2.2 GOVERNMENT POLICY AND INSTITUTIONS Malaysia has sought a hybrid approach, which aims to consolidate immediate government support and intervention and foreign direct investment ( FDI). At the macroeconomic level, the Malaysian government has implemented several five-year monetary plans. One of the most ambitious goals of these five-year agreements is for Malaysia to transform into a fully realized, modern economy by 2000, taking into account GDP and a wide variety of social indicators. Under the current plan the government has encouraged companies to pursue a technique of "plus-plus production", that is, to move towards higher value-added activities such as innovative work, development and distribution. The Malaysian Industrial Development Authority (MIDA) speaks is at the forefront of such initiatives. The main parts of MIDA are to publicize foreign investment in Malaysia and evaluate domestic investment in manufacturing and technical agreements and licenses. A production permit is mandatory when shareholder funds amount to Rm2.5 million or more or obligate seventy-five or more employees. MIDA applies a sliding scale of external value possession, subject to the size of the transactions to be sent. Transnational subsidiaries that trade 80% or a greater share of their preparation might be 100% foreign owned, and for organizations that export not exactly 80%, the extent of appropriate foreign ownership depends on several components, for example the level of innovation, the size of the investment and the use of raw materials. Extraordinary impulses are welcomed by “high-tech” organizations, where “high-tech” is characterized by contributing no less than 1% of gross sales to local R&D or not… middle of the paper. ....of national technological advantage. Recently the focus has been less on the extent of profit development and more on the quality of that development, even as high-tech and basic service industries are weak. We recognized two major shortcomings in current approaches and their execution:1. Absence of a vital purpose to attempt cooperation which is a disappointment to structure and manage joint initiatives and international cooperation as technology transfer opportunities. Past foreign direct investments have traded critical manufacturing skills, but minimal technological and marketing know-how;2. Lack of local expertise to retain and timely exploit foreign technological and marketing know-how. Specialist and managerial training was inadequate to absorb the know-how. before and today the emphasis has been placed on the professional and technical level.