Penang Small and Medium Enterprises: Struggle, Accommodation and Challenges

Chin Yee Whah (Universiti Sains Malaysia, ywchin@usm.my)

Abstract


The ASEAN Free Trade Area (AFTA) agreement has come into effect in Malaysia since January 2003 and the rapid process of globalisation has forced the opening up of national economic boundaries according to the rules of the World Trade Organization (WTO). These raise questions on whether the local companies are able to face up to the new challenges. What will happen to the wellbeing of the Penang people if the local manufacturers are not able to withstand these challenges? The manufacturing sector contribute 40 percent of the total employment in Penang. Will Penang suffer a slow death? This article will analyse the experience of Penang SMEs in meeting the challenges of AFTA and WTO.

ABSTRAK

Perjanjian Kawasan Dagangan Bebas ASEAN (AFTA) telah mula berkuatkuasa di Malaysia sejak bulan Januari 2003. Pada masa yang sama proses globalisasi yang bergerak pantas telah memaksa pembukaan sempadan ekonomi nasional berdasarkan peraturan Pertubuhan Perdagangan Dunia (WTO). Kedua-dua fenomena tersebut telah menimbulkan soalan sama ada syarikat tempatan berupaya menghadapi cabaran-cabaran baru ini. Apakah akan terjadi kepada kesejahteraan penduduk Pulau Pinang jika pengeluar tempatan tidak dapat bertahan menghadapi cabaran-cabaran tersebut? Sektor pembuatan menyumbangkan sebanyak 40 peratus jumlah pekerjaan di Pulau Pinang. Adakah Pulau Pinang akan lenyap daripada arus pembangunan? Makalah ini memberi analisis pengalaman industri kecil dan sederhana (IKS) di Pulau Pinang dalam menghadapi cabaran-cabaran yang dibawa oleh AFTA dan WTO.


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