Electronic Industry in Asean Essay Example for Free

Electronic Industry in Asean sampleSeveral factors make electronics a leading industry in South East Asia 1. Possibilities of application greatly impact the growth of economy and society of one particular country 2. The drop in the prices of burning(prenominal) hardwareElectronic industry is divided into two main category industrial electronics and consumer electronics.Industrial electronics1. Servers2. Telecommunications3. RobotsConsumer electronics1. Radios2. TVs3. Video, harmony Media Players4. Cell Phones5. Tablet PCs and LaptopsRisk in Electronics Industry mainly in high obsolescence (limited product life-cycle).Electronics return in ASEAN is mainly in the field of consumer products and components. The industry underwent considerable growth in 1970s and capital of Singapore, Malaysia, and Philippines had beseem important exertion bases.Main reasons that contribute development of electronic industry in ASEAN, from 1960s to eighties1. Import SubstitutionStarting from 1960s to 1980s there were many import bans (protective barriers) for consumers in ASEAN countries. This as well as includes electronic products such as Televisions (BW and Color), Audio Stereo and Radio Cassette. Hence, Japanese corporations like Sony and Toshiba started to setup production plants, namely in Singapore and Malaysia in the early history of electronic industry in ASEAN.2. challenger between Japanese States manufacturers.Earlier, due to quality control reasons, American manufacturers such as GoldStar (now bought over by LG) were reluctant to relocate their production plant to Asia. However, due decreasing component cost (especially production of electronic diode and cathode ray important components for TVs at that time) from ASEAN Countries, they decided to create new plants in ASEAN as a result, much schools in ASEAN are starting to open basic electronic education (unique opportunity for engine room and knowledge transfer for ASEAN countries)3. Changing in Indus trial PoliciesThe most pronounced change happened in Singapore after breaking up with the Federation of Malaysia in 1965. EDB was formed with the mission to find investors from US and Europe. in spite of appearance 3 years, Singapore became the largest semi-conductor assembly in Asia. Electronic industry employed 2,400 people in 1968 to 35,000 in 1976 and 60,000 in 1984. In Malaysia, there was a New Economic Policy. Electronic industry was given a priority status tax exemption was given in the first 7 years of business.Since Malaysia had more manpower as compared to Singapore, it took over the leading position in 1985 (General Electric employed 38,000 labour in West and East Malaysia). In Thailand, more and more citizens were exposed to Television and Radios. Hence, export of electronic goods delineated up to 13% of annual exported products. In Indonesia, export-processing zone was opened in North Jakarta, however the apprehend was not as huge as garment production over that per iod of time.4. The growing hire for computer related equipmentMore government and private offices required Personal Computer and its equipment such as disk drives.Interestingly, contrary to popular belief, low wages alone do not create comparative advantage. In fact, countries that earned major foreign investments were Singapore and Malaysia, where wages, still are the highest in the region. In our findings, we deal that infrastructural environment in terms of transport telecommunications played an important role. In addition, political stability and industrial environments in terms of supporting firms in plastics, machinery, as well as the quality of manpower were all important(p) for the offshore production of new electronic products such as micro and minicomputers.