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Government Policies

Ferrotec’s RM550 Million Entry Boosts Johor’s Tech Landscape – SME & Entrepreneurship Magazine

Last updated: August 18, 2025 12:45 pm
Published: 9 months ago
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China-based high-technology semiconductor company Ferrotec’s RM550 million investment in Pasir Gudang, Johor – through its subsidiary Ferrotec Power Semiconductor Malaysia Sdn Bhd – was realised and is expected to record an annual export value of RM600 million in return.

The mega investment is believed to strengthen Malaysia’s standing in high-technology component manufacturing while also creating 396 new job opportunities that can benefit the locals.

“Ferrotec is also working together with 35 local vendors in its supply chain, hence boosting our local SME ecosystem,” said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

At the same time, the Malaysian state is also emerging as the nation’s leading data centre investment hub with 42 projects worth RM164.45 billion that was approved as of the second quarter of this year (2Q 2025).

Johor Menteri Besar Datuk Onn Hafiz Ghazi said these projects are expected to create over 6,000 quality job opportunities and contribute 78.6% of the country’s operational IT capacity.

He also stated that Johor is targeting to house 6% of the country’s data centre capacity by the year 2030.

“In line with this development, the state government aspires to position Johor as a leader in artificial intelligence (AI) and the nation’s digital economy. This will be achieved through the integration of smart technologies in public services, enhancing the competitiveness of industries and building an inclusive, sustainable digital ecosystem so that the benefits of technology can be enjoyed by all levels of society,” he explained.

He added that the combination of large-scale data centre infrastructure, advances in AI technology and progressive government policies will further position the state as a potential regional digital innovation hub.

“This initiative will not only drive economic growth but also improve the quality of life for the people of Johor through high-skilled job opportunities, the development of new industries and smart solutions to everyday challenges,” he said.

Onn Hafiz also shared certain details regarding a recent meeting with Digital Minister Gobind Singh Deo to discuss the direction of the state’s digital development.

He said that the meeting served as an important platform to strengthen Johor’s role in the Data Centre task Force (DCTF) and ensure that data centre development is carried out comprehensively, sustainably and with real impact for the people.

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