Malaysia’s Machinery and Parts sector is committed to delivering quality products and service excellence despite global trade disruptions

KUALA LUMPUR, Dec 31 (Bernama) -- Malaysia’s machinery industry emerged primarily to serve its agro-based and tin mining sectors. It has since transformed from general fabrication and machining works to the assembly of higher-end machinery modules and components, including the manufacturing of heavy machinery and precision components. It currently produces a wide variety of machinery and equipment for power generation, metalworking and general industrial activities. It also supports several major industries such as semiconductor, electrical & electronics (E&E), automotive, oil & gas (O&G), aerospace, medical and food processing.
 
The Machinery and Equipment (M&E) industry is Malaysia’s 7th largest export sector, contributing USD9.41 billion or 4% share of total exports in 2020. The top 10 destinations include Singapore, USA, China, Indonesia, Vietnam, Thailand, Japan, Australia, Germany and Taiwan.
 
Malaysia’s M&E capabilities are mainly in four subsectors:
- Specialised process machinery or equipment for specific industries;
- Power generating machinery and equipment;
- General industrial machinery & equipment, components and parts; and
- Metalworking machinery.
 
Malaysia is also renowned for the production of semiconductor equipment and is currently the 10^th largest such manufacturer in the world. E&E makes up the largest sector and has helped position Malaysia as a production base for the world’s top electronics companies, benefitting from the close proximity to clients for end-to-end manufacturing and after-sales services. Multinational companies (MNCs) based in Malaysia also manufacture semiconductor equipment, making Malaysia well-positioned to be a semiconductor equipment manufacturing hub in the region.
 
Other areas in which Malaysia’s Machinery and Parts sector excel include deep water production equipment for the O&G industry, the production of robotic automation solutions for the Food & Beverage (F&B) industry, precision moulding equipment, power generation and its equipment sub-sectors including high-grade boilers for various industries ranging from oil & gas, oleo chemicals, petrochemicals, palm oil, rubber and wood to textile, hospitals, as well as F&B.
 
Malaysia also produces generating sets for power plants, refinery, exploration platforms, petrochemical plants and commercial buildings. 

Malaysia’s M&E capabilities also cover the manufacturing of a broad category of products, general purpose M&E and related parts. These include, among others, heating & cooling equipment, factory automation, pumps, compressors, air conditioning plants, cold room equipment, elevators, cranes, conveyor systems, welding machines, pressure vessels, storage tanks, valves, gears and actuators. Malaysia is currently one of the world’s largest exporters of air conditioning equipment.

Other capabilities include manufacturing machine tools and parts for metalworking including laser-cutting machine, machining centres, Electro-Discharge Machines (EDM), milling and forging machines and presses, among many other equipment.

Malaysia’s M&E industry is highly competitive and is consistently seeking to innovate new production systems and to provide integrated solutions with the most advanced technologies and automation. Industry 4.0 technologies are actively explored to reshape manufacturing activities through the adoption of digitalisation and technological transformation. The opportunities created by this revolution have enticed many Malaysian SMEs to come up with their own innovative solutions that are marketed globally.
 
Malaysia is therefore a choice destination for MNCs to outsource their manufacturing processes and automation solutions in the ASEAN region, due mainly to the availability of highly skilled manpower in supporting industries, R&D and engineering design activities. Malaysia offers competitive supplies and services in M&E engineering, product design and technology development as well as business operations to these MNCs. 

 
Issued by Malaysia External Trade Development Corporation (MATRADE)

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SOURCE : Malaysia External Trade Development Corporation (MATRADE)

FOR MORE INFORMATION, PLEASE CONTACT:
Corporate Communications Unit, MATRADE
Tel (Direct): 03-6207 7609
Email:  communication@matrade.gov.my 

--BERNAMA