Moscow, February 1 – “Vesti.Economy.” “The silicon valley of Southeast Asia” restores its competitive advantages over China as more and more multinational companies are looking to Malaysia to avoid the consequences of a trade war between the US and China, writes the South China Morning Post.
Photos: EPA-EFE/AHMAD YUSNI
On the Malaysian island of Penang in the last 18 months have seen a surge in foreign investment. In particular, companies operating in China are trying to use the advantages of its long-established electronics sector and to avoid American taxes.
due To the fact that China is “no longer competitive in cost” for some businesses, a growing number of queries about the creation of plants or the transfer of operations to South-East Asia, said Heng Huck Lee, CEO of Globetronics, which develops and manufactures a range of electronic products for multinational firms.
Trade war between the US and China will support the economy Malaysiaonline company in China has reduced the supply of jobs by 25% in III Kartalkaya USA vs Huawei can lead to global split in technological standartize the first 10 months of 2019, Penang has attracted 12 billion Malaysian ringgit ($2.94 billion) of foreign investment, which is 456% more than the 2.1 billion ringgit ($514 million) a year earlier. The number of new jobs created over the same period, nearly doubled to $ 15,013 thousand
In Penang had invested large investments from us chipmaker Micron Technology, as well as the American company Jabil Circuit, and a British medical device manufacturer Smith+Nephew.
However, the trade war brought based in Malaysia companies and a number of problems.
As reported “Vesti.Economy”, on the background of significant external pressures in 2019 economy kitAya grew 6.1%, the lowest rate since 1990.
Decline in demand from China and a slowdown in global sales of semiconductors contributed to the decline in electronics exports of Malaysia by 4.9% in annual terms in the third quarter of 2019, according to the Central Bank of the country.
furthermore, the trade war between the US and China has spread to the technology industry. The US government has already banned the export of the most important American electronic components, a number of Chinese firms, including telecommunications giant Huawei, a leader in the field of 5G technologies.
because of limitations in the United States against China’s Huawei, the world may be close to the geographical split in the development of high technology and innovation, warned in December Paul Haswell, partner at international law firm Pinsent Masons, which advises technology companies.
“Sooner or later trade war will end, but I think that the “cold war” in the field of semiconductors has just begun, said SCMP sang Beng Ng, CEO of Penang-based Aemulus company, which produces equipment for automated testing of semiconductors. – If you are too obviously occupy positions in the same camp, then another camp will ask you what side you’re on”. Text: News.Economy