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| dc.description.abstract | Small and medium scale industries’ (SMI) includes more than 95 percent in the
industrial processing sector in Indonesia and more than 85 percent in the industrial
processing sector in Malaysia. They have contributed to significantly to economic
development for each country. In 1997, the SMI in Indonesia recorded as 42.3 million
or 99.90 percent of the total industries are able to absorb workforce as many as 79
million people or 99.40 percent of the total workforce in this sector, contribute to the
gross domestic product (GDP) of 56.70 percent, and 19.90 percent or Rp 75.80 trillion
of the total export. But the SMI in Malaysia contribution to the processing sector of
17.47 per cent of total output, 19.13 percent of the added value, and 12.27 percent of
the total workforce in this sector be merged. The most SMI is the food processing. The
SMI companies in the food processing industry are estimated to be still contributing
to economic development in the future. In the same time the entrepreneurs face many
challenges to maintain their competitiveness. The purpose of this paper is to analyze
the performance and development of the food processing in small and medium scale
industry in Indonesia and Malaysia. Specifically this paper to analyze 1) the
performance and challenge faced by the food processing SMI, 2) the extent to which
firms face readiness era of globalization, and 3) some policy implications for developing
the food processing industry in Malaysia and Indonesia. | en_US |
