The MSIA’s survey reveals that 44% of Malaysian E&E companies are optimistic about Q1 2025, despite lower confidence compared to previous quarters. Challenges include talent shortages and competitive pressures. Companies aim to diversify markets and improve talent development. 57% see opportunities from the US-China chip conflict, while 72% plan to hire engineers. MSIA emphasizes leveraging innovation to tackle industry challenges, highlighting the importance of the National Semiconductor Strategy.
Recent data from the Malaysia Semiconductor Industry Association (MSIA) indicates that 44 percent of Malaysian electrical and electronics (E&E) companies forecast positive business performance for the first quarter of 2025. This relatively upbeat sentiment is an extension of the findings from the MSIA E&E/Semiconductor Quarterly Pulse Survey which reflect improvements in business performance, albeit at a declining rate compared to previous quarters. Notably, 37 percent of companies experienced enhanced business activity in the fourth quarter of 2024, a decrease from 46 percent in the previous quarter.
Although optimism remains strong, companies project lower investment confidence, with 44 percent expressing a favorable outlook for investments in the first quarter of 2025, down from 52 percent in the third quarter of 2024. Anticipated challenges include a shortage of skilled talent, heightened competition in the marketplace, and external factors such as supply chain disruptions and geopolitical tensions, notably the US-China chip conflict, which are presenting increasing difficulties for the sector.
MSIA emphasizes the need for Malaysian companies to focus on diversifying their semiconductor markets and supply chains while improving talent development to bolster their competitive stance amid these challenges. Furthermore, 57 percent of companies foresee potential opportunities stemming from intensified tensions in the US-China chip war, indicating a shifting landscape for the industry. Overall, 72 percent of companies plan to hire engineers and technicians in early 2025, showing a sustained commitment to growth despite current challenges.
Wong Siew Hai, President of MSIA, articulated the necessity for industry players to leverage innovation and collaboration to navigate the hurdles posed by talent shortages and external pressures. Moreover, the launch of the National Semiconductor Strategy (NSS) by Malaysia in 2024 represents a significant commitment to advancing its capabilities in critical areas such as integrated circuit design and advanced packaging to enhance global competitiveness. MSIA serves a broad sector of the semiconductor industry, including manufacturers, service providers, and regulatory bodies, driving Malaysia’s growth in this vital field.
The Malaysian electrical and electronics industry, particularly the semiconductor sector, is facing various challenges but continues to show a level of optimism for the upcoming year. The MSIA E&E/Semiconductor Quarterly Pulse Survey provides insights into the performance and prospects of the industry based on feedback from key players in the sector. Understanding these trends is essential for assessing Malaysia’s position in the global semiconductor market as it responds to domestic and geopolitical pressures.
In conclusion, despite fluctuations in optimism and significant challenges ahead, such as talent shortages and geopolitical tensions, a notable portion of Malaysian E&E companies retains a positive outlook for the initial quarter of 2025. The industry is focusing on strategic initiatives, including market diversification and talent development, to forge ahead amidst uncertainties. MSIA’s President highlighted the crucial role of innovation and proactive strategies in transforming challenges into prospects within this evolving landscape.
Original Source: technode.global
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