MPC: Malaysia’s E&E sector has huge potential to meet rising global demand
11 Nov 2021
Malaysia’s electrical and electronics (E&E) sector has huge potential to meet the increasing global demand particularly in the semiconductor market worldwide, said Malaysia Productivity Corporation (MPC).
Based on the World Semiconductor Trade Statistics, the global semiconductor sector is projected to grow at a rate of 20 per cent or US$527 billion (US$1=RM4.16) in 2021 and will increase by another 10 per cent in 2022 (US$573 billion).
“This dynamic expansion provides a good opportunity for Malaysia to increase its gross domestic product (GDP) in the economic recovery phase which is the agenda for 2022,” MPC said in a statement.
The agency said the E&E sector contributed RM386 billion, or 39.4 per cent, to the nation’s total exports. In the first six months of 2021, total E&E exports increased by 28 per cent compared to the same period previously.
Malaysia is recognised as a major semiconductor producer in the global E&E chain. Seven per cent of the world’s semiconductor trade flows through Malaysia.
“Therefore, the country’s economic recovery initiatives in the E&E sector must be multiplied to enable Malaysia to be in a strong position to meet global E&E demand,” it said.
MPC director-general Datuk Abdul Latif Abu Seman said Malaysia must grab the opportunities from the strong global demand for E&E products.
Production and manufacturing productivity must be enhanced to fulfil demand and strengthen Malaysia’s global position as a major E&E products producer.
“Feedback from the industry is very important to identify the challenges faced by industry players that hinder their business operations. Engagement with the industry can fine-tune solutions to address identified challenges and whether government intervention is needed for implementation,” he said.
Among the critical challenges faced by the E&E sector is in recruitment and employment of workers.
Abdul Latif said the sector had experienced a 70 per cent drop in new recruitment in the last three months and this situation had hampered business operations.
Meanwhile, Malaysian Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai said the industry needs at least 14,000 local and foreign workers, 2,400 engineers, 1,600 support staff, and 450 expatriates to meet the manpower requirements of the E&E sector.
He said this is due to the reopening of economic activities and expansion in business operations.
“The industry and the nation will lose the chance to generate economy and income if constraints in manpower is not overcome,” he said.