chapter 6 - Malaysia Productivity Corporation ( MPC)

in particular E&E. This sub-sector will be the most
affected due to sluggish growth in the advanced
economies as it would adversely affect demand
for personal computers and semiconductors. This
sector also faces competition from the countries in
the region like China, Taiwan, Singapore and other
Asian countries. Malaysia’s E&E sub-sector remains
focused on assembly, which is the lower value added
part of the industry while the above-mentioned
countries have captured the higher value-added
activities in research and development (R&D),
design and manufacturing. Nevertheless, the E&E
cluster will be supported by new source of growth
such as integrated circuits, solar photovoltaic,
light emitting diodes and solid state lighting and
integrated electronics. Viewing from its diversity,
the E&E sub-sector can offer products for unique
market characteristics and different global trends.
Subsequently, resources can easily be allocated
to different products that can capture consumer
taste and demand and will sustain a stable growth
of this sub-sector.
The oil and gas sub-sector will remain strong in
2012 viewing from its high growth in 2011 and
the growth will continuously supported by strong
domestic demand. Its strategy to focus on four
key thrusts: sustaining oil and gas production,
enhancing downstream growth, making Malaysia
the number one Asian hub for oil field services and
building a sustainable energy platform for growth
will help this sector to sustain higher growth. The
introduction of incentives to the producers like the
approval of the Petroleum Income Tax Act (PITA)
Amendment Bill in line with the four strategic
thrusts of the NKEA will definitely encourage
significant investment in this sector especially by
the major industry players.
CHAPTER 7
The palm oil industry will continue to face greater
challenges in 2012. This industry must find new
upstream activities to be developed as the
downstream activities are limited. The primaryrelated
cluster is also projected to grow at the
moderate level. However, growth in this industry
will be supported by demand by other countries in
the region, especially the resource-based products
such as chemical products, refined petroleum
products, and rubber products. The identification
of eight EPPs under this industry, which aims to
ensure sustainability, improve productivity and
develop the downstream activities, will boost the
growth of this industry in the coming years.
The domestic-oriented industries is expected to
spur the performance of manufacturing sector in
particular the construction related manufacturing
sub-sectors which are expected to grow in line with
the expansion of the various EPPs. The consumer
related cluster is also anticipated to record positive
growth due to higher consumer spending.
Despite its slow growth, the manufacturing sector
is expected to be driven by higher value-added
activities. Product diversification like solar energy
and medical devices will help the manufacturing
sector to spur and be resilient. The Government
efforts to boost SMIs will help this sector to expand
and engage in higher value-added activities.
Subsequently, the manufacturing sector as a
whole will achieve higher growth as SMIs form
more than 80% of manufacturing establishments.
Apart from this, more EPPs in the pipeline will be
implemented and this certainly will boost the
growth of the manufacturing sector. The EPPs that
had already implemented will yield output and
help manufacturing sector to growth in 2012.
171