MALAYSIA’S electrical and electronics (E&E) sector continued to power the nation’s economy in the first half of 2026, recording a 42.5% increase in exports to a record RM467.9 billion amid strong global demand for semiconductors and electronics products.
Deputy Minister of Investment, Trade and Industry (MITI) Sim Tze Tzin said the E&E sector accounted for nearly half of Malaysia’s total exports during the January-June period and remained the country’s most important export contributor.
“The E&E sector recorded a 42.5 per cent increase in exports in the first six months of this year, reaching a record RM467.9 billion. It represents almost 50 per cent of Malaysia’s total exports,” he said after officiating the opening of the 6th Electronics Manufacturing Expo Asia (EMAX) 2026 at the Setia SPICE Convention Centre here today.
The Bayan Baru MP said Malaysia’s overall trade performance also reached a historic milestone, with total trade surging to RM1.796 trillion in the first half of 2026, surpassing the previous record set in 2025.
“Trade growth stood at 22.4%. Normally, three to five percent growth is already considered strong, but this year we achieved 22.4% showing the strong demand for Malaysian products globally,” he said.
He attributed the sector’s continued growth to Malaysia’s comprehensive semiconductor ecosystem, which spans the entire value chain from upstream to downstream operations, including front-end and back-end manufacturing.
“When investors come to Malaysia, they can find the suppliers, vendors, equipment makers and specialty chemical providers they need. This complete ecosystem gives Malaysia a significant competitive advantage,” he said.
Sim also pointed to Malaysia’s neutral geopolitical position and skilled workforce as key factors attracting foreign investors.
“Malaysia is a country where all nations want to do business. Our products can access the US market, the China market and markets around the world. At the same time, we have the talent pool, from IC design engineers and manufacturing engineers to technicians, to support industry growth,” he added.
The three-day EMAX 2026 exhibition brings together more than 250 exhibiting brands from over 20 countries and is expected to attract more than 8,000 trade visitors, engineers, factory owners, procurement professionals and manufacturing decision-makers.
Organised by NRG Exhibitions (M) Sdn Bhd and Fireworks Trade Media Group, the expo showcases the full electronics manufacturing value chain, covering semiconductor equipment, PCB and electronic assembly, precision engineering, industrial automation, robotics, AI-powered manufacturing, smart factories, testing and measurement technologies, as well as ESG solutions.
The event also features dedicated country pavilions from Japan and Singapore, providing manufacturers with direct access to advanced production technologies, automation systems, robotics and smart manufacturing solutions.
Sim noted the strong performance of exporters and manufacturers should be matched by greater investments in automation, research and development (R&D), and talent development.
“This is a good year for many exporters and factories. They should reinvest their profits into automation, R&D and talent development. We need to prepare for the next growth cycle,” he said.
He also encouraged engineers working in multinational corporations to consider entrepreneurship, describing the current period as the beginning of a long-term artificial intelligence (AI) supercycle.
“We are at the beginning of the AI supercycle. Engineers with innovative ideas should be brave enough to start their own businesses and collaborate with international partners,” he said.
On global uncertainties arising from conflicts in the Middle East, Sim stressed that while Malaysia could not control external events, the country must safeguard domestic political stability.
“We cannot control global crises, but we can control our domestic politics. Political stability is crucial to ensure Malaysia remains resilient and competitive amid global challenges,” he said.
During the opening ceremony, Sim also presented the EMAX 2026 ESG Leadership Awards, recognising organisations for outstanding leadership in environmental sustainability, governance, circular economy initiatives, ecosystem development and sustainable precision manufacturing.
Meanwhile, NRG Exhibitions chief executive officer Kenny Yong said EMAX had evolved beyond a conventional trade exhibition into a regional platform connecting manufacturers, technology providers and industry leaders.
“By bringing together leading technology providers from across Asia, EMAX creates meaningful opportunities for innovation, collaboration and business growth across the entire manufacturing ecosystem,” he said.
The exhibition runs until July 24 at the Setia SPICE Convention Centre. Admission is complimentary for trade visitors upon registration.
Among those present were InvestPenang chief executive officer Datuk Seri Loo Lee Lian, Malaysian Investment Development Authority (MIDA) Penang director Muhammad Ghaddaffi Sardar Mohamed, Penang Convention and Exhibition Bureau (PCEB) chief executive officer Ashwin Gunasekeran and industry players.
Story by Edmund Lee