Job Demand & Salary for Electrical & Electronic (E&E) Engineers in Malaysia

Find Out About the Electronics and Electrical Sector (E&E) in Malaysia and the Job Demand & Salary

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In the 1970s, In the 1970s, the ‘Eight Samurai’ (National Semiconductor, Intel, Advanced Micro Devices (AMD), OSRAM, Hewlett Packard, Bosch, Hitachi and Clarion) began operations at the Bayan Lepas Industrial Park in Penang.

Since then, some 300 multinational corporations (MNCs) have started offices in Malaysia, creating an electronics and electrical (E&E) hub that has been likened to the Silicon Valley in the United States.

The Malaysian Electronics and Electrical sector (E&E) is an important contributor to the economy. In 2019 alone, it accounted for 6 percent of Malaysia’s gross national income (GNI), 575,000 jobs — representing more than 40% of total manufacturing labour — and 41 percent of Malaysia’s total exports. The electrical and electronics (E&E) industry is the largest single contributor to the manufacturing sector, accounting for 26.1% of total manufacturing output (Source: EPU, Pemandu).

The double-digit growth in the exports of electrical and electronic products (E&E) will likely continue in March 2021 and the remaining months of 2021, following improving outlook for external environment post-Covid.

Deputy International Trade and Industry Minister Datuk Lim Ban Hong said the E&E exports grew by 13.1% in January 2021 and the expansion continued in February 2021 with 24.4% growth registered.

He said demand for E&E is expected to remain higher, in view of strong growth projection in the global product sales and revenue for 2021, with information technology infrastructure (6.2%), smartphone (11.4%) and cloud computing (18.4%).

“The strong global demand for E&E products will support the growth of our local E&E productions and exports because six out of 12 world’s largest semiconductor companies and three out of nine largest LED companies are operating in Malaysia,”

Malaysia’s world-class electronics industry is the top sectorial employer and exporter within the manufacturing sector. The E&E industry is also Malaysia’s most liberalised sector. The electrical and electronics (E&E) industry produces and sells electronic equipment for industries and electronics products for consumers such as televisions, mobile devices and printed circuit boards. The industry includes telecommunications, electronic components, appliances, industrial electronics and consumer electronics. Electronics companies may produce electrical equipment, manufacture electrical components and sell items at retail to make their products available for consumers.

Malaysian students wanting to pursue a career in engineering should consider taking up electrical & electronic engineering due to its immense contribution to Malaysia’s economy and future growth, long-standing history with lots of SME’s, large local companies (LLCs) and multinational corporations (MNCs) offering lots of job opportunities.

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Malaysian Electronics and Electrical sector (E&E) Industry Outlook & Job Demand

Global E&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.

The Electrical and Electronics Manufacturing Global Market Report 2018 revealed that the largest segment in the E&E manufacturing market worldwide was electrical equipment manufacturing, which had a market share of 55%.

This was due to the high sales volume and value of items manufactured, including switchboards, transformers, switchgears and other electrical equipment.

The second largest segment was electronic products manufacturing, with a market share of 31%.

Malaysia E&E Industry Outlook

Despite 2020 being a challenging year due to impact of the Covid-19 pandemic, Malaysia recorded total trade in E&E products worth RM638.9 billion, where exports rose 3.5% to RM386.1 billion while imports rose to RM252.8 billion.

Major trading partners for E&E products were China, Singapore, the US, Hong Kong, and Taiwan.

In terms of productivity, the E&E subsector recorded 4.5% productivity growth in 2020, the highest among the nine priority subsectors.

Approved investments for the E&E sector in 2020 totalled 148 projects and were valued at RM15.6 billion, whereby these projects are expected to create 19,541 jobs.

Lim said foreign entities accounted for the bulk of the total investments at RM13.5 billion (86.5%), while domestic investments brought in RM2.1 billion (13.5%).

Notwithstanding, he said the confidence of foreign investors in pursuing investment opportunities in Malaysia, with existing E&E companies continuing to expand and diversify their operations, is a testimony of their continued trust in the country’s investment environment.

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. Nearly 560,000 job opportunities have been created in the industry.

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.

Malaysia’s Electrical & Electronic (E&E) Workforce

E&E industry employs about 700,000 people of whom 30 to 40 percent are engineers and managers. Meanwhile, foreign direct investments (FDIs) continue to grow while Design & Development (D&D) and business process operations/services have also grown significantly. Around 12,500 are skilled engineers, 3,500 are Masters graduates and 191 PhD holders. 7500 are involved in R&D.

Ministry of Finance (MoF) – E&E Industry to Create 20,000 Jobs

Ministry of Finance (MoF) pointed out the E&E sector enables critical infrastructure globally, such as healthcare and medical devices, water systems and energy grids, as well as transportation and telecommunication networks.

The MoF said the E&E components produced in Malaysia have also facilitated e-commerce and remote working in the new norm.

“Malaysia is also a key player in the E&E global value chain. The E&E sector represents 40% (or RM386bil) of Malaysia’s annual exports, and approximately7% of global semiconductor trade, ” it said.

The MoF said Malaysia is critical as the sole production site for aluminium substrate for all hard drives being produced by a factory in Johor, for onward feeding into the company’s global supply chain.

“Additionally, in 2020, about RM15bil of fresh investments in the E&E sector had been approved, set to create 20,000 more jobs for Malaysians.

E&E Talent shortage and mismatch in Malaysia

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.

The Institution of Engineers Malaysia (IEM) president David Lai Kong Phooi said the engineer to population ratio for developed nations is 1:100. For Malaysia with a population of 32 million, the number of engineers should be 300,000.

Based on the Education Ministry’s statistics from 1997 to 2017, the average number of engineers produced per year by local institutions of higher learning – excluding graduates from foreign universities – is about 16,000. The cumulative total of all engineers produced from 1997 to 2017 is estimated to be about 341,109.

It may appear that the number of engineers produced are sufficient for Malaysia, but there are only 128,000 professional and graduate engineers registered with the Board of Engineers Malaysia (BEM).

While the number of varsity-trained engineers has been very encouraging in terms of meeting the country’s target, we’re still facing a shortage of engineers – perhaps not in terms of actual numbers, but in terms of employability, and retention of talents, within the engineering sector and with Malaysian companies, said Lai.

Based on Talent Corp’s Critical Occupation List, he said the highest demand for engineers are in the civil, mechanical, electrical, and chemical disciplines.

Lai said there are many reasons why engineers turn to other jobs. For some, it could be a lack of interest in the field or for career advancement.

“The entry level remuneration of engineers is among the highest compared to graduates from other fields.

It’s easy for engineers to switch careers at a later stage of their careers because they’re very analytical and easy to train. If they want to go into consultancy, planning, finance, or investment, they can pick it up with some training. But the reverse is not true. Non-engineers will find it hard to switch to this profession.

English is an Important Skills for E&E Graduates

Soft skills, he said, is very important especially in an MNC.

“Expect daily meetings to discuss projects with your counterparts from countries like the US. If you cannot express yourself, how are they going to understand you? You’ll slow the meeting down and waste everyone’s time,” he said, adding that all the literature, and instructions on technology, are in English.

Those who are weak in the language will take a longer time to read. This results in lower productivity.

“You can’t keep checking the dictionary or asking your colleagues.”

Salary for Electrical & Electronic Engineers in Malaysia

He said junior engineers could earn between RM2,500 and RM3,500 depending on their location and qualification. High performers can expect promotions, a yearly pay raise of between 10% and 20%, and travel opportunities.

Today, the E&E sector employs nearly a quarter of Malaysia’s 2.5 million-strong manufacturing workforce.

The E&E and optical subsector is also the largest employer in the manufacturing sector, hiring approximately 562,000 workers of the 2.5 million manufacturing workforce in 2018. The average wages paid out to the E&E sector is one of the highest among the manufacturing subsectors and significantly higher than the average wages paid out in the service sector.

The average wages paid out per employee in the E&E subsector is RM46,451 in 2018 which places it second after the Petroleum, Chemicals and Plastics subsector with average wages paid out at RM52,248.

Talents in the manufacturing and operations sector, according to the Department of Statistics in Malaysia (DOSM), have also stood to gain in these favourable conditions, having experienced an overall wage growth of ten per cent. To add, the overall number of individuals working in the sector had increased by two per cent over the last year.

With businesses looking to expand in the coming months, manufacturing and operations employers will be all the more active in their recruitment efforts. However, the extremely talent short market in this sector may pose as a challenge especially within niche specialisms directly required to drive business growth.

One of the main reasons driving productivity and wage growth in the E&E sector is investments in technology and equipment. This sector, more than any other sector in the country, is at the forefront of Industry 4.0 adoption including big data analytics, internet of things (IoT) and systems integration.

Need for E&E Graduates to Focus on Hardware Design

Oppstar chief technology officer Cheah Hun Wah says design is the heart of an ecosystem. Unfortunately, there is a shortage of talent in hardware design around the world. Last year, China alone needed tens of thousands of IC designers.

“We notice that engineering students nowadays prefer software design to hardware design because they can see the results faster. You programme it and you can see it whereas hardware design takes a lot longer. We should encourage more youngsters to pick up hardware design,” says Cheah.

Opportunities for Malaysia’s E&E Talent to grow in Malaysia and then go global

Malaysian talents can find opportunities for growth in a growing Electrical and Electronics (E&E) industry which also has an impressive record of producing about a third of Malaysia’s exports by value.

As the industry continues to grow and go global, we have seen a marked increase in demand for design and development, hardware and software engineers as well as professionals in the shared services sector – all to meet international demand for top talent. This has opened up a lot of opportunities for new Malaysian talents to gain global exposure from the beginning of their career.

In Malaysia, graduates and executives are able to develop through the ranks quicker and gain a lot more exposure globally. The E&E industry’s strong business partnerships mean that from an early starting point of their career, these young professionals get to work on global projects and go through upskilling programmes, thus allowing them to build their résumés while gaining international workplace experience, right here in Malaysia.

E&E Industry is a Top Contributor to Malaysia’s Economy

Malaysia’s E&E industry has been a significant contributor to the nation’s economy, having been identified in the 11MP as one of the ‘3+2’ catalytic sectors.

In 2017, the industry attracted the greatest amount of foreign investments (RM8.2 billion, or 84.5% of all investments in the industry), mostly from Singapore, the Netherlands, Japan, and Germany.

Its success was further evidenced by being the country’s largest export earner in 2017, totalling RM343 billion and accounting for 36.7 per cent of the total value of exports. Singapore, China, Hong Kong, Japan, the Netherlands, Germany and the USA were among the markets which registered significant increase in exports of E&E products.

The E&E sector’s contribution to the overall health of the country’s economy goes far beyond its 5.4 percent share of gross domestic product in 2018 (RM78 billion out of a RM1.4 trillion economy).

It is BY FAR, the largest driver of exports in Malaysia. 38.1 percent of the almost RM1 trillion in exports in 2018 came from the E&E sector. Manufactured petroleum products came in at a distant second with 7.7 percent of total exports in 2018.

It is also a disproportionate contributor to the nation’s trade surplus. Out of the RM120.5 billion trade surplus enjoyed by Malaysia in 2018, 99 percent or RM119.2 billion was generated by the E&E sector.

Without the contribution of the E&E sector, Malaysia would have experienced the “twin deficit” phenomenon – a budget, as well as a trade deficit and this, would likely have affected foreign investor confidence.

Many would be surprised to learn that Malaysia’s largest export to China is not palm oil or agriculture or petroleum products but products from the E&E sector. This is also one of the few sectors where Malaysia enjoys a trade surplus vis-à-vis China.

Malaysia stands as the seventh largest E&E exporter in the world today. As a gateway to trade, the E&E industry continues to be a key driver of industrial development and contributes significantly to GDP growth, export earnings, investment and employment. In short, Malaysia’s rapid industrialisation and high ranking among the top group of trading nations in the world were mainly contributed by this industry.

The E&E industry remains the leading segment in the manufacturing sector which produces semiconductors, electronic equipment for industries and electronic products for customers worldwide.

The MNCs kept pace by reinvesting in the state-of-the-art technology, and made the manufacturing and its processes much more productive, with added automation and computing power. Hence, the manufacturing processes deal with the intricacies of the high-end technology from micro to nano, and the testing of such complex products.

History of Malaysia’s E&E Industry Growth

This industry started in 1972 from labour-intensive semiconductor assembly to test manufacturing and diversified into storage, LEDs, solar, contract manufacturing, medical devices, industrial electronics, avionics, front-end fab as well as design and developments, especially in both integrated circuits (ICs) and embedded system designs.

As the E&E industry grow and diversify, it has also developed clusters of SMEs and large local companies in precision machining, equipment development and assembly, and automation. Many of such companies are doing business globally and many are also listed on Bursa Malaysia. Thanks to the Industrial Trade and Industry Ministry and Malaysian Investment Development Authority for their positive roles and efforts.

Penang, for instance, is testimony of global recognition as one of the top 10 dynamic industrial cluster locations in the world, thanks to its strong and efficient supply chain with world-class capabilities and proven track record.

Not only was there a network of over 3,000 well diversified and competent local suppliers, but soon came along to local electronic manufacturing service companies which are into wafer processing, package assembly, RF final testing, design and manufacture of equipment and devices for the semiconductor and electronics packaging industries.

E&E Future Growth

The E&E industry in Malaysia, particularly the semiconductor ecosystem, has critical cross-industry linkages and applications, including new growth in telecommunication and medical devices, as well as Internet-capable industrial technologies and mobile electronic systems, such as the Internet of Things (IoT), Virtual or Augmented Reality (VR/AR), automotive electronics, wearable electronics, and personal computing. Semiconductors will continue to spearhead the growth of the industry on the back of demand in the usage of mobile devices, storage devices, opto-electronics, embedded technology, data analytics, artificial intelligence and 5G.

Furthermore, the introduction of mid-range smartphones, IoT devices and the adoption of electronic functions in the automotive industry should drive demand for semiconductors, integrated circuits and printed circuit board assembly (PCBA) products, popularly also known as electronic motherboards.

Besides developing their capabilities in areas such as R&D and business development, they also need to move across all industrial segments that use E&E components such as automation, industrial electronics, semiconductors, electronics manufacturing services, storage, light emitting diode, solar and IoT.

An exciting new area in the E&E sector is the use of flexible hybrid electronics (FHE), which underlies several new industrial technologies and wearable electronics. FHE makes it possible to produce lightweight, low cost, flexible, stretchable, and efficient smart products with a variety of applications. These include health-monitoring wearables and rugged sensors.

MIDA is ramping up efforts in developing the ecosystem to cater to the growing needs of the E&E industry in embracing Industry 4.0. These include investments in core focus areas such as FHE materials scale-up, thinned device processing, device/sensor integrated printing and packaging, system design tools, and reliability testing and modelling.

Global mega trends will both impact, and be impacted by, the E&E industry. Such trends include Industry 4.0; pervasive robotics and automation in manufacturing facilities, logistics and warehousing, and the increasing adoption of intelligent home and building technologies; a move towards modernising ‘lean’ manufacturing; and the digital lifestyle/economy.

Finally, the future of E&E will be shaped by developments in nanotechnology. With established players and a strong global presence, the E&E sector can jumpstart expansions in nanoelectronics and nanophotonics etc.

Skills in Demand

Manufacturing and operations are key functions across an array of industries in Malaysia, with Automotive, Electrical and Electronics (E&E) Products and Petroleum, Chemical, Rubber and Plastic Products being main drivers of the country’s economic advancements. The country also has been lauded internationally for its “innovation prowess” when it comes to manufacturing medical devices.

As Malaysia takes steps to becoming a world class manufacturing hub, many businesses ––especially within FMCG, medical devices and pharmaceutical industries –– are placing a greater emphasis on R&D and product design.

Many foreign MNCs with bases in Malaysia have been expanding their design centres to improve their product offerings. As a result, there has been a swell in demand for research engineers and specialists to improve existing products and discover new and cost-efficient production methods. In addition, product design engineers are also highly required to innovatively create new product offerings while taking into consideration product lifecycles and customer needs.

Furthermore, the semiconductor sector is poised for growth; extremely favourable predictions by experts suggesting that the electrical and electronics sector in Malaysia will grow by almost ten per cent annually. The Star reports: “[AmBank Research] said Malaysia’s E&E sector has successfully positioned itself in the global supply chain of electronic manufacturing services, outsourced semiconductor assembly and testing as well as in research, design and development.”

Indeed, E&E manufacturing in the country has matured alongside industry-wide endeavours to keep pace with developments surrounding the Internet of Things (IoT) and automation. The growing demand for wearable devices and smart home applications, alongside the strong automotive industry, is resulting in a heightened need for both production and quality control experts.

Now more so than ever, manufacturing and operations candidates with multilingual fluency are highly regarded amongst employers across the industry. This is especially so for international or foreign companies which have plants within Malaysia, where the majority of the ground staff (especially within the factories) are effectively monolingual in their mother tongues such as Malay or Mandarin. Production and plant managers who are fluent in English, Malay and Mandarin make for the ideal candidates in mid-level or management roles.

Average Salary for Electrical & Electronic (E&E) Engineers in Malaysia

Unveiled in late 2018, the National Policy on Industry 4.0, or Industry4WRD, will support the Engineering sector’s efforts to ramp up reliance on technology, and less on capital and manpower, to increase productivity – with the overall objective of transforming Malaysia into a
strategic partner for smart manufacturing and high-tech industries.

Recognising the need for a future-ready and highly skilled engineering workforce to support this growth, the government intends to nearly double the number of skilled workers from 18% to 35% by 2025.

Plans have also been outlined for deeper investment in technical and vocational training as well as diploma and degree courses for students in engineering. Further, the development of a world class aerospace hub in Subang by Khazanah will lead to greater demand for highly skilled
workers to meet the demands of the aerospace industry. As such, engineering talents that possess both technical knowledge and soft skills will continue to be sought after by employers across different industries

• Randstad 2020 Market Outlook & Salary Snapshot reports that an automation / electrical & instrumentation manager with 10 – 15 years experience earns from RM12,000 – RM30,000 a month while an automation / electrical & instrumentation engineer with 2 – 6 years experience between RM3,500 – RM8,000. A design engineer – mechanical / electrical with 3 – 6 years experience earns RM4,500 – RM7,500 a month
• 2020 Hays Salary Guide Malaysia – MANUFACTURING & OPERATIONS – (Salaries are yearly in ‘000 RM)
  • ELECTRONICS
  • PRODUCTION
    • Engineer 40 – 70
    • Supervisor 70 – 120
    • Manager 180 – 240
    • Director 300 – 450
    • Vice-President 450 – 700
  • ENGINEERING
    • Engineer 40 – 70
    • Supervisor 70 – 120
    • Manager 180 – 240
    • Director 300 – 450
    • Vice-President 450 – 700
  • R&D
    • Engineer 40 – 70
    • Supervisor 70 – 120
    • Manager 180 – 240
    • Director 300 – 450
  • QUALITY
    • Engineer 40 – 70
    • Supervisor 70 – 120
    • Manager 180 – 240
    • Director 300 – 360
• Michael Page Salary Benchmark 2020 reports that an Electrical Engineer can earn from RM70,000 to RM90,000 a year in the Engineering & Manufacturing Sector. Manager level ranges from RM120,000 to RM180,000 while a Director is RM250,000 to RM300,000 a year. A Senior Engineer earns between RM84,000 to RM96,000 while a Design Engineer from RM75,000 to RM90,000
• Kelly Services 2019/2020 Salary Guide (monthly salaries (RM))
  • Engineering Manager with 8-10 years of experience will earn between RM16,000 – RM22,000
  • Lead Electrical Engineer with 8 years of experience will earn between RM10,000 – RM15,000
  • Program Manager, Electronics/Semicon with 7-8 years of experience will earn between RM8,000 – RM14,000
  • Electrical & Instrument Engineer  with 4-6 years of experience will earn between RM6,500 – RM8,000
  • Senior Design Engineer with 3-5 years of experience will earn between RM6,000 – RM8,500
  • Design Engineer with 3-4 years of experience will earn between RM3,500 – RM5,000
• Jobstreet.com 2019 Salary Report
  • Monthly Salary for Senior Managers in Engineering
  • Northern Region  Manufacturing – E&E  Average Minimum Salary is RM14,484 and Average Maximum Salary is  RM20,447
  • Northern Region  Manufacturing – SemiCon  Average Minimum Salary is RM10,593  and Average Maximum Salary is  RM14,900
  • Central Region Manufacturing – E&E Average Minimum Salary is RM6,931 and Average Maximum Salary is  RM10,421

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; Registertransfer 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