GEORGE TOWN, Sept 7 — Malaysia aims to boost its local advanced technology equipment sub-sector with the creation of an advanced technology equipment cluster (ATEC), said Investment, Trade and Industry Deputy Minister Liew Chin Tong.
He said the sub-sector has been in existence since the 1980s so gathering the companies together to create a Team Malaysia will boost the entire ecosystem.
“The equipment industry can produce equipment for many other industries so that Malaysia can grow as a champion of tech equipment and through this, those companies with RM1 billion revenue will grow into US$1 billion (RM4.3 billion) companies within a decade,” he said.
He said smaller companies will also be able to grow into RM1 billion revenue-size companies.
“It is our hope to create 10 Malaysian companies in the region of US$1 billion revenue and 100 Malaysian tech companies in the region of RM1 billion revenue,” he said in a press conference announcing the launch of ATEC.
He said the creation of ATEC will allow the local companies to help multinational companies enhance their localisation programme by acquiring local equipments and at the same time help them have a resilient supply chain.
“We also want the equipment industry to do more than supplying to the semi-conductor, we want to move away from the dependence on unskilled foreign labour, we want agriculture to use more tech, healthcare to use more tech, furniture to use more tech,” he said.
Meanwhile, Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai said Malaysia has strong automation and precision machining companies that have been proven to be able to support the semiconductor industry and beyond.
“We have at least 1,000 companies in Malaysia in advanced tech equipment, machining, stamping and support equipment to form ATEC,” he said.
He said there is a chance for Malaysia to be known for its strong automation and advanced tech equipment sub-sector.
Penang Chief Minister Chow Kon Yeow said often the surge of foreign direct investments (FDI) into the state may not benefit local materials and equipment suppliers.
He said this is because these investors often would bring materials and equipment from their respective host countries to set up plants here.
“Although we have a localisation policy, it is about time that the government enforces a localisation programme that is comfortable for both the investors and local companies,” he said.
He said he doesn’t want investors to feel uncomfortable with stringent localisation policies but it is still necessary to elevate the local supply chain to support the investors so that they do not feel as if the local companies do not benefit from FDIs.
“This can be taken up by the federal government and investors have to realise that they are benefiting from the local system, the local talent pool, the local food but when it comes to localisation of equipments, they should give serious thought about it,” he said.
He said it is not new for the government to impose localisation requirements so he hoped the government can review the policy to benefit local suppliers.
