The purpose of this paper is to examine the impact of output and employment generation due to fluctuations in net trade for electric and electronic products during the period 1991 – 2001. The results show the significant contribution of electric and electronic industry not only for the Malaysian GDP, export, and employment, but also for its inter-industrial relationship in the manufacturing sectors. Decreased net trade for electric and electronic products have resulted in declining output and employment generation especially in 1994 and 2000. This paper also attempts to present the impact on various categories of workers based on the skill levels due to the decline in the net trade for electric and electronic products. The results demonstrate that skilled workers are the most affected category, which is due to the high intensity level of skilled workers in this sector
