Page 7 - Malaysia Exporters of Machinery, Parts & Equipment Directory

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3. Specialized/Process M&E for Specific Industries
M&E in this category is specifically designed for use in a particular industry or process.
Here, Malaysia, as the production base of the world’s top electronics companies, enjoys a
competitive advantage: M&E manufacturers can benefit from the close proximity to global
clients which have set up operations here. The increasing mechanization of the agriculture
sector has also spawned opportunities in the cultivation of crops, fruits and vegetables,
plantation management, livestock rearing, meat and dairy processing.
With an export value of over RM12 billion, the food and beverages sector is another promising
sector, especially in the sectors of innovative food processing and packaging equipment.
Woodworking, pulp and paper, agricultural, automotive, medical, biotechnology, oil & gas
processing, petrochemicals, pharmaceuticals, printing, semiconductor, construction, etc also
show potential.
4. General Industrial Machinery and Equipment, Components and Parts
The general industrial machinery and equipment, components and parts sub-sector covers a
broad category of products, including air-conditioning plants, cold room equipment, elevators,
cranes, conveyor systems, pumps, compressors, welding machines, fans & blowers, heat
exchangers, pressure vessels, filtering equipment, valves, bearings, gears, actuators
etc. The engineering supporting industries essentially cater to the needs of the electrical
& electronics and automotive industries. Given the current focus on the manufacturing,
aerospace, medical equipment and devices industries, there is potentially a strong increase
in demand for precision components, parts and modules.
Seizing the Opportunities in M&E
The M&E industry’s cross cutting linkages with all industrial sectors have an important
implication: it is strategically important to a country’s overall industrial development. Malaysia
is no different. Fully aware of this, the government has progressively rolled out a series of
action plans to strengthen the industry, particularly in these aspects: devising a package of
incentives to attract relevant investors, fortifying institutional support for supporting industries
and services, developing technical expertise related to M&E design and development and
enhancing its technology development activities.
Two major sweeteners are available: the Pioneer status and the Investment Tax Allowance.
Under the former, companies that promote specialized M&E for specific industries, such as
plastic processing, food processing, printing & bookbinding under the Pioneer Status enjoy a
10-year tax exemption. Existing companies reinvesting in promoted M&E activities are also
eligible for these tax incentives.
Technological advances, process specialization and customer requirements for shorter
throughput times, faster delivery and lower costs are expected to determine the future
direction of the M&E industry worldwide. Anticipating this, the government fine-tuned the
incentives to promote specific activities and products, which include machine tools, plastic
injection machines, material handling equipment, robotics and factory automation equipment,