U.S. electronic firms in Malaysia see recovery in fourth quarter<\/p>\n
KUALA LUMPUR (AFP): Major U.S. electronics firms in Malaysia
\nexpect sluggish exports to rebound from October onwards but
\nforecast a 12 percent drop in their sales this year, an industry
\ngroup said Tuesday.<\/p>\n
The Malaysian American Electronics Industry (MAEI) said total
\nsales of its 18 members were expected to fall to 38.7 billion
\nringgit (US$10.18 billion) amid the global downturn, from 43.9
\nbillion last year.<\/p>\n
Semiconductor and non-semiconductor sales were forecast to
\ndecline by 12.7 and 11.3 percent respectively according to a
\nrecent MAEI survey, said MAEI chairman Teh Chin Bin.<\/p>\n
"The general assessment is that the third quarter could be the
\nbottom," Teh told a press conference. "There is a general
\nexpectation of positive growth going into next year."<\/p>\n
Among MAEI members are world number one chip-maker Intel
\nTechnology, Advanced Micro Devices, Motorola, Western Digital,
\nDell Asia Pacific, Seagate Industries, Texas Instruments and
\nChipPac.<\/p>\n
Last year, the group accounted for 20 percent of Malaysia's
\nelectronics exports and 14.2 percent of total manufactured
\nexports.<\/p>\n
The survey said investment from MAEI companies was expected to
\nfall to 1.8 billion ringgit this year, down from 2.6 billion in
\n2000.<\/p>\n
But allocation for research and development is seen rising 10
\npercent to 251 million ringgit, while procurement of local
\nmaterials and services is also expected to increase 10 percent to
\n7.4 billion.<\/p>\n
Nicholas Zefferys, president of the American Malaysian Chamber
\nof Commerce, which is the umbrella body for MAEI, described the
\nindustry downturn as a "temporary trial."<\/p>\n
"We are bouncing along the bottom. Purchases of chip-making
\nequipment have started to increase in the last three months which
\nspeaks positively for the future," he told AFP.<\/p>\n
"This is a temporary slowdown. The IT revolution continues and
\nwe'll see a resumption of growth. There'll be an industry
\nshakeout, no question, ... but the stronger companies, those that
\nare engaged in new product development, research and development,
\nwill be the winners.<\/p>\n
Zefferys said the U.S. electronic sector had become "meaner
\nand leaner" after selling off most of the inventories built up
\nlast year amid strong growth of Windows 2000 and dotcom
\ncompanies.<\/p>\n
"All the write-offs and all the layoffs that you have seen in
\nthe U.S. means they are going to come back with strength and
\nearnings per share are positioned to start increasing in the year
\n2002," he added.<\/p>",
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