Malaysian Appliances Makers Source Globally
Aug 11, 2005
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Malaysian manufacturers of home electrical appliances are encouraged to undertake global sourcing, especially from low-cost countries, to enable them to compete in the global market. Deputy International Trade and Industry Minister Datuk Mah Siew Keong said the domestic market for electrical products in Malaysia is not sufficiently large to support viable local production.

"The emphasis now is to develop a viable industry, based on producing a wide range of electrical products capable of competing in the global market," he said. "To achieve this, Malaysian companies are encouraged to undertake global sourcing."

Mah said increasing threat from other major industry suppliers and fast changing consumer pattern, plus product trends had moved Malaysian companies to form strategic R&D collaboration with overseas experts. Other than to further enhance their competitiveness, he said the strategy is also aimed at increasing productivity, maintaining cost competitiveness, producing a wide range of quality and sophisticated innovations, enhancing product design and development capabilities, as well as acquiring new techniques and adopting the latest technologies.

Mah pointed out that the establishment of Pensonic Hong Kong offices as a center for product development, quality audit, and outsourcing and brand promotion will create opportunities for the company not only to source cheaper components from China, but also to explore the China market by using Hong Kong as the gateway.

Apart from Pensonic, he said Malaysian companies have also established a relatively strong presence in the sub-sector of the home electrical appliances industry with their own brands. Besides selling in the domestic market, he said these companies also export their products, mainly to Europe, the U.S., and West Asia.

Under the domestic investment initiatives, he said leading Malaysian companies with global presence and with own brand names are encouraged to enhance their technology, undertake expansion, and avail themselves to the grants for brand development, training and research, and development under the economic stimulus package. (Business Times)

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