TAIPEI (Taiwan News) — Taiwanese businesses are increasingly turning to Malaysia for production and investment amid geopolitical uncertainty, according to Taiwanese Representative to Malaysia Phoebe Yeh (葉非比).
With the ongoing US-China trade conflict, Malaysia has become an attractive destination for Taiwanese manufacturers seeking to diversify supply chains and maintain production flexibility, CNA reported. Yeh said most of the 1,700 Taiwanese firms operating in Malaysia are small and medium-sized enterprises supplying international giants, with 600 concentrated in the Malaysian state of Penang.
Penang is emerging as a key semiconductor hub in Southeast Asia, with the industry contributing 45% of the city’s GDP. Taiwanese firms in electronics, servers, data centers, smart logistics, and cloud computing have also expanded their presence in the country, Yeh said.
She noted that Taiwan-based companies are drawn to Malaysia for its strategic location near major markets such as China, Singapore, and India. Other advantages include a transparent regulatory environment, a skilled and multilingual workforce, and an established role in the global supply chain.
Taiwanese semiconductor packaging and testing giant Advanced Semiconductor Engineering Inc. (ASE) recently expanded its footprint in Malaysia, opening its fifth plant in Penang this month. ASE Southeast Asia President Lee Kwai Mun (李貴文) said the company plans to double its Malaysian workforce from 3,300 to over 6,000 in the coming years.
Taiwanese computer manufacturer Advantech also operates a service center in Penang, following its customers who prefer to do business in the region to reduce reliance on China. Advantech ASEAN Managing Director Vincent Chang said Malaysia’s education system, talent pool, and English proficiency made it an ideal investment destination.
Penang attracted a record US$12.8 billion (NT$418.7 billion) in foreign direct investment in 2023, surpassing the combined total of the past decade. Taiwan was among the key investors contributing to this surge.
