Malaysia and Indonesia belong to the group of quickly developing Asian countries in rapid development. In both countries particular importance has been attributed to the electronic industry. The process of its development can be analysed as structured in three stages. The first one - is the period of the sixties and of the first half of the seventies, when the mass production of export electronic component - semiconductors and simple integrated systems, was developed in Malaysia, while in Indonesia it was the production of technologically slightly obsolete electronic articles for the domestic market. In the middle of the eighties diversification of the production of electronic industry took place. On the basis of the components already in production the export-oriented industry of electronic consumption goods developed. Similar industry basing its production on the components from Malaysia appeared in Indonesia, coexisting with the production of cheaper goods for the local market. The next stage is the development of hi tech industry and its non-productive branches in the nineties: software, multimedia, peripheral systems, research and technology development, biotechnology. Malaysia is still more competitive on that market. Strong concentration in tax-free zones along the western coast of Malaysian Peninsula and on the Indonesian island of Batam as well as in western Java, especcially in Djakarta agglomeration, are the main spatial features of this industrial sector.
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