US electronic firms operating in Malaysia said today that high oil prices have forced them to downgrade their export sales forecast for 2005 because of damage to consumer confidence and spending.

"High oil prices have hurt sentiment. We think the growth number (for sales) will be lower than projected," said Wong Siew Hai, chairman of the Malaysian Electronics Industry group of the American Malaysian Chamber of Commerce.

"When we made our forecast last year, oil prices were around US$40 per barrel, now it has shot to US$66. There will be implications," he said.

The previous forecast was US$82.2 billion, representing 10.3 percent growth compared with last year. Wong said the revised forecast figure would be known in the next few days.

Rising oil prices have dampened US consumers' appetite for electronic gadgets, resulting in slower sales for the electronics industry, he said.

Ringgit float a 'non-event'

American Malaysian Chamber of Commerce president Vince Leusner said the ringgit currency's July shift from a pegged rate to a managed float was a non-event for the US business community investing here, as the net impact was minimal.

Leusner said that US companies will give Malaysia serious consideration when it comes to biotechnology, as well as oil and gas investments.

"Oil and gas is a sector where Malaysia will get more than its share of foreign direct investment in the region," he said.

Malaysia is the United States' 10th largest trading partner, while the US remains Maaysia's top foreign investor, with capital investments of US$28.7 billion. US investments lie primarily in the electronics, oil and gas, and petrochemicals sectors.