1. Industrial Master Plans
1.1. Initiated to provide a medium - and long - term policy framework
1.2. Industrial Master Plan 1 ( IMP1 ) 1986 - 1995
1.2.1. Objectives
1.2.1.1. To accelerate the growth of manufacturing sector
1.2.1.2. To promote opportunities for the maximum and efficient use
1.2.1.3. To build up the foundation for leap-fogging
1.2.2. Strategies
1.2.2.1. Restructure industrial incentives
1.2.2.2. Diversify export and further encourage import substitution
1.2.2.3. Upgrade import substitution industries
1.2.2.4. Encourage the use of locally-made products
1.2.2.5. Diversify the export market
1.2.2.6. Widen industrial activities in less developed regions in Malaysia
1.2.2.7. Invigorate R&D activities in both private and public establishments
1.2.2.8. Encourage the growth of heavy industries
1.2.2.9. Encourage growth oh SMEs
1.3. Industrial Master Plan 2 ( IMP2 ) 1996 - 2005
1.3.1. Objectives
1.3.1.1. To transform the manufacturing sector
1.3.1.2. Into a resilient , broad-based and internationally competitive sector
1.3.2. Strategies
1.3.2.1. Manufacturing Value Chan
1.3.2.1.1. Emphasis on pushing Malaysian manufactures higher up
1.3.2.2. Cluster-based industrial development
1.3.2.2.1. Clustering firms
1.3.2.2.2. Foster joint ventures and stimulate innovation
1.3.3. Key Strategic Thrusts
1.3.3.1. Encourage global orientation
1.3.3.2. Enhance competitiveness of the industrial sector
1.3.3.3. Improve requisite economic foundations
1.3.3.4. Nurture Malaysian-owned manufacturing companies
1.3.3.5. Adopt information-intensive and knowledge-driven processes
1.4. Industrial Master Plan 3 ( IMP3 ) 2006 - 2020
1.4.1. A 15-year blueprint for industrial development in Malaysia , riding on the theme
1.4.2. Emphasizes transforming and innovating the manufacturing and services sectors
1.4.3. Outlined 10 strategic thrusts under three broad spectrums
1.4.3.1. A) Development Initiatives
1.4.3.1.1. Enhacing Malaysia's position as a major trading nation
1.4.3.1.2. Generating investments in targeted growth areas.
1.4.3.1.3. Integrating Malaysian companies into the regional and global networks.
1.4.3.1.4. Ensuring industrial growth contributes towards equitable distribution
1.4.3.2. B) Promotion of Growth Areas
1.4.3.2.1. Sustaining the manufacturing sector's contribute to growth
1.4.3.2.2. Positioning the services sector as a major source of growth
1.4.3.3. C) Enhacing The Enabling Environment
1.4.3.3.1. Developing innovative and creative human capital
1.4.3.3.2. Strengthening the role of private sector institutions
1.4.3.3.3. Creating a more competitive business operating environment
1.4.3.3.4. Facilitating the development and application of knowledge-intensive technologies.
1.4.4. 10 Strategic Thrusts
1.4.4.1. Enhancing Malaysia's position as a major trading nation
1.4.4.2. Generating investments in targeted growth areas
1.4.4.3. Integrating Malaysian companies into regional and global networks
1.4.4.4. Ensuring that industrial growth contributes to equitable distribution and balanced regional development
1.4.4.5. Sustaining the manufacturing sector's contribution to economic growth
1.4.4.6. Positioning the service sector as a major source of growth
1.4.4.7. Facilitating the development and application of knowledge-intensive industries
1.4.4.8. Developing innovative and creative human capital
1.4.4.9. Strengthening the role of private sector institutions
1.4.4.10. Creating a more competitive business operating environment
2. Development of Small & Medium Industries in Malaysia
2.1. Small and medium enterprises (SMESs)
2.1.1. The backbone of industrial development in Malaysia's economy
2.1.2. Generally dominated by domestic companies
2.1.3. Defined as having annual sales turnover not exceeding RM25 million
2.2. Roles of SMEs
2.2.1. Creating employment opportunities
2.2.2. Strengthening industrial linkages
2.2.3. Contributing to development and modernization of manufacturing sector
2.2.4. Training ground for tomorrow's entreprenueurs
2.3. Challenges faced by SMEs
2.3.1. Limited access to finance and capital ; shortage of investment
2.3.2. Human resource constrains
2.3.3. Limited capability to meet market liberalization and globalization challenges
2.3.4. Limited capacity for technology management
2.3.5. Occupying sites that are not approved to be used for industrial purposes
2.3.6. Underutilization of technical assistance
2.3.7. Poor integration and linkages with large industries
3. Phases of Industrial Development
3.1. Early 1950s :
3.1.1. Very little manufacturing activity
3.1.2. Small contribution to GDP
3.1.3. Focus more on agriculture
3.2. Import Substitution Strategy (1957-1970)
3.2.1. Initiatives to develop industries
3.2.2. In order to produce outputs
3.3. Export Orientated Industrialization Strategy (Post 1970s)
3.3.1. Shifts focus to production geared for exports
3.3.2. Export promoted aggressively
3.4. Heavy Industry-based import substitution strategy (Post 1980s)
3.4.1. Heavy industries established with production of heavy industrial products
3.4.2. Active government participation in industrial development
3.5. High Technology Industries (Post 1990s)
3.5.1. Established to encourage the development of industrial technology
4. Roles of Industrial Sector
4.1. Increased contributions to the GDP, employment and exports.
4.2. Modernization of the economy
4.3. Plays an important role in downstream activities
4.4. Creates linkages between heavy industries and SMIs
4.5. Transferring of technology
4.6. Creates many opportunities and linkages
4.7. Transform Malaysia
4.8. Create cross-border collaborations
5. Development of Heavy Industries in Malaysia
5.1. Heavy industries
5.1.1. Implemented to facilitate economic linkages
5.1.2. Induce technology diffusion and broaden the industrial sector.
5.2. Role of Heavy Industries
5.2.1. Greater utilization of natural resources
5.2.2. Enhancement of technological capability
5.2.3. Development of inter-industry linkages
5.2.4. Employment creation
5.3. Challenges faced by
5.3.1. Lack of linkage between industries
5.3.2. High production cost
5.3.3. Small domestic market
5.3.4. Shortage of investments
5.3.5. Shortage of skilled labor