The few foreign companies to locate their manufacturing activities in Malaysia, such as Matsushita Electric in 1965, which previously only had a small-scale trading company, did so to supply the Malaysian domestic market. They started with only minor, labour-intensive assembly operations in Malaysia. In particular, the size of the domestic market was not sufficiently attractive for multinational enterprises (MNEs) to set up subsidiaries in Malaysia and no policy was in place to support capability building of human resources.