The association said the government should promote exports in the sector by offering export tax rebates, adding that this will ultimately benefit the economy.

In a statement, TEEAM also said Malaysia was lagging behind regional competitors in research and development (R&D) despite its strong base in manufacturing.

“To address this, the government needs to provide more incentives and support for R&D activities, including tax credits and grants for companies that invest in new technologies and products,” it said.

It also said government agencies must cooperate to ensure local products met global standards while encouraging the use of Malaysian products in its national procurement policy.

This, it said, will boost demand for local products and benefit the E&E sector.

“To sustain the growth and competitiveness of this industry, the government needs to take proactive steps in improving the industry’s performance, too. One of the main ways it can do so is by focusing on education and training.

“The education syllabus must be designed to produce quality engineers rather than just a high quantity of graduates.

“This can be achieved by encouraging the industry to participate actively in the training of students so they are equipped with the necessary skills and knowledge to contribute to the industry,” it said.

While Malaysia was still a “relevant investment gateway” in E&E, the association said, it needed to stay competitive to remain a leading player in the industry.