| Abstract: | Abstract In a recent article in this journal, Henderson and Phillips (2007 Henderson, J. and Phillips, R. 2007. Unintended consequences: Social policy, state institutions and the ‘stalling’ of the Malaysian industrialization project. Economy and Society, 30(1): 78–102. Google Scholar]) argue that Malaysian industrialization is ‘stalling’ because it is locked into low- to medium-technology operations. They attribute this to an affirmative policy that sidelined the development of small and medium-sized enterprises (SMEs) capable of benefiting from linkages with transnational corporations (TNCs) and an immigration policy that provided cheap foreign labour and weakened the pressure on firms to upgrade themselves. While not disputing these explanations, this paper shows that the evidence they provide is unconvincing and, sometimes, undermines their case. Their argument is further weakened because they fail to explain why the proportion of high-tech exports in total Malaysian manufacturing exports is surprisingly high, unlike that of an economy concentrating on low- or medium-tech production. |
