Matrade Explores Opportunities In E&E Sector In Silicon Valley

By Manik Mehta SAN FRANCISCO, Nov 21 (Bernama) -- The Malaysia External Trade Development Corp (Matrade) recently concluded a three-day visit to Silicon Valley with a high-powered mid-tier business delegation of electronic and electrical companies (E&E) in tow. The aim of the visit was to introduce the five local companies to potential technology partners and customers in the E&E field, and also take a closer look at the latest technology available. The companies were NationGate Solution (M) Sdn Bhd, Pensonic Holdings Bhd, May Plastics Manufacturers Sdn Bhd, Ban Seng Lee Industries Sdn Bhd and ViTrox Technologies Sdn Bhd. Mid-tier companies are bigger than Small Medium Enterprises (SMEs) and smaller than Multinational Companies (MNCs), with a turnover of between US$14.89 million (RM50 million) to US$148.93 million (RM500 million) Dzulkifli Mahmud, the Matrade Deputy Chief Executive who led the delegation told Bernama, that the visit also provided an opportunity to gain insights into the Silicon Valley business culture. "The Malaysian companies also established connections with Silicon Valley entities through one-to-one business meetings, and in meeting different industry players in areas such as business accelerators, networking groups and hardware companies," he added. The Malaysian companies were also keen to contact and identify partners interested in outsourcing, in among others, electronic manufacturing services (EMS), and finished electronic parts and components. "We met about 20 companies in Silicon Valley which are at the heart of the US semi-conductor, E&E sector and software industries. Silicon Valley is also home to some of the largest technology companies, leading universities and thousands of exciting start-ups," Dzulkifli said. He said the San Francisco Bay area, which includes San Francisco, San Jose, Santa Clara and surrounding areas, was chosen due to its vibrant ecosystem of technology and innovation that supports start-ups and entrepreneurial activities in high-technology industries. Silicon Valley generated some US$138 billion of the Gross Domestic Product (GDP) of the US, and would constitute the world’s 56th largest economy, if it was a country. Start-ups received US$12.3 billion in funding from venture capitalists in 2013 and the companies in Silicon Valley have cash worth about US$428 billion, awaiting the right opportunities. The Malaysian companies also held meetings with technology growth ventures and production realisation groups, which the visitors described as "growth accelerators". "We updated the Silicon Valley companies about the latest technological and other developments in Malaysia’s industries, for which they showed keen interest. "Many US companies are positively inclined towards doing business with Malaysia," Dzulkifli highlighted. He said demand in the E&E sector in the US will rise and expects American consumers to spend more in the future than in 2013. "We also believe that innovation will be a key to getting new business. "Consumers are always looking for innovative and sophisticated products, including wearables, smart grids, solid state lighting, unmanned vehicles and other technologies," he added. The delegation also met with Khazanah Americas Inc which was recently incorporated in San Francisco to provide strategic assessment and assistance to Malaysian companies, particularly in the innovation and technology sectors. Malaysia’s E&E sector is one of the country’s leading industries, contributing 24.5 per cent to the manufacturing segment. E&E products have been Malaysia’s largest traded items for several decades since the industry’s inception in the 1960s. The sector's development has elevated the country to become a major link in the global E&E value chain. From January–September 2014, Malaysia exported US$58.2 billion worth of E&E products globally, posting a 5.5 per cent increase over the previous year. Malaysia’s export of the E&E products to the US during the same period was valued at US$8.2 billion, accounting for 56.3 per cent of Malaysia’s total exports to the world's largest economy. Dzulkifli pointed out that Malaysian companies had specialised expertise in areas as EMS, assembly, packaging and testing, LED lighting solutions, and consumer electrical items. -- BERNAMA