INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025

From Crisis to Recovery: Malaysia’s Economic Trajectory and the

Contribution of Micron Technology

Azydyana Azlyka Ahmad Azli^1,Fatimah Najah Azizan², Mohd Fuad Sahbudin³, Mohd Firdaus Ismail⁴,

Muhammad Syazwan Abdul Rahman⁵, Nor Khadijah Mohd Azhari*⁶

^1,2,3,4,5School of Electrical Engineering, Universiti Teknologi MARA, Kampus Permatang Pauh, Pulau

Pinang

⁶Faculty of Accountancy, Universiti Teknologi MARA, Kampus Permatang Pauh, Pulau Pinang

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.910000744

Received: 02 November 2025; Accepted: 10 November 2025; Published: 22 November 2025

ABSTRACT

The COVID-19 pandemic caused unprecedented disruptions to global semiconductor supply chains and exposed

structural vulnerabilities within Malaysia’s high-tech manufacturing ecosystem. This paper examines the

sustainability and resilience of the Malaysian economy before, during, and after the COVID-19 pandemic, with

a specific focus on the balance between saving and spending patterns. Using Micron Technology as a case study,

the analysis explores Malaysia’s economic transformations, corporate responses, and the implications for ethical

and sustainable growth. Findings indicate that Malaysia’s pre-pandemic growth trajectory, while robust, faced

challenges of inequality and environmental sustainability. The pandemic revealed structural vulnerabilities but

also accelerated technological adoption and ethical awareness among firms. Post-pandemic recovery has

emphasized sustainable industrial practices, investment in research and development (R&D), and responsible

corporate conduct. This study concludes that balancing ethical financial practices, technological investment, and

inclusive growth is essential for Malaysia’s long-term economic resilience.

Keywords: Covid19, Economy, Finance, Micron, Recovery, Semiconductor

BACKGROUND OF STUDY

Semiconductors are essential to the digital economy, supporting sectors such as cloud computing,

telecommunications, automation, consumer electronics, automotive electronics, and artificial intelligence.

Global semiconductor sales exceeded USD 526 billion in 2023 (SIA, 2023), and the industry’s multi-tiered value

chain—spanning design, wafer fabrication, assembly, testing, and packaging—relies heavily on a small number

of technologically advanced countries (Baldwin & Freeman, 2020). Malaysia is one of the top global hubs in

assembly, testing, and high-value electronics manufacturing, contributing approximately 13% of global

semiconductor back-end production and more than RM455 billion in E&E exports in 2022 (MIDA, 2023; MITI,

2023).

Prior to the pandemic, the Malaysian economy was rather stable, with most government expenditure, if not all,

directed to infrastructure, education, health care, and social amenities. In 2019, the Malaysian Government

Development Programme spent at least 15-20% of the annual budget on infrastructure development, specifically

aimed at enhancing transport and digital systems. Even the private sector, especially in manufacturing and

services, played a significant role in supporting the economy, with exports of electronic goods, palm oil, and

other goods accounting for nearly 25-30% of the Gross Domestic Product (GDP) coming from exports of

electronic goods, palm oil, and even petroleum (Loong & Wan Usamah, 2022). The total economic value of all

the goods and services that are produced within the geographical limits of a country at a given time, generally

within one year or within one quarter. It is used as a fundamental indicator of a country’s economic health. GDP

can be calculated in three different methods: through measuring all final goods and services produced in a

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country irrespective of nationality, during a particular period of time (output), the total factor income earned by

the country (income), or the total expenditure on the final goods and services at a given price period

(expenditure). It assists in evaluating a nation's economic output, quality of life, and developmental aspects

(“Gross domestic product”, n.d.). For instance, in semiconductor production, large companies like Micron were

making significant advancements in Malaysia. For example, in 2019, Micron announced a staggering $1.5 billion

investment to build additional production, research, and development (R&D) capacity in Penang, Malaysia,

which remains a highly significant centre for global semiconductor assembly, testing, and packaging facilities.

This further investment not only reinforced Malaysia’s position in the global semiconductor supply market but

also generated high-skilled employment, which, in turn, benefited the country's economy and technology.

Prior to the COVID-19 pandemic, the Malaysian economy had an unwavering growth trend, driven by myriad

sectors, including manufacturing, agriculture, and services, resulting in a GDP growth rate averaging 4-5% per

annum (Loong & Wan Usamah, 2022). At this point, it appears that the mixed economy, characterised by

multiple sectors such as manufacturing, electronics, natural resources, and services, is not only functional but is

also significantly facilitating Malaysia's growth path. Specifically, the manufacturing and electrical and

electronics industries, which are vital to the economy, are bearing the export burden to help Malaysia become

an emerging player in global trade and supply chains, with special reference to semiconductors and electronics.

The abundant natural resources in Malaysian land, for instance, palm oil, oil, and gas, are also of considerable

importance to the Malaysian economy, despite these markets being subject to fluctuating influences determined

by international commodity price trends. Besides, small and medium enterprises, also known as SMEs, play an

essential role in employment and innovation, as they are the backbone of the economy and a means of boosting

local ideas.

While Malaysia plays a central role in global semiconductor supply chains, the COVID-19 pandemic exposed

critical vulnerabilities in manufacturing ecosystems that rely on high-density labour, cross-border logistics, and

globally synchronised production cycles. Micron Malaysia, like other semiconductor MNCs, faced acute

disruptions, including supply shortages, mobility restrictions, labour constraints, and heightened ethical

responsibilities regarding workforce welfare.

Existing studies primarily focus on macro-level impacts of COVID-19 on Malaysia’s E&E sector (Abdullah et

al., 2021; Bank Negara Malaysia, 2021). However, limited empirical attention has been given to firm-level crisis

responses within multinational semiconductor operations. Moreover, there is a lack of research integrating

economic sustainability, ethical considerations, and resilience strategies into a single analysis of how a major

semiconductor MNC navigated the pandemic within Malaysia.

Therefore, this study addresses a critical research gap by analysing the economic performance, operational

adaptation, supply chain resilience, and ethical governance of Micron Malaysia as an integrated national

operation—rather than focusing on any specific site. This paper examines the sustainability and resilience of the

Malaysian economy before, during, and after the COVID-19 pandemic, with a specific focus on the balance

between saving and spending patterns. The significance of this study is that it should provide insights into how

a major semiconductor MNC in Malaysia adapted to global disruptions, offering a model for other high-tech

manufacturers, and understanding Micron Malaysia’s resilience provides valuable lessons for Malaysia’s goal

to climb the semiconductor value chain.

LITERATURE REVIEW

Malaysian Economy: During COVID-19

The COVID-19 pandemic has globally brought distress, not only impacting human lives but also the economy,

as lockdowns meant to prevent tourism activities crippled manufacturing industries and put international trade

on a temporary halt. It represented a post-global trade renaissance. This situation led to an increase in

unemployment and lower incomes, which eventually forced individuals to make an abrupt shift in purchasing

behaviour toward a more savings-based trend.

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As a result, Malaysian consumers' spending trends have changed due to economic uncertainty, movement

restrictions, and lockdowns. Most households focused on necessities while cutting back their spending on

entertainment, investments, and other non-essential items. For instance, a survey of B40 and M40 households

revealed that around 94.6% of consumers prioritized food supplies, 65.9% focused on utility bills, and 63% on

healthcare needs, showing a shared focus on basic needs and financial security during unpredictable times

(Ismailetal., 2021). Moreover, the pandemic has driven significant growth in online shopping, or e-commerce,

as seen from the 149% increase in online sales in early 2020, as many people chose to shop online for essentials

like groceries and hygiene items (PricewaterhouseCoopers, 2020). Cashless payments, such as mobile wallets,

have also gained popularity, with Malaysia leading Southeast Asia at 40% mobile wallet usage

(PricewaterhouseCoopers, 2020). This emphasizes the growing reliance on digital platforms during the

pandemic.

In Malaysia's electronics and semiconductor sectors, the impact was distinct. The demand for consumer

electronics like laptops, personal computers, and solid-state drives also increased (Goh, 2020). According to the

Vice President of Micron Malaysia, Amarjit Sandhu, people stocked up on these devices for work, study, and

entertainment at the beginning of the Movement Control Order (MCO) (Goh, 2020). This increase in demand

for technology put pressure on the semiconductor supply chain, leading to global shortages of chips used for

computers, cloud computing, and communication equipment, further pushing companies to increase production

(Bank Negara Malaysia, 2021). This emphasised the crucial role of technology and its supply chain in meeting

pandemic-related needs, changing both consumer behavior and industry operations in a difficult time.

While the pandemic brought significant changes to consumer behavior, it also triggered widespread economic

disruption. At the beginning, the country experienced a sharp contraction in economic activities due to

lockdowns, travel restrictions, and social distancing measures that brought many industries to a grinding halt. It

pushed the Malaysian government to implement equity interventions in the form of stimulus packages, namely

Prihatin and PENJANA, to provide relief to enterprises, stabilize the economy, and protect jobs during those

difficult times. However, there was debate over how effective these measures were in reaching all businesses

and vulnerable groups. Furthermore, it widened the inequality gap significantly: low-income workers and

informal-sector employees were among the worst hit. Many lost their jobs, especially those in the gig economy

or industries that could not shift to online work. Recovery was sluggish and uneven as Malaysia's vaccination

campaign got underway and the economy gradually reopened.

structure, particularly its dependence on foreign labour and the lack of diversification in certain sectors. The

pandemic dealt a blow to that trajectory, with GDP shrinking by 5.5% in 2020 due to severe stagnation caused

by lockdowns on sectors such as tourism, manufacturing, and retail (Loong & Wan Usamah, 2022).

Malaysian Economy – Post COVID-19

The emergence from the pandemic saw the economy rebound, with a 6-7% growth forecast for 2021-2022 (Bank

Negara Malaysia, 2023). This recovery was also reflected in a notable rise in private consumption, which

increased by 11.3% in 2022, up from 1.9% in 2021 (Bank Negara Malaysia, 2023). This came from improved

employment, ongoing support measures such as cash transfers, and the reopening of the economy. This helped

to release pent-up demand, boosting spending on both necessities and non-essentials (Bank Negara Malaysia,

2023). However, the recovery has been uneven. While sectors like electronics benefited from trends such as

electric vehicles and artificial intelligence, the consumer electronics market slowed as people adjusted their

spending patterns post-pandemic. Even with these changes, the manufacturing sector grew by 8.1%, driven by

global demand and investments in automation and digitalisation, as companies continued to utilise these

technologies to increase efficiency (Bank Negara Malaysia, 2023).

This period is marked by calls for the transition to more sustainable initiatives. This sustainable approach

includes a renewed focus on green technology and digital transformation, along with every effort to ensure

inclusive growth and address inequalities worsened by the pandemic. The pandemic has highlighted a major

vulnerability of the Malaysian economy, and many voices today call for faster adoption of green technologies

and digital transformation. This transition is not only crucial for long-term economic growth but also for

addressing the rapidly growing social and economic inequalities caused by the crisis. The inclusiveness of the

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process also came to the fore during the pandemic, with attempts to ensure that the recovery process extends to

all sections of society, especially those who are particularly vulnerable or who suffered most during the crisis.

Going forward, Malaysia remains confronted by key challenges in its efforts to return to the post-pandemic path.

Among the key challenges are an unpredictable world economy, shifting commodity prices, disrupted trade, and

shifting global demand-all of which could have significant consequences for Malaysia's export-oriented

economy. For example, sectors such as electronics and palm oil, which are at the very heart of the Malaysian

economy, tend to be sensitive to global market conditions. These industries are so resource-intensive that there

is a very thin tightrope to walk between rapid economic growth and ensuring that such growth does not come at

the expense of environmental sustainability. For instance, heavy industry often relies heavily on energy resources

and can generate substantial waste, as in semiconductor manufacturing. Therefore, Malaysia needs to find

innovative ways to decouple growth from environmental degradation, ensuring that industry expansion aligns

with sustainable development goals.

The second major challenge for Malaysia is economic diversification. The manufacturing sector has driven

Malaysia's economy to date, especially the electrical and palm oil industries. The pandemic made it loud and

clear to Malaysia that it needs to reduce its over-dependence on these sectors. In other words, diversifying into

high-value, knowledge-based sectors such as biotechnology, renewable energy, and digital services will make

the economy more resilient and future-proof. It would not only make Malaysia less susceptible to external shocks

but also give its workforce more high-quality jobs. With this in mind, a diversified economy is likely to take

advantage of new and emerging global trends, such as the transition to clean energy and digitalization. In that

light, rebuilding Malaysia's economy needs to be underpinned by a fresh commitment to social equity and

fairness. For Malaysia, the long-term challenge is to rebuild its economy in ways that make it more resilient,

digitally transformed, and sustainable, to prevent similar disruptions in the future. This pandemic has underlined

the need to diversify the economy, with a view to strengthening social safety nets for an equitable recovery for

all Malaysians.

A Case Study of Micron Technology

Using Micron Technology as a case study to examine Malaysia's economic conditions before, during, and after

the COVID-19 pandemic provides a much deeper perspective on the country's current economic situation. As

one of the world's leading semiconductor producers, Micron has contributed significantly to the local economy

and positioned Malaysia within its normal context in the global supply chain. Among the most important pillars

of the Malaysian manufacturing sector, the semiconductor industry significantly contributes to GDP, exports,

and employment creation. Having a focused understanding of Micron could help us assess the pandemic's impact

on key economic factors, including industrial productivity, global supply chain disruptions, workforce

management, and government intervention. The company's resilience in the face of the pandemic and its

sustained contributions to the economy reflect broader trends in Malaysia's economic resilience and the nation's

transition toward more sustainable and technology-driven growth. Beyond that, Micron's experience during the

crisis underscores critical requirements for Malaysia: diversifying the economy, investing in digital

transformation, and addressing sustainability issues that are central to the country's post-pandemic recovery and

long-term competitiveness. It provides needed insight into the broader efforts required to rebuild and reshape

Malaysia's economy in light of the COVID-19 pandemic by examining Micron's role in the Malaysian economy.

Introduction of Micron Technology

Micron Technology is a leader in the semiconductor market, recognized for its advanced memory and storage

solutions that drive innovation across a wide range of technological applications. Since its founding in 1978,

Micron, which is headquartered in Boise, United States of America, has been one of the leading manufacturers

of dynamic random-access memory (DRAM), NAND, and NOR technologies, which are used in everything

from personal computers and mobile devices to enterprise-level data centres and cloud computing

infrastructures. It has facilities across 17 countries and more than 40,000 employees as of 2023 (“Micron

Technology”, n.d.). Micron manufacturing impacts not just at the individual company level but also contributes

to the Malaysian economy by providing local employment, playing a key role in the country's economic

development, and driving the development of technology clusters. In Malaysia, Micron has a plant facility in

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Muar, Johor, that performs assembly and testing, whereas the latest Micron plant is in Penang, known as the

storage solutions site. Both sites produce products that support applications across geographies, from consumer

electronics to data centers to ultra-efficient artificial intelligence, making them strategic players in the electrical

and electronics industry.

Micron’s response to COVID-19

Micron Technology is a leader in the semiconductor market, recognized for its advanced memory and storage

solutions that drive innovation across a wide range of technological applications. Since its founding in 1978,

Micron, which is headquartered in Boise, United States of America, has been one of the leading manufacturers

of dynamic random-access memory (DRAM), NAND, and NOR technologies, which are used in everything

from personal computers and mobile devices to enterprise-level data centres and cloud computing

infrastructures. It has facilities across 17 countries and has more than 40000 employees as of 2023 (Micron

Technology, n.d.). Micron manufacturing impacts not just at the individual company level but also contributes

to the Malaysian economy by providing local employment, playing a key role in the country's economic

development, and driving the development of technology clusters. In Malaysia, Micron has a plant facility in

Muar, Johor, that performs assembly and testing, whereas the latest Micron plant is in Penang, known as the

storage solutions site. Both sites produce products that support applications across geographies, from consumer

electronics to data centres to ultra-efficient artificial intelligence, making them strategic players in the electrical

and electronics industry.

The sustainability of Micron Memory Malaysia’s economy before, during, and after the Covid-19 pandemic

sheds light on significant ethical issues surrounding business practices and government policies. This journey

offers a lens through which we can examine the complex interplay between economic growth, corporate

responsibility, and social equity. Before the pandemic, Micron Memory Malaysia was thriving, buoyed by

substantial investments in cutting-edge technology and a skilled workforce. This growth, however, raised ethical

questions about the broader impact of rapid industrialisation. Companies in the semiconductor sector, including

Micron, often grappled with issues such as labour rights, environmental degradation, and community

engagement. As Micron expanded its operations, stakeholders began to scrutinize whether the benefits of such

growth were equitably shared, particularly with local communities affected by manufacturing processes.

When the COVID-19 pandemic struck, the landscape changed dramatically, forcing companies to reevaluate

their priorities. The immediate crisis highlighted businesses' ethical responsibility to protect their employees’

health and livelihoods. Many organisations faced tough decisions regarding layoffs, furloughs, and pay cuts.

Micron, for instance, had to navigate the delicate balance between maintaining operational efficiency and

ensuring its workforce's well-being. This period brought to the forefront the importance of ethical leadership and

transparency. Employees and stakeholders alike demanded clarity and fairness in how companies managed their

resources during such an unprecedented time.

Moreover, the pandemic placed significant pressure on governments to intervene effectively in the economy.

Policymakers had to make quick decisions on how to allocate financial aid and support programs to sustain

businesses while protecting public health. The ethical implications of these decisions were profound.

Due to unprecedented COVID-19 pandemic challenges, Micron Technology had to implement various strategic

operational changes to maintain manufacturing continuity while navigating the complexities of lockdowns and

labour constraints. In the face of restrictions that reduced workforce availability and operations within sites,

Micron proactively prioritised improving its efficiency through greater automation and targeted process

enhancements. Advanced technologies were applied, and manufacturing workflows were tuned to reduce human

dependencies, enabling the company to remain productive. This move minimizes disruption and positions

Micron for even greater operational resiliency going forward by sustaining output levels to meet the surge in

semiconductor demand amid a pandemic that made digital solutions vital across businesses and consumers.

Moreover, Micron was well aware of the urgent need for prudent supply chain management amid the pandemic-

related disruptions. Large-scale supply chain vulnerabilities were reduced through the company's comprehensive

measures, including the de-concentration of reliance on any single supplier. This strategic move provided

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sufficient scope for Micron to tide over uncertainties in material procurement and make the necessary

arrangements in bulk. Furthermore, logistics flexibility meant moving transportation and delivery to remedy

some of the delays and fluctuations on worldwide shipping routes. Creating a more resilient supply chain, one

better able to adapt means that Micron not only preserved its manufacturing but also positioned itself to respond

quickly to the changing needs of the world marketplace.

At the heart of Micron's pandemic response was a continued pledge to workforce stability and employee welfare.

While making these huge investments in the health and safety of its employees, it had not lost production

capacity. For instance, Micron implemented strict hygiene practices, required the use of personal protective

equipment, conducted regular health checks within facilities, and arranged for its employees to receive COVID-

19 vaccinations promptly once the government announced their availability. Wherever possible, Micron moved

to remote work arrangements that would enable workers to continue performing their duties safely and with

minimal risk of virus exposure. By prioritizing health and safety in the workforce, Micron maintained operational

continuity. More importantly, it reidentified itself as a caring and responsible employer. A similar approach helps

the company maintain a culture of trust and resilience among its workforce in this time of uncertainty. This

holistic approach definitely helps Micron to address pandemic-related challenges while positioning it for

continued growth in the ever-evolving semiconductor sector.

METHODOLOGY

This study adopts a qualitative exploratory methodology complemented by secondary quantitative observations

to analyse the economic sustainability, crisis resilience, and ethical governance of Micron Malaysia before,

during, and after the COVID-19 pandemic. Given the complexity of semiconductor operations and the

multifaceted impacts of the pandemic, a qualitative case study approach allows for an in-depth exploration of

organisational behaviour, policy frameworks, and supply chain conditions within their real-world context

(Creswell & Poth, 2018; Yin, 2018). This approach is suitable for understanding how Micron Malaysia, as part

of a multinational high-technology corporation, adapted to unprecedented disruptions across global and domestic

environments. The analytical framework integrates three major theoretical foundations: the Resource-Based

View (RBV), Crisis Management Theory (CMT), and Stakeholder Theory.

Firstly, the Resource-Based View (RBV) is used to evaluate how Micron Malaysia’s internal capabilities—such

as engineering talent, automation, organisational culture, and technological infrastructure—shaped resilience.

Secondly, Crisis Management Theory (CMT) is applied to assess how Micron Malaysia navigated pre-crisis

preparedness, real-time crisis response, and post-crisis learning. Lastly, Stakeholder Theory is used to interpret

ethical responsibilities toward employees, government stakeholders, suppliers, and local communities during the

pandemic. These frameworks provide a multi-dimensional assessment of organisational sustainability and

resilience.

FINDINGS AND DISCUSSION

Pre-Pandemic Phase; Strong Global Semiconductor Demand and Market Position

Prior to COVID-19, the global semiconductor market experienced robust growth. Memory and storage devices—

central to Micron’s product portfolio—benefitted from rising demand in data centres and cloud services, mobile

devices, 5G infrastructure, IoT ecosystems, gaming consoles, and automotive electronics. Global revenue growth

and favourable market conditions contributed to positive performance across the semiconductor value chain (IC

Insights, 2019; SIA, 2019).

As part of Micron Technology’s international manufacturing and engineering network, Micron Malaysia

capitalised on this global expansion, supporting increased assembly, testing, engineering services, and

technology development activities.

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Pandemic Phase: Disruption, Adaptation, and Ethical Complexity

Malaysia’s Movement Control Orders (MCOs) significantly limited industrial operations. Semiconductor firms

were designated as essential, but strict conditions governed their continuity.

Micron Malaysia, like others in the sector, confronted reduced on-site workforce capacity, employee absenteeism

due to health concerns, mandatory quarantine requirements, transportation and mobility limitations, and

compliance with strict government health SOPs.

Workforce disruptions affected production schedules, engineering support, and on-site handling of sensitive

equipment. Studies show that high-density work environments in Malaysia’s manufacturing sector increased

vulnerabilities to infection (Rahman et al., 2021). Although Micron Malaysia adhered to corporate and national

guidelines, the pandemic exposed systemic fragility in labour-dependent industries.

Semiconductor supply chains collapsed globally in 2020 due to several factors, including port lockdowns in

China, cargo shortages, international border closures, constraints on raw material availability, and equipment

shipment delays that lasted from weeks to months. McKinsey (2020) reported that semiconductor production

lead times more than doubled during peak pandemic conditions.

Micron Malaysia encountered several issues, including delays in receiving essential manufacturing equipment,

prolonged customs and logistics processing times, limited capacity for international shipments, and higher

logistics and freight costs. These disruptions threatened operational continuity and forced Micron Malaysia to

modify procurement and inventory strategies.

Micron’s Recovery and Growth Strategy

Moving into the post-COVID-19 world, Micron has implemented key strategies to recover from the pandemic's

impacts, providing a better understanding of how to sustain the Malaysian economy, especially in balancing

saving and spending. Some of the initiatives taken by Micron include capital investment, cost reduction, and

inventory management, as well as a commitment to corporate social responsibility (CSR) efforts and research

and development (R&D) focused on innovation. These are to ensure that it can support its own recovery and

Malaysia’s economic growth while aligning with the nation's efforts to become a global technology hub.

Firstly, Micron’s USD 2 billion investment in facility expansion in Penang, Malaysia, especially in Batu Kawan,

represents a significant step in its efforts to support its growth and Malaysian economic development (Bernama,

2023; Liew, J. T., & Lim, J., 2022). In 2020, Micron invested USD 1 billion in its first factory in Batu Kawan to

set up a centre of excellence for solid-state drive (SSD) assembly and test, and subsequently invested in a second

facility, completed in 2023, to expand its production capacity (Liew, J. T., & Lim, J., 2022). This ongoing

investment in its expansion, despite the challenges posed by the pandemic, shows their commitment to

supporting Micron’s and Malaysia’s local economy recovery and advancement by investing in growth while

fulfilling their long-term objectives.

However, this initiative also raises financial concerns, as large capital investments carry risks, especially in an

unstable global economy. Therefore, it is important to conduct a risk-return assessment for this strategy, because

assets with a higher likelihood of loss are considered riskier than those with a lower likelihood of loss (Gitman

et al., 2015). Furthermore, from an ethical point of view, it is important to ensure that the newly expanded

operations will not cause local environmental pollution and that this initiative will benefit local communities by

providing new job opportunities.

Next, Micron has also implemented cost and inventory control as it transitions to the post-pandemic world. As

consumer demand for smartphones and consumer electronics has decreased, Micron’s customers have cut back

on their inventory levels (Bernama, 2023). Therefore, to align with changing demands, Micron has taken the

initiative to reduce its supply growth by cutting capital expenditures and production at its factories (Bernama,

2023). However, as stated by Micron, this is viewed as a short-term challenge, as they need to bring supply and

demand back into balance, which will contribute to improved pricing (Bernama, 2023). These helped tackle

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excessive inventory and storage costs (Afrifa et al., 2021). Moreover, they have also reallocated their supply

from sectors with lower demand, such as consumer electronics, to sectors with increasing demand, such as data

centres and cloud servers. Carefully managing inventory would improve liquidity by freeing up cash, thereby

allowing Micron to maintain effective cash flow and remain financially flexible in a fluctuating market (Afrifa

et al., 2021).

From an ethical perspective, this approach also shows that Micron is committed to supporting job stability and

responsible resource use by focusing on sustainable production levels and helping prevent unnecessary layoffs

due to changing demand. Overall, this strategy represents a careful balance between saving and spending, helping

ensure the company can continue to grow while maintaining its resilience to adapt to unpredictable market

conditions.

Furthermore, Micron has also taken a corporate social responsibility (CSR) initiative to participate in Malaysia’s

National Economic Recovery Plan (PENJANA) to offer job opportunities to locals who have been retrenched

due to the COVID-19 pandemic.

Employed over 133 employees (Goh,2021). Employed over 133 employees under employed over 133 employees

under the scheme, as well as invested in upskilling and reskilling programs. This strategy not only supports the

local community but also mitigates the risk of corporate reputational damage arising from a lack of CSR efforts

during an economic slump. This can help build stakeholder trust and deliver better value to shareholders, thereby

positively impacting long-term financial performance. Companies that are managed ethically may gain stronger

market acceptance and more public trust (Mohammad & Wasiuzzaman, 2021). Similarly, when the company

has gained investors' confidence, adding Environmental, Social, and Governance (ESG) elements to its

investment portfolio can contribute to more effective, stable portfolios (Mohammad & Wasiuzzaman, 2021).

Overall, this strategy reflects an ethical spending approach that contributes to the local community while

maintaining its financial health.

Moreover, Micron has invested RM1 million in R&D initiatives in collaboration with Malaysian universities,

aiming to support local talent and drive technological advancements in Malaysia’s semiconductor sector

(Bernama, 2022). Micron significantly expanded its local presence and created over 4,000 jobs, with the plant

set to expand further. Micron has partnered with Universiti Sains Malaysia to promote knowledge transfer and

develop critical skills in semiconductor materials, artificial intelligence, and smart manufacturing

(Bernama,2022). From a managerial finance perspective, investment in R&D and workforce development can

be seen as strategic spending that promotes innovation and secures the potential for long-term growth. However,

this may raise ethical concerns about how they can strike the right balance between striving for corporate growth

and making a genuine impact on the community, especially following the recent pandemic. Micron must ensure

that the funding truly benefits local communities rather than serving as a cost-cutting measure or a marketing

tactic.

This strategy represents a responsible approach to spending that helps develop the local talent pool and addresses

potential criticisms of exploiting local resources without giving back to the community. Additionally, by

focusing on local talent development and R&D, Micron supports local employment and competitiveness, reduces

future recruitment costs, and mitigates risks associated with global talent shortages. This shows that ethical

investments can lead to positive outcomes for both the company and the community.

Pathways to Economic Recovery and Resilience: Recommendations for Malaysia and Conclusion

Understanding Micro during and after the pandemic, Malaysia can adapt similar strategies to boost its economic

recovery and resilience in the face of future challenges while balancing saving and spending. Firstly, Malaysia

should encourage both local and foreign direct investment to drive growth and job creation among local

communities. This will improve the economy by creating new employment opportunities and fostering long-

term development. In addition, Malaysian businesses should implement proactive cost management and

inventory practices to align production with fluctuating demand and reduce unnecessary spending.

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Improved supply chain strategies and supplier diversification will minimise disruptions and waste, creating

greater resilience against global market shocks. Investing in logistics infrastructure and improving inventory

management efficiency can enhance financial stability and reduce vulnerabilities.

Moreover, corporate social responsibility (CSR) is essential for building trust and goodwill, particularly in

communities affected by the pandemic. Businesses should support by investing in programs that emphasise job

creation, environmental sustainability, and community welfare. For example, promoting employee welfare, such

as healthcare, job stability, and a safe working environment, can contribute to a more motivated and secure

workforce. Companies should also emphasise employee development initiatives to address potential skills gaps

and improve job security. Prioritising CSR initiatives that improve community well-being and workforce

security will help to build public trust and investors’ confidence.

Additionally, the government and private sector should collaborate to drive industry innovation and skill

development, as Micron has done. Not only that, this helps ensure a ready supply of a competent workforce to

meet future demands and creates a business-friendly economic system, further boosting Malaysia’s appeal to

investors (Bernama, 2023). However, it is important to note the ethical considerations involved in implementing

these initiatives. Ensuring fair access to opportunities for all parties is essential, especially for underserved

communities, as it can promote inclusive economic growth. This commitment to equity will strengthen recovery

efforts and build trusting government initiatives.

In conclusion, Micron 's response to the COVID-19 pandemic reveals important lessons in managerial finance,

especially in balancing saving and spending within Malaysia's economy. As the company faced unexpected

issues, it focused on improving operations while ensuring the safety and stability of its workforce in Malaysia.

Furthermore, it can be seen that Micron demonstrated the importance of financial responsibility during uncertain

times through cost-control measures and sound inventory and supply chain management. Not only that, it's

significant investments in facility expansion and research and development reflect a commitment to smart

spending that supports both growth and the local economy. This balanced approach emphasises the need for

ethical financial practices that promote long-term sustainability of the Malaysian economy, reminding

organisations to align their financial strategies with broader social responsibilities while strengthening economic

recovery and resilience.

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