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Revitalising Affected Sectors

National Economic Recovery Plan
Chapter 7

Contents


The crisis has wide ranging implication on sectoral performance and prospects. Many sectors have been adversely affected by rising costs, falling demand, financing problems, and mounting debts. Sales and investment have declined, while inventory levels risen. The industries that have initiated expansion programmes in previous years are now faced with excess capacity and underutilised equipment and manpower.

During July 1997-March 1998, growth of exports (in ringgit terms) was recorded in manufactures (28.8 per cent), agricultural produce (18.8 per cent), and metal and minerals (20.2 per cent). The export of construction materials contracted by -7.3 per cent. However, in US dollar terms, all exports by major category during this period recorded negative growth, where the worst hit was the export of construction materials.

This chapter focuses on the sixth objective of the Recovery Plan, that is, restoring the sectors adversely affected by the crisis. It will briefly discuss the sectoral issues before presenting the sectoral actions to deal with the current crisis.

Actions

Address and restore the following sectors:

  1. Primary commodities and resource-based industries
  2. Mining and petroleum
  3. Manufacturing
  4. Information Technology and the Multimedia Super Corridor
  5. Motor industry
  6. Construction
  7. Property
  8. Infrastructure
  9. Transport
  10. Freight Forwarding
  11. Tourism
  12. Banking
  13. Insurance and Reinsurance






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