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Electrical & Electronics Industry in Malaysia PDF Print E-mail

The electronics industry is the leading sector in Malaysia's manufacturing sector, contributing significantly to the country's manufacturing output (29.3 per cent), exports (55.9 per cent) and employment (28.8 per cent).

In 2008, gross output of the industry totaled RM167.2 billion (US$53.9 billion), exports amounted to RM233.8 billion (US$75.4 billion) andthe industrycreated employment opportunities for 296,870 people.

Over the years, Malaysia's electronics industry has developed significant capabilities and skills forthe manufacture of a wide range of semiconductor devices, high-end consumer electronic and information and communication technology (ICT) products.

Electronics manufacturers in the country have continued tomove-up the value chain to produce higher value-added products. These include intensification of research and development efforts and outsource non-core activities domestically.

The electronics industry in Malaysia can be categorised into three sub-sectors:

a)   Consumer Electronics

This sub-sector includes the manufacture of colour television receivers, audio visual products such as digital versatile disc (DVD) players/recorders, home theater systems, blu-ray, mini disc, electronics games consoles and digital cameras. The sector is represented by many renown Japanese and Korean companies, which have contributed significantly towards the rapid growth of the sector.

The leading companies are now undertaking R&D activities in the country to support their Asia Pacific markets. Exports of consumer electronic products in 2008 amounted to RM21.5 billion (USD6.9 billion).

b)   Electronic Components

Products/activities which fall under this sub-sector include semiconductor devices, passive components, printed circuits and other electronic components such as media, substrates and connectors.

The electronics components is the most important sub-sector andaccounted for 58.7 per cent of the total investment approved in the electronics sector in 2008.

Majority of the investments were from foreign sources. The sub-sector is dominated by the semiconductor players, mainly undertaking packaging, assembly and test.

The industry is very volatile and is affected by the global economic slow down. It constituted 91.5 per cent of the total export of electronic components or 38.4 per cent of the total electronics export for 2008.

c)   Electrical

Electrical products are categorised into three sub-sectors, namely industrial equipment sub-sector, electrical component sub-sector and household appliances.

There are presently more than 381 companies producing a wide range of products such as household electrical appliances, wire and cables and electrical industrial equipment.

The major electrical products produced in our country are household appliances such as air-conditioners, refrigerators, washing machines, vacuum cleaners and other electrical appliances.

Manufacturing activities in the electrical industry have evolved from mere assembly to design and marketing of ‘local' brands for the regional and global markets.

In 2008, Malaysia exported electrical and electronic products valued at RM13.74 billion (US$3.8 billion) while import products for electrical and electronic products valued at RM10.28 (US$2.8 billion).

The capital investment in this sub-sector amounted to RM9.0 million (US$2.5 billion) for the year 2008.