Tuesday, December 22, 2009
Arresting Malaysia’s relative decline Hock's Viewpoint - By Choong Khuat Hock (The Star, Monday 21 Dec 2009 in the Biz section)
It reads "THE book, The global financial crisis and the Malaysian economy, written by Datuk Dr Mahani Zainal Abidin, director-general of ISIS Malaysia, and Professor Dr Rajah Rasiah, dean of the Faculty of Economics and Administration at Universiti Malaya, in collaboration with UNDP and ISIS makes interesting reading.
In particular, it highlights the declining trend in manufacturing labour productivity in Malaysia due to lack of technological upgrading, making it difficult for our manufacturing sector to compete with those in South Korea, Taiwan, China and Singapore.
It further highlights it has been difficult for existing firms to shift towards higher value-added activities due to a lack of focus on research and development (R&D). Malaysia’s R&D is pitifully low against those in Japan, South Korea, Taiwan and Singapore (see table on R&D expenditure in GDP).
The authors suggest that a combination of factors may be to blame: a scarce supply of engineers and R&D scientists and technicians, the poor quality of those leaving universities in the country, low R&D investment, and the reluctance of most qualified Malaysians to return home from foreign countries.
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.....
The 1Malaysia is a refreshing breakthrough concept that aims to unite Malaysia and ensure that everyone has a place under the Malaysian sun. Only when there is a sense of belonging can we expect Malaysians to invest long term in R&D and make Malaysia the preferred venue for their business and family rather than joining the brain-drain bandwagon.".
Furthermore the US has given up negotiating with Malaysia on a Free trade Agreement as the Malaysian side would not budge on the open tender for government projects and the NEP.
I just pray whatever that Malaysia will be competitive and not fall behind our neighbors.
In particular, it highlights the declining trend in manufacturing labour productivity in Malaysia due to lack of technological upgrading, making it difficult for our manufacturing sector to compete with those in South Korea, Taiwan, China and Singapore.
It further highlights it has been difficult for existing firms to shift towards higher value-added activities due to a lack of focus on research and development (R&D). Malaysia’s R&D is pitifully low against those in Japan, South Korea, Taiwan and Singapore (see table on R&D expenditure in GDP).
The authors suggest that a combination of factors may be to blame: a scarce supply of engineers and R&D scientists and technicians, the poor quality of those leaving universities in the country, low R&D investment, and the reluctance of most qualified Malaysians to return home from foreign countries.
....
.....
The 1Malaysia is a refreshing breakthrough concept that aims to unite Malaysia and ensure that everyone has a place under the Malaysian sun. Only when there is a sense of belonging can we expect Malaysians to invest long term in R&D and make Malaysia the preferred venue for their business and family rather than joining the brain-drain bandwagon.".
Furthermore the US has given up negotiating with Malaysia on a Free trade Agreement as the Malaysian side would not budge on the open tender for government projects and the NEP.
I just pray whatever that Malaysia will be competitive and not fall behind our neighbors.
