Expansion and slowdown in Southeast Asian electronics manufacturing

Rajah Rasiah

Journal of the Asia Pacific Economy, 2009, vol. 14, issue 2, 123-137

Abstract: This paper examines the growth and slowdown in the electronics industry in Southeast Asia. American, Japanese and European multinational corporations relocated operations in Singapore, Malaysia and Philippines in the late 1960s and early 1970s to begin electronics assembly, packaging and testing, which was followed in the late 1980s and 1990s by the relocation of electronics manufacturing from Japanese, European, American, Korean, Singaporean and Taiwanese multinationals to the above Southeast Asian countries as well as Thailand and Indonesia. Whereas Singapore has managed significant upgrading to designing and development activities through the provision of grants, incentives, labs and strong infrastructure coordination, electronics production in the remaining countries has largely remained entrenched in assembly, packaging and testing activities. The failure of Malaysia and Thailand to support technological upgrading has undermined the capacity of these economies to sustain rapid growth of the industry as China, Philippines, Indonesia and Vietnam have a big edge in low wages and the labour force. Hence, while Singapore has managed to upgrade, Indonesia, Philippines and Vietnam continue to enjoy rapid growth in low-end manufacturing activities, Malaysia and Thailand have faced a fall in the significance of the industry since 2000.

Date: 2009
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Citations: View citations in EconPapers (5)

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DOI: 10.1080/13547860902785963

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