how the SRIs and its policy measures can provide a better and sustainable compet itive advantage

to local firm and industries in Malaysia. INTRODUCTION The strategic reforms initiatives is a policy measures that will boost Malaysia global competitiveness, productive and join in the rank of high-income economics which involves; Inclusive and Sustainable approaches. Inclusive growth to enable the benefits to be broadly shared across all communit ies and Sustainable growth augments the wealth of current generations in a way t hat does not come at the expenses of future generations. The initiative of SRIs policy measure is that the Malaysia government encouragem ent for private sectors (local firms and industry) to take the lead in identifyi ng areas of future growth, to develop a quality workforce and thereby reducing d ependency on foreign labor. To have a domestic markets that is strengthen and co mpetitive, a market is that transparent and friendly. SRI 1: Re-energizing the private sector to lead growth Firing up the private sec tor through deregulation, liberalization and effective enforcement of the compet ition law, in line with international standards will stimulate a jump in investm ent in high value added products and services, generating sustained growth and h igh income. SRI 2: Developing quality workforce and reducing dependency on foreign labor Ins piring the workforce to draw out their best requires better education and skill training programmes. The focus is on generating a talented workforce to meet the needs of a knowledge economy. Labor market distortions which hamper wage growth , such as excessive of foreign labor, will be removed. SRI 3: Creating a competitive domestic economy Malaysians will enjoy the benefit s of vibrant markets and greater choices in the absence of market distortions th at lead to misallocation of resources. Subsidies and price controls will be phas ed out gradually. The impact on the vulnerable groups will be cushioned with an enhanced social safety net. SRI 4: Strengthening the public sector A lean and customer-focused government wi ll improve delivery of public services. Sound public finance is essential for sa feguarding macroeconomic stability and enhancing the future prospects of the rak yat. SRI 5: Transparent and market-friendly affirmative action Affirmative action pro grammes will help the bottom 40% of households escape low income and will be cen tred on capacity building. Targeted programmes for certain groups outside of the bottom 40%, particularly small and medium enterprises (SMEs) within the Bumiput era Commercial and Industrial Community (BCIC), must be market-friendly, transpa rent, needs- and merit-based so as not to breed rent-seeking and patronage pract ices. SRI 6: Building the knowledge base infrastructure Recognizing that entrepreneurs hip and innovation are not going to emerge on their own, the key focus here is t o promote an environment and ecosystem for innovation by strengthening the deliv ery of high quality education that nurtures innovation and technology. SRI 7: Enhance the sources of growth Malaysia will leverage its natural endowmen t and sectors of comparative advantage as the main sources of high value added g rowth maximizing, spillover effects into new areas of activities. SRI 8: Ensure sustainability of growth Preserving our natural resources and stri ving for sustainable public finances through stringent fiscal discipline, will s afeguard the interest of future generations. A CLOSE LOOK AT THE STRATEGIC REFORMS INITIATIVE (SRIs) Re-energizing the private sector Developing quality workforce and reducing dependency on foreign labor Creating a competitive domestic economy

Strengthening of the public sector Transparent and market friendly affirmative action Building the knowledge base infrastructure Enhancing the sources of growth Ensuring sustainability of growth THE BENEFITS OF SRIs & ITS POLICY MEASURES TO LOCAL FIRMS AND INDUSTRIES IN MALA YSIA With a proper implementation of the strategic reforms initiatives and its policy measures, local firms and industries in Malaysia stand the chances of being glo bally competitive productively. Local firms and industries will be able to competitive with a fair competition i n place and this will bring among innovation in their styles of production and p roducts. Local firms and industries will be able to target high value added prod ucts and services. With a rule of law in place, local firms and industries will be able to operate in the right arms of the law regulating them. Local firms and industries in Mala ysia will be able to manage businesses with the assurance of a fair and credible legal system. Local firms and industries will be able to seek justices and redr ess to legal issues without fear of losing their cases. Local firms and industries in Malaysia will be able to have freedom to fully own their businesses and choose their partners of business. They dont have to worry over government interference in their business ownership and their intellectual assets will be fully protected by right laws in place. With SRIs and its policy measure properly implemented, local firms and industrie s will be able to raise funds and have flexibility in rising funds in running th eir business. Locals firms and industries will have flexible and prompt access t o SME funding from the SME schemes and industrial banks, under strong governance rules. They do not have to lobby in the process of raising funds for their busi nesses to expand and grow. SRIs and its policy measures in place market transparency will be of great benef its to local firms and industries which will bring about absence of rent-seeking and quotas, with support to business based on market principles. With market tr ansparency, there will be reduction in risk, reduce incidence of misconduct as a result of effective oversight. It will increase probability of the detection of market misconduct. And lastly, there will be increase in total welfare firms an d industries. With SRIs and its policy measure properly implemented, local firms and industrie s will benefit greatly from the creation of new markets. With the improvement in maritime and port-service, they will be able to export their products and servi ce easily and importations will be cleared easily without long process. Malaysia becoming a regional trade/distributional hub, local firms and industries will h ave a greater sales in their products and much easier for there to partner with their foreign counter-part. A comparative advantage of the SRIs and its policy measures is that it will not be difficult for local firms and industry to do business in the Malaysia environ ment and with an improvement in skills and knowledge development, local firms an d industries will be able to engage the right talents in their operations that w ill bring about competitive innovations to the firms and industries. Another com petitive advantage of the SRIs and its policy measures is that local firms and i ndustries will be able to sell their products and service through innovation-bas ed comparative advantages global supply chain that is properly place. CONCLUSION In order for local firms and industries to compete globally and Malaysia achievi ng its vision 2020 goals, SRIs and its policy measure should be properly impleme

nted. SRIs means strategic reform initiatives and these initiatives are to be im plemented in order for Malaysia becomes an advanced country. The SRIs and its po licy measure is for Malaysia to be globally competitive, productive and be rank among high-income economic. Malaysia be strategically located and should leverage its geography and excellen t infrastructure to benefits from regional and global growth, which will be a be tter and sustainable competitive advantage to local firms and industries in Mala ysia. Local firms and industries will be innovative, as result of skilled and k nowledge improvement. Therefore, policy-makers should ensure that they focus int ensely in achieving the SRIs and its policy measures so that local firms and ind ustries will be able to technologically developed and capable to compete. REFERENCE NEAC (December, 2010). Executive summary New economic model for Malaysia - http:/ /www.neac.gov.my/files/Executive_Summary_Concluding.pdf TheStar Online (March 31, 2010) Eight strategic reform initiative identified; htt p://thestar.com.my/news/story.asp?file=/2010/3/31/neweconomicmodel/5968341&sec=n eweconomicmodel Zakri Abdul Hamid (May 24, 2010) Positioning biotechnology in the new economic mo del; http://www.docstoc.com/docs/79130487/High-Income-Economy-in-Malaysia