Malaysia should focus on SME-type development, says Morgan Stanley

MORGAN Stanley Dean Witter believes Malaysia should move away from the single-track mass manufacturing export-oriented model funded by foreign direct investment into a more balanced dual-track model that pays more emphasis to the development of a thriving small- to medium-sized industry base. 

Its vice-president and South-East Asian economist Dr Daniel Lian said the defunct export-based economic model, which he referred to as the East Asia Economic Model (EAEM), thrived on excess investment by multinational companies (MNCs) in generic production capacity that formed part of their global supply chains.