A High Income Society Needs A First Class Mentality

The Prime Minister's speech at the Invest Malaysia conference 09 needs to be read between the lines despite the welcome news that the 30% Bumiputra equity requirement will be lifted (except for newly listed companies who will need to offer half of the 25% public shareholding spread requirement).

Reading Najib’s concluding speech below, there is a trace of irony in his vision for a high income society...one foot in the new era and the other foot in the old era. It is as if he is saying, yes, we will liberalise under the new market-friendly economic model on the one hand but, still we need to take care of those left behind on the other.

A high income society must have a first class mentality and spirit of excellence, no hold bars competition and ensure that losers and cheaters pay the price of defeat. We must change from a Malaysia Boleh society to a Kiasu society like Spore. How else to compete with China, India and kiasuland? (My comments are in blue)

" In conclusion, if there was one message I wanted to leave with the investment community, it is that there should be no doubt that Malaysia welcomes foreign and local investors and participants. We can only achieve high income by creating more opportunities for growth rather than protecting our narrow turf. We can only achieve our social equity goals (the only effective way to having an equitable society is by providing incentives for people to work hard and learn from their failures) by expanding the pie (indeed, we know how much the pie has shrunk because of misuse of Malaysia's resources and taxpayers money).

A high income society must be socially inclusive. It must provide incentives for those who "have a lot" and YET (yes, we know this was coming) be fair to those who "have a little". It must lead to high returns for companies and entrepreneurs who invest, better and higher incomes for those that are employed and greater capability for those who require assistance (clutches again for the undeserving) to help themselves or to get help from government (in other words, money from taxpayers to be distributed without our consent to the undeserving).

Above all, a high income society must be one where every Malaysian feel they have a place and a promising future under the Malaysian sun (nice thing to say but how to make us feel comfortable under the sun when there is the scorching heat of race-based politics promoted by UMNO/BN?). It is toward this ultimate goal that I dedicate the energies and efforts of this Government. I hope as investors, you too will continue to play your part (we shall see how you perform first. At present, we are making lots of money investing in the more vibrant markets of China and SEA), and walk along with us in this great Malaysian journey."

A Strange Tale of Two Countries: Kiasuland & Bolehland

Let's go back to history when Singapore was kicked out of the federation of Malaysia in 1965.

One country which had no resources started thinking that the Kiasu spirit will strengthen the people's competitiveness. They then worked hard and turned a strategic weakness into a strength: thus the emergence of a developed kiasuland with the highest GDP per capita in Asia (US$35,445 versus Japan's US$34,678 and nearly five times larger than Malaysia's US$7,522 based on 2007 nominal GDP data).

The other country which had plenty of resources, timber, rubber, palm oil, petrol, gas, etc found that it could afford to be a bit complacent and lepak. Thus the bolehlah attitude pervaded the whole civil service and infected the corporate and personal culture of the people.

So when Tun Dr Mahathir made mocking remarks about Singapore Mentor Minister Lee Kuan Yew's visit to Malaysia, I think TDM should realise this twist of destiny:

The morale of these two countries is that bolehland will always be lagging behind kiasuland merely because of different attitudes of mind and spirit. Nothing to do with physical resources or whether water was transacted at 3 sen per 1,000 gallons (made under two agreements in the 1960s).

Change Will Come Soon To Malaysia, Mr Lee

While I agree with many of the injustices and inconveniences cited by ex-Malaysian George CN Lee, there are many equally if not more rational reasons for many Malaysians to stay.

Incidentally, George Lee made his decision to migrate two years ago and this means that he left before the political tsunami of 8th March 2008. This is a crucial factor because many things were getting from bad to worse before the General Elections and a peaceful protest from voters against the present government was achieved. It was a not just a slap in the face but a real warning to Barisan Nasional.

We need to think rationally and not react emotionally when faced with a corrupt and unjust political machinery. There is no need for panic or desperation.

Malaysians and ex-Malaysians who have strong intentions and good reasons to migrate from Malaysia to greener pastures are like the Hong Kongers who before the handover to China in 1997 thought the island will go down the drain of communist rule. Many migrated to Canada and other popular places.

I agree Malaysia is different from Hong Kong, we are already in a big mess economically and politically. Yet, those who say that the country won't improve for the next thousand years, let them put their money where their mouths are and sign a declaration they will not return for good when Malaysia makes major strides in democracy and living standards.

This is the problem with today's commentators and political analysts: they see the wonderful past of Msia in the 1960-1970s or the great life they enjoy overseas compared to Msia's present state. But they never have the courage, the persistence and the vision to see that change is coming fast in a short time.

Everything is moving fast in the 21st century and change that benefits all citizens is not a choice but a fact of life with the Internet, the political tsunami and winds blowing through Asia.

The same thing can be said about China today. I can foresee the day the communist government will fall and a vibrant democracy arise. Detractors may shout: "Not in a thousand years!" I say quietly to them, just watch and pray, change will come soon.