KUALA LUMPUR, Malaysia (July 3): The Malaysia Semiconductor Industry Association (MSIA) is pleading with the government to allow E&E factories in Selangor and Kuala Lumpur to continue operating during the enhanced movement restriction order (EMCO). MSIA president Datuk Seri Wong Siew Hai said in a statement today that the announcement of the EMCO in many Selangor districts and several localities in Kuala Lumpur has caused the association great concern because the directive does not approve the operations of E&E factories, which are classified as an essential industry.
“In the worldwide semiconductor trade, Malaysia is a major player.” Malaysia accounts for approximately 7% of total worldwide semiconductor trade. Furthermore, it is an important element of the worldwide electronics supply chain, with E&E exports accounting for 39 percent (RM386 billion) of Malaysia’s total exports, contributing 6.8% of national GDP, and employing 575,000 people in 2020.
“Global enterprises will be unable to build and construct crucial infrastructure [as well as] medical equipment like ventilators, medical devices, and other essential products” as a result of the supply chain interruption, according to Wong.
Furthermore, because some of the world’s most important chipmakers are based in the EMCO regions, any production disruption would not only reverse the positive spillover that the companies had reaped from the global chip shortage, but would also cast Malaysia in a negative light for exacerbating the problem.
“In addition, Kuala Lumpur is home to two of Malaysia’s largest burn-in service providers, who give help to other companies.” The shutdown will have a significant impact on Malaysia’s E&E industry, according to the MSIA.
He cautioned that the disruption could have an impact on overseas company investment plans and that items would most likely be permanently relocated outside of Malaysia as a result of the disturbance.
“Many small and medium businesses (SMEs) that serve multinational corporations (MNCs) and large local corporations (LLCs) would be badly hit as well.” Customers may also seek out suppliers in other areas. All of these variables will increase the risk of losing the E&E ecosystem, which has been established organically for the previous 50 years,” he noted.
Wong encouraged the government to take into account enterprises that followed standard operating procedures (SOPs).
“The authorities conducted 14 surprise audits on our member companies over the previous three weeks, and all of them were deemed to be fully compliant with the SOPs,” the MSIA said. It further stated that one of the surprise audits, which was attended by a minister, impressed him.
“We urge the authorities to consider these exemplary companies that have maintained the highest standards of SOP compliance and extended great efforts to assist the country in breaking the chain with regular testing… the MSIA appreciates the government’s swift action in protecting the rakyat from Covid-19,” says the MSIA. He continued, “However, we must strike a balance between lives and livelihoods.”/n
