Investment in Infineon: Many try to take credit, Tengku Zafrul explains

KUALA LUMPUR - Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz has come forward with an explaination following allegations made by some parties who tried to take credit for the recent investment by Infineon Technologies AG.

He explained through a TikTok video today that the investment by the German semiconductor solutions provider was an additional investment made during the unity government's administration based on political stability and not the investment that was announced last year.

"Why are Infineon and other companies more confident in investing in Malaysia this year? One of the reasons is political stability," he said.

When the government frequently changed, investors may become less confident about entering the market as the new government might change policies, which could negatively impact investments, he added.

However, he said the current government is strong, with a two-thirds majority and was expected to remain stable until the end of its term.

He pointed out that this confidence was reflected in the economic achievements in the first quarter of this year, with approved investments reaching RM71.4 billion, a 60 per cent increase compared to the first quarter of the previous year.

Tengku Zafrul also said that last year, Infineon wanted to invest RM8 billion.

With the Investment, Trade and Industry Ministry (Miti) providing incentives, Infineon's investment of RM25 billion this year will create numerous job opportunities for Malaysians, he said.

He said the company's products will be exported, leading to a significant increase in national revenue.

Infineon on Thursday announced plans to expand its facilities in Kulim to build the world's largest 200-millimetre silicon carbide (SiC) power fabrication with an additional investment of five billion euros over the next five years.

For the past five decades, Infineon has considered Malaysia as a crucial hub for wafer fabrication in Kulim and semiconductor chip packaging activities in Batu Berendam, Melaka.

Summarising on the investment, Prime Minister Datuk Seri Anwar Ibrahim said it aligned with the concept of the Madani Economy, aiming to position Malaysia as a leading economy in Asia and among the top 30 largest economies in the world. - AWANI