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Growth in Malaysia’s Electrical and Electronics Sector

Published: 10.6.2023

Malaysia's electrical and electronics (E&E) sector is gaining momentum, securing a notable RM44.9 billion in approved manufacturing investments from January to June this year. Of this, RM10.9 billion was attributed to the electrical and electronics industry, foreshadowing an anticipated demand recovery in 2024 in alignment with the World Semiconductor Trade Statistics (WSTS) Forecast of Global Semiconductor Sales.

The New Industrial Master Plan (NIMP) 2030 recognizes the E&E sector as a high-growth, high-value industry (HGHV), offering Malaysia an opportunity to elevate along the value chain. Presently the seventh largest semiconductor exporter globally, holding a seven percent market share.

Malaysia can harness prospects, particularly amidst the US-China strategic rivalry attracting foreign direct investment in wafer fabrication facilities and advancing in leading-edge technologies.

A strategic move involves luring a globally competitive wafer fabrication company to establish local operations and expand capabilities to produce 28-40nm wafer fabrication from the current 200nm level. This initiative aims to meet future demand, enhance competency, bolster the semiconductor ecosystem, and mitigate supply chain disruptions arising from geopolitical shocks.

This surge in E&E sector investments signifies a significant stride for Malaysia as it ascends the value chain, promising potential benefits for SMEs, enhanced salary scales, and increased job prospects for local talent. With foreign investors demonstrating confidence in Malaysia as a preferred investment destination, the approved manufacturing investments are poised to create substantial job opportunities and invigorate the nation's economic landscape.

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