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

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