Malaysia Industrial Master Plans (IMPs) and the Focus on the Nation Technology and Innovation Development

Abstract

The global and domestic challenges that confront the Malaysia industrial sector nowadays, had made Malaysia learnt that the past industrial approaches based on heavy dependence of large-scale injection of foreign capital to boost labor productivity are no longer viable. The Malaysia’s industrial plan on heavy reliance to foreign direct investments (FDIs) for the industrial and technological development faced major threat. Prior to 1986 and the three decades onward, the three Malaysia Industrial Master Plans (IMP1, IMP2 and IMP3) policies were adjusted to focus on total productivity growth, which requires strong synergy among all factors of technology and innovation system. This study highlighted on the specific focus of each of the three Malaysia’s Industrial Master Plans (IMPs) and to relate these focus on the technology and innovation used to increase productivity at the time. The essence of the new growth strategy was a shift from assembly-intensive manufacturing technology to an integrated and innovative value-added, industry-wide approach encompassing both manufacturing and related services. The purpose of this study is to establish the importance of technology and innovation in Malaysia Industry and relate to the vital need of STI Policy to align back with Malaysia’s Industrial Master Plan, to drive export competitiveness for realization of the nation’s industrial development agenda. In conclusion, the two vital policies, which are the Industrial Master Plan Polices and Science, Technology and Innovation (STI) Policy need to move forward together, aligned and support each other, in order to ensure effective and strategic development of Malaysia industry