Source: MIDA
Prime Minister Datuk Seri Najib Tun Razak in announcing the New Economic Model (NEM) contained in the National Economic Advisory Council (NEAC) report, yesterday, had identified a number of key sectors with potential for growth to lift the nation to a high-income level.
Among the sectors are electrical and electronics (E&E); palm oil; oil and gas (O&G); tourism; green technology including renewable energy; information technology (IT); life sciences; high-value agriculture and financial services.
On E&E, he said Malaysia could leverage on its early mover advantage (the industry has a strong record of growth since the 1970s), to move on to research and development (R&D) and design, where Malaysian companies would steer innovation instead of importing it.
Appropriate incentives could be considered for high- end R&D as well as supporting local SMEs to become vendors to multinational companies on a large-scale basis.
On palm oil, the Prime Minister called for further strengthening of research and development to build up indigenous technologies in response to market needs, including the production of healthy fats and oils, biofuel from biomass, cosmetics and bio-degradable plastics.
In oil and gas, Datuk Najib noted that Petronas has built a strong brand name globally. It is now timely to provide greater support to local suppliers to spur economic growth here, as Petronas expands further.
Malaysia's strength in having a pool of local talents and companies in the energy sector, which are able to compete in the international market, provide a lead advantage to venture abroad.
In services, the tourism sector offers tremendous potential for growth such as in eco-tourism, as the country has some of the oldest rainforests in the world, rich with flora and fauna as well as offering memorable diving experiences to attract high-end and new tourists including from Europe and America.
Medical tourism is another area with huge prospects for growth, given the country's reputable medical services, as well as visitors related to education, as Malaysia expands its education services.
Green technology is another sector where Malaysia could build its niche, having also an early entry in the region's solar and alternative energy sectors.
In the IT sector, Malaysia could further develop the creative industries in music, film and the arts.
The life sciences sector also offers strong potential for further growth, as Malaysia is among the 17 most important mega-biodiversity countries in the world.
Potential benefits could be seen in the areas of research and development and production of pharmaceutical and nutritional products.
In agriculture, the government acknowledges the strategic need to focus on high value agriculture sector, as the country's substantial food needs are presently from imports.
Hence there is potential to move into large-scale integrated agriculture using modern technologies that offer higher yields and at the same time develop better linkages to the marketplace that will lead to increased production and higher income.
In the financial services sector, there is huge potential for the country to become a hub for integrated Islamic financial services, as Malaysia is recognized as a global leader in Islamic finance, capital market and the takaful sectors.
Adapted from New Straits Times and The Star 31 March 2010