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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Michael Sphar who wrote (5241)	7/22/1998 4:13:00 AM
From: B Tate	Read Replies (1) \| Respond to of 9980

Michael <<(1) How does this line up with your or Stitch's views of smart government funding of industrial opportunities ? Wasn't Interconnect largely funded by some branch of Malaysian Gov't ? So did one branch just off load these assets to another ?>> Smart NO! But another example of "building for the future". Not sure of the connection with the Malaysian Gov't. But would not cause me great surprise. <<(2) Is there economic merit behind this project or does Sarawak just have an extra $billion$>> I'm sure there are NO extra billions laying about in East Malaysia. However both the state of Sabah and Sarawak have large populations and fairly large metropolitan areas. Kuching and Kota Kinabalu need to develop 'high-tech' industries for any further growth to take place over and above the current basic industries. (Mining, timber, Agri and tourism are the current mainstays.) They both have formed Development Banks to pursue these "opportunities". I KNOW for a FACT the Sabah Development Bank was convinced after three days of education that they really did not want to invest $15MM (USD) in setting up a Printed Circuit Board plant in KK last April (97). (AND this was a plant that would provide up to four layer boards - not exaclty leading edge technology!) They really don't understand that these types of industries are not transplantable to areas that do no have a high concentration of specifically skilled labor. I'm sure that the folks in Kuching are highly capable people, mostly Chinese and Iban, but I would not look to find a lot of people familiar with a fab of any size. This isn't meant to say that they are not highly trainable as they are. However getting the skilled people to relocate there to do the training will be a major hurdle to be achieved. Most people are moving AWAY from these areas to mainland Malaysia and this may be part of a potential solution as the governments see it. However do not waste a lot of time on "announcements" like this in Malaysia. Check back this time next year and see if the first spade has been turned. rgds bt P.S. I would be really interested to learn the identity of the "group of investors"!