The Impact of the Asian Financial Crisis on Human Resource Management in Malaysia

Abstract

Click to increase image sizeClick to decrease image size Notes 1. See http://www.statistics.gov.my/English/framesetKeystats.htm and http://www.asiasource.org/profiles/ap_mp_03.cfm?countryid=10 (accessed 18-01-04). 2. In terms of currency depreciation, Malaysia fared better than Indonesia, and Thailand and was quicker to recover. By 2000, it became clear that Malaysia's reliance on export-oriented manufacturing (30 per cent of GDP), especially in the area of electronics, was a strong element in her quick recovery. MNCs, which contribute 45 per cent of Malaysian manufacturing and 75 per cent of manufactured exports (Athukorala, 1998 Athukorala, P. 1998. ‘Swimming Against the Tide – Crisis Management in Malaysia’. ASEAN Economic Bulletin, 15(No.3): 281–9. [Crossref] , [Google Scholar]: pp.99–100) also showed confidence in Malaysia's political and social stability. 3. Interviews were conducted from July 2002 to February 2003. Each lasted approximately 90 minutes. 4. These are often expressed in ‘Malaysian English’ which we have left unmodified to enhance the impact of their authenticity. 6. The Industrial Co-ordination Act (1974) – a major policy instrument of the NEP – stipulates that the ethnic percentages of the population must be represented at all levels of the organization. This, plus the fact that the organization is top-heavy with Malaysian Chinese employees, is a background to this policy statement. 7. All monetary amounts are in Malaysian ringgit unless otherwise specified. US$1=MYR$3.8 in September 2003. 8. Firms of a certain size were required to register with the HRD Council and pay one per cent of their wage bill as a levy. They then apply for training assistance, drawn from the balance of their levy accounts (Ragayah et al., 2002 Haji Mat Zin R Aun LH Abdul-Rahman S 2002 ‘Social Protection in Malaysia’ Adam E von Hauff M John M Social Protection in Southeast and East Asia Singapore Friedrich Ebert Stiftung 119 70 [Google Scholar]: 146). 9. This company is operating in an area where there are many other MNCs making similar products. 10. Specified under the Employment Act 1955 (Act 265), Employment (Termination and Lay-off Benefits) Regulations 1980, see http://www.jaring.my/ksm/gline.htm (accessed 31 July 2003).