The New Rules
Prof. Dzulfkili Abdul Razak, the Vice Chancellor of Universiti Sains Malaysia, (which is undoubtedly, the top university for successful R&D commercialization) wrote an interesting article in the recent week's New Sunday Times.
The article was generally on the brain drain suffered by Malaysia (and some other developing countries) due to the active recruitment of our top brains, in the developed world.
For me, it was refreshing to see someone in Prof. Dzul's age group understanding the current phenomenon and the troubling consequences for Malaysia, if we are slow to react and adapt. Most times, our policymakers and Ministers act as if family roots and patriotism, are enough to retain our top talent in Malaysia.
The harsh reality is that it's NOT enough.
In one part, Prof. Dzul aptly wrote: "Once a person is made to realize his potential - which is what education is all about - the call is entirely his, in this borderless world".
These are the new harsh rules of globalization. Nowhere will the impact be felt more severely, than in the fight for global human capital. The best people that all countries have to offer. The fact is, the country that holds the best brains, shall rule the world.
And it makes economic sense, too. Whatever business that you're in, it only makes sense to have a presence in a larger market and sometimes, where the market is sophisticated enough to provide the volume of demand required. A small slice of a huge market is sometimes better, than a large slice of a small market. It holds better potential for growth, too.
And larger, more sophisticated markets have always attracted the best brains. The Americans, the Brits, the Australians, the Germans, the French and many other countries, have greatly benefited from human capital, which were nurtured by developing countries. These countries realize that economic leadership is far more important, than narrow national considerations on immigration.
And this is the stumbling block facing many developing countries, especially Malaysia.
Governed by an age-group and leaders that still fiercely protects and balances the narrow interests of local racial politics and vested interests, we're facing the new world with a mindset that is ill-equipped, to ensure the country's long-term economic survival.
What are the new rules, in relation to Malaysia?
First, being Malaysian cannot be about being Malay, Chinese and Indian, anymore. Immigration policies should be flexible enough to make Malaysians out of the top brains from other developing (or even developed) countries. We need to hijack the top talent from other countries, in the same way that other countries are doing it to us;
Secondly, adopt better quality of life measures. The top brains in the world need a country that is peaceful, where trade, innovation and competition are thriving, where corruption is low, where the core priority areas and market are relatively big and sophisticated.
A country where the press is (relatively) free and people are allowed to think, vocalize and act on issues. Where the appreciation of arts and culture are diverse and the press does not lobotomize its citizens everyday. Where human rights prevail and where people of international origins are treated with respect, not contempt, prejudice, fear or suspicion.
They are here to help enrich our country and to potentially, make it their home – that is the correct perspective;
Thirdly, to make politics less pervasive in Malaysia. Competition is the order of the day. Dismantle the corporate equity targets for the NEP – it’s meaningless in a globalized world – there’s nothing to carve between the races, if the cake keeps getting smaller, because we’re not competitive globally.
Allow economic “crutches” only for the poor and the helpless – get the middle-class (especially the Malays) to stand up on their own two feet. It’s about time the NEP measures are means-tested, to stop those who are not poor or helpless from robbing the more deserving recipients; and
Fourthly, the Malaysian of today must be REGIONAL Malaysian, at the very least, if not global in mindset. If he’s not aiming to capitalize on and penetrate the economic markets of others, he’s still got yesterday’s blinkers on. If he’s not aware of his Asian neighbours and is insular, he’s got blinkers on. We can’t teach the next generation to survive in tomorrow’s world, if we’ve got blinkers on.
There are things here, which we can do ourselves. There are things which only the Government and our leaders can do. And whether they do it within the next 5 years or so, will determine our long-term survival.
Because guess what? Our ASEAN neighbours understand this global game and they’re playing by the new rules. We better follow, if we don’t intend to be an African country, one day.
The article was generally on the brain drain suffered by Malaysia (and some other developing countries) due to the active recruitment of our top brains, in the developed world.
For me, it was refreshing to see someone in Prof. Dzul's age group understanding the current phenomenon and the troubling consequences for Malaysia, if we are slow to react and adapt. Most times, our policymakers and Ministers act as if family roots and patriotism, are enough to retain our top talent in Malaysia.
The harsh reality is that it's NOT enough.
In one part, Prof. Dzul aptly wrote: "Once a person is made to realize his potential - which is what education is all about - the call is entirely his, in this borderless world".
These are the new harsh rules of globalization. Nowhere will the impact be felt more severely, than in the fight for global human capital. The best people that all countries have to offer. The fact is, the country that holds the best brains, shall rule the world.
And it makes economic sense, too. Whatever business that you're in, it only makes sense to have a presence in a larger market and sometimes, where the market is sophisticated enough to provide the volume of demand required. A small slice of a huge market is sometimes better, than a large slice of a small market. It holds better potential for growth, too.
And larger, more sophisticated markets have always attracted the best brains. The Americans, the Brits, the Australians, the Germans, the French and many other countries, have greatly benefited from human capital, which were nurtured by developing countries. These countries realize that economic leadership is far more important, than narrow national considerations on immigration.
And this is the stumbling block facing many developing countries, especially Malaysia.
Governed by an age-group and leaders that still fiercely protects and balances the narrow interests of local racial politics and vested interests, we're facing the new world with a mindset that is ill-equipped, to ensure the country's long-term economic survival.
What are the new rules, in relation to Malaysia?
First, being Malaysian cannot be about being Malay, Chinese and Indian, anymore. Immigration policies should be flexible enough to make Malaysians out of the top brains from other developing (or even developed) countries. We need to hijack the top talent from other countries, in the same way that other countries are doing it to us;
Secondly, adopt better quality of life measures. The top brains in the world need a country that is peaceful, where trade, innovation and competition are thriving, where corruption is low, where the core priority areas and market are relatively big and sophisticated.
A country where the press is (relatively) free and people are allowed to think, vocalize and act on issues. Where the appreciation of arts and culture are diverse and the press does not lobotomize its citizens everyday. Where human rights prevail and where people of international origins are treated with respect, not contempt, prejudice, fear or suspicion.
They are here to help enrich our country and to potentially, make it their home – that is the correct perspective;
Thirdly, to make politics less pervasive in Malaysia. Competition is the order of the day. Dismantle the corporate equity targets for the NEP – it’s meaningless in a globalized world – there’s nothing to carve between the races, if the cake keeps getting smaller, because we’re not competitive globally.
Allow economic “crutches” only for the poor and the helpless – get the middle-class (especially the Malays) to stand up on their own two feet. It’s about time the NEP measures are means-tested, to stop those who are not poor or helpless from robbing the more deserving recipients; and
Fourthly, the Malaysian of today must be REGIONAL Malaysian, at the very least, if not global in mindset. If he’s not aiming to capitalize on and penetrate the economic markets of others, he’s still got yesterday’s blinkers on. If he’s not aware of his Asian neighbours and is insular, he’s got blinkers on. We can’t teach the next generation to survive in tomorrow’s world, if we’ve got blinkers on.
There are things here, which we can do ourselves. There are things which only the Government and our leaders can do. And whether they do it within the next 5 years or so, will determine our long-term survival.
Because guess what? Our ASEAN neighbours understand this global game and they’re playing by the new rules. We better follow, if we don’t intend to be an African country, one day.
posted by Stingrayz | 8:55 PM
11 Comments:
Reading the four ways to play by the new rules, I suppose the fourth one is what we ourselves can do. And what we can do is to give awareness to those around us, on the importance of being regional-minded.
The first three though, are what Government can do. My question to you is: do you think the current Government have what it takes to do it?
Voice:
Good question. My only answer to that is a qualified one - YES, if they have the courage.
And the window to fix all these is small - if it's not done within the next 5 years, we will be surpassed in many areas of competitiveness by some of our more dynamic neighbours like China, India, Thailand, Vietnam, Philippines, etc.
I'm giving the Abdullah administration 5 years, to get it right.
Constructive change takes time - but it has to start showing signs of moving, very soon.
The main determinant of success or failure, is political will and courage.
Are our leaders brave enough to save this country from going down the blinkered way?
Meanwhile, I'm doing my part on the regional things, be it on a personal, business or public capacity. (I'm building my capacity to migrate, if need be)
In 2010, we will know whether Malaysia will be the next Korea or the next Botswana.
My advice? Don't put all your eggs in Malaysia's basket.
For the sake of all our children, diversify your bets. It's a big world out there - and home can be any place which resonates with your values in life.
I'm not a huge fan of Lee Kuan Yew, but I like what he said in the Singapore documentary on Discovery last Sunday, while commenting on nation-building post-Independence. Something along the lines of Singaporeans realizing that Singapore was 'a home, and no longer a hotel, and having to struggle to make it work.
Is that where we went wrong, you think?
Some perspectives, if I may. A medium sized local company can never match salaries offered by MNCs. Such a company will, in the main, be wasting its time if it attempts to recruit, say, top Oxbridge/Ivy League types (no offence intended) who will have different expectations and aspirations. They will only consider working for such a company (for less money) if they are made the CEO/CFO/ED for the challenge of taking the company to greater heights.
If we take that medium sized company to be "Malaysia", what we really need is for top talent to actually run the country for better results. They have to be the PM, Finance Minister, etc., which means they have to go into politics to get the mandate from the "shareholders" of Malaysia to be "CEO". But the political arena does not always attract top talent.
The global rules may have changed, but have regional ones changed too? Eg are we prepared to "entertain" officials with "wine, women and song" (or worse) in order to win contracts? Will we do business in or with a repressive regime? Must "Regional Malaysian" adopt an inscrutable, values-neutral stand in conducting business?
It's a complex issue, and as you know, it's anything but a level playing field out there.
- Anon 2
Nads:
Not really.
I think the problem with Malaysia, is that we're strangers of different races, living under the same roof, with different behavioural traits and economic standing.
It's a very complex country to run. It's easier to run Finland, Korea or Japan, than us.
Not that some of the things that we've done (like the NEP) is bad. It held the country together.
In this country, we need the economic pie to keep expanding. If it starts to shrink, the racial politics will get ugly. That's a fact.
But the NEP could have been implemented better and the "gear-changing" to introduce more competitiveness should have happened earlier, in the Mahathir era.
There was a comfortable margin of time to change then (pre-1997), as the economy was doing well.
Now, we're racing under pressure. And there are no margins for mistake. It's either change or regress.
Pseudo:
No, I don't underestimate the impact of the employed Average Joe or the Consumer Spending Index.
(Though one wonders how consumer spending will increase if there are no new job opportunities created, with a bigger unemployment base, due to low-end jobs migrating to more competitive countries. How will you move up the value chain, without top brains?)
Yes, this country will continue running, even if the top 1% all leave our shores.
And even if we don't own anything in this country and is all bought out by foreigners, with hardly a corresponding penetration on our side into their markets.
It's not an issue of whether Malaysia will continue, as a country. It will.
It's an issue of whether it will continue to grow and thrive - or whether it will get poorer, causing a host of other problems to arise.
If other developed countries steal the top brains from us, then we have to steal the top brains from the poorer countries.
It doesn't matter who leaves and stays - what matters is that you have the best brains (even if it be foreign ones) to ensure that the top talent pool, is replenished.
But damn good thoughts from you on a Friday morning, bro'. :)
Thinktankgal:
Yeah. :) But "he" here applies to she, as well. It goes without saying in Malaysia - women make up almost two-thirds of our local graduates and half of our labour force.
Anon 2:
Interesting analogy. Good points.
I have no solutions to attracting top brains with integrity, into the local polital arena. It's a tall order.
Even if they go in with integrity, the system wil ensure that they get "tainted" sooner or later.
The UMNO/Barisan formula, changes far too gradually.
The contracts "food chain" extends too far down - people are in politics to "cari makan", nowadays - betraying their own electorate.
My thoughts is that we can only do things better in Malaysia, despite politics. And maybe for politicians to meddle less, in the business world.
I agree with you that it's not a level-playing field out there.
That's the point - we could do better in less developed (or sometimes, more developed) markets, where our abilities are more advanced and sophisticated, relatively speaking.
Exploit unto others, as others exploit unto you. But be more benevolent, than others who have exploited us.
Calling for a "Regional Malaysian" does not mean forsaking our values, via corruption.
It doesn't have to be a Government contract (these are fraught with wine, woman and song with corrupt bureaucrats, even locally) - you could be selling direct to the consumers in Indonesia or Thailand, say.
And "repressive regimes" is a matter of perspective and degree.
Just because you have an election, does not mean that you have a liberal democracy and an accountable Government.
Look at most ASEAN Governments (even ours - you can have an election, but they can never lose.
I'm a pragmatic value-neutral Mahathirist, when it comes to this. If you don't want to be judged, don't judge the values of other countries. It's bad for the economy, trade and business.
But through business ties between countries, oppressive regimes can be gradually "persuaded" to become more democratic.
Not engaging them, on principle, punishes their citizens even further.
They'll be oppressed AND POOR. What is the point of our principles, if they starve to death?
But penetrate other markets and sell to regional/global customers, we must. It's a survival imperative, for Malaysia to survive.
That's the new patriotism, I believe. Insularity, will kill you tomorrow.
I have THE solution for massive brain gain: $$$!!! I agree with your points about at attractive work and living environment but ultimately, it is the practicalities that rule. If I feel like I have gained substantive experience working internationally and have solid potential and results to back that up, then I should also get paid at least an approximate amount of what I was earning. The standard of living in Malaysia is not exactly cheap anymore (and bills need to get paid every month), so we cannot even use that excuse to justify dismal salaries anymore. I can afford more clothes on my pitiful salary here in the US than I can in KL earning the exact same amount in RM (ie. without currency conversion).
One of the reasons Singapore manages to attract top brains into its diplomatic and government service is because of its decent pay package. How can you attract the cream of the crop if entry-level PTD officers (many aspirants of which are worldly, highly-educated and intelligent) are paid less than RM1,500??
Elina:
Good to hear an opinion from a classic example of the "brain drain". ;)
Yes, you're right - it is the practicalities that rule.
Stronger purchasing power parity (PPP)in developed countries (like for instance, having access to cheaper homes, cars and food items) leads to a more affluent standard of living, for the middle-class, relatively speaking.
But practicalities work both ways.
Just as there are Malaysians that will find the USA or Australia a more attractive employment or entrepreneurial market - there will be people from less developed countries that will look at Malaysia, as the same sort of heaven.
And we have to capitalize on that.
I believe that in today's globalized environment, you can only keep the brains, that you can afford - whatever their original nationalities.
We will never be able to get top brains into our civil service, until the civil service can be "rightsized", restaffed and competitively remunerated.
Currently, the civil service is made of 980,000 people (for a population of 26 million) - at least 30 - 50% bigger than the range it should ideally be, for a country of our size.
(Singapore's civil service is only 60,000 people for a population of 4 million - that's why they can pay well!)
The Malaysian civil service is mono-racial, obese and sluggish - you can never raise pay substantially, in this sort of situation.
(Not to mention that you have too many Cabinet or ministerial posts - this is perhaps, to appease the Barisan political coalition, in the distribution of power)
Nor can you attract the best of the locals and restaff the civil service, with the right sort of people.
The "hidden cost" to the country of not having a stronger and more competent civil service, is immeasurable - be it either for business or public goods and services.
It will take doing what Maggie Thatcher did with the British civil service back in the 80's, to reform our system.
Thatcher sacked one-third of the civil service, allocated senior Government positions on a contractual basis and invited private sector people in, to fill up these posts.
Would Malaysia have the political will and courage to do the same?
Perhaps, but we will require another person with Mahathirist courage to do so.
(Bear in mind, that even Tun Mahathir did not implement such drastic reforms, when he was in power)
Otherwise, we stick to our chosen constraints and pray that Malaysia can run faster than others, with only one good leg - the private sector.
Sting:
Excellent points. I suppose the issue is that you know there's no margin for error and I know there's no margin for error but do the powers-that-be know that, and more importantly, are they prepared to do something about it? From my (perhaps naive and admittedly distant) vantage point, I feel as if 'political will and courage' are in short supply right now.
Also, interesting factoid about the size our civil service vs. Singapore's. I've always wondered why we couldn't adopt the Singaporean model. Then again, I should've known coming from a semi-government organisation where it's nigh on impossible to get fired.
One question though, re: engaging repressive regimes so that their people are not opressed and poor, as opposed to simply being oppressed- would that argument work in 'repressive regimes' where the economic pie is just not shared with the populace? I'm asking because Aung San Suu Kyi for instance, is against the lifting of economic sanctions against SLORC/Myanmar.
Nads:
The center of the universe in the Barisan Government coalition is UMNO.
Every other party is just tagging along for the ride - that's the reality of the situation.
But UMNO with 3.2 million members (that's 12% of our total population) is still very much a grassroots party.
Nothing in the party can be done or move without the support of the divisional leaders. Even the selection of party seniors.
Political will and courage here means (to me), the party President and Deputy President (who are the Prime Minister and Deputy PM, respectively) standing united and having the courage to do what's necessary, at the risk of losing the support of the Malays within the party.
Risking losing their jobs, in order to get things right for Malaysia. That is what is needed here. Nothing short of that.
Will they do it? It does not look likely, so far, but political changes cannot be measured in days. Give it 5 years and see.
On Myanmar, Aung San Suu Kyi intends to defeat the reigning military government and to install a democratically-elected one.
It's political strategy to break the inertia. That's why she's asking for economic sanctions to continue.
She feels that there will be no possibility of elected Goverment of Myanmar, if international trade between other countries and Myanmar is robust. It's an implied endorsement of the regime.
Plus, it's not necessarily true that the economic pie is not shared ith the people.
Even if all the business owners are from the military, at the end of the day, the international trade income does trickle down (though perhaps, not equitably)to the Myanmar people, via economic activity and exchange.
Economic sanctions don't really work, in unseating military Governments or those with non-democratic systems.
(They have no problems being insular and ruling oppressively - for a very long time)
But trade does - it modifies political behaviour, in the medium to long run. You can only change the Government, when the people want MORE - more money, more freedoms, etc.
Look at China - how capitalism has quietly eroded the brand of communism that they have - from the inside - due to great foresight of Deng Xiaoping and Zhu Rongji.
The clothes may look the same, but believe me, the man wearing them has changed - greatly.
China's political masters wanted China to be more than just a poor country - they want a large slice of the world economic pie.
It is that desire that will eventually lead to other reforms in the long run.
With growing affluence of its people in several regions and increased exposure to the world - maybe even democracy, in the next 30-50 years.
No repressive ideology can stand for long against an educated population, that wants more.
Ahhh...the borderless world. We would then have to reframe in our minds what it means to be Malaysian if today's Malaysians are replaced by brains of other nationalities.
Yes, Elina. Malaysia will evolve according to the human capital ingredients inside our "rojak".
But the main intent is to make the "rojak" mix more attractive and palatable to the rest of the world. So that more people will buy our rojak.
But managing diversity is nothing new to us. We're multi-racial, multi-cultural and multi-religious.
And mixed marriages are increasingly becoming the norm, too. You may be Chinese today but if you convert, at the very least, your children will be Malay, tomorrow.
I'll give you another example. 30 years ago, the concept of shared festivities or "Kongsi Raya" or "Deepa Raya" might have been frowned upon, by some of our elders.
It's religiously sensitive, as narrow as this perspective may seem to us, now.
Today, it's the norm and the celebration of shared festivities, brings Malaysians closer together. It's an accepted Malaysian practice.
(Even though one could argue that the substance of racial unity, should be much deeper than this by now).
The definition of being Malaysian can, has and will always evolve.
Malaysian "shared values" and what it means to be Malaysian will change too - but I guess the basic root remains the same - it's people who are willing to make Malaysia their home.
Although most of us keep the essential elements of what it means to be Malay, Chinese and Indian, Bumiputera, Mamak or whatever else we are.
(Some don't even keep the essential elements of identity - some Mamaks now claim they're Malay and are conspicuously silent, when the Indian Muslim community applied to the Government to be recognized as "Bumiputras" and not Indians)
The world has indeed become borderless.
Identities will become more flexible and multi-faceted in all countries, absorbing parts which are alien to their indigenous exclusive or shared culture.
(Especially in Malaysia, you can actually change your race, if you change your religion to Islam)
You may not be able to choose who your parents are, but one day, you will be able to change your citizenship, almost as fluidly as changing jobs to another country.
One day, we will all be international Bedouins.
Home by then, could mean 2 things: the home of our birth and/or family and the home we choose to live our lives in.
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