Malaysia is now no more suit for massive scale of production heavily rely on cheap land and labor and consume a lot of resources. Now all go for automation so demand on labor is reducing, this is also part of the natural process call "creative destruction" and "structural unemployment" for an economy which is advancing, for good to replace bad. Like Penang, Johor, Klang, Sepang, nilai and Seremban, all are booming due to manufacturing industry.

So those old time story like when a foreign electrical company came to Malaysia buy huge plot of land, build huge factory block after block, and hire few thousand of labors and use hundred of bus kilang to fetch their labors come to sit in production line for 12 hours a day, these already become old time story. Because with Malaysia's current economy of scale, things can't be cheap anymore. Indeed this kind of massive production with huge consumption on all resources like energy is almost came to dead end, even China also facing big problem due to shortage of electrical power supply

I don't like Anwar, but the concept of "manufacturing hub" is actually taking its shape, for production in high tech or highly automation. And it is not because he is very smart to come out with the idea, It already happened since global lockdown due to COVID and US -China trade war.

This post has been edited by Jingle91: Nov 28 2023, 03:29 PM

If automation could replace men, mnc need not invest outside u.s, Japan , Korea and e.u. Many manufacturing process couldn't replace men; mnc invest in 3rd world countries for cheap labour. if cheap labour is not available, few mnc would consider to invest in manufacturing here.

This post has been edited by icemanfx: Nov 28 2023, 04:54 PM

That is called exploitation, by using lesser capital for quick production and easier to shift whenever there is better place, labor can just be lay off easily.

For automation in production, of course you always need enginer, technician and system operators, but not hundred or thousand of labors to sit and use their hand and effort in manufacturing lines.

Automation always need huge capital expenditure at first place that is why MNC hate it. So don't always think in slave mindset. Malaysia population is only 38 mil, labor force is only 14 mil, so it is impossible to compete with China, indon, Thai, and Viet for FDI which only keen in cheap labor for low capital expenditure investment. Like data centre, if you have any friend work in IT, you will see how lucrative it is.

Automation actually happening in our domestic SME, if you go Johor, many factories are starting invest in machinery for their production. It take time and need to be in stagger.

This post has been edited by Jingle91: Nov 28 2023, 04:27 PM

You could call exploitation or whatever, it was how Japan, Korea, Taiwan, PRC, etc developed.

Automation is widely utilized in the car manufacturing industry. But If you visit mercedes factory in Stuttgart would find it is still labour intensive in assembly and many people are needed.

Due to small market size, only few sme could automated.

This post has been edited by icemanfx: Nov 28 2023, 06:12 PM

If current government doesn't want to remain in power then naik until 100% also can

Then, every government should keep negative interest rate

Wrong. Negative interest rate means rakyat need to pay the banks in order to deposit their money with the banks, so rakyat will end up being unhappy the government and vote them out.

If you want to be smart, you should say "Every government should keep zero interest rate "

Zero is a bit obvious lah

1% Mortgage rate

FD get 0.5%

EPF return 3%.

Everyone happy.

Who needs to study economics? Throw them out and burn them.

This post has been edited by boyboycute: Dec 1 2023, 02:43 PM

Since you enjoy throwing and burning economics, I guess you've provided the reason why our PM (formerly Education Minister in the 90s) made passing SEJARAH compulsory to obtain SPM certificate whereas Economics is a subject reserved for underachievers' class

For reasons why most leaderships in central banks, fed, multilateral financial institutions e.g imf, ecb, etc are economists. those defying economic is like defying gravity.

In Bolehland, there's no gravity