Opportunities in the Malaysian Advanced Manufacturing Sector for Dutch Advanced Manufacturing (Brabantse Ontwikkelings Maatschappij)

Summary

• Malaysia has a trade-to-GDP ratio of 127.9% and logistics infrastructure ranked 7th globally, with access to ASEAN's 600+ million consumers.p.4
• 44% of Malaysia's tertiary students study STEM fields.p.4
• The E&E sector alone accounts for over €123 billion in exports.p.4
• Malaysia's National Semiconductor Strategy targets €100 billion in investments over three phases, backed by €5.3 billion in fiscal support.p.17
• E&E contributed 6.8% of GDP and attracted €36.7B of investment in 2021-2022, creating 55,434 jobs.p.22
• SMEs make up 89% of E&E companies but contribute only about 9% of value-add.p.24
• Malaysia announced a US$250 million, 10-year deal with Arm Holdings, and Infineon plans to invest US$5.4 billion over the next five years.p.9

Key insights

1. Only Malaysia and Singapore in Southeast Asia have the complete semiconductor value chain.p.10
2. Malaysia has a trade-to-GDP ratio of 127.9%, showing deep global integration.p.8
3. The government aims to raise the share of STEM students to 60%.p.14
4. Under the National Semiconductor Strategy, 60,000 engineers are to be trained.p.17
5. E&E exports reached €123B in 2022, equal to 38.3% of national exports.p.22
6. M&E contributed about €3.3B to GDP in 2022, growing at a 7.9% CAGR.p.22
7. Average production worker salaries in the EU are over 150% higher than in Malaysia.p.27
8. Pioneer Status grants a 70% tax exemption on statutory income for 5 years for promoted R&D activities.p.51