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Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	DEWAN TUN ISMAIL, PWTC, 
			KUALA LUMPUR  
Tarikh/Date 	: 	28/11/96 
Tajuk/Title  	: 	MAJLIS PELANCARAN PELAN INDUK 
			PERINDUSTRIAN KEDUA  



     1.    Terlebih  dahulu  saya  ucapkan  terima  kasih
    kepada  Kementerian  Perdagangan  Antarabangsa   dan
    Industri  kerana  menjemput  saya  untuk  merasmikan
    pelancaran Pelan Induk Perindustrian Kedua (PIP2) di
    sini hari ini.
    
    2.    Pelancaran Pelan Induk Perindustrian Kedua ini
    menandakan  permulaan  era baru  perindustrian  bagi
    Malaysia,  iaitu  satu  dekad  yang  bersifat  lebih
    global,  yang wujud liberalisasi ekonomi yang  lebih
    luas  dan  saingan  yang lebih  hebat.   Ianya  juga
    merupakan  dekad  yang penuh dengan  cabaran-cabaran
    dan  peluang-peluang  baru  bagi  negara  kita  yang
    sedang  menuju  ke  arah  status  negara  maju   dan
    perindustrian sepenuhnya menjelang tahun 2020.  Oleh
    kerana  perindustrian adalah penggerak utama  kepada
    pembangunan ekonomi, adalah penting negara  merangka
    arah   dan  tumpuan  yang  tepat  bagi  perkembangan
    perindustrian  supaya  Malaysia  boleh  membangunkan
    satu  sektor perindustrian yang kompetitif, dinamis,
     kukuh  dan mempunyai ketahanan menjelang tahun 2020.
    Dengan  tumpuan utamanya menguasai seluruh rangkaian
    nilai  sektor  pembuatan,  PIP2  melalui  pengukuhan
    pertalian   industri,  peningkatan  kegiatan   nilai
    ditambah dan peningkatan produktiviti, akan mengubah
    struktur   industri  Malaysia  kepada   suatu   yang
    berupaya menghadapi cabaran-cabaran dalam dekad akan
    datang.
    
    3.    Let  us  however  recall the  process  of  our
    industrial  development so that we can learn  a  few
    lessons from the past and so be better able to chart
    our course for the future.  We must not be tired  of
    being  reminded that we were once a relatively  poor
    agricultural  and  mining  country.   Such  was  the
    importance   of  tin  and  rubber  that  the   whole
    national budget was based on the projected prices of
    these two commodities.
    
    4.    But  we  learnt that we were at the  mercy  of
    markets   outside   our   control,   markets   which
     functioned  without  any ethical  code.   Thus  when
    foreign  market players speculated in tin and  found
    themselves  unable  to deliver, the  Metal  Exchange
    concerned simply decided that the contract should be
    ignored.   And  of course the terms  of  trade  kept
    deteriorating.   We  had  to  sell  more  and   more
    commodities  in  order  to  buy  less  and  less  of
    manufactured  goods.  All these were not  doing  our
    economy  any good.  Unemployment stayed at 7 percent
    or more.
    
    5.   We had to industrialise somehow.  We had little
    knowledge  or  skill  in manufacturing,  owning  and
    operating  a  few rice mills and rubber smoke-houses
    only.   We  had therefore to rely on direct  foreign
    investments in manufacturing.  Except for one or two
    Japanese  manufacturers the rest were  not  keen  to
    take  us  as  partners.  We had  to  allow  for  one
    hundred percent foreign ownership.  We did not  mind
    too much because our objective then was limited i.e.
     escape  from  being a commodities  producer  and  to
    provide  jobs  for our people.  The  Government  was
    prepared  to forego revenues as long as  our  people
    could  have jobs no matter how lowly paid.  The  tax
    holiday were for 10 years but even after that we  in
    fact collected practically no taxes.
    
    6.   The strategy was very successful, so successful
    that  today we are so short of workers that we  have
    to  rely on foreign workers.  We should really  have
    adjusted  quickly,  at  the  first  signs.   But  we
    allowed  ourselves to be influenced by the  need  of
    investors,   who   still  want  to  operate   labour
    intensive industries.
    
    7.    The problem has become very serious now.  With
    over 1.7 million foreign workers, legal and illegal,
    most of them using facilities such as hospitals  and
    schools meant for our people, not to mention  crimes
    and  communal tension, we just cannot pander to  the
    wishes of labour dependent industrialists any  more.
     We hope they understand.
    
    8.    And  so  we  have to change our strategy,  our
    industrial  policy.  Again we have to take  care  of
    the majority of our people, our workers. As long  as
    there  are foreign workers ready to work in low-paid
    jobs, our workers will not get better pay.  We  have
    therefore   to  switch  to  capital  or  technology-
    intensive  industries which require fewer  but  more
    skillful  workers.  If we don't have them,  we  will
    have  to train them.  Fortunately our workers  learn
    fast, if they are given the correct training.
    
    9.    Obviously with hitech products the value added
    per  worker will be more.  The industries will  have
    to  invest more in automation and robotics  but  the
    fewer  workers that they employ should be paid more.
    And  the  need for foreign workers would be reduced.
    It  is  not  that  we  don't  care  for  them.   Our
    industrialists  have  been  urged   to   invest   in
    countries  where the foreign workers  come  from  in
     order to create jobs at home for them.  The benefits
    to them and their country would be much more if they
    work at home.
    
    10.    In  the  meanwhile  we  have  devised  a  new
    industrial plan, the Second Industrial Master  Plan.
    The thrust of this plan takes into consideration the
    need for continued economic growth, enhanced exports
    and  increasing the value of the goods produced  and
    exported.
    
    11.   To  achieve all these, other than  encouraging
    capital and technology-intensive industries, we have
    selected certain segments of industry which we think
    we  can  go  into and which will give us access  and
    benefits  of  the latest in modern  technology.   We
    have  decided to go into engineering, in  particular
    automotive engineering, into telecommunications  and
    the  IT industries.  We will also focus on small and
    medium-scale industries intended not only to  supply
    the  need for components by the major industries but
     also  to  produce high quality components  and  even
    finished products for the export market.
    
    12.   A  new  large automotive city will be  set  up
    which will eventually have the capacity to produce a
    million cars.  Included in the plan are clusters  of
    supporting  industries manufacturing components  and
    parts   which   will   supply  the   principal   car
    manufacturer,other    industries    and     exports.
    Motorcycles and commercial vehicles and  engines  of
    various types will also be manufactured, again  with
    supporting   SMI  clustered  around  the   principal
    manufacturers.
    
    13.    For   the   telecommunication  industry   the
    principal  thrust  will be in the  Multimedia  Super
    Corridor,  where IT industries will be  centred  and
    will     operate     from.      Manufacturing     of
    telecommunications   equipment,   electronics    and
    Malaysian-branded household appliances will be given
    a strong push.
     
    14.   The  government has agreed  to  offer  special
    fiscal  and  non-fiscal incentives  to  promote  the
    development    of   the   latest   information-based
    industries. A total of eight special areas have been
    identified,  including telemedicine, smart  schools,
    research  and  development clusters, application  of
    multipurpose  cards and electronic  government.   In
    addition,  a  sum  of  RM  721.4  million  has  been
    allocated  for research programme under  the  recent
    1997  budget.  While this will serve as  a  catalyst
    for  the  development  of IT-based  industries,  the
    industrial  sector  must  make  efforts   to   adopt
    information   and  knowledge-driven   processes   in
    manufacturing  and  other  related  activities,   in
    particular the application of information technology
    for electronic commerce.
    
    15.    In  supporting the development of  Malaysia's
    competitive  cluster industries, as envisaged  under
     the  IMP2,  the Government will continue  to  ensure
    adequate  provision  of quality  infrastructure  and
    other   support   facilities  to  facilitate   their
    development.   This  will  include  human   resource
    development, R&D, indigenous technology development,
    improvement   of   incentives   and   administrative
    delivery  mechanism,  as  well  as  quality  support
    services,   such   as   ports,  business   services,
    transport and packaging.
    
    16.  The Malaysia Incorporated concept will continue
    to  be  emphasised as a major strategy  for  public-
    private sector cooperation in furthering the  course
    of  national development.  Constant consultation and
    development  of  close rapport between  the  public-
    private sectors will continue to be a key factor  in
    Malaysia's  economic  progress.   While  the  public
    sector will continue to undergo major structural and
    attitudinal  changes  to  effectively   assume   its
    assigned role as pace setter and facilitator to  the
     private  sector,  it is equally important  that  the
    private sector must be strong, robust, self-reliant,
    competent   and  above  all,  imbued  with   healthy
    business  ethics to become good corporate  citizens.
    They  should not only be profit motivated  but  must
    demonstrate  social  responsibilities  towards   the
    nation and to their employees.
    
    17.   Efficiency  is  not  only  expected  from  the
    industrial sector but also from the services  sector
    as this is crucial to the overall development of the
    economy.    Services  such  as  banking,  insurance,
    engineering   design,  marketing,   public-relation,
    advertising, inspection, transport and distribution,
    warehousing,  communication and general  consultancy
    must  be  equally competitive qualitatively  and  in
    terms of price.
    
    18.   We know the very strong competition for Direct
    Foreign   Investments  that   is   going   on   now,
    particularly  in  South East  Asia.   Malaysia  must
     therefore   rely   more  and  more  on   investments
    generated   domestically.   Domestic   capacity   is
    growing  both in terms of capital as well  as  know-
    how.   But  we  will still need foreign investments,
    especially  in the latest hitech sectors.   We  will
    continue to support FDI but we will also give  local
    investors a helping hand.
    
    19.   There  is,  as  you  may  have  suspected,   a
    political  dimension to this Industrial Master  Plan
    as  there has always been with all Malaysian  Plans.
    We are not industrialising because we want to change
    the  landscape from rice-fields, rubber and palm oil
    estates  to  one  that  will  mirror  the  developed
    industrial nation that we aspire to be.
    
    20.   We are industrialising because we believe that
    only   through  industrialisation  can   we   ensure
    increasing wealth and sophistication for our people.
    We  also  believe  that  it  will  help  reduce  the
    economic imbalance between the various races who are
     citizens  of  this country.  We note that  since  we
    have  succeeded in doing this to a great extent  our
    politics is stable.  But we are also concerned  that
    we do not have as large a Bumiputera middle class as
    to  reflect  the  proportion of the population  they
    constitute.
    
    21.   The Government will therefore want to see that
    the  implementation of the Second Industrial  Master
    Plan  will  turn  out more Bumiputeras  with  middle
    incomes.   I will not elaborate on how this  can  be
    done,  but we know that this can be done.  We  crave
    your  support and indulgence in this.   It  will  be
    good  for  everyone and especially for the  business
    community,  for  if  you  look  around,   you   will
    appreciate the value of strong committed governments
    which  do  not  spring surprises on  you.   Business
    needs  time to mature and be profitable.   You  will
    not  invest if you cannot know with some  degree  of
    certainty  what  the future will  look  like.   Your
     appreciation of our political agenda will contribute
    towards stability which in turn will benefit you.
    
    22.    Tempoh  10  tahun  yang  akan  datang  adalah
    mencabar,   di  peringkat  antarabangsa  dan   dalam
    negeri.   Malaysia  perlu  dinamik,  inovatif  serta
    pragmatik,  dan lebih penting sekali, sektor  swasta
    perlu  mengambil  peranan utama dan  proaktif  dalam
    menentukan  berjayanya  pelaksanaan  program-program
    perindustrian  negara. Dalam semangat  Persyarikatan
    Malaysia,  Kerajaan akan menentukan yang  jenteranya
    di   semua  peringkat  akan  terus  berjalan  dengan
    efisien  dan  sektor swasta akan  dibawa  berunding.
    Insya-Allah,  dengan kerjasama  dan  sokongan  semua
    pihak    Malaysia   akan   menjadi   sebuah   negara
    perindustrian sepenuhnya menjelang tahun 2020.
    
    23.   Dengan  kata-kata ini, saya dengan sukacitanya
    melancarkan    dengan    rasminya    Pelan     Induk
    Perindustrian Malaysia yang Kedua.

   

 
 



 
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