Malaysia’s electrical and electronics (E&E) exports are expected to exceed RM800 billion (around USD 197 billion) in 2026, marking significant growth from RM601 billion in 2024 and RM711 billion in 2025 [1, 2]. Semiconductors represent about 65% of these exports, making the sector a key contributor to Malaysia’s trade in electronics [1, 2].

Datuk Seri Wong Siew Hai said, “I don’t see that slowing down, I see that continuing. In fact, the number could be higher.” The steady rise in exports signals strong demand and capacity growth in Malaysia’s E&E sector [1].

Malaysia’s semiconductor production has so far remained unaffected by geopolitical tensions such as the war in Iran, despite rising helium prices that affect semiconductor manufacturing globally [1]. This stability is vital for maintaining Malaysia’s position in the global supply chain.

The country is seen as a strategic hub for semiconductor supply chains serving both US and China markets. This is described as a "once-in-a-generation" opportunity to meet growing demand from major economies [1].

Malaysia is actively seeking to attract Japanese semiconductor investment to fill critical supply chain gaps and strengthen its manufacturing capabilities [1].

Prime Minister Anwar Ibrahim visited Japan in June 2026 for three days, indicating diplomatic efforts likely linked to trade and investment cooperation in sectors including semiconductors [1].

Malaysia’s E&E export growth, led by semiconductors, is expected to build on the RM711 billion recorded in 2025 and surpass RM800 billion this year, sustaining its role as a vital player in regional and global electronics markets [1, 2].