Factors influencing the locations of an electronics industry in a nie The factors influencing the location of an electronics industry in a NIE

are cost of land, the availability of infrastructure, cost of labour and political stability. A cheaper cost of labour and cost of land will allow for a lower overhead cost, which means that the company can turn a profit in the shortest possible time. Depending on the type of industry involved, labour of different skill levels may be required. The cost and type of labour is a major deciding factor in the deciding of a suitable location for an electronics industry. Idealy, a highly educated and cheap labour force should be available. A low labour cost will be more business sustainable in the long run, and will help companies maximize profits. Depending on the sector of electronics industry involved, some factors may be more important than others. In the quaternary sector, where product research and market analysis is done, a small and highly educated team of professionals will be required, so in this case, the company may want to choose a location where a highly skilled work force is available, rather than a cheap one, so quality of labour takes priority in this case. However, in the labour intensive manufacturing sector, the cost of labour takes priority, as they can train workers in specialized skills used in their jobs. Due to the large number of workers, the cost of labour will be more important to them. An example is Malaysia, which is able to provide a workforce which only requires 40% to hire, as compared to Singapore and hongkong. However, most research industries, such as GlaxoSmithKline still choose to have research outposts in Singapore, despite the expensive labour here. Whereas in Malaysia, it is more common to see manufacturing industries, which makes up 48.1% of Malaysias total GDP. The government support and political stability is also an important factor in deciding an ideal place to place an electronics industry. Government support comes in the form of tax rebates and cuts, which will help companies maximise profits. In Malaysia, the government is offering a tax exemption to companies which choose to locate their factories in putra jaya, which they termed intelligent city. It is also important that the local government stay stable, as a sudden change in government, or ruling system will adversely affect the economy and companies. Hence, companies will choose to invest in a country if a stable government exists. The factors influencing the location of an electronics industry in a NIE are cost of land, the availability of infrastructure, cost of labour and political stability. A cheaper cost of labour and cost of land will allow for a lower overhead cost. In Malaysia, the government has been proven to be relatively stable, and this is helping to draw foreign companies into the country.