KUALA LUMPUR – Will Malaysia become a powerhouse in the Asean region’s booming drone and UAV industries? Ukraine’s Deputy Economy Minister, Taras Kachka, seems to believe so, viewing Malaysia as a critical gateway for expanding these high-tech collaborations.
Kachka highlighted Malaysia’s thriving digital economy, describing it as the most developed in Asean in terms of infrastructure, semiconductor supply, and a skilled workforce.
Talks are underway between companies from both countries to explore collaborative opportunities, he added.
“The evolution of UAV technology in Ukraine has been closely tied to defence and security, yet it’s also widely applied in civilian sectors, particularly agriculture,” Kachka said, as quoted by Bernama.
“Today, UAV use in Ukraine is so extensive that it absorbs much of our engineering talent, which is why we’re bringing that expertise to Malaysia.”
He stressed the importance of Malaysia’s robust supply chain for spare parts and the potential to enhance engineering capabilities for UAV innovations. “We want to support this cooperation, as we need resilient supply chains for spare components and can also contribute to engineering development here.”
Denys Mykhailiuk, Charge d’Affaires ad interim of Ukraine’s Embassy in Malaysia, added that Malaysian firms are keenly interested in surveillance UAV technology, especially for monitoring dense jungle areas where traditional patrols are challenging.
“We’re focusing on surveillance drones rather than military-grade systems. Malaysian companies are already in discussions,” Mykhailiuk noted.
Malaysia’s efforts to strengthen its semiconductor industry further reinforce its appeal as a partner for UAV components.
The World Economic Forum reported earlier this year that Malaysia’s semiconductor sector is booming, especially in Penang, where major US and European companies are either expanding or establishing new facilities to diversify global supply chains.
With semiconductors essential for modern technology—over 100 billion microchips are used daily—concerns have arisen about the global reliance on Taiwan’s TSMC, which produces the majority of advanced chips. Political tensions and potential disruptions have led companies to seek alternatives, with Malaysia emerging as a key player.
Penang recorded a record-breaking US$12.8 billion (RM55.84) billion in foreign direct investment in 2023, surpassing the total FDI of the previous seven years combined. Tech giants like Intel have committed significant resources, including a $7 billion (RM30.66bil) investment in a new Penang facility. The Malaysian government views this sector’s growth as a critical national objective.
Kachka’s visit to Malaysia from October 31 to November 2, 2024, included co-chairing the first Malaysia-Ukraine Joint Trade Committee (JTC) meeting with Malaysia’s Deputy Investment, Trade, and Industry Minister Liew Chin Tong.
The talks covered areas like agriculture, aerospace, sustainable palm oil, medical devices, and tourism, aiming to expand economic ties amid global uncertainties. – November 2, 2024