Major US electronics firms in Malaysia forecast export sales to surge nearly 10 percent next year to RM64.20 billion, driven by a new cycle of computer spending, an industry group said today.

The American Malaysian Chamber of Commerce (Amcham) also said it foresees little impact on US investment here from Prime Minister Dr Mahathir Mohamad's recent controversial remarks on Jews that sparked international uproar.

It said a survey by the Malaysian American Electronics Industry (MAEI) for the quarter to September showed the RM1.5 billion capital investment planned by MAEI's 19 members this year and another RM1.5 billion for 2004 were on track.

"We do not see any impact to the businesses that are on the ground. Time will tell whether new investments will be impacted but at this point, our belief is that they will not be affected adversely," Amcham president Tim Garland told reporters.

"I think time has proven that the attitude of the Malaysian government towards business has been quite (friendly) and we don't see that changing with the transition of leadership."

Boycott calls

The influential US-based Jewish lobby group Simon Wiesenthal Center last week called on investors and tourists to avoid Malaysia after Mahathir branded Jews "arrogant" and accused them of controlling the world by proxy during a recent Islamic summit in Kuala Lumpur.

Mahathir, who retires Friday after 22 years in office, has said the call for an economic boycott against Malaysia may hurt economically but the country would not give in to "blackmail".

In a statement, Amcham said the targeted RM1.5 billion expenditure by MAEI members for next year could be surpassed given a continual improvement in plant utilisation which shot up to 84 percent in the September quarter from 70 percent in the first six months.

The latest survey showed total sales expected this year at RM58.5 billion, down slightly from an initial forecast of RM59 billion, and representing a 14 percent growth from RM51.3 billion in 2002, it said.

Overall, the electrical and electronics sector in Asia Pacific would continue to grow over the next two years, driven by a new cycle of computer spending in the US and wireless communications adoptions, it added.

The MAEI, which includes world top chip-maker Intel Technology, Motorola, Western Digital, Dell and Seagate Industries, accounted for nearly a quarter of Malaysia's electronics exports and 14.5 percent of total manufactured exports last year. - AFP