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By Dumbrille J

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These industries were established to cater for local demand which was flourishing with the increasing population and growing national income. 2 Share Year INDUSTRIAL of industrial DEVELOPMENT: sectors in Gross Manufactuting sector Agriculturaal sector 1955 1960 1965 1967 1969 1970 1975 1980 1985 8 9 10 12 12 13 16 20 20 27 1990 Figures Figures Figures Figures 40 38 32 31 33 31 28 23 21 19 1957-1990s Domestic Product (%), Others 52 53 58 57 54 5566 57 59 54 1955-90 Total 100 100 100 100 100 100 100 100 100 100 for 1955 and 1960 are from the First Malaysian Plan, 1965-70 for 1965-9 are from the Second Malaysian Plan, 1970-5 for the 1970s are from the Fourth Malaysian Plan, 1980-5 for the 1980s are from the Economic Report, 1990/91 following World War II.

It has been argued that there may be potential economy-wide benefits from intensifying competitive pressures and managerial efficiency, accelerating technical progress by greater contact with foreign institutions and ideas (Findlay 1984). Infant exporter arguments for temporary assistance have also been put forward, based on the notion that entry into new export markets is a difficult and costly activity with the cumulative volume of exports having a favourable effect on the unit costs of exporting.

He further pointed out that there were no export targets in Hong Kong, Singapore, and Taiwan, all of which had an export performance comparable to that of South Korea. And export targets hardly played a role at all in the expansion of exports in the Latin American countries, where export obligations were imposed on firms in only a few cases (such as automobiles in Mexico). There is also no 25 INDUSTRIAL STRATEGY: A FRAMEWORK FOR ANALYSIS evidence of such a policy in any other South East Asian countries (with the exception of the export targets on Proton - the public-owned automobile industry in Malaysia).

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