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Malaysia plans Southeast Asia's largest integrated circuit design park
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Malaysia plans Southeast Asia's largest integrated circuit design park
Apr 21, 2024 8:57 PM

KUALA LUMPUR, April 22 (Reuters) - Malaysia plans to

build Southeast Asia's largest integrated circuit design park

and will offer incentives including tax breaks, subsidies and

visa exemption fees to attract global tech companies and

investors, the government said on Monday.

Malaysia is aiming to turn Kuala Lumpur into a regional

digital hub, with the goal of being among the top 20 countries

in the global startup ecosystem index by 2030.

Prime Minister Anwar Ibrahim said the proposed

integrated circuit design park was part of Malaysia's efforts to

move beyond backend chip assembly and testing and into

high-value front-end design work.

The country is a major player in the semiconductor

industry, accounting for about 13% of global testing and

packaging.

The park, to be backed by Malaysia's central Selangor

state, will house world-class anchor tenants and collaborate

with global companies such as British chipmaker Arm Holdings

, Anwar said, without providing further details.

Malaysia's sovereign wealth Khazanah Nasional will also

launch a fund to invest in innovative high-growth Malaysian

companies, with an initial allocation of 1 billion ringgit

($209 million), Anwar told the KL20 Summit event, aimed at

launching new policies to support Malaysian start-ups.

Economy Minister Rafizi Ramli said the government will

offer incentives including subsidised office spaces, exemptions

on employment passes, relocation services and lower corporate

tax rates for foreign venture capital firms, tech entrepreneurs

and unicorns - startups reaching a $1 billion valuation -

looking to invest in Malaysia.

"We want to attract global unicorns to enter Malaysia, so

that high-skilled and high-value jobs are created, besides

developing a pipeline of future entrepreneurs and senior leaders

in tech," Rafizi said.

($1 = 4.7820 ringgit)

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