2. Agenda Style
The history, development, and
growth of the E&E cluster over
time
1
2
3
4
The identification of the E&E
cluster’s internal strengths and
weaknesses
The nature of the external
environment surrounding the
E&E cluster
5
Strategies
Recommendations
4. The electrical and electronics (E&E)
industry is a key driver of Malaysia's industrial
development and contributes significantly to
GDP growth, export earnings, investment and
employment.
- Consumer Electronic
- Electronic Components
- Electrical Equipments
5. Background
According to the 25th Productivity Report 2017-2018
- the E&E sector accounted for 36.7% of Malaysia’s total exports
- 44.7% of Malaysia’s manufacturing exports in 2017.
The top export destinations were:
Singapore
The United States (US)
China
Hong Kong
Japan
Germany
Mexico
India
The United Arab Emirates (UAE)
6. The dynamic in Malaysian electronic
1994 - 1995
Back end manufacturing
of accessory products
1996
1995
Front end build of accessory products
(surface mount technology transfer, skill transfer)
1997
Material procurement, stock room and storage management
(planning, buying, vendor interface, mini-bank)
Turn key management
(materials sourcing and procurement)
7. Engineering Know-how
Passes through the following steps
1997
1996
Material quality engineering (failure analysis, vendor
development, vendor process characterization)
1998
Process/reverse engineering
(internal process characterization,
root cause analysis and design of experiment,
statistical process control methods,
prototyping, pilot manufacturing)
Research and development procurement
(phone system, radio frequency technologies)
9. Challenges of The Malaysian E&E sector
● Significant improvement for critical enablers to industry players
● A talent pool that lacks quality and experience
● Local companies that find it difficult to compete globally
● Focus in assembly activities results in lower value-add
● Lack of focus in E&E capabilities across a range of sectors
10. Penang Skills Development Centre (PSDC)
PSDC is the first tripartite, industry-led skills training and education centre
in Malaysia, aimed to improve skills and business requirements for people in Malaysia.
Vision
“Be the leading centre of Excellence
for skills and talent development.”
Mission
“To proactively support the industry in the development of skilled
and talented workforce in the areas of Design and Development,
Manufacturing, and Services in a rapidly changing technology
and business environment.”
12. Strengths
• Major electronic exporters
• Top 10 countries that export electronic items (2017)
• Positive net exports for electronic circuit components
during 2017
S
W O
T
13. S
W O
T
Weaknesses
• Asymmetric industry structure
• High wages in Malaysia
when compared to ASEAN countries
• Malaysian economic growth is
expected to slow down in 2018 to 5.3%
• Lack of skills (technical, engineer, R&D,
using AI and Robotic)
• Mismatch between the demand
and supply for labor skills
● Declining capacity for
employment generation
14. The nature of
the external environment
surrounding the E&E
cluster
O/T
15. S
W O
T
Opportunities
• Increasing Malaysia's export to the US and
China
• Global trends in consumer electronics
• The arrival of Industry 4.0 to create productivity
• Foreign Direct Investments
16. S
W O
T
Threats
• Slow down in the world economy
• Lower demand for E&E products in EU and the US
17. Master plan on ASEAN
Connectivity 2025
The Fourth Industrial
Revolution in
ASEAN(4IR)
PSDC
Strategies
19. 4IR - Malaysia 4.0 Sources: MINISTRY OF INTERNATIONAL
TRADE AND INDUSTRY(2018)
20. 4IR - Malaysia 4.0
Funding Infrastructure
Enabling
Ecosystem &
Efficient Digital
Infrastructure
Funding &
Outcome-based
Incentives
Regulation
Regulatory
Framework &
Industry
Adoption
Skills and talent
Upskilling
Existing &
Producing
Future Talent
Technologies
Access to Smart
Technologies &
Standards
21. Penang Skills Development Centre (PSDC)
Strategy - Current program and Training
Academic Programs
● Precision Machining Technology
● Industrial Automation Technology
● Quality Assurance Technology
● Computer Engineering
● Electronic Engineering
● Mechatronic Engineering
● German Dual Vocational Training (GDVT)
PSDC offers services including shared labs to cater event, training and meeting and rental services of high-end
testing equipment, as well as consultation services.
Workforce Transformation training programs
● Operational Excellence
● Malaysia meister program
● Chargeman AO
● Industry 4.0
● Technical
● Applied Engineering
● Digital Technology
22.
23. Insufficient
- not many agreements with
ASEAN.
- not enough support from
Malaysia.
- Some countries in ASEAN still
need support from others.
How does PSDC
support Penang
and industry?
Accessible to all.
Make graduates more
industry-ready.
Agreements with international
organizations.
i.e. Centre of Applied Data Science,
Malaysian-German Chamber of
Commerce
Does ASEAN or
International
support PSDC?
Is this sufficient
for industry, if
not, what should
be done?
25. Recommendations
1. Clarify the competitive position
of Malaysia E&E industry
as a high-class manufacturer.
2. Enhance FDI to come invest
in the country to increase
the investment in the industry
as a foreign direct investment mean
people bringing the capital to invest in the country.
3. Assign PSDC as one of
the program of an education
accepted by Government
to support skills
of the labor (currently improve).
4. Strengthening local small
and medium enterprises (SMEs) development
in order to export E&E to boost economy.
26. References
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27. References
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28. References
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