The Investment, Trade and Industry Ministry (Miti) is creating targeted incentives aimed at boosting local semiconductor industry growth, said its minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the announcement will be made in July to mark the first anniversary of the launch of the National Semiconductor Strategy.

"I can't reveal too much about what we will be announcing, but what I can say is we are going to continue supporting this industry.

"We've been engaging with the industry to understand its needs and priorities. Of course, we know what it wants is more fiscal support to strengthen the ecosystem, but also the right policy framework," he said in his keynote address at a Malaysian Investment Development Authority supply chain event here today.

The event was part of the SEMICON Southeast Asia 2025, the region's premier platform for the electronics and semiconductor industry.

Tengku Zafrul said Miti would continue working closely with players in the semiconductor sector as the ministry navigates changes within the industry amid geopolitical uncertainty.

He emphasised that Malaysia would continue to advocate global collaboration and dialogue to ensure the country remains relevant in the global supply chain.

"We recognise the sovereign right of nations to develop their domestic industries, but we must also stress the importance of global collaboration," he said.

The minister noted that Malaysia has been part of the semiconductor industry since the 1970s and has grown steadily, built strong partnerships, and attracted some of the world's most renowned companies.

He said that last year, Malaysia's semiconductor sector contributed about US$130 billion (RM575 billion) to national electronics exports and now accounts for 13 per cent of global back-end semiconductor output.

Meanwhile, at a luncheon with industry leaders, Tengku Zafrul said Malaysia is actively diversifying its markets and has ratified 17 free trade agreements (FTAs) to date.

"The Malaysia-South Korea FTA will be finalised in October. We have resumed FTA negotiations with the EU (European Union). Negotiations for FTA upgrades with China and India are also ongoing at the Asean level, where Malaysia is leading the agenda this year as chair," he said.

He added that Malaysia is also advancing negotiations on the Digital Economic Framework Agreement this year.

Earlier, Tengku Zafrul launched the Malaysia Pavilion at SEMICON SEA 2025.

The Malaysia External Trade Development Corporation brought over nine Malaysian companies to participate in the event, offering a wide range of products and services tailored to the microelectronics and semiconductor value chain.

More than 90 Malaysian firms are participating in SEMICON SEA 2025.