KUALA LUMPUR – The double-digit growth in exports of electrical and electronic (E&E) products will likely continue in March and the remainder of 2021, following the improving outlook for the external environment post-pandemic.
Deputy International Trade and Industry Minister Datuk Lim Ban Hong said E&E exports grew 13.1% in January and the expansion continued the following month (24.4%).
Demand for E&E goods is expected to increase in view of the strong growth projection for global product sales and revenues in 2021, with information technology infrastructure at 6.2%, smartphones (11.4%) and cloud computing (18.4%), he said.
“The strong global demand for E&E products will support the growth of our local E&E production and export, because six out of 12 of the world’s largest semiconductor companies and three out of nine of the largest LED companies are operating in Malaysia,” he told a press conference after launching the Malaysia Semiconductor Industry Association here today.
In his speech earlier, he said the E&E industry continues to be a key driver of industrial development, and has contributed significantly to gross domestic product, export earnings, investments and employment for the past 50 years.
Despite 2020 being challenging due to Covid-19, he said, Malaysia’s total trade in E&E products was worth RM638.9 billion, where exports rose 3.5% to RM386.1 billion, while imports climbed to RM252.8 billion.
Major trading partners for the country’s E&E goods are China, Singapore, the United States, Hong Kong and Taiwan.
In terms of productivity, the E&E subsector recorded a 4.5% productivity growth last year, the highest among the nine priority subsectors.
Approved investments for the subsector in 2020 totalled 148 projects and were valued at RM15.6 billion, with these projects 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%).
He said foreign investors’ confidence in pursuing opportunities in Malaysia, with existing E&E companies continuing to expand and diversify their operations, showed continued trust in the nation. – Bernama, April 6, 2021
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