Four-pronged approach to boost electronics sector

Wednesday March 31, 2010



THE New Economic Model (NEM) is recommending for the implementation of a four-pronged approach to boost the country’s electronics sector.

The four-pronged approach tackles the problems related to talent, eco-system, infrastructure, and incentives.

To bring in talent, the NEM recommended the implementation of a fast-track procedure for work permits of highly skilled professionals, shorten the delivery process of permanent resident status, establish a non-profit organisation to foster links with the diasporas to match the capabilities with right economic opportunities, and establish a “finishing school” programme.

To create an eco-system conducive for the growth of the electronics industry, the NEM also recommended that financial institutions should review the existing bankruptcy laws to support high-risk ventures and the innovation-based businesses, and improve the broadband bandwidth speed that would make Malaysia globally competitive as an ICT hub.

To support the further growth of the electronics industry, the NEM also recommended the upgrading of infrastructure such as the airports and warehouses and the establishment of a ‘One Stop Agency’ to handle all matters related to the electronics industry, and revising the grants system.

The report said there was need for high-speed broadband bandwidth at an affordable price, which was a constraint to the expansion of the electronics and the high-value added services sectors.

On NEM’s plan to set up a “finishing school”, Penang Skills Development Centre (PSDC) chief executive officer Datuk Boonler Somchit said PSDC was involved in developing a programme for diploma and degree holders to acquire the hard and soft skills in engineering in the shortest time possible via a finishing school concept, which provides both the theoretical and practical aspects of training for specific employment.

“We have applied for a substantial grant to start operating the finishing school for engineers as soon as possible under the 10th Malaysian Plan.

“Instead of one to two years of working and training at the place of employment, the finishing school concept will reduce the time required for acquiring training and experience to six to eight months,” he said.

Globetronics Technology Bhd CEO Heng Huck Lee said revising the grants’ scheme was very timely. “When giving out grants and incentives to new technology companies, the Government must not forget about those existing companies that are already in competition in the global market.”

GUH Holdings Bhd managing director Datuk Kenneth H’ng said the NEM coverage on the electronics and other business areas was wide, tackling every major issue facing the country’s economy today.

“The question remains now is how the Government will go about implementing the measures and when it will do so,” he said.

http://thestar.com.my/news/story.asp?file=/2010/3/31/neweconomicmodel/5966003&sec=neweconomicmodel