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Electric And Electronic Industry In Malaysia

Since the 2010s, the electric and electronic industry is just about the leading sector in developing industry inside our country - Malaysia. This industry has a part of distribution to the country's developing productivity, exports, and also work. This is actually the data that gathered from the network instances:

The gross result in 2010 2010 of the industry totaled RM166. 2 billion or US$55. 8 billion (in 2008: RM167. 2 billion or US$53. 9 billion), exports amounted RM249. 8 billion or US$83. 8 billion (in 2008: RM233. 8 billion or US$75. 4 billion) and the industry created employment opportunities for 336. 408 people (in 2008: 296, 870 people).

Over the years of ages in this industry, specifically for electric industry in Malaysia, there are recently developed devices with advanced capacities and skills. It can be seen through the development on electric tools such as semi-conductor devices, high-end consumer electric and information and communication technology (ICT) products.

Apart from that, digital components are the most important sub-sector under this industry. It accounted for 44. 6 per cent of the total investment approved in the industry. Semi-conductor devices supply the greatest syndication, which composed of 30 per cent of the total share of the exports. It also contributes 92. 7 per cent of the full total export of electronic digital components or 43. 6 per cent of the total electronics export for 2010 2010. However, there is a change in the industry. The global trend in the portion has resulted in many semiconductor companies commencing specialization and implementing new systems such as nano-technology in their creation processes. While using evolving development in this electronic industry, they built up a solid network of inter-industry and also intra-industry linkages in the gadgets industry. There's a total of 170 small-size companies and medium-size companies have been forged in linkage with lager-size companies. It is notably in the areas of gadgets, machineries, fabricated steel products and engineering support sectors.

On the other palm, another rising pattern that may be referenced is the introduction of local companies that form area of the supply chain. Currently there are at least 50 companies operate as contract developing services (CMS) or electronic making services (EMS).

As a brief short on the electronic digital sector, it could be reported to be shifted into an increased value-added products and activities accordingly to the immediate globalization and increasing cost stresses. Many businesses has been upgraded into integrated developing centre which collectively developed with processing theory on research and development, product design and development, marketing and syndication activities.

Furthermore, Malaysia's consumer electronics devices market can be an addressable market for computing devices, mobile handsets and AV devices. It was projected at about RM32. 48million in 2011 which is expected to increase to RM40. 98billion in 2015. That is due to increasing earnings and growing affordability of key products.

Vendors will continue steadily to target products innovation to drive earnings, with expansion areas. The main companies are actually starting R&D activities in the country to support their global and Asian market segments. Exports of consumer digital products in 2010 2010 amounted to RM25. 8 billion. Multinational companies sustained to have a stronghold on gadgets in Malaysia. Because of their strong brand equity, they were in a position to record quality value growth. Additionally the utter amount of competition between these companies has powered down prices and so making consumer electronics less expensive. By offering customers the good thing about in-store customer service, specialist merchants such as Senheng Electric continued to be the preferred distribution channel for consumers. Senheng Electric specifically has prevailed because of the rapid expansion of its outlets across the country. Reaching new levels of convenience and entertainment, products will continue steadily to see strong progress. For goods with old technology are forecasted to see a slowdown in demand as their functions have been superseded by newer solutions.

For another aspect in this industry, the electrical sector can be grouped into three main subsectors that happen to be electrical professional equipment, electric powered components and electrical consumer. Notable development is seen in the sector of the electrical consumer products, after the domains of foreign-owned. For example, since increased investment in R&D centres has paid off handsomely, Malaysia is currently one of the world's greatest exporters of home air-conditioners. Malaysian brands have become household brands not only locally, but also in the ASEAN region and the center East. Local company also a major exporter of air-conditioners looked after exports over 50% of its creation to European countries, USA, Australia, the center East and Africa.

The major electrical power products produced are home appliances. You will find currently more than 381 companies producing an array of products such as household electrical appliances, wire and cables and electrical power industrial equipment. They are mainly local companies such as Pensonic, and Tenaga Switchgear. Creation activities in the electronic industry have developed from mere set up to create and marketing of local' brands for the regional and global markets. The administrative centre investment in this sub-sector amounted to RM13. 2 billion (US$4. 4 billion) for the year 2010.

Other sub-sectors experiencing swift growth will be the automotive electric sub-sector which is fuelled by the advent of intelligent travelling systems. The motor vehicle connectors market is tipped to be the most effective growing portion in the global automotive electric products market. Another must-watch portion for automotive electric products is the motor vehicle battery packs market, which is projected to take into account the market share of 19. 8% in 2009 2009, and is the second major section in the automotive electronic products industry.

Current issues of Electric and Electronic Industry

The Electric and Electronic Industry is vital to the united states as it will influence the country economy. That is mainly because every household will depend on the electrical devices to complete their process such as light element of have a brighter room, personal computers and notebook computers to do their job and etc. where in fact the Electric and Electronic Industry have included the consumer electric, electrics element and electrical. All these are essential to the complete nation as factories, offices, everyone needed them.

The issues face by the Electric and Electronic Business are as below.

Malaysia's semiconductor developing productivity is declining.

The output keep on declining is basically because the lower-end development is continuously transfer out of Malaysia. This switch has powered Malaysia to go up the electronic value chain lately, for example, in the higher value-added manufacturing and R&D space. Execution of initiatives, strategies and ideas by Malaysia allows the country to stay competitive.

Lack of Skilled Human being Resources

As the growth of the industry helps to keep on growing throughout the years, the condition of lacking of skilled recruiting has always been one of the factors face by the E&E in Malaysia. If Malaysia wished to remain in the global resource chain they must increase, or trained more individuals source in this sector. Besides that, the MNCs are concerned about the lack of talent and the inability to get and retain skills. Besides that, there are college or university which provide such training however, the product quality are not there. Due to the shortage of recruiting, the government was causes to reject an investment job because they're unable to supply 1, 000 designers for it. On the contrary, because of the lack of upgrading of solutions in Malaysia, the population of scientist and designers in the R&D is very low as well as the amount of investment in R&D low which in turn causes them to unable to support the population of manpower although they are lack of them.

Lack of the required scientific know-how.

Due to the new equipment like the machines used in the factory or new machines that were bought are too new, nobody know how to use it. The brand new technology which required to help improve the productivity become pointless if no one know how to function the machines and do not have the effort to try and put it to use as well.

Lack of financing for new product development

Besides that, the government did not give sufficient finance for the sector to build up their product. As I've mentioned previously, the investment in the R&D sector is low. This causes them struggling to improve their product and increase productivity because they are insufficient capital to do so.

Lack of usage of new markets

In the semiconductor sector for the E&E industry, because of the insufficient a matured eco system, our local IC design and processing companies are required to seek overseas for businesses. Nevertheless, the local companies do not have the gain access to or rather lack of the usage of the global resource chain. Therefore, its expansion potential become limited and the firms who perform in this sector have to get for another option such as teach and reskill the neighborhood people to be able to increase the shortage of human resources in the industry,

Development tools too expensive to procure

The tools are very costly and sorts great barrier for the neighborhood to execute its business effectively. This is because a single professional permit for IC design for EDA tools is too costly as it cost millions of USD. The EDA is very costly and at the same time there is lack of potential local customer and replacing the permit will be very expensive as well.

New product enterprise is too risky a proposition

The authorities only offers limited finance for the industry, hence it'll be very risky to build up new product as the local companies can only just depend on themselves. Hence, it is too high-risk for the SMI to go after. The SMI will favor in participate in MNCs' product development process because the risk is lower even though the government does not give any support either.

Importance of Electrical and Electronic Industry in Malaysia

Nowadays, the electronic & electronics (E&E) industry is the leading sector within the production sector in Malaysia and be the largest contributor to developing output, career, investment, exports and imports. The E&E industry is a diverse industry by offering products with unique market characteristics. Malaysia is just about the major global making hub for the E&E industry since there is large numbers of multinational companies experienced chosen Malaysia as their bottom part.

The electronic & gadgets industry is an important contributor to the nationwide market. The sector has spawned successful local businesses and almost every leading global firm operates here. The full total export of E&E products in Malaysia is accounted for 30-40 percent. It is the higher export value among all the establishments in Malaysia. There are some leading electronic manufacturing services companies such as Flextronics, Jabil, Celestica, and Plexus. Those multinational companies provide opportunities for local companies to be a part of the supply chain. Some of the small businesses in the country have grown to be public-listed companies or some of them have absent global. This trend is adding to the overall economy of the country and brings a smart future to the nation.

Besides that, the electrical power and consumer electronics industry also is an important sector in Malaysia as it generates employment opportunities for hundred thousand of individuals in Malaysia. With this fast- paced and technologically- motivated environment and many reputable companies about the world, this sector is well located in Malaysia to offer the jobseekers precisely especially for the fresh graduates. This is because fresh graduates able to look at the challenge at different angles and present their new ideas or alternatives toward the challenge.

In addition, electro-mechanical and gadgets industry in Malaysia is rolling out a significant features and skills in processing variety types of semiconductor devices, consumer electronics and information and communication technology (ICT) products. This assists the manufacturers in Malaysia to keep to move up to create higher value added products.

In conclusion, electric and electric industry accounted for a high value for total nation's export Therefore, government should support the manufacturers in E&E industry to be able to go up the worthiness string and bring a better future to the country.

Consequences of dropdown of electric and electronic digital industry

The growth of the electrical power and gadgets (E&E) industry is inspired by the entire growth of the global market for electro-mechanical and gadgets products.

When there may be slowdown in E&E industry, although exports in Malaysia are varied with many commodities and manufacturers, virtually all export items are damaged at the same time especially electrical power and electronic products. Due to electrical and electronic industry accounted for a big number of production exports about 30-40%, this industry possessed a huge effect on the nation's overall economy. The slowdown of expansion in the industry raises some matter about the falls in competitiveness of this industry will affect and decrease the nation's income as the industrial production decreases. Furthermore, as there's a slowdown of expansion in E&E industry, the revenue of the E&E companies will be lower.

Moreover, the dropdown in E&E industry may cause the drop in investment in the production sector. Foreign investment is vital for a country's financial growth and prosperity. If there is no investment from multinational company, the country's income will be reduced and hence, it'll lead to a reduction in quality lifestyle of individuals. It is because if there is no investment from other overseas countries as mentioned, no jobs will be received and hence, people are no longer in a position to gain income. Subsequently, the typical of living will be decreased.

Besides that, the slowdown of development in E&E industry may cause the unemployment rate boosts because the reduced involvement of E&E business in export means that the united states have less consumers and hence the demand of products will be decreased as well as the demand for labor too. The employees also get worried about their careers because the employers will fire them and retain foreign personnel as the pay of foreign personnel are cheaper than the locals. To prevent the country from sliding into serious tough economy, government had distributed a stimulus bundle to safeguard and create jobs and assist the private sector to reduce the unemployment rate as well.

In conclusion, the federal government should encourage E&E industry to do more research and development (R&D) to increase the knowledge of the work and enhance to an increased degree of technology and hence, brings a brighter future to the industry.

Recommendation and action plan on improving digital and electro-mechanical industry

There are a whole lot of related current issues with our country's electronic digital and electrical industry nowadays. We discovered that there some conditions that we must monitor as it bring some significant results to the continuing future of this industry which can straight impact the economics in our country. As a matter of known fact, one of the best ways to boost our electronic and electronic industry is by training and applying solar technology on the electrical power or electronic kitchen appliances. As we all know, solar energy is among the finest energy that can help to preserve the environment which is also called the most eco-friendly form of energy that can be utilized in order to aid almost any electronic and electrical appliances. People worldwide have come conscious regarding the safe practices of the surroundings and they're looking for ways of utilizing this solar energy. Therefore, it is a very good idea when applying solar energy on the technology gadgets.

In this new era, there are many different kinds of solution to apply solar energy into the digital and electrical equipment, that can be found in the market, such as solar powered energy chargers, solar powered energy heaters etc. One of the most important benefits of these solar powered energy electrical equipment is that they are easily carried to different places as the sun light are available everywhere and people need not search for connect. What people want to do with such gadgets is usage of someplace with sun rays. People can also opt to take these solar powered energy appliances even when they go on a vacation or on some kind of long trip. These can be like solar powered energy chargers for mobile phones and notebook computers which are incredibly convenient for the students and lecturer who need to travel on a regular basis. The need to carry extra batteries will not arise when a solar power electric battery charger can be found. Most gadgets and appliances can be recharged by using a solar power battery charger. The main benefit of these solar power high technology devices are that they can be used often for charging purposes and never have to pay for the extra power.

Another strong reason to support the factors that making use of solar technology on the electrical and electronic devices is usually that the sunlight are free of charges and it generally does not cause any unsafe pollution to the environment. Furthermore, although solar power is an energy source that people have only just lately tapped into, it may easily become the main energy source into the future. For your information, solar powered energy is a alternative and natural source it is therefore non-polluting. Unlike olive oil, solar power will not emit greenhouse gases or carcinogens into the air which can kill our ozone covering. Actually, light and energy from the sun costs little or nothing. Once you get the gear to collect and convert energy from sunlight, it costs you nothing at all to run. It is because solar cells require little maintenance which might able to go on a lifetime.

Besides, to be able to enhance the electronic and electronic industry, a country's federal play a very important role as the improvement of this industry can also bring the development of a country's financial. The country's federal government should always have some subsidiaries for electric industry to handle their research and development. The reason the government subsidies this industry to carry out all kind of research activities is to encourage them to produce some exceptional products that induce a chaotic in this industry internationally. Providing realistic subsidiaries for this sector which consider as one of the major sector in a country can really help to encourage the electronic industry to increase drastically. The entrepreneur will feel assured and enthusiasms to find and create new knowledge about scientific and technological ideas of electronic digital gadgets for the purpose of uncovering and enabling development of valuable services, functions, and services. In an industry that is changing fast, companies must continually revise their design and range of products. That is necessary anticipated to constant technology change and development as well as other competition and the changing preference of customers. Without an R&D program, a firm must rely on strategic alliances, acquisitions, and networks to utilize the improvements of others. The government or the united states have to be very understand with this example and prepared to provide solution if indeed they wished to have an improved electronic and electro-mechanical industry. Lastly, ones should never ignore that research and development is one of great importance in business as the level of competition, production operations and methods are speedily increasing around the world one of the industries. You can find few significant importances in the field of marketing where companies keep an eagle attention on rivals and customers to keep pace with modern movements and examine the needs, requirements and desires of these customers. Hence, through R&D, the business owners of this industry can prepare yourself to contend with other countries' competitors with an increased return of profits.

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