The manufacturing sector can offer a wide range of employment opportunities to locals at various levels in industrial work such as processing, production, installation and others. It will be able to improve living standards and income of the population, for example the manufacturing sector such as electrical and electronics, textiles provide opportunities for a lot of jobs to the people in the area. Malaysia factory automation is the best by Elcomp.
The industrial sector contributes to the country’s income and rapid economic growth as well as Gross Domestic Product (GDP). It will make the country’s economy stronger. In addition, it will also contribute to the country’s export earnings and in turn can improve the country’s trade balance deficit. in exports such as national cars, air conditioners and others.
Assist in the development of technology and R&D in the country. Through the transfer of technology, expertise and mobility of skilled labor as well as to accelerate development and research programs. The manufacturing industry relies on HITEC and new innovations to stay in the international market. For example, Malaysia gets high technology and skills transfer from Japan and Germany. Assist the development of related industries (downstream industries) such as the services sector, telecommunications and others. The manufacturing industry acts as a catalyst to the development of related sectors such as cooking oil, soap and wax manufacturing industry will help the development of palm oil processing industry.
Expand the market to the international level and increase local products. Malaysia has many goods, especially manufactured products related to electrical goods, electronics, that penetrate international markets such as ASEAN and APEC. In this way, Malaysia can gain more profits. 6. Problems faced for the development of the industrial sector.
The problem of lack of capital or insufficient credit to run the factory on a large scale and competitive. It is a major problem. This causes most of the capital to run the industrial sector is dependent on foreign capitalists. This lack of capital is due to difficulty in obtaining credit loans from local banks and capital revolving profits stemming from low rates of return and profits.
Lack of skilled manpower which creates competition to get skilled workers @ higher education. Competition that exists not only with large firms from abroad but also other sectors in the country. Lack of skilled workers makes the manufacturing sector unable to produce products that more quality and competitive causing Malaysian products in the market to be weak.
The problem of shortage of raw materials is due to lack of supply of raw materials in the market. This is because when raw materials are reduced it will cause an increase in the price of raw materials in the market and thus increase production costs. meeting demand in the local market causes raw materials to not be supplied immediately and disrupts plant operations.
The price problem in the international market arises due to low quality factory products and less competitiveness compared to factory products from other countries. This situation is due to the use of low technology and poor quality materials and unattractive design. low and the company’s production became declining The price problem is also due to product competition with better products from other countries.
The problem of lack of infrastructure. The progress of manufacturing enterprises also depends on supporting factors. Lack of development of infrastructure facilities such as roads, railways and so on causes the development of industry stunted. Lack of infrastructure not only makes raw materials difficult to bring in but also factory finished goods it is difficult to market quickly and effectively.This is detrimental to the operator especially if the product is a perishable goods.
Problems of political instability The chaotic political situation will also slow down the development of manufacturing. This is because foreign investors will not take risks in a politically unstable country. The style of government, whether democratic, socialist and communist, will also affect the development of the company.