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"There's no resting place for an enterprise in a competitive economy."
(Alfred
Solan, Industrialist)
" I never will really know where I could have gotten
on my own. Everyone likes to know what he could do against competition with
no unfair advantage."
(Peter Grace, who became Hd. of W.R. Grace & Co.
at the age of 32)
International Perspective
There had been quite a number of
high profile speeches from our top leaders about globalisation. Heading the
list is no other than our Hon. Prime Minister, Dato'
Seri Dr. Mahathir Bin Mohammad. In the light of this, therefore, it is not my
intention to repeat what had been said, other than to quote certain salient points
relevant to this subject matter. Neither am I about to enter into a debate as
to whether globalisation is good or bad for our country. Full understanding of
this issue is required for us to fully recognise its advantages and disadvantages.
For this reason, I feel under compulsion to share my thoughts and opinions with
readers on this very important subject. I'll put my thoughts openly.
Let me start at this very onset by reminding readers of
my compelling view of the future. Whether we like it or not, we have little
choice presented to us. More than ever before, our economy is going to be
integrated into the world economy. What then is the impact on our present
political and social structure? Unlike previously, as a nation state, with
the advent of globalisation, it is difficult if not impossible for us to
retreat into nationalistic fervour anymore. And at the micro level, for the
array of various ethnic groups found in this country it also means that there
is going to be less room available for tribalistic enclaves. In the clarity
of words as used by our Hon. Prime Minister, "A globalised, borderless world is what the advocates of globalisation are pushing for. How would we know when we are invaded if we have no borders?" Our Hon. Prime Minister elaborated further on this point by pointing out to this scenario whereby global "invasion
need not take the form of armies marching into our countries. We can be invaded
by businessmen, by banks, by corporation, by ideas and values, and moral
codes, which are alien to us. The effect is the same as military invasion.
In fact it is worse than that. Every aspect of our lives will be invaded.
Our minds will be invaded."
The major challenges confronting us thus clearly outlined
as above, what then are our initiative to turn it into opportunities or at
least to minimise its impact? As for our leaders, it takes a powerful motivating
vision and unwavering commitment to clearly state our policy goal, one that
will in no uncertain term determine whether we are going to be a key player
or just a passive bystander in the global economy. Our Hon. Prime Minister
must have taken cognisance of this precarious position that befalls us. In
his foreword in the Third Outline Perspective Plan (OPP3), he makes it clear
to every Malaysian that "we are entering another important and challenging
phase in the development of the country and our policies have accordingly
to address these concern. Today, the forces of globalisation, liberalisation
and information and communication technology (ICT) have fundamentally changed
the rules and nature of global trade, resource flows and competition. Clearly,
countries that are able to rise to the challenge will grow in success and
prosperity while those failing to do so will be marginalised and languish
in the backwaters of development."
Despite what sceptics have to say, the benefits of globalisation are inestimable.
The way is already cleared open for us to exploit to the maximum our newfound
source of wealth. We are just not talking about growth opportunities in emerging
markets, we are talking about global market for our products. To me, this indeed
is the turning point for Malaysia. We have stepped on the cavernous global theatre.
Malaysia is a small nation with a population of just slightly over 20 million.
How sure are we that we are able to secure a comfortable space in the international
community so as to ensure that we are in a position to promulgate and express
our ideas and views effectively? If we are able to recall, even in respected
world institution such as the United Nations, we find that it is hard for a small
developing nation to make its presence felt. This is the real challenge confronting
us. From now on, we have to incorporate global competitiveness as the cornerstone
of our strategic policies.
Issues facing government and our policy makers are becoming
more complex and diverse. The efforts of our leaders alone are not enough.
Everybody has heavy responsibilities. Management gurus of course are delighted
to hear this, for they are the ones who propagate that "effective solutions to problems require many input." The
need for exertive teamwork and collective action are getting more relevant.
Everybody has to be in the forefront in order to avoid ourselves from being
overwhelmed by the tide of globalisation. The least we could do if we are
not in the forefront is to be aware, but most important of all, support the
strategic vision of our leaders. Either way, whether play a frontier role
or supportive roles there is increasing pressure for innovation and responsiveness
on our part. I am not implying that we should retreat or even depart from
our traditional values and norms. There is absolutely nothing wrong with
sticking to and maintaining our traditional societal values. After all these
had been one of the hallmarks of our society, the richness of it presented
in many forms. We just have to be fully aware of and responsive to modern
demands. This has been one of the traditional challenges of leadership, but
in the context of globalisation in order that it renders less danger and
instead present ample opportunities to developing countries like Malaysia,
our Hon. Prime Minister had outlined five strategic imperatives that must
guide us as follows:
- The first is the principle of rationality.
- The second is the principle of readiness.
- The third is the principle of presentation.
- The fourth is the principle of responsibility.
- The fifth is the principle of self-determination.
Beyond Mere Awareness
Our Hon. Prime Minister had outlined clearly above the five imperatives for
us
to pursue vigorously in order that we derive maximum benefits from globalisation.
If I'm not wrong in interpretation, what it boils down to in simple language
is a call cry directed at all Malaysians, necessary in order for us to be at
a competitive edge, to be ahead of other countries in grabbing opportunities
to be derived from globalisation. There are some useful and invaluable lessons
to be learnt from past events and bitter experiences that we have undergone in
managing our economy, like the financial crisis in 1997 - 1998.
In his book, A New Deal For Asia, our Hon. Prime Minister
reminded us that, "we cannot regain our faith in the future or return to the vision for a new millennium unless we discover how to defend ourselves against forces of sudden economic ambush." Drawing from past experiences and assessing the future, our strategy therefore should not limit itself to just shielding the country from repeat of such catastrophic events. To do so is a misplaced focus. We should go beyond looking for mild antidote to cure serious illness. What we should be aiming for and working relentlessly is to come up with the appropriate strategies, one that will capitulate us to the forefront in confronting global economic competition. In this context, I'm glad to note that our OPP3 not only recognizes but also comes up with concrete proposal to address this issue. Paragraph 1.52 of OPP3 recognizes the challenge as such "Competition at the global and regional level is expected to intensify following the implementation of the World Trade Organization (WTO) and the ASEAN Free Trade Area (AFTA) commitments as well as the intensification of bilateral initiatives. Rapid advancements in ICT will intensify competition. Malaysia will continue to participate actively in this multilateral arrangements and fulfil its commitments for market openings." Whilst paragraph 1.52 outlined the perceived challenge of globalisation, paragraph 1.53 is our calculated response i.e. "Domestic
industries will have to enhance their productivity, efficiency and innovative
capability to meet global competition. Policies relating to trade, industries
and technology will be streamlined so that domestic industries and enterprises
can respond more effectively by producing goods and services that can successfully
compete in the local and overseas market. FDI will be leveraged upon to improve
efficiency, enhance competitiveness and gain access to international markets.
To monitor and provide direction for increasing Malaysia's competitiveness,
a National Council on Competitiveness will be established."
It is undeniable that OPP3 is an excellent piece of document.
My salutation and appreciation is directed to all those dedicated officers
whom I presume comprised mostly of PTD officers who have been painstakingly
involved in the preparation of such magnificent document. The proposal to
set up the National Council on Competitiveness is a worthy move, though long
overdue. It is but another indication of how deeply commited our government
are to clearing the way for us to fully exploit our newfound source of wealth,
i.e. global economic opportunities. We have affirmed our commitment to free
trade by ratifying various international agreements that presumably encourage
free trade like WTO and AFTA. Implicitly we recognize that we have to compete
in the global market. However, in order to compete successfully, as I said
earlier, we have to come up with a strategy that will indisputably lead us
to a clear strategic direction, one that is able to guide us on to the right
track towards global economic competitiveness and prosperity. One thing is
for sure our planners and policy decision makers have to be fully aware of
is what David Yoffie (Prof. Of Int. Business Adm., Harvard University) and
Benjamin Gomes (Prof. at Harvard Business School) in their book, International
Trade And Competition; Cases And Notes In Strategy And Management describes
as "A favourable environment provided the basis for a nation's domestic
industry to succeed in the global marketplace."
continue on next issue
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