The electrical & electronics (E&E) cluster plays an important role in Selangor’s manufacturing sector by contributing about 22% of the state’s manufacturing output. Over the past 3 decades, E&E has successfully attracted more than RM 35 billion of investments into Selangor and created over 177,000 of employment opportunities. In view of the current structure, large multinational companies and their subsidiaries with a few mid-tier local companies dominating the local E&E cluster. The majority of corporations is still focused on low-end manufacturing and

assembly. To move up the value chain, Selangor State Government recognises the need for specialisation and continuous talent development. Hence, a wealth of opportunities awaits investors throughout this transformation process.
 

Focus Areas: Semiconductors, Solar (Green-Tech), LED Technologies, Industrial/Integrated Electronics

 

By contributing about one-quarter of Selangor’s total manufacturing GDP, the life sciences cluster represents a leading engine for the state’s economic growth. Indeed, life sciences activities in Selangor have always been concentrated in the central region, mainly driven by the state’s strong economic growth, well-established infrastructures, easy access to educated workforce, influx of medical tourists as well as close proximity to Kuala Lumpur being the Business Centre and Putrajaya as Administrative Capital. With vast development potentials, it is planned to advance the life sciences cluster to the next level and attract high quality investments into the state. For example, the chemicals sector (part of life sciences cluster) in Selangor has recorded more than RM 13 billion of investments

over the years with a Compound Annual Growth Rate (CAGR) of 15.86% and generated more than 23,000 of employment opportunities. The extensive supply network of different chemical end- and intermediate products will provide an excellent eco-system for corporations in the fields of biotechnology, pharmaceuticals, cosmetics and personal care products as well as food & beverage processing, including nutraceuticals.

 

The food & beverages (F&B) manufacturing cluster is another important cluster that supports and stimulates the state’s economic growth. Generally, the F&B cluster revolves around the primary activity of food processing and manufacturing. Being the fifth largest industry in Selangor, food manufacturing has attracted more than RM 12 billion of investment throughout the years and produced over 33,000 of job opportunities; whereas beverages sector has attracted about RM 1.3 billion (including tobacco) of investment. In Selangor, many larger companies have been producing food products for decades, which successfully cater to both domestic and overseas markets. 

Besides, a vast number of small and medium enterprises (SMEs) also export their food products to regional markets. The growing achievements of the state’s F&B cluster is driven by its favorable business environment, including strong physical infrastructure, presence of large local and foreign multinational companies (MNCs), access to low to medium skill workforce, huge domestic market demand for food as well as diverse SMEs.
 

Focus Areas: Halal Food

 

The transport equipment cluster has attracted more than RM 25 billion of investment into Selangor for the past three decades, supporting over 68,000 jobs. Assisted by the influx of both domestic and foreign direct investment, transport equipment accounts for approximately 12% of the state’s total manufacturing output.

Reflecting the significance of Selangor’s transport equipment cluster, Malaysia’s overall ambition as a major aerospace hub in the ASEAN region has started as early as the 1990s when the National Aerospace Blueprint was formulated. Being strategically located in the centre of Malaysia, Selangor is the country’s main port of entry and has two major airports. Over the years, Selangor has benefited from various strategic national programs, such as transforming Subang International Airport into a regional MRO hub and intensifying aerospace Research & Technology activities via the establishment of Aerospace Malaysia Innovation Centre etc. Looking at the automotive sector,

Malaysia is targeting for 2,000 electric busses, 100,000 electric cars and 100,000 electric scooters/motorcycles on the roads by 2020 to encourage sustainable mobility.The potential of different EV related niche-products are likely to enhance the importance of automotive manufacturing within the state.

These initiatives, together with long-term commitment and support from the state government, have ultimately made Selangor more attractive, where transport equipment manufacturers are able to thrive.
 

Although machinery & equipment (M&E) cluster only contributes about 3% of the state’s manufacturing output, in fact it plays an essential part for most manufacturing activities and supports various industries (eg. oil & gas, automotive, agricultural, packaging, aerospace, E&E etc.). It is this supporting function that influences the dominant palm oil industry in agriculture or the hugely successful oil & gas sector, which is driving growth and even exporting products as well as expertise. Besides, M&E also promotes and facilitates developments in the

manufacturing sector. Over the past 3 decades, M&E has attracted nearly RM 9 billion of investments in Selangor, creating more than 42,000 jobs.
 

Focus area: Power Generating M&E, Metalworking M&E, Specialised/process M&E for specific industries, General industrial M&E, Components and Parts

 

Mr. Sven Schneider
Head of Corporate Communication & Strategic Planning Division
sven@investselangor.my
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