Crisis Effects on the Electronics Industry in Southeast Asia

Datos Bibliográficos

ID3986255
AutoresRajah Rasiah (0000-0002-6654-3011, University of Malaya), Yap Xiao-Shan, Xiao-Shan Yap (0000-0002-6606-4301, University of Malaya), G R Chandran Govindaraju, V G R Chandran Govindaraju (0000-0002-4219-9252, University of Malaya)
Año2014
Volumen44
Número4
Páginas645-663
Fecha de publicación2014-10-02
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaJournal of Contemporary Asia (JOURNAL)
Identificadores de la revistaISSN: 0047-2336 • E-ISSN: 1752-7554
EditorialInforma UK Limited (PUBLISHER • GB)
DOI10.1080/00472336.2014.923637
OpenAlexW2061917159
IdiomaEN
Citas recibidas9
Referencias citadas31

The financial crises of 1997–98 and 2008–09 each had a debilitating effect on Southeast Asian market economies because of the dominance of exports and foreign ownership. However, the 1997–98 financial crisis positively impacted electronics exports, production and employment, due to a booming US economy. The contraction in demand in the US during the 2008–09 crisis reduced electronics exports from Southeast Asia with the exceptions of Indonesia and the Philippines, which were shielded by regional linkages with Singapore, Malaysia and China. Foreign labour repatriation and fiscal stimulus packages helped Malaysia and Thailand rebound quickly from the 2008–09 crisis. In the Philippines, the 2008–09 crisis expanded further the casualisation of labour as retrenched workers from Malaysia and Singapore returned home. State grants encouraged upgrading in Singapore and to some extent in Malaysia, but the liberal approach of Indonesia, the Philippines and Thailand limited them to low-value-added activities. However, Singapore's and Malaysia's transnational-based strategy failed to reproduce the technological leapfrogging experience of South Korea and Taiwan. Also, Malaysia's ethno-patronage policies discouraged upgrading in national firms.Key Words: Financial crisiseconomic recessionelectronicsSoutheast Asia AcknowledgementsThis study was funded by a High Impact Research (HIR) grant from the University of Malaya (Ref No: UM.C/625/1/HIR/ASH/019). We acknowledge constructive comments from two anonymous referees. The usual disclaimer applies.Notes1 Rasiah (Citation1988) has provided evidence of shortening product cycles, intense competition and overproduction as major causes of crises in integrated circuits which have so far been felt by the entire electronics industry. This also serves as a critical opportunity for new entrants to compete with incumbents

Business · China · Development economics · Dominance (genetics · Economics · Financial crisis · International trade · Political science · Asian Industrial and Economic Development · Global trade and economics · Indian Economic and Social Development