Other moves that Malaysian ministers hope to see realised include clean governance, establishing a business- and investment-friendly environment, and moving up the value chain with high-tech production.
According to a recent report, Malaysian manufacturers need to acquire new skills and diversify their production base, the Prime Minister of Malaysia urges.
The Prime Minister said this was preferred instead of being a only nation of consumers who can only import goods at the cost of devaluing the country’s currency.
Speaking at the 50th-anniversary celebrations of the Federation of Malaysian Manufacturers (FMM), he assured those present that the government was business-friendly. He stated has observed that the future of the country depends on manufacturing, and FMM must encourage their members to study other products that can be manufactured in Malaysia.
The Prime Minister remarked that although the government wanted to look after the citizens’ welfare, wealth creation was through business, and when the country’s’ businesses prospered, 24% of those profits also belonged to the government in the form of taxes.
This he said, could then be used to build improve the national infrastructure for both businesses and citizens. It was pointed out that while the country used to depend on primary industries such as tin, rubber and palm oil, these sectors were now exhausted or faced a backlash from environmentalists.
He remarked that one acre of land can hardly support a man for agriculture, but it can support 500 people if they are involved in manufacturing, noting that it is strange for a country that used to be agricultural that at one point, 80% of our exports were manufactured goods, said the Malaysian leader, referring to the late 1990s.
Recalling his recent trip to China where he visited high-tech factories such as a drone manufacturing plant, the Prime Minister said he hoped to see similar technologies being researched and manufactured here.
The golden anniversary celebrations were also attended by the Prime Minister’s wife and members of his cabinet, including the Economic Affairs.
The President of FMM, in his speech, outlined four success factors for local manufacturers, including supporting a “buy Malaysian” campaign as a way of boosting domestic sales.
Other factors outlined included clean governance, establishing a business- and investment-friendly environment, and moving up the value chain with high-tech production. The leader called on the government to come up with policies to revitalise manufacturing, as the country was suffering from premature deindustrialisation.
He noted that the contribution of manufacturing to Malaysia’s GDP has dropped from 32.3% in 2000, 30.1% in 2007, 24% in 2008 and has remained stagnant at 23% since 2013.
The federation president also called for direct tax incentives, with greater certainty and transparency, and grants for resource-strapped small-and-medium enterprises (SMEs) to encourage investment in technology and innovation.
While calls are being made for further revamping of the Malaysian economy and manufacturing procedure, move are being made.
As reported earlier, Malaysia’s disruptive technology-driven car will debut in 2020. This new car will reportedly use 100 per cent disruptive technology and not follow conventional car manufacturing methods.
The model is under the new national car project (NNCP) mooted by the country’s Prime Minister.
Its prototype is expected to be rolled out early next year, followed by the real car itself for consumers by 2020, said the Malaysian Industry-Government Group for High Technology (MIGHT) president and chief executive officer.
We release new articles daily on trending topics within technology and the public sector. Subscribe to have weekly digests of our articles conveniently sent to your email address.
Mövenpick Hotel and Convention Centre KLIA
One Farrer Hotel
Sheraton Towers Singapore
Putrajaya Marriott Hotel
Marina Bay Sands, Singapore
JW Marriott Jakarta