PPM018-10-23082016
Malaysia's M&E and Engineering Supporting Industries (ESI) are key drivers of economic growth, supported by innovation, automation, and strategic investments. The sector has seen robust expansion, with exports rising from RM37.7 billion in 2016 to RM57.2 billion in 2023, led by high-tech products like semiconductors and robotics. Key sub-sectors include specialized machinery for industries such as semiconductors and oil & gas, metalworking equipment, power generation machinery, and general industrial automation solutions. The ESI, with over 1,000 companies, provides critical support in moulds, precision machining, and surface engineering, serving high-tech industries like aerospace and medical devices.
The government offers attractive incentives, including tax exemptions, duty-free imports, and reinvestment allowances, to boost investments in automation and smart manufacturing. Global players like Lam Research and Bruker, alongside local champions such as Vitrox and Pentamaster, highlight Malaysia’s capabilities in advanced manufacturing. Industry 4.0 technologies, including IoT and AI, are transforming production processes, with 5G further enhancing efficiency. Malaysia’s strategic location, skilled workforce, and free trade agreements position it as a competitive hub for M&E investments in ASEAN. For investors, the country offers a pro-business environment, world-class infrastructure, and a mature supply chain ecosystem.
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