Export Led Industrialisation Key To Sustainable Growth

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MP SPEAKS | Investment, Trade and Industry Tengku Zafrul Aziz has reiterated the government’s commitment in Parliament to seek new markets in Africa, Latin America, the Middle East and the Asia Pacific for Malaysian products to replace or substitute those closed by the loss of markets in the United States due to the ongoing tariff war.
Apart from the general reciprocal tariffs of 19 percent effective Oct 7, Malaysia faces possible tariffs of 25-30 percent for upholstered furniture, 25-50 percent for kitchen cabinets and vanities, 10 percent for lumber wood, 100 percent for branded pharmaceuticals and patents, as well as up to 300 percent for semiconductors.
Those who discredit export-led industrialisation policy ignore the tremendous progress that many countries have made over 40 years, including helping to lift millions of Malaysians out of poverty.
However, nothing stands in comparison to the miraculous achievement of China in lifting 800 million people out of poverty, the greatest economic success in modern history. In the process, China has transformed its economy to become the second largest and soon to be the largest economy in the world.
Foreign investment fuelling the export-led industrialisation policy provided the financial wherewithal for poverty eradication without losing sight of graduating and evolving from low-cost manufacturing to cutting-edge innovation.
Not blithely dismissed
There is no doubt that export-led industrialisation policy is a vital cog of a rational economic model that should not be blithely dismissed as a race to the bottom in terms of low wages, low skill sets, low value, and low technology.
Instead, China’s sterling success in using the industrialisation policy as a launching pad to upgrade, upskill and uplift its economy is a testimony to its effectiveness.
First, upgrading its work system, manufacturing processes or advanced digital and AI technology.
Second, upskilling its workforce to learn or master new digital and AI technologies to enhance performance.
Finally, uplift the team to think globally and adapt to changing market needs.
Those who attempt to abandon the export-led industrialisation policy have overlooked the fact that many countries still seek new markets after access to the US markets was limited following the imposition of the tariff war by Donald Trump.
It is too early to test out a new model that is still unsubstantiated by evidence and remains subjective and even speculative.
For this reason, Zafrul, in reply to my question in Parliament, agreed with me and has provided RM1 billion in loan guarantees and RM500 billion in easy financing for small and medium enterprises affected by the US tariffs.
US President Donald TrumpThis financial assistance by the government underlines the importance of continuing Malaysia’s export-led industrialisation policy.
Clearly, the export-led industrialisation policy is still the economic policy of choice for Malaysia’s sustainable growth and prosperity. - Mkini
LIM GUAN ENG is Bagan MP.
The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.

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