Double-digit growth in E&E exports to continue, says deputy minister
06 Apr 2021
KUALA LUMPUR (April 6): The double-digit growth in exports of electrical and electronic products (E&E) will likely continue in March and the remaining months of this year, following an improving outlook for the external environment post Covid-19.
Deputy International Trade and Industry Minister Datuk Lim Ban Hong said E&E exports grew by 13.1% in January 2021 and the expansion continued in February 2021 with a 24.4% growth registered.
He said demand for E&E is expected to remain higher, in view of strong growth projections of global product sales and revenue for 2021, with information technology infrastructure at 6.2%, followed by smartphone (11.4%) and cloud computing (18.4%).
“Strong global demand for E&E products will support growth of our local E&E production and exports because six out of 12 [of the] world’s largest semiconductor companies and three out of the nine largest LED companies are operating in Malaysia,” he told a press conference after launching the Malaysia Semiconductor Industry Association (MSIA) here today.
Earlier in his speech, Lim said the E&E industry continues to be the key driver of industrial development and had contributed significantly to gross domestic product (GDP), export earnings, investments and employment for the past 50 years.
Despite 2020 being a challenging year due to the impact of the Covid-19 pandemic, Malaysia recorded total trade in E&E products worth RM638.9 billion, where exports rose 3.5% to RM386.1 billion, while imports rose to RM252.8 billion.
Malaysia’s major trading partners for E&E products include China, Singapore, the US, Hong Kong and Taiwan.
In terms of productivity, the E&E sub-sector recorded a 4.5% productivity growth in 2020, the highest among the nine priority sub-sectors.
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 total investments at RM13.5 billion (86.5%), while domestic investments brought in RM2.1 billion (13.5%).
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 to their continued trust in the country’s investment environment.
On the MSIA’s establishment, he hopes the association could help the government enhance the E&E industry in terms of research and development (R&D), design and fabrication of semiconductors.
He said the setting up of the 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 Aspirations.
Source: Bernama
