A recent survey reveals that Malaysia's electrical, electronics, and semiconductor sectors are optimistic about the market in the third quarter of 2024, and are actively recruiting talent.
According to The Edge Malaysia and Bernama, the Malaysian Semiconductor Industry Association (MSIA) found that 39% of industry players reported better performance in the second quarter compared to the first. During this period, talent shortages were highlighted as a major challenge.
Optimism ahead
Looking ahead to the third quarter of 2024, 60% of respondents expressed optimism, driven by anticipated growth in consumer electronics, automotive, and AI sectors. Additionally, 85% of industry players plan to hire more engineers or technicians, citing a need for highly skilled employees.
Regarding investments, 58% intend to invest in new technologies, expand markets, or develop new products. Moreover, 74% view generative AI positively, believing it will impact operations and strategy.
Overall, 72% are confident in the Malaysian semiconductor industry's prospects for the next year but acknowledge the challenges of talent shortages and market competition. In 2023, Malaysia's electronics industry exports totaled MYR 575 billion (US$ 123 billion), accounting for 40% of the country's total exports.
Staffing from the neighbors
In the past six months, Malaysia launched the National Semiconductor Strategy (NSS) to attract more foreign investment and train 60,000 semiconductor professionals. Malaysia is known for its back-end semiconductor operations, but the government aims to advance to front-end activities and support the establishment of IC design parks.
However, the talent shortage has been a persistent issue. MSIA Chairman Wong Siew Hai recently suggested that Malaysia should follow the US model of attracting international talent. In the US, 70-90% of engineers are foreign-born, having studied, worked, and eventually gained permanent residency there.
SkyeChip CEO Swee Kiang Fong also noted that neighboring countries like Vietnam, Thailand, and Indonesia have many engineering talents but lack opportunities in IC design. He suggested that Malaysia could implement policies to attract these professionals.
