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• W105922847 abstract "INDUSTRIAL DEVELOPMENT EFFORTS IN MALAYSIA AND SINGAPORE This note compares the industrial development efforts of two nations which were once politically united as one federal country. Following its independence from Malaysia, Singapore pursued free enterprise industrial policies, with an emphasis on small business and entrepreneurship. Today, more than half the labor force works in service industries, while agriculture is an insignificant sector in the economy. The Malaysians, in contrast, call themselves sons of the soil.' They have relied on a centralized government authority for industrialization, but are not as urbanzied as the people of Singapore, and the income gap between rich and poor in Malaysia has been widening. Cultural tensions and religious differences led to the split into two nations just a generation ago. Singapore became the home of entrepreneurs from different social, racial, linguistic, and religious backgrounds. Today in Singapore, Indian Hindus, Chinese Buddhists, Moslems, Christians, and Jews work side by side. Malaysia is less heterogeneous, and has one official language and religion, Island. Malaysia has a population of 15,680,000 in 329,293 square kilometers. Singapore has a population of 2,500,000 in 1,000 square kilometers. The role of government in small business formation in these two countries differs. Both countries attempt to promote business development, but Singapore does so through a bureau which facilitates business start-ups and helps the entrepreneur; whereas Malaysia does so through a governmental authority which emphasizes rules and regulations, with less actual assistance to the entrepreneur. The field research reported below is based on talks with government officials, chamber of commerce representatives, and entrepreneurs in both nations. Malaysia's Attempt to Industrialize The Fifth Malaysia Plan (1986-1990) is the fourth and final phase in the implementation of the nation's twenty-year Outline Perspective Plan. Its goal is to create a policy and implement programs to sustain socioeconomic development and to ensure long-term economic stability. In addition, measures will be taken to eradicate poverty and restructure the social environment through government intervention. Overall, industry is seen as the main engine of growth. The Malaysian Industrial Development Authority handles inquiries, advises entrepreneurs, and evaluates applications for manufacturing licenses, incentives, and import duty exemption. It also evaluates applications for tariff protection and quantitative restrictions, and controls all foreign investments. In 1985, to stimulate private sector investment, firms in the manufacturing sector which employ 49 or fewer full-time employees and have shareholder's equity below 1,000,000 Malaysian ringgits were exempted from the requirement of applying for a manufacturing license from the Malaysian Industrial Development Authority. In 1986, tax incentives were introduced to encourage compliance with government goals. An accelerated depreciation allowance was also introduced to encourage investment in capital expenditures. In addition, attempts are being made to encourage exporting. With approval from the Minister of Finance, double deduction is allowed on Export Credit Insurance premiums, and double deduction is possible for promotion of exports, including advertising and travel expenses. The New Investment Fund of Malaysia was set up by the Ministry of Finance to facilitate loans to entrepreneurs. Priority is given to expert-oriented projects and those that generate new productive capacity.1 The lending rate is 1.25 percent per annum above the base lending rate of commercial banks. The entrepreneur in Malaysia must approach a commercial bank for queries on eligibility. The effective new investment fund lending rate in 1986 was approximately 11 percent (base lending rate of 9. …" @default.
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• W105922847 date "1987-07-01" @default.
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• W105922847 title "Industrial Development Efforts in Malaysia and Singapore" @default.
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