There is a bias toward manufacturing in China; it has been an industry default for a long time. But those with experience are clear about the major benefits of manufacturing in Malaysia.
Based on customer feedback and ongoing audits of multiple factories in both countries, the below table was created to illustrate this disparity.
Plan a visit to Malaysia & see for yourself.
|Category||S&O Electronics||Score||China (including top tier manufacturers)||Score|
|English Proficiency||Management strong, Operators high||9||Management weak, Operators low||2|
|Business Transparency||Open book pricing; fixed price||10||Closed book pricing; price increases after agreement||1|
|Human Rights||Government regulated, match US guidelines||10||Major violations, must stay diligent with factory to avoid abuses||5|
|Business Ethics||High level of integrity||10||Untrustworthy||2|
|Contract Negotiations||Simple and clear||10||Complex and adversarial||1|
|Quality Assurance||Diligent and maintain standards||10||Quality creep||4|
|Tariff Schedule||Standard||8||High and going up||2|
|Training and History||Japanese trained, >40 years||9||Self trained, <20 years||3|
|Inbound Customs||No issues||10||Major challenges||3|
|Air Freight - Duration to US||3-4 days||8||2-3 days||9|
|Reverse Logistics||No issues||10||Agony||0|
|Operator Dependability||Stable, local staff, low attrition||10||Volatile, staff from remote areas, high attrition||3|
|Operator Experience||Highly trained and broad experience||9||Poor training and minimal experience||3|
|Labor Rate||Stable, unchanged in 5 yrs||9||Turbulent, rising quarterly||5|
|Susceptibility to Natural Disasters||Rare||9||Multiple yearly typhoons||6|
|Chinese New Year Shutdown||5 days||9||14-25 days||3|
|Environmental Compliance||Strict||10||Inconsistent and lax||3|
|Total Score||S&O Electronics||179 of 190 (94%)||China||70 of 190 (37%)|