E&E Manufacturing Sector Driving Malaysian Economy

Source: The Star, 22/4/2015

The manufacturing sector will remain the key driver of the Malaysian economy with exports of electrical and electronics (E and E) products expected to increase five per cent this year.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the moderate projection is in line with the current global economic climate. He said despite the uncertainty in the global economic environment, the Malaysian economy had demonstrated deep resilience, underpinned by comfortable levels of reserves, low external debt, low unemployment and healthy inflows of foreign direct investments.

"Last year, we managed to achieve a 38 per cent increase in the manufacturing sector with approved investments of RM71.9 billion. The E and E industry was the top contributor at RM11.1 billion," he told reporters after officiating the Semicon Southeast Asia 2015 here today.

He said the trend attests to Malaysia's success in attracting high-technology, skills-intensive and high value added activities, as well as the country's attractiveness as an investment destination.

"E and E exports will certainly benefit from higher demand from the advanced economies, while exports of the non-E and E sector will be sustained by regional demand for resource-based products," Mustapa added.

He also expects much reinvestments from multinational manufacturing companies with a presence here, following the government's support and conducive environment of doing business.

He added that Malaysia's export performance across most product categories is also expected to pick up in 2015. However, Mustapa said the government will continue to address concerns over human capital, by engaging with Talent Corp Malaysia Bhd to attract more Malaysians to work here.

"We will address the issue by offering incentives to encourage companies to support the training in universities to produce more engineers.

"Hence, the Malaysian Investment Development Authority and the Ministry of Education is collaborating with Talent Corp to establish the industry Academia Collaboration programmes, as a platform to motivate, encourage collaboration among academia, industry and government entities," he added.

Last year, 96 projects with investments worth RM11.1 billion were approved compared to 118 projects worth RM9.8 billion the previous year.

Foreign investments dominated the E and E sector with investments of RM10.42 billion, while domestic investments stood at RM724 million. - Bernama

Source: The Star, 22/4/2015

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