Advertisement
Ukraine
This Week in AsiaPolitics

Ukraine war: Malaysia diplomat’s remarks on allowing Russia semiconductor exports raise fears Kuala Lumpur could be hit by sanctions

  • Kuala Lumpur’s envoy to Moscow suggested Malaysia would consider ‘any request’ from Russia for the sale of semiconductors
  • A deal with Russia could potentially see Malaysia blacklisted for breaching sanctions imposed on Moscow for its invasion of Ukraine

Reading Time:4 minutes
Why you can trust SCMP
29
Close-up of an electronic circuit board. Photo: Shutterstock
Hadi Azmi
Malaysia risks getting caught up in sweeping Western-backed sanctions on Russia over its invasion of Ukraine after a diplomat’s suggestion Malaysia would consider “any request” from Moscow for the sale of semiconductors.
Advertisement

Malaysia has long had a little-known but crucial role in the global semiconductor industry. It is one of the main sites for assembly, testing and packaging for the likes of Toyota, Ford, General Motors and Skoda Auto.

In an interview published on April 23 with state-backed RIA Novosti, Kuala Lumpur’s envoy to Moscow, Bala Chandran Tharman expressed “joy” over Russia’s purported confidence in Malaysia’s potential to become a hi-tech equipment supplier. The ambassador noted Malaysia was one of the world’s largest semiconductor exporters with an annual volume of US$8.7 billion in sales.
A researcher plants a semiconductor on an interface board. Photo: Reuters
A researcher plants a semiconductor on an interface board. Photo: Reuters

Noting that Malaysia’s industries were “market oriented” Chandran said he was “quite sure that any request from the Russian side regarding the supply of such products will be considered”.

Malaysian foreign policy observers said they were taken aback by the exuberant tone of Chandran, given that stepped up trade with Russia could be a cause for being caught up in the sanctions dragnet that the West – and its Asian partners such as Japan and Singapore – have imposed to censure Moscow’s unprovoked aggression.

International relations expert Hoo Chiew Ping said that while Malaysia is indeed a major fabricator of electronics and semiconductors, it might not necessarily own the intellectual property for the parts, which could belong to US and Japanese companies who are major investors in the Malaysian market.

“Malaysia can be blacklisted for breaching the sanctions and IP rights. This will have dire consequences for its semiconductor manufacturing and export economy,” said Hoo, an expert on sanctions.

Advertisement