| Summary: | This research aims at explaining the role of state in industrialization process in Malaysia and that of in Singapore in 1970-2000, and being focused on the intensity and pattern of state intervention, and the implications to industrialization. Industrialization process, both in Malaysia and Singapore, has transformed traditional economy based on extractive and agricultural activities in Malaysia and entreport trade in Singapore into knowledge, and high and developed-technology based - manufacture and service industrial economy. The process was characterized by massive state role and high dependence of FDI. The result of this research shows that both state have been adopting high-directive intervention which is enabled in authoritarian system and its state-led industrialization strategy. However, the objectives that they pursue to achieve are different. In Malaysia, the intervention is directed to create fair and equal inter-ethnic divission of labour, and to protect local industries by imposing protective policies (ISI) and subsidies (EOI). Strong political influences in such a intervention resulted in policy implementation ineffective. In Singapore, the intervention is directed to create opened end free economic system
|
|---|