LETTERS: The Kerian Integrated Green Industrial Park (KIGIP), recently announced by Prime Minister Datuk Seri Anwar Ibrahim, will boost the growth of the semiconductor industry and attract more global players to set up shop here.
The World Semiconductor Trade Statistics said the global semiconductor market will grow by16 per cent this year and 12.5 per cent in 2025.
This figure was boosted by the recent announcement by the Semiconductor Industry Association that worldwide sales of semiconductors totalled US$137.7 billion in the first quarter of this year, an increase of 15.2 per cent compared with the first quarter of last year.
Malaysia is one of the top six largest exporters of semiconductors, so the data and projections made by research firms would be a boon for the industry, in particular the electrical and electronic sector.
The trade war between the United States and China and tariffs imposed by EU on China for electric vehicles (EVs) have made this region, especially Malaysia, attractive.
KIGIP will cater to the high demand for semiconductors and this effort is in line with the New Industrial Master Plan 2030, which will boost the manufacturing sector's contribution to the gross domestic product by 6.5 per cent.
More importantly, this new hub will be equipped with solar farm to generate electricity for investors.
As the country moves towards net zero carbon emission as early as 2050 by diversifying to green energy, KIGIP will support green initiatives stipulated in the National Energy Transition Roadmap.
On top of that, KIGIP's location next to the semiconductor hubs of Batu Kawan and Kulim Hi-Tech Park will make this area the Silicon Valley of Asean in the future.
This growth will be driven by economic complementarity, geographical proximity and political commitment between federal and state governments.
KIGIP can concentrate on the niche application of semiconductors, particularly in EVs and automotive industries, to support the Automotive Hi-Tech Valley in Tanjung Malim.
The EV semiconductor market is expected to grow at a compound annual growth rate of around 30 per cent from 2022 to 2030.
As the world races toward EVs, semiconductors are the behind-the-scene players powering this shift.
Semiconductor chips, for example, are at the heart of critical systems in EVs, influencing battery management, adaptive cruise control, and boosting efficiency and safety.
KIGIP also supports the development of rural and less developed areas.
For instance, the average household income in Kerian in 2022 was RM3,996.00 compared with Kinta, Manjung and Muallim districts, which were RM5,037.00, RM5,135.00 and RM5,015.00 respectively.
The average revenue for the Kerian District Council in 2021 was RM42.8 million compared with Ipoh, Manjung and Taiping, which recorded RM405.3 million, RM130.7 million and RM99.1 million respectively.
So KIGIP will support the growth of the semiconductor industry, increase the adoption of green energy for electricity generation, and promote inclusivity that provides equal growth opportunities in the nation.
DR. AHMAD SHAHIR ABDUL AZIZ
Senior manager, InvestPerak
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times