Page 6 - Malaysia Exporters of Machinery, Parts & Equipment Directory

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Industry Overview
A Landscape of the Machinery Industry in Malaysia
Machinery & Equipment (M&E) industry. With the rapid development of the country’s
manufacturing sector, the industry has broadened rapidly: it now spans a diverse range
of products and services catering to a host of economic sectors and downstream support
activities. Today, with 22 local manufacturers (and counting), Malaysia has assumed position
as the leading ASEAN manufacturer of M&E automation for the electrical and electronics
(E&E) industry, with some rising superstars capable of producing advanced and complex
handling systems that boast full automation with intelligent robotics.
The numbers speak volumes about Malaysia’s progression in the M&E segment: In 2010,
Malaysia exported RM21.5 billion worth of M&E to mainly Singapore, Thailand, Indonesia,
the United States and China, up from RM18.87b last year - accounting for a not-insignificant
3.4% of Malaysia’s total exports. Some RM 1.91 billion worth of investments were poured
into the industry – the equivalent of 92 approved projects - out of which foreign-based
investments made up the lion’s share of RM 1,019.4 million.
The fact that M&E is required in virtually every economic sector such as manufacturing,
agriculture, construction, transportation and mining has contributed to Malaysia’s rapid rise
as an M&E force to reckon with. Exports are projected to increase by an optimistic 6.7%
annually to reach RM48.3 billion in 2020. Under the Industrial Master Plan 3 (IMP3, 2006-
2020), a total of RM30.8 billion in investments were targeted for this high-growth sector, with
particular focus on high value-added and high-technology product segments.
Industry sub-sectors
Based on trade classifications, the M&E industry in Malaysia can loosely be divided into four
major categories.
1. Power Generating Machinery and Equipment
The power generating sector of the M&E industry has grown at a steady clip, fuelled by
burgeoning interest worldwide in environmental-friendly power generating solutions. Malaysia
shines in specific sectors: we are South East Asia’s largest manufacturer of boilers, catering
to mostly commercial operations i.e. oil & gas refineries, oleo-chemicals, petrochemicals,
food and beverages, palm oil, rubber, wood, textile and hospitals. And recently, power
generating sets for power plants, refineries, exploration platforms, petrochemical plants and
commercial buildings have also shown promise.
2. Metalworking Machinery
With its emphasis on high technology, the metalworking machinery sub-sector presents vast
opportunities, especially in laser cutting machines, machining centers, electro-discharge
machines (EDM), milling machines, drilling machines, lathes, shearing machines, bending
rolls, stamping machines, press brakes, forging machines and presses. Several Malaysian
and foreign companies have joined forces to undertake the manufacturing of metalworking
machinery for the automotive, E&E and other engineering supporting sectors.
T he agro-based and tin-mining sectors are said to be the early catalysts for
the emergence of the machinery industry, also popularly referred to as the