KULIM – Prime Minister Datuk Seri Anwar Ibrahim has indicated that the government may consider relaxing the restrictions on foreign science and engineering graduates from Malaysian universities working in Malaysian integrated circuit (IC) design companies, should local graduates be unavailable for these positions.
At present, foreign graduates are permitted to work for a maximum of one year on a part-time basis.
Anwar explained that this one-year limit was established to prioritise job opportunities for local graduates first.
“If you can establish that there are no local graduates available, then we might be relaxing (the requirements) a bit,” said the prime minister at a stakeholder engagement session with electrical and electronic industry players for the 2025 budget at the SilTerra Malaysia Sdn Bhd semiconductor plant, here.
Anwar was responding to Datuk Seri Wong Siew Hai, the president of the Malaysia Semiconductor Industry Association, who asked whether these foreign graduates can be allowed to work in IC companies for two to three years.
Wong described such a policy as a “low-hanging fruit” that could be readily adopted, noting that countries such as the United States, United Kingdom, Singapore and Australia already permit foreign engineering graduates to work in their companies for several years.
In a separate discussion, Anwar, who also serves as finance minister, indicated that the government is considering extending the pioneer status based on the duration of a company’s operations in Malaysia.
“We will take into consideration the years since you have built (companies here),” he said when responding to another recommendation by Wong on extending the pioneer status given to advanced technology companies such as IC companies from the current five-year period to up to 10 or 15 years.
Wong argued that the existing five-year period is insufficient, given the time required for IC companies to design, prototype and market their products.
The Malaysian Investment Development Authority states that companies granted pioneer status benefit from a five-year partial income tax exemption.
Power outage concerns in Kulim Hi-Tech Park to be addressed
During the stakeholder session, SilTerra chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir highlighted that companies in the Kulim Hi-Tech Park have faced power outages, with 73 incidents recorded over the past three years.
Syed Zainal noted that 52% of these outages have adversely affected the economic performance of these companies, posing a significant challenge to the industry.
In response, Anwar assured that the issue would be raised at next week’s cabinet meeting, and Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz acknowledged the problem.
However, an official from the Energy Commission present at the session clarified that the issue in the Kulim Hi-Tech Park is not power disruptions but rather a problem with power quality. – August 8, 2024