Malaysia is a resourceful country that excels in producing high-quality products. Many of these products are exported to the international market, creating opportunities for local businesses to expand their outreach.
One sector that holds great potential for local businesses is the electrical and electronics industry. Malaysia exports many electronic products overseas, opening the door for domestic manufacturers to capture the international electronics market. This article discusses the potential of this sector for Malaysian businesses looking at global expansion and the procedures involved in exporting these products.
The electrical and electronics industry (E&E) in Malaysia contributes significantly to the country’s economy. Electronic products are amongst Malaysia’s most profitable products and comprise a major portion of the country’s exports. According to the United Nations database on international trade (COMTRADE), Malaysia exported US$102.89 billion worth of electronic products in 2021. Further, the Malaysian Investment Development Authority (MIDA) noted that by 2025, this industry is expected to contribute RM120 billion to the country’s GDP and generate RM495 billion in export revenue. The MIDA further reports that electronic components in Malaysia account for nearly 45.6% of exports. Semiconductor devices, ICs, transistors, and valves comprised 60% of electronic exports in 2019, according to a Statista report.
The Malaysian government, specifically Malaysia External Trade Development Corporation (MATRADE), promotes the electronics industry through several initiatives. These efforts encourage bilateral trade and strengthen economic cooperation between Malaysia and other countries. For instance, MATRADE collaborates with the Industrial and Commercial Bank of China Malaysia (ICBC Malaysia) to facilitate more trading and investments between Malaysia and China.
MARTRADE also revealed that Malaysia excels in the following areas: Outsourced Semiconductor Assembly & Test (OSAT), Automated Test Equipment (ATE), Integrated Circuit (IC) Design and Electronic Manufacturing Services (EMS).
These collaborative efforts, alongside a strong and growing sector, allow existing entrepreneurs to expand their global reach and new businesses to begin exporting electronics and hardware.
Malaysian companies and individuals aspiring to tap into the global electronics market must be aware of the procedures involved in shipping electronics overseas. The sections below discuss this process in detail.
The Royal Malaysian Customs Department (RMC or JKDM) is the main authority enforcing border regulations and overseeing the process of exporting goods from Malaysia. The process of exporting electronics involves the following steps:
Registration: Companies must first register with the Companies Commission of Malaysia.
Application for export licence: After registration, the company must apply for an export licence from the Ministry of International Trade and Industry (MITI).
Document preparation: The documents required for exporting must be then prepared and filed with Malaysian Customs authorities. We elaborate on this in the next section.
Customs clearance: Once these documents have been submitted, the shipment/cargo needs to be moved to the customs-bonded location, where customs officials conduct inspections. Once the cargo is cleared by customs authorities in Malaysia, shipping may proceed.
Malaysia does not impose any specific restrictions while shipping electronics internationally.
Before shipping electronics from Malaysia, companies need to prepare the following documents:
Since electronics are considered fragile, carefully packaging them is crucial to avoid damage during transit or storage. The following tips are important for appropriately packing electronic items:
When you work with a reliable express logistics service provider, you can be sure that your electronic exports are shipped safely and on time. It is also vital to stay up to date with regulations so you can ensure your shipments will rightfully clear customs without any delays. View our FAQs on exporting electronics out of Malaysia for more information.