SHAH ALAM, May 19 — Hi-tech, advanced sectors like electrical and electronics (E&E), aerospace and life sciences have been identified as among Selangor’s four strategic priority sectors that leverage its strengths, said PricewaterhouseCoopers (PwC) in a report.
Titled Selangor: Malaysia’s prime hub for growth in Asia, the report called the state Malaysia’s economic powerhouse, as it attracted more than US$6 billion in foreign direct investment and over US$18 billion in domestic direct investment in 2024.
“To unlock greater investment potential, Selangor has established four priority sectors that capitalise on the state’s competitive advantages and emerging market opportunities, namely, E&E and machinery and equipment (M&E), aerospace, automotive and rail, life sciences, and global business services (GBS) and digital technology,” it said.
PwC noted that Selangor’s E&E and M&E sectors accounted for some of the country’s highest approved investments in 2024, having attracted US$2 billion in 2024, or 12.3 per cent of the national total.
The sectors also contributed nearly 30 per cent of Selangor’s manufacturing output, driven by semiconductor, solar, LED and advanced machinery industries, it said.
“Aligned with national aspirations, Selangor offers a high-value manufacturing base anchored by modern, smart industrial parks that foster the growth of robust industrial ecosystems, including semiconductor design and integrated halal facilities.
“Besides that, a strong talent pipeline accelerates adoption of automation, robotics, and IoT, boosting productivity and export growth within the state.”
The report said Malaysia remains among the world’s leading semiconductor exporters, with Selangor playing a central role through its Integrated Circuit (IC) Design Parks in Puchong and Cyberjaya.
Aerospace, EV hub
PwC noted that Selangor’s aerospace, automotive and rail sectors recorded US$1.1 billion in approved investments in 2024, one of the highest among Malaysian states.
The state was described as the heart of Malaysia’s ambition to become a regional leader in aerospace and electric vehicle (EV) manufacturing, supported by infrastructure such as the Selangor Aero Park (SAP) at KLIA Aeropolis and the upcoming automotive valley in Serendah and Lembah Beringin.
“Selangor accounts for 65 per cent of Malaysia’s aerospace industry, which is centred (on) the Kuala Lumpur International Airport (KLIA) and Subang Airport, (and having generated) over 14,000 skilled jobs.
“Selangor also commands Malaysia’s automotive landscape, hosting 55 per cent of the nation’s automotive suppliers and 38 per cent of its manufacturers. The North Selangor region is a thriving manufacturing hub, and this dominance is set to accelerate with the automotive sector slated as a key pillar in the state’s development plans.”
PwC also highlighted Chery’s US$545 million investment in the Beringin High-Tech Auto Valley as a major boost to Selangor’s ambitions in future mobility and EV manufacturing.
Life sciences, digital investment
As for life sciences, which encompasses medical devices, pharmaceuticals, and biotechnology, PwC said Selangor serves as a primary centre of activity, supported by robust government backing, a strong manufacturing base, and advanced research capabilities.
“In 2024, Selangor secured US$297 million in approved investments for life sciences,” read the report.
The global accounting firm said Selangor has also emerged as a key medical tourism hub in Southeast Asia with quality, affordable services, advanced facilities, and English-speaking professionals.
“Together with Kuala Lumpur, the state attracted around 560,700 international patients in 2024, generating US$219 million in revenue,” it said.
Meanwhile, PwC added that Selangor is driving Malaysia’s digital investments, with the state — along with Kuala Lumpur and Putrajaya — capturing approximately 75 per cent of the nation’s US$41 billion total investments.
It said this was facilitated by the state’s comprehensive ecosystem, from data centres and cloud infrastructure to GBS and digital creative content.
“Digital investments made between 2H 2022 and 2H 2025 in the Klang Valley are projected to generate 101,746 jobs, 97 per cent of which are knowledge workers,” it added.
PwC also said Selangor offers a robust digital talent pipeline through its network of higher learning institutions and dedicated upskilling initiatives, including the Selangor Digital School, Selangor Gigabit Network (SEGNET) and Selangor Human Resource Development Centre (SHRDC).
