GEORGE TOWN: Industries must improve productivity, optimise energy consumption, enhance operational reliability and accelerate their sustainability journey to remain competitive amid rising costs and rapid technological changes.
ABB Malaysia vice-president for electrification service Andrew Chelliah said businesses today were facing unprecedented challenges, including rising energy costs, increasing sustainability expectations, supply chain complexities, rapid digitalisation, and the adoption of artificial intelligence (AI).
“Industries today are at a crossroads. To stay competitive, organisations must find a way to improve their productivity, optimise energy consumption, enhance reliability and accelerate their sustainability journey,” he said at the ABB Innovation Forum Penang 2026 yesterday, which was officiated by Institution of Engineers Malaysia Penang branch chairman Dr Lee Choo Yong.
The one-day forum gathered more than 100 participants from key sectors including semiconductors, utilities, power generation, electrical and electronics, oil and gas, water and wastewater, data centres and manufacturing.
Andrew said Malaysia continued to strengthen its position as a regional manufacturing giant, particularly in the semiconductor and advanced electronics sectors, with manufacturing contributing about 23% to the country’s gross domestic product.
He said Penang, often referred to as the “Silicon Valley of the East”, played a pivotal role in attracting investments and driving innovation across the semiconductor value chain.
“Energy efficiency has become a clear business imperative, not just a sustainability goal any longer,” he said, noting that energy accounts for around 25% of operating costs.
Citing ABB’s Energy Efficiency Report 2026, Andrew said 63% of industrial companies in Malaysia had already invested in energy efficiency initiatives, reflecting the growing importance of managing energy consumption and improving overall operational efficiency. Another 33% of companies surveyed indicated that they planned to make similar investments within the next year.
He said technologies that improve efficiency, reliability and performance were increasingly becoming strategic investments rather than mere operational upgrades.
Andrew added that the forum was designed to provide practical insights and real-world solutions for semiconductor production, adaptive automation, variable-speed drives, smart motors, power reliability, emissions monitoring, digitalisation, AI, and asset performance optimisation. – Bernama