THE Malaysia Semiconductor Industry Association is fully supportive of the decision by the government to defer the condition that at least 80% of the workforce must be Malaysians by two years.

In a statement today, association president Wong Siew Hai said that electrical and electronic companies in Malaysia prefer to hire Malaysians rather than foreign workers, but there is a shortage of suitable or industry-ready workers in Malaysia, despite the recent increase in minimum wage.

“The industry is doing all it can to hire Malaysian workers. Currently, we are encouraging SPM leavers to join our Academy in Factory programme, where they undergo on-the-job training for 18 months and then receive a technician certificate after successfully completing the training,” he said.

The association said the industry is a key contributor to the Malaysian economy and is a key growth industry, as it also received the most investment opportunities in 2021, with 94 approved projects worth RM148 billion, which would create 28,362 job opportunities.

These investments by the industry in Malaysia signified that there is still a strong demand for semiconductors globally, with supply not meeting demand, the association said, adding that with companies expanding their existing factories and/or are building new factories to try to meet the demand for semiconductors, the critical challenge facing the industry is the shortage of workers.

A survey it undertook in November 2021 comprising 80 of its members concluded that the industry needs at least 30,000 workers immediately as companies expand or open new factories.

The association said the impact of the shortage is very severe on small and medium enterprises (SMEs) because they are also losing workers to multinational companies, which offer higher pay. – Bernama, July 17, 2022.