FDI AND EXPORT COMPETITIVENESSIN MALAYSIA.pptVIP

FDI AND EXPORT COMPETITIVENESS IN MALAYSIA Established in 1967 under Act of Parliament, 1965 The principal Malaysian Government agency responsible for the promotion and coordination of industrial development in the country Development Plans Embodies National Vision Policy Strengthening the manufacturing base by developing strong industrial clusters Sustaining the momentum of growth by strengthening manufacturing-related services Enhancing the local production of capital and intermediate goods to reduce import and foster industrial development Enhancing competitiveness through productivity improvements Developing resilient small and medium-sized industries (SMI) Increasing the use of ICT ‘Manufacturing Plus Plus’ Orientation Cluster Based Industrial Development ‘Manufacturing Plus Plus’ Orientation The Value Chain The Value Chain Internationally – Linked Clusters Policy - Driven Clusters Resource-Based Clusters Investment Trends of Approved Projects Sources of FDI (Top 5 Countries)1996-Oct 2001 Foreign Investments in Approved Projects By Major Industries 1996-Oct 2001 FDI in the manufacturing sector has brought tremendous benefits in terms of: Investments (equity financing, inter-company loans, retained earnings) To-date, FDI totals US$14 billion, constituting 47.6% of total investment of projects in operation. Multinational corporations (MNCs) from more than 40 countries have invested in over 3,000 projects in Malaysia’s manufacturing sector, including leading companies such as Matsushita, Motorola, Sony, BP Amoco, Acer, BASF, Idemitsu, Ericsson, etc. Employment Creation Foreign owned manufacturing companies have in their employ 557,828 persons, constituting 54.7 % of total employment in the manufacturing sector. Exports Manufactured goods accounted for the bulk of Malaysia’s total exports, with a share of 85.3% in 2000. EE products, which has the largest concentration of FDI, formed the single largest export item, valued at RM60.6 billion