New initiatives expected to shift the focus of the Malaysian E&E industry towards high income activities
KUALA LUMPUR (Tuesday, 28 March) – The Ministry of International Trade and Industry (MITI) and the Ministry of Science, Technology and Innovation (MOSTI) announced at a press conference today the Electrical and Electronic 2.0 (E&E 2.0) – the next phase of the Electrical and Electronic (E&E) National Key Economic Area (NKEA) strategy under the Economic Transformation Programme (ETP)’s.
Initially launched in October 2010 as part of the ETP Roadmap, E&E 2.0 has since added five new Entry Point Projects in addition to the 15 existing EPPs currently being implemented, according to Deputy Minister of Science, Technology and Innovation, YB Datuk Haji Fadillah Yusof.
“These five new projects include the development of the balance of systems cluster to complement photovoltaic (PV) cell & module manufacturing, growing the embedded systems industry, enabling electric vehicle component manufacturing, supporting regional rail maintenance and enabling industries through nanotechnology,” he said.
E&E 2.0 reflects the next stage of evolution of the E&E industry in Malaysia, Minister of International Trade and Industry Dato’ Sri Mustapa Mohamed told reporters at the event.
“It addresses the challenge for Malaysia to move further up into high value added activities, some of which go beyond our traditional manufacturing strengths. This is a logical next step for the E&E industry after having been involved for many years in the assembly and testing segment.”
“The initiative aims to leverage upon new trends and opportunities in the E&E industry that have emerged since 2010, when the roadmap for the E&E NKEA was first formulated under Malaysia’s economic transformation effort,” he said.
“The initiative aims to leverage upon new trends and opportunities in the E&E industry that have emerged since 2010, when the roadmap for the E&E NKEA was first formulated under Malaysia’s economic transformation effort,” he said.
Explaining the rationale for the new roadmap, Mustapa noted that over the last three years, there have been shifts in demand in the E&E industry accelerated by technological advancement in areas like photovoltaic (PV) technology and electric vehicles (EVs).
On PV technology, the lab noted that the prospects remain bright, he said.
On PV technology, the lab noted that the prospects remain bright, he said.
“The PV technology industry which has undergone consolidation and realignment as a result of market factors which has also caused the price of products to decline would be able to capitalise onrising demand from Asian and Middle Eastern markets seeking to harness solar energy in their quest for energy efficiency,” Mustapa added.
Electric vehicles offer the local E&E sector many opportunities, especially in battery manufacturing, he added.
“Currently, the cost of batteries used to power an EV can exceed 50% of the sale price. According to McKinsey, advancements in lithium ion batteries will reduce the price of these batteries by up to 80% by 2025 thus making EV’s a very attractive proposition,” he told reporters.
On railway services, Mustapa added that the lab noted that Malaysia currently has the potential to provide E&E maintenance, repair and overhaul services to more than 1,000 train sets within the ASEAN region.
On railway services, Mustapa added that the lab noted that Malaysia currently has the potential to provide E&E maintenance, repair and overhaul services to more than 1,000 train sets within the ASEAN region.
“With the strong growth in the ASEAN rail market, especially from rolling stock in E&E parts and system, coupled with local demand for electrical trains moving forward (i.e.: LRT expansion, MRT development and electric train commuter revitalisation), Malaysia must to position itself as a regional MRO services provider,” he said.
Fadillah emphasised that, “The roadmap is an evolving and dynamic document, it is important that we are responsive to the changing industry environment. This is the foundation for E&E 2.0,”
“Our focus on our true north target as originally outlined in the 2010 roadmap is maintained i.e. RM53.4b in incremental GNI and 157,000 additional jobs,”
“Our focus on our true north target as originally outlined in the 2010 roadmap is maintained i.e. RM53.4b in incremental GNI and 157,000 additional jobs,”
