From Agglomeration to Innovation: Upgrading Industrial by Akifumi Kuchiki, Masatsugu Tsuji (eds.)

By Akifumi Kuchiki, Masatsugu Tsuji (eds.)

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Malaysia has introduced foreign workers into the palm oil industry and the construction industry, from Indonesia, Bangladesh and other countries, but it is required more, and this relates to the problem of social stability. Second, Malaysia has a lack of developed supporting industries in comparison with Thailand, since one of the factors that prevents foreign investors from investing in Malaysia is its institutional instability, which will be discussed fully in the context of the application of the Flowchart Approach.

An anchor firm sets up in an export-processing zone and exports its products. In this case, there is little constraint on its demand, since its factory can attain its minimum optimal level of production by exporting 24 Akifumi Kuchiki products to the world. Here, the logistics of the anchor firm are crucial to attaining the minimum optimal level. 2. Suppliers to the anchor firm can therefore attain their minimum optimal levels of production. The demand for the suppliers is thus ‘demand derived from the anchor firm’.

The production of Protons was 141,000 in 2004 and 139,000 in 2005, but fell to 102,000 in 2006. The market share of Perodua grew from 25 per cent in 2004 to 34 per cent in 2006, while that of Proton, which was more than 80 per cent at one point, gradually fell to about 24 per cent in 2006. The local contents ratio of Kancil and Myvi, both produced by Perodua, is about 80 per cent, while that of Perodua’s Rusa and Kembara models is about 50 per cent. There are 145 domestic suppliers, of which 59 are local suppliers, with a share of 40 per cent.

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