Essay Preview: Economic Case
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Three ways how the economy can help reduce imports:-
i) Encourage Foreign Direct Investment (FDI)
When our Malaysias portfolio economy is stable, it will attract extensive foreign direct investment (FDI). This FDI funds can be used to develop multiple high-tech machinery and other heavy equipment to reduce the Malaysias manufactured or producers burden on the purchasing of high capital-intensive capita goods. Hence the cost of production per unit can be minimized and at same time we might an opportunity to go for exporting.
ii) Improve & Increase the Labour Productivity
Educated and upgrading the employees skills and expertise in order to stimulate them to drift out more innovative ways of production i.e. to simplify the production process and reengineering the structure of production system instead of just solely rely on capital intensive manufactured itself. An efficient training program should be consistently implemented and conducted to enhance these labour intensive and its productivity.
iii) Government Financial Assistance & Import Tariffs
Through the government financial incentives or tax breaks adjustment, this will assist Malaysias manufactured exporter not just obtain the availability of raw materials at an affordable prices but also cheaper cost for machinery and transport equipment. On the other hand, the government can imposed a higher import tariffs, import duties, etc. to discourage over relying on imported capital goods.