| ID | 156968 |
| Title Proper | Energizing the manufacturing sector |
| Other Title Information | can Malaysia move forward? |
| Language | ENG |
| Author | Devadason, Evelyn S ; V.G.R. Chandran, Evelyn S. Devadason ; Chandran, V GR |
| Summary / Abstract (Note) | The paper reviews and assesses the performance of the manufacturing sector in general, as well as the catalytic industries identified in the Eleventh Malaysia Plan (11MP), to ascertain whether the initiatives and targets proposed in the Plan are adequate to energize and move the sector forward. In doing so, the paper uses industrial policy arguments — market and government failures — to explain the slow progress of the sector. The findings suggest that market failures — in terms of lagging industrial capabilities and economies of scale, market frictions, lack of support for self-discovery by firms and diversification — require government intervention. Nevertheless, defying comparative advantage and identifying frontier products that show lacklustre performance to spearhead the sector under the Plan certainly require substantial improvements in institutional capabilities, coordination and institutional learning, while maintaining respect for markets and incentives. The paper concludes that lack of recognition to address government failures limited the success of policies implemented. |
| `In' analytical Note | Journal of Southeast Asian Economies (ASEAN Economic Bulletin Change the Name ) Vol. 34, No.3; Dec 2017: p.523-551 |
| Journal Source | Journal of Southeast Asian Economies (ASEAN Economic Bulletin Change the Name ) 2017-12 34, 3 |
| Key Words | Malaysia ; Manufacturing Sector ; Energizing |