Student

EVOLUTION MALAYSIAN ECONOMY FROM MANUFACTURING SECTOR INTO SERVICE SECTOR

The Malaysian economy has been shift from manufacturing sector as a dominated economy to a more service based economy. Malaysia is a developing country that well-known as a manufacturing country that produce the largest electrical and electronic component in the world. The manufacturing sector has become the main sources of Malaysia’s economy growth.This sector as an engine that drive our economy growth in term of provide job opportunity to local workers. However , the emergence of China as one of the largest economy in the world become a main threat to our manufacturing sector .The impact against this sector cause many foreign direct investment (FDI ) shift their operation into China. As a result, Malaysia should move into service sector as one of the alternatives to overcome this crisis. (UM , 2002)

Nowadays, the progress of globalization, rapid advancement of information technology and goverment economy policy to liberalize service sector contribute to the evolution of service sector in Malaysia. According to (Wing , 2007 ) , the researcher stated that service sector has become one of the main catalyst that boost the economy economy development. Service sector more rapidly expansion in the world Gross Domestic Product (GDP). As a result , it is a leading sector in GDP contribution for countries like US, Japan ,Singapore , India and Brazil. Service sector successfully to played its role as one of the main economic bulider to many economic throughout the world. An examples, US as one of the largest economy in the world made service sector as the main economy planning to expand worldwide by emphasized more on Asian region as their main target for foreign investment.

In Malaysia, nowadays ,service sector become the main contrbutor to the GDP. Service sector cover the various activities such as banking , financial and insurance services,transport,...