PETALING JAYA: The outlook for Malaysia’s electrical and electronics (E&E) companies appears positive, as indicated by the latest survey conducted by the Malaysia Semiconductor Industry Association (MSIA).
The survey, which is also MSIA’s inaugural E&E and semiconductor quarterly pulse survey, found that 39% of companies reported better business performance in the second quarter (2Q24) compared with 1Q24, highlighting a positive industry sentiment.
However, talent shortages and market competition remain the biggest challenges faced by companies in the sector.
Despite these hurdles, 60% of the surveyed companies are optimistic about 3Q24, driven by demand for consumer electronics, automotive and artificial intelligence.
Additionally, 85% of companies are planning to hire engineers and technicians in 3Q24 and 58% have an optimistic investment outlook for the same period.
The survey also revealed that companies are looking to expand into new markets, invest in new technology and develop new products, with 72% expressing an optimistic overall outlook for the next 12 months.
Notably, 74% of companies have a positive sentiment towards the adoption of generative AI, anticipating its impact across their operations and strategies.
MSIA, in a statement, emphasised the significance of the E&E industry as one of Malaysia’s bellwether sectors.
It said that in 2023, Malaysia’s E&E exports amounted to RM575bil, accounting for 40% of the country’s total exports.
