Page 7 - Malaysia Exporters of Electrical & Electronics Directory 2011-2013

vi
Malaysia Exporters of Electrical and Electronics Directory 2011-2013
Although the manufacture of semiconductor devices and electronic components
sector still dominates the electrical and electronics industry landscape, clear
changes have been observed in its composition. Semiconductor companies have
moved beyond basic operations such as assembly, testing and packaging of semi-
conductors to high value-added activities such as cutting and polishing of silicon
wafers, IC design and wafer fabrication. The global trend in the segment has led
to many semiconductor companies undertaking specialisation and adopting new
technologies such as nano-technology in their manufacturing processes.
The presence of many large MNCs has also created another positive trend: a very
sizeable local market for components and supporting/ancillary industries. There
now exists a strong network of inter- and intra- industry linkages in the electronics
industry. Since the inception of the Industrial Linkage Programme in 1997, a total
of 170 small and medium-size local companies have forged linkages with larger
companies and MNCs, notably in the areas of electronics, machinery, fabricated
metal products and engineering supporting industries. Another rising trend is
the emergence of local companies that form part of these MNC’s supply chain.
Currently at least 50 companies operate as contract manufacturing services (CMS)
or electronic manufacturing services (EMS).
In other words, the electronics sector is shifting into higher value-added products
and activities, which makes sense, in the light of rapid globalisation and increasing
cost pressures. Many MNCs have already upgraded their operations into integrated
manufacturing centres (IMCs), which fuse the manufacturing concept with research
and development (R&D), product design and development,marketing, and distribution
activities.
Electrical Sector
Dominated by domestic companies,
the electrical sector began in the
1960s as a solution to reduce the
imports of household appliances,
electrical fittings, wires and cables
and automotive batteries. Since
then, the industry has experienced
steady growth, with more than 238
companies producing a wide range
of household electrical appliances
for both the local and export
markets. Source: Department of Statistics, Malaysia