semiconductor, electronics

E&E industry – the golden goose of Malaysia

By Wong Siew Hai (Advisor, IGSS Ventures)

It is not business as usual in the electrical and electronics (E&E) industry in Malaysia.

The buoyant E&E industry has been the mainstay and strength of the manufacturing sector and economy, with enhanced export competitiveness over the past four decades.

It is currently facing challenging times, both on the domestic and external fronts.

Some of that robust momentum has been lost. Misperceptions of the expected role of the E&E industry in a developed Malaysian economy have surfaced among policymakers while Malaysia’s global place as the preferred E&E investment destination now stands at odds.

It is not sheer coincidence that Malaysia stands as the seventh largest E&E exporter in the world today. As a gateway to trade, the E&E industry continues to be a key driver of industrial development and contributes significantly to GDP growth, export earnings, investment and employment. In short, Malaysia’s rapid industrialisation and high ranking among the top group of trading nations in the world were mainly contributed by this industry.

The E&E industry remains the leading segment in the manufacturing sector which produces semiconductors, electronic equipment for industries and electronic products for customers worldwide.

Last year, this industry contributed 38% of the total exports with a trade surplus of RM119bil, which marked the highest among all the sub-sectors for the manufacturing sector. The trade surplus has entered into the 253rd consecutive month since the Asian financial crisis, due to export-orientedness of E&E, as measured by the more than 45% contribution to the overall manufacturing exports.

Read full article from The Star.