Kuala lumpur: 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, Electrification Service, Andrew Chelliah, highlighted these challenges during the ABB Innovation Forum Penang 2026, where he urged businesses to adapt to emerging demands.

According to BERNAMA News Agency, Andrew Chelliah noted that businesses today are confronting unprecedented challenges, such as rising energy costs, increasing sustainability expectations, supply chain complexities, rapid digitalisation, and the adoption of artificial intelligence (AI). He emphasised that industries are at a crossroads and must focus on improving productivity, optimising energy use, and enhancing reliability to stay competitive.

The forum, inaugurated by Institution of Engineers Malaysia (IEM) Penang Branch chairman Dr Lee Choo Yong, gathered over 100 participants from sectors including semiconductors, utilities, power generation, electrical and electronics, oil and gas, water and wastewater, data centres, and manufacturing. Andrew highlighted Malaysia's role as a regional manufacturing powerhouse, particularly in the semiconductor and advanced electronics sectors, with manufacturing contributing approximately 23 per cent to the nation's gross domestic product.

Penang's reputation as the 'Silicon Valley of the East' underscores its significance in attracting investments and fostering innovation across the semiconductor value chain. Andrew stressed that energy efficiency is now a business imperative, with energy costs constituting around 25 per cent of operating expenses.

Citing ABB's Energy Efficiency Report 2026, Andrew revealed that 63 per cent of industrial companies in Malaysia had already invested in energy efficiency initiatives, while 33 per cent planned to do so within the next year. He pointed out that technologies enhancing efficiency, reliability, and performance are becoming strategic investments.

The forum aimed to offer practical insights and solutions for semiconductor manufacturing, adaptive automation, variable-speed drives, smart motors, power reliability, emissions monitoring, digitalisation, AI, and asset performance optimisation.