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SEMICONDUCTORS – WHY IS TAIWAN SUCCEEDING SO MUCH BETTER THAN MALAYSIA?

27/09/2025 10:46 am MYT

Last week, in this BTB column, I compared Malaysia's 1st prime minister with her 4th/7th prime minister and concluded that had Malaysia continued to grow and develop based on the socio-economic policies and political philosophy of Tunku Abdul Rahman, Malaysia would have achieved far beyond what she has since 1971. Malaysia would have, by now, been a true economic miracle. Instead, Malaysia is dangerously stuck in the middle-income trap.

Then under last week's KLSE section, we explained the great importance of semiconductors to investors and the whole Malaysian economy. The semiconductor industry is so important that we have even allocated a lot of space and time in the 2025 investor Day for all kinds of experienced speakers to talk on this fascinating and profitable topic. Almost every economy in the world has a national semiconductor strategy.

Based on my decades of research and experience, I am convinced that if there is one industry that will lift Malaysia out of the destructive middle-income trap, it is the semiconductor industry. Malaysia must succeed in staying competitive and relevant in this vast and complex global industry. For this week's BTB column, I will explain why Malaysia has fallen so far behind Taiwan in the global semiconductor industry. This week's BTB is unusual, and I believe it is one of the most insightful analyses you can find on this topic. 


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Note from Publisher

i Capital will pause its publication for one issue in the week beginning 29 Sep. However, www.icapital.biz will be updated as usual and the operating hours of our Kuala Lumpur office will remain unchanged. Volume 37, number 9 of i Capital will henceforth be dated 9 Oct - 15 2025.

 

According to a report by Gogolook and the Global Anti-Scam Alliance, 85% of Malaysians encountered a scam attempt last year and nearly three in four fell victim to scams in 2024. The average loss among victims was RM4,844.70. Education and age offered little protection, with 82% of victims being highly educated and 78% being millennials. Fraudulent investment-related activity is the most common type of scam, accounting for 63% of the total.

 

Since 2010, Capital Dynamics and icapital.biz Bhd have been organising NOT-FOR-PROFIT Investor Day every year. We believe that everyone should have access to high-quality investment education. This belief forms the foundation of this annual investor education event. Malaysians need to be educated to be smarter investors and understand what sound investment is like. By joining the content-rich Investor Day, participants would learn not only about the proper way of investing, but also a diverse range of relevant issues.

 

Please go to https://invday.icapital.biz/events/2025 to view the programme and register for the 2025 Investor Day. To help them from falling victims to investment scams, please also invite your friends and relatives to join you in this important investor education event. It is intentionally held on a weekend for the convenience of the public.

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