Malaysia urges E&E exporters to reinvest profits in R&D, talent for AI growth

Malaysia's Ministry of Investment, Trade and Industry (MITI) is urging exporters and players in the electrical and electronics (E&E) sector to reinvest their profits into research and development (R&D) and talent cultivation. Deputy Minister Sim Tze Tzin emphasized that companies should not just enjoy current profits but should reinvest to prepare for new growth cycles driven by artificial intelligence (AI).

"We need to take advantage of this very good year. The profits obtained must be reinvested into R&D and talent development so that the industry continues to grow and is ready for the next growth cycle," Tze Tzin stated. He spoke at the opening of the 6th Electronic Manufacturing Expo Asia (EMAX 2026) in Bayan Lepas, which featured participation from approximately 20 countries and 250 exhibition booths.

Tze Tzin noted Malaysia's neutral geopolitical stance allows its products to access major global markets, including the United States and China. He also highlighted the country's skilled workforce, including integrated circuit design engineers and manufacturing engineers, as a catalyst for the high-tech industry's growth. The E&E sector was a major contributor to Malaysia's record trade performance, reaching RM1.796 trillion in the first half of the year, a 22.4% increase from the previous year. E&E exports alone surged 42.5% to RM467.9 billion, representing nearly half of the nation's total exports.

"Therefore, local engineers with ideas and expertise are encouraged to boldly establish their own startups to capitalize on the AI development wave, which is expected to continue for the next 20 years with government grants and assistance," Tze Tzin added. He encouraged local engineers to leverage the current AI boom, assuring them of government support through grants and aid.