Transnational Corporations and Human Resource Development : Some Evidence from the Malaysian Manufacturing Industries

Explores the behaviour of transnational corporations (TNCs) in Malaysian manufacturing firms in relation to employment absorption, human capital formation and technological change, based on a survey of 60 firms randomly selected within the major manufacturing establishments in Malaysia. Argues that TNCs exert an influence in promoting employment, training and innovation and adopt a much more proactive policy towards HRD than the local firms in Malaysia. However, their reluctance to participate and invest substantially in local R&D could result in a gradual reduction of technology flow and stifle the development of domestic innovative capacity. Policy measures are therefore required to induce TNCs to undertake greater R&D activities in Malaysia, and such measures should be conceived in the broader context of the indigenous technological development policy of the country.