TAIPEI: Taiwan is moving towards a “Taiwan Plus One” strategy, deepening partnerships across Southeast Asia to build resilient supply chains and expand its industrial footprint, with Malaysia emerging as a key partner.
Experts at the Chung-Hua Institution for Economic Research (CIER), a prominent think tank that advises the Taiwanese government on macroeconomic policies, said the strategy seeks to establish “trusted partnerships” across the region, with Malaysia identified as a key partner in the emerging economic ecosystem.
At the heart of the bilateral relationship is Malaysia’s established expertise in semiconductor assembly, packaging and testing, which CIER sees as a strong foundation for deeper cooperation.
Dr Wu Yu-yin, assistant director of the Regional Development Study Centre at CIER, said the coming decade presented an opportunity for Malaysia to move further up the value chain and into higher-value activities.
Speaking to a visiting Southbound media delegation, Wu said Taiwanese companies were increasingly interested in establishing comprehensive information and communication technology clusters and integrated ecosystems in Malaysia, anchored by advanced semiconductor capabilities.
Beyond hardware, CIER identified renewable energy, biotechnology and artificial intelligence (AI) applications as promising areas with significant potential for cross-border cooperation over the next decade.
On the trade dynamics driving the shift, Dr Wang Yu-Hsiang, assistant executive director at CIER’s Centre for International Trade Policy, said the strategy was a pragmatic response to changing global markets and Taiwan’s push for greater internationalisation.
Taiwanese industry experts said companies remained focused on building broad-based international ties to maintain cost efficiency and market stability.
Wu said Taiwanese firms were adept at developing global partnerships and could leverage regional manufacturing bases, including existing facilities in China, to benefit from trade agreements such as the Asean-China Free Trade Agreement.
This would allow companies to reduce tariff burdens while meeting growing global demand for AI servers and advanced technologies.
Dr Liu Meng-Chun, director of the First Research Division at CIER, meanwhile, highlighted the importance of human capital, particularly the large number of Malaysian students pursuing higher education in Taiwan.
CIER envisions a “mother company” operational model in which Malaysian graduates are recruited and trained by parent companies in Taiwan before returning to Malaysia to manage local operations.
The model is intended to facilitate the transfer of technical expertise and operational standards while helping to address labour shortages in both markets.
CIER also highlighted policy predictability, operational transparency and stable utility supplies, particularly water and electricity, as key considerations for Taiwanese companies looking to make further high-tech investments.
The institute attributed Taiwan’s industrial strength to a cohesive ecosystem that encourages industry clustering, particularly through its science parks, which support both multinational technology companies and small and medium enterprises.
Malaysia, CIER said, is well positioned to adapt elements of this ecosystem given its strategic location and skilled talent pool, as Taiwan navigates a K-shaped economic environment in which high-tech exports continue to drive regional growth.
