The crisis has wide ranging implication on sectoral performance
and prospects. Many sectors have been adversely affected by rising costs, falling
demand, financing problems, and mounting debts. Sales and investment have declined,
while inventory levels risen. The industries that have initiated expansion programmes
in previous years are now faced with excess capacity and underutilised equipment
and manpower.
During July 1997-March 1998, growth of exports (in ringgit
terms) was recorded in manufactures (28.8 per cent), agricultural produce (18.8 per
cent), and metal and minerals (20.2 per cent). The export of construction materials
contracted by -7.3 per cent. However, in US dollar terms, all exports by major category
during this period recorded negative growth, where the worst hit was the export of
construction materials.
This chapter focuses on the sixth objective of the Recovery
Plan, that is, restoring the sectors adversely affected by the crisis. It will briefly
discuss the sectoral issues before presenting the sectoral actions to deal with the
current crisis.
