Media Statement by Dr. Ong Kian Ming, Deputy Minister for International Trade and Industry (MITI), on the 5th of January 2020
Professor Rajah Rasiah, in a journal article in 2011, raised a very interesting question on whether Malaysia was experiencing negative deindustrialization i.e. whether Malaysia was prematurely deindustrializing before we could reach our ‘peak’ in manufacturing and industrial output. More recently, Finance Minister Lim Guan Eng also referred to the phenomenon of premature deindustrialization in an address at the University of California, Berkeley, in the heart of Silicon Valley.
According to figures used by Rasiah, the contribution of industry (which includes manufacturing, construction and utilities) to GDP grew from 30.7% in 1990 to a peak of 37.9% in 2000. By 2009, it had fallen to 32.5%. The share of manufacturing in the GDP calculations rose from 24.2% in 1990 to 30.9% in 2000 before falling to 26.6% in 2009. Since 2010, the share of manufacturing as part of GDP has stagnated at between 22% to 23%. Meanwhile, the share of services has grown from 52.4% in 2010 to 56.7% in 2018.Continue reading “Can we reindustrialize sustainably in 2020 and beyond?”