KUALA LUMPUR, Nov 17 — Malaysia is positioning itself as a reliable “safe middle” in global supply chains, Finance Minister II YB Senator Datuk Seri Amir Hamzah Azizan said today, highlighting the country’s unique ability to balance both Western and Chinese interests amid escalating geopolitical tensions.

Speaking at the Fortune Innovation Forum 2025, Amir said the supply chain for advanced electronics and semiconductors is highly interconnected.

“I think there are a couple of things that we need to understand when we look at the supply chain for the A&E and the semi-conductor space. The supply chain is a very globally connected supply chain,” he said.

He noted that any disruption in the network often creates ripple effects elsewhere, and that Malaysia has emerged as an important base for multinational firms.

“The disruptions to it cause quite a big backflow elsewhere. And if you look at the base that Malaysia has built, it is a base that is being built by Western and Chinese entities in the country. The key was to be able to balance both sides to play an active role and support the mechanism,” Amir said.

He said Malaysia’s pitch to foreign companies is that it is indispensable for their long-term operations.

“So our proposition to both is actually to say, ‘We are key to your long-term supply chain. We provide the intermediate goods that you need in the long-term to support your growth. And we want to continue to be because we are a reliable partner to you,’” he said.

Amir added that Malaysia’s advantage lies in its reliability and established ecosystem, which he said sets it apart from other supply chain players.

“So the differentiation that Malaysia brings is its reliability, its ecosystem. It is a supply chain mechanism that is very different from most other players.

“We are not at the top end of the supply chain, which requires a wider capital base and deeper knowledge base and so on. So we are not a threat to the aspirations of the US who wants to bring a lot of things back home,” he said.

He also clarified that Malaysia is not competing at the low end of the chain, which offers insufficient margins.

“Neither are we at the bottom end of the chain which is not a good enough margin for us. So what we’re doing is stay in the middle, but grow a little bit more of the margin. Take inside it and increase the complexity of the economy,” Amir said.

The minister said that by strengthening its mid-tier position, Malaysia can boost its economic resilience while enhancing the broader value chain.

“And as we do more of that, we strengthen the value chain, and the economy is able to sustain going forward,” he said.