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Electrical and Electronics

Malaysia’s E&E industry has been a significant contributor to the nation’s economy, having been identified in the 11MP as one of the ‘3+2’ catalytic sectors. In 2017, the industry attracted the greatest amount of foreign investments (RM8.2 billion, or 84.5% of all investments in the industry), mostly from Singapore, the Netherlands, Japan, and Germany.

Its success was further evidenced by being the country’s largest export earner in 2017, totalling RM343 billion and accounting for 36.7 per cent of the total value of exports. Singapore, China, Hong Kong, Japan, the Netherlands, Germany and the USA were among the markets which registered significant increase in exports of E&E products.

The E&E industry in Malaysia, particularly the semiconductor ecosystem, has critical cross-industry linkages and applications, including new growth in telecommunication and medical devices, as well as Internet-capable industrial technologies and mobile electronic systems, such as the Internet of Things (IoT), Virtual or Augmented Reality (VR/AR), automotive electronics, wearable electronics, and personal computing.

An exciting new area in the E&E sector is the use of flexible hybrid electronics (FHE), which underlies several new industrial technologies and wearable electronics. FHE makes it possible to produce lightweight, low cost, flexible, stretchable, and efficient smart products with a variety of applications. These include health-monitoring wearables and rugged sensors.

MIDA is ramping up efforts in developing the ecosystem to cater to the growing needs of the E&E industry in embracing Industry 4.0. These include investments in core focus areas such as FHE materials scale-up, thinned device processing, device/sensor integrated printing and packaging, system design tools, and reliability testing and modelling.

Global mega trends will both impact, and be impacted by, the E&E industry. Such trends include Industry 4.0; pervasive robotics and automation in manufacturing facilities, logistics and warehousing, and the increasing adoption of intelligent home and building technologies; a move towards modernising ‘lean’ manufacturing; and the digital lifestyle/economy. As such, investors may consider capitalising on various strategic opportunities, such as financing R&D towards implementing Industry 4.0 and smart manufacturing. Another area of opportunity is in talent pool creation to support the E&E industry. MIDA is currently working with USAINS Holding Sdn. Bhd., the corporate arm of Universiti Sains Malaysia, on a talent development programme, focusing on advanced engineering subjects.

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Last Updated : Thursday 19th July 2018