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Key challenges and opportunities for E&E industry in Malaysia

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MP SPEAKS | More work is needed to promote and sell Malaysia as a strategic attraction in the global E&E ecosystem.

of my statement, I explained the importance of the E&E industry to the larger Malaysian economy and how this sector has evolved over time.

The attractiveness of tax and other related incentives is one of the factors influencing global investment location decisions. The challenge is for the respective management teams in Malaysia to make a pitch to their global headquarters for these new investments. The restructuring of the National Committee of Investments to process the various investment incentives applications with co-chairs from MITI and MOF should increase the processing speed and approvals rate of some of the existing MNCs’ applications.

Indeed, many LLCs are already investing their own resources in R&D-related activities as part of their services to their MNC customers and part of their internal strategy to expand activities beyond the contract manufacturing scope. In the short term, there are a few initiatives which can be undertaken to address the E&E industry talent shortage.

MITI is also working with the Human Resources Ministry to introduce Industry 4.0-specific courses and programmes. Such programmes will also benefit the E&E industry from a talent development perspective. Tongfu Microelectronics , listed on the Shenzhen Stock Exchange, acquired AMD’s operations in Penang in 2016 and has steadily increased its investments and production in Penang.

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