HONG Kong and China are increasingly becoming major markets for electronics and electrical (E&E) exports, International Trade and Industry Minister Datuk Seri Rafidah Aziz said yesterday.
Hong Kong saw a 37.6% increase and China, a 17.7% jump in their imports of E&E items from Malaysia last year, she said in her opening remarks on the second day of the Miti 2004 dialogue session.
Exports of E&E products comprise industrial electronics, consumer electronics, electronic components and electrical products. They grew by 6.7% in 2003 to RM211.2bil from RM197.9bil in 2002.
In 2003, the five major export destinations were the United States (RM60.7bil or 28.7% of total E&E exports), Singapore (RM37.8bil or 17.9%) Hong Kong (RM20bil or 9.5%), Japan (RM16.3bil, 7.7%) and China (RM10.1bil, 4.8%), Rafidah said.
For the first two months of 2004, exports amounted to RM32.8bil.
As for foreign direct investment (FDI) in the manufacturing sector in 2003, total inflow was RM15.6bil, accounting for 54% of total investments approved, an increase of 35% from RM22.6bil in 2002.
Amidst the increased competition for global FDI, Malaysia was able to continue to attract new investments, as indicated by the higher level of foreign investments in new projects totalling RM11.2bil, compared with RM6.9bil in 2002, Rafidah said.
Foreign investments in new projects were mainly in basic metal products, transport equipment, E&E, petroleum products, including petrochemicals and food manufacturing.
Reinvestment by existing foreign investors totalled RM4.4bil, and was particularly strong in the E&E industry, mainly in industrial electronics and electronic components. Others were fabricated metal products, plastic products, wood and wood products and basic metal products.
The major sources of FDI during the year were United Arab Emirates with RM3.9bil, Britain (RM3.9bil), US (RM2.2bil) Japan (RM1.3bil) and Singapore (RM1.2bil), she said.
These major sources of investments accounted for 80% of total foreign investments in approved projects, she added.
Rafidah also said the Government wanted more MNCs and their local suppliers to adopt RosettaNet, an Internet-based common messaging standard for communications in the global E&E supply chain.
To-date, 61 Malaysian companies had either implemented or were in the process of implementing RosettaNet standards, she said. Bernama
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