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Electronics Industry in Malaysia

The electronics industry in Malaysia is an important sector and contributes appreciably to the nation’s manufacturing output, exports, and employment. Last year, the gross output stood at Ringgit Malaysia (RM) 167.2 billion, exports at RM 233.8 billion, and employment was created for 296,870 people.
Over a number of years, the electronics industry in Malaysia has built up noteworthy capabilities and skills for the production of extensive range of semiconductor devices, high-end consumer electronics, and information and communication technology (ICT) products. Electronics manufacturers have continued to move up the value chain to manufacture value-added products.
Electronics industry in Malaysia can be category into three sub-sectors:
Consumer Electronics 
This sub-sector comprises the production of colour television receivers, audio visual products like digital versatile disc (DVD) players/recorders, home theatre systems, blu-ray, mini disc, electronics games consoles and digital cameras. A good number of reputed Japanese and Korean companies represent the sector and they have made important contributions to the growth.
The foremost companies have now commenced R&D work in the nation to prop up their Asia Pacific markets. Exports of consumer electronic products last year totalled RM 21.5 billion.
Electronic Components
This sub-sector comprises products like passive components, semiconductor devices, printed circuits, and other components like media, connectors, and substrates. The sub-sector is very important and accounted for 58.7% of the total investment granted in the electronics sector in 2008. A bulk of the investments was from foreign sources. The sub-sector is ruled by the semiconductor participants, chiefly undertaking packaging, assembly and test.

The industry is unstable and is affected by the global economic downturn. It made up 91.5% of the total export of electronic components or 38.4% of the total electronics export for 2008.
Electrical products are grouped into three sub-sectors, namely industrial equipment, electrical components, and household appliances.  At present, there are more than 380 companies manufacturing a wide range of products like household electrical appliances, wire and cables, and electrical industrial equipment. The main electrical products manufactured in the nation are household appliances like air-conditioners, refrigerators, washing machines, vacuum cleaners, and other electrical appliances.

Manufacturing activities in the electrical industry have grown from assembly to design and marketing of local brands for the regional and international markets. Last year, Malaysia exported electrical and electronic products worth Ringgit Malaysia (RM) 13.74 billion. Import products for electrical and electronics were worth RM 10.28 billion.

Last Updated on: 18-11-2009

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