Industrializing Malaysia: Policy, Performance, Prospects

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Despite growing concern over environmental issues and the sustainability of economic growth, industrialization is still generally associated with progress and development. This is particularly true of developing countries where industrialization is often the nation's top priority. Industrializing Malaysia presents a critical analysis of the experience of industrialization in Malaysia, examining the role, impact and efficacy of post-independence industrialization policies. The author refocuses attention on some major intended as well as unintended implications and consequences of policies and performance. A wide range of issues is covered: in addition to general historical commentaries and sectoral studies, there are analyses of direct foreign investment, technology, linkages, free trade zones, industrial estates, and rural development.

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INDUSTRIALISING MALAYSIA Despite growing concern over environmental issues and the sustainability of economic growth, industrialisation is still generally associated with progress and development. This is particularly true in Third World countries where industrialisation is often the nation’s top priority. Industrialising Malaysia presents a critical analysis of the experience of industrialisation in Malaysia, examining the role, impact and efficacy of postindependence industrialisation policies. The volume seeks to refocus attention on some major intended as well as unintended implications and consequences of policies and performance. A wide range of issues is covered: in addition to general historical commentaries and sectoral studies, there are analyses of Direct Foreign Investment, technology, linkages, Free Trade Zones, Industrial Estates and rural development. In discussing these issues the authors also examine the duality in Malaysian industrialisation between the import-substituting sector and export-oriented industries. Throughout, arguments and analyses are clearly presented and in many instances are supported by case studies while the final chapter offers advice for future policy options. The editor, Jomo K.S., is professor of economics at the University of Malaysia. The book has a wide range of international contributors with half drawn from Malaysia and the other half from India, the USA, the United Kingdom and Australia. INDUSTRIALISING MALAYSIA Policy, performance, prospects Edited by Jomo K.S. London and New York First published 1993 by Routledge 11 New Fetter Lane, London EC4P 4EE Simultaneously published in the USA and Canada by Routledge 29 West 35th Street, New York, NY 10001 This edition published in the Taylor & Francis e-Library, 2002. © 1993 Jomo K.S. All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any storage or information retrieval system, without permission in writing from the publishers. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN 0–415–09647–2 Library of Congress Cataloging in Publication Data has been applied for ISBN 0–415–09647–2 (Print Edition) ISBN 0-203-02191-6 Master e-book ISBN ISBN 0-203-15463-0 (Glassbook Format) CONTENTS List of Figures List of Tables Notes on Contributors Acknowledgements List of Abbreviations vii viii xii xiv xv INTRODUCTION Jomo K.S. 1 1 MALAYSIAN INDUSTRIALISATION IN HISTORICAL PERSPECTIVE Jomo K.S. and Chris Edwards 14 2 LABOUR FLEXIBILITY IN THE MALAYSIAN MANUFACTURING SECTOR Guy Standing 40 3 DIRECT FOREIGN INVESTMENT IN THE MALAYSIAN INDUSTRIAL SECTOR Anuwar Ali and Wong Poh Kam 77 4 FREE TRADE ZONES