Malaysia: E&E, Pharmaceutical, Aerospace And ICT Catalysts To Boost Exports

KUALA LUMPUR, Oct 27 (Bernama) – Malaysia has identified four catalytic export sub-sectors to further boost its exports, namely, electric and electronics (E&E), pharmaceuticals, aerospace, and information and communications technology (ICT) including creative content. The Ministry of Finance, in the 2017/18 Economic Report, said global demand for E&E products was substantial with global import having a compounded annual growth rate of 1.4 per cent between 2012 and 2016, while in Asia, the growth was even higher at 3.5 per cent. The E&E sub-sector, which accounted for a significant proportion of Malaysia’s total exports at 36.6 per cent in 2016, benefited from the global demand for Internet of Things such as mobile devices, storage devices, optoelectronics and embedded technology. “Moving forward, efforts will be intensified to further develop the E&E sub-sector, particularly in high-end segments such as system integration, advanced energy storage, electric vehicle and big data,” it said. Meanwhile, the ministry said, the pharmaceutical sub-sector offered vast opportunities for local manufacturers and it was crucial that it established strategic partnerships, as well as, enhanced research, development, commercialisation and innovation capabilities to diversify product offerings and further widen market access abroad. Malaysia, which is fast-gaining recognition in halal pharmaceuticals, was the 14th largest exporter of pharmaceutical products in Asia amounting to US$174 million in 2016. On ICT, it said, Malaysian ICT exporters were gaining momentum and capabilities, with Multimedia Super Corridor Malaysia registering export growth of 13.5 per cent over the period between 2012 and 2016. Of this, creative content and technologies was the fastest growing segment expanding 26.3 per cent. “The increasing uptake of mobile computing is expected to boost demand for new and improved content applications, providing a broad range of opportunities for local content designers, engineers and developers to further enhance exports of creative content,” it said. In terms of the aerospace industry, the ministry said, it was crucial to further develop Malaysia’s aerospace ecosystem towards enhancing exports whereby between 2012 and 2016, the country’s aircraft parts and components have increased 15.9 per cent to RM5.5 billion (US$1 = RM4.24). The Malaysian Aerospace Industry Blueprint has set a new target for Malaysia to become the regional aerospace hub by 2030, generating annual revenue of RM55.2 billion and creating over 32,000 high-income jobs. “The identification of strategic high-growth areas is critical to ensure resources are focussed on sectors that will yield high export earnings for the country and in this regard, Malaysian exporters have to actively embrace higher value added activities to remain relevant and competitive. “In complementing this, the government will continue to support the business ecosystem through various programmes and initiatives,” it said. -- BERNAMA