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PEG3023 MALAYSIAN ECONOMY

ARTICLE REVIEW: INDUSTRIAL


/MANUFACTURING SECTOR IN
MALAYSIA

NAME

INTAN

SYAFIKA

BINTI

MATRIX NO.

D20111047997

LECTURERS NAME

DR. ZAINIZAM BIN ZAKARIYA

GROUP

ANUAR

I would like to review an article about manufacturing sector in Malaysia. This article title is
High-value manufacturing Malaysias next frontier dated May, 14 2014 from Business
Circle.
Based on this article, it stated that in 2005, service sector has increased from 47
percent to 55 percent of nations GDP in 2013. On the other hands, manufacturing sector
decreased from 28 percent to 25 percent of nations GDP. Chief Executive Officer of
Performance Management and Delivery Unit, Dato Sri Idris Jala said that services sector is
unfriendly exportable compared to manufacturing sector. Service sector create a service
whenever a client require it while manufacturing sector produce goods for stock that aligned
with market demand. We can see that service sector might face a situation where there are no
requirement needed because no customer need it but manufacturing sector will always
produce goods without a customer order because some of the goods are forecasted to be
needed in the future. Maybe in future, the services needed also need to be manufactured
because of the progress of technology. Thus, manufacturing sector, in future, is quite
exportable.
Manufacturing sector can be innovated by research and development because as it is
exportable, it will improve Malaysias export numbers and make the country growth more
sustainable. The investment in research and development not only increase Malaysias growth
income but also increase the job opportunity. More specialists are needed to research and
develop the manufacturing sector which contributes to 20 percent to 30 percent of high-value
positions. Therefore, more parties have to play their role to produce the specialist to conduct
the R&D in manufacturing sector. The government, for instance, has to produce this human
capital since at school. Thus, expert teachers are needed so that young people are exposed to
the benefits of R&D especially to the country. Universities in Malaysia should empowered to
develop and retain capable talent to conduct the R&D. The capital to conduct the R&D also
needed with the investment of local and foreign sources because without proper technologies,
the R&D are not good enough for the development of manufacturing sector in Malaysia.
It is important for many parties to play their role because as the manufacturing sector
continue to develop and innovate, Malaysia will easily face the challenging economic in the
future by year 2020 as Malaysia has a vision to become a developed country in 2020. Without
innovation and development in manufacturing sector, it will not give a huge contribute to the
nations GDP. It will be an unfortunate for Malaysia to not accept the challenge to develop
manufacturing sector as the technologies continue to grow day by day.