By Mohammad Anuar Adnan, Masudul Alam Choudhury, Uzir Abdul Malik
The Malaysian economic system is constructing speedy in the context of accelerating globalization. The ebook analyses extensive Malaysia's regulations aimed toward selling overseas alternate, fiscal development and social welfare. It additionally experiences Malaysia's place within the Southeast Asia zone and in an international context. This research types the foundation for the formula of an alternate improvement technique, whose target is generating a being concerned civil society and adorning the overall welfare of the inhabitants whereas constructing the economic climate.
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Extra resources for Alternative Perspectives in Third-World Development: The Case of Malaysia
Many of the incentives and facilities, like pioneer status, investment tax allowance and Free Trade Zones (FTZs), were taken advantage of by foreign investors, apart from the political and economic stability of the country. Foreign investments have contributed a significant proportion of fixed assets, output and employment, which together with superior tech- H. Osman-Rani 23 nology and market outlets have propelled manufacturing growth of the country. Foreign firms too have contributed and offer great potential for Malaysia's development in terms of technology transfer, skill training or upgrading and R&D activities (Ali, 1994).
Under the 011, six strategies have been identified: (i) increasing the domestic value added; (ii) strengthening and improving accessibility to the local capital markets; (iii) developing Malaysian multinational anchor companies; (iv) strengthening SMI development; (v) strengthening the institutional support; and (vi) developing infrastructure for domestic use through special industrial estates, and provision of common user services such as testing and designing (MITI, 1994). H. Osman-Rani 17 Since the total expenditure on imports is very substantial compared with that on locally produced goods, potentials in the production to replace these imports are tremendous.
However, in the past, Malaysia has been able to safeguard its stability fairly well despite its openness, partly due to its built-in stabilisers, such as high marginal propensities to save and to import, and prudent macroeconomic initiatives. 22 Malaysia's Economic Performance FOREIGN INVESTMENTS Fundamental to the growth of exports and the Malaysian economy in general is the role played by foreign direct investment (FDI). The contribution of FDI can be seen not only in terms of production and exports but also in terms of structural changes taking place in the economy, that is, transforming the economy from being agriculture based to an industry based .
Alternative Perspectives in Third-World Development: The Case of Malaysia by Mohammad Anuar Adnan, Masudul Alam Choudhury, Uzir Abdul Malik