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Electronics And Electrical
Last Updated : 17/3/2017 11:22 AM

Where we are today
The Electronics and Electrical sector (E&E) is an important contributor to the national economy, accounting for RM37 billion in GNI (6 percent of national GNI), 522,000 jobs and 41 percent of Malaysia's total exports in 2009. The sector has spawned successful local firms and virtually every leading global firm operates here.

Nonetheless, E&E faces significant challenges in maintaining growth in the face of competition from China, Taiwan, Singapore and other Asian countries. In the last decade, E&E's share of exports has declined. Furthermore, our focus has been on assembly, the lower value-added segment, while other countries have captured higher value-added activities in research and development, design and manufacturing. 

Vision for the future
We aim to strengthen Malaysia's E&E capabilities across the value chain, particularly in higher value-added upstream activities. Our focus will also be on attracting more leading multinational companies to operate in Malaysia and creating more Malaysian champions.

Targets and aspirations
We will revitalise Malaysia's E&E sector to increase GNI by RM53 billion to reach RM90 billion by 2020 and provide an additional 157,000 jobs (both high-skilled and medium-skilled). 

Our strategy is to focus on 15 EPPs across four geographic clusters (Northern Corridor, Greater Kuala Lumpur/Klang Valley, Johor and Sarawak) and five target sub-sectors.

  1. Semiconductors
    Our efforts in this important part of our E&E sector have been typically in areas with lower value-add such as test and assembly. We will follow a strategy of building on our strong foundations in mature technology semiconductor fabrication and expanding into advanced packaging and design of integrated circuits as well as supporting the growth of substrate manufacturers.

  2. Solar
    With a strong start in solar and solid experience in the similarly structured semiconductor industry, Malaysia has a promising future in a promising technology. A concerted effort to increase the number of silicon, wafer, cell and module producers will allow us to leap into second place of a much larger industry by 2020.

  3. Light-emitting diodes
    Malaysia has a strong lead in solid-state lighting, one of the fastest growing segments. We need to move up the value chain from packing and testing to chip and application research and development by creating a cluster of international and domestic companies.

  4. Industrial electronics
    Industrial electronics involves the manufacturing of precision equipment used in industrial and commercial settings. Test and measurement, wireless communication, transmission and distribution and automation markets are the most attractive for further development.

  5. Electrical home appliances
    Malaysia has been successful domestically with the development of strong local home appliance companies. The next step is to grow scale and build a strong international distribution network.

Enabling growth
The total cumulative funding requirement from 2010 to 2020 is RM78 billion, with 12 percent coming from the public sector, and the remaining 88 percent from the private sector.

We have also identified common enablers critical to the success of the E&E industry. The enablers are grouped into those specific to the four key regional clusters (e.g. granting MSC status) and more general cross-cutting enablers grouped by government role (e.g. removing restrictive regulations), talent (e.g. increasing training courses), infrastructure (e.g. enhancing stability of electricity supply to industrial parks) and technical ecosystem (e.g. establishing centres of excellence).

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