US tech firms in Malaysia see sharp drop in sales

KUALA LUMPUR May 10 (Reuters) - U.S. electronic firms in Malaysia expect a second year of steep fall in export sales in 2010, an industry body said on Monday, as firms continue to outsource manufacturing processes to cut costs.

"The total export sales forecast of our members for 2010 is lower at 57.3 billion ringgit ($17.53 billion) due to the impact (of a) change in manufacturing strategy from internal to outsourcing," said the Malaysian American Electronics Industry group, or MAEI.

"Excluding this change, MAEI's export sales is expected to grow by 10.8 percent in 2010," it said in a statement.

In 2009, total export sales were at 70 billion ringgit, down 16 percent from 2008.

The MAEI comprises 20 companies producing semiconductors and other electronic products and include the world's biggest players like Dell (DELL.O), Intel (INTC.O), Motorola MOT.N. MAEI members contributed about a third of Malaysia's total electrical and electronics exports.

($1=3.268 Malaysian Ringgit)

(Reporting by Soo Ai Peng; Editing by Julie Goh)