Manufacturing
The NCER will become the high-tech electronics hub of the Region, expanding from the currently predominant assembly and test activities to higher value-add activities including wafer fabrication, chip design, automation design and materials or packaging R&D. To realise these aspirations, a number of programmes will be implemented to strengthen human capital in related fields and incentives will be provided to encourage MNCs to locate high value add activities in the NCER.
In addition to E&E, other manufacturing sub-sectors that will be promoted are downstream agriculture, oil and gas, biotechnology, sustainable materials and automotive.
Targeted outcomes by 2012 include:
- Increasing investment in the NCER manufacturing sector from RM16.5 billion in 20061 to RM24.3 billion
- Increasing the percentage of the manufacturing sector workforce involved in high value-add activities to 30%
- Increasing value add as a percentage of manufacturing output to 30%
| KPI | 2005 | Target 2012 | Target 2020 | Target 2025 |
|---|---|---|---|---|
| Manufacturing investment per annum |
RM15.6 billion | RM24.3 billion | RM43.5 billion | RM62.2 billion |
| Manufacturing workforce in high value add areas |
< 20% | 30% | 36% | 40% |
| Manufacturing value add | 15% (E&E only) | 30% | 42% | 45% |
- Source: MIDA’s website “Total Proposed Capital Investment”. Figure represents the total for Perlis, Kedah, Pulau Pinang and Perak, whereas Perak figures include the whole state