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INDUSTRIALISATION Chedet

The document discusses Malaysia's industrialization strategy and argues that it needs to change its focus from producing goods for the domestic market to aiming for the global market. It provides examples of other countries like South Korea that successfully industrialized by producing branded products and technologies for international trade. It suggests industries Malaysia could pursue like batteries, rare earth materials, precision engineering and more that target the world market.

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Zulkarnain Zainudin
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37 views2 pages

INDUSTRIALISATION Chedet

The document discusses Malaysia's industrialization strategy and argues that it needs to change its focus from producing goods for the domestic market to aiming for the global market. It provides examples of other countries like South Korea that successfully industrialized by producing branded products and technologies for international trade. It suggests industries Malaysia could pursue like batteries, rare earth materials, precision engineering and more that target the world market.

Uploaded by

Zulkarnain Zainudin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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4/20/2021 INDUSTRIALISATION ← Chedet

INDUSTRIALISATION
20 Apr 2021 |  Uncategorized

** This article was originally published in THE EDGE DAILY , April 19, 2021

1. We want to be a developed country. Industry, manufacturing industry will help us achieve this ambition.
But we need to adopt a different strategy.

2. When we decided to industrialise, our objective was to give people some income. But we had no
knowledge about manufacturing, no capital, no expertise in management and no knowledge of the
market. So we decided on foreign direct investment.

3. It worked and we can say we have become an industrialised country. 80% of our exports now are made
up of manufactured goods.

4. But we are still not a developed country. If we look at Japan, Korea and China, we will notice a
difference. They industrialise through acquisition of technology and producing their own branded
products to compete in the international market. And they succeeded. We now see Sony, Hitachi, Toshiba
products from Japan. Hyundai, Kia, Samsung and LG from Korea. And now Huawei and all kinds of
products from China.

5. We do not have Malaysian branded goods internationally except gloves although we produce
sophisticated components for some of the best brands in the world.

6. It is time for us to change our strategy. We should produce not for the domestic market but for the
world market. Currently we dominate the world in the production of rubber gloves.

7. We should be able to identify other products for the world market.

8. We are blessed with a lot of raw materials. We have rubber and palm oil of course. But we also have tin,
silica sand, rare earth, bauxite and maybe other minerals. We should identify products using these raw
materials. But if we do, we should aim for the world market. We should be big in the particular product.

9. There are thousands of products made from rubber. Malaysia should produce all the rubber tyres of the
world – airplane tyres, tractor tyres, wheelbarrow and lawn mower tyres etc. Like rubber gloves we should
be big in some of these products.

10. Rare earth is much needed for batteries. As we turn to electrification to reduce pollution with CO2,
more and more batteries would be needed. Already motorcars can do 400km per charge. With research,
the range would increase. And the millions of cars switching to EV would need huge numbers of batteries
using Lithium-Ion magnets.

11. Power plants using gas would depend upon many components which we can manufacture. We may
not have the raw materials. But we can import them. Already Malaysia can produce solar panels and
turbines.

12. We do not really have a glass industry. The demand for glassware can be met by our abundance of
silica sand. We produce sheet glass but we export mainly silica sand with no added value. There are also
industrial usage for glass which we can manufacture.

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4/20/2021 INDUSTRIALISATION ← Chedet

13. Our universities should train engineers. The capability of Malaysians is enormous. We had no
knowledge about animation before. Now we produce a number of good animated films. There are no
films involved. Everything is electronics now. Apart from entertainment, there are demands for animation
in many industries.

14. Animation makes teaching easier. We can see how the inside of engines work. The parts can be
illustrated individually, assembled through animation, sliced through to show how the parts work. We can
see how the parts work with animation.

15. We are already producing composite parts of airplanes. We can do more. Precision engineering can be
so precise that the products would perform faultlessly.

16. It is a mistake to limit ourselves to supplying the domestic market. Korea does not need ships as the
land is continuous. But Korea decided to build ships for the world market. Today Korea builds most of the
big ships in the world. Korea even built a gas liquefaction plant on a floating platform. Petronas has two of
them.

17. South Korea builds cars and lithium-ion batteries for the world. And it is one of the two biggest
producers of micro-chips for the world.

18. We are world beaters too. We have been the biggest canned pineapple producers, tin and rubber and
palm oil producers in the world at one time. Now we are falling behind others in these fields. Yet we can
be very big in manufacturing if we aim at the world market. We have the capacity. There should be a new
policy to encourage the manufacture of products for the world market. 

19. The Government should support big locally owned industries so that we can be fully industrialised. If
we can give tax-free incentives to FDI, we should be able to do the same for our big industries to supply
the world.

20. Now we are in the information age. This is a new power which lends itself to the invention of other
products, to automation and robotics. Everything that we do today can be enhanced by artificial
intelligence.

21. We don’t need labour intensive manufacturing i.e., dependence on foreign workers. We need to
discourage such industries. We have to replace them with local engineers trained to handle robots and
automated machines.

22. Our palm oil and rubber estates need workers. We should reduce acreage for these estates while
depending on other kinds of agriculture. Modern agriculture depends more on technology than manual
workers.

23. By changing our industries and agriculture to depend less on labour, we will be rid of our foreign
workers. It would be painful. Those depending on foreign workers will scream. But the answer is not to
increase the quota for foreign workers but to switch to other industries and automation.

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