THE MALAYSIAN AMERICAN ELECTRONICS INDUSTRY (MAEI)
ANNUAL SURVEY 2011
- MAEI member companies reported export sales growth of 9.1% at RM56.5 billion.
- 34% increase in Design & Development expenditure.
- Increased Investor Commitment in Design & Development and Shared Services push Malaysian Electronics Industry Up The Value Chain.
Kuala Lumpur, May 29, 2012 – The Malaysian American Electronics Industry (MAEI), an industry committee of the American Malaysian Chamber of Commerce (AMCHAM), today unveiled the 2011 Annual Survey Report at the 8th Invest Malaysia capital market conference held here. The results of the survey, which was conducted among 23 MAEI member companies, were announced by Sanjeev Nanavati, President of AMCHAM and Dato’ Wong Siew Hai, Chairman of MAEI, with the presence of Johan Merican, CEO of TalentCorp.
Highlights of the report showed a 34.1% increase or RM1.67 billion in expenditure in Design & Development (D&D) activities from the MAEI companies, which represent a five-fold growth in D&D activities since 2001. According to Sanjeev Nanavati, “The electronics industry continues to be a very important contributor to Malaysia and Malaysia is an increasingly attractive destination for the industry”.
Speaking at the press conference, Dato’ Wong Siew Hai, Chairman of MAEI, said, “The growth of MAEI companies in design and development (D&D) as well as in shared services reflect investors’ commitment in moving up the value chain in recent years. As well, the increase in shared services functions not only creates more jobs for locals but also reinstates the companies’ confidence to grow their operations in Malaysia.”
The MAEI members employed over 84,000 workers in 2011. Of the 12,000 engineers, 41% of total engineers are involved in D&D related activities, which shows a significant increase of over 1,000 D&D jobs from 2010. Member companies continue their support in employee training and development activities by increasing expenditures by 40%.
Contribution to Malaysian Economy
In 2011, MAEI member companies reported export sales growth of 9.1% at RM56.5 billion. This significant increase in growth is due 2 additional MAEI companies. With reference to 21 companies in 2010, export sales declined by 6%. However, without PC related companies, MAEI exports increased by 6.9%. Total MAEI semiconductor sales increased by RM 4.6 billion, equivalent to 50% of Malaysia’s total Semiconductor sales growth from 2010.
Member companies continued to spend heavily on local subcontracting, a 45% increase at RM1.8 billion; capital investments at RM 2.9 billion, which represent 5% of Malaysia’s total capital expenditure recorded. The total salaries paid out by MAEI member companies in 2011 was RM 4.94 billion, up 67.5% from 2010.
The annual average salary per employee of MAEI workforce is 47% higher than the annual average salary per employee in the manufacturing sector.
Achieving Industry Excellence
Dato’ Wong said, “MAEI applauds the efforts by the Malaysian government in addressing issues on illegal foreign workers, increasing talent pool, providing education grants and various forms of support to the industry. In particular, MAEI companies worked closely with TalentCorp and benefitted from FasTrack, the Returning Expert Programme and the Residence Pass.”
To offset the rising costs of doing business, MAEI will continue working with the Malaysia government to increase the quality and efficiency in the electrical and electronics ecosystem. MAEI recommends continuous improvement on legislation review, workforce quality and infrastructure management upon feedback gathered from MAEI members.
2012 Market Outlook
The electronics industry worldwide is expected to experience a positive growth in 2012, in spite of the uncertainties of the economy in E.U. and the U.S. Areas of growth would revolve around semiconductor and components in mobile devices, ultra book, servers for cloud computing, optoelectronics and embedded technology.
MAEI forecasts RM58 billion in exports (approximately 3% growth from 2011) in 2012. On the industry front, MAEI companies see potential increases in employment in knowledge-based workers and through the upgrading of facilities.
Dato’ Wong said, “MAEI companies see enormous potential for D&D. This will help transform Malaysia to be an industry leader in this region on value-added activities. Our member companies are keen to work closely with the authorities to build greater efficiency and quality in the industry.”
AMCHAM Malaysia (The American Malaysian Chamber of Commerce) was founded in 1978 as an international, non-profit, private-sector business association. It comprises nearly 800 members representing over 350 American, Malaysian and other international companies. The Chamber is affiliated with the Asia Pacific Council of American Chambers of Commerce (APCAC) and with the U.S. Chamber of Commerce, which is the largest chamber of commerce in the world.
The Malaysian American Electronics Industry (MAEI), an industry group of the American Malaysian Chamber of Commerce (AMCHAM) was formed in 1989. The Committee aims to enhance member-government relations and to highlight the American electronics industry’s contribution to the Malaysian economy. MAEI is made up of 24 member companies covering both the semiconductor and the non-semiconductor sectors. All of MAEI’s members are U.S. based companies, many of whom have been doing business in Malaysia for the last four decades.
For more information, contact: