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INTRODUCTION
Just a few years after independence from the United Kingdom in 1957, had the World

Bank’s country‐classification system been in place, Malaysia would have qualified as a middle‐income country. Since then, it has continued to enjoy relative prosperity, initially as a commodity exporter of rubber, tin, then palm oil and petroleum, with total income rising at 6 to 7 percent each year from 1970 until 2000. As a result, industrial sector in Malaysia has been rapidly grow over the past few dacades.
Industrial sector can be define as a category of stocks that relate to producing goods used in construction and manufacturing. This sector includes companies involved with aerospace and defense, industrial machinery, tools, lumber production, construction, cement and metal fabrication. Performance in the industrial goods sector is largely driven by supply and demand for building construction residential, commercial and industrial as well as the demand for manufactured products. When the economy contracts and consumers save more and spend less, activity in this sector drops because companies will postpone expansion and produce fewer goods.
The industrial sectors are drawn for each contain a mixture of international corporations, national companies, entrepreneurial smaller and medium-size enterprises
(SMEs) and informal local businesses. Each part of a sector may have different impacts and dependence on economics activity. In many of the examples, the process of changing performance in industry sectors has followed a common sequence, though the detail varies considerably between sectors. For example, a realization by the leaders of major companies that their long-term business interests, survival as well as profitability, depend on understanding and addressing a wide range of the expectations of key audiences.
In malaysia, there is a