Malaysia can take on high-value engineering work done in India, says French group

Malaysia possesses a robust automotive, aerospace, electronics, and semiconductor industries, according to Arun Rajendran, the CEO and managing director of French engineering firm Segula Technologies. Speaking to FMT after a meeting with Prime Minister Anwar Ibrahim at the BRICS leadership summit, Rajendran highlighted that Malaysia already boasts strong road, port, and air infrastructure.

Rajendran noted that while much of the specialized design and engineering work remains in India, Malaysia has the potential to step up in this area by developing the necessary skills in its local workforce. The French company plans to establish a global engineering center in Malaysia by the end of 2026, which will employ Malaysians and leverage Segula's AI expertise to bolster industries such as automotive, aerospace, energy, and manufacturing.

Customers in the automotive and aerospace sectors are increasingly inquiring about conducting more work in Malaysia rather than sending it back to India, Rajendran explained. To meet this demand, experienced engineers can initially be recruited from India to train Malaysian teams over a period of three to four months, after which local specialists can take the lead.

The cost and difficulty of retaining skilled engineering talent in India are factors contributing to Malaysia's growing appeal, Rajendran noted. With the rise in costs, maintaining a skilled workforce has become more challenging in India. Malaysia also benefits from reliable power and water supplies, as well as the presence of numerous major international manufacturers.