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Electrical and electronics among ASEAN’s global integrated industries – AJC

Electrical and electronics among ASEAN’s global integrated industries – AJC

20 Apr 2021

KUALA LUMPUR, April 20 — The electrical and electronics (E&E) industry is characterised by internationally fragmented but well-integrated production networks with geographically extensive and highly modular value chains.

This provides opportunities for the Association of Southeast Asian Nations (ASEAN) countries to easily participate in the E&E value chain, according to the study by the ASEAN-Japan Centre (AJC), entitled Global Value Chains in ASEAN: Electronics, issued last month.

This is the 14th report of the 16-paper series of ASEAN global value chain (GVCs) by AJC, according to a statement.

Overall, the E&E industry in ASEAN relies on more foreign inputs and technology than other industries, with 53 per cent of E&E exports coming from foreign value added (FVA), or the foreign inputs integrated into ASEAN’s E&E exports.

Nonetheless, value added in exports differs across the region, depending on each country’s position in the E&E value chain.

During 1990–2017, ASEAN’s GVC participation in E&E equipment declined slightly, from 74 per cent to 70 per cent, while its regional value chain participation doubled, from nine per cent to 18 per cent.

The contradictory trends are explained by higher regional production capacity and well-established regional production networks.

With different areas of specialisation, ASEAN has become an attractive and important hub for the E&E industry.

The region hosts an extensive range of E&E production along the value chain, ranging from labour-intensive and simple activities such as assembly and testing to capital-intensive tasks such as component design and research and development.

More details at https://www.asean.or.jp/en/

Source: Bernama

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