MSIA said this optimism is driven by demand for consumer electronics, automotive and artificial intelligence (AI).

“Furthermore, 85% of the surveyed companies are hiring engineers and technicians this quarter.

“(About) 58% of the companies have an optimistic investment outlook for Q3 2024,” the association said in a statement today in conjunction with the launch of the inaugural MSIA E&E/Semiconductor Quarterly Pulse Survey for the second quarter (Q2) of 2024.

MSIA said the objective of this survey is to assess the sentiment, trends, challenges, and opportunities within the Malaysia E&E/ semiconductor industry on a quarterly basis.

It said 39% of the companies reported better business performance in Q2 compared to the first quarter of 2024, indicating a positive industry sentiment.

“The biggest challenges in Q2 2024 were talent shortage and market competition or order book,” it said.

The association stated that companies are also eyeing opportunities to expand into new markets, invest in new technology, and develop new products, with 72% maintaining an optimistic outlook for the next 12 months.

In addition, it said 74% of the surveyed companies have a positive sentiment towards adopting generative AI in the semiconductor industry, which will impact their entire operations and strategies.

MSIA said Malaysia’s 2023 E&E exports totalled RM575 billion, accounting for a 40% share of total exports, and more than the next nine biggest exports combined.