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Electrical and Electronics

Malaysia remains one of the key Electrical and Electronics (E&E) manufacturing countries in ASEAN, where production is led by multinational corporations (MNCs). Foreign investors continue to find Malaysia an ideal location for high value-added activities due to its strong and diversified base across multiple industries.

Malaysia’s continued competitiveness in E&E saw it record strong and sustained inflows of foreign investments in 2014. This continued investment from foreign companies even amid global economic uncertainties is noteworthy and encouraging.

In 2014, Malaysia made its way into the top 20 out of 144 countries on the World Economic Forum’s Global Competitive Index (GCI) for the first time since the current methodology was introduced in 2006.

A Note From the Minister

It is heartening to note that foreign investors continue to find Malaysia an ideal location for high value-added activities. Such investments are in line with the Government’s efforts to transform Malaysia into a high-income nation.

The E&E NKEA has entered the second phase of implementation with increased vitality, with gross exports of manufactured electronics indicating Malaysia’s increasingly stronger position in the regional and global markets.

EPP Highlights
EPP 6: Growing Wafer and Cell Producers

Malaysia is one of the largest photovoltaic (PV) producers in the world with a combined production capacity of 4,800 MW (megawatt) for wafers and cells in 2014, double the country’s capacity in 2013.

The six wafer and cell manufacturers in the country - AUO Crystal, SunEdison, Panasonic, AUO SunPower, Hanwha QCells and TS Solartech – have been joined by a seventh, Comtec Solar International (M) Sdn Bhd. A new wafer cell company with a 1,000 MW capacity, Comtec Solar commenced its trial production of about 10 MW in Kuching, Sarawak in 2014.

KEY TAKEAWAYS
To achieve the 2020 target of becoming the second-largest producer of solar cells globally with a 23 GW (gigawatt) capacity, MIDA will focus on attracting more high-quality local and international solar companies for wafer and cell manufacturing. Existing players are also expected to expand their capacity in 2015, subject to MIDA approval.

EPP 16: Development of Balance of Systems

MIDA approved a manufacturing licence for one solar PV balance of systems company this year. This was classified as one of MIDA’s high-quality projects.

KEY TAKEAWAYS
This EPP will continue engagements with identified companies and further develop the midstream and downstream segments of the solar industry. Relevant agencies such as the Sustainable Energy Development Authority of Malaysia (SEDA Malaysia), Malaysian Green Technology Corporation (MGTC), MIDA and SME Corp will also collaborate to identify additional opportunities to leverage established energy efficiency and energy access programmes for the downstream ecosystem.

These will focus on inter alia off-grid solutions as part of improving rural basic infrastructure. SEDA will work on a framework for a 20,000 residential solar rooftop programme, while MPIA will explore and propose net metering best practices for KeTTHA’s further consideration.

EPP 20: Enabling Industries Through Nanotechnology

The development and rollout of thermal management technology for LED applications is 75 per cent completed as at December 2014 and is anticipated to hit 100 per cent by Q1 2015. The development and use of the technology were delayed due to fund disbursement and negotiation issues which have been resolved.

KEY TAKEAWAYS
Nano Malaysia’s new collaborative framework, the iNanovation Platform introduced in early 2014, will help foster effective collaboration between research institutes, institutes of higher learning, Government and industry to ensure successful commercialisation.

  • 6
    Growing Wafer and Cell Producers
  • 16
    Development of Balance of Systems
  • 20
    Enabling Industries Through Nanotechnology
KPI Achievement 2014
  • Method 1 104%
  • Method 2 92%
  • Method 3 83%
Business Opportunities 2015
  1. Increasingly, global demand for E&E through its Internet of Things and nanotechnology morphs the industry into the game-changer foreseen, catalysing growth in other sectors.
  2. Massive opportunities loom for other sectors to adopt cutting-edge technologies as a result of E&E technological enhancement inherently increasing productivity.
Critical Target 2015
  1. RM6.5 billion approved investments for E&E sector
  2. 65% realisation of E&E sector investments approved since 2011
  3. 18 quality projects to be approved
  4. 20 Eco Design applications undertaken by companies/organisations utilising Eco Industrial Design Centre (EIDC) shared facilities
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