BMI View: Malaysia's consumer electronics market contracted sharply in 2015, and then to a lesser degreein 2016, when ringgit depreciation hit device affordability at the same time as the introduction of the Goodsand Sales Tax exacerbated negative product cycles. The outlook is for the market to regain device spendinggrowth momentum over the medium term, with broad support from purchasing power and populationgrowth, but there is downside due to approaching saturation and form factor cannibalisation.
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Computer Hardware Sales: USD1.5bn in 2017 to USD1.8bn in 2021, a compound annual growth rate(CAGR) of 4.1%. A saturated core market and the cannibalisation of low-end demand by smartphonesoffsets some of the upside due to pent-up demand in the PC market.
AV Sales: USD808mn in 2017 to USD996mn in 2021, a CAGR of 5.3%. TV set upgrades to larger andhigher resolution screen sizes are the main opportunity, especially as Ultra-HD gather momentum andpurchasing power growth accelerates.
Handset Sales: USD2.3bn in 2017 to USD3.0bn in 2021, CAGR of 7.0%. The volume outlook isrelatively subdued, with the initial boom in smartphone ownership having already occurred by 2017, sothe growth engine will transfer to a stronger sales mix rather than deepening market.