Abstract
The paper examines the imported content of Malaysia’s manufacturing sector by using Hummel’s vertical specialisation method and ICT manufacturing as a case study. The main findings indicate an increase in the domestic value added content of Malaysia from 2000 to 2010. When disaggregated within manufacturing, some sub-sectors within the ICT showed a decrease in their imported content whilst others showed an increase. The compressed input–output table showed a decrease in the ICT sector’s use of imported inputs. Using a more detailed classification of the electronics sector, two main shifts can be observed in electronics exports from 2000–2013. First, there was a shift towards finished goods in terms of number of products, but not in terms of export values. Second, there was a shift from Electronics Manufacturing Service (EMS) into Semiconductor Manufacturing Service (SMS) activities. The contraction in the ICT and electronics sector has led to a greater focus on semiconductor manufacturing.
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