12th Malaysia Plan: E&E to contribute RM120b to GDP by 2025 Increasing Job Demand
Top Electrical & Electronic Engineering Course in Malaysia
The Electrical & Electronics Industry will Contribute RM120 Billion to GDP by 2025 in 12MP
- The E&E industry has been Malaysia’s largest export earners for decades
- Nearly 560,000 job opportunities have been created in Malaysia’s Electrical & Electronics industry
- Shortage of qualified Electrical & Electronic Engineers in Malaysia
The electrical and electronics (E&E) industry is targeted to contribute RM120 billion to gross domestic products (GDP) and generate RM495 billion in export earnings by 2025.
Under the 12th Malaysia Plan (12MP), the E&E industry players will be encouraged to adopt advanced technologies and produce more sophisticated products, resulting in higher productivity and growth.
According to the 12MP Document released by the Economic Planning Unit (EPU) today, the E&E industry needs to be repositioned by boosting investments in high-value activities such as design and development (D&D) and front-end manufacturing.
In this regards, efforts will be focused on:
- strengthening manufacturing ecosystems
- promoting new technology adoption
- uplifting the development of talent
- enhancing research and development (R&D) and D&D activities
To strengthen the E&E industry ecosystem for higher value chain, the Economic Planning Unit (EPU) said a comprehensive ecosystem based on a more systematic approach is important to ensure the sustainable development of the industry.
In this regard, it said a national E&E roadmap will be formulated to provide strategic direction for the industry, with key subsectors comprising, among others, semiconductors, solar photovoltaic, light-emitting devices, electronics manufacturing devices, and manufacturing-related services.
In light of the expansion and growth of Malaysia’s E&E industry, there is a need for well-trained graduates in the Electrical & Electronic Engineering field. Students who are interested in Physics and Mathematics, may consider to pursue a secure and high-income career in E&E.
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12MP: E&E to contribute RM120b to GDP by 2025 therefore Providing Many Job Opportunities
Global EE&E Outlook
Despite the outbreak of Covid-19, the global electrical and electronics market is estimated to be $3055.3 billion in 2020. It is projected to grow at a CAGR of 7% from 2021 and reach $3699 billion in 2023.
Malaysia E&E Outlook
Surprisingly, the E&E industry has been Malaysia’s largest export earners for decades. In 2019, the industry contributed RM372.67 billion in terms of export value, representing 44.7% of all manufactured goods exported.
It also accounted for a remarkable 6.3% of Malaysia’s GDP in 2019, producing components such as semiconductors for mobile devices, automotive and computer parts. While Penang has the most E&E companies, there are also big players in Kedah, Selangor, Melaka, and Johor.
- In 2020, the EPU said the E&E industry contributed 64 per cent to the GDP valued at RM86.1 billion, while from 2016 to 2020, the industry grew 5.6 per cent per annum, slightly higher than the manufacturing sector growth of 3.3 per cent per annum.
- “In addition, the E&E subsector dominated the country’s exports with total exports share accounting for 45.6 per cent or RM386.1 billion in 2020. A total of 577 E&E projects with investments of RM71.4 billion were approved between 2016 and 2020,” it added.
Nearly 560,000 job opportunities have been created in the industry.
Penang Contributes about 8% of Malaysia’s Global Back-end Semiconductor Output
Eugene Ong, Electrical & Electronic Engineering Graduate
According to SEMI, a global industry association representing the electronics manufacturing and design supply chain, Penang itself contributes approximately 8% of (Malaysia’s total 13%) the global back-end semiconductor output.
The state is one of the most significant microelectronics assembly, packaging, and testing hubs in the world. This has successfully positioned Malaysia in the global supply chain of electronic manufacturing services, outsourced semiconductor assembly and testing (OSAT) as well as in research, design, and development.
Malaysia’s move into Industry Revolution 4.0 as well as the Internet of Things (IoT) technology is made possible by the existence of its established (E&E) sector. In short, our rapid industrialisation and high ranking among the top group of trading nations globally were mainly contributed by this industry.
The E&E industry in Malaysia today is generally labour-intensive. Most of the local E&E companies listed on Bursa Malaysia are involved in the mid to lower end of the value chain, serving foreign semiconductor manufacturers, brand owners, integrated circuit (IC) developers and fabricators. Malaysia E&E industry has minimal participation in the higher value-added activities such as generating intellectual property (IP), design and development (D&D).
Malaysia’s E&E Industry will move towards Higher Value Activities Facilitating the Need for Well-Trained Engineers
Chong Keat, Electrical & Electronic Engineering at Heriot-Watt University Malaysia
According to the EPU, efforts will also be undertaken to move the E&E industry towards higher-value activities across the supply chain with greater automation and advanced technology utilisation.
Meanwhile, it said multinational companies (MNCs) will be encouraged to facilitate the enhancement of local micro, small and medium enterprise (MSME) capabilities, of which, the implementation of the Lighthouse Project, introduced in 2020, will be intensified to encourage MNCs to assist MSMEs in embracing digitalisation and Globalisation 4.0.
In uplifting the development of talent and capability for the industry, the EPU said various micro credential programmes will be expanded based on the Triple Helix model, where additional skills sets, including software coding and data analytics modelling, will be provided by various training institutions to meet market demand.
It said several initiatives will be implemented to develop talent in the industry in line with the National Fourth Industrial Revolution (4IR) Policy, including creating an industry-led 4IR skills development centres, incentivising industry to reskill and upskill employees in 4IR, and establishing an artificial intelligence-enabled data platform to facilitate manpower planning.
“To accelerate the development of the high-end manufacturing inddustry, employees will be upskilled and reskilled in the field of designing. A dedicated centre will be identified to train highly-skilled design engineers to meet industry demand,” it said.
Talent shortage and mismatch in Malaysia’s E&E Industry
Jun Chung, Diploma in Electrical & Electronic Engineering at Asia Pacific University
The talent shortage starts with university graduates. Nowadays, university students prefer software design to hardware design as they can see results faster. Unfortunately, there is a shortage of design talent around the world, let alone Malaysia.
There is also a mismatch of skills and competencies to industry needs. Malaysia has insufficient qualified and experienced technical workers to participate in higher-value activities, partly due to the low demand for masters and PhD holders.
This trend has discouraged university graduates to pursue postgraduate studies as most of the job requirements are not knowledge-intensive.
In the long run, local engineers could not progress in their careers without specialist technical knowledge ad skills, hampering Malaysia’s ability to climb up the E&E value chain.
Shortage of E&E Engineers According to Critical Occupations List 2019/2020
The Critical Occupations List (COL) shows occupations that are skilled, sought-after, and strategic across 18 sectors in Malaysia. The following job titles within the engineering field are said to be high in need.
Electrical Engineer
The following job titles within this occupation are included:
• Electrical Engineer; Electrical Systems Engineer; Electrical Testing Engineer; Electrical Engineer (High Voltage); Electrical Engineer (Electric Power Distribution); Electrical Engineer (Electric Power Transmission); Electrical Engineer (Electromechanical Equipment); Embedded System/ Firmware Engineer; IC Design Engineer; RF Electrical Engineer; R&D Electrical Engineer (includes Product Design); R&D Electrical Design Engineer; Electrical Superintendent (HT 33KV)
Electronic Engineer
The following job titles within this occupation are included:
• Electronics Engineer; Computer Engineer (Software); Pre-Silicon Validation Engineer; Wirebond Engineer; Industrial Electronic Engineer; Test/Measurement Engineer (Electronic); R&D Electronic Engineer (includes Product Design); Electronic Component Design Engineer; Electronic Structural Designer; Register transfer Level (RTL) Designer
Telecommunications Engineer
The following job titles within this occupation are included:
• Telecommunications Engineer; Telecommunications Engineer (Aerospace); Telecommunications Engineer (Telephone); Network Architect/ Designer/Planner/ Tester; Radio Optimisation and Capacity Engineer; Network Implementation and Construction Engineer; Network and System Engineer; Telecommunications Consultant; Sound Systems Engineer; Audio Designer; Acoustic Engineer
