Malaysia’s machinery and parts manufacturing sector remains strong
31 Dec 2021
Malaysia’s machinery and parts manufacturing sector remains strong and is committed to delivering quality products and service excellence despite global trade disruptions, according to the Malaysia External Trade Development Corporation (MATRADE).
In a statement today, the national trade promotion agency said the machinery industry has transformed from general fabrication and machining works to the assembly of higher-end machinery modules and components, including heavy machinery and precision components manufacturing.
MATRADE said the machinery and equipment (M&E) industry is Malaysia’s seventh largest export sector, contributing US$9.41 billion (US$1=RM4.17), or four per cent of total exports in 2020.
The top 10 export destinations for the M&E industry include Singapore, the United States, China, Indonesia, Vietnam, Thailand, Japan, Australia, Germany, and Taiwan.
“Malaysia’s M&E capabilities are mainly in four subsectors, including specialised process machinery or equipment for specific industries; power generating machinery and equipment; general industrial machinery and equipment, components and parts; as well as metalworking machinery.
“It also covers the manufacturing of a broad category of products including heating and cooling equipment, factory automation, pumps, compressors, air conditioning plants, cold room equipment, elevators, cranes, conveyor systems, and welding machines. Malaysia is currently one of the world’s largest exporters of air conditioning equipment,” the agency said.
MATRADE said other capabilities included manufacturing machine tools and parts for metalworking including laser-cutting machine, machining centres, ElectroDischarge Machines (EDM), milling and forging machines.
Malaysia is also renowned for producing semiconductor equipment. It is currently the tenth largest in the world with electrical and electronics (E&E) being the largest sector. This has helped to position Malaysia as a production base for the world’s top electronics companies, it said.
The machinery and parts sector also excels in deep water production equipment for the oil and gas industry, robotic automation solutions production for the food and beverage industry, precision moulding equipment, and power generation.
Malaysia also produces generating sets for power plants, refinery, exploration platforms, petrochemical plants, and commercial buildings.
“Malaysia’s M&E industry is highly competitive and we are consistently seeking to innovate with the most advanced technologies and automation. We actively explore Industry 4.0 technologies to reshape our manufacturing activities through the adoption of digitalisation and technological transformation.
“The opportunities created by this revolution have enticed many Malaysian small and medium enterprises to come up with their own innovative solutions that are marketed globally,” it said.
Malaysia is, therefore, a choice destination for multinational corporations (MNCs) to outsource their manufacturing processes and automation solutions in ASEAN, due to the availability of highly skilled manpower in supporting industries, research and development and engineering design activities.
“Malaysia offers competitive supplies and services in M&E engineering, product design and technology development as well as business operations to these MNCs,” said MATRADE.