Can Malaysia “TIGER” economy catch up? (Part II)

Yes, Malaysian has a 'lost decade' of the 21st century'. Wasteful subsidies, flip-flop government policies, noisy but ineffective opposition political parties, bureacratic federal government are all that scared off investors. These are main concerns to Malaysia's lagging economy.

Stop for a while and think, why would Resort World Berhad invest over RM13 billion in Singapore to build competing Casino? Isn't Singapore currency strong and expensive, with small captive population? A simple answer is Singapore has morphed albeit evolutionarily to become the best place to do business in Asia. NOte they are ranked the 5th least corrupt nation in the World! As for Malaysia, it was 56 in 2009!Worse ranking than gangster land Macau at 43! Or Brunei at 39, Chile at 25.

The emphasis is not how much FDI Malaysia should attract, but how it creates a conducive risk taking business environment for entrepreneurs to thrive.

Re-position mindset to attract Foreign Direct Investments
Malaysia lagged behind in terms of FDI and technological transfer. We may not get the numbers which generates employment, land utilisation and income. Why not break away from the mindset that we need billions of investment dollars?

Create Malaysia as the best place in South Asia to do business by promoting:

1. Inquisitive and risk taking culture in our universities. Imagine how much start up capital you think Google, Facebook, Intel and Motorola need? Was it not ideas that generate business. To be specific, entrepreneurship is about identifying gaps of latent demand neglected by incumbents rivals or to create a new demand as Nokia did in popularising need to have handphones in almost everyone’s pocket or American Express Card of need to pay by credit albeir stylishly and of course Swiss Watch makers with the redundant over-priced wrists band watch (we can see the time on our handphones, right?)

2. Consistent governance and legislation that fair and corruption free. (I think there are already many articles on this. You should read them yourself. They Malaysiakini.com or RPK's creation - http://www.malaysia-today.net/)

3. Immigration laws that encourages hassle free stay in our land. True, we need to be selective to the choice of skilled labour we prefer as did Australia who recently identified skilled workers in healthcare, engineering and mining are much welcome. 200,000 other application deposits are refunded and politely rejected.

4. Promote accountability at State, Federal and Council levels through election. This encourages transparency on how public funds are utilised. Bear in mind that Selangor state is the single largest consumer in the country with expenditure exceeding RM4.1billion (US$1.2billon).

5. Involve the royal family whom we appreciate has been playing the pivotal role of symbol of stability and head of the military. The Yang Dipertuan Agong, being above the court laws, which means His Majesty cannot be tried in court can exercise his judgement and wisdom to investigate, intervene and improve the current governance. Much issues seemed left open like the investigation of Port Klang Free Zone scandal, theft of military weapons and over-collection of tol when Tol Operators like Mulpha Berhad (MCA affliated) company continued to collect tol passed their deadline for 10 whole years. No one at Directors' Senior level or with fiduciary duty to stakeholders was charged, thusfar.

6. Create Business-centric culture. Datuk Musa Hitam said, business is never racists with its indiscriminate desire to please the customers. If Malaysian entrepreneurs are not ambitious besides Air Asia and CIMB, both are true regional players and Petronas the only true Malaysian global player, then why not invite Facebook-type of people to do business in the country? United States has no problems with 30% of its population are migrant professionals. In fact in Silicone Valley, more than 50% of its Information Technology R&D workers are foreigners. Can we offer 200,000 Visa pass to India’s top pharmaceutical and software engineers to stay in our land? Prime Minister Datuk Seri Najib confirmed our worst fear, a brain drain of up to 500,000 skilled Malaysians are stationed overseas. At that rate, we will go from Brain Drain to Brain Dead, in view of our already tinish population.

7. Exploit Malaysia’s own niche of competitivenes. Can we not strategically capitalise on strengths? Malaysia’s connectivity to the Middle East and leadership in Islamic finance puts it in a prime position to attract petro-dollar investments into Asean yet why is Singapore talking about becoming an Islamic finance hub? Singapore is already the region’s leading international financial centre. Does Malaysia need to spend to attract international fund managers? Thailand has a hugely successful auto industry. Shouldn’t Malaysia’s Proton move there?

8. Opposition PKR (Pakatan Rakyat) apparent failure - A Good Thing
The fall outs within the parties actually is a testimony of strong governance. PKR leaders have positive quarrels that forces the coalition to seek solutions and compromises. Issues weren't swept under the carpet. This is an informal culture of 'whistle blowing' system. A superior governance! However, they need to set up Risks committees focusing on implementation strategies. Then investors can see the value of investing in States of greater accountability.

Conclusion
The Japanese emerged as richest nation in Asia after a horrible defeat in World War II. It took them only 50 years to achieve that compared to Americans of 200 years. The key factor is human spirit and determination. Malaysians are smart, highly intelligent and industrious. Can it catch up? The future really is in your own hand.


Sources :
• Bernama, 2010, Malaysians hit as Australia tightens immigration policy
http://www.theedgemalaysia.com/political-news/159310-malaysians-hit-as-australia-tightens-immmigration-policy.html, 08 February

• Datuk Seri Nazir Razak, 2010, Speech in Thailand Management Association Top Talk on Feb 3, 2010.

• Mahani Zainal Abidin , 2010, What political and demographic challenges will face Asia Pacific? http://www.isis.org.my/attachments/559_MZA%20APC%20Sydney%2004Dec09.pdf, visited on 10th February.

• Syed Jaymal Zahiid, 2009, Budget 2010: Easy PR status for skilled expats , http://www.themalaysianinsider.com/index.php/malaysia/41250-easy-pr-status-for-skilled-expats, Oct 23

• The Reuters, 2010, Swatch Profits beat forecast, http://biz.thestar.com.my/news/story.asp?file=/2010/2/10/business/5646983&sec=business, 10th February.