Malaysian industrialization - a critique
In making a critique onto the Malaysia industrialization, lets us refer back to the basic issue under the macroeconomics major components: * Economic growth
* Price Stability
* Equitable distribution of income
* Full employment
How the Malaysia Industrialization performed with regards to these basic macroeconomics principles? Referring to the available data as listed in Appendix 1 ( GDP, Inflation, External Debt, and unemployment rate) one can conclude that the Malaysia Industrialization policy has somewhat achieved its goals however certain issues worth to be highlighted in making a critique of the industrialization policy .
Looking at the employment track arising from the industrialization, it is noted that: * High percentage of jobs created are mostly low paying operator positions and * Very high percentages of these jobs are taken up by foreign workers. Malaysia is not creating enough jobs where people are willing to pay top dollars for. Trying to remain competitive in the FDI market as a low cost manufacturing destination actually means holding back the advancement of benefit and welfare of the population. Employing a high number of foreign laborers also mean that general wage levels are down. Labor union movements, for historical reasons and also because of high foreign content, remained under developed.
As a result, Malaysia may have and still creating plenty of job opportunities but while quantity may be there, quality of jobs created may have much room for improvement. A telling sight is the housing area near Senawang Industrial Park where a lot of terrace houses suitable for middle level income demography are either unsold, left vacant or cramped with foreign workers. This would put a strain on banks’ profitability and ultimately interest rates available to diligent savers and retired Malaysian citizens.
Another development is the mushrooming of...
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