Malaysian Electronics: The Changing Prospects for Employment and Restructuring

The electronics industry in Malaysia was assigned a central role in creating urban jobs for the indigenous Malays and restructuring their employment from low- to high-paying activities. The initial labour-intensive phase generated jobs but failed to provide openings for Malays higher up in the occupational hierarchy. In the current phase, a buoyant economy makes job creation per se less important; but the growing technological sophistication in the industry threatens to undermine the restructuring of Malay employment because many Malays lack the critical skills necessary to take advantage of this development. This article reviews these issues and suggests policy initiatives.