Employment change in an LEDC

Malaysia (Primary to Secondary industry)

Background

•·      In the colonial past, Malaysia lived off the land. It mined tin and had a subsistence economy based on rice. Agriculture remains important but Malaysia is increasingly turning to manufacturing

•·      It is now the intention of the government that the country should be fully industrialised by the year 2020. Textile industries are typical of the industry the government is trying to encourage.

•·      Clothing factories tend to employ women and produce is often exported to developed countries like Britain.

•·      Many factories including many foreign owned companies are located in Malaysia as a result of deliberate government policy. The labour force is again mainly made up of women who are bussed in from the rural     areas.

How has employment changed?

Incentives

•·      Foreign firms are offered a ten year tax free holiday to set up in areas like Panang. The raw materials and management come from the outside, whilst Panang supplies the labour.

The economy

•·      Over the 1980's the Malaysian economy has grown by 8% a year mainly due to manufacturing. Industrialisation is having an effect on the people.

•·      More than one million Malaysians, that is three times as many previously, are now employed in manufacturing. Traditionally people lived in villages, with agriculture being the predominant industry. The paid work is now elsewhere.

The workers

•·      The young girls that are employed in the factories travel from the villages. It is recognised that they are so popular with employers because they are; young, docile, cheap and highly productive.

Working conditions

•·      Although working conditions have improved, some problems still remain. These problems are mainly due to the promises the government had to make in order to encourage foreign companies to invest in Malaysia. The women therefore have a small voice in unions and in some cases there are no unions at all. The foreign companies did not want unions in case it affected their profits and levels of productivity. They wanted the workforce to be kept as obedient and docile as possible.

•·      The real issues for women are childcare and career prospects. There are no childcare facilities linked to the factories which makes it very difficult for the women to attend union meetings. This is especially the case in the textile industry where they work long hours anyway. The factories make the rules and the women have no power to object.