Malaysia, Southeast Asia must invest in talent, process excellence, innovation to stay resilient in global E&E industry

Malaysia’s strong showing, with RM600 billion in electronics and electrical (E&E) exports in 2024 and its position as the world’s sixth-largest semiconductor exporter, highlights both industrial maturity and room for growth. The Global Electronics Association is aligning its regional strategy with the 13th Malaysia Plan, which targets RM1 trillion in E&E exports by 2030.

Malaysia, Southeast Asia must invest in talent, process excellence, innovation to stay resilient in global E&E industry

KUALA LUMPUR: The electronics and electrical (E&E) industry remains a critical pillar of the global economy, with an estimated value exceeding US$6 trillion. It spans the full value chain, from semiconductors and printed circuit boards to electronics assembly, wire harnesses, materials and advanced manufacturing equipment.

Global Electronics Association, Malaysia country manager, Dr Ranee Ramya said Malaysia and Southeast Asia occupy a strategically important position within this global ecosystem.

“The region benefits from a strong manufacturing base, competitive cost structures, improving infrastructure and its role as a trusted alternative and complement to traditional manufacturing hubs,” Ranee said.

“Countries in Southeast Asia are increasingly integral to supply chain diversification strategies adopted by global original equipment manufacturers and electronics manufacturing services players.”

However, she said long-term competitiveness can no longer rely on cost advantages alone.

“The region must continue to invest in talent development, process excellence and innovation to remain resilient amid geopolitical uncertainty, trade realignments and rapid technological advancement. This is where industry-wide collaboration becomes essential.”

Ranee added that the Global Electronics Association plays a key role by harmonising global standards, strengthening workforce capabilities and supporting companies in adopting next-generation manufacturing practices.

“Technologies such as artificial intelligence-enabled inspection, digital process control and predictive maintenance are already transforming factories across Southeast Asia, improving quality, reducing rework and enhancing overall operational efficiency.”

“With the establishment of our Malaysia office, we are deepening our commitment to the region. Through world-class training programmes, technical skills development and closer engagement with industry and stakeholders, we aim to strengthen local capabilities and ensure Southeast Asia continues to move up the value chain and play a more influential role in the global E&E ecosystem.”

Ranee said Malaysia’s performance, with RM600 billion in E&E exports in 2024 and its position as the world’s sixth-largest semiconductor exporter, reflects both industrial maturity and significant room for growth.

“To support the next phase of expansion, the Global Electronics Association is aligning its regional strategy closely with the 13th Malaysia Plan, which targets RM1 trillion in E&E exports by 2030.”

She said the association’s contribution is focused on converting scale into sustainability and value creation through three measurable pillars. The first is enhancing workforce skills.

Export growth at this scale, she said, requires a highly skilled and future-ready workforce. The association is expanding access to globally recognised certification and training programmes, including advanced packaging modules, supported by HRD Corp-claimable pathways through the Human Resource Development Corporation.

At the same time, its Penang office is being developed as a centre of excellence supporting both multinational and local companies operating in Malaysia.

The target is to train and certify more than 10,000 professionals in Malaysia by 2030, directly strengthening manufacturing quality, productivity and export readiness.

The second pillar is fostering a competitive and influential ecosystem.

“Malaysia’s competitiveness must extend beyond compliance to leadership,” Ranee said.

The association is hosting regional standards development meetings to ensure Malaysian companies and engineers are not only adopting global standards, but actively shaping them.

It is also facilitating structured participation by Malaysian engineers in global standards committees, embedding local expertise into international requirements that directly influence export acceptance and market access.

The target is to have at least 100 Malaysian experts contributing to global electronics standards committees by 2030.

The third pillar is expanding market access and global linkages.

Export expansion, she said, depends on strong international connectivity. The Association is organising industry networking platforms, business-to-business matchmaking programmes and international forums to connect Malaysian companies with global OEMs, EMS players and technology partners.

In parallel, initiatives in semiconductor packaging and advanced manufacturing are being driven to help Malaysian companies move up the value chain into higher-value and technology-intensive segments.

The target is to facilitate more than 500 new international partnerships and trade linkages by 2030.

By directly linking skills certification, standards leadership and global market access to export performance, Ranee said the approach ensures Malaysia’s RM1 trillion E&E ambition is measurable, achievable and globally competitive.

She said Penang has long been the backbone of Malaysia’s E&E ecosystem, particularly in semiconductors, advanced manufacturing and precision assembly. At the same time, Selangor and Johor are attracting significant foreign investment in data centres, advanced manufacturing and high-value electronics.

The establishment of the Global Electronics Association office in Penang is designed to support and connect these strengths into a cohesive national ecosystem.

The Penang office will function as a regional hub for workforce development, global standards alignment and digital manufacturing capability building.

It will provide Malaysian companies with access to internationally recognised training and certification programmes in critical areas such as advanced packaging, smart manufacturing and wire harness assembly, enabling them to meet global customer requirements and accelerate time to market.

By positioning Penang as a centre of excellence, the Association aims to upskill and certify more than 10,000 professionals by 2030, directly supporting companies in moving up the value chain from volume-driven manufacturing to higher-value, innovation-led activities.

Beyond skills development, the Penang office will also serve as a gateway to global markets.

Through industry networking platforms, B2B matchmaking and structured participation in global standards committees, Malaysian companies gain direct exposure to international partners, customers and emerging technology trends.

Most importantly, having a dedicated presence in Penang allows Malaysian industry players to access global best practices locally.

Training delivery, standards adoption and capability building can be tailored to regional industry needs, ensuring practical impact while strengthening Malaysia’s position as a trusted and competitive E&E manufacturing and innovation hub.

Malaysia’s semiconductor and electronics talent shortage, Ranee said, is real and pressing.

Government estimates indicate that more than 60,000 highly skilled engineers and technicians must be trained and upskilled by 2030 to support continued growth across semiconductor manufacturing, electronics assembly, advanced packaging and the broader E&E value chain.

This urgency is recognised under the National Semiconductor Strategy, which places strong emphasis on building a sustainable and industry-ready talent pipeline.

The Global Electronics Association, which rebranded from IPC in June 2025, is addressing this challenge in a more integrated way.

While continuing IPC’s globally recognised standards and certification programmes, workforce development has been elevated as one of the Association’s four core pillars, alongside sustainability, next-generation technologies and digital manufacturing.

Ranee said what sets the approach apart is its focus on execution and alignment rather than isolated initiatives.

“Our workforce programmes are closely aligned with Malaysia’s national priorities, ensuring that training outcomes match real industry demand and policy objectives,” she said.

The association actively engages local universities, polytechnics, semiconductor and electronics manufacturers, and government agencies to create a coordinated ecosystem rather than fragmented efforts.

At the operational level, global IPC-based standards are being embedded into engineering and electronics curricula, with hands-on training modules co-developed in electronics assembly, advanced packaging, wire harness manufacturing and quality systems.

This enables students, lecturers and technicians to obtain internationally recognised certifications before entering or progressing within the workforce.

Training is deliberately focused on emerging and future-facing skills such as advanced packaging, digital manufacturing and Industry 4.0 to support Malaysia’s move up the value chain.

“For Malaysian companies, this means the Global Electronics Association is no longer just a certification body, but a strategic partner in workforce readiness,” Ranee said.

By combining global best practices with local adaptation and strong collaboration with academia and industry, she said the association is helping to equip engineers and technicians with practical, industry-ready skills for next-generation electronics and semiconductor manufacturing, delivering measurable progress where previous approaches often fell short.