KUALA LUMPUR: The Malaysia External Trade Development Corporation (Matrade) is eyeing growth of at least one per cent in exports for the Electrical and Electronic (E&E) sector this year on the back of a challenging economic climate.
Chief Executive Officer Datuk Dzulkifli Mahmud said the reality is that many businesses globally are still weathering the effects of volatile currency fluctuation, falling oil prices as well as slow economic growth, which has not spared the E&E industry.
“This has impacted Malaysia’s trading partners and slowed demand for our products. In addition, we are also facing competition from regional peers, especially Vietnam.
“If we can achieve a positive outcome this year, it is something we should be happy about. But, it would be tough to match the same growth as last year,” he added.
He told reporters this at a seminar themed, “Semiconductor: The Beginning of a New Era“, organised by Matrade here today.
Despite the slower growth this year, Dzulkifli said he was still positive over the sector as it continues to be the backbone to industries in Malaysia.
E&E remained one of the top contributors to Malaysia’s exports in 2015, posting RM277.92 billion or a 8.5 per cent growth from previously. Semi-conductors accounted for 49.5 per cent of E&E exports.
Meanwhile, E&E exports totalled RM207.89 billion in the first nine months of this year.
The top products included semi-conductor devices, integrated circuits, transistors and valves, automated data processing machines as well as telecommunications equipment.
Despite perception that the semi-conductor industry may reach a stagnant point or face a downturn, Dzulkifli maintained that industry players had never failed to weather the effects.
“With the emergence of “Smart Cities” and digital applications through big data, the Internet of Things and Industry 4.0, the sector will transform accordingly and is set to be the main mover of the world’s economy,” he said.--BERNAMA