11 January 2018
Electronics is the largest export sector in ASEAN, equivalent to 25 percent of the region’s total exports in goods. According to the ASEAN Secretariat, the bulk of the world’s consumer electronics comes from the ASEAN region. Moreover, over 80 percent of the world’s hard drives are produced in ASEAN countries.
As such, ASEAN should be responsive to the latest trends and developments in the global economy so as to remain competitive. For instance, the rising labour cost in China could stimulate the growth of the ASEAN electronics sector. Low labour cost in ASEAN will attract more foreign direct investments (FDIs) from multinational companies (MNCs). However, the emergence of disruptive technologies such as automation and robotics could also threaten the manufacturing opportunity in the sector.
… Phidel Vineles is a Senior Analyst with the Centre for Multilateralism Studies (CMS) at the S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University, Singapore.
CMS / Online
Last updated on 23/01/2018