Malaysia Electronics Sector hit by high costs
The outlook of the electronics industry is good in 2H10 but it is facing a sharp increase in the selling of prices of raw materials due to a serious shortage, which impacts negatively on the earnings of some companies. Electronics manufacturers had to either pass on the costs to customers by increasing their selling prices or absorb the costs.
Companies like Mini-Circuits Technologies Sdn Bhd, which are unable to pass on the costs, are already seeing a big dent in their profits. The higher cost of raw materials coupled with the strengthening ringgit has eaten into the profits of Mini-Circuits Technologies. (StarBiz)