Analysis Malaysia is considered as one of those South- East Asian countries with a tiger economy.
Being a multi- sector economy1, Malaysia is now fast developing and is becoming the 5th in South- East Asia. Its chief industries include fishing, mining, manufacturing and electronics2. Among all these industries, electronics industry is the one which is playing a major role in Malaysias development. It grew 29% in 1995 and 21.6% in 19943. Main electronic exports include ICs, semi- conductors, capacitors and wafers. It is also stated that more than 80 companies produced PC- based components, subassemblies or peripherals. Being a major industry, Malaysian government saw the potential profit that could be gained if electronic industry will be develop. And so plans and different agencies were created to help diversify Malaysias electronic industry. Now, Malaysian government is increasing the quality of their products and developing more products that are world class. The researchers found out that under their action plan for industrial technological development4 that it has targeted its industries development in effort to make their country as a research and development center, especially in electronics. According to our source (AllMalaysia.info.com). developments in the production and exports of motherboards and non- CRT displays are being targeted. A major project in Kulim Hi-tech which is financed by United States will emphasize the production of the following: software, IC and wafer fabrication that includes electron- beam cross- linked polyolefins, shrink films and high definition displays or HDD. To attract more investors in electronics industry, the government created R&D incentives. Based on the datas gathered, the incentives that the government will give are as follows; 5-years pioneer status, tax allowance and industrial building allowances of 10%5. Penang, which is the second smallest in Malaysia that provides nearly half of the countrys GDP6. It is found out that Penang has currently six different industrial parks that are helping the country to produce more electronic based components. These investments specifically in electronics have been developed through their PDC or the Penang Development Corporation. If we are going to analyze technological development in electronics, of Solectron in Penang, based on the table we can say that latest technologies are always available there. As evidence to these facts we have found out that, Motorola and Intel Corporation are investors in Penang.
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Malaysia homepage, available at: AllMalaysia.info.com
Thomas Franks Barton, The New Book of Knowledge
All in all, the datas we have gathered only shows that, Malaysian Electronic Industry, and its electronics exports are providing a large percent of the countrys GDP. This is continually helping their economys boost and is accelerating the shift of Malaysian economy from being agriculture-based to being electronic technology- based. These exports are useful not only to Malaysian economy but also to other countries that have a growing demand on these electronic components. For example, the Philippines, in the modern times of today, have a high demand for those electronic-based components. Al most everyone here needs those products, specially those people who are involved in business. It is because those products speeds up different business transactions and simplifies complicated processes. These also lessen expenses. In addition, in other fields, electronics also contributes and gives positive results
Malaysian Electronic Industry is indeed the countrys major asset that makes them more globally-competitive. And that is why they can now compete with Japan and the United States in terms of electronics. According to studies, Malaysia is now achieving the demands or quality of living of industrialized countries. These events satisfy the needs of their citizens. And as a result, their citizens commit themselves to help improve their country. See? If the citizens are provided with incentives and good career opportunities, they too will exert efforts to help their country.
We have found these following reasons on why Malaysia is fast developing. They are developing their different strategies to upgrade each, they are cooperating with global organizations, their government is very supportive and active the labor force is also sufficient. Improved education, advanced technology, and ASEAN cooperation and investment are all expected to help make Malaysia a major world force in electronics7.i
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Malaysia homepage, available at: AllMalaysia.info.com