MALAYSIA needs to move beyond assembling and exporting products made with imported inputs by building domestic capacity to supply the materials and components required by its industries, Investment, Trade and Industry (MITI) Minister Datuk Seri Johari Abdul Ghani told the Dewan Rakyat.
He said the electrical and electronics (E&E) sector recorded exports of RM712 billion in 2025 against imports of RM567 billion, generating a trade surplus of RM145 billion.
By comparison, the non-E&E sector posted a much narrower surplus of RM12 billion, with exports of RM897 billion against imports of RM885 billion.
Johari said the government wanted local companies to play a greater role in producing raw materials and semi-finished products currently imported for use in export manufacturing, thereby reducing the outflow of import spending and increasing domestic value creation.
“That is why, in our strategy going forward, alongside expanding non-E&E exports, we also want to focus on how our companies participate in the domestic E&E sector. For the raw materials or semi-finished products we import to produce exports, we want to specifically ensure that production takes place in our country.
“We can no longer allow imports to proceed indiscriminately simply because it is the easiest option. We will identify sectors where government intervention is needed to develop domestic production of these products so that we can reduce imports,” he said.
He was responding to a supplementary question from Muhammad Fawwaz Mohamad Jan (PN-Permatang Pauh) on the actual domestic value added in Malaysia’s E&E exports after accounting for imported components and technology, and the ministry’s target for increasing that contribution by 2030.
In the semiconductor industry, Johari said the government also wanted Malaysian companies to move beyond conventional assembly, testing and packaging into advanced packaging, which offers opportunities to capture higher value across the global semiconductor supply chain.
He said the government was focusing on developing local capabilities in this area, including through the Malaysian Advanced Packaging Consortium.
“We want them to take the initiative to expand their businesses and, when they succeed, involve local downstream companies as well to broaden their contribution to the industry,” he said. - October 12, 2026