Much has changed, but much remains the same
By Chan Huan Chiang
May 2010 UTTER ECONOMICS
Why Penang’s economic future still lies in manufacturing and not the services sector.Fifteen years or so ago, Malaysia’s Second Industrial Master Plan introduced the strategy of “manufacturing plus-plus” which was fondly described as the smiling-curve. This is the shape of the value chain diagram with value added on the vertical axis and the chain of activities required to put a product on the market along the horizontal axis. Fabrication and assembly, which make up the bulk of Malaysia’s manufacturing activities...
Chan Huan Chiang
is a senior research fellow at the Penang Institute.
