an all-purpose supporting industry. Similarly, basic metal, plastics and electrical and
electronic products are evolving rapidly for the "supporting" purpose. Indeed, we expect
to see "import substitution" developing hand-in-hand with "export promotion" in the
region.
The export of complete plants will gather momentum especially in Taiwan and
South Korea. Taiwan and South Korea have a better developed capital goods sector
relative to Hong Kong and Singapore. While Taiwan exports more complete plants for
light industries, South Korea exports more for heavy industries. In Taiwan, smaller firms
are doing the export whereas in South Korea the bigger ones are doing it. In both
economies, concessional loans and special funds are given to the manufacturers which
design and export whole-plants.
B. The Nature of Industrial Development
Since the four ANIES are facing rising cost of production, their industries will
continue to change from manufacturing to designing, planning and marketing, and from
processing to non-processing. With the advantage of lower labour and land cost in China.
and in the ASEAN-4, the profitability of most industries in the ANIES who have
relocated manufacturing overseas but have maintained the product design and marketing
departments in the home countries are actually rising rather than falling. This explains
why manufacturing has continued to expand substantially in the 1980s in the ANIES."
Take the garment industry as an example. It is observed that both Hong Kong and
Singapore are moving from garment to fashion. Their fashion wear is going
international, i.e. internationalizing their labels. For examples, the Singapore "Rest and
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