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DEVELOPMENT OF INDUSTRIALSECTOR IN MALAYSIA
Malaysia aim to become a developed country majestic withtheir own models
Industry sector will be able as a catalyst for the advancement
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Introduction
In Malaysia, the context of industrial can divided to three (3)industries namely primary, secondary and tertiary.
Primary industry - raw material processing industry sector, rubberand palm oil processing, smelting (tin)
Secondary industry - manufacturing industry, changing the rawmaterial to finished goods
Natural resource-based industries (soap, margarine, palm oil) Non-manufacturing industries of natural resources (electricalgoods, cars)
Tertiary industries that provided services, customer services(tourism industry).
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Development of Industrial Sector in Malaysia
4 stages of the development of industrial sectorin Malaysia.
Starting from independence until the year 2009The first era (1960-1970)The second era (1980s)The third era (1990s)Fourth era (2000 to 2009)
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The first Era (1960-1970an)
Import substitution strategy
Focuses on raw material processing industry(agricultural raw materials).Processing of timber, palm oil, rubber.The manufacturing industry has not grown.Export of palm oil and rubber pieces.Imports of finished rubber and palm oil.Production of many raw materials, primaryindustry grow.
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The Second Era (1980s)
The shift to import substitution industriesExodus own products for their own useWhy?Because Malaysia experienced a loss and tradedeficitPrimary industry products no longer fully
exported
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The third era (1990s)
Significant changesExport-oriented industrial sectorHigh-tech industries and SMEs
No longer dependent on the manufacturingsector only sourceElectronics and electrical manufacturing
expanded1990s, the automotive industry development
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The contribution of the industrial activities as the main forceof Malaysia economic contributor has long been proven.
The development of this industrial sector became dominantwhen the Malaysian Government started emphasising on theexports rather than on the imports in the 1970s.
The intention was to promote economic development in the
country.
Since then, the electrical and electronic industry has becomethe industry with the most investment proportion rate andcontributed 2/3 of the Malaysian total exports.
As a pioneer industry in the state, the electronic sector startedout as labour intensive operation and at the same timedependences on assembly activities as well as to the productquality test.
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Economic development in the precedingmillennium was based on high labour input,
foreign investment and raw materials resources(see Scott, 1988; Dicken, 1992, 1998; Hayter,1997; Daniels and Bryson, 2002).
Therefore, up until the end of 1980s, the focusof geographic field was on factors of locationand technology particularly in the importance
of these factors as a corporate strategy amongmanufacturing firms to increase theircompetitiveness (see Scott, 1988; Malecki,1991; Hayter, 1997).
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This situation urged for location finding strategywhich offer raw materials resources, labours and low
payment thus propelled distribution of production
units of multinational companies into certaindeveloping countries.
Nevertheless, by 1990s onwards, the shift in the
development of manufacturing corporate firmsstrategy specifically in developing countries towardsthe efforts of restructuring the manufacturing in orderto be more conducive and innovative as well as inline with global competitiveness.
It also which requires the firms to be more cautious(see Henderson, 1989; Sassen, 1991, 1994;Macpherson, 1994, 1997a, 1997b; Hayter, 1997;
Daniels and Bryson, 2002; Ernst, 2002, 2003).
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NATIONAL INDUSTRIAL POLICY THE OBJECTIVES
1. Make the manufacturing sector as the country'sindustrial and economic growth as a whole.
2. Encourage the full utilization of the country'snatural resources.
3. Raise the level of research & development (R&D) base on local technology for Malaysia to become anindustrialized country.
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Why we need industrial policy?
1. The recession-era of 80's.2. Weakness of the industrial
sector (high depending onlabour intensiveoperation).
3. New economic policychallenges ( DEB).
4. Employment opportunities& skilled labor.
5.Balanced economicgrowth.
6. Growth of small &medium industries.
7. Towards modernization. 8. Major contributor for
future economic sector.9. International competition. 10. Upstream & downstream
industry chain. 11. Growth of new cities.12. Toward to be a developed
country
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NATIONAL INDUSTRIAL POLICY THE WEAKNESSES OF THE INDUSTRYSECTOR IN 70s & 80s
1. Poor growth of the export sector
2. Exports too dependent on the electrical,electronics & textiles only
3. Product quality cannot compete with overseasoutput
4. There are no linkages between the industrialsector with other sectors
5. Established industries have less 'value-added'
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NATIONAL INDUSTRIAL POLICY
STRATEGY1. Industrial policy out to maintain a high rate ofindustrial growth.
2. Intensively develop resource-based industries todiversify export & industry.
3. Develop heavy industry were selected to support theexport industry.
4. Develop & utilize integrated information servicesystem
5. Developing energy technology & people
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STRATEGI PERINDUSTRIAN DI BAWAH DPN RRJP2 (1991-2000)
1. Mempelbagaikan industri tempatan.
2. Rantaian antara sektor.
3. Kurangkan pergantungan kpd tekstil, elektronik & elektrik.
4. Sumber-sumber pertumbuhan baru.
5. Mempelbagaikan keluaran & pasaran sektor pembuatan.
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STRATEGI PERINDUSTRIAN DI BAWAH DPN RRJP2 (1991-2000)
6. Meningkatkan kemahiran tenaga kerja.
7. Pembangunan teknologi.
8. Kemudahan infrastruktur.
9. Value added.
10. Galakan IKS.
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Pelan Induk Perindustrian Pertama,1986-1995 (PIPI)
PIP1-prestasi produktiviti yang dicatatkandalam Pelan Induk Perindustrian Pertama(1986-1995) secara relatif lebih rendahdibandingkan dengan negara Singapura, HongKong, Taiwan dan Korea Selatan
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Sambungan.
Bukti:Eksport Malaysia berbentuk eksport bahanutama dan keluarannya mempunyai nilaiditambah yang agak rendah
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Pelan induk Perindsutrian Kedua
Proses liberalisasi dan globalisasimendedahkan kpd persaingan lebih sengit dan
bersifat global.Pasaran lebih luasTeknologi pengeluaran lebih canggihStruktur organisasi firma semakin kompleks
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Conclusion
The sector has a relatively good success toMalaysia.Yet despite these advances result in much ofan impact on the environment.Primary sector was left but should go ahead incoming future.