Chapter 3 Linkages for Fostering Innovation Activities â Case ... - ERIA

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export-oriented strategy to promote industrial development. It was also during thisperiod that offshore operations in emerging economies started mushrooming as a resultof structural changes in the production networks of developed economies. Intensecompetition among MNCs for global market share and lower production costs wereamong the main factors that led to US, European and Japanese MNCs relocating someof their manufacturing operations overseas. Malaysia, which was moving ahead with itexport-led industrial programme in the 1970s was a major beneficiary of such a moveby the global MNCs. The table (2) below gives an idea of the subsectors of the E&Eindustry in Malaysia.Table 2 Structure of the E&E IndustrySectors Sub-Sectors Examples of ProductsElectrical Electrical Panels and Consoles, Switching Apparatus, lamps, air conditioners,vacuum cleaners, ovens, transformers, cables & wires, primary cells& batteries, solar cells and modules.Electronics Components Semiconductors, passive components, printed circuit boards, metalstamped parts and precision plastic parts.Consumer Audio visual products such as television receivers, portablemultimedia players (PMP), speakers, cameras and electronic games.Industrial Multimedia and information technology products such as computersand computer peripherals, telecommunications equipment and officeequipment.Source: MIDA Reports (www.mida.com.my accessed on Jan. 22nd 2010.The E&E industry continues to be the leading sector in manufacturing sector inMalaysia. As of 31 st Dec. 2008, Malaysia has more than 1800 companies producingE&E related products.93
Table 3 Investments in Approved Manufacturing Projects in E&E Industry,Malaysia 2008Employment Domestic Investment(RM million)Foreign Investment(RM million)Total Capital Investment(RM million)34,196 440.9 17,332.1 17,773.0Source: MIDA Reports (www.mida.com.my accessed on Jan. 22nd 2010).The E&E sector constitutes a significant part of the country's manufacturing output(29.3 per cent), exports (55.9 per cent) and employment (28.8 per cent). In 2008, grossoutput of the industry totalled RM167.2 billion (US$53.9 billion), exports amounted toRM233.8 billion (US$75.4 billion) and the industry created employment opportunitiesfor 296,870 people. (Source Invest Penang Website). From the Table 3 above, as of2008, it can be seen that the E&E sector in Malaysia has significant foreign investmentsrather than domestic investments. This is supported by data gleaned from Penanggovernment website (Table 4 below) showing investments for the first quarter 2008 –but this time by state. What is interesting is that though it’s the second smallest state inthe country – Penang is third in terms of number or protects and second in terms ofinvestments received.Table 4 Approved Manufacturing Projects by State, Jan-Mar, 2008State Number Employment Domestic Foreign Total CapitalInvestment (RM) Investment (RM) Investment (RM)Sarawak 10 3,243 461,566,450 12,538,888,124 13,000,454,574Pulau Pinang 29 5,244 4,234,202,777 462,000,501 4,696,203,278Selangor 58 3,721 313,768,700 1,413,535,179 1,727,303,879Johor 34 5,294 592,950,413 406,917,768 999,868,181Perak 13 637 86,906,692 622,715,775 709,622,467Sabah 13 1,749 274,737,534 229,014,947 503,752,481Terengganu 2 0 472,500,000 27,500,000 500,000,000Kedah 12 792 94,369,636 62,307,733 156,677,369Perlis 1 303 0 91,250,000 91,250,000Pahang 5 136 69,503,970 21,091,030 90,595,000Melaka 10 539 21,754,164 51,422,500 73,176,664Negeri Sembilan 3 225 31,798,123 5,355,568 37,153,691W.P. –2 311 6,057,000 14,038,750 20,095,750Kuala LumpurTotal 192 22,194 6,660,115,460 15,946,037,874 22,606,153,334Source: www.penang.gov.my (accessed in January 2010).94
Page 10 and 11: Table 5 PENANG: APPROVED MANUFACTUR
Page 12 and 13: participating in the survey, improv
Page 14 and 15: 1. Customized incentives to attract
Page 16 and 17: • Investment tax allowance on the
Page 18 and 19: developing certain factors conduciv
Page 20 and 21: Linkage with Other Cluster Actors T
Page 22 and 23: facility. Among the more recent inn
Page 25 and 26: precision engineering and manufactu
Page 27 and 28: Figure 5 Diagram of Firms Linkages
Page 29 and 30: 3.4.2. Key Drivers and Support For
Page 31 and 32: further develop the cluster are con
Page 33 and 34: Kontron has healthy inter firm link
Page 35 and 36: which houses manufacturing cells an
Page 37 and 38: this requires the application for t
Page 39 and 40: with a university (Multimedia Unive
Page 41 and 42: the federal government and good inf
Page 43 and 44: 3.9. Case #9 - Motorola MalaysiaFou
Page 45 and 46: Figure 11 Diagram of Motorola Linka
Page 47 and 48: co-develops products and also uses
Page 49 and 50: customers, as developers of supplie
Page 51 and 52: author is trying to make contact) b
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5.4. Entrepreneurial Culture for In
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Appendix AScience and Technology In
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undertaking reinvestments D (by way
Page 59:
Enrolment and Graduation in Doctora
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