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Machinery and Equipment

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 M&E industry can be categorised into the following classifications :-

  1. Power generating machinery and equipment
  2. Metalworking machinery
  3. Specialised process machinery or equipment for specific industry
  4. General industrial machinery & equipment, components and parts.

The long term objectives outlined under the Third Industrial Master Plan (IMP3) for the M&E sector is to position Malaysia as :-

  1. The regional production hub for high technology and specialised M&E; 
  2. The main distribution centre in the region for all types of M&E; and 
  3. 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 moving towards production of high technology and high value added M&E which cater to the niche market, specialised or custom made with high mix and low volume concept.

Despite competing against developed countries in production of M&E, Malaysia has the competitive edge in terms of capabilities in capturing niche market segments.

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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Last Updated : Monday 18th September 2017