The incentive system was expected to fail owing to the fact that it only
provided a one-way privilege (see Thomas, et al., 1991). Moreover, there was no such a built
in rewarding system that could be used to penalize those firms with poor performance or
failure to meet any economic criteria. This encouraged foreign firms to import machines and
equipment which were originally designed to be labour-saving, reflecting the situation of
scarce labour in the developed countries.