The second industrial master plan (IMP2) cluster-based approach to industrial development: thrusts and strategic directions

Abstract

In the past two decades, Malaysia has transformed from a commodity-based economy into a manufactured-based economy. This transformation can be attributed to macro- economic and structural adjustment policies and strategies undertaken by the Government in the mid-eighties, which significantly contributed to major inflows of foreign direct investments (FDIS) and the rapid growth of the manufacturing sector. The successful growth and transformation of the economy requires the nation to address the challenge of efficient and optimal utilisation of existing resources in order to sustain and further improve the national competitiveness. The rapid changes in the global trading and investment environment necessitates the enhancement of the competitiveness and resilience of the manufacturing sector. The Second Industrial Master Plan (IMP2), 1996-2005, will thus focus on increasing competitiveness through strengthening industrial linkages, both forward and backward, enhancing value-added activities, and increasing the productivity of the manufacturing sector.