GEORGE TOWN (April 26): The contribution of the electrical and electronics (E&E) sector to Malaysia’s gross domestic product (GDP) could grow further in the next two to three years, with the help of the higher adoption of smart technology manufacturing such as Internet of Things (IoTs) among industry players.

Malaysian Investment Development Authority (Mida) chief executive officer Datuk Azman Mahmud told reporters that this was possible in two to three years, if there was a higher adoption of smart technology manufacturing such as Internet of Things (IoTs) among industry players.

"The semiconductor industry in particular is the largest contributor comprising more than 40% of Malaysia's E&E exports. In 2015, the E&E industry contributed 6.1% to the GDP.

"The E&E products in 2015 accounted for 35.6% of total exports," said Azman, when reading International Trade and Industry Minister Datuk Seri Mustapa Mohamed's speech at the opening of Semicon Southeast Asia 2016 conference here.

Mustapa pointed out that the global semiconductor market is expected to grow at a compound annual growth rate (CAGR) of around 5.2% between 2015 and 2019.

"We are also currently the world's leading location for semiconductor assembly and test operations, accounting for more than 12% of the world installed capacity.

"Growing the semiconductor sector, especially the front-end, will certainly spearhead the growth of the E&E industry in Malaysia," he added.