The Importance of Manufacturing Industry in Malaysia

1. Discuss the importance of manufacturing industry in Malaysia. Manufacturing is the use of machines, tools and labor to produce goods for sale. The term may refer to a range of human activity from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Such finished goods may be used for manufacturing other, more complex products, such as household appliances, automobiles or sold town whole sellers, who in turn sell them to retailers, who then sell them to end users – the “consumers”.

Manufacturing takes turn under all types of economic systems. In a free market economy, manufacturing is usually directed toward the mass production of products for sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed by the state to supply a centrally planned economy. In mixed market economies, manufacturing occurs under some degree of government regulation. Modern manufacturing includes all intermediate processes required for the production and integration of a product’s components. Some industries such as semiconductor and steel manufacturer use the term fabrication instead.

The manufacturing sector is closely connected with engineering and industrial design. Examples of major manufacturers in Malaysia include Proton, PETRONAS and Palm Oil industry. Recently, manufacturing industries in Malaysia grow very rapidly if compared to previous decades. With the rapidly grow of manufacturing industries, the government has to play its role in order to ensure every aspects of current trading policies and regulatory to be obeyed. Other than that, this will ensure that the current trading and manufacturing environment in Malaysia to be peaceful yet globally competitive.

To start with, manufacturing sector in Malaysia contributes almost 80% of overall country’s export and besides, Malaysia also known as the 17 largest exporting nations in the world. For that reason, Malaysia’s government has to work hard in order to maintain, preserve and enhance our manufacturing sector. It is stated that products manufactured in Malaysia are accepted in developed countries such as US, EU and Japan. This shows that our manufacturing sector already achieved a level that can be proud of. As we all know, Malaysia also known for its agro-based sector.

In Malaysia, some commercial-based plants are heavily grown and these plants are harvested to produce some kinds of raw materials such as palm oils, rubber, timber, rice and fiber. Unfortunately, the income that can be generated from agro-based sector is not really huge compared to manufacturing sector. For that reason, with the availability of the manufacturing sector, Malaysia does not need to rely on the agro-based sector only. Furthermore, manufacturing sector can help in boosting the development of agro-based sector by offering the capabilities of some downstream activities such as product processing, packaging and distributing.

These activities are useful in order to turn the raw material (palm oil, rubber, rice) into finished product or half-finished product. Besides, the manufacturing sector can assist in the utilization and development of R&D and ICT adoption for business and manufacturing purposes. Along the way, ICT adoption can lead to the wider usage of electronic commerce for business to business. Other than that, ICT will facilitate the utilization of RFID and product coding standards. In the education aspects, the development in manufacturing sector can help to boost Malaysia’s education sector.

Manufacturing sector has the capability to offer and provide the working experience, industrial training and actual case study for education and other government sectors in Malaysia. As a matter of fact, undergraduate and postgraduate students in Malaysia can take these chances to

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get some exposure of working in manufacturing sector in Malaysia. Besides, a lot of researches can be conducted in order to solve industrial problems and this can lead to the occurrence of technology transfer and the discovery of new knowledge.

Despite that, Malaysia is one of the Islamic country and other than that, Malaysia also does a lot of active collaboration between other countries. Malaysia can be the “door” for other countries such as developed countries to do collaboration with other Islamic nations. In the same way, many Islamic countries have the ability to offer lower manufacturing costs especially the raw material, labor charge and business capital. From the collaboration with developed countries, the Islamic countries can enhance their economy conditions and receiving technology transfer.

In Malaysia’s manufacturing sector there is no end for continuous development efforts. In order to achieve the competitiveness level and innovative capability that up to the global standard, the manufacturing sector is doing its best. For example, Malaysia is doing collaboration with Australia via Free Trade Agreement (FTA). By implementing FTA, Malaysia is trying to achieve and put herself the global manufacturing environment. Along with that, Malaysia will be a country that manages to produce a higher-tech, higher-value added and more sophisticated products and services.

Similarly, joint-ventures and collaborations made with developed nations yield a lot of benefits. Next, Malaysia can go to a higher level and respected globally. In addition, through joint-ventures and collaborations, Malaysia can obtain a flow of expertise that her really need and as well as valuable technology transfer. On the other side, Malaysia can also carry out some projects abroad with the developed countries expertise and material and labor from Malaysia. This will give credits to both parties. After a while, Malaysia can be proud to be known as a successful developed country.

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