UK MULLS DEEPER LINKAGES WITH ASEAN IN SEMICONDUCTOR INDUSTRY
By Anas Abu Hassan
KUALA LUMPUR, Aug 21 (Bernama) -- The United Kingdom (UK) is open to strengthening industrial collaboration with ASEAN nations, particularly in the semiconductor industry to establish a resilient global supply chain in efforts to navigate the ongoing trade uncertainties including the possible imposition of severe tariffs by the United States (US) on the industry.
UK’s His Majesty’s Trade Commissioner (HMTC) for Asia Pacific, Martin Kent believed the semiconductor sector could become a priority area of cooperation with ASEAN nations, particularly as Malaysia and Singapore are seen as the leaders in the semiconductor space within the region.
He noted that the UK and ASEAN could now look at aligning strategies so both parties could work together at different points to support the industry’s value chain, following US President Donald Trump’s announcement last week to impose up to 300 per cent tariffs on the industry in the upcoming week.
“We know that the semiconductor industry in Malaysia is incredible, likewise across the border in Singapore, as well as other countries in the region,” he told Bernama in an exclusive interview today.
Kent said the UK does not have fabrication plants unlike other countries around the world, but it produces some very specialised equipment to generate bespoke components to the semiconductor manufacturing process -- the ultra high-end components.
He said the ultra high-end components can be quite technical and crucial parts or equipment to much larger machinery which is the bits that the UK really specialised in.
"They are the bits of the value chain that we are able to do in the UK as there is not necessarily any capabilities to do elsewhere, but in those other places that have capabilities which we do not have in the UK, this is where the partnership comes in.
"We have looked at these relationships positively in terms of supply chain integration and cooperation," said Kent, who attended the ASEAN Senior Economic Officials Meeting (SEOM) here yesterday in preparation for the 57th ASEAN Economic Ministers’ Meeting (AEM) next month.
UK and ASEAN trade enhancement
Meanwhile, commenting on the agenda in the upcoming AEM Meeting from Sept 22 to 28, Kent highlighted that the UK will be presenting its Economic Integration Plan -- a principal economic programme for the UK and ASEAN as a dialogue partner.
He explained that the plan focuses on three key pillars — financial services, regulatory reform, and open markets — aimed at strengthening ASEAN’s economic integration and enhancing cross-border trade.
“This is about how Britain is working with ASEAN collectively and bilaterally to drive regulatory standards, improve financial inclusion for the small and medium enterprises, and align trade practices that will make cross-border commerce more seamless and secure,” he said.
Kent emphasised that both UK and ASEAN are committed to doubling down on free and fair trade and therefore compliance with the rules-based international system is crucial to ASEAN countries and the UK.
“That is manifested in our free trade agreements that we already have with a number of ASEAN countries, namely Singapore and Vietnam, and through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), with Malaysia and Brunei which we now have free trade agreements.
“The UK also has the Developing Countries Trading Scheme that gives tariff-free access to countries that are still classified by the Organisation for Economic Co-operation and Development (OECD) as developing markets... Indonesia, the Philippines, Cambodia and Laos, for example,” he added.
-- BERNAMA
