Econ 4450 (2010) Note 11

Econ 4450 (2010) Note 11 - How pro-active are the...

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Econ 4450 Note 11
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Case 5 Penang and the export-oriented electronics Wan ‘04 p. 322 Under the Gerakan administration, the economic policy of Singapore was emulated. The Bayan Lepas Free Industrial Zone was so successful which made Penang the only state of Malaysia with an export IT industry. The essential attraction were: Industrial Park Low wage Government effort to nurture local parts suppliers for MNCs
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As Rajah Rasiah (2002) showed that in Malaysia, government – business coordination may play a major role. The MNCs in microelectronics prefer local sourcing, if possible, so do the local SMEs in the machine industry. However, the intermediation by the local government is essential.
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Unformatted text preview: How pro-active are the government personnel can make the difference between the performance in Penang and in the Kelang Valley. With the availability of local suppliers in the machine industry, Penang has attracted such MNCs in microelectronics such as Intel, AMD, Dell, HP, Seagate, Komag The expansion of Chinese export has stunted Penang’s growth without wiped it out, as so many firms have invested so much. Yet the rest of Malaysia cannot compete internationally in electronics, even with the numerous government initiatives, plans. The Multimedia Super Corridor, for example, remains a beautiful blueprint, with little follow-up....
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This note was uploaded on 04/29/2010 for the course ECON 4450 taught by Professor Wan during the Spring '09 term at Cornell.

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Econ 4450 (2010) Note 11 - How pro-active are the...

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