Electrical & Electronics

Electrical and Electronics

The Electrical and Electronics sector (E&E) is an important contributor to the national economy, accounting for RM37 billion in GNI (6 percent of national GNI), 522,000 jobs and 41 percent of Malaysia's total exports in 2009. The sector has spawned successful local firms and virtually every leading global firm operates here.

Nonetheless, E&E faces significant challenges in maintaining growth in the face of competition from China, Taiwan, Singapore and other Asian countries. In the last decade, E&E’s share of exports has declined. Furthermore, our focus has been on assembly, the lower value-added segment, while other countries have captured higher value-added activities in research and development, design and manufacturing.

 
List of EPPs
Electrical & Electronics
NoEPPs2020 GNI (millions)JobsLocationStatus
1.0Electrical & Electronics - EPP 1: Semiconductors: Executing a smart follower strategy for mature technology semiconductor fabrication plants3,632.226,400  
2.0Electrical & Electronics - EPP 2: Semiconductors: Developing assembly and test using advanced packaging technology1,124.261,300  
3.0Electrical & Electronics - EPP 3: Semiconductors: Developing integrated circuit design firms3,1712,000  
4.0Electrical & Electronics - EPP 4: Semiconductors: Supporting the growth of substrate manufacturers and related industries2,248.523,200  
5.0Electrical & Electronics - EPP 5: Solar: Increasing the number of silicon producers1,44620,000  
6.0Electrical & Electronics - EPP 6: Solar: Growing wafer and cell producers3,29021,000  
7.0Electrical & Electronics - EPP 7: Solar: Increasing module producers3,29014,000  
8.0Electrical & Electronics - EPP 8: Developing LED Front-end Operations2,6817,300  
9.0Electrical & Electronics - EPP 9: LED packaging and equipment1,3853,700  
10.0Electrical & Electronics - EPP 10: Creating local Solid State Lighting (SSL) champions1,1202,800  
11.0Electrical & Electronics - EPP 11: Building a test and measurement hub1,3657,468  
12.0Electrical & Electronics - EPP 12: Expanding wireless communication and Radio Frequency Identification (RFID)1,8224,348  
13.0Electrical & Electronics - EPP 13: Growing automation equipment manufacturing1261,200  
14.0Electrical & Electronics - EPP 14: Building transmission and distribution companies351426  
15.0Electrical & Electronics - EPP 15: Building an electrical home appliance manufacturing hub and international distribution network1,07817,993  
16.0Electrical & Electronics - EPP 16: Development of Balance of Systems--  
17.0Electrical & Electronics - EPP 17: Grow the Embedded Systems Industry7,30022,500  
18.0Electrical & Electronics - EPP 18: Enabling Electric Vehicle Component4,965.314,568  
19.0Electrical & Electronics - EPP 19: Supporting Regional Rail MRO Services592.1200  
20.0Electrical & Electronics - EPP 20: Enabling Electrical & Electronic Industries Through Nanotechnology1,247.9798  

Business Opportunities

Four of the sectors – semiconductor, solar, LED and Industrial Electronics– will also result in spillover business opportunities.

Business Opportunity 1: Semiconductors

A study of Silterra estimated that each dollar of operating expenditure spent by the semiconductor manufacturers generates about ffty cents of revenue for the supporting ecosystem, e.g. service providers to the semiconductor manufacturers, ranging from suppliers of specialty gases to equipment part cleaners. To provide a complete picture of the full benefts of building the semiconductor industry in Malaysia, we include these spinoff business opportunities in our GNI impact estimates. Spinoff business opportunities will provide incremental GNI of RM3.2 billion and create 25,000 jobs. The cumulative funding required from 2010 to 2020 is RM2.5 billion private.

Business Opportunity 2: Solar

Business opportunities in solar are based on estimates that between 15 and 20 percent of operating expenses from the solar EPP are spent on supporting industries, such as process equipment, sand mining, glass, aluminium, silane gas and wire saws. We would also work with multinational companies such as Applied Materials (equipment manufacturer) to transfer technologies to SMEs or to develop local supplier programmes. An additional RM8 billion GNI and 11,500 jobs will be created on goods and services from supporting industries. The cumulative funding required from 2010 to 2020 is RM5.8 billion in private investment and RM0.7 billion in public investment.

Business Opportunity 3: Light Emitting Diodes

Business opportunities in industrial electronics will concentrate on strengthening the supply chain and the Original Design Manufacturers (ODM) in Malaysia, especially for the RFID sector. With new RFID applications planned in the future such as contactless payment and asset tracking, more local companies and shared facilities, such as frequency simulation labs, would be set up to support the growth of the sector. We estimate the GNI impact to be RM165 million and create over 200 jobs. The cumulative funding required from 2010 to 2020 is RM6.9 million in private investment; no public funding is required.

Business Opportunity 4: Industrial Electronics

Business opportunities in industrial electronics will concentrate on strengthening the supply chain and the Original Design Manufacturers (ODM) in Malaysia, especially for the RFID sector. With new RFID applications planned in the future such as contactless payment and asset tracking, more local companies and shared facilities, such as frequency simulation labs, would be set up to support the growth of the sector. We estimate the GNI impact to be RM165 million and create over 200 jobs. The cumulative funding required from 2010 to 2020 is RM6.9 million in private investment; no public funding is required.

2012/09/13
Status:
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