Kuala Lumpur, 13 February 2025: ERIA was honoured to welcome YB Liew Chin Tong, Deputy Minister of Investment, Trade, and Industry (MITI) of Malaysia, on the second day of the Workshop on the Progress of the Study for the ASEAN Framework for an Integrated Semiconductor Supply Chain (AFISS).

Jointly organised by ERIA and the Institute of Malaysian & International Studies, National University of Malaysia (IKMAS-UKM), the workshop took place from 12 to 13 February 2025 at the Shangri-La Hotel Kuala Lumpur, gathering key semiconductor stakeholders, including policymakers, industry representatives, government agencies, and private sector leaders.

The session, moderated by Prof. Dr Sufian Jusoh, Director and Principal Fellow of IKMAS, began with a briefing by Dr Han Phoumin, ERIA’s Senior Energy Economist, who presented the progress, outcomes, and preliminary findings of the AFISS study.

A ‘Race to the Top’ for ASEAN’s Semiconductor Industry

In his remarks, Deputy Minister Liew Chin Tong underscored ASEAN’s strength as a regional economic powerhouse, fueled by a growing middle class and Asia’s role as a global hub for technological innovation. He highlighted ASEAN’s potential to become a key player in the semiconductor industry, given its expanding demand for consumer electronics and its strategic position in global supply chains.

However, he cautioned against the risks of intra-regional competition leading to a ‘race to the bottom’, where member states might resort to lowering labour and regulatory standards – such as maintaining a low-wage workforce – to attract foreign investments. Instead, he urged ASEAN nations to collaborate in a ‘race to the top’, ensuring sustainable economic growth while maintaining high labour, environmental, and regulatory standards.

By strategically recognising and positioning the role of each ASEAN Member State, the region can enhance its collective competitiveness in the global semiconductor value chain. Deputy Minister Liew’s participation reaffirmed MITI’s strong commitment to the successful development of the AFISS framework, which is amongst the Priority Economic Deliverables (PEDs) under Malaysia’s 2025 ASEAN Chairmanship.

Continued Collaboration Towards an Integrated Semiconductor Ecosystem

The ERIA delegation at the workshop included Dr Han Phoumin (Project Co-Leader), Yuta Okuyama (Policy Fellow and Chief of Staff at ERIA President’s Office), Tri Muliani Manik (Senior Assistant, Research Activities), and Ardhana Tahriza Syarif (Research Associate).

IKMAS was represented by Prof. Dr Sufian Jusoh, Prof. Dr Azrul Azlan Hamzah (AFISS Project Co-Leader and Fellow at the Institute of Microengineering and Nanoelectronics, UKM), and Dr Hariszuan Jaharudin, a key project member.

The 2-day workshop supported the study’s preliminary findings, with contributions from experts across ASEAN Member States. It followed an earlier workshop held in Penang on 12–13 December 2024, which initiated the study’s information-gathering and stakeholder engagement processes.

With growing regional collaboration, the AFISS initiative aims to lay the groundwork for a more resilient, integrated, and competitive semiconductor supply chain across ASEAN.