Malaysia must address lack of skilled talent, R&D, says Mustapa
MALAYSIA must address a shortage of skilled talents and lack of local research and development in the electrical and electronics (E&E) industry if it wishes to move up the value chain, said de facto economic affairs Minister Mustapa Mohamed.
The Minister in the Prime Minister’s Department said despite its significant contribution towards the economy, the industry faces several challenges in maintaining growth and competitiveness globally following the Covid-19 pandemic.
He said the E&E industry plays a critical role in the country’s industrial development.
“Indeed, Malaysia is a major global manufacturing hub for the industry, producing about 13% of the global back-end semiconductor output.
”E&E accounts for 40% of Malaysian exports. In the first eight months of 2021, Malaysia’s total trade in E&E products amounted to RM477 billion, while exports rose 18.8 per cent to RM282 billion,” he said today in a webinar entiitled “RMK-12: Boosting E&E Industry in Moving up the Value Chain”.
Under the 12th Malaysia Plan, he said the E&E industry is projected to contribute RM120 billion to the GDP and RM495 billion to exports by 2025.
“Going forward, the Economic Planning Unit would like to work closely with the Ministry of International Trade and Industry, Malaysian Investment Development Authority and industry in order to realise our ambitious E&E targets,” he added.
He also said the government is committed in creating a more conducive environment for the continued growth of the E&E sector.
It also wants more Malaysian companies, in particular small and medium enterprises (SMEs), to take part in the global value chain, Mustapa said, adding that a number of SMEs have made a name for themselves in the global E&E sector.
“For example, SkyeChip has designed cutting-edge silicon intellectual properties and integrated circuit (IC) products for the global market, becoming the first Malaysian IC company to be widely accepted for 7nm production. – Bernama
Consider new benchmarks, targets to build up Bumiputera economic community, says Tengku Zafrul
“Yes, it refers to equity ownership. However, it should also include other aspects of Bumiputeras’ economic participation and contribution, such as human capital development, entrepreneurship, employment, the supply chain, and innovation in new industries, particularly in halal foods and services,” he said in his special address at the Invest Malaysia 2021 Virtual Series 1 today.
If Bumiputeras are to become a rising economic force, well-intended plans like the New Economic Policy (NEP) must be modernised, the minister said.
Tengku Zafrul said since the NEP was introduced in 1971, poverty among the Bumiputera community has decreased by 89% to a level below 7.2%.
Last year, a total of 61.6% of Bumiputeras were employed in skilled occupations, and 73.7% of Bumiputera households owned a home, he said.
To address equity ownership, he said a key policy instrument to increase Bumiputera ownership of Malaysian companies includes the establishment of agencies like Permodalan Nasional Bhd (PNB), which manages the Amanah Saham Bumiputera funds. He added that this has been “a resounding success.”
From managing RM30 billion in assets in 2001 to more than RM323 billion today, PNB has grown more than 10-fold, and owns about 10% of companies listed on Bursa Malaysia, he said, adding that between 2016 and 2020, RM52.4 billion in dividends were distributed to more than 12 million unit holders.
As of last year, nearly 290,000 Bumiputeras were enrolled in Technical and Vocational Education and Training management, or professional programmes.
At the same time, more than 28,000 participated in programmes provided by the Yayasan Peneraju Pendidikan Bumiputera.
In terms of tertiary education, Majlis Amanah Rakyat has provided scholarships to 240,000 students to complete their studies between 2016 and 2020. – Bernama
BERNAMA / THE MALAYSIAN INSIGHT