Thursday, October 29, 2009

Budget 2010: More Industrial Parks but Where Are the Industries?


According the budget 2010, to support implementation of private sector projects in regional corridors, the government will allocate RM3.5 billion next year as part of efforts to ensure they are developed according to schedule.

Looks like the government is determined to build more industrial parks. The question is where are the industries?

As a consultant in the early 2001, I had conducted a customer satisfaction survey among 25 companies in the Cyberjaya. More than 75 percent of them were not satisfied with the high-tech industrial park.

Today, Cyberjaya is no longer the buzzword. There are Nusajaya (recently given a special personal income tax structure), PKFZ and the various regional corridors. Worse, some of these industrial parks have a poor take-up rate. PKFZ enjoys barely less than 20% occupancy.

It looks like building industrial parks is itself an industry in Malaysia. We are so good at building industrial parks but the country is facing a net outflow of investment when the rest of ASEAN are registering a net positive inflow.

Where are the industries?

13 comments:

Anonymous said...

Aiya, it's all about real estate to make a few fellows rich. Buy rural land for peanuts, then authorities rezone it as commercial or industrial land, and hey presto, the value of the land multiplies a few folds, and the cronies sell the land to the developers and make tons of money without even needing to do anything.

Anonymous said...

Malaysia probably wants to emulate China's success of Industrial Parks like Shenzen,Suzhou etc and now Fujian recently.Why China succeeds and Malaysia fails.You mean it is so simple? Pictorial promotions,build infra-structures and the investors will rush in? Even the recent tax incentives for the corridors ( at the obvious expense of Penang and Selangor)will not help the desperate situation.Ironically, cost of manufacturing, and not doing business, in Malaysia is cheaper than China!

Chong said...

I agree with you. The same thing happened not too long ago. The G will build more schools but where are the QUALITY teachers?

Darryl Khoo said...

I finally found out who is using the kpkhoo@yahoo e-mail address. haha.

Anyway, the main purpose is in the construction money. That's where all the corruption starts. Who cares about the industries.

Anonymous said...

dont' worry la. can convert all those abandoned bdgs into birdnest business ma.

malaysia boleh!

Anonymous said...

In MALAYSIA,
everything these people touches are failures. Of course in their failings - they are made filthy rich.

Football & sports - FAILED
National Service - FAILED
Car industry - FAILED
Education - FAILED

Anonymous said...

PKFZ
A jewel in the crown of industrial parks
strewn along the corridors of industries
waiting for takers.

Call it by any other name
indus-trial parks
have indeed turned
into parks on trial

Oh what a jem
these indus-trial parks
that sparkle , shine and
shiver across the taxpayers' land.

Any industrial park takers?

Anonymous said...

They are actually a money making industry for some people. This is usually at the expenses of tax payer.

Anonymous said...

Aiyaa Khoo why you so slow one.Who cares about what where which industries,the most important thing is to get the contract out to some party loyalies and make big time money.Maybe your grandchildren may use these parks later.Look at the abandoned Nilai shops,Bukit Beruntung,Rawang,Westports ,and elsewhere,hopefully our grandchildren's kids will use them one day.

Anonymous said...

I cannot remember anyone from MCA or Gerakan or MIC highlighting the concerns of these Industrial ParksDid I miss out?

Man of Bolehland said...

This is the difference between long and short-sighted planning and the topsy turvy policy of the ruling government.Plus also good brain and clean,efficient administration.Ask the foreigners why they don't come? Why in PKFZ,the Dubai company withdrew?Why,why tell me why?

Anonymous said...

PKFZ all over again. And of course more clones of tiong.

Anonymous said...

Yes, build more industrial parks and let them be empty...another fiasco in the making....