KUALA LUMPUR: Malaysia’s economic and political stability is helping Taiwanese IT firms to use it as the gateway to expand to the broader Asean markets, according to Taiwan Institute for Information Technology director of International Cooperation (International Division) Jose Cheng.
In an exclusive interview with SunBiz, he said that Taiwanese firms recognise Malaysia as a strategic entry point to Asean markets.
“Malaysia is a very important partner for Taiwanese companies. If you want to do business in Asean countries, because of your economic and political stability, Malaysia is a very strong and important partner for Taiwanese businesses, especially for our software companies,” he said at the 2023 Taiwan-Malaysia IT Services Cooperation Seminar & Business Matching today.
The programme focuses on smart medical service, human resource management and ESG (Environmental, Social, and Governance) management.
Cheng also said that the ability to communicate in Bahasa Malaysia, English, and Chinese positions Malaysia as a regional hub for Taiwanese software firms aiming to expand in the Asean markets.
“These three languages are very important in Asia, because Malaysia and Indonesia are big markets. If you can speak Bahasa, that’s an advantage to develop your business. So I think the language is an advantage for Malaysia,” he explained.
To assist Malaysia’s semiconductor industry, he highlighted that Taiwan is a major player in the semiconductor hardware industry, with companies like Taiwan Semiconductor Manufacturing Company Ltd and other semiconductor giants producing 80% of the world’s semiconductors.
“With such a strong hardware industry, we’ve also developed outstanding software companies. We want to help these software companies expand their products in countries like Malaysia, Indonesia, the Philippines, and Vietnam.
“Many Taiwanese companies have moved their operations to nearby countries due to the US-China trade war, establishing factories in Malaysia, Vietnam, and the Philippines. The Taiwanese companies moving out of China also need software to manage their factories, companies, and workforce. We encourage our software companies to go overseas and tap into the local market. That’s the reason behind our efforts,” he explained.
Looking ahead, he said that Taiwan sees a potential for collaboration in Malaysia’s semiconductor industry as both Malaysia and Taiwan are strong in the area.
“Although not yet confirmed internally, in the near future there can be an opportunity for Taiwan and Malaysia to cooperate in the semiconductor industry,” said Cheng.
He stated that Taiwanese firms are seeking local partners as they understand the market and people better.
He added that these Taiwanese firms not only target Malaysia’s big firms as their clients but also smaller SMEs.