Kuala lumpur: 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 percent in the first quarter of 2026 (1Q 2026), two years after the policy's implementation.
According to BERNAMA News Agency, Deputy Investment, Trade and Industry Minister Sim Tze Tzin reported that the manufacturing sector's value-added rose to RM101.3 billion from RM95.7 billion in 1Q 2025. The electrical and electronics (EandE) sector remained a primary growth driver, supported by an 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," Sim stated during the question time in the Dewan Negara.
In response to Senator Sheikh `Umar Bagharib Ali's inquiry regarding the NIMP 2030 implementation and its impact on productivity and SME participation, Sim noted a marginal employment increase in the manufacturing sector, with 1,000 new workers, bringing the total to 2.835 million in 1Q 2026, compared to 2.834 million in the previous year. This increase reflects the industry's cautious approach to hiring amid global economic uncertainties and a shift towards digital technology and automation.
Sim also highlighted a rise in the median wage in the manufacturing sector from RM2,659 in 2024 to RM2,775 in 2025, marking a 4.0 percent growth, aligning with the increase in high-skilled jobs.
Regarding the Smart Tech Up programme, Sim announced that 32 factories had been identified as smart factories by June 30, 2026, while 61 companies had been recognized 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 noted. "A further 68 companies will be recognized 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.
Sim further reported that 40 SMEs and Malaysian mid-tier companies benefited from the NIMP 2030 Strategic Co-Investment Fund (CoSIF) by June 30, 2026. "Most of these companies are from sectors such as EandE, 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 explained.