Independent 5-year Consumer Electronics Industry Forecasts for Malaysia

Malaysia’s consumer electronics devices market, defined as the addressable market for computing devices, mobile handsets and AV devices, was projected at about US$14.4mn in 2012. This is expected to increase to US$18.7bn by 2016, driven by rising incomes and growing affordability of key products. Demand will grow at a CAGR of about 7%, as Malaysian consumers regain confidence. A tight labour market in Malaysia has helped to support private consumption growth in recent years. However, due to the likely effect of global economic headwinds on Malaysia’s export-led manufacturing sector, we are forecasting private consumption growth to slow from an expected 6.8% in 2011 to 4.6% in 2012.

Analysts believe consumer electronics market growth will moderate in 2012, but spending will remain robust in key product segments such as LED TV sets. Malaysia has also emerged as one of the fastest-growing regional smartphone markets. Vendors will continue to target products innovation to drive revenue, with growth areas including smartphones, ultrabooks and HDTV.

Computers
Computers accounted for about 20% of Malaysian consumer electronics spending in 2011. Researchers forecast Malaysian domestic market computer hardware sales (including notebooks and accessories) of US$2.7bn in 2012. Computer hardware CAGR for the 2011-2016 period is forecast at about 7%, with household PCs penetration in Malaysia still low, particularly in rural areas.

AV
AV devices are expected to account for about 28% of Malaysian consumer electronics spending over a fiveyear forecast period. Malaysia’s domestic AV device market is projected at US$4.0bn in 2012. The market is expected to grow at a CAGR of 8% between 2012-2016, to a value of almost US$5.4bn in 2016. In 2010 LED backlit models in the 40- and 42-inch range were popular, fuelled by promotions from retailers.

Mobile Handsets
Malaysian mobile handset sales accounted for about 53% of Malaysian consumer electronics spending in 2011. Malaysian market handset sales are expected to grow to 9.8mn units in 2016, as mobile subscriber penetration passes 134%. Growth will be slower than in the preceding five years due to slowing subscriber growth, but opportunities in Malaysia’s youthful market will be driven by demand for smartphones, which in 2012 could account for twothirds of Malaysian handset sales.

TABLE OF CONTENTS

Executive Summary

SWOT Analysis
Malaysia Consumer Electronics Market SWOT . 7
Malaysia Electronics Industry SWOT  8
Malaysia Political SWOT  9
Malaysia Economic SWOT  10
Malaysia Business Environment SWOT . 11

Asia Risk/Reward Ratings
Table: Asia CE Risk/Reward Ratings Q212 . 16

Consumer Electronics Market
Computers 17
Table: Computers Sales, 2009-2016  17
AV . 21
Table: AV: Sales, 2009-2016 . 21
Mobile Handsets . 24
Table: Mobile Communications, 2009-2016  24

Consumer Electronics Industry
Table: Electronics Output, 2009-2016 . 28
Table: Malaysian Electronics Exports, August 2009-July 2010 (MYRmn)  29
Components . 31
Table: Malaysian Electronics Equipment And Parts Exports, August 2009-July 2010 (MYRmn)  31
Table: Malaysian Semiconductors Exports, August 2009-July 2010 (MYRmn) . 31
Computers 33
AV/Handsets  33

Industry Forecast Scenario
Table: Consumer Electronics Overview, 2009-2016  35
Industry Developments  37
Government Authority  39

Macroeconomic Forecast
Table: Malaysia – Economic Activity  42

Competitive Landscape
Computers . 43
Handsets . 45
AV . 47