Prediction And Contribution of Electrical & Electronics (E&E) Industry Towards Malaysia Gross Domestic Product (GDP) By 2030

Khoo Pau Sheng () and Suzilah Ismail ()
Additional contact information
Khoo Pau Sheng: Universiti Utara Malaysia, School of Quantitative Sciences
Suzilah Ismail: Universiti Utara Malaysia, School of Quantitative Sciences

A chapter in Proceedings of the 12th International Conference on Business, Accounting, Finance and Economics (BAFE 2024), 2025, pp 273-284 from Springer

Abstract: Abstract Malaysia’s Electrical and Electronics (E&E) industry is pivotal, significantly contributing to national income through Gross Domestic Product (GDP), exports, and job creation. This industry is booming for drastic future expansion due to the Industrial Revolution, IR 4.0, and towards IR 5.0, with a high global demand for semiconductor chips from electric vehicles, artificial intelligence (AI), and other related sectors. Therefore, this study aims to predict the E&E industry sales value by 2030 and its subsequent contribution to GDP, which is crucial in future E&E infrastructure development and national economic planning of policy-making to fulfill the global demand. Six forecasting techniques were used: Decomposition, Holt-Winters Exponential Smoothing, Seasonal ARIMA (SARIMA), Time Series Regression, and Machine Learning (Artificial Neural Network and Support Vector Machine). The performances were evaluated using three error measures: RMSE, GRMSE, and MAPE. The findings indicated that the Time Series Regression model predicts a steady increase in Malaysia’s E&E sales value and E&E industry GDP by 2030, indicating robust growth and significant economic contribution. By 2030, the E&E industry is expected to contribute over 8% to Malaysia’s GDP, up from 7% in 2021. This aligns with the National Industrial Master Plan 2030, aiming for a 6.5% annual growth in the manufacturing sector, highlighting the E&E industry’s pivotal role in driving economic growth.

Keywords: Electrical and electronics; Gross domestic product; Foreign direct investment; National industrial master plan 2030 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-666-6_16

Ordering information: This item can be ordered from
http://www.springer.com/9789464636666

DOI: 10.2991/978-94-6463-666-6_16

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().