Examining the Shift to Services: Malaysia and China Compared

Siew Yean Tham

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

When do countries that pursue industrialisation through the development of their manufacturing sector shift to services? Does the shift take place because manufacturing development has matured with the development of indigenous technology? What is the role of policy in this shift? Understanding this shift is crucial due to the changing nature and role of services in development and its association with deindustrialisation. This article seeks to compare Malaysia and China’s shift from manufacturing to services and the challenges and prospects of such a shift. The main findings indicate that Malaysia’s shift occurred earlier than China’s and was prompted by the failure of its manufacturing sector to deepen as it has not produced any world-class domestic technology firms. China’s more recent shift is associated with on-going upgrading in its manufacturing sector while some global domestic technology firms have also emerged. Both countries used similar policies to drive this shift in response to domestic and external changes. The services sectors of both countries are still dominated by domestic market orientated, labour-intensive services. Developing competitive knowledge-intensive services in both countries will need a reform of their state-owned enterprises and the production of more talents that are needed for these types of services.

Original languageEnglish
Pages (from-to)1-24
Number of pages24
JournalJournal of Contemporary Asia
DOIs
Publication statusAccepted/In press - 22 Apr 2017

Fingerprint

Malaysia
China
manufacturing sector
manufacturing
firm
de-industrialization
domestic market
tertiary sector
industrialization
labor
reform

Keywords

  • China
  • deindustrialisation
  • Malaysia
  • manufacturing
  • policies
  • Services

ASJC Scopus subject areas

  • Cultural Studies
  • Social Sciences (miscellaneous)

Cite this

Examining the Shift to Services : Malaysia and China Compared. / Tham, Siew Yean.

In: Journal of Contemporary Asia, 22.04.2017, p. 1-24.

Research output: Contribution to journalArticle

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