MITI Minister targets import dependence as non-E&E trade surplus narrows to RM12b
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 Johar...
Malaysia's MITI Minister, Datuk Seri Johari Abdul Ghani, is urging the nation to transition from exporting products assembled with imported components to generating domestic supply chains. Speaking in the Dewan Rakyat, he pointed out that Malaysia's electrical and electronics (E&E) sector had an export of RM712 billion in 2025 against imports of RM567 billion, yielding a trade surplus of RM145 billion.
However, the non-E&E sector only generated a narrower surplus of RM12 billion, with exports of RM897 billion against imports of RM885 billion.
Johari emphasized the government's aspiration for local entities to assume a larger role in producing raw materials and semi-finished goods currently imported for export manufacturing. This targeted shift would cut import spending and augment domestic value creation. The minister elucidated that the strategy entails focusing on how local companies engage in the domestic E&E sector.
Specifically, he underlined the aim of ensuring that production of imported raw materials or semi-finished products required for exports occurs within Malaysia's borders.
He stressed that blindly allowing imports is no longer justifiable, noting that the government will identify sectors necessitating intervention to cultivate domestic production and thus reduce imports. In the semiconductor industry, Johari highlighted the government's push for Malaysian firms to move beyond conventional assembly, testing, and packaging.
Instead, they are encouraged to venture into advanced packaging, which holds promise for capturing higher value within the global semiconductor supply chain. The government is in the process of fostering local abilities in this domain, in part through the Malaysian Advanced Packaging Consortium.
Johari expressed the government's intent to empower these companies to broaden their business horizons. When they achieve success, he envisions the involvement of local downstream companies, thereby broadening the industry's overall contribution.
Written by urgent.news from The Vibes's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
