2005年-世界发展银行全球_Malaysia___Firm_Competitiveness_Investment_Climate_and_Growth_233页_21mb

Summary of Malaysia: Firm Competitiveness, Investment Climate, and Growth

Core Content

This report, based on the Malaysia Productivity and Investment Climate Survey (PICS), conducted between December 2002 and May 2003 with a reference period of 1999–2001, analyzes firm competitiveness, investment climate, and growth in Malaysia. The survey included 1,151 firms, with 902 in manufacturing and 249 in business support services, aiming to identify constraints to competitiveness and provide insights for policy improvements. The findings are used to support the midterm review of the Eighth Malaysia Plan and inform future policy directions.

Main Findings

Investment Climate

• Positive Comparisons: Malaysia's investment climate is rated better than most Asian countries and even some dynamic parts of China. For example, it takes only 3 days to clear customs, compared to over 6 days in China.
• Key Concerns: Despite this, firms identify skills shortages and regulatory burdens as major obstacles. These concerns are particularly strong among:
  • Large firms: 90% of them report regulation as a significant issue.
  • Exporter firms: More concerned about regulation than non-exporters.
  • FDI firms: Consider regulation more of an obstacle than domestic firms.
  • Firms in Peninsular Malaysia: Especially in the south and west, express more concerns about regulation.
• Regulatory Burdens: The regulatory environment in Malaysia is more restrictive than in most other countries, especially in the services sector. This is reflected in the WTO services trade restrictiveness index, where Malaysia's restrictions are higher than the averages for Asia, Latin America, and OECD countries.
• Business Support Services: The investment climate in this sector is perceived as more unfavorable than in manufacturing, with firms constrained to 30% or less foreign ownership being less productive.

Firm Performance

• Productivity in Manufacturing: Large firms and exporters outperform smaller firms in terms of value added per worker (VAL) and total factor productivity (TFP).
• Technology Use: Firms using high technology show greater productivity. The use of computer-controlled machinery is associated with higher VAL and TFP.
• SMEs and Productivity Programs: SMEs (small and medium enterprises) use skills development and technology support institutions and incentives at a low rate. Only 14.7% of SMEs use skills development institutions, compared to 39.1% of large firms. Technology incentives are used by just 1.2% of SMEs.
• Training Returns: Training has a significant impact on wages. The returns for training vary depending on the type and source:
  • Training only from current employers: 7% wage premium.
  • Training only from previous employers: 11% wage premium.
  • Training from both current and previous employers: 15% wage premium.
• Education Returns: Higher education is associated with higher wages. The return for tertiary education is nearly 18%, compared to 9.5% for secondary and 4.5% for primary education. The premium for tertiary education is higher in Malaysia than in OECD countries.

Skills and Education

• Skills Shortages: A pervasive issue across all sectors. Most firms identify skill shortages as a severe or very severe problem.
• Education Gap: Malaysia's higher education rates are below the norm for its income level. In 2000, only 6% of the population completed higher education, compared to 10% in Thailand or Chile.
• Skill Mismatch: Workers report a lack of English language proficiency, information and communication technologies (ICT) skills, and professional/technical skills. Communication skills are also identified as a key deficiency in general skills.
• Training and Education: The report highlights the need to improve the relevance and quality of education and training programs to align with firm needs.

Innovation and Technology

• Innovation Readiness: Firms in business support services report similar levels of technological activities as those in manufacturing.
• Innovation Drivers: Key drivers include adaptation and creation. The report suggests that fiscal incentives, collaboration between firms and institutions, and improvement of intellectual property rights (IPRs) are critical for fostering innovation.
• Technology Audit: The report presents a technology audit of Malaysian firms, showing that they are not skipping stages in technology adoption. Most firms are at an intermediate level of technological development.
• R&D and Licensing: R&D and licensing are important for technological progress, but the report suggests that the IPR regime needs strengthening to encourage more R&D activity.

Key Recommendations

• Conduct a detailed assessment of the regulatory environment and reduce burdens.
• Accelerate tertiary education to meet the demand for skilled labor.
• Rebalance education policy to align with economic and social goals.
• Reduce restrictions on the import of skills to address shortages.
• Scale up skills and technology programs that are appropriate for firms.
• Improve the quality and relevance of skills development institutions.
• Strengthen the IPR regime to promote R&D activities.
• Enhance collaboration between firms and institutions for technological development.
• Liberalize foreign investment in the manufacturing sector to promote growth.

Conclusion

The report concludes that Malaysia's investment climate is generally favorable, but regulatory burdens and skills shortages are significant constraints to firm competitiveness and productivity. Implementing the recommendations can help Malaysia transition from a factor accumulation-based growth model to a productivity-based one, aligning with its Vision 2020. The findings also emphasize the need for targeted education and training reforms, especially for SMEs, and for fiscal and institutional support to enhance technological capabilities and innovation.