ENGINEERING SUPPORTING INDUSTRIES: BUILDING BLOCKS FOR INDUSTRIALISATION
The Engineering Supporting Industries (ESI) are the building blocks which serve as the fundamental base for the growth of other industries. The ESI covers the moulds and dies, casting, machining, metal stamping, heat treatment and forging activities. These subsectors contribute significantly to the manufacturing and services sectors and would require continuous technological changes and upgrading impacted by consumer demand, cost of production and competition within the industry.
The industry continuously evolves to grow in tandem with Malaysia’s growth towards becoming an industrialised nation. To date, Malaysia is recognised globally for its capabilities, consistent quality of production, and fast and reliable deliveries in a diverse range of engineering activities, particularly in precision machining and fabrication.
Malaysia’s ESI companies continue to retain their competitive advantages in the global supply and value chain ahead of rising competition faced from our ASEAN neighbours such as the Socialist Republic of Vietnam, Indonesia and Myanmar. Malaysian companies have successfully leveraged on their capabilities to produce high value added and high-mixed low-volume products, providing integrated services with niche production concept which require high standards of design and development, stringent quality assurance and short lead time delivery.
In addition, the Government is encouraging more companies to move up the value chain and provide total manufacturing solutions for high-end industries such as the semiconductor, machinery, medical, oil & gas and aerospace industries, in line with Malaysia’s efforts to become the preferred location for global outsourcing.
There are currently more than 2,000 ESI companies in Malaysia, providing products and services ranging from moulds and dies to metal fabrication. With non-equity investments on the rise and the emergence of digital manufacturing, Malaysia’s ESI is positioned to become a ‘One Stop Centre’ by offering total solutions to clients. As a ‘One Stop Centre’, Malaysia would also offer integrated services ranging from product conception (including design and prototyping) to serial production, while managing the entire process flow including procurement, logistics, packaging, testing and certification.
This is made possible by constant upgrading of facilities and acquiring latest technologies to meet stringent requirements from Original Equipment Manufacturers (OEMs) to outsource parts and components and precision engineering services.
Future development of the engineering supporting industry will focus on strengthening its services, and enhancing its capabilities and quality of production to provide integrated solutions. The industry is gearing towards international certification for the supply of parts and components for the oil & gas, aerospace, medical devices and solar/photovoltaic industries.