A new survey E&E out today shows that American companies in Malaysia not only remain committed to the country but are planning to increase the level of trade and investment.
The American Malaysian Chamber of Commerce (AMCHAM Malaysia) has launched its ‘Economic Impact Survey 2018’ report – a survey of leading US companies operating in the Electrical and Electronics (E&E) sector.
Here is a snapshot of the key findings:
- A majority of companies recorded strong revenue growth in 2017, and 78% expect that their company will increase its level of trade and investment in Malaysia over coming years
- Total investment to date by US E&E companies exceeds RM42bn, concentrated in Penang but also with a significant presence in Greater Kuala Lumpur
- Total trade-in-goods surplus of at least RM19.5bn, contributing at least 20% of Malaysia’s total international trade surplus for 2017 (RM97.25bn)
- Approximately RM1bn per year contributed in taxes to Government of Malaysia
- US E&E companies created 80,000 jobs in Malaysia, including at least 16,500 skilled engineers, 5,700 staff dedicated to R&D, and 6,200 working in shared services roles
- Two thirds of the companies are almost entirely localized and 99% or more of their workforce is made up of Malaysian citizens
- At least 300 SMEs (small & medium sized enterprises) have been supported in their growth through vendor development programs
The Executive Director of AMCHAM Malaysia, Siobhan Das says after many decades the E&E sector remains one of the core sectors for American investment in Malaysia.
“Our industry group conducted this survey to demonstrate not only that American investment in Malaysia’s E&E sector is strong and ongoing, but also that it is high-value investment that has important economic benefits for the country beyond the immediate FDI and job creation,” she said.
Dato’ Wong Siew Hai, the Chairman of AMCHAM’s Malaysian American Electronics Industry (MAEI) says American companies in this sector are well integrated into the local economy sourcing RM12 billion worth of goods and services locally in 2017 alone.
“While our survey identifies 80,000 high-skilled jobs created by MAEI members, the real number of people who derive their livelihoods from our members’ investment in Malaysia is considerably higher,” he said.
The US Ambassador to Malaysia, Kamala Shirin Lakhdir has welcomed the survey. “American businesses have performed well by participating in Malaysia’s economic development for more than 40 years including the electronics sector; this MAEI Economic Impact Survey helps us quantify the positive economic contributions that our companies continue to make in Malaysia,” she said.