Kuala Lumpur: The double-digit growth in the exports of Electrical and Electronic products (E&E) will likely continue in March and the remaining months of this year, following improving outlook for external environment post-Covid.
Deputy International Trade and Industry Minister Datuk Lim Ban Hong
(pic) said the E&E exports grew by 13.1 per cent in January 2021 and the expansion continued in February 2021 with 24.4 per cent growth registered.
He said demand for E&E is expected to remain higher, in view of strong growth projection in the global product sales and revenue for 2021, with information technology infrastructure at 6.2 per cent, smartphone (11.4 per cent) and cloud computing (18.4 per cent).
“The strong global demand for E&E products will support the growth of our local E&E productions and exports because six out of 12 world’s largest semiconductor companies and three out of nine largest LED companies are operating in Malaysia,” he told a press conference after launching the Malaysia Semiconductor Industry Association (MSIA) here Tuesday.
Earlier in his speech, Lim said the E&E industry continues to be the key driver of industrial development and contributes significantly to gross domestic product, export earnings, investments, and employment for the past 50 years.
Despite 2020 being a challenging year due to impact of the Covid-19 pandemic, Malaysia recorded total trade in E&E products worth RM638.9 billion, where exports rose 3.5 per cent to RM386.1 billion while imports rose to RM252.8 billion.
Major trading partners for E&E products were China, Singapore, the United States, Hong Kong, and Taiwan.
In terms of productivity, the E&E subsector recorded 4.5 per cent productivity growth in 2020, the highest among the nine priority subsectors.
Approved investments for the E&E sector in 2020 totalled 148 projects and were valued at RM15.6 billion, whereby these projects are expected to create 19,541 jobs.
Lim said foreign entities accounted for the bulk of the total investments at RM13.5 billion (86.5 per cent), while domestic investments brought in RM2.1 billion (13.5 per cent).
Notwithstanding, he said the confidence of foreign investors in pursuing investment opportunities in Malaysia, with existing E&E companies continuing to expand and diversify their operations, is a testimony of their continued trust in the country’s investment environment.
On MSIA’s establishment, he hopes the association could help the government enhance the E&E industry in terms of research and development, design and fabrication of semiconductors.
He said the setting up of MSIA would greatly assist the E&E Productivity Nexus and Malaysia Productivity Corporation forge a resilient and robust E&E ecosystem to support the nation’s National Investment Aspiration.
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