026:
The Asia’s Manufacturing Index (AMI) 2026, published by Dezan Shira & Associates, provides a comparative analysis of the manufacturing competitiveness of 11 major Asian economies. It evaluates factors including cost competitiveness, economic resilience, infrastructure, innovation, and the political and regulatory environment.
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Name: Michael Lim
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Organization: Smartlink Engineering
Address: 17 Jalan Sungai Jerluh 32/196 Seksyen 32, Shah Alam, Selangor 40460, Malaysia
Website: https://smartlinkengineering.com.my
Source: PressCable
Release ID: 89183588
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