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Industrial Electronics
Malaysia continues to encourage companies within the industrial electronics sub-sector to develop, commercialise, and maintain advanced electronic industrial solutions spanning the entire value chain, ranging from power and electrical infrastructure systems to industrial automation, embedded technologies, cloud connectivity, and end-user digital applications for businesses. The sector is also being strengthened through the adoption of Industry 4.0 technologies, artificial intelligence (AI), automation systems, Internet of Things (IoT) solutions, smart manufacturing, and advanced semiconductor-related applications in line with the objectives outlined under the New Industrial Master Plan 2030 (NIMP 2030) and the National Semiconductor Strategy (NSS).
The industrial electronics sub-sector encompasses products and solutions such as computer peripherals, telecommunications equipment, data communication devices, industrial transmitters, routers, embedded systems, automation control systems, sensor technologies, robotics applications, and advanced electronic manufacturing solutions. The sector continues to play an important role in supporting Malaysia’s broader electrical and electronics (E&E) ecosystem, which remains one of the country’s largest export contributors.
Malaysia continues to leverage its strategic trade advantages through various multilateral and regional trade arrangements, including the World Trade Organization (WTO), the ASEAN Free Trade Area (AFTA), the Regional Comprehensive Economic Partnership (RCEP), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). These frameworks are intended to strengthen regional competitiveness, improve market access, enhance supply chain integration, and facilitate higher-quality investments into Malaysia’s manufacturing and technology sectors.
In addition, Malaysia continues to strengthen investment facilitation and industrial ecosystem development through agencies such as the Malaysian Investment Development Authority (MIDA), Malaysia Digital Economy Corporation (MDEC), and InvestPenang. The country remains supported by established infrastructure, a skilled engineering workforce, advanced manufacturing capabilities, and strong integration within the global semiconductor and electronics supply chain.
Malaysia’s industrial electronics sub-sector continues to prioritise higher value-added and high-technology activities, particularly in advanced manufacturing, integrated circuit (IC) design, automation engineering, embedded software development, and smart industrial solutions. Under NIMP 2030 and the National Semiconductor Strategy, greater emphasis is also being placed on strengthening domestic capabilities in semiconductor design, advanced packaging, research and development (R&D), integrated manufacturing ecosystems, and talent development.
Malaysia also hosts a well-established electrical and electronics manufacturing cluster, particularly in Penang and Kulim, Kedah, which continue to attract significant investments from global semiconductor, industrial electronics, and technology companies. The Kulim Hi-Tech Park and Penang technology ecosystem remain among the country’s key hubs for semiconductor manufacturing, industrial electronics production, wafer fabrication, advanced packaging, and technology-driven industrial activities.
Automatic Data
Processing Machines
Biometrics
Mechatronics & Robotics
Professional Scientific and Test Measuring Equipment
Test and measurement equipment covers a broad array of analytical instruments engineered to detect and quantify physical parameters, biological processes, and electrical signals. These high‑precision tools are vital across numerous industries, providing the accurate evaluations needed for informed decision‑making. At a global level, the test‑and‑measurement sector is a key driver of technological progress, enabling the development of new products and breakthroughs in a wide range of fields.
The rising demand for
advanced PCBs and surface mounted
technology.
This is expected to drive the automated
optical inspection system market in the
future.
Advanced electronic devices depend on meticulously verified printed circuit boards (PCBs). To meet strict manufacturing and safety requirements, manufacturers deploy automated optical inspection (AOI) systems that deliver targeted testing and precise defect detection at every stage of PCB fabrication. By weaving AOI into the entire production flow, each board is guaranteed to meet exacting quality and reliability standards.
The Ministry of Communications commenced the nationwide rollout of 5G technology in 2021, with connectivity enhancement being positioned as a key national priority under the National Digital Network Plan (JENDELA). These initiatives have been implemented through structured planning frameworks and targeted digital infrastructure goals established by the Government.
The implementation of the 5G network encompasses measures relating to connectivity availability, regulatory frameworks, industry participation, and end-user accessibility. As of July 2025, Malaysia’s 5G network coverage had reached approximately 82.4% of populated areas nationwide, supported by the deployment of approximately 7,489 5G transmitter sites by Digital Nasional Berhad (DNB). In addition, overall internet and communications coverage across populated areas had achieved approximately 98.82% nationwide. Mobile 5G broadband penetration was recorded at approximately 82.7 subscriptions per 100 inhabitants, with more than 28 million 5G subscriptions registered nationwide.
Furthermore, industrial utilisation of 5G technology continues to be prioritised across sectors such as manufacturing, oil and gas, logistics, healthcare, and smart city development. The Government has also continued to promote broader enterprise adoption of advanced digital technologies and AI-enabled applications under the national digitalisation agenda.
The 5G Demonstration Project achieved significant success in industrial applications. In one oil and gas industry demonstration project, robotic systems were successfully deployed to remotely replace engineers in selected operational activities. The implementation of 5G technology effectively addressed critical concerns relating to worker safety, operational efficiency, and real-time remote monitoring in offshore oil rig operations.
In addition, 5G technologies continue to provide substantial advantages to the tourism sector through the introduction of immersive digital experiences. Virtual reality applications, for example, enable tourists to access 360-degree visual experiences of attractions through high-definition live streaming delivered to virtual reality devices and digital display platforms.
JENDELA, which was designed to strengthen nationwide connectivity and improve communication quality, has been progressively implemented throughout the country. Under the programme, nationwide 4G coverage across populated areas has surpassed approximately 98% as of 2025, while mobile broadband speeds have continued to improve in line with the Government’s digital infrastructure targets. JENDELA remains a key national initiative aimed at strengthening the country’s fixed and mobile broadband ecosystem in response to rising post-pandemic digital connectivity demand.
JENDELA was implemented under the 12th Malaysia Plan (2021–2025) and continues to serve as a foundational platform supporting Malaysia’s broader transition towards advanced 5G and next-generation digital infrastructure development.
