Malaysia External Trade Development Corporation

MONDAY, MARCH 27, 2017, KUALA LUMPUR: The National Export Council (NEC) has identified Electrical & Electronics (E&E) as the key sector to promote the inclusion of Malaysian companies in the global supply chain, given its significance in developing new industries that are driven by knowledge, high-technology and value-add.

The NEC, chaired by the Prime Minister of Malaysia YAB Dato' Sri Mohd Najib Tun Hj Abdul Razak, agreed that by boosting the performance of the E&E sector more market leaders from Malaysia will be developed, hence increasing the participation of Malaysian companies in the global supply chain, particularly in emerging segments. Among these segments are System Integration, Cloud Computing, Advanced Energy Storage, Wireless Electronics, Electric Vehicle, Internet of Things, Augmented Reality and Big Data.

The E&E sector assumes a crucial role in driving the Malaysian economy and it contributed 44.6% to the country's total manufacturing exports in 2016. The E&E sector also contributed 23.4% to Malaysia's Gross Domestic Product (GDP) in 2016 and created more than 780,000 jobs for Malaysians. The E&E Multinational Companies in Malaysia too have been identified as a catalyst to develop local SMEs into high-value corporations.

The meeting also deliberated on strategies to improve the services trade balance through the tourism industry. Specific initiatives aimed at increasing high net-worth tourist arrivals include the importance of executing high-impact promotional activities such as inviting world-famous celebrities to visit Malaysia and leveraging on social media and other digital platforms to attract more inbound tourists. Other initiatives are promoting the use of e-wallet among tourists and easing visa processing for travellers visiting Malaysia.

The NEC also emphasised on the strategies to promote the usage of local content in key local development projects. In realising this, the Government through its agencies such as Malaysian Investment Development Authority (MIDA), Construction Industry Development Board (CIDB) and Malaysia External Trade Development Corporation (MATRADE) will facilitate the matching of local suppliers with developers through industry collaboration programmes.

In addition to services balance, ongoing initiatives to improve agro food trade balance such as increasing production locally through the existing Permanent Food Production Parks & Aquaculture Industrial Zone as well as to expedite the signing of export protocols with importing countries were also presented by the Ministry of Agriculture and Agro-Based Industry during the meeting.

The NEC was established in December 2014 and meets once every quarter. It is tasked with formulating strategies to drive Malaysia's exports and to chart the way forward for Malaysia to have a conducive ecosystem that promotes the development of local industries that are competitive globally.