The Malaysian Economic Clusters: Challenges and Prospects

Transcription

1 The Malaysian Economic Clusters: Challenges and Prospects MOHD EZANI MAT HASSAN G R A D U A T E S C H O O L O F B U S I N E S S U N I V E R S I T I K E B A N G S A A N M A L A Y S I A ( N A T I O N A L U N I V E R S I T Y O F M A L A Y S I A )

2 Brief Background of Malaysia Location Formation of Malaysia Independence: 31 August 1957 Formation Date: Sept. 16, [Initially, Malaysia comprised the territories of Malaya (now Peninsular Malaysia), the island of Singapore, and the states of Sarawak and Sabah in northern Borneo] In August 1965 Singapore seceded from the federation. Malaysia =Peninsular Malaysia + Sarawak + Sabah Member of the Commonwealth, OIC.

3 Basic Information Malaysian Flag - Jalur Gemilang Access to Information and Communications 74.56; Rank: 55 Personal Safety 71.30; Rank: 59 Population: 32,132,302 GDP PPP per capita: $25,312 (Rank: 33/128) 2017 SPI: (Rank: 50/128) Water and Sanitation 94.46; Rank: 43 Environmental Quality 69.13; Rank: 53 Shelter 87.13; Rank: 21 Source: Malaysian SPI Scorecard

4 Malaysia: 40 Years of Poverty Reduction

5 Biodiversity Malaysia signed the Rio Convention on Biological Diversity on 12 June 1993, and became a party to the convention on 24 June mammal species, over 620 species of birds 250 reptile species 150 species of snakes, 80 species of lizards, 150 species of frogs, and thousands of insect species The waters around Sipadan island are the most biodiverse in the world. Source: Wiki

6 Transportation Malaysia's road network is one of the most comprehensive in Asia and covers a total of 144,403 kilometres (89,728 mi). Malaysia has 118 airports. Major international routes and domestic routes served by Malaysia Airlines, AirAsia and Malindo. Malaysia is strategically located on the Strait of Malacca, one of the most important shipping lanes in the world. Two Malaysian ports that are listed in the top 20 busiest ports in the world, Port Klang and Port of Tanjung Pelepas, which are respectively the 2nd and 3rd busiest ports in Southeast Asia after the Port of Singapore. 1,833 kilometres (1,139 mi) of railways in Malaysia, of which 767 km (477 mi) are double tracked and electrified. Rail transport in Malaysia comprises heavy rail (KTM), light rapid transit and monorail (Rapid Rail) Source: Wiki

7 Diverse Population Population Year Million Source: Wiki

8 Students Project at HBS on Malaysian Clusters The Malaysian Palm Oil Cluster Abbai Belai, Daniel Boakye, John Vrakas, Hashim Wasswa Microeconomics of Competitiveness May, 2011 Source: HBS MOC Students Projects

9 National Diamond for Malaysia Factor Conditions + diverse population and cultures + abundance of endowments (cultural heritage, biodiversity, natural res.) + strategic geographic location - lack of higher skilled employees - limited R&D investments and less spending on specialized research and training Context for Firm Strategy and Rivalry + open and liberal foreign trade + matured and stable political environment + favorable legal and tax policies for business - restrictive environment on foreign ownership - weak enforcement on IP rights - increased perceived level of corruption Related and Supporting Industries + explicit cluster and econmic corridor development strategy (for example, MSC, ECER, Iskandar, etc) + significant IT, electronics and semiconductor cluster + strong contributions of commodities exports (such as palm oil and rubber) + stable and efficient banking sector - weak environmental laws enforcement - slow entrance of latest technologies Demand Conditions + highly exposed to global markets +government as readily receptive to new technologies + increased customers sophistication - relatively small domestic market - weak regulatory enforcement of standards

10 Semiconductor Cluster

11 Diamond Analyses - Semiconductor

12 Palm Oil Cluster

13 Palm Oil Cluster Diamond Analyses

14 Tourism: Growing Trend Tourism Malaysia

15 Tourism: Growing Trend

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18 Challenges of Malaysian Economic Development Economic inequality Rising costs Specialised and higher skills development Foreign worker migrants

19 Challenges of Malaysian Economic Development Upgrading of economic clusters Trade Wars (between US and China) Risk of policy changes

20 Prospects of Malaysian Economic Development Diversified structure of Malaysian economy Continuing growth trend of economy Major infrastructure development plans Stable and mature politics

21 Greater economic inclusiveness policies More private sector participations in infrastructure development Increased domestic demands

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