Electronics Industry In Malaysia

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Over the 40 years electronics industry of Malaysia has been diversified, in the sense that many of the foreign investors come to manufacture the electronic good in this country. For example, in 2010 many of the companies of Japan and US entered into the country for manufacturing the products. Putting focus to the electronics industry; this industry has largest work force in comparison of manufacturing industry of the Malaysia. This happened due to large amount of foreign investments in the country. There are some main reasons with are listed below, as to why foreign investors are getting attracted to this country for the investments: • There is comparatively cheaper labor in this country than nearby countries • Tax rebate from the government …show more content…

Singapore is more expensive country than Malaysia, this factor makes the foreign investors to go into this country and attractiveness increases towards the Malaysia. The high growth of of investment has increased the labor supply and wage rates due to which Malaysia started to become less cost competitive country globally. To tackle this situation Malaysian government has taken a step by upgrading the production system by investment in automization. We can refer below table which shows the value added contribution of manufacturing sector, including electronics industry, in Malaysia We can depict from the table that electronics industry contributed in value added by 3.0% then 7.7% from year 2000-2005 and 2005-2010 respectively. 6.0 Contribution of Electronics …show more content…

The growth in electronics industry was possible due to facilitation of the development of necessary support services. These services are long term investment, as these will attract more inflow of investment into the country. 6.3 Growth Contribution in Employment As we know that manufacturing processes required huge amount of resource as compared to IT service or other sector. So, the same was happened in Malaysia that manufacturing sector is catering to 1/3 part of employment and total 28% job opportunities are created in the time span of 2001-2005. The employment rate was grown with rate of 4% from 2001-05 (As per Economic Planning Unit, 2006). 7.0 Policies and Political Environment Basically, growth and expansion of any of the sector and industry are also dependent on the policies of the country and political environment of that country. Malayisan government has taken a number of steps in order to keep the growth of manufacturing sector continued specially electronics industry.Government has kept continuing to publish the industrial master plans. Three plans are given

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