00:00This week on Wu Says, we take a closer look at what are the challenges for a state in the implementation of their industrial policy.
00:09Examples from several countries were mentioned, including China.
00:13Minister Idris discusses this with Professor Emeritus Datuk Dr. Wu Wingtai.
00:18Let us remember, if you look at Japan, Korea, Taiwan,
00:24their industrial policies never involved state-owned companies.
00:30It was a partnership between the state and the private sector,
00:36where the state has the option of bailing out and having the private sector sink.
00:44So it is less of an admission of that the state has failed.
00:49When the state appoints the manager, when the state appoints the criteria,
00:54in this case, like Taiwan, Japan, and Korea,
00:59they are very clear that this is what the budget to you is.
01:04And if you don't, we are getting up.
01:07In China, however, there are a lot of state enterprises that does industrial policy.
01:13That is why China has a problem of closing failed projects
01:23because they are affiliates of state-owned companies.
01:31So industrial policy in China has been less effective than in Korea, Japan, and Taiwan.
01:42But it would be wrong to think that industrial policy alone is sufficient
01:50to be able to propel a country from middle income to high income.
01:57There are a number of other important policies that need to be implemented.
02:03Catch the full conversation on all our international social media accounts at Powerfest.
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