TITLE : SECOND INDUSTRIAL MASTER PLAN 1996-2005, THE.

 
CHAPTER 1 - MALAYSIA'S INDUSTRIALIZATION CHALLENGES
 
I.		INTRODUCTION										3
II.		EVOLUTION OF THE MANUFACTURING SECTOR				4
III.	REVIEW OF THE INDUSTRIAL MASTER PLAN, 1986 - 1995	7
		
		Growth of the Manufacturing Sector					8
		Structural Concerns									9
 
IV.		THE SECOND INDUSTRIAL MASTER PLAN (IMP2),	1996 - 2005
 
		Rolling Plan										12	
 
V.		MACRO-ECONOMIC FRAMEWORK OF THE IMP2				12
 
		Sectoral Growth Prospects							12
		Aggregate Demand									15	
 
VI.	    THE IMP2 AND VISION 2020							17
Vll.	CONCLUSION											18
 
 
 
CHAPTER 2 - CLUSTER-BASED INDUSTRIAL DEVELOPMENT
 
I.		INTRODUCTION										21
 
II.		THE NEED FOR CLUSTER-BASED INDUSTRIAL DEVELOPMENT	22
 
III.	ELEMENTS OF CLUSTER DEVELOPMENT						23
 
			Clusters
			Value-added and Value Chain
			Key Suppliers
			Requisite Economic Foundation
 
IV.		THE Manufacturing + + STRATEGY FOR MALAYSIA			30
V.		TYPES OF POTENTIAL INDUSTRIAL CLUSTERS				31
Vl.		MALAYSIAN INDUSTRIAL CLUSTERS						32
Vll.	REGIONAL DISTRIBUTION OF INDUSTRIES					36
 
			Electrical and Electronics Industry Group
			Transportation Industry Group
			Chemical Industry Group
			Textiles and Apparel Industry Group
			Resource-based Industry Group
			Materials and Advanced Materials Industry Group
			Agro-based and Food Products Industry Group
			Machinery and Equipment Industry Group
 
VIII.	 CONCLUSION											47	
 
 
CHAPTER 3 - ELECTRICAL AND ELECTRONICS INDUSTRY GROUP
 
I.		INTRODUCTION										51
II.		CURRENT STATUS										51
 
			Electrical Sector
			Electronics Sector
			International Perspective
			Electrical Appliances
			Electrical Industrial Apparatus
			Semiconductors
			Computers And Peripherals
			Telecommunications Equipment
			Consumer Electronics
 
III.	ISSUES AND CHALLENGES								63	
 
			MNC-driven E &E Industry
			High Import Content
			The Missing Link-Wafer Fabrication
			Development of Malaysian Brand Names
			Maximise Opportunities in the Multimedia Super Corridor 		
				(MSC)
 
IV.		 POLICIES AND STRATEGIC DIRECTIONS						75	
 
			Developing the Value Chain
			Deepening the Supply Chain
			Move into Higher Technology Plane
			Establishing Wafer Fabrication Facilities
			Develop World Class Malaysian owned Companies
			Develop IT and the Multimedia Industry
 
V.		CONCLUSION
 
 
CHAPTER 4 - TEXTILES AND APPAREL INDUSTRY GROUP
 
I.		INTRODUCTION										89
II.		CURRENT STATUS										89
 
			International Perspective
 
III.	ISSUES AND CHALLENGES								94
 
			Production Skewed towards Low-End Commodity Apparel
			High Dependence on Contract Manufacturing
			Weak Linkages between Sectors
			Shortage of Skilled Workers
			Competition
			Technology
			Research and Development
 
IV.		POLICIES AND STRATEGIC DIRECTIONS
 
			Move to Higher Value-added Commodity Apparel
			Shift To High Value Specialty Apparel
			Encourage Development of Malaysian Brand Apparel
			Strengthen and Expand The Production of Industrial and
				Home Textiles
			Strengthen the Value Chain through the Development
				of Dyeing, Printing And Finishing Sub-sector
			Build up Core Technology in Textile Machinery
			Acquire And Develop Capabilities In Process Technology
			Concentration of Textiles and Apparel Enterprises
			Enhancing Marketing Capabilities
			Upgrading Human Resource Skills
 
V.		CONCLUSION
 
 
CHAPTER 5 - CHEMICAL INDUSTRY GROUP	
 
I.		INTRODUCTION
II.		PETROCHEMICAL SECTOR
 
			Current Status
			Issues and Challenges
			Policies and Strategic Direction
 
III.	PHARMACEUTICAL SECTOR
 
			Current Status
			Issues and Challenges
			Policies and Strategic Directions
 
IV.		 CONCLUSION
 
 
CHAPTER 6 - RESOURCE-BASED INDUSTRY GROUP
 
I.		INTRODUCTION										133
II.		WOOD-BASED SECTOR									133
 
			Current Status
			International Perspective
			Issues and Challenges
			Policies and Strategic Directions
 
III.	RUBBER-BASED SECTOR									151
 
			Current Status
			Issues and Challenges
			Policies and Strategic Directions
 
IV.		 PALM OIL -BASED FOOD SECTOR						167	
 
			Current Status
			Issues and Challenges
			Policies and Strategic Directions
 
V.		OIL PALM-BASED NON-FOOD SECTOR						181
 
			Current Status
			Issucs and Challenges
			Policies and Strategic Directions
 
Vl.		 COCOA-BASED SECTOR									189
 
			Current Status
			Issues and Challenges
			Policies and Strategic Directions
 
VII.	 CONCLUSION											200	
 
 
CHAPTER 7 - AGRO-BASED AND FOOD PRODUCTS INDUSTRY GROUP
 
I.		INTRODUCTION										203
II.		FISH AND FISH PRODUCTS								204
 
			Current Status
			Issues and Challenges
			Policies and Strategic Directions
 
III.	LIVESTOCK AND LIVESTOCK PRODUCTS					204
 
			Current Status
			Issues and Challenges
			Policies and Strategic Directions
 
IV.		 FRUITS AND VEGETABLES								215
 
			Current Status
			Issues and Challenges
			Policies and Strategic Directions
 
V.		FLORICULTURE										241
 
			Current Status
			Issues and Challenges
			Policies and Strategic Directions
 
VI.		 CONCLUSION											252	
 
 
CHAPTER 8 - TRANSPORTATION INDUSTRY GROUP
 
I.		INTRODUCTION										255
II.		AUTOMOTIVE SECTOR									255	
 
			Current Status
			Issues and Challenges
			Policies and Strategic Directions
			Plan of Action
 
III.	MOTORCYCLE SECTOR									276
 
			Current Status
			Issues and Challenges
			Policies and Strategic Directions
			Plan of Action
 
IV.		 MARINE TRANSPORT SECTOR							283
 
			Current Status
			Issues and Challenges
			Policies and Strategic Directions
			Plan of Action
 
V.		AEROSPACE SECTOR									301
 
			Current Status
			Issues and Challenges
			Policies and Strategic Directions
			Plan of Action
 
Vl.		 CONCLUSION											321
 
 
CHAPTER 9 - MATERIALS INDUSTRY GROUP
 
I.		INTRODUCTION										325
II.		POLYMER SECTOR										325
 
			Current Status
			Issues and Challenges
			Policies and Strategic Directions
			Plan of Action
 
III.	METAL SECTOR										338
 
			Current Status
			Issues and Challenges
			Policies and Strategic Directions
			Plan of Action
 
IV.		 COMPOSITE SECTOR									352
 
			Current Status
			Issues and Challenges
			Policies and Strategic Directions
			Plan of Action
 
V.		CERAMIC SECTOR										364
 
			Current Status
			Issues and Challenges
			Policies and Strategic Directions
			Plan of Action
 
Vl.		 CONCLUSION											376
 
 
CHAPTER 10 - MACHINERY AND EQUIPMENT INDUSTRY GROUP
 
I.		INTRODUCTION										379
II.		CURRENT STATUS										379
 
			Production Machinery
			Production Tooling
			Materials Handling Systems
			Production Machine Accessories and Parts
			Testing and Measuring Equipment and Accessories
 
III.	ISSUES AND CHALLENGES								387
IV.		POLICIES AND STRATEGIC DIRECTIONS					390
V.		CONCLUSION											399
 
 
CHAPTER 11 - STRATEGIC DIRECTIONS AND INITIATIVES
 
I.		INTRODUCTION										403
II.		ECONOMIC FOUNDATION FOR CLUSTER DEVELOPMENT			403
 
			Human Resource Development
			Technology
			Incentives
			Business Support Services
			Physical Infrastructure
 
III.	 THE ROLE OF SMls IN CLUSTER DEVELOPMENT			418
 
			Machinery and Equipment Industry
			Electrical and Electronics Industry
			Automotive and Motorcycle Industry
			Marine Transportation Industry
			Wood-based Product Industry
 
IV.		 CONCLUSION											423	
 
 
CHAPTER 12 - INSTITUTIONAL FRAMEWORK
 
I.		INTRODUCTION										427
II.		MANAGING THE IMPLEMENTATION OF THE IMP2				428
 
			The Rolling Plan Framework and Monitoring System
 
III.	INSTITUTIONAL STRUCTURE								431
 
			Industrial Coordination Council
			The Coordinating Secretariat
			Review Promotion of Investment and Industrial Development 		
				activities
 
IV. CONCLUSION
 
V.	APPENDICES
 
	Appendix 12-1	Industrial Coordianation Council
	Appendix 12-2	Public-Private Cluster Working Groups
	Appendix 12-3	Strategic Thrusts and Initiatives Task Force
	Appendix 12-4	Industrial Policy and Incentive Committee
	Appendix 12-5	Graphical Presentation of the Institutional 		
					Framework of the IMP2