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Electrical and Electronic

Electrical and Electronic

Electrical and Electronics

 

Industry - Electronic Components

 

Electronic components are fundamental elements embedded in all electrical and electronic devices, such as consumer electronics, industrial electronics, and appliances. This is reflected in its investment performance, with this sub-sector contributing the largest share of investments in the electrical and electronics (E&E) industry, accounting for 62% (2021), driven mainly by foreign investments.
 
Due to its wide range of products, this sub-sector provides crucial growth for the electrical and electronics industry, encompassing everything from semiconductor devices such as chip integrated circuits (ICs) and IC design and packaging activities, to passive components such as capacitors, resistors, connectors, inductors, crystal quartz, and oscillators. It also covers components such as storage media, disk drive parts, printed circuit boards (PCBs), LED substrates and epitaxy, microcontrollers, and other metal and plastic parts for electrical and electronic applications.

 

 

Semiconductor Ecosystem

The semiconductor industry is one of the major contributors to Malaysia's manufacturing sector. Multinational corporations (MNCs) have a higher presence in this ecosystem compared to Malaysian companies. The strength and capabilities of local industry players are concentrated in the downstream of the semiconductor value chain, including assembly (advanced packaging) and testing, as well as system integration.
 
The resilience of this industry in the face of the global COVID-19 pandemic should encourage potential investors, a clear sign of the adaptability and agility of industry players. While the pandemic and government responses caused significant disruption to manufacturing businesses, including electronics and electrical, it also led to a significant increase in demand for specific electronic and electrical products, stimulating overall semiconductor growth. As of June 2022, 83% of the Malaysian population had been fully vaccinated, mitigating the impact of the pandemic and paving the way for growth opportunities in Malaysia's E&E ecosystem.
 
We welcome more investments in upstream and downstream semiconductor ecosystem activities, involving integrated circuit (IC) design, engineering services and solutions supporting chip manufacturing, and Malaysia’s strong and advanced IC packaging industry:

  • IC/System Design
  • Chip Manufacturing/Front-End Activities
  • IC Packaging/Back-End Activities and Engineering Services Solutions

 

Local Electronic Companies

The presence of multinational corporations in Malaysia has brought in the latest technological innovations and created technology jobs. Over the years, this has nurtured the local supply chain and provided Malaysia with opportunities to connect with the global value chain. Optimization of the local supply chain or vendors has also driven Malaysia's competitiveness and penetration into the global market.

 

 

Industry - Industrial Electronic Products

 

Malaysia encourages companies in this sub-sector to design, sell, and maintain electronic industrial solutions for businesses – from the grid to the end-user.
 
Industrial electronic products refer to electronic products such as computer peripherals, equipment, communication devices, transmitters, routers, embedded systems, etc.
 
Malaysia enjoys numerous trade preferences through the Generalized System of Preferences (GSP) under the General Agreement on Tariffs and Trade (GATT), unilateral trade agreements, and various trade liberalization agreements such as the ASEAN Free Trade Area (AFTA), ASEAN (Association of Southeast Asian Nations), and the Regional Comprehensive Economic Partnership (RCEP). RCEP aims to create a free, convenient, and competitive environment in the region and improve investment facilitation provisions and investor aftercare services. Malaysia also boasts world-class infrastructure, technological expertise, and manufacturing diversity to meet the needs of global business clients.
 
Malaysia's industrial electronics sub-sector is prioritizing high-tech applications to drive the E&E industry towards higher value-added activities. This sub-sector is moving towards a more advanced direction through the application of advanced technologies to create more complex products. To date, electronic industry clusters have been established in Malaysia, primarily concentrated in Penang and Kulim, Kedah.

 

Investment Opportunities

  • Automatic Data Processing Equipment
  • Biometrics
  • Mechatronics and Robotics
  • Specialized Scientific and Test Measurement Equipment

 

Testing and Measurement Equipment

Testing and measurement equipment are analytical devices and instruments for detecting and measuring physical properties, biological interactions, and electrical signals. The global testing and measurement market plays a vital role in the development of new products and technologies.

There is a growing demand for advanced PCBs and surface mount technologies. This will drive the automated optical inspection systems market in the future.

Technologically advanced electronic machines require effectively tested PCBs to meet the manufacturing and safety standards employed in their development. The automated optical inspection systems market provides application-specific testing and fault detection at every stage of the PCB manufacturing process.

 

Telecommunication Equipment

  • Resilience
  • 5G
  • Cybersecurity
  • Cloud Computing
  • Robotic Process Automation
  • Big Data
  • Internet of Things
  • Artificial Intelligence

 

 

Industry - Consumer Electronics

 

The consumer electronics industry has improved people's lives through the power of technology. Driven by the ambition of engineers and technological advancements, with an advanced Malaysian dream in mind, this industry has enriched society with numerous innovations and products, improving the lives of countless individuals. The rapidly evolving technology in this area helps bring progress and possibilities to every corner of the nation—safely delivering the tools people need to support homes, schools, hospitals, and businesses.

This segment includes the production of various consumer electronics such as infotainment, audio-visual products, multimedia devices, including media players, speaker units, speaker amplifiers, and Bluetooth devices.

 

The advent of Industry 4.0 further revitalizes the growth of new consumer products. Innovation has consistently been the driving force behind the new demand for smarter consumer products embedded with the latest technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), Augmented Reality (AR), and Virtual Reality (VR).

 

By combining world-class engineering technology with software and analytical techniques, Malaysia has consistently produced efficient, reliable, and widely trusted consumer electronics. As Malaysia solidifies its position as a regional hub for electronics and electrical, we seek to strengthen the business landscape which will propel our long-term transformation into a fully industrialized and advanced nation.

 

The consumer electronics market has never developed as rapidly and profoundly as it has today. Despite the significant disruption caused by COVID-19, the outlook for the global consumer electronics market in the coming years is bright, with projections of growth from US\$1.05 trillion in 2022 to US\$1.77 trillion in 2030, representing a compound annual growth rate (CAGR) of 4.9% during the forecast period.

  • Lifestyle-changing preferences
  • The rise of the middle class
  • Smart electronic devices

 

Higher-end consumer electronics will heavily incorporate AI elements to enable seamless home consumption experiences. Wireless intelligence is expected to be a major trend in the industry, driven by high-speed wireless data networks, smart appliances, zero accidents, zero carbon footprint, and zero defects.

 

Driven by the increasing prevalence of wireless connectivity across multiple electronic devices, the Malaysian consumer electronics sub-sector is rapidly expanding. Growing R\&D investments in consumer electronics and technological advancements, coupled with the urgency of IoT technology and the rising popularity of wearable electronic devices, are fueling the growth of the Malaysian market. Seize these attractive growth opportunities in the market and start your business in Malaysia today!

 

 

Industry - Electrical Products

 

The electrical products sub-sector is an indispensable asset to the Malaysian economy and a crucial component in generating synergies across various industries and enhancing diverse business capabilities. This sub-sector encompasses the manufacturing of electrical products and renewable energy equipment, such as motors, generators, transformers, switchgear, solar panels, modules and system balancing.

Current trends in the industry have shifted toward producing innovative and higher value-added products with Industry 4.0 elements. For example, IoT embedded electrical products such as smart asset monitoring – switchgear and smart metering.

We welcome investments, particularly those producing high value-added products, with an emphasis on product quality, R\&D activities, cost efficiency, and the ability to contribute to the adoption of new technologies.

 

Solar Ecosystem

Malaysia currently boasts a near-complete solar ecosystem, comprising around 250 companies – upstream including the production of polysilicon, wafers, cells and modules, and downstream products such as inverters, system components and system integrators balancing.

 

Products in the Electrical Products Sub-Sector

  • Solar cells and modules
  • Switchboards
  • LED solid-state lighting
  • Wires and cables
  • Primary batteries and cells

 

Target Growth Areas

  • System balancing (components and equipment such as inverters, battery chargers and junction boxes)
  • Smart embedded electronic products
     

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