THE electrical and electronics (E&E) sector is a cornerstone of Malaysia’s economy, driving industrial growth.
It also makes up a significant part of the country’s exports, at about 40%, and is a key source of high-value jobs in the country.
The significance of the sector is further underscored by its role in attracting foreign investment, with multinational corporations like Intel, Infineon and Texas Instruments running substantial operations in the country, particularly in hubs like Penang and Kulim.
Hence, a thriving E&E sector is key to economic growth, and a huge part of that is ensuring good environmental, social and governance (ESG) practices are in place.
As explained by QES Group Bhd managing director and president Chew Ne Weng, adhering to and staying current with up-to-date ESG standards strengthens the company’s reputation and enhances its ability to serve international markets.
While sustainability practices do impact the group’s profitability in the short term, Chew says it is not merely a cost but rather an investment in the future, benefitting both the business and the environment.
“For instance, achieving the Green Building Index (GBI) accreditation for our Batu Kawan plant requires using sustainable materials that are more costly than standard products.
“However, while there are some trade-offs in the immediate costs, QES believes that sustainable manufacturing initiatives contribute to long-term cost savings and competitive advantages,” he says.
The automated test equipment player has two manufacturing facilities, one in Glenmarie, Shah Alam, and the other in Batu Kawan, Penang. The latter, also known as QES 2@BKIP, began construction in 2024 and is targeted to commence operations sometime around June 2025.
Chew says several key sustainability initiatives have been implemented in the new plant, including the use of sustainable materials such as low-impact durable options that help minimise the factory’s ecological footprint.
Further, energy efficiency measures have been introduced, with tinting mechanisms to keep the building cooler, thereby reducing energy consumption.
The plant also features energy-efficient systems such as LED lighting and optimised heating, ventilation and air conditioning systems.
There is also the integration of renewable energy sources, mainly solar power and rainwater harvesting systems.
Additionally, waste reduction strategies have also been implemented through waste segregation systems, recycling initiatives and efforts to reduce waste sent to landfills.
“We expect to see operational savings over time. These sustainable manufacturing practices will lower operational costs in the long term, improve productivity and streamline processes,” Chew says.
For ViTrox Corp Bhd, president and group chief executive officer Datuk Chu Jenn Weng describes ESG as more than just a goal but rather an ongoing journey and a path that requires perseverance, innovation and total commitment.
The company says one of the key ESG challenges in the E&E industry is in navigating the rapid disruption brought by artificial intelligence (AI) while ensuring workforce readiness.
“The pace of AI advancements demands skilled talent, strong infrastructure and greater industry commitment to sustainability. Balancing innovation with long-term environmental and social goals remains a critical hurdle,” it says.
To address this, ViTrox is continuously investing in AI-driven solutions and talent development by actively building workforce resilience through its ViTrox Institute of Technology in Penang.
“Regionally, we are also strengthening Malaysia’s supply chain ecosystem by participating in the Advanced Technology Equipment Cluster – a strategic initiative aimed at boosting local sourcing and enhancing the global competitiveness of Asean’s semiconductor industry.
“Through this collaboration, we actively recommend purchasing from local suppliers, thereby supporting and empowering homegrown businesses,” the company says.
Likewise, JF Technology Bhd, a manufacturer of test contacting solutions for integrated circuit (IC) testing, is actively embedding sustainability into every facet of its manufacturing processes.
JF Technology’s founder and group managing director, Datuk Foong Wei Kuong, says the company prioritises design strategies that minimise machining and material usage, aiming for streamlined production and creating durable, long-lasting components.
“For instance, our test engineering solutions business plays a pivotal role in advancing environmental sustainability.
“Specifically, we support clients in migrating product testing from single or dual-site configurations to multi-site architectures.
“This migration yields substantial reductions in the carbon footprint and energy consumption associated with IC chip product testing,” he says.
Foong recognises that the synergy between technological innovation and sustainable practices is fundamental to achieving Asean’s dual goals of robust economic growth and environmental preservation.
“Our commitment to continuous R&D plays a pivotal role in driving technological advancements that inherently incorporate sustainable principles,” he says.
