The automation and electronics industry is one of the leading manufacturing sectors in all industrialized and industrializing countries of the world. The industry is strongly linked to macroeconomic conditions and is also considered an important indicator of the health of an economy. Over the years, the production base of electronic components and semiconductors has shifted from established markets in North America and Europe to the emerging ones of Asia Pacific and Latin America. This increasing shift can be attributed to the low labor costs and relatively unsaturated markets of Asia Pacific. Along with steady economic recovery, this has helped make the Asia Pacific region extremely 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 products that use these components is expected to increase sharply.
A study of the social and infrastructure scenario in Malaysia reveals the associated and relevant growth opportunities available. While the rapidly aging population represents one of Malaysia’s biggest concerns, it has the potential to open up new growth markets for industry participants. Research and development (R&D) infrastructure in the country and the numerous industrial parks promoted by the Government are also expected to have a positive impact on the industry.
In addition, the Malaysian Government has consistently focused on formulating policies that help attract foreign investors and encourage private investment. Measures taken by local governments to provide incentives to invite higher investment have resulted in the formation of industrial clusters and free industrial zones. The Government and the relevant ministries are also proactively encouraging interaction and greater collaboration between industry and academia as well as setting aside funds for increased R&D.
Frost & Sullivan’s 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.
