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teral Trade: Malaysia & Germany
Malaysia is EU‘s second largest trading partner inside ASEAN, behind Singapore, with bilateral trade in goods reaching 31.9 billion Euros in 2010 and the EU‘s 22nd largest trading partner.
Germany enjoys intensive trade relations with Malaysia and is one of the main foreign investors in
Malaysia, while among members of the European Union, Germany is Malaysia‘s leading trade partner.14 Besides, Malaysia ranks 2nd as a consumer of German products among the ASEAN countries. The Electric & Electronic Industry in Malaysia
Introduction to the Electric & Electronic Industry
The strong E&E industry in Malaysia is a result of the Government‘s initiatives to promote laborintensive and export-oriented industries. Since the establishment of the first semiconductor plant in Penang in 1972, Malaysia has become a major global manufacturing hub for the electrical and electronics industry, as attested by the large number of multinational companies (MNCs) from
USA, Japan, Europe, Taiwan and Korea which have chosen Malaysia as their base. Unsurprisingly, the E&E sector has grown into Malaysia‘s largest contributor to output, employment, investments and exports (35% of total exports15)
16
.
The presence of leading electronic manufacturing services (EMS) companies such as Flectronics,
Solectron, Celestica, Jabil, Plexus and Sanmina-SCI provides opportunities for local companies to be part of their supply chain in the supply of equipment, materials, parts and components, and dedicated services such as contract design, burn-in testing, failure analysis and rapid prototyping.
Other local supporting industries focus on activities such as moulds, tools and dies, metal stamping, surface treatment, plastic injection moulding and M&E (Mechanical & Electrical).
Nowadays, there are more than 50 companies operating as contract manufacturing services (CMS) or EMS companies.

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