Amanda Siddharta
Research expert covering Malaysia
Electrical and electronics (E&E) industry in Malaysia - statistics & facts
The most advanced technological devices rely on humble electronic components, from circuit boards to semiconductors. Given the importance of electrical products as well as consumer electronics in an increasingly digital world, it is not a surprise that the electrical and electronics (E&E) industry in Malaysia is a significant contributor to the country’s economy. The E&E industry contributed to around 4.9 percent of Malaysia’s gross domestic product (GDP) in 2023 and is the largest sector in the manufacturing industry.
Although not as significant as electrical products, Malaysia also saw more numbers of consumer electronics, like television sets, being manufactured. The sales value of the E&E industry increased more than twofold in six years from 2017 to 2023. Growth in the industry also triggered a gradual increase in the E&E industry's annual employment, and it seemed to be one of the very few industries that had a steady number of employees during the COVID-19 pandemic.
Moreover, with the New Industrial Master Plan (NIMP) 2030, the Malaysian government has identified the E&E industry as one of the high-growth, high-value industries and will focus on its further development in the coming years. With the current progress of the industry, there is no doubt that Malaysia could play a bigger role in the global supply chain as one of the leading manufacturers of electrical and electronic products.
Increased E&E production
The increase in the production volume of several electronics components as well as consumer electronics shows Malaysia’s E&E industry is a thriving sector. There was an increase of nearly three billion units of semiconductors produced in Malaysia from 2022 to 2023. Meanwhile, the country’s production of integrated circuits reached a record of 55 billion units in 2022, the highest in the last decade.Although not as significant as electrical products, Malaysia also saw more numbers of consumer electronics, like television sets, being manufactured. The sales value of the E&E industry increased more than twofold in six years from 2017 to 2023. Growth in the industry also triggered a gradual increase in the E&E industry's annual employment, and it seemed to be one of the very few industries that had a steady number of employees during the COVID-19 pandemic.
Opportunities in the chip shortage
The pandemic drove demand for electronic and medical devices, which prompted a global semiconductor or chip shortage since the beginning of 2020. This has become an opportunity for the Malaysian E&E industry, as reflected by the significant increase in the annual export value of electrical and electronic products. Malaysia’s key export destinations include China, the U.S., Singapore, Hong Kong, and Japan.Moreover, with the New Industrial Master Plan (NIMP) 2030, the Malaysian government has identified the E&E industry as one of the high-growth, high-value industries and will focus on its further development in the coming years. With the current progress of the industry, there is no doubt that Malaysia could play a bigger role in the global supply chain as one of the leading manufacturers of electrical and electronic products.
