EnS Lecture 2

EGE 3103
Engineers and Society
Introduction to Local Industry

(Lecture 2)
PowerPoint® Slides
by Ir Meheron Selowara Joo
Lecture 2
 The Malaysian Economy
 Engineering in relation to NKEA
 Overview of engineering and IT industries in

Malaysia
Last Updated:10 October 2019 © LMS SEGi education group 2

Lecture 2
 The interaction of local industry with other

industrialized countries
 Current socio-economic issues in local industry

and its impact on engineering

LEARNING OBJECTIVES
 Able to describe wider perspective of society,

emphasising the role of the professional engineer
 Able to understand the key economic and technology

issues that affect the promotion & improvement of
industrial activity in Malaysia
 Able to recognize and appreciate the socio economy

and basic technological issues relating to the local
industries.
The Malaysian Economy
The Malaysian economy has made a gigantic leap since

1957. The transformation of the country's economy from
one based on primary commodities like tin, rubber and
palm oil to a dynamic and vibrant industrialising nation is
attributed to a variety of factors.
Malaysia's political and economic stability, investor
friendly business policies, cost-productive workforce,
a developed infrastructure etc. makes this country an
enticing place for investors.
Gross domestic product (GDP) measures of

national income and output for a given country's
economy.
GDP is equal to the total expenditures for all final goods
and services produced within the country in a stipulated
period of time.
In 2012, GDP in Malaysia was 303.53 billion USD.

The GDP value of Malaysia represents 0.49 percent of
the world economy.
GDP capita – GDP / population (adjusted by inflation)

Year 2013 GDP capita USD 6764.51
Unemployment rate is 3%.
Population is 30 million.
The population of Malaysia represents 0.42
percent of the world´s total population. 1
person in every 242 people on the planet is
a Malaysian.
MALAYSIA: INVESTMENT PERFORMANCE 2013
BY MIDA (Malaysian Investment Development Authority)
• In 2013, Malaysia sets a new record of

RM216.5 billion for approved direct
investments.
• Quality investments within the National
Key Economic Areas investments.
• Approved projects create about 192,000
new jobs for Malaysians.
Engineering in relation to National Key
Economic Areas (NKEAs)
National Key Economic Areas

(NKEAs)
12 selected sectors of economic
opportunity which will drive Malaysia
towards high-incomestatus and
global competitiveness.
National Key Economic Areas (NKEAs)
OIL AND GAS

PALM OIL AND RUBBER
Improving Fresh Fruit Bunch Yield

Developing Biogas Facilities at Palm Oil Mills
Increasing the Oil Extraction Rate (OER)
Malaysia is the largest producer of rubber gloves
COMMUNICATIONS CONTENT
AND INFRASTRUCTURE
Telecommunications
High speed broadband
Information Technology
HEALTHCARE
Malaysian Pharmaceuticals – Increasing Local

Generic Manufacturing for Exports
BUSINESS SERVICES
Growing Aviation Maintenance, Repair and Overhaul

Services
Asian green technology hub
Developing Malaysia as a Shipbuilding and Repair Hub
GREATER KL & KLANG VALLEY
High-Speed Rail Connection to Singapore

Integrated Urban MRT
Last Developing
Updated:10 October 2019 an Efficient Solid Waste
© LMS Management
SEGi education group System 15
Overview of engineering and IT industries
in Malaysia
Electrical and Electronics Industry

• The electrical & electronics (E&E) industry is the
leading sector in Malaysia's manufacturing sector,
contributing significantly to the country's
manufacturing output (26.94%), exports
(48.7%) and employment (32.5%).
• The major export destinations are USA, China and

Singapore.

in Malaysia
• Malaysia's E&E industry in semiconductor devices

including photovoltaic cells and modules, high-end
consumer electronics, and information and
communication technology (ICT) products.
• The major electrical products are lightings, solar

related products and household appliances such as
air-conditioners, refrigerators, washing machines and
vacuum cleaners.
in Malaysia
• Malaysia is home to many of the largest and

renowned solar players .
• The growing awareness of the importance of the

green technology including renewable energy has
led to the introduction of the LED roadmap by the
Malaysian government

in Malaysia
Machinery and Equipment Industry(M&E)

The M&E industry to be one of the key areas for growth
and development especially on high value-added and
high technology M&E.
Malaysian M&E manufacturing strengths are in R&D,

D&D, software development, system integration,
assembly, testing and calibration while focusing on
quality of production.

in Malaysia
Petroleum and Petrochemical Industry
Essentially divided into

Upstream and
Downstream



Malaysia has the world's 14th largest
natural gas reserves and 23rd largest crude
oil reserves.
Production 2,000 million standard cubic feet

per day of natural gas and 730,000 barrels
of oil equivalent per day of crude oil.
FOCUS : Oil and Gas Industry in Malaysia
Petroleum exploration in Malaysia started at

the beginning of the 20th century in
Sarawak, where oil was first discovered in
1909 and first produced in 1910.
Prior to 1975, petroleum concessions were
granted by state governments, where oil
companies have exclusive rights to explore
and produce resources.
The companies then paid royalties and

taxes to the government.
This ceased on April 1, 1975 as a result of
the Petroleum Development Act, whereby
PETRONAS became the custodian of
petroleum resources with rights to explore
and produce resources.

The national oil company retains ownership

and management control in exploration,
development and production of oil
resources. Expenditure and profits are
managed under Production Sharing
Contracts (PSCs).

Upstream Industry Players

Petronas Carigali
ExxonMobil Exploration and Production
(Malaysia) Inc (EMEPMI),
Nippon Oil
Sarawak Shell
Murphy Oil
Carigali Hess.
Downstream Industry Players

Petronas Penapisan
Conoco
MLNG
Gas Malaysia
Engineers are involved in
EPCC
3 major petrochemical zones :

Kerteh, Gebeng and PasirGudang
Ammonia and urea plants in Bintulu and Gurun,

Kedah
Acrylonitrile butadiene styrene plant in Pulau
Pinang;
Methanol plant in Labuan
FOCUS : Oil and Gas Industry in
Malaysia
Malaysia
Jacket design
Malaysia
Jackets
for 50m Water Depth
Malaysia
Qatar Petroleum, PS-1 Production Complex
Malaysia
Umm Shaif CSP, Arabian Gulf
10000 tonnes
Malaysia
Malaysia
Tapis-R and Tapis Q, Exxon Mobil

Exploration and Production Incorporation
Malaysia
Current socio-economic issues
Energy
Malaysia’s energy sources primarily comprise
oil, natural gas, hydro power and coal
Renewable energy (RE)

sources such as solar power and biomass are
currently being exploited
Malaysian government has formulated quite a

number of energy-related policies to ensure
sustainability and security of
energy supply.
Current socio-economic issues and its
impact on engineering
The establishment of the Ministry of

Energy, Green Technology and
Water to replace the Ministry of Energy,
Communications and Multimedia in 2009
reflects Malaysia’s seriousness in driving the
message that ‘clean and green’ is the
way forward towards creating an economy that
is based on sustainable solutions.
Green Technology - Technology which is
environmentally friendly, conserves natural resources
For example, by reducing CO2 emissions or by making
products more biodegradeable.
Overall, green technology aims at contributing to
environmental sustainability.
Sustainability - meeting the needs of society in
ways that can continue indefinitely into the
future without damaging or depleting natural
resources.
In short, meeting present needs without

compromising the ability of future
generations to meet their own needs.
RENEWABLE ENERGY
 Hydro
 Wind
 Solar
 Hydrogen fuel cells - The fuel cell is an

electrochemical cell, which produces
electricity directly from hydrogen and air
(oxygen)
 Biomass and biogas from palm oil mill
Pusat Tenaga Malaysia Zero Energy
Office Building
Tapis-R and Tapis Q, Exxon Mobil

Exploration and Production Incorporation
Malaysia
Current socio-economic issues and its impact
on engineering
Pusat Tenaga Malaysia Zero Energy Office

Building (PTM ZEO)
The Malaysia Energy Centre’s 43,060 SF
Zero Energy Office Building, completed
in 2007, is perhaps the world’s first
carbon neutral and zero net energy
commercial-scale office building, and
may be the world’s third largest ZNE
building as of 2012.
Construction
Waste
Waste is a serious problem in construction
projects.
Construction wastes are generated
because of :
• frequent design changes
• poor planning
• material not incompliance with specification
• effect of weather
Education of
engineers
Decreasing number of graduate engineers
tertiary institutions.
Educating engineers to become facilitators
of sustainable development, appropriate
technology, and social and economic
changes represents one of the greatest
challenges faced by the engineering
profession today.
Engineering leadership and understanding
of public policy.
How many engineers realize that policies
and legislation affect their work?
How many engineers recognize that it is
these policies upon which codes and
standards are developed and promoted
for projects around the world?
Social Responsibility
Engineers have an obligation to meet the
basic needs of all humans for water,
sanitation, food, health, and energy, as
well as to protect cultural and natural
diversity. Improving the lives of the seven
billion people whose main concern is
staying alive each day is no longer an
option; it is an obligation.

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EGE 3103

Engineers and Society

Introduction to Local Industry

 The Malaysian Economy

 Engineering in relation to NKEA

 Overview of engineering and IT industries in

Last Updated:10 October 2019 © LMS SEGi education group 2

 The interaction of local industry with other

 Current socio-economic issues in local industry

Last Updated:10 October 2019 © LMS SEGi education group 3

 Able to describe wider perspective of society,

 Able to understand the key economic and technology

 Able to recognize and appreciate the socio economy

The Malaysian economy has made a gigantic leap since

Gross domestic product (GDP) measures of

In 2012, GDP in Malaysia was 303.53 billion USD.

GDP capita – GDP / population (adjusted by inflation)

• In 2013, Malaysia sets a new record of

National Key Economic Areas

OIL AND GAS

Last Updated:10 October 2019 © LMS SEGi education group 10

PALM OIL AND RUBBER

Improving Fresh Fruit Bunch Yield

Malaysian Pharmaceuticals – Increasing Local

Growing Aviation Maintenance, Repair and Overhaul

GREATER KL & KLANG VALLEY

High-Speed Rail Connection to Singapore

Electrical and Electronics Industry

• The major export destinations are USA, China and

Last Updated:10 October 2019 © LMS SEGi education group 16

Electrical and Electronics Industry

• Malaysia's E&E industry in semiconductor devices

• The major electrical products are lightings, solar

Electrical and Electronics Industry

• Malaysia is home to many of the largest and

• The growing awareness of the importance of the

Last Updated:10 October 2019 © LMS SEGi education group 18

Machinery and Equipment Industry(M&E)

Malaysian M&E manufacturing strengths are in R&D,

Last Updated:10 October 2019 © LMS SEGi education group 19

Petroleum and Petrochemical Industry

Essentially divided into

Last Updated:10 October 2019 © LMS SEGi education group 21

Last Updated:10 October 2019 © LMS SEGi education group 22

Petroleum and Petrochemical Industry

Production 2,000 million standard cubic feet

Petroleum exploration in Malaysia started at

The companies then paid royalties and

Last Updated:10 October 2019 © LMS SEGi education group 25

The national oil company retains ownership

Last Updated:10 October 2019 © LMS SEGi education group 26

Upstream Industry Players

Downstream Industry Players

Engineers are involved in

3 major petrochemical zones :

Ammonia and urea plants in Bintulu and Gurun,

Tapis-R and Tapis Q, Exxon Mobil

Renewable energy (RE)

Malaysian government has formulated quite a

The establishment of the Ministry of

In short, meeting present needs without

 Hydrogen fuel cells - The fuel cell is an

Tapis-R and Tapis Q, Exxon Mobil