The semiconductor, electronic and electrical (E&E) industry is a major contributor to Malaysia's economy and a major growth industry in Malaysia. The export of electrical and electronic products increased by 18% from RM386 billion in 2020 to RM456 billion in 2021, of which electrical and electronic products accounted for 56% of Malaysia's trade surplus. The labor productivity of the electronics and electrical industry will increase by 12% in 2021, and the added value of each job will reach RM198437, twice the national average of RM90647.

The electronic and electrical industry will also get the most investment opportunities in 2021. In 2021, there will be 94 approved projects worth RM148 billion, which will create 28362 jobs. The capital intensity of E&E industry (measured by the capital investment of each employee, CIPE) is RM5.22 million, which is the highest in the manufacturing sub industry.

These investments by Malaysia Electronics and Electric Corporation show that global demand for semiconductors is still strong. Supply cannot meet demand. The company is expanding its existing plants and/or building new plants to try to meet the demand for semiconductors. However, the key challenge facing the industry is the shortage of workers.

A survey conducted by MSIA on its 80 members in November 2021 concluded that the industry needed at least 30000 workers immediately. More workers will be needed as electronic and electrical companies expand their factories or build new ones.

Datuk Sri Huang Xiuhai, president of MSIA, said that Malaysian electrical and electronic companies are more willing to hire Malaysian people than foreign workers. Unfortunately, despite the recent increase in the minimum wage, there is an insufficient supply of suitable or industry ready workers in Malaysia.

He said in a statement today: "The electronic and electrical industry is doing its best to hire Malaysian workers by looking for them throughout the peninsula and East Malaysia, including seeking the help of agents."

At present, the E&E industry is encouraging SPM graduates to join its factory college program, where they receive 18 months of on-the-job training and then obtain a technician certificate after successfully completing the training.

The impact on SMEs and Malaysian companies is serious, because they lose workers to multinational companies due to salary increases, and these SMEs have to reject new orders. Multinational companies will have to transfer their orders to other sister companies in other countries, unable to transfer new products and technologies to Malaysia, or even refuse to accept new orders.

The Malaysian economy will benefit from the growth of the electrical and electronic industry as it helps to reduce semiconductor shortages.