KUALA LUMPUR (Nov 18): Malaysia and the US intend to begin discussions on a memorandum of cooperation pertaining to supply chain issues, with a goal of signatures in early 2022.
“Given Malaysia’s critical role in global supply chains for semiconductors, electronics, health products and other key goods, this announcement is an important first step in collaborating on current and long-term supply chain challenges for both our nations and the global economy,” according to a joint statement issued by Senior Minister cum International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali and US Secretary of Commerce Gina M Raimondo on Thursday (Nov 18).
According to the joint statement, Azmin and Raimondo co-hosted a semiconductor roundtable on Thursday in conjunction with the latter’s visit to Malaysia.
It said both the Ministry of International Trade and Industry and the US Department of Commerce plan to collaborate with industry partners on semiconductor supply chain transparency, security and resilience.
“The two countries will also work together with US and Malaysian industry partners to develop more transparency and trust in the manufacturing and manufacturing-related sectors and their supply chains,” it said.
Azmin and Raimondo said in bolstering long-term competitiveness, Malaysia’s National Investment Aspirations would drive comprehensive reforms that promote enablers of high-value, high-technology, knowledge, capital, skills-intensive and high-income employment.
“In this spirit, we aspire to collaborate in areas where a mutually beneficial supply structure exists between Malaysia and the US.
“These include, but are not limited to, climate change-mitigating products, digital trade, medical devices and electronics,” they said.
Further, both parties said Malaysia had identified the energy and environment industry as a strategic sector that would strengthen the key foundations of sustainable growth.
“As such, we believe a strong US-Malaysia partnership would help both our countries achieve the maximum potential for robust mutual growth,” they added.
Touching on Malaysia’s human resources capacity, they said it provides a strong basis for collaboration in high-impact, high-tech investment in tandem with the US’ technological advancement in this area.
“We would like to see enhanced collaboration and information-sharing platforms that would provide better transparency and effective engagements in advancing efforts of common interest,” they said.
Azmin and Raimondo said they support the strong commercial relationship between the two countries through enduring trade, investment, industry facilitation and technical cooperation.
“We aspire to further strengthen this relationship by creating linkages between our governments and private sectors while navigating our economies past the devastating effects of the Covid-19 pandemic.
“We believe that trade, investment and sustainable supply chains will be the building blocks in restoring our economies back on a growth trajectory,” they said.