The M&E industry is and always has been a highly competitive business sector and consistently striving to innovate new production systems and provide integrated solutions with the most advanced technologies and automation. The Asia Pacific region is poised to be the epicenter of business and trade in the future coming years. An increasing number of internationally active companies are choosing the Asia Pacific as the hub to manage their business and trade in Asia as well as considering alternative locations within this region, outside China and India.

The disruptions on the supply chains we have seen show the urgent need for a drastic and continuous digitalization of all elements of the supply chains. While we are all now used to Video Meetings the digital transformation process will have to go much deeper and further though.
ASEAN economies being the second-fastest growing in Asia after China has the potential to be their second hub in Asia. From serving as contract manufacturers to Original Equipment Manufacturers (OEMs), more local companies in Malaysia are already undertaking R&D, engineering design, innovation, and system integration and developing proprietary M&E for global exports.

Thus, Malaysia is increasingly becoming a choice destination for Multinational companies seeking to outsource their manufacturing processes. Malaysia’s engineering supporting companies have been also groomed to provide consistent quality of production and on-time delivery. Exports of M&E have exceeded more than 10 bn USD. Export destinations include Singapore, the USA, and Japan. Imports have also increased from 7bn USD in 2000 to 15bn USD in 2019, indicating Malaysia’s dynamic and rapidly growing economy.

Imports are mainly for advanced, high-tech machines and components and some general machinery & equipment that are not available locally.

The growth of Malaysia’s M&E industry is driven by the continuous inflows of both foreign direct investments and domestic investments in various sectors; among the major sectors are the semiconductor, electrical & electronics, automotive, oil & gas, aerospace, medical and food processing.

The need for high-technology M&E in these industries is key to their survival within a global environment and will accordingly continue to grow in the future. The Asia Pacific region is poised to be the epicenter of business and trade in the future coming years. Malaysia’s M&E industry is forecasted to grow at 10.1% per annum from 2018 until 2027. Not only will M&E production continue to be the field of interest for foreign investment, but other areas of the value chain also provide opportunities for profitable investment.

Service and maintenance, repair, and overhaul (MRO) are also in high demand due to the high density of plants and M&E installations in this region.

Volker Friedrich
Kuala Lumpur, January 2022

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