GEORGE TOWN: Electrical and electronics (E&E) industry exporters, factory owners and players are urged to take advantage of the sector's encouraging performance by reinvesting profits into research and development and talent development, said Deputy Investment, Trade and Industry Minister Sim Tze Tzin (pic).
He said companies should not just enjoy current profits but consider reinvesting into the new growth cycle driven by artificial intelligence (AI).
"We need to capitalise on this year where the E&E sector has seen RM467.9bil in exports for the first half of the year — a 42.5% increase compared to the same period last year.
"The profits earned need to be reinvested into research and development and talent development to ensure that the industry continues to grow and is ready for the next growth cycle," he said during a press conference held after opening the 6th Electronic Manufacturing Expo Asia (EMAX 2026) at the Setia SPICE Convention Centre in Bayan Lepas on Tuesday (July 22).
The event showcased 250 exhibition booths with participation from around 20 countries bringing together manufacturers, technology providers, government agencies, industry associations and professionals from around the world.
Sim said Malaysia's position as a neutral country allows local products to be marketed to multiple countries including the United States, China and other countries.
"Our neutrality gives Malaysia a competitive advantage.
"Malaysia has a skilled workforce including integrated circuit design engineers, manufacturing engineers and technicians who are the catalysts for the growth of the high-tech industry.
"Malaysia's trade volume from January to June this year (2026) recorded a new high of RM1.796 trillion, an increase of 22.4% compared to the same period last year.
"This proves that the country's trade remains resilient even though the world faces geopolitical uncertainties.
"The E&E sector is the main contributor as exports for the first six months of this year jumped 42.5% to RM467.9bil compared to the same period last year (2025) representing almost half of the country's total exports.
"In the IMD World Competitiveness Ranking 2026, Malaysia climbed eight positions to the 15th place, showing improved performance across key pillars such as economic performance, government and business efficiency," he said.
He said this means that a lot of products from Malaysia are exported and bring economic growth and money into Malaysia.
"Which is why many companies are making good profits. The profits will be translated to higher wages and bonuses to the workers," he said.
He said with opportunities opening up, engineers who have ideas and expertise are advised to take the chance and establish their own startups to take advantage of the wave of AI development.
"This wave (AI) is expected to continue over the next 20 years with the support of grants and government assistance," he said.
