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Political and Policy Analysis for the Malaysian Automation and Electronics Industry
Frost & Sullivan, Feb 2007, Pages: 20
The automation and electronics industry is one of the leading manufacturing sectors in all industrialized and industrializing countries of the world. Due to its pervasive applicability, the industry is strongly linked to macroeconomic conditions and is also considered a key indicator of the health of an economy. Growth and development in this industry invariably affects other end-user industries such as consumer electronics and computers. Due to its strong influence on the economy and other industries, trends in this industry are conscientiously tracked. Over the years, the production base of electronic components and semiconductors has shifted from developing countries in North America and Europe to emerging markets in Asia Pacific and Latin America. Low labor costs and unsaturated markets combined with steady economic recovery have made the Asia Pacific region highly attractive to semiconductors manufacturers. With some of the world’s fastest growing economies such as China and India located in this region, the demand for electronic components and applications is expected to expand significantly in the future.
Malaysia is widely recognized as one of the upcoming and increasingly important semiconductor producers of the world. Eager to consolidate the country’s position in this regard, the Malaysian Government has consistently extended support to the semiconductor industry through favorable policies that aim to attract foreign investment and promote private investment. There has been a special focus on developing the high-tech industry in general, resulting in the formulation of policies specifically designed to aid in the growth of the electronics and semiconductors segment. The Third Industrial Master Plan, the Ninth Five Year Plan, and the Science and Technology Policy are some examples of policies that could have a significant impact on the future of the semiconductors segment.
While fiscal and monetary policies are expected to strengthen the economy, trade-related ones are expected to open up new markets. Attempts to encourage local governments to provide incentives to attract higher investment have resulted in the formation of industrial clusters and free economic zones. The Malaysian Government and the associated ministries are also encouraging greater collaboration between the industrial and academic worlds and allocating specific funds for increased R&D.
The Automation and Electronics Country Industry Forecast service provides vital inputs for evaluating the attractiveness of a country and its automation and electronics industry. Besides enabling decision makers to assess the impact of non-market forces, it also helps in identifying new market opportunities. This service provides a strong base for preparing contingency plans. In addition, investors can assess industry-specific risk factors as well as conduct a more in-depth micro research.
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