Page 6 - Malaysia Exporters of Electrical & Electronics Directory 2011-2013

v

Malaysia Exporters of Electrical and Electronics Directory 2011-2013

A Landscape of the Electrical and Electronics

Industry in Malaysia

S

ince the establishment of the first semiconductor plant in Penang in 1972,

Malaysia has become a major global manufacturing hub for the electrical and

electronics (E&E) industry, as attested by the large number of multinational

companies from the USA, Japan, Europe, Taiwan and Korea which have chosen

Malaysia as their base. Unsurprisingly, the E&E sector has grown into Malaysia’s

largest contributor to output, employment, investments and exports.

Malaysia’s phenomenal success can be attributed to a winning combination of pull

factors: a stable government, sound economic policies, topnotch infrastructure

and a skilled knowledge workforce. As a result, Malaysia has developed significant

expertise for the manufacture of a wide range of semiconductor devices, high-

end consumer electronic and information and communication technology (ICT)

products.

Electronics Sector

In the 1970s, the government

devised a shift from an import-

substitution to an export-oriented

focus. Accounting for almost 90%

of the E&E industry in Malaysia,

the electronics sector is the main

contributor to Malaysia’s gross

domestic product (GDP) growth.

More than 1,500 companies have

emerged within the electronics

industry, encompassing three

broad subsectors i.e. electronics

components,consumerelectronics,

and industrial electronics.

Within the electronics components subsector, semiconductor devices are the

largest contributor, comprising more than 30% share of the E&E exports in Malaysia.

Malaysia is currently the world’s leading location for semiconductor assembly

and test operations, with more than 70 mostly multinational companies (MNCs)

specialising in these devices.

INDUSTRY OVERVIEW

Source: Department of Statistics, Malaysia