MSIA to enhance E&E productivity, competitiveness

The association is one of the key strategies to strengthen local E&E players to become global champions


MALAYSIA’S electrical and electronics (E&E) sector will further enhance its productivity and competitiveness with the formation of the Malaysia Semiconductor Industry Association (MSIA) which will accelerate government-industry collaborations.

Deputy International Trade and Industry (MITI) Minister Datuk Lim Ban Hong (picture) said MITI and its agency, the Malaysia Productivity Corp (MPC), will support MSIA’s agenda especially in the area of Industrial Revolution 4.0.

“The E&E sector continues to be the key driver of industrial development, and it contributes significantly to the country’s GDP growth, export earnings, investments and employment.

“Today, Malaysian E&E industry players employ over 575,000 people and contribute 6.8% to Malaysia’s GDP. In terms of productivity, the E&E subsectors specifically recorded 4.5% in productivity growth, the highest among nine other subsectors,” he said at the launch in Subang Jaya, Selangor, yesterday.

He reiterated that MITI’s external trade forecast for 2021 is at 2.7%, but added that the export figures for January (6.6%) and February (17.6%) indicate that economic recovery is on the right path.

“The external demand for exports, rebound of the global economy, coupled with the rollout of vaccination and policy support from various countries, will further drive the growth of Malaysia’s export and trade.

“In 2021, we projected the growth for information technology infrastructure, smartphone and cloud computing to be at 6.2%, 11.4% and 18.4% respectively.

“Strong global demand for E&E products will support the growth of our local production and exports because six out of the 12 largest semiconductor companies globally and three out of the nine largest LED companies globally operate in Malaysia,” he explained.

Touching on the new national investment policy which will be announced soon, Lim said MITI aims to attract more technology-oriented and tech-based investments into Malaysia.

According to the worldwide Semiconductor Industry Association, Malaysia is one of the key players in the global semiconductor trade which contributes US$89 billion (RM367.57 billion) or 7% of total trade flows.

Malaysia is also US’ largest semiconductor trading partner — standing at 24% market share.

As a semiconductor exporter to the US, Malaysia is a leading hub for semiconductor’s assembly, test and packaging, and a growing destination for semiconductor equipment and toolmakers.

MPC DG Datuk Abdul Latif Abu Seman said the establishment of MSIA provides a platform for the industry in growing its activities in the new normal amid the Covid-19 pandemic.

“MPC and MSIA will collaborate on several programmes such as National E&E Forum, Industrial Upskilling and Reskilling Programme, Artificial Intelligence Webinar Series, Vendor Development Programme and more.

“We also encourage E&E industry players to register and subscribe in the E&E Marketplace Malaysia, a business-to-business online marketplace portal which serves as an important gateway in promoting Malaysian E&E companies to the international market,” he said.

MSIA president Datuk Seri Wong Siew Hai said the association is one of the key strategies to strengthen local E&E players to become global champions.

“Even after 40 years, Malaysian E&E industry representation is still fragmented. There are still no associations for the semiconductor industry in Malaysia.

“As E&E’s contribution is significant which is about 38% of export, we believe we need a separate representation on our own, which is important to ensure better integration, consolidation and undivided attention, and to build an ecosystem and supply chain for the future,” Wong said.