Deputy Finance Minister Liew Chin Tong has proposed a one-stop centre for semiconductor and deep-tech financing in the Penang-Kulim corridor, arguing that the region has the industrial base to stand alongside Silicon Valley, Taiwan’s Hsinchu, and the Netherlands’ Brainport Eindhoven.
The centre would offer integrated financing solutions to deep-tech companies, bridging what Liew described as a gap between innovation and capital. He made the proposal in his opening address at The Edge-HSBC E&E Symposium 2026: The Value Chain Shift in Kuala Lumpur.
“Our ambition is for Penang and its neighbouring Kulim to take their place alongside Silicon Valley, Taiwan’s Hsinchu, and the Netherlands’ Brainport Eindhoven as a premier global tech cluster,” Liew said, as reported by Malay Mail.
He called on venture capital and private equity firms to move upstream into design and intellectual property, where value creation is highest. “To our market institutions, help us deepen liquidity, extend ratings coverage, and fuel the growth of this sector,” he added.
The proposal builds on an existing push to position the northern corridor as a semiconductor powerhouse. Penang is home to approximately 45 IC design companies and hosts major multinational operations including Intel, Infineon, and AMD. Across the border in Kedah, Kulim Hi-Tech Park anchors further semiconductor manufacturing capacity.
Electrical and electronics products account for 40 per cent of Malaysia’s national exports, the largest share of any category. Apart from China and Taiwan, around 13 per cent of global semiconductor assembly and testing is carried out in Malaysia.
Penang Port Commission chairman Datuk Yeoh Soon Hin said in May that the state is transitioning from contract manufacturing to innovation and IC design under its “Silicon Valley of the East 2.0” vision, according to The Star. The RM120 million Silicon Design @5km+ programme, led by Invest Penang, is a five-year initiative aimed at turning Penang into a global IC design centre.
Liew urged the capital market to view Malaysia as a technology nation rather than just a trading nation. He invited regulators and industry players to shape a financing framework that supports the sector’s growth.
