Malaysian Machine And Parts Manufacturing Sector Remains Strong

Malaysia’s machinery industry emerged primarily to serve its agro-based and tin mining sectors. It has since transformed from general fabrication and machining works to the assembly of higher-end machinery modules and components, including the manufacturing of heavy machinery and precision components. It currently produces a wide variety of machinery and equipment for power generation, metalworking and general industrial activities. It also supports several major industries such as semiconductor, electrical & electronics (E&E), automotive, oil & gas (O&G), aerospace, medical and food processing.

The Machinery and Equipment (M&E) industry is Malaysia’s 7th largest export sector, contributing USD9.41 billion or 4% share of total exports in 2020. The top 10 destinations include Singapore, the USA, China, Indonesia, Vietnam, Thailand, Japan, Australia, Germany, and Taiwan.

Malaysia’s M&E capabilities are mainly in four subsectors Specialised process machinery or equipment for specific industries, Power generating machinery and equipment, General industrial machinery & equipment, components and parts, and Metalworking machinery.

Malaysia is also renowned for the production of semiconductor equipment and is currently the 10th largest such manufacturer in the world. 

E&E makes up the largest sector and has helped position Malaysia as a production base for the world’s top electronics companies, benefitting from the proximity to clients for end-to-end manufacturing and after-sales services. 

Multinational companies (MNCs) based in Malaysia also manufacture semiconductor equipment, making Malaysia well-positioned to be a semiconductor equipment manufacturing hub in the region.

Malaysia also produces generating sets for power plants, refineries, exploration platforms, petrochemical plants, and commercial buildings. 

Malaysia’s M&E industry is highly competitive and is consistently seeking to innovate new production systems and provide integrated solutions with the most advanced technologies and automation. 

Industry 4.0 technologies are actively explored to reshape manufacturing activities through the adoption of digitalisation and technological transformation. 

Malaysia offers competitive supplies and services in M&E engineering, product design and technology development as well as business operations to these MNCs.

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