KUALA LUMPUR, Malaysia (AP) – U.S. electronics manufacturers operating in Malaysia expect exports to rise 9% this year to $19.6 billion after flat growth in 2005, an industry group said Tuesday.
The Malaysian American Electronics Industry (MAEI) group predicted growth will be driven by higher sales of personal computers in Asia and global demand for communication and digital devices such as MP3 players, digital televisions and mobile phones.
However, it said the forecast by its 17 members did not take into account impact of the recent outburst of fighting between Israel and militants in Lebanon and the surge in global oil prices past $75 a barrel.
''We forecast a growth of 9% in export sales for 2006. Right now, we think the numbers will probably hold unless we get indication that this might change,'' Wong Siew Hai, chairman of the industry group, told a news conference.
The MAEI, whose members include some of the world's biggest technology companies like Intel Corp., Dell Inc., Agilent Technologies Inc. and Motorola Inc., may have to reassess their forecast if oil prices surpass $80 a barrel, he added.
The companies in the industry group export nearly all their goods mainly to the U.S. and accounted for about 12% of Malaysia's total exports last year. Electrical and electrical components make up about half of Malaysia's exports each month.
Wong said exports from the group were flat in 2005 at $18 billion because of changes in structure of some member companies.
He said members expect to invest a total $842 million this year to upgrade production lines and build new design and development centers, in line with Malaysia's aim to move its manufacturing sector up the value chain.
