The Government Nee Dto Play A Proactive Role in The Intergration Process

The government nee dto play a proactive role in the intergration process.
The government needs to play a supporting role by encouraging such as integration by providing
some form of incentives and assistance for producers and refinerd to integrate. The incentive could
take the form of a preferential financing scheme or special tax incentives. A coordinating body
should also be set up to facilitate the integrating process.
Need to continue with diversification into futher downstream processing .

To achieve continued market growth and increased market demand, the Malaysian industrial sector ,
should continue to promote new product development and diversification into downstream
products. The current trend of refiners diversifying into futher downstream processing of higher
value added specialty fats and oleochemical should be futher be encouraged.
Malaysia manufactures should go futher inti manufacturing and exporting of soap chips , detergents
and other palm based products. The diversification is also in line with the Malaysian governments
policy of futher industrialisation in the country .
JOINT_venture with foreign interest who have technological know how and the market for these
products should also be encouraged . these foregn partners with their investments in Malaysian will
help to widen the maeket for the manufacturis products , un that they will help to market the
products to their customers , who would otherwise be difficult for the Malaysian ecporters to
penetrate and they would also use the products themselves for further processing overseas.
Relationship management
Another area where the Malaysian industrial output must develop is its relationship with the buyers.
Relationship building is most for successful marketing , in today;s competitive marketing.
According to Thomas levitt (1980), relationships helps to determing the buyers choice the next time
around. Repeat orders will go to those sellers who have done the best jobs of nurturing relationships
with their buyers. Also , by keeping physically close to buyers , suppliers will learn about the needs
and supply what the buyers want instead of trying to get the buyers to buy what they have.
Tradinionally , most of malaysias manufacturing sales are done through brokers , trading houses or
selling agents , without the exporters really knowing whom the final buyers are . This has put
Malaysian exporters at a disadvantage and over dependent on middlemen .
In order to expand their market there is a need for Malaysian exporters to know and meet the final
buyers . industrial buyers are unwilling to risk trying out new supplier each time they need the oil .
they will go back to their suppliers whom they know and those who will supply what they promise .
buyers may even be willing to pay a igher price for the reliability of supply . As such , it is important
for the Malaysian exporter to build and manage relationship with buyers to ensure repeat orders.
Once the bond between the suppliers and buyer is established, it is very difficult for other supplier to
penetrate . it is only when the existing suppliers are not performing as expected or when there is a
new task or a problem with the existing supplies that the buyer will start to look for a new suppliers.
Need for continue with the effort of improving bilateral relationshop with consumer countries .
Building relationship at the firm to firm level is important but equally important is the building of
relationship with the government of improting countries . the government can act as an imporntant
influence to the purchase decision of the buyers . Also, as has been noted earlier much of the
imports from less developed countries are done through state or government agencies . It is
therefore important for the Malaysian government and industry to maintain close relationshop with
agencies so as to ensure that they will continue to buy form Malaysia .
Need to set up marketing or trading offices overseas
Third , Government also can Improving international marketing. To assist in developing and
maintaining close relationship with consumer countries , the Malaysian manufacturing industrial
should encourage its member to set up marketing or trading offices overseas , especially in countries
with high potential. Other than promotional activities these offices could monitor the relationship
with consumer countries and collect market information for Malaysian exporters ,so that prompt
acton can be taken .These offices can also assist ecisting customers with their problem and keep
them informed of the latest development in the manufacturing products. They can also act as
importing agents for the consumer or provide them link to Malaysian exporters.
These offices could take part in counter trade activities , such as importing palm oil from Malaysia
and exporting local material and goods sought by Malausian importers . this is an important activity
as it will reduce exportes foreign exchange risk and reduce importers cost of imports by cutting out
middlemen.
Market focus /segmentation strategy
For more effective market and promotion program, the Malaysian industrial sector should apply the
market foucs or market segementation strategy. In manufacturing firm to the world , different
strategies will be required for different parts of the worlf. Different countries or regions will have
their own unique characteristics and requirements.
With its limited resources it would better for the Malaysian exporters to focus on certain markets or
industry or even selected potential user companies to promite their products. By focusing on
selected markets and efficiently, thus achieving differentiation through better service or lo cost
through less inefficiency.

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The government nee dto play a proactive role in the intergration process.

Need to continue with diversification into futher downstream processing .

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