MATRADE expects Malaysia's E&E exports to perform well in 2022

KUALA LUMPUR, March 29 (Bernama) -- Electrical and electronics (E&E) exports are expected to continue performing well this year despite the ongoing pandemic and global chips shortage supply risks, the Malaysia External Trade Development Corporation (MATRADE) said.

Its director of E&E, ICT, machinery and equipment section Naim Abdul Rahman said Malaysia is now the sixth largest exporter of semiconductors and integrated circuits (ICs) in the world, accounting for 6.3 per cent of the world's total export, and this will continue to support the E&E industry at it represents 61.7 per cent of export products.

"Exports of semiconductors and ICs grew 90 per cent year-on-year over 2020," he said in a webinar "Boosting Malaysian SMEs' competitiveness on the Global Stage" organised by global electronics industry association SEMI Southeast Asia and the Malaysia Semiconductor Industry Association (MSIA).

Naim noted that Malaysia's E&E trade performance continued its upward momentum in January and February 2022 with exports increasing by 19.6 per cent year-on-year to US$20.18 billion (US$1=RM4.21) compared with the corresponding period in 2021.

"In terms of major export products and markets, a similar trend is noticed, whereby all top five export products recorded remarkable growth, while semiconductors remained as the largest E&E export products,” he said.

The top five export products for E&E are semiconductors and ICs; telecommunication equipment and parts; automatic data processing (ADP) machines; parts and accessories for office machines and ADP; and electrical machinery and apparatus.

"Singapore was our largest market, followed by the United States, China, Hong Kong, and Vietnam," he added.

Naim said Malaysia has developed E&E capabilities in areas such as outsourced semiconductor assembly and test (OSAT), automated test equipment (ATE), IC design, and electronic manufacturing services (EMS) with years of accumulated experience serving multinational companies in Malaysia and abroad.

"Malaysian manufacturers will continue to serve as a manufacturing hub for the E&E sector in the region to meet global customers demand.

"Our E&E companies can always be regarded as reliable solution providers that can deliver products and services in time with excellent performance as well as high quality international standards," he said.

Naim reiterated that MATRADE is always ready to connect Malaysian E&E companies and small and medium enterprises to global customers and buyers who wish to outsource their end products and services for local use or global operation export.

-- BERNAMA