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Expansion and slowdown in Southeast Asian electronics manufacturing

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  • Rajah Rasiah

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.

Suggested Citation

  • Rajah Rasiah, 2009. "Expansion and slowdown in Southeast Asian electronics manufacturing," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 14(2), pages 123-137.
  • Handle: RePEc:taf:rjapxx:v:14:y:2009:i:2:p:123-137
    DOI: 10.1080/13547860902785963
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    Cited by:

    1. Francis E. Hutchinson & Leo van Grunsven, 2018. "Industry dynamics in Growth Triangles: the E&E industry in SIJORI 25 years on," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 32(2), pages 42-63, November.
    2. Huff, Gregg, 2024. "Vent-for-surplus in Southeast Asian development since 1870," World Development, Elsevier, vol. 181(C).
    3. Amadeo Navarro Zapata & María Arrazola & José Hevia, 2023. "Technological intensity in manufacturing trade between ASEAN and the EU: challenges and opportunities," Asia Europe Journal, Springer, vol. 21(1), pages 23-42, March.
    4. Patarapong Intarakumnerd & Pun-Arj Chairatana & Preeda Chaiyanajit, 2016. "Global production networks and host-site industrial upgrading: the case of the semiconductor industry in Thailand," Asia Pacific Business Review, Taylor & Francis Journals, vol. 22(2), pages 289-306, April.
    5. Rajah Rasiah & Nazia Nazeer, 2016. "Comparing Industrialization in Pakistan and the East Asian Economies," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 167-192, September.

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