Industrial Plan Vs Services Master Plan
This is the third Industry Master Plan, but it look like a Services Industry Master Plan as a greater emphasis is place on service sector. During the IMP3 period, the services sector will be the largest provider of employment, at 52.2% by 2010, while the manufacturing sector will only
account for 30%. The services sector is one of the pivots in the Third Industrial Master Plan (IMP3) During the plan period, the non-government services sector is projected to grow at 7.5% per annum while construction services, at 5.7%. The manufacturing sector however, would only growing at 5.6% annually during the IMP3 period and contributing 28.5% to the economy in 2020.
To achieve the growth targets, the IMP3 has formulated a set of comprehensive strategies and policy measures, as well as identified several sub-sectors for further development. They are business and professional services, distributive trade services, construction services, education and training, healthcare and tourism.
Several policy measures will also be implemented to give the sector a boost. They include:
The formulation of a Distributive Trade Master Plan, which will contain strategies to promote foreign direct investments (FDIs) and cross-border trade as well as upgrade the activities of the domestic services providers;
Matrade, together with the Ministry of Entrepreneur and Cooperative Development and the Malaysian Franchise Association, will support the growth and expansion of franchising. This is given that fact that home-grown franchise businesses have the potential to expand overseas; and
In construction, the CIDB (Construction Industry Development Board) will continue to be the integrated centre for the registration and renewal of licences to contractors. To improve performance, a comprehensive performance rating system will be introduced to cover key areas, such as safety and quality.
The report said major services sub-sectors targeted for greater development and export promotion include:
· Business and professional services
· Tourism
· Education and training
· ICT and multimedia services
· Health services, and
· Construction.
Missing Link
After I have repeat so many time. Did you realize what is the missing link?
Entertainment and Culture Industry
Remember how Japan indgiant giany Sony, Venture out from it traditional hardware E&E industry to Sony Music and later merge a Hollywood base picture company. It act was follow by rival Matsushita Panasonic later. Matsushita Panashoweverhowevr dispose off it Hollywood business later. Sony, however, appointed a CEO from Hollywood recently, become the first hardware company head by a person from entertainment industry and first US citizen to head a Japan corporation (Nissen CEO is French).
In US, industrial giant GeElectricletric(GE) also acquired a television network company when headed by Jack Welch.
South Korea drama like Winter Sonata has boost the tourism sector and sales of Samsung handphone.
In Malaysia, when young Malaysian was crazy on never ending TV reality show and the fact that Singapore TV reality show has successfully penetrate Malaysia market. I don't understand why IMP3 has left out such an important industry.
While bumiputra might generally weak in Science and Maths. They are , however, talented in entertainment and culture industry.
Financial Service Industry
While US based General Electric (GE) has venture out in financial service to provide finance on it aircraft business initially and has acquired non-performing loan in Thailand during Asia financial crisis. GE has become a financial giant under Jack Welch,
In Japan, Sony has form a Sony Bank. In South Korea, conglomerate control credit card business. I don't understand why IMP2 has left out this industry! Maybe it classified under Business and Professional Service? or it has been cover under Financial Sector Master plan announced by Bank Negara earlier?
Retail and Distribution
Japan FDI in Malaysia initially comprises manufacturing sector like Matsushita Panasonic, Toshiba. It is the retail giant that came to Malaysia eventually: Like Yoahan initially and now Jusco Aeon.
Other Europe retail giant including Makro, Carrefour, Tesco etc.
Wal Mart become the largest company in US. Marks & Spencer do not own any factory, but it able to shift it manufacturing to any country that able to produce goods at lowest price.
Direct Selling Company like Amway,Avon, Mary Kay make a mark in the distribution chain and Internet distribution company like Amazon also gaining influence. When manufacturing FDI flow to low cost China. It is those who control distribution that get the highest margin.
Again, I never see retaidistributionbution on IMP3. Maybe it cover under Distributive Trade Master Plan above.
Malaysian hypermarket group Giant has been disposed off to Hong Kong base British control company. Malaysian more prefer to shop in Jusco Aeon rather than it own Parkson. Pakson however has first mover advantage in China.
ICT and multimedia service
Government should disclose statistic on it success of ICT and multimedia service under IMP2 and Multimedia Super Corridor (MSC). Government has provide grant for manufacturing company to implement ERP system under MSC and IMP2. What is the response?
Surprisingly, government never provide such grant to service sector like hotel and tourism and construction and property development company. However, the industry has successfully nurture a Malaysia home grow ERP company in that sector...Mesdaq listed IFCA.
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