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KUALA LUMPUR: Malaysia’s electrical and electronics (E&E) sector is projected to recover strongly from the onslaught of the pandemic, spurred by the bright growth prospects of the global semiconductor industry.

To avoid being left out, International Trade and Industry Deputy Minister Datuk Lim Ban Hong is urging local companies to reorientate and innovate their businesses.

“The Covid-19 pandemic has battered our economy and disrupted industry supply chains, including the E&E sector, particularly with the onset of the third wave of infections.

“I believe towards the end of the year and beyond, we will witness a stronger recovery of the economy and promising prospects of the semiconductor industry,” he said when officiating the virtual Malaysia Semiconductor Industry Association (MSIA) National E&E Forum 2021 yesterday.

Lim said a sustainable and long-term recovery would hinge on businesses being able to practise reorientation and innovation.

“This calls for businesses to quickly redeploy talent, launch new business models, enhance productivity, and develop more medium and long-term strategies to be prepared for the new normal.

“I believe that the synergistic efforts of the government and industry associations will facilitate greater research and development collaboration and catalyse new innovations in semiconductor technology.”

The Malaysian E&E sector has been a major contributor to the economy.

“For decades, the E&E sector has been the country’s largest export earner. It continues to be the key driver of industry development and in 2020, contributed 5.6% to gross domestic product (GDP). Today, Malaysia is the largest semiconductor trading partner of the United States.

“As a prominent player in the semiconductor supply chain, the E&E sector in 2020 contributed RM386.29bil or 39.4% to Malaysia’s annual exports, which was 3.5% higher than the previous year.To avoid being left out, International Trade and Industry Deputy Minister Datuk Lim Ban Hong is urging local companies to reorientate and innovate their businesses.

In terms of productivity, Lim noted that the E&E sector registered a 4.5% growth in 2020, the highest among the other priority sectors.

“Approved investments for the E&E sector in 2020 was at RM15.6bil for 148 E&E projects. These projects are expected to create 19,541 jobs.”

Under the 12th Malaysia Plan (12MP), the E&E sector is targetted to contribute RM120bil to GDP and generate RM495bil in export earnings by 2025.

E&E sector players will be encouraged to adopt advanced technologies and produce more sophisticated products, resulting in higher productivity and growth.

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