Deputy minister calls on E&E firms to reinvest strong trade profits into R&D, automation and talent to boost long-term competitiveness.
GEORGE TOWN: Factories and industry players, particularly in the electrical and electronics (E&E) sector, are advised to capitalise on the country’s strong trade performance this year by reinvesting profits into research and development (R&D), automation, and talent development to enhance long-term competitiveness.
Deputy Minister of Investment, Trade and Industry Sim Tze Tzin said companies need to seize the opportunity to upgrade their operations and prepare for the next industrial growth cycle.
“I would like to advise our exporters, factory owners and industry players to take advantage of this momentum and upgrade their businesses, as this is a very good year and they are making profits.
“Therefore, do not just enjoy all these profits but reinvest them, because they need to be prepared for the next cycle and cannot have a short-term mindset,” he told reporters here today.
He said this after officiating the Electronics Manufacturing Expo Asia 2026 (EMAX 2026) here today. The three-day expo, which opened today, features 250 exhibition booths from 20 countries.
Commenting on Malaysia’s trade performance, Sim noted that it continues to show strong momentum in the first half of 2026, recording the highest value for the January-June period, driven by the resilience of the E&E sector despite global economic uncertainties.
The country’s total trade increased by 22.4% year-on-year to RM1.796 trillion, and exports grew by 27.5% to RM971.59 billion, while imports rose by 16.9% to RM824.44 billion, resulting in a trade surplus of RM147.15 billion.
The performance was supported by the strengthening of the manufacturing sector, particularly the E&E industry, whose exports increased by nearly RM140 billion, driven by sustained global demand, technological advancements, and the increased use of digital technology in major world markets.
Sim pointed out that Malaysia’s position as a neutral country allows local products to penetrate major world markets, including the United States (US), China and other countries.
He added that Malaysia also has a skilled workforce, including integrated circuit (IC) design engineers, manufacturing engineers and technical personnel, who are catalysts for the growth of the high-tech industry.
“Malaysia is now in a strong position in the E&E sector due to a complete industrial ecosystem encompassing the supply chain from upstream to downstream, making it one of the main factors attracting global investors,” he said.
Sim noted that the country’s excellent trade performance demonstrates its resilience even as the world faces geopolitical uncertainties, including conflicts in West Asia.
He said the E&E sector continues to be a major driver as exports from the sector surged by 42.5% to RM467.9 billion, representing almost half of the country’s total exports.
“This shows that global demand for Malaysian E&E products remains very strong and underscores the country’s competitive advantage in the industry,” he explained.
Sim also encouraged local engineers with ideas and expertise to venture into entrepreneurship, especially in the field of artificial intelligence (AI).
According to him, the government provides various grants and assistance to startup companies, making the current period of AI growth an opportune time to develop local technology companies.
Meanwhile, on EMAX 2026, he said the extensive participation from various countries proves that Malaysia continues to be a preferred destination for global investors in the E&E sector due to its complete ecosystem from upstream to downstream, including front-end and back-end processes.
“Through EMAX, investors can also access a network of suppliers, vendors, equipment manufacturers, and specialised chemicals in Malaysia, thereby giving the country a competitive edge over other destinations,” he added.
