Local and International Industries in Malaysian Economy - Research Paper Example

 It is a known fact that Malaysia is considered an ideal country for manufacturing and other service-based operations. Today, Malaysia stands as an export-driven country with a strong economy and holds the potential to excel further in the future.

Multinational Business, Economic, and Government Policies in Malaysia:

            Malaysia is the only country with flexible governmental policies which ensure and safeguard the rights and provide opportunities for growth to multinational businesses. Therefore, we cannot ignore the fact that Malaysia has become widely known for its manufacturing and export services in the region. Government institutions have played a key role in determining the success of international and local businesses within the country due to their commitment to safeguarding and promoting different businesses within the country.

Liberal Equity Policy:

            Foreign investors in Malaysia can hold up to 100 percent of their equity rights in the manufacturing sector and the projects that allow them to export 80% of their products. However, the government has facilitated foreign investors to now hold 100% of equity rights in all new and existing projects without considering the percentage of their export products (Raman, 2008)

Employment and Labor Market:

            Malaysia is known for its young and dedicated workforce on competitive wages in the region. Malaysia is the only country where the human workforce is supported by government policies due to their commitment and quality of work.

Role of Local Industries in the Economy:

            The economy of Malaysia is heavily dependent on manufacturing and, the oil and gas industry. These industries stand as the backbone of the economy. It has been observed that the Malaysian government has played an effective role in the industrialization and economic development of the country. Malaysia also stands as one of ASEAN’s leading exporters of furniture due to the availability of cheap local wood. Malaysian furniture holds a significant place in the international market. Malaysia possesses a share of a total of 37% in the US furniture market, 14% in the Japanese market with 9% in both Singapore and UK furniture markets (Bakri)

Role of Technological Development in the Malaysian Economy:

            With the passage of tie, Malaysia is the only Asian country that is emerging as a new competitive economy with a strong and technology-driven economy based on high-tech productions. Technological development and diffusion have played an important role in becoming the success factor in both international and local markets. The growing foreign investment within the country has enabled the local industries to acquire the technological advancements adopted y the foreign investors. This has resulted in increased competition between local and international businesses within the country (Mun-Chow Lai and Su-Fei Yep).