IN the intricate chessboard of global geopolitics and trade, Malaysia finds itself at a pivotal juncture once again. The recent move by Chinese firms to consider Malaysia for the assembly of high-end semiconductor chips highlights the nation's growing importance in the tech world. However, with this opportunity comes a delicate balancing act, especially concerning the escalating trade war between two of the world's economic powerhouses, the United States and China.

As Malaysia embarks on a crucial phase in its technological evolution, Prime Minister Anwar Ibrahim's decisions and leadership style came under intense scrutiny. His recent inclination towards Chinese technology, particularly the involvement of Huawei in Malaysia's second 5G network, and his ever ambiguous stance on geopolitical issues, have raised fears about the nation's strategic autonomy and long-term interests.

Anwar’s preferential tilt towards China and Chinese technology has become a point of contention, revealing potential lapses in policy-making and governance. The controversy surrounding the award of the 5G operating contract to Huawei underscores a larger issue: the lack of transparency and due process in the government's decision-making. This approach, characterized by apparent favouritism towards China, raises critical questions about Malaysia’s commitment to fair and balanced international relations, especially in the context of the ongoing US-China trade tensions.

The handling of the second 5G contract, marked by disorganization within Anwar's government, reflects a concerning inclination towards prioritizing international relationships, particularly with China, over national security, and economic transparency. The government's response to the critique by former Deputy Minister Ong Kian Ming and others, who highlight the risks of a private duopoly in the 5G network, suggests a misalignment of priorities. Anwar's administration has been criticized for potentially compromising Malaysia's technological sovereignty by leaning too heavily on Chinese technology, a move that could limit the nation's ability to navigate the global tech landscape independently.

These concerns are not unfounded, considering the global landscape where countries like Japan and Australia have adopted more diversified approaches to their 5G rollout, balancing economic benefits with security concerns. Malaysia's seemingly preferential tilt towards Chinese technology under Anwar's leadership could be a missed opportunity to adopt a more balanced and secure strategy for technological advancement.

Moreover, Anwar's silence on China's recent incursions into Malaysian waters, combined with his comments emphasizing Malaysia's keenness towards China due to their investment potential, point to a foreign policy that some perceive as overly accommodating to Chinese interests. This perception is further reinforced by the new Malaysia My Second Home (MM2H) program's platinum tier, which opens doors for foreign nationals to obtain permanent residency. These policies, viewed collectively, suggest a pattern of decision-making that may favour economic gains over national sovereignty and balanced international relations.

In the face of these developments, Malaysia's approach to the burgeoning opportunity in the semiconductor industry becomes even more crucial. The semiconductor sector, pivotal to global technology, demands a strategy that balances economic interests with national security and sovereignty. Anwar's current trajectory in tech diplomacy, particularly his handling of the 5G issue and his stance on China, may not bode well for Malaysia's aspirations in the semiconductor industry. It is a matter of concern that the same pattern of decision-making could influence Malaysia's role in this high-stakes sector, potentially sidelining broader strategic considerations in favour of short-term economic benefits.

Malaysia's potential ascent as a key player in the semiconductor industry, a sector fundamental to almost every aspect of modern technology, from smartphones to military hardware, presents both an economic boon and a geopolitical challenge. In addition, Malaysia must ensure that its policies and regulatory frameworks keep pace with the rapidly evolving tech landscape. This means implementing rigorous standards for data security, intellectual property rights, and ethical considerations in technology. Such measures are not only crucial for protecting national interests but also for attracting high-quality global partnerships. As the U.S. and China continue their tug-of-war for technological supremacy, Malaysia must navigate these waters with strategic acumen.

All in all, Anwar’s leadership and foreign policy approach, especially regarding technology and international relations, warrants a sharper critique. The decisions made today will shape our country’s future in the global tech arena and impact its geopolitical standing. It is imperative for Malaysia to strike a delicate balance, prioritizing national interests and strategic autonomy while actively engaging in international partnerships. The nation's technological sovereignty, economic transparency, and balanced diplomacy are essential for a sustainable and prosperous prospect for the rakyat and future generations to come.


* Rahman Hussin interests is in public affairs, politics and stakeholder managements. He runs his own firm that serves a wide range of clients focusing on strategy and government affairs.

** The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the position of Astro AWANI.