Japan's quake may affect Malaysia's auto, electronics sectors

13:41, March 17, 2011      

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The 9.0-magnitude earthquake that struck Japan last Friday may have impact on Malaysia's automotive and electronics sectors.

Malaysian Deputy International Trade and Industry Minister Mukhriz Mahathir told reporters in Kuala Lumpur on Thursday that there might be slight slowdown in terms of export of cars to Malaysia.

"We are monitoring it, from within the ministry also we have done quick study to understand the implication. The part that is affected in Japan has quite a number of factories supplying components to the automotive sector," said Mukhriz.

The deputy minister pointed out that the factories were not solely affected by the earthquake and tsunami, but also by the energy crisis.

"When energy is affected, many of the industries will have to adjust somehow. We think that this will have certain implications to us here also," said Mukhriz.

On the electronics sector, Mukhriz said many Japanese companies operating in Malaysia might have difficulty in getting components from Japan, and this would possibly affect Malaysia's electrical and electronics sector.

"We are seeking feedback from those companies," he said, adding that the ministry was in a "wait-and-see" situation on whether to revise the official tarde forecast.

The giant tremor that caused tsunami to sweep across the northeastern and eastern regions of Japan had not only cost lives, but also leaving the affected areas paralyzed.

What has been the major concern for the Japanese after the strong quake is the safety of the nuclear power plants. Reactors at the Fukushima nuclear plant have seen several explosions, causing radiation to once exceed 6,000 times the acceptable level.

Power rationing has been implemented in the eastern and northeastern regions of Japan to deal with the shortages of power supply.

Source: Xinhua
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