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This study aims to explore the agility development from strategic perspectives in the Malaysian and Singaporean semiconductor industries. Firstly, it assesses the needs of agility in the region semiconductor industry. Secondly, it explores informal practices that are associated with agility could bring alternative competitive success; and finally, it argues that the systematic development of agility through formulation, implementation and evaluation could bring competitive advantage to Malaysian and Singaporean semiconductor industries. Using mixed-method research method, this study provided a grounded and exploratory approach, where 101 questionnaires and 4 case companies were used as empirical data which collected in Malaysia and Singapore between Jan 2004 to March 2004. SPSS was used to analyse descriptive and inferential quantitative data from survey questionnaires, while cross-case analysis was carried out to analyse qualitative data in four case companies. Using data integration, this study revealed ten major findings. It concludes that agility is a multi-dimensional approach that encompasses a wide variety of best practices and agility should be built on the foundation of world class manufacturing methods, coupled with an organisation that is technologically and managerially established for rapid and unpredictable change. This study also concludes that informal practices associated with agility need to be embodied in an organisation that attempts to develop agility. Finally, the development of agility does not happen overnight, as it requires a change agent or company-wide transformation to take place in order to develop agility properly. This study identifies the major needs for developing agility strategy in the Malaysian and Singaporean semiconductor industries. A conceptual and systematic framework for developing agility was proposed through strategic formulation, implementation and evaluation that provided valuable evidence to create new strands of agility theory development in other industry within the region, especially those newly industrialised counties. These contributions enable academic researchers to expand the topic into longitude empirical studies and discuss the topic insightfully.