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1 SI SI SI Perusahaan Otomobil Nasional Berhad: Proton Perusahaan Otomobil Kedua Sdn Bhd: Perodua SI SI Ministry of Entrepreneur and Cooperative Development: MED VDP Small and Medium Industries Development Corporation: SMIDEC ILPGSP SI

2 -June SI SI Chiu K-economy IT IT Free Trade Zone FTZ FTZLicensed Manufacturing Warehouse: LMW FTZ/LMW Chiu Jin Eng

3 FTZ/LMW,RM, RM RM RM RM RM RM RM RM RM RM, RM., RM. SI SI SI, SI IMP : - SI IMP - MEPorter

4 -June SI SMIDEC Ministry of International Trade and Industry: MITI Small and Medium Industries Development Plan : SMIDP SMIDEC SMIDP SMIDP SI VDP ILP VDP

5 ( PCB DC

6 -June RM Laporan Tahunan 2000 MED PCS PCS SIMITI MITI MED VDP VDP SI VDP MED

7 VDP A B C D CD/DVD.% C % % % % %

8 -June VDP VDP A VDP

9 *,,,,,,,,, ** ** * + +ASEAN Proton Corporate Profile,, VDP % % CKD % % ASEAN ASEAN AFTA

10 -June RM Campro Gen ASEAN Ke Arah AFTA AFTA SI SI %

11 SI SI NIEs SI VDP VDP Norulkamar %.%.% SI

12 -June SI VDP SI IMP SI ILP SI VDP MITI VDP MED SMIDEC VDP ILP VDP ILP

13 ILP RM..... SMIDEC [] Small and Medium Industries Development Plan, p. ILP RM MITI [] Malaysia International Trade and Industry Report 2001, p. SMIDEC ILP VDP ILP ILP, RM SMIDEC ILP GSP GSP SMIDEC

14 -June GSP CORECOM ISO Intermediate System IS CAD CAM ODM Advanced System AS CORECOM IS GSP GSP VDPILP GSP SI SI Common Roots SI Common Roots UNCTAD

15 SI IMP ILPVDP VDP IMP IMP cross-cutting effect SMIDP SI VDP ILP VDP SI SI SI SI SI SMIDEC

16 -June SMIDEC [] Small and Medium Industries Development Plan, p..

17 GSP SMIDEC. UNCTAD a, b UNCTAD[b] TNC-SME Linkages for Development: Issues-experiences-best practices, p.

18 -June FTZ PDC PDC PSDC PSDC PSDC Shared Learning PSDC IT CAD/CAM CNC, SI PSDC IT IT SI Rajah,, Narayanan PDC

19 TNCs TNCs TNCs MSC Rajah, Rasiah[] Systemic coordination and the development of human capital: knowledge flows in Malaysia s TNC-driven electronics clusters, Transnational Corporations, Vol. No., p.. MSC= IT MSC SI VDP SI

20 -June SI VDP SI SI ASEAN SI VDP SI AFTA

21 VDP ILPGSP SI PDC SI SMIDEC IMP MITI SI SI SI SMIDEC IMP SMIDP

22 -June SI SI AFTA AFTA ASEAN SI SI PSDC VDP VDP SI SI VDP SI JETROJAMA JODCJICA SI

23 SI SI SI ILP GSP ILPGSP Malaysia Boleh VDP SI RIM Ministry of Entrepreneur Development

24 -June Chiu Jin Eng Malaysia, Ministry of International Trade and IndustryMITIMalaysia, International Trade and Industry Report 2002, Kuala Lumpur: MITI, pp.-. SI RIM NIEsASEAN ASEAN detail.html Business Times MITI Second Industrial Master Plan , Kuala Lumpur: MITI. Porter, M. E. The Competitive Advantage of Nations, New York: The Free Press. Small and Medium Industry Development CorporationSMIDECMalaysia, Small and Medium Industries Development Plan , Kuala Lumpur: SMIDEC. - RM Campro Business Times, CKD

25 ASEAN CKD MITI dis.html Star New Straits Times, Bernama, BernamaStar Business Times Wawasan Malaysia: The Way Forward Ungku Norulkamar Ungku Ahmad and Mohd Izani Abdul Majid Vendor Development Programme: A Study on Factors Affecting Its Performance, Malaysian Management Review, June, pp.-. Karikomi, Shunji The Development Strategy for SMEs in Malaysia, Tokyo: Institute of Developing Economies, pp.-. Hata, Yuzuru DENSO Corporation and Outsourcing, in Asian Productivity Organizationed.Developing Supporting Industries: Outsourcer s Perspectives, Tokyo: APO, pp.-. MITI op, cit., p.. SMIDEC op. cit., p.. Hasim, Hafsah Entrepreneurship Development in Supporting Industry: Malaysian experience, in Asian Productivity Organizationed., Managerial and Entrepreneurship Development in Supporting Industry, Tokyo: APO. pp.-. SMIDECop.cit. pp. -. UNCTAD World Investment Report 2001: Promoting Linkage, Geneva: United Nations MITIop. cit., p..

26 -June SMIDEC op. cit., p.. Ibid., pp.-. No. UNCTAD aenhancing the Competitiveness of SMEs through Linkages, Geneva: United Nations. btnc-sme Linkages for Development: Issues-experiences-best practices, Proceedings of the Special Round Table on TNCs, SMEs and Development, UNCTAD X, February, Bangkok. PSDC PSDC IT K-economy IT Rajah, Rasiah State Support and Machine Tool Subcontracting in Malaysia: Microelectronics and Passenger Car Assemblers, Tokyo: APEC Study Center, Institute of Developing Economies. Status and Prospects of Supporting Industries with Focus on The Electronics Industry in Malaysia in Institute of Developing Economiesed., Present Status and Prospects of Supporting Industries in ASEAN (III), Chiba: JETRO. Systemic coordination and the development of human capital: knowledge flows in Malaysia s TNC-driven electronics clusters, Transnational Corporations, Vol. No.. Narayanan, Suresh Factors Favouring Technology Transfer to Supporting Firms in Electronics: Empirical Data from Malaysia, Asia-Pacific Development Journal, Vol. No.. Abdullah, M. A. Small and Medium Enterprises in Malaysia: policy issues and challenges, Aldershot; Brookfield: Ashgate, pp.-. Malaysia, Ministry of Finance Economic Report 2003/2004, p.. SMIDEC Yusuf, ShahidInnovative East Asia: the future of growth, Washington D.C.: World Bank.

27 Policies to Develop Supporting Industries in Malaysia: Focusing on the Linkage Promotion This paper examines the policies to develop Supporting Industries (SI) in Malaysia by focusing on the linkage promotion between assemblers such as Multinational Companies (MNCs) or National Car makers and local suppliers in the electric, electronic and automotive industries, based on the fieldworks in and and on the questionnaire survey in. The Malaysian government has promoted linkages through three programs; the Vendor Development Programme (VDP) by Ministry of Entrepreneur and Cooperative Development (MED), the Industrial Linkage Programme (ILP) and the Global Supplier Programme (GSP) by Small and Medium Industries Development Corporation (SMIDEC). This paper analyses the performance and issues of these programs from the perspective of SI as a common root of manufacturing industries which plays a crucial role in developing intra-industry linkages and from the Linkage Triangle Model discussed by UNCTAD. IDE, Fuminori

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