Secondary Sector

Secondary sector in malaysian. This chapter explain the roles and phases of industrial sector in Malaysian economy. Then it discuss the abjectives, strategies and strategies thrust of Malaysian industrial master plan IMP.

Edited at 2021-01-22 05:35:47

aidafiqah.halid@gmail.com

Secondary Sector

aidafiqah.halid@gmail.com

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TOPIC 1 MALAYSIAN ECONOMY
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TERTIARY SECTOR
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PRIMARY SECTOR
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- 1
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ECONOMÍA
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WSWsndJq
Economia
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AKTIVITI EKONOMI DI MALAYSIA
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NEOLIBERALISMO POSTULADOS Y FUNDAMENTOS
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André Jiménez
Understanding Financial Systems: Components, Functions, and Regulatory Bodies
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danielahiguerag@gmail.com
Features of Micro Economics
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MANIMANAS
Principios de la Economía
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SECONDARY SECTOR

Phases of industrial development

Import Subsitution Strategy (1957-1970)

Export Orientated Industrialization Strategy (Post 1970s)

Heavy Industry-based Import Substitution Strategy (Post 1980s)

High Technology Industries (Post 1990s)

Industrial Master Plans

Three Industrial Master Plan

Industrial Master Plan (IMP1) (1986-1995)

Industrial Master Plan (IMP2) (1996-2005)

Industrial Master Plan (IMP3) (2006-2020)

Initiated to provide a medium & long term policy framewrok to spearhead the development of more divercitied & intergrated manufacturing sector

First Industrial Master Plan (IMP1) (1986-1995)

Objective

To accelerate the growth of manufacturing sector

To promote opportunities for the maximum

To build up the foundation for leap-frogging

Strategies

Restructure industrial incentives

Upgrade import subsitution industries

Widen industrial activities in less develop regions

Invigorate R&D activities in both public & private establishments

Encourage the growth of heavy industries as new feeder industries

Diversity export & further encourage import substitution

Encourage the use of locall-made products

Diversity the export market

Encourage growth of SMEs

Second Industrial Master Plan (IMP2) (1996-2005

Objective

Transfrom manufacturing sector into resilient, broad base & international competitive

Strategies

Manufacturing Value Chain

Cluster-based industrial development

Key strategies thrusts

Encourage global orientation

Enhance competitive of the industrial sector

Improve requisite economic foundation

Nurture Malaysian-owned manufacturing companies

Adopt information intensive & knowledge driven process

Third Industrial Master Plan (IMP3) (2006-2020)

Transforming & innovating the manufacturing & services sectors in an intergrated manner towards attaining developed nation status inder Vision 2020

Development initiative

Echancing Malaysia as a major trading nation

Generating investment in targeting growth areas

Intergrating companies into global network

Promotion of growth areas

Sustaining the manufacturing sector contribution to economic growth

Positioning the services as a major source of growth

Enhancing the enabling enviroment

Facilitating the development & application of knowledge

Developing innovative & creative human capital

Strenghening the role of private sector institutions

Creating a more business operating enviroment

Development Of Heavy Industries In Malaysia

Roles

Greater utilization of natural resouces

Enhancement of technology capability

Developmet of inter industry linkages

Employment creation

Challenges

Lack linkages between industries

High production cost

Small domestic market

Shortage of investment

Shortages of skilled labor

Development Of SMEs

Roles

Creating employment opportunities

Strenghtening industrial linkages

Contribute to development & modernization

Training ground for entrepreneurs

Challenges

Limited acces to finance & capital

Lack skilled workers

Limited capability & capacity

Poor intergration & linkages

Foreign Direct Investment (FDI)

Companies that build factories in overseas

Hold at least 10% of the total equity in a resident company

Must afford the parent enterprise control over its foreign affiliate

Challenges In Industrial Sector

Large industrial technology gap

Lack of extensive domestic R&D

Weak symbiotic relationship (heavy industries & SMEs)

Narrow manufacturing base

Inadequate use of natural resources

High cost of production

Dependence on foreign labor

Intense competition from low cost producers

Roles of industrial sector

Increase GDP, employment & exports

Modernization of economy, widening industrial & economy bases

Plays an important role in downstream activities

Creates linkages between heavy industries & SMEs

Transferring technology through foreign & domestic investment

Creates many opportunities & linkages with other sectors

Transform from global consumer to global manufacture

Create cross-border callaboration