Local E&E Players Need to Upgrade Facilities & Processes to Remain Competitive In The Global Supply Chain

For the Malaysian E&E industry to be more competitive, local industry players have no option but to upgrade their facilities and embrace automation and smart manufacturing such as the Internet of Things (IoT).

26 April 2016, Pulau Pinang - "For the Malaysian E&E industry to be more competitive, local industry players have no option but to upgrade their facilities and embrace automation and smart manufacturing such as the Internet of Things (IoT). Return on investments (ROI) in automation may not be apparent in the short term but, in the long term, companies will enjoy greater performance on efficiencies, improved quality products and reduced dependencies on unskilled labour. To better facilitate Malaysian-based companies to be part of the global supply chain, the Government has recently established the Electrical and Electronics Strategic Council (EESC) to strengthen and enhance the E&E industry to the next level. The focus areas include semiconductor, industrial system electronics, solar and cloud computing,” said YB Dato’ Sri Mustapa Mohamed, Minister of International Trade and Industry at the Opening Ceremony of SEMICON Southeast Asia (SEA) 2016. His speech was read out by Dato’ Azman Mahmud, Chief Executive Officer of Malaysian Investment Development Authority (MIDA).

“The E&E industry is a dynamic industry that has contributed significantly to Malaysia’s growth, export earnings, investments and employment. In 2015, the industry contributed 6.1% to the GDP. The E&E products in 2015 accounted for 35.6% of total exports. The semiconductor industry in particular, is the largest contributor comprising more than 40% of Malaysia’s E&E exports. We are also currently the world’s leading location for semiconductor assembly and test operations, accounting for more than 12% of the world installed capacity. 6 out of the 10 largest semiconductor companies in the world have established their presence in Malaysia. Growing the semiconductor sector, especially the front end will certainly spearhead the growth of the E&E industry in Malaysia,” the Minister added.

To date, total realised investments of the E&E industry amounted to RM182 billion, where 85% of these are contributed by foreign sources. More than 780,000 people have also benefitted from these projects through employment.

The SEMICON event which has drawn a stronger participation with more than 7,500 expected visitors – an increase of 15% from last year, features MIDA Pavillion that hosts Northern Corridor Implementation Authority (NCIA) and MIMOS and 6 Malaysian companies namely, Inari Technology, JF Microtechology, Linear DMS Solutions, Pentamaster Corporation, Koseido Engineering and Bokopt. Through this engagement, potential investors can learn more about the Malaysian E&E capabilities and form mutually beneficial collaborations. In addition, local companies can also leverage on the International Sourcing Programme organised by MIDA and MATRADE during the event to reap much potential business opportunities. The programme involved more than 60 pre-arranged business meetings with 8 participating buyers from Singapore, Philippines, Myanmmar, China, Korea and Hungary.

SEMICON SEA 2016 marks Malaysia’s second year to host the region’s biggest microelectronics event, reflecting SEMI’s continued confidence in Malaysia’s vibrant ecosystem for the semiconductor industry.


For further information, please contact:

Ms. Inon Abdul Hamid

Executive Director, Electrical and Electronics Division, MIDA

Tel: 03 2267 6650
Fax: 03 2260 1641
Email: [email protected]

Posted on : 26 April 2016
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Last Updated : Monday 22nd October 2018