The electrical and electronic (E&E) industry is an important contributor which has earned 6.7% Malaysia’s Gross Domestic Product (GDP) in 2023.
In the same year, the E&E industry contributed as much as 47.3% of total exports of national goods worth RM575.45 billion and recorded an approved investment value of RM85.4 billion, with 56% of the total investment being approved in the manufacturing sector for the same period.
Deputy Investment, Trade and Industry (MITI) Minister Liew Chin Tong said this today in the Dewan Rakyat in his answer to a question raised by Dato’ Wira Dr. Ku Abd Rahman Ku Ismail [Kubang Pasu] on the Government’s plans, strategies and measures for the development of the northern region of Peninsular Malaysia such as Kulim (Kedah), Penang and North Perak as an electrical ‘cluster’ and electronics hub for Malaysia and the world.
This is considering Malaysia being the 6th largest exporter of semiconductors in the world.
Currently, Malaysia has succeeded in creating an industrial ecosystem within the comprehensive E&E sector including for the semiconductor industry covering almost the entire supply chain. Since 1972 onwards, the E&E industry has grown rapidly in the northern region especially in the state of Penang which is also known as the East Silicon Valley because of its focus on the E&E industry, and is part of an important chain of production for the global E&E industry especially for semiconductor products.
Liew said, the New Industrial Master Plan (NIMP) 2030 emphasises the importance of the principle of inclusivity in business ensuring balanced development in all states, that is with empower existing industrial clusters that can create positive spillover effects to neighbouring states.
In line with this principle, Prime Minister Datuk Seri Anwar Ibrahim, in the presentation of the Budget 2024 on October 13, 2023 announced the proposed development of the Kerian district (Perak) high-tech industrial area in as the Government’s effort to develop the northern region of Peninsular Malaysia.
The proposed development of Kerian Integrated Green Industrial Park (KIGIP) is to cover the effects of economic spillover, as for example, from the Kulim Hi-Tech Park – KHTP and support the wider ecosystem for E&E clusters which at this point is mostly concentrated in the northern region, especially in Industrial Areas in Bayan Lepas and Batu Kawan in Pulau Pinang and KHTP in Kedah.
This KIGIP implementation effort is led jointly between MITI, MIDA and the Perak State Government.
On February 16, 2024, the Prime Minister also inaugurated the ground breaking ceremony of Batu Kawan Industrial Park 3 (BKIP3). This development shows the Government’s efforts to provide more high quality industrial parks to accommodate the influx of foreign investment and the demand for local investment, especially in high-tech industries such as E&E in the northern region.
Additionally, the National Semiconductor Strategic Task Force (National Semiconductor Strategic Task Force – NSSTF) has established through the National Investment Council Meeting on January 9, 2024 to transform the E&E industry in Malaysia. By membership of various Ministries, Agencies and industry players, this task force focuses and drives improvement to three (3) aspects namely incentives, talent and the ecosystem of the E&E industry.
Higher education institutions such as Universiti Malaysia Perlis (UniMAP) and Universiti Sains Malaysia (USM) also play an important role in the development of “industry-ready” talent for the E&E industry in northern region.
The government always commits to attract investment quality and high impact in line with the desire to make Malaysia is the preferred destination for investors in the region.
