Malaysia’s advanced manufacturing push towards growing a RM587b industrial dream - Spotlight Greater KL

Malaysia’s advanced manufacturing push towards growing a RM587b industrial dream

Advanced manufacturing focuses on manufacturing process technologies such as automation, robotics, and additive manufacturing. It is not just about innovative technology usage or making advanced products, as it blends high-tech hardware to work with innovative software to create a comprehensive solutions.

Digital modelling and fabrication, nano-manufacturing, power electronics and semiconductor manufacturing are among technologies in the advanced manufacturing category.

Malaysia’s manufacturing sector, accounting for RM1.2 trillion of the national GDP, attracted over RM43 billion worth of approved investments in Q1 2024 alone. It would lead to potentially 17,991 new jobs across 252 approved projects.

Several key areas including Greater KL have established high-value manufacturing hubs that are very much in demand. The value added by these hubs to the sector is forecasted to reach US$118.5 billion (RM 560.51 billion) with a projected compound annual growth rate (CAGR) of 6.05% from 2024 to 2028.

Additionally, the number of enterprises utilising Malaysia’s various manufacturing hubs is projected to reach 246,500 by 2024 with an anticipated CAGR of 61.62% from 2024 to 2028.

The prominence that Greater Kuala Lumpur (Greater KL) has gained as a hub for digital and technological innovation, makes it fertile soil for companies looking to grow cost-effective yet cutting-edge manufacturing solutions. InvestKL, guided by the New Industrial Master Plan 2030 (NIMP 2030), supports the government’s efforts to advance high-tech manufacturing in Malaysia.

Clarion debuts Malaysia's first AI and robotics-based manufacturing facility

From Left to Right: Patrick Ong, CPE sales leader, Dassault Systèmes, Ahmad Zaki bin Zahid, chief strategy officer, Digital Nasional Berhad, Wing K. Lee, CEO, YTL Communications Sdn. Bhd., Ma Sivanesan, deputy secretary general (Strategic Policy), Ministry Of Digital, Gobind Singh Deo, Malaysia's minister of Digital, Tan Teong Khin, managing director, Clarion (Malaysia) Sdn. Bhd., Lye Yhin Choy, CEO, Cnergenz Bhd., Haji Abdul Halim Hussain, advisor, CREST, Ng Kwang Ming, CEO, Digital Penang

In May 2024, global automotive supplier Clarion showcased its successful trial of Malaysia’s first 5G-enabled advanced manufacturing line. The facility deploys high-capacity, ultra-low latency private 5G and 5G-enabled manufacturing solutions including intelligent scanners, smart racks, X-ray automated counters, and Autonomous Mobile Robots.

“We are now able to digitally transform our manufacturing approach and reduce our processing time by 70%, with enhanced materials management, improved efficiency, and higher quality—leading to lower operational costs and better production quality,” said Tan Teong Khin, Managing Director of Clarion Malaysia.

Spectrum Materials’ first overseas manufacturing facility

The launch of Spectrum Materials Malaysia Sdn Bhd's manufacturing facility at Sendayan Techvalley in Negeri Sembilan.

In January 2024, Fujian, China-based semiconductor manufacturer Spectrum Materials launched its first ever overseas manufacturing facility in Sendayan Techvalley, Negeri Sembilan.

Spectrum Materials has committed an initial investment of US$7 million (RM33 million) for the first phase of development and anticipates to employ over 50 people - largely engineers and degree administration professionals - by the end of 2024.

“This expansion marks the establishment of a world-class facility for the production of semiconductor-grade specialty chemicals – the first-of-its-kind in Malaysia,” said Guofu Chen, President and CEO of Spectrum Materials.

TI’s RM14.6b play on semiconductors

In June 2023, U.S.-headquartered semiconductor giant Texas Instruments (TI) announced an RM14.6 billion expansion to its Malaysian manufacturing operations with two new assembly and test factories in Greater KL and Melaka, creating an additional 1,800 jobs. Production at both plants is expected to begin as early as 2025.

TI will invest up to RM 14.6 billion in expanding its operations in Malaysia. This includes developing a new factory in Greater KL, which will feature over 1 million square feet of cleanroom space and create nearly 1,300 new jobs. Additionally, TI is constructing a new six-level assembly and test factory in Melaka, with a total investment of up to RM 5 billion. This factory will encompass more than 400,000 square feet of cleanroom space and support up to 500 local jobs upon completion.

Cochlear’s RM30m medtech investment

In October 2022, Australian medical devices company Cochlear Limited, the global leader in implantable hearing solutions, invested more than US$6.4 million (RM30 million) to expand its manufacturing facility in Greater KL by 50,000 square feet, creating over 300 jobs.

In the 2021-2022 fiscal year, Cochlear provided more than 40,000 hearing implants around the world; yet, demand is still on the rise and being fulfilled from the heart of Greater KL. This facility will manufacture Cochlear’s latest and most advanced sound processors: from cochlear implant systems, bone conduction systems, acoustic implants, to wireless mini microphones and phone clips.

In April 2024, Cochlear announced a further expansion of RM10 million, bringing its total manufacturing-related investments into Malaysia to RM50 million.

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