Malaysia has emerged as one of the leading manufacturers and exporters of mobile phone accessories globally over the past decade. With a population of over 32 million people and a burgeoning middle class, the domestic for mobile phone accessories in Malaysia has grown substantially. According to estimates from experts, the local mobile phone accessories was valued at over RM2 billion in 2020 and is projected to touch RM3 billion by 2025.
The strong growth in domestic demand for mobile phone accessories can be attributed to high mobile phone penetration and frequent smartphone upgrades in Malaysia. There are over 27 million mobile subscribers in the country, translating to a penetration rate of over 85%. Malaysians also change their smartphones after every 18-24 months on average due to availability of affordable financing options and attractive monthly plans offered by telecom operators. This rapid smartphone replacement cycle has fueled consistent demand for accessories like cases, screen guards, chargers, and earphones.
Moreover, the youth population’s affinity towards technology and willingness to spend on mobile accessories have significantly contributed to the booming . Young Malaysians form nearly 60% of the country’s population and are avid users of smartphones for social networking, gaming, music, and more. High youth unemployment and increasing social media influence have made mobile phone accessories an aspirational purchase for many in this demographic.
Rise Of E-Commerce Boosts Malaysia Mobile Phone Accessories Sales
The rise of e-commerce platforms in recent years has boosted sales of mobile phone accessories multifold in Malaysia. Popular Malaysian sites like Lazada and Shopee as well as international players like Amazon have listed thousands of local and international mobile accessory brands. Their widespread promotional activities, various payment options, fast delivery times, and occasional festive season sales have made online shopping more convenient and affordable for Malaysian consumers.
According to statistics provided by the Digital Economy Corporation, e-commerce transactions in Malaysia grew at a CAGR of 20% between 2016-2020. Mobile phone accessories remained one of the top 5 categories purchased online. Livestreaming and influencer ing employed by e-tailers have further enhanced online discovery and boosted impulse purchases of phone cases, tempered glass, power banks, and Bluetooth earphones. The pandemic accelerated this shift to online as more people avoided crowded malls and stores.
Malaysia’s Export Prowess In Mobile Accessories
Malaysia has cemented its position as one of the world’s largest exporters of mobile phone accessories, with overseas shipments valued at over RM5 billion annually in recent years. It mainly exports to developed s in Europe, United States, Japan, South Korea, and Australia. The country’s strategic location, developed infrastructure, skilled workforce, and supportive government policies have enabled local manufacturers to scale up production and cater to global demand.
Malaysian companies leverage competitive manufacturing and labor costs to supply key mobile phone part suppliers and OEM brands globally. Substantial investments have been made over the years to upgrade production capabilities for more complex parts like wireless chargers, cameras, displays, and batteries. As a result, Malaysia now exports fully assembled mobiles and components besides basic accessories. Major local exporters include MiTAC Digital Technology, KTC, Symphony, Ragentek, and Aik Thai.
Government Support Boosts Growth Opportunities
The Malaysian government has proactively supported the growth of domestic mobile phone accessories through various incentives and initiatives. Special tax exemptions are provided to encourage local manufacturers to develop more technologically advanced products. Grants and soft loans are disbursed through agencies like MATRADE and SME Corp to assist small businesses increase productivity and capacity.
Several duty-free zones and industrial parks have been developed to attract foreign investors. Prominent electronics manufacturing hubs include MIGHT Park Penang and Kulim Hi-Tech Park Kedah which host global assembly giants like Intel, Osram, and Power Integrations. Foreign companies partnering with Malaysian SMEs gain entry into established Asian supply chains and enjoy ease of doing business.
To further nurture local R&D capabilities, the government established research centers of excellence under agencies like Malaysian Technical University Network. Over the past decade, significant progress has been achieved in areas like 5G technologies, flexible displays, miniaturization, and smart device integration. Several startups commercializing innovations in areas like IoT connectivity and mobile healthcare have also emerged.
Rising Incomes To Sustain Malaysia Mobile Ph3one Accessories Growth
With steady economic growth and increasing disposable incomes, demand for mobile phone accessories in Malaysia is projected to remain robust over the coming years. Average household incomes are expected to increase at a 5-6% CAGR between 2022-2025 driven by stable employment, higher wages, and generous handouts. This will enhance Malaysians’ spending power on not just basic mobile accessories but also more premium audio devices, wireless chargers, and smart wearables.
Original equipment manufacturers are also expanding domestic production of more advanced 5G components and finished devices. This will attract greater foreign investment into the local supply chain and create skilled design and engineering jobs. If the government sustains initiatives to boost manufacturing productivity and skills training, Malaysia is well-positioned to become a major exporter catering to over 1.5 billion consumers across Asia in the post-pandemic era.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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