A lot has been write on our automobile industry especially proton recently. However, Malaysia has been transform from production or industrial economy to New economy as it unable to compete with China on production economy.
Traditional production economy or industrial economy cycle start from labour intensive industry like textile industry. Then it move to capital intensive industry like steel industry when accumulated enough capital from labour intensive industry. It subsequently would move to technology intensive industry like automobile industry.
Labour intensive----->Capital Intensive----->Technology Intensive
Textile industry------>Steel industry--------->Automobile industry
All new industrialized economy like Japan, Korea, Hong Kong and Taiwan go through that cycle. India's Tata Group also go through that cycle. However, with US quota on textile industry, Malaysia, Thailand and now China unable to leverage on textile industry.
Steel industry's product is a raw material for all industry product. Every industry's product comprise steel. It is an essential component of industry economy.
Whereas automobile industry is an engine of growth for the whole economy. , General Motor and Ford in US is the largest company in US previously. Like Merces in German and Toyota and Honda in Japan. Japan and German economy flourish due to it automobile industry.
In Malaysia, Supplier of Proton and Perodua used to comprise a large portion of company listed on Seond board of Bursa Malaysia.
However, If you look at Taiwan experience. It's electrical appliance industrial. Like textile industry, is labour intensive and export driven.
Semiconductor industry like steel industry. Semiconductor is like steel in industrial economy. Semiconductor are component in every product now. From electrical appliance, computer, automobile and computer.
Automobile industry or engine of growth in new economy is computer industry. If you look at Taiwan experience, Acer Computer, a renown brand in Taiwan personal computer industry able to have the same economic effect of Proton in Malaysia.
Thus, the Taiwan experience is:
Labour Intensive----->Capital intensive----->Technology intensive
Electrical Appliance----->Semiconductor--->Personal Computer
In Taiwan, it is the personal computer industry that drive the economy rather than automobile industry. Acer rather than Proton that drive the economy.
Do we have a personal computer company that able to create an economy effect like Acer in Taiwan. The potential is Mesdaq listed Ftec Resources Bhd.
Ftec started from a humble beginning like founder of Dell. It is sad to heard that it involve in an InventQjaya like crisis. Some directors of the company it invested in South Korea gone missing together with money its invested.
With every one focus on Proton. I feel we should put our focus on personal computer, laptop and notebook industry.
I feel government department should purchase computer from our only listed brand. Private sector also give it support to create a Malaysian's Acer.
Everybody would benefit if we able to create a Malaysia's Acer. It spillover effect
would benefit everybody in IT industry specifically and whole economy generally.
Why spend time on less competitive automobile industry. Spend your time to draft a National Computer Master Plan, incentive or protection policy on personal computer industry.
TechnoratiTag:Asia book books Business Commentary competitive Computers Economics Economy finance Malaysia Opinion Shares Stock Market Tech News Technology World
8 comments:
What is the story on Ftech? How much money gone missing? When did this happen?
-- Old Man
Hi Oldman,
I have create a link on "Crisis". You can click to link to FTEC announcement to KLSE.
The Edge also got reported such incident on it hard copy. But unable to find on The Edge website.
FTEC announcement dated 30 May 2005. Chinese newspaper Nanyang also report few days after that.
Terima Kasih for the link updates.
-- Old Man
Ftec??!!
Puhlease ..... try Jobstreet if you're think Mesdaq is worth anything..... can we say BUBBLE -)
Racist. Racist. Racist.
Now almost 50 years of Independence, we really should review the social contract because it has not served its purpose. Somewhere along the line, it got twisted further and a religious dimension was brought in.
This is because 3rd generation non-malays born and bred on this soil is considered 'pendatang' and second class citizens. Whereas recent Indonesian newcomers and Pakistani husbands to malays enjoy better privileges.
Now this agenda is religiously skewed and that is how the Indonesians and the Pakistanis are enjoying better privileges at the expense of 3rd or 4th generation non-malay Malaysians.
This also probably explains why the Orang Asli still do not fully enjoy the privileges of the social agenda.
The NEP has only served a few. Its original motives were noble because weather you or I agree malays do need a lot of encouragement but not the sort that have been getting as opposed to the ones in Singapore.
In the 1970s in Singapore, O and A levels pass marks for Malays: 28%, Indians: 65%, Chinese: 75%, others: 50%.
This NEP discrimination only made the non-malays smarter and the malays more dumb. Pass mark for Singapore malays in then: 50%.
Singapore allow them to leave Singapore any time they want but they choose to stay because their kids are properly educate, got better opportunities, housing and health care……….And they are truly loyal to Singapore.
I would like to add further to what has mentioned.
(1) Singapore's first president was a malay. The republic has also had two Indian presidents including the present one.
(2) The republic Singapore has had two Indian deputy prime ministers including the current one.
(3) It has had two Indian foreign ministers.
(4) The country's present minister for education is an Indian.
(5) A former police chief (equivalent to Inspector-General of Police) was, yes, you guessed it, an Indian.
Can we ever expect such important government positions in Malaysia to be occupied by those representing the minority communities in Malaysia? I am afraid the minorities here can only dream.
As I said, the racial disharmony in Malaysia is not the cause of Chinese, Indians or Malays.
The fault and blame lies squarely and directly on Umno and Umno Youth leaderships, and their barrel of race-based politics and policies.
Are the malays so impoverished in intellect and ability that they need handouts to survive?
The alternative already exists - the day the malays rely on themselves, not Umno, is the day they write their own destiny.
Protection for the malays means isolation for the malays. As long as they ask for more protection, they will be isolated from the progress of the world.
In the end, they will be hiding in caves like the Taliban. Nowhere to go because of inadequate skills, or skills that are not useful to the society and humankind at large.
Income and employment statistics show the Chinese are still ahead of other races but nowhere near pre-NEP levels.
The aids and opportunities provided under the NEP, if given to non-malays would propel them sky high in half the period.
The hardship makes us better, stronger and wiser. Hence we always try our best for the better of our next generation.
If you malays don't like it here, then go back to Sumatra, Jawa, or wherever your ancestors came from and give this land back to its rightful masters, the Orang Asli!
Great analogy!
Cited in analogies and metaphors.
Nice blog, very interesting to read
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