On Wednesday, 26 November 2014 at 10:22:00 UTC+8, wrote:
The encoder you need is an Alps EC11B15202AA. That is what was used in your ICF-SW40. You will find one on Ebay at a reasonable cost if you do a thorough search. Some big electronic wholesalers also have them listed.

My SW-40 has the same symptoms. I opened up the radio and cleaned the tuning rotary encoder with switch cleaner, no real change in symptoms.
I am wondering if it might be the capacitors and not just the encoder? Although a visual check of the large electrolytics shows them to look normal, no leaks or bulges.

Anyone else seen this issue? How was it fixed? Did the encoder swap out work?