The Malaysian government has belatedly recognised on which side its foreign investment bread is buttered, and has scaled back its plans to allow unionisation in the electronics industry, where almost all employers are foreign and Malaysia is competing with the rest of the Far East from the Philippines through Indonesia to Thailand for foreign investment: it had proposed allowing the 85,000 employees in the industry to choose their own union structure but has now decided to restrict the industry to indivi dual house unions for each plant.