Dilemmas of a Proactive Human Resource Development Policy in Malaysia

Abstract

The Malaysian economy is moving towards more knowledge-intensive forms of production. The government attempts to pursue a very pro-active policy in this transition. We argue that the growth of a knowledge economy sets corresponding demands for change on institutional preconditions and new challenges, especially with regard to the need for reflexive governance. The analysis examines how the government provides institutional support to skill and human resource development for more knowledge-intensive production. The Multimedia Super Corridor is analysed as a critical case that illustrates the problems of transforming a second tier Newly Industrialising Country (NIC) from mainly labour-intensive forms of production to higher value-added forms of production. Based on our interviews with a number of government agencies, business organisations and multinational companies the article analyses the problems of transforming the institutional framework to promote the development of an information society.