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CHAPTER 5 Secondary Sector: Industrial Sector - Coggle Diagram
CHAPTER 5
Secondary Sector: Industrial Sector
Background
Manufacturing was not important (Colonization period)
Secondary sector contributed 11.1% of the GDP (1957) and kept increasing after 1970s.
Sector: Manufacturing & Construction
Contribution
National Income
Employment Opportunities
Malaysia becoming a global manufacturer
Provide input for other sectors
Create cross-border collaborations
Problems
Narrow Manufacturing Base
Weak Industrial Linkages Import Components
High dependency of foreign skills
High cost of production
Local labour shortage
Lack of domestic R&D
Phases
1957-1960s
Import Substitution
1970s
Export Orientation
1980s
Resource Based & Heavy Industries
1990s
High Technology Industries
Industrialization & Deindustrialization
Industrialization
Process of starting machinery usage in tasks
1980-1990s, agriculture sectors as main activities
Deindustrialization
Steady decline in manufacturing sector share of employment.
Factors
Low public expenditure in R&D
Incapacity of transit from low to high value added activities
Technology support policies unable to stem deindustrialization
Lack of connectivity & coordination
Unable to catch up in high tech firms using incubator approach
Industry Revolution 4.0
Production/manufacturing based
industries digitalization transformation
E.g Smart factory, Smart Manufacturing
Subsets of the 4th Industrial Revolution
Benefits;
Increase flexibility
Increase productivity, efficiency, quality and reduce market time
More R&D activites
Development of new skills & talent
World Industrial Revolution
First Industrial Revolution : Invention of steam machines
Second Industrial Revolution : Electricity
Third Industrial Revolution: Computers & Networks
Fourth Industrial Revolution: Advanced Technologies i.e AI Robots
Characteristics of Industry 4.0
Digitise Customer Experience: Supply Chain & Distribution
Supply & Production: Digital Products & Services
Demand & Marketing: Predictive Insight
Digital Customer Experiences: Digital Supply & Production
Challenges of Industry 4.0
Lack of awareness
No clear comprehensive policy & coordination
Gaps in digital infrastructure & ecosystem
Lack of targeted benefits to drive companies
Mismatch skillsets, lack of right talent
Lack of standards
Industrial Master Plan
Second Industrial Master Plan (1MP2) 1996-2005
Focus more on improving the competitiveness of manufacturing
Third Industrial Master Plan (1MP3) 2006-2020
Achieve long-term global competitiveness through transformation and innovation of manufacturing and services sectors
First Industrial Master Plan (IMP1) 1986-1995
Accelerate growth of manufacturing sector
Promote opportunities in utilize natural resources through manufacturing sector
Build up foundation for leap-frogging