SEBERANG PERAI, Feb 14 — The federal government is not putting enough funding into the National Semiconductor Strategy (NSS) unlike neighbouring countries, said Penang Chief Minister Chow Kon Yeow.

He said Malaysia is only allocating RM25 billion into the initiative which is insufficient.

“Other countries are putting a few hundred billions so RM25 billion is not a lot,” he said in a press conference after attending the launch of a GenAI Skilling for Industry 4.0 Adoption in SMEs at Dell Technologies here.

He said Malaysia has to continue to be conscious of the competition presented by neighbouring countries that placed more focus on developing their semiconductor industry.

“So, I call on the federal government to review the funding so that it is sufficient for our country to stay competitive,” he said.

However, he admitted that our country may have limited resources.

“We will take note of the support that needs to be given to continue to grow this industry and hope it will lead to good results,” he said.

Earlier, Chow said the use of AI is not longer a luxury but a necessity especially in terms of adoption by SMEs.

He said SMEs need to adopt AI in their operations and processes in order to achieve efficiency.

“The SMEs are the supply chain support for MNCs but as technology advances, our SMEs need to move forward towards technology advancement,” he said.

He said a lot of factories in Penang are supplying components for AI devices and technology.

“Penang is an important producer of AI solutions and equipment and products,” he said.

He said it is time for local SMEs to skill up to the next level so that the state can elevate its status in the technology value chain.

As part of its initiative to accelerate the adoption of AI by SMEs, Chow said the Penang Global Business Services Industry Academy will be launching an AI academy in April.

He said the academy will enhance the capabilities of Penang’s workforce by providing advanced AI and GenAI courses to meet the demands of the evolving digital economy.

“This will position Penang as an attractive destination for investors by ensuring the workforce has the digital capabilities for an AI-driven economy,” he said.

He applauded Dell’s efforts in introducing AI courses and package technology solutions for SMEs.

“We need more MNCs to play their role in assisting local SMEs to grow with them to be valuable supporting partners in the supply chain,” he said.

He hoped such programmes will encourage SMEs to seriously look into the use of AI in their operations and processes.

Later, Chow also launched an e-harvesting campaign, a collaboration between Dell Technologies, Shan Poornam Metals Sdn Bhd and Penang Green Council.

He said the campaign is expected to reduce 100 metric tonnes of e-waste.