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Science And Technology In Malaysia Marketing Essay

Paper Type: Free Essay Subject: Marketing
Wordcount: 4373 words Published: 1st Jan 2015

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The two parts of Malaysia are Malaysian peninsula and the states of sabah and sarak. There are 13 states in Malaysia and has 3 territories. It has a total land mass of 330000 sq km. the fourth fifth part of it is tropical rain forest area. it got independence in 1957.

It follows the parliamentary democracy system which is been rotated at every five years .In Malaysia various cultures are followed and it has a multilingual society with 28.66mn people. In Malaysia there are 57.1% malay people, 24.6 % Chinese people , 7.3% Indians and 11% other people.

There is a freedom of religion in Malaysia although major part of the people follow islam.61.3% people follow islam 19.8% follow Buddhism ,9.2% follow Christianity ,6.3 follow Hinduism and 2.6% practices other religion.

The economy of malaysia was not that good previously as it was a middle income country.But it has developed its country in every sector but mostly the focus is on high technology and capital intensive industries.

It is also focusing on the automobile industry in Malaysia. As it is continuously developing their economic performance has also improved which has also improved their ranking 7th place out of 59th economies.

It is among the 20 trading nations.it is ranked among the top 5 competitive competitive nations. It is also 21st exporter among the worldwide nations.

Malaysia is also a location which provides low cost competition for investors who wants to manufacture advanced technological product. the economy of Malaysia is also supported by the Malaysian government policy.

It has also launced economic transformation program which identifies 12 natioanl key economic areas which contribute to the grouth of Malaysia . ―Vision 2020 is to transform Malaysia into a ―high income country and for which Malaysia requires annual growth rate GNI of 6%.

Due to the weaker domestic demand GDP growth lower to 4.0 percent year -on- year and further implementation of ETP project will boost domestic demand, but unlikely to

offset underperformance in net exports.

Germany has good trade relations with Malaysia and germany also invest good amount of money in Malaysia .malaysia also holds the second position when it comes to usinf of german products.

As we know that germany is the largest exportor of automobile parts,so Malaysia also imports large amount of automotive parts in germany.

As Malaysia is the huge market for automotive industry several german manufacturers have entered into the Malaysia .they all work only for the automotive industry.we can take the example of several companies such as BMW Benz,Mercedes Benz.

The distribution of the product is carried out by the brand owner or the company itself such as BMW Benz, Mercedes Benz.

The Malaysian government also had developed several policy to develop the automotive industry of Malaysia and strengthen the position of the industry ao that they can reduce their dependability on agriculture. They are focusing on automotive industry mainly so that they can reach the position of a developed nation by 2020.

The most important thing for Malaysia is their seaborne trade. They have seven international ports which has helped them to increase their trade with other countries. Port klana and the port of Tansung have been ranked in top 120 ports in the world.

When it comes to business the most important thing is that we have to keep in mind business meeting schedule. They should not be scheduled on the prayer time. When we are doing the business with muslims as the country is dominated by muslims.

When a company is doing business with Malaysian government than it should be done in their language of bhara. Other business with Malaysian companies are done in English.

In their culture they give more importance to their designations and also what are think that is to be done in the job. There are some etiquettes that are to be followed with Malaysian companies. The currency of Malaysia is 1 rinngit and the GDP growth rate is 5%.

The inflation rate is 3.3% – 3.5% in Malaysia. They export many commodities like electronic, petroleum products, rubber products etc. The rate of unemployment is 3.0%.

In the automotive industry after the formation of the policy two projects were there which dominated the market. They are proton and perodua Whereas proton brought a huge change in the industry.

Previously they were doing the work of assembly line and they moved from it and started producing vehicles due to which the business reduced because people preferred to buy their own country brand.

Malaysia hold the 3rd position in the car market. In 2012 budget, the government has provided some benefits for the development of domestic automobile industry.

As there are many foreign competitors present in the Malaysian market the government of Malaysia is trying to protect their technology industry from the competitors and therefore just to protect their industry they have made certain policies

So that they can protet teir domestic companies from their competitors and that the country can develop rather than being depeendant on any other investors.

They have introduced certain policies and tariffs .

Therefore just to protect their industry they are imposing certain restrictions on foreign competitors.

They are taking high excise duties from their foreign competitors so that they can advantage of these companies and at the same time it does nat harm their own domestic market.

They are imposing import duties .according to the MTI the foreign companies have to work cooperatively with the local partners.The duties that are imposed on the vehicles depend upon the type of the vehicles.

Information technology is playing an crucial role in the professional and personal lives of any individual. The constituents of the technology are Computers, communications, digital information, and softwares.

Also, those who search aggressively for opportunities to learn more about technology and those who choose not to learn anything at all about technology, there are many things to recognize the potential value of technology for their day to day lives and also those who realize that a better understanding of technology will be helpful to them. This realization have some several factors:

Technology has entered in one’s lives over a relatively brief period of time with little warning and essentially no formal educational preparation among the fewer people

Current use of technology have a limited understanding of the tools that are been used and a belief that they are underutilizing them.

Few people do not feel confident or in control when they are confronted by technology, and they would like to be more certain.

Also, there have been impressive claims for the potential benefits of technology, and many would like to realize those benefits.

There is an concern on the part of some individuals that changes implied by technology which leads to potential risks to social values, freedoms or economic interests, etc., obligating them to become informed.

Modern information technologies are a rapidly advancing field that can facilitate new effective means for retailers to reach consumers. Methods profiled below include the use of the Internet as a provider of static information and facilitator of traceability schemes, in-store interactive screens and information kiosks, personal shopping assistants, television monitors, mobile technologies and customer club cards. ‘Smart ads’, interactive window-shopping and holographic imaging as emerging technologies are also profiled.

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A second application of technology includes traceability schemes, which go beyond providing static information to enable consumers to trace supply chains of individual products. Today’s emerging application offers retailers an opportunity to increase consumer trusts in both the retailer and the products on. Also, when tracing products through the supply chain, consumers can feel more that they are part of the chain, which helps in increasing the likelihood of environmental and social externalities being considered in purchasing decisions. With increased knowledge of supply chain issues gained by compiling traceability of information that offers tangible benefits to retailers such as quality tracking.

Technologies also offer another opportunity to provide sustainability information to consumers. Quick Response (QR) have been used in malaysia to transfer product information in-store to the consumer. Through QR code readers are mainly available through a technology called i-mode a Japanese mobile communications company. QR codes which are readable by a mobile phone camera are affixed onto a product or package and direct consumers to online product information via wireless internet i.e mobile phones.

The Malaysian technology report presents the technology requirements resulting from the activities of the process design teams, that describes the of target technological environment that is required to support the activities. and also provides estimation of the costs associated with the deployment of the environment. Also provides the description of the assumptions made by the team during the project, and an illustration of the data model used during the estimating process. The technology project results in a number of significant changes to the existing application environment:

•New applications are visioned for Service sectors. These systems are supported by the use of imaging technology.

•The Service systems will be augmented to provide Private Agents with a user-friendly interface, and will also employ imaging technology.

•The Service system will be provided with the consistent user interface. There is not a requirement for imaging services within this application

Science and Technology in Malaysia

In Malaysia science policy is regulated by ministry of science, technology and innovation, ministry of agriculture and the ministry of health. In 1998 high- tech exports made 54% Malaysian export. And in 1987 to 1997 research and development used 0.24% GNP.

Malaysian national space agency in 2002 formed which deals with Malaysian space activities, space education and space experiments.

“RazakSAT” satellite is a remote sensing satellite with the CCD camera. Angkasawan space flight program helpful for the Malaysia to transport one Malaysian to the space station.

Malaysian privatized part of its military in 1970’s to support national development and by this Malaysian defense industry council formed. And government also making efforts for the competitiveness and development of the sector. The Malaysian armed force uses weapons and hi-tech weapons and military imported from foreign countries.

The Malaysian Antratic Research Program and national antratic research center were established to became partly to the antratic treaty.

Biomass Energy Technology

In the 9th Malaysian plan biomass energy has given more importance. Many incentives were provided for the promotion of biomass energy. It is used for the palm oil, rubber and brick making and also for the commercial use through this small renewable commercial program.

By the process of conversion biomass is converted into liquid fuel and the part of it is used for the diesel in Malaysia. Through fermentation and gasification, biomass is converted into biogas.

This status of technology used in Malaysia with environmentally clean and economically clean and viable system. Through the application of biomass technology number of issues were solved of emissions.

For the techno-economic analysis many issues like labor cost and availability of raw material were solved. The technology from biomass make environment friendly produced high quality fuel from types of biomass and producing high grade fuel from low quality waste like feedstock.

For the removal of hazardous air pollutants cost efficient preventive pre-treatment effective technology were used.

For the demand of liberalized energy and cogeneration market this technology developed. And this require a good commercialization plan for the success of this technology in Malaysia. And for this commercial programs are also highlighted.

Technology will also make a significant contribution to the automation of internal business activities. Workgroup products will be used to manage the handling of customer requests, approval processes, and product development cycles, and shared databases will be used for the efficient creation and management of stakeholder, agent, customer, or product information. The use of such tools facilitates the automatic collection of performance statistics, allowing for the management of cycle times and further improvement of the automated processes. As a key part of this environment, integrated office automation products and usage standards will be implemented.

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In 2011 Malaysian Automotive Association registered a decrease of vehicles of 7.5% and this sales was affected due to disruption of the supply chain from natural disasters in Japan and Thailand. Now in2012 sales expected to raise but not much as of hybrid vehicles which expected to grow 60%. In Malaysia national car manufacturer appoint other companies to act as a distributor for them ,while foreign car makers choose different means to distribute their automobile Majorly Malaysia import the car parts and components rather export. As it get export to AESAN countries Thailand and Indonesia,but large quantities are also transferred to China, Syria and UK.

Component industry

In early 1980 with launching of proton the development of the ancillary and supporting industries created opportunities for growth in the manufacturing of component parts and accessories.

Now therearemorethan704automotive components and parts manufactured in Malaysia and there about 45 vendors in the automotive component industry who has achieved the capabilities to design and develop, components and manufacture the whole component both for the original equipment and replacement markets .

Malaysia being main producers and exporters of vehicle parts, accessories in the countries like in Japan, Germany and the UK due to their quality, compliance with international standards and competitive prices.

Now, with facing many challenges with globalization the Malaysian government felt that there is a policy framework for the domestic automotive sector the government launched the National Automotive Policy (NAP)in March2006,which primarily aims at progressive market

.In September2009,the NAP was revised to encourage new investments, ensure a long term sustainability of the domestic automotive industry, ensure safety and quality of products and services and protection of the environment

An economic region grows together

In2002,the ASEANwas founded to facilitate trading relations between the Asian countries in particular, but global economy also profiting from commit ment encourage competitiveness.

Malaysia, as a member, to the policies decided upon in this multilateral forum it gradually reduced trade barriers. Over the years the government has pull to pieces its protective policies. Import duties on CKD (completely knocked-down units) and CBU(completely builtup units)from ASEAN members have been reduced to 0%and 5%.Duties from non-ASEAN countries for CKD have been reduced to 0%- 10%,while duties on CBU have now reacheda30%.

As former prime minister Turn Dr Mahathir said that ‘Malaysia cannot rely on imported auto technology forever’ the country needed to invent new technology in the automobile industry especially in green technology engineering and electric-powered engines which were currently the main focus of manufacturers and producers of cars in the world.

He said now it time to move from preventing itself from continued dependence on foreign technology, home grown technology could also contribute to the economy of the country.

“Most of our work is only in assembling or putting together products made by other people .

Chief executive officer MadaniSahari said that Today, items such as airbags, global positioning systems (GPS) and anti-lock braking systems (ABS) are naturally included in all cars in other countries but in Malaysia these high-tech items are not present.

In 1983, Tun Dr Mahathir Mohamad, then Prime Minister, established Proton to build the national car in collaboration with Mitsubishi. The car name Proton Saga rolled in 1986 as the first nation car (NC) and thereafter

In 1993, Perodua was established and, in collaboration with Daihatsu, launched the PeroduaKancil as the second NC .The main objective of the automotive vision was to spin off local suppliers, create job opportunities, upgrade the know-how of our workforce and, ultimately, to create a local identity for the Malaysian automobile sector.

Though much efforts are made by government for customers to buy national car but customer refer to buy non national car because advanced safety they get from other brands.

The sales of car in Malaysia over the last five years have increasing from 490,768 units in 2006 to 605,156 units in 2010. This has largely been facilitated by easy availability of credit at low interest rates, and a high level of grant on petrol prices.

The Malaysian Car Sales shows that Proton and Perodua are the main players, commanding about 55% of the market share. But despite huge difference in price NC and NNCNNC brands have still managed to acquire share (at 45%) of the market. 

The reason behind of buying NNC brand because of their more advanced features, better reliability and lower maintenance costs as compared with Proton or Perodua.

Now as the technology is going ahead in automobile industry, countries are manufacturing hybrid and alternative-fuel vehicles in which BRAZIL rank first in selling this types of cars.

Here , Malaysia is out of the sync they neither manufactured or assembled locally .But to support the use of alternative-fuel cars and electric or hybrid cars they need to develop a national system to supply such fuel (e.g. natural gas). Also need to develop a system for the convenient charging of the batteries on highways, and service stations. For develop strategies the NAP has not given incentives.

As the people of country has much restriction for buying NNC the Government must take bold steps to reform the automotive industry. With their global marketing strategies, Malaysia can emerge as a focal point of their new supply chains, particularly for components of advance technology car for the huge china market

Other steps government can take that they have large reserves of natural gas,they should also take immediate steps to establish a national natural-gas supply system for natural-gas cars. This infrastructure is crucial for the mass utilization of this alternative fuel vehicle

Further the research has been shown that how Malaysia automotive industry will be grow in coming years The government’ has been avidly promoting green vehicles, such as hybrids and electric vehicles (EVs). This is reflected by the exemption of import and excise duties for hybrid vehicles. The development of Electric vehicles technology and infrastructure will be spearheaded by the Malaysian Green Technology Corporation under the Ministry of Energy, Green Technology and Water; with active collaboration from the Malaysian Automotive Institute (MAI) and Proton.


Federation of Malaya Motor Traders Association or FMMTA established in the year 1960and the main objective was to discuss issues relating to the Motor Industry. And that many names changes of this association and finally in 2000 it name became “The Malaysian automotive association” established with the aim to encourage, promote and protect the interest of the Automotive Industry in Malaysia.

The main scope of this association

Develop and protect interest of Members.

Make common representation to Governmental Agencies on issues affecting the Motor Vehicle Industry.

Communicate with the public through various media on industry issues, position and objectives.

Now Malaysia is focuses on investment in high technology and capital intense industry at target focusing on green technology and new merging technologies. There is a continuous growth and they are finding alternatives investments from foreign companies The government had also liberalized in many sector so that foreign companies participates in equity Indian investment of $1.2 billion was done in manufacturing sector.

Technology in banknote: The Malaysian government have used the latest banknote technology so that the security is maintained This increases the security features and the new technology have certain thing such as shadow, image, watermark portrait with fixed and colored glossy patch. This will also be helpful to the people to the people cannot see properly as it has tactile can to identification so that it would be can to identify and differentiate the denomination.

Greener technology: It is a great potential in the solar energy and is putting lots of efforts for the development of this sector

As we know that Malaysian is a developing economy who wants to move towards a technology driven world and high technology manufacturing type of development and there it is copying the NIES.

Malaysia is considered to be the country which has a potential to develop and invest new technologies on their own without taking the help of other countries.

The development in the technological field is very much in Malaysia. This development in the technology is catching attention of other countries. As Malaysia and the NIES are situated in the same region and to a certain point they have same economy and the trade methods. Malaysia has a very firm basis so that they can make its own tactical developments by seeing the NIE strategies and by using the proper method they can achieve the growth in the business.

As it is not possible for Malaysia to bring the technology models from other NIES. As all the countries in NIES have different technology and they are using different method for development in the high technology market. As there is lot of dissimilarity in the technology it becomes difficult for the country to adopt this technology very easily and used this technology efficiently in their domestic market. So there are not a single strategy that can be adopted from other countries which would satisfy that this would succeed in the technology in Malaysia.

Malaysia need to adopt new technology for the development so that they can best use the strategy.

The strategies that can be used to evaluate the technology of Malaysia is their capability of development.

The capabilities can be evaluated based on two types:

(1) Product Technology

(2) Process Technology.

The resources based strategies can be evaluated based on the performance of a company how they best used the resources is very uniquely.

As we know that the resources of the materials are equally divided in the heterogeneous manner the difference that remains become equal. There is also a connection between the firm’s things and the advantage they get i.e. the competitive advantage.

The tactical resources that are to be evaluated are Human Resources, Research and Development etc. The development and the success of the country depend upon the development of policies and how they execute their plans and policies at the national level.

Malaysia has used several strategies and they have used different policies to a great extent so the resources that are to be allocated, the various skills needed should be developed are done very perfectly. Malaysian government have also formed various guidelines to enter the technology in their country. And so that they can match this economies with other countries’ economies.

When we talk about the human capital Malaysian is lagging behind because the population there is very lass so when it comes to using human capital it is relatively less as compared to other countries.

Singapore is developing good system and training centers so that they give education to everyone and can convert this unskilled working people into highly skilled people.

Technology development also includes research and development part. When it comes to development if there is no proper Research and Development the country cannot make progress. The investment put in research and development of Malaysia was very less and if we see the patents that is given to Malaysia is very less. The main reason that is a back draw point for R&D is the financial aspect and lack of skill people in the field of research and development. For the development of country and also for R&D market research is also important because if we want to enter into the market then we should know what are factors that are existing in the market so that one can work accordingly.

Mostly R&D research funds are provided in the field of electronic industry which is contributing more to the GDP of Malaysia. It is a problem for Malaysia as the heavily depend upon the export of the electronic products and there for some where they have to develop other technologies also so that they can do well and develop technology. Foreign technology transfer plays an important role in the technology and in this JAPAN and US are two major players in FDI sources in the technology development of Malaysia.


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