It looks like Malaysia is prepping to supply electronics and semiconductors to Russia amid the country’s invasion of Ukraine. This piece of information has been confirmed by the Malaysian Ambassador to the Russian Federation, Bala Chandran Tharman. He announced that the Southeast Asian country will consider any requests from Russia for providing electronics, as well as semiconductors. Notably, this comes at a time when Western countries are sparing no effort to single out Russia after its gratuitous attack on Ukraine.
Aside from this, Multiple Asian tech giants have been imposing sanctions in a bid to isolate Russia. Following in the footsteps of Huawei, Chinese company BOE recently clarified it does not have a production line in Russia. However, there are still some countries that aren’t willing to wreak havoc on their relationship with Russia. Now, Malaysia said it will not shy away from supplying electronics and semiconductors to Russia if it needs them. To recall, Bala Chandran even confirmed that Malaysian financial institutions will join the Russian financial messaging system, provided they meet specific criteria.
Malaysia Is Willing To Supply Semiconductors To Russia
Tharman told Sputnik (via The Edge Market) that all partner countries that are doing business with Russia are now looking into opportunities to take the business forward. Now, Bala Chandran said Malaysia will investigate Russia’s request for semiconductors and electronics. Aside from this, he pointed out that the Malaysian economy is market-driven. So, the country will unhesitatingly take any request for products from Russia into consideration. However, Bala Chandran clarified that he isn’t aware of any ongoing conversations at the government level.
Last month, Taiwan said that Malaysia can play a vital role in ending the global shortage of auto semiconductors, and specifically ease the challenge related to auto semiconductors packaging. Notably, the ambassador said he is glad people consider Malaysia as a potential high-tech equipment supplier to Russia. Furthermore, he even hinted at a potential business-to-business association with the Russian Federation. Malaysia is a major exporter of semiconductors, offering a volume of $8.7 billion every year.
Global Chip Shortage Amid Russia-Ukraine War
Moreover, Malaysia’s electronics sector incorporates more than 6 percent of the country’s GDP. Since Malaysia is a trade state, the ambassador claims that the country’s business sector will acknowledge products’ demand and supply in the global market. The country will actively respond to the requirement of electronic gadgets, respond, and semiconductors in the global market. To recall, both Malaysia and Vietnam do not support sanctions on Russia. Following Russia’s invasion of Ukraine on February 24, Western countries imposed harsh sanctions on Moscow.
Earlier this month, IT major Infosys stopped working with its Russian clients and even moved its centers out of the country. In the meantime, Russia considers these moves an economic war. Aside from this, the parent company of Malaysia Airlines Bhd, MAG (Malaysia Aviation Group) has admitted that the Russia-Ukraine crisis has made it harder for it to manage its operating costs. This is a result of the skyrocketing prices of fuel. The global crude oil currently surpassed a whopping $100 per barrel, as per The Edge Markets.