UPDATE Nov. 2: Courtesy of walla, further references are a snapshot of Porter's Diamond Model and slides from his 2003 paper on Malaysia's Competitiveness: Moving to the Next Stage, where Porter introduced us to the concept of clustering and elements of the process that is commonly called the supply chain.
And, don't ignore the many, many, many underlying value-laden terms used by Porter like competitiveness and, labour productivity. This was probably another international seminar that Malaysia's economic managers attended and all they heard was "clusters" and the imagined call by Porter to "build more venues for FDIs".
The economic planners completely side-stepped the issue of productivity growth that Porter was highlighting. Maybe Malaysia's economic managers don't understand what productivity means, which should make everyone wonder what the Malaysian Productivity Council (MPC) has been doing all this time and, what the MPC has done with its funding?
The ineffectiveness of Malaysian economic programmes that focus only on venue-providing comes from the failure, refusal and ignorance of the economic planners to even attempt to understand many of the underlying assumptions that all consultants and advisors use in the course of submitting an advice. It is no wonder that we are left with many white elephants like the Port Klang Free Zone (PKFZ). The focus was on acquiring land and building infrastructure and buildings. Once those deals are completed and all parties duly paid, there is zero regard for how the place is to be managed and operated. The Malaysian economic development motto seems to be: Build lots of hardware, ignore the software.