INDUSTRIALIZATION IN ASEAN : THE TECHNOLOGICAL DIMENSION

Abstract

The impressive growth performance within ASEAN, since the mid-1980s, has not only raised her development ambition but also led to a technological re-awakening. Since, industrialization has been and will continue to be, the main driving force for the economy, and given the close linkage between industrialization and technology, an assessment of the potential of S&T in ASEAN is vital. From our analysis, ASEAN countries have shown marked improvements both in terms of technology transfer and technology development. Judging from the commitment of money and resources into S&T development and S&T planning, the increasing emphasis placed on technology is quite evident. Although technology has played some limited role thus far, primarily through imported technology, its role is expected to escalate as ASEAN needs to forge ahead of upcoming labor abundant countries like China, India and Vietnam.

Malaysia, Singapore, Thailand and perhaps Indonesia have made modest achievements in terms of S&T development. The results of ASEAN's effort are that: (1) GERD/GDP ratio on the average grew by 2.8% (Indonesia), 7.5% (Malaysia), -2.2% (Philippines), 35.3% (Singapore), and -3.0% (Thailand); (2) GERD on the average grew by 0.3% for (Indonesia), 15.5% (Malaysia), 4.3% (Philippines), 124.9% (Singapore) and 0.8% (Thailand); (3) RSE per 10,000 labor force on an average grew by 5.9% (Indonesia), 4.1% (Malaysia), 11.1% (Philippines), 27.1% (Singapore) and 11.3% (Thailand).

In terms of technology transfer, Singapore seems to be the largest recipient of imported technology as she chalked up a total of US$24,149 millions in FDI and 13.0% growth in import of machinery and equipment. Malaysia follows with US$16,626 millions FDI and 10% growth in machinery imports. Third in line is Thailand (US$9,025 millions FDI and 14.7% growth in machinery imports) followed by Indonesia (US$6,064 millions FDI and 4.3% growth in machinery imports) and the Philippines (US$3,222 millions FDI and 2.1 % growth in imported machinery).

Both Malaysia and Thailand have experienced tremendous S&T growth for the past few years. They also have fairly detailed and comprehensive S&T plans. Indonesia's S&T potential can be seen from her stock of RSE (33,650), which is the largest in ASEAN, while the Philippines' potential lies in her high literacy rate (90.0%) and science graduate as a percentage of total graduates (40.0%). Despite this, serious problems remain. They key ones involve: (1) S&T infrastructure; (2) S&T manpower; (3) S&T culture; (4) commercialization; & (5) implementation of S&T plans. Nonetheless, ASEAN does seem to possess potential for S&T development. However, a lot depends on the level of political will and commitment in dealing with the above obstacles.