Like other newly industrialised countries (NIC's), there are many reasons for the growth of Malaysia's manufacturing industry including:
  • Heavy investment in education to improve the skills of Malaysian workers.
  • The government has encouraged foreign manufacturing companies to set up branch factories in Malaysia with the attractions of low taxes and cheap land.
  • The government has used tough measures to keep wages low, and to keep disruptions to the workplace (like strikes) to a minimum. This helps to keep costs low, and to encourage more foreign companies to locate in Malaysia.
  • Malaysians have used and borrowed technology brought in by foreign companies to develop their own skills.
  • The government has given extra help to support manufacturing industry, including heavy investment in the country's infrastructure.
  • As more Malaysians become richer, the market for goods at home expands.

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