MIDA vigorously promoting knowledge-intensive design activities under E&E

Last update: 19/03/2019

KUALA LUMPUR, March 19 (Bernama) -- The Malaysian Investment Development Authority (MIDA) is aggressively promoting knowledge-intensive design activities under the electrical and electronics (E&E) industry in an effort to boost the industry going forward.

As attested in its Malaysia Investment Performance Report 2018 released recently, these activities include integrated circuits (IC) design; IC packaging design; embedded system design; and test and engineering design services for E&E clusters and its connecting supply chain ecosystem.

“These include those in the semiconductor, electronics manufacturing service, industrial system electronics, storage, light emitting diodes (LEDs), solar, automation robotics, optics photonics, Internet of things (as a basis for industry 4.0), and shared services,” MIDA said in a statement.

In 2018, the E&E industry raked in investments worth RM11.2 billion or 12.8 per cent of Malaysia’s total investments.

E&E was overwhelmingly dominated by foreign investments (RM10.7 billion or 95.8 per cent of all investments) in the industry, mostly from the Netherlands, Japan, and China.

Of the 56 projects approved last year, the vast majority were expansion/diversification projects, with investments worth RM10.3 billion, while the other 17 were new projects, with investments of RM918.2 million.

“Compared to the 109 projects that brought in RM9.7 billion in 2017, this is a clear indication that the average capital expenditure per project has more than doubled in 2018,” said MIDA.

It said the electronics components sub-sector formed by far the most significant share of investments in the E&E industry, making up 84.4 per cent of total investments.

In 2018, a total of 18 approved projects brought in investments worth RM9.4 billion, a stunning growth of over 200 per cent from 2017.

The projects approved involved the manufacturing of electronics components (examples include advanced IC packaging, LEDs, microcontroller semiconductor devices and printed circuit board assembly.

“Almost all investments into this sub-sector was the result of foreign direct investment, forming 99 per cent of total investments,” it added.

-- BERNAMA