Industries in Malaysia
Machinery and Equipment Industry
The Government has identified the machinery and equipment (M&E) industry to be one of the key areas for growth and development. The growth will focus on the manufacture of high value-added and high technology M&E.
The long term objectives outlined under the Third Industrial Master Plan (IMP3) for the M&E sector is to position Malaysia as :-
i) The regional production hub for high technology and specialised M&E;
ii) The main distribution centre in the region for all types of M&E; and
iii) The centre for maintenance related services, refurbishment, reconditioning and upgrading of high technology and specialised M&E.
Malaysia's competitive edge lies in its ability to provide engineering design services with R&D, high skilled and knowledgeable workforce, and high technology and high quality production at lower cost compared to other industrialised countries.
With increasing competition from lower cost producing countries, the industry is expected to move away from the manufacture of low-end and low-technology M&E.
Malaysia is now moving towards or focusing on high technology and high value added M&E i.e standard M&E for niche market, and specialised or custom made M&E.
Although Malaysia competes with developed countries where these M&E are produced, Malaysia would have the cost competitive edge.
The global M&E industry is continuously being driven by technological advances, process specialization and customer requirements for shorter throughput times, faster delivery and lower costs.
Malaysian M&E manufacturers, like their counterparts in industrialised countries, are leveraging upon their strengths in core activities, such as R&D, D&D, software development, system integration, assembly, testing and calibration while focusing on quality of production.
The manufacture of parts & components, and modules which are more capital-intensive, are outsourced to an extensive and technically capable local engineering supporting industry to keep costs low.
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