Malaysia seeks to reduce import reliance and diversify E&E sector

Malaysia's Minister of Investment, Trade and Industry, Datuk Seri Johari Abdul Ghani, has outlined strategies to reduce the nation's dependence on imported components and raw materials. The goal is to increase the economic value of exports, particularly within the electrical and electronics (E&E) sector, by involving more local companies and small and medium enterprises (SMEs) in the supply chain.

To mitigate risks associated with the cyclical nature of the global semiconductor industry, the government aims to expand non-E&E exports and increase domestic production of semi-finished products. This approach is intended to protect the national economy from global economic slowdowns, technological shifts, supply chain disruptions, and geopolitical tensions that could impact E&E performance.

In 2025, the E&E sector recorded exports of RM712 billion against imports of RM567 billion, resulting in a trade surplus of approximately RM145 billion. In contrast, the non-E&E sector saw exports of RM897 billion and imports of RM885 billion, yielding a much smaller surplus of RM12 billion.