Manufacturing Sector's Performance Remains Positive In 1Q 2026 Under NIMP 2030
KUALA LUMPUR, July 23 (Bernama) -- Malaysia's manufacturing sector has continued to strengthen under the New Industrial Master Plan 2030 (NIMP 2030), with its gross value-added increasing 5.9 per cent in the first quarter of 2026 (1Q 2026), two years after the policy's implementation.
Deputy Investment, Trade and Industry Minister Sim Tze Tzin said the manufacturing sector's value-added increased to RM101.3 billion from RM95.7 billion in 1Q 2025.
He said the electrical and electronics (E&E) sector remained a key growth driver, supported by the upcycle in global technology demand and higher semiconductor production.
"In addition, the refined petroleum products subsector recorded the second-highest value-added contribution due to higher capacity utilisation, while the chemicals and chemical products segment expanded in line with stronger industrial demand," he said during the question time in the Dewan Negara today.
He said this in response to a question from Senator Sheikh `Umar Bagharib Ali on the developments in the implementation of NIMP 2030 and its achievements in boosting productivity and participation of small and medium enterprises (SMEs).
Sim said in 1Q 2026, manufacturing sector employment recorded a marginal increase of 0.04 per cent, or 1,000 workers, to 2.835 million, compared with 2.834 million in 1Q 2025.
“This reflects the industry’s cautious stance in employing workers due to the global economic uncertainties, aside from the industry’s shift towards digital technology and automation,” he said.
He noted that the median wage in the manufacturing sector rose from RM2,659 in 2024 to RM2,775 in 2025, representing a growth of 4.0 per cent, in line with the rise in high-skilled jobs.
On the Smart Tech Up programme, Sim said 32 factories had been identified as smart factories under the programme as at June 30, 2026, while 61 companies had been recognised as smart factories under the Smart Factory Recognition Programme by SIRIM Bhd and the Malaysia Automotive, Robotics and IoT Institute (MARii).
"In total, 93 companies had received smart factory recognition as at June 30, 2026," he said.
"A further 68 companies will be recognised as smart factories by December 2026 through the Smart Tech Up programme, bringing the total number of smart factories to 161 by year-end," he added.
Meanwhile, 40 SMEs and Malaysian mid-tier companies had benefited from the NIMP 2030 Strategic Co-Investment Fund (CoSIF) as at June 30, 2026.
"Most of these companies are from sectors such as E&E, chemicals, pharmaceuticals, food processing and information and communications technology, and have secured financing under the fund, with total government funding amounting to RM75 million," he said.
-- BERNAMA