Opprtunities and Challenges
After 52 years of Malaysian independece, we have seen breathtaking changes in our lifestyle. Thanks to the Information and Communication Technology (ICT) revolution we can visit one another through video conferencing, e-mail, mobile phone and by exchanging information in a number of other ways. Satellites have made all this possible, and more. Televisions are not just in colour but available as flat plasma or LCD screens to hang onto our walls. Now they are entirely digital and high definition.
The world is now a village and we can reach any part of it within hours and the economy of the world is becoming global. The world wide web for handling information is now inadequate, but development of the grid to handle the information coming out of CERN will further transform our communication networks and our lives.
Malaysia has been a major supplier of primary products i.e. tin, rubber, timber, oil and palm oil, the building blocks of all other, to the industrialised countries. However, since 1970, the leading sector in manufacturing industry has been a range of export-oriented products. Our factories employed thousands of people manufacturing electrical and electronic goods and everything made from it. We were also big in heavy engineering and produced our own cars until now. Tourism and construction too still the cornerstones of our economy.
Unfortunately other countries can do all that at much less cost. The emerging economies, are moving up the value chain and challenging the predominance of some of the most advanced economies. So, Malaysia has had to re-invent itself. The landscape of our industrial base has changed. Today, we are a nation that grows its economy by being innovative, and we add value to the products of others. Ours is a knowledge based economy.
There is a perception that our science and technology (S&T) base ranks are having such a bigger gap in comparison to UK and USA. However, the recent joint-survey by the World Bank and Georgia Institute of Technology had indicated among the eight developing economies examined, Malaysia ranks first in future high-technology export potential in 2008, followed by Poland, Hungary and Thailand.
This survey was published using data taken from 1996 to 2007 and scaled to USA overall score based on four component indicators as follows;
1. National Orientation
It is composed of an investment risk index and questions addressing national strategy, implementation, entrepreneurship and attitudes toward technology.
2. Socioeconomic Infrastructure
It is composed of educational attainment and questions on national policies toward multinational investment and capital mobility.
2. Technology Infrastructure
It is composed of number of scientists employed in research and development (R&D), electronic data processing purchases, and questions on technical training and education, industrial R&D and technology mastery.
4. Productive Capacity
It is composed of electronics production and questions on supply of skilled labour and indigenous component supply and management capability.
This success has also been supported by strong inflation, interest and mortgage rates which have remained so for a long period. We have had a period of steady economic growth although not the 8% that is in plan.
So what about this year? Well with the current global economic recession and dire predictions of a re-run of the Great Depression of the 1930s, the forecast is all doom and gloom. In this crisis, some even suggested our GDP will go down to 3% and unemployment rate is likely to increase at 4.5%. Whether the forecast is true or not depends on the level of investment and risk the Government and private companies willing to take at one time.
The Chinese use two brush strokes to write the word ‘crisis’. One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger but recognise the opportunity. It’s times like these when tremendous competitive success can be achieved. It’s time like these when we can shift positions in the marketplace because we are in a period of opportunity where everything is going to open and unfreeze.
If history is any guide, it’s time like these where a particular sector appears to be a silver lining this cloud. This sector is research and education. Some of the countries including Singapore had started focusing because they believe it has ‘a pretty good chance’ to survive in this downturn if the strategy is sound.
While the pain will be sharp for the Singaporean economy, it may be relatively short with economic growth forecast to bounce back to 4.2% in 2010. What is encouraging for the Singaporean economy is that large technology based firms continue to see this small country with 4.5 million as a place to invest.
For example, Cisco had announced that it will invest RM100 million into creating a new technology centre which will develop services for an ultra high speed boradband platform. With the Government support, this centre is expected to create around 1,800 new ICT jobs by 2015 and generate up to RM1.5 billion into its economy.
So, are they really better than us? Considering, for example, Malaysia ranks first in future high-technology export potential in 2008, can’t you believe we should be far better off. Don’t you think it’s time like these where we should honour our country by also taking a good look at our research and education sector and pondering how we can optimise this sector so it can bring such prosperity in this current climate.
After 52 years of Malaysian independece, we have seen breathtaking changes in our lifestyle. Thanks to the Information and Communication Technology (ICT) revolution we can visit one another through video conferencing, e-mail, mobile phone and by exchanging information in a number of other ways. Satellites have made all this possible, and more. Televisions are not just in colour but available as flat plasma or LCD screens to hang onto our walls. Now they are entirely digital and high definition.
The world is now a village and we can reach any part of it within hours and the economy of the world is becoming global. The world wide web for handling information is now inadequate, but development of the grid to handle the information coming out of CERN will further transform our communication networks and our lives.
Malaysia has been a major supplier of primary products i.e. tin, rubber, timber, oil and palm oil, the building blocks of all other, to the industrialised countries. However, since 1970, the leading sector in manufacturing industry has been a range of export-oriented products. Our factories employed thousands of people manufacturing electrical and electronic goods and everything made from it. We were also big in heavy engineering and produced our own cars until now. Tourism and construction too still the cornerstones of our economy.
Unfortunately other countries can do all that at much less cost. The emerging economies, are moving up the value chain and challenging the predominance of some of the most advanced economies. So, Malaysia has had to re-invent itself. The landscape of our industrial base has changed. Today, we are a nation that grows its economy by being innovative, and we add value to the products of others. Ours is a knowledge based economy.
There is a perception that our science and technology (S&T) base ranks are having such a bigger gap in comparison to UK and USA. However, the recent joint-survey by the World Bank and Georgia Institute of Technology had indicated among the eight developing economies examined, Malaysia ranks first in future high-technology export potential in 2008, followed by Poland, Hungary and Thailand.
This survey was published using data taken from 1996 to 2007 and scaled to USA overall score based on four component indicators as follows;
1. National Orientation
It is composed of an investment risk index and questions addressing national strategy, implementation, entrepreneurship and attitudes toward technology.
2. Socioeconomic Infrastructure
It is composed of educational attainment and questions on national policies toward multinational investment and capital mobility.
2. Technology Infrastructure
It is composed of number of scientists employed in research and development (R&D), electronic data processing purchases, and questions on technical training and education, industrial R&D and technology mastery.
4. Productive Capacity
It is composed of electronics production and questions on supply of skilled labour and indigenous component supply and management capability.
This success has also been supported by strong inflation, interest and mortgage rates which have remained so for a long period. We have had a period of steady economic growth although not the 8% that is in plan.
So what about this year? Well with the current global economic recession and dire predictions of a re-run of the Great Depression of the 1930s, the forecast is all doom and gloom. In this crisis, some even suggested our GDP will go down to 3% and unemployment rate is likely to increase at 4.5%. Whether the forecast is true or not depends on the level of investment and risk the Government and private companies willing to take at one time.
The Chinese use two brush strokes to write the word ‘crisis’. One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger but recognise the opportunity. It’s times like these when tremendous competitive success can be achieved. It’s time like these when we can shift positions in the marketplace because we are in a period of opportunity where everything is going to open and unfreeze.
If history is any guide, it’s time like these where a particular sector appears to be a silver lining this cloud. This sector is research and education. Some of the countries including Singapore had started focusing because they believe it has ‘a pretty good chance’ to survive in this downturn if the strategy is sound.
While the pain will be sharp for the Singaporean economy, it may be relatively short with economic growth forecast to bounce back to 4.2% in 2010. What is encouraging for the Singaporean economy is that large technology based firms continue to see this small country with 4.5 million as a place to invest.
For example, Cisco had announced that it will invest RM100 million into creating a new technology centre which will develop services for an ultra high speed boradband platform. With the Government support, this centre is expected to create around 1,800 new ICT jobs by 2015 and generate up to RM1.5 billion into its economy.
So, are they really better than us? Considering, for example, Malaysia ranks first in future high-technology export potential in 2008, can’t you believe we should be far better off. Don’t you think it’s time like these where we should honour our country by also taking a good look at our research and education sector and pondering how we can optimise this sector so it can bring such prosperity in this current climate.
(continue to part 2)
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